Located in:
- Program-specific Requirements for Adult, Dislocated Worker, and Youth Activities under Title I-B
The Unified or Combined State Plan must include the following with respect to activities carried out under subtitle B—
a. 1. B. Describe the process used for designating local areas, including procedures for determining whether the local area met the criteria for “performed successfully” and “sustained fiscal integrity” in accordance with 106(b)(2) and (3) of WIOA. Describe the process used for identifying regions and planning regions under section 106(a) of WIOA. This must include a description of how the State consulted with the local boards and chief elected officials in identifying the regions
Current Narrative:
The term Performed Successfully – means that during the two program years prior to enactment of WIOA, the local area met or exceeded the common measures negotiated under WIA.
- The term met performance criteria means the local area attained at least 80 percent of the negotiated performance measure for each or any of the nine common measures categories under WIA
- The term exceeded performance criteria means the local area achieved more than 100 percent of the negotiated performance measure for each or any of the nine common measures categories under WIA.
- The term failed performance criteria means the local area did not achieve at least 80 percent of the negotiated performance measure for each or any of the nine common measures categories and continued to fail for each of the two years prior to enactment of WIOA.
The term Sustained Fiscal Integrity – means that during the two program years prior to enactment of WIOA, the local area administered WIA funds in a manner consistent with uniform administrative requirements as promulgated in rules of the Federal Office of Management and Budget and in accordance with criteria identified in the MDOL Financial Policy Manual. Sustained fiscal integrity is based on any of the following:
- Misexpenditure of funds due to willful disregard of the requirements of the provision involved; which may include expenditure of funds:
- For wage and salary costs of individuals whose salaries and fringe exceed the total compensation threshold identified in 2 CFR §170.330 Appendix-A paragraph e.5
- On any cost deemed unallowable per 2 CFR 200.420 thru 200.520
- In excess of allowable thresholds per WIA and/or State and/or Local Policy
- For costs identified as unallowed per 20 CFR 683.250 (proposed)
Willful disregard may also include Fraud, Nonfeasance, or Malfeasance. For an expanded definition of this component see page 57 of the MDOL Financial Policy Manual.
- Been deemed Grossly Negligent: Gross negligence or gross mismanagement pertains to actions or situations arising out of management ineptitude or oversight and leading to a major violation of policy, process, regulations or contract/grant provisions. Such actions have the potential to: severely hamper accomplishment of program goals, waste government resources, and jeopardize future support for a particular project, including but not limited to un-auditable records, unsupported costs, highly inaccurate fiscal reports or program reports, payroll discrepancies, payroll deductions not paid to the IRS, and lack of good internal control procedures, per the MDOL Financial Policy Manual.
- Complied with Accepted Standards of Administration: Accepted standards of administration pertain to local area adherence to standards of financial administration as identified throughout 2 CFR 200 and as identified in the MDOL Financial Policy Manual, which include:
- Financial Reporting: Accurate, current, and complete disclosure of the financial activities of each grant awarded must be made as required by the terms of the grant. All allowable costs must be traceable to the accounting records. See Section B of the MDOL financial manual for additional reporting requirements.
- Accounting Records: Records must be maintained that identify the source and expenditure of grant funds. The records must contain information pertaining to the award and authorization, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. The records must be maintained in accordance with Generally Accepted Accounting Principles.
- Internal Control: Effective controls and accountability must be maintained for cash, real and personal property, and other assets. All such assets must be adequately safeguarded and used solely for authorized purposes.
- Budget Control: To ensure that overspending does not occur, actual expenditures or outlays must be compared with budgeted amounts for each grant award. Financial information must be related to performance or productivity data, including the development of unit-cost information when specifically required in the grant.
- Allowable Costs: The subrecipient must determine what costs are allowable in accordance with OMB cost principles; grant regulations, and the terms of the grant award. In addition, no grant may pay more than its fair share of the costs (allocability). See Section E of the MDOL Financial Manual for further information on cost principles and Section F for further information on allowable costs.
- Source Documentation: Accounting records must be supported by source documentation such as cancelled checks, invoices, purchase orders, paid bills, payrolls, time and attendance records, and award documents. The source documentation must relate directly to the costs claimed on the drawdown requests and quarterly financial reports.
- Cash Management: Procedures for minimizing cash-on-hand must be established by each subrecipient. See Section D of the MDOL Financial Manual for cash management requirements.
- Adherence to Contract Requirements: Subrecipients must adhere to all requirements delineated in the contract/grant including Federal and State requirements as laid out in each Rider of the contract/grant.