 Workforce Development System
Technical Advisory |
|
| TO: | Chairpersons of Local Workforce Investment Boards Chief Elected Officials WIA Grant Recipients WIA Fiscal Agents WIA Local Area Contact Persons |
| Subject: | Policy on the Recapturing of Workforce Investment Area (WIA) funds from local areas which carryover more than thirty percent (30%) of their current year available formula funding into the subsequent program year. |
| Purpose: | To advise Local Workforce Investment Areas (LWIAs) of the State’s policy on the recapturing of WIA funds from those areas which do not achieve the required program expenditure rates and carryover more than thirty percent (30%) of their current year available formula funding to the subsequent program year. |
| Background: | New York State Department of Labor adheres to WIA Title 1B program formula guidelines to ensure that program expenditures are expended in appropriate manner. In consultation with the Governor and State Workforce Investment Board, the New York State Department of Labor (NYSDOL) is implementing a new policy effective July 1, 2007, for the recapture of formula funds unexpended in excess of thirty percent (30%) at the end of the first year of each program year and the reallocation of those recaptured funds to the areas that have met the minimum expenditure rate criteria. The seventy percent (70%) expenditure rate calculation is based on the LWIA’s total available WIA formula funding for the program year in accordance with a modified version of the fund utilization rate calculation currently being utilized by USDOL. This includes the LWIA’s local administration funds. All Statewide Activities funds and Rapid Response funds, made available to the LWIA at any point during that fiscal year, will not be included in the seventy percent (70%) calculation, since these funds will have a date-specific lapse date of generally 12 months from the date of issuance. Also, please be aware that any funds allocated to the LWIAs during that program year in the form of a supplemental Dislocated Worker distribution will not be included in the 70% calculation. |
| Action: | Local area expenditures should be monitored and reviewed during the program year to ascertain if program spending levels are appropriate and if the local area will achieve the seventy percent expenditure rate. For program carryover funds that exceed thirty percent, these funds must be returned to the New York State Department of Labor. |
| Attachment: | 70% Expenditure Rate Calculation Worksheet This worksheet should be used by the LWIAs, in conjunction with their fiscal staff, to calculate their position on meeting the 70% expenditure rate requirement. Questions concerning the worksheet may be directed to the LWIAs Financial Oversight and Technical Assistance Representative. |