Narrative: b. 5.

Criteria for Transfer of Funds:

The State has implemented policy PY15-04 Change 1 Transfer of Funds on transfer of funds between the Adult and Dislocated Worker programs, as follows:

WIOA final regulation 20 CFR 683.130 stipulates that the Governor must establish written policy that identifies criteria that will be used for approving a request to transfer adult or dislocated worker employment and training funds. Local areas must still meet the negotiated performance levels of the program from which the funds are being transferred. This policy-revision identifies the criteria that will be considered in approving a request for transfer of funds.

Funds transferred from one program to another adopt the eligibility requirements of the program into which they are placed; for example, DW funds transferred for use in the Adult program adhere to Adult priority of service and eligibility requirements.

The Bureau requires additional information regarding the amounts of funds being identified for transfer at the service provider level. To accommodate this, the Request for Transfer of Funds Form has been revised. Upon Governor approval, WIOA Section 133(b)(4) allows a Local Board to transfer up to 100 percent of the formula funds allocated to the local area for Adult program services and up to 100 percent of funds allocated to the local area for Dislocated Worker formula program services for a fiscal year, between:

1. Adult employment and training activities
2. Dislocated Worker employment and training activities

On behalf of the Governor, MDOL’s BES will review and approve requests from a Local Board seeking to transfer funds between the Adult and Dislocated Worker formula programs. Such requests will be reviewed upon receipt, and unless there are extenuating circumstances, notification of approval will be provided within ten business days or less. Local Areas may not transfer funds to or from the Youth formula program.

Criteria for approval of a local area transfer request:

In order to approve a request for fund transfer the local area must establish they have met one of the following criteria for making the transfer:

1. The local area has significant discretionary funding targeted to serve one population over the other; for example, ample Trade Act and Dislocated Worker Grant funds are available to serve DWs, but only formula funds are available to serve Adults.
2. The local area has fully expended funds in one program that still has unmet need yet has ample unobligated funds in the other program.
3. Other: The local board may explain the rationale for the transfer request, identify the situation necessitating the need, and articulate the benefits that will result from the transfer. Such rationale should be supported by the Local/Regional Plan and include assurance that the target group from which funds will be taken will not suffer negative consequences as a result.

Local Boards seeking to transfer funds must submit the request to the Bureau using the transfer request form and must attach minutes of the local board reflecting local board approval of the transfer request. The policy clarifies that a transfer of funds does not require a fiscal amendment to the contract and explains how transferred funds are to be reported on the quarterly fiscal report.