Narrative: b. 5.

The DWD has an established policy to address the transfer of funds between the Adult and Dislocated Worker programs. Effective July 1, 2015, the maximum amount of Adult program and Dislocated Worker program funds that can be transferred per annual allocation (includes both the Program Year (PY) and Fiscal Year (FY) allocations) is 100 percent. All transfer requests must be submitted through DWDs Financial Reporting System (FRS) and when the total exceeds 20 percent through the local plan modification process. Transfers from administrative funds to program funds within the same program’s funding stream (i.e., Adult FY administrative funds to Adult FY program funds) do not require a plan modification.

Before submitting a transfer request, the LWDB is required to analyze the changing economic conditions in their Local Workforce Development Area (LWDA) in order to identify the need for a transfer request. If there is a need to transfer more than the 20 percent of the original allocated or re-allotted formula allocation, the LWDB must submit a local plan. modification to DWD that includes the following information:

• The percent and dollar amount of the LWDA’s Adult or Dislocated Worker formula funds to be transferred; and

• The justification for the transfer must be explained in the request, described in the local plan modification, and must, at a minimum, include the following information:

1) General purpose or reason for the transfer between Adult and Dislocated Worker programs;

2) An explanation of the need for the transfer;

3) Information on how the transfer will affect the program from which the funds are being transferred; and

4) A Narrative explanation of how the transferred funds will be used.

LWDBs are still expected to continue operating Adult and Dislocated Worker programs, and are also expected to meet their agreed upon performance numbers, regardless of the funding transfer.

Transfer requests are reviewed by the DWD Program Managers overseeing the Adult and Dislocated Worker programs. Requests are approved if all the above criteria is met.