Adult, Dislocated Worker, and Youth Activities

(5) Describe the state’s criteria regarding Local Area transfer of funds between the adult and dislocated worker programs.

On behalf of the Governor, MD Labor annually allocates funds for both the WIOA Title I Adult and Dislocated Worker programs. Allocations are made to Local Boards for Local Areas in consultation with the chief local elected officials. As explained in WIOA Section 133, when approved by MD Labor, a Local Board may transfer up to and including 100 percent of a PY and FY allocation for Adult employment and training activities, and up to and including 100 percent of a PY and FY allocation for Dislocated Worker employment and training activities between the two programs. Procedures for transfers are outlined in MD Labor’s PI 2016-01 Transfer Authority for WIOA Title I Adult & Dislocated Worker Funds. The Department will request technical assistance from USDOL related to the requirement of the Governor’s transfer approval in the coming fiscal year.  MD Labor will complete this update by December 31, 2020.

Transfers may only occur between Adult and Dislocated Worker funds within the same funding phase. For example, PY19 expenditures cannot be transferred to PY18 funding. Local Boards may not transfer funds to or from the Youth program. A Local Board may delegate its authority under WIOA Section 133 to the director of Local Area or other designated signatory of the Local Area. A delegation can only be accomplished through a resolution of the Local Board, or by a process that is identified in the area’s approved Local Plan.

When a Local Board elects to exercise its transfer authority, MD Labor will require that state policy guidance on requesting a transfer, approving a transfer, and reporting a transfer is adhered to. MD Labor has additionally established an appeal process for circumstances where a Local Board wishes to appeal a denial of its transfer request. When approved by OFA, a Local Board may transfer up to and including 100 percent of a PY and FY allocation for Adult employment and training activities, and up to and including 100 percent of a PY and FY allocation for Dislocated Worker employment and training activities between the two programs. A Local Board shall request a transfer by completing the Funding Transfer Request form that includes the following information:

• The number for the grant that expenditures would be transferred from;
• The number for the grant that expenditures would be transferred to;
• The amount of the transfer;
• A justification for the transfer;
• The requested effective date of the transfer;
• An assurance that there are sufficient funds in the budget for required activities for the remainder of the PY and FY; and
• The Catalog of federal Domestic Assistance (CFDA) number, which is assigned by the federal funding agency and is listed on the Notice of Obligation.

Transfer requests must be received at least 45 calendar days prior to the end of the grant. If a Local Board has an unforeseen circumstance that may require an exception, the Local Board must contact OFA immediately for further discussion and direction. If the transfer exceeds 50 percent, the Local Board must provide justification for the transfer and assurance that services will be provided to the targeted population of the transferred funding source, with details on what funding sources will be used. The effective date cannot be retroactive past the current reporting period. In other words, the transfer would not change/affect the financial reports previously submitted. Local Boards must submit completed request forms, signed by the Local Board Chair (or the Director of the Local Area or other designated signatory of the Local Area, designated by resolution or identified in the Local Plan, as set forth above), by email to the DWDAL. In the event that the request is made by the Local Area Director, the Local Board Chair must timely affirm that he or she has been apprised of the requested transfer. No request will be reviewed by OFA until written affirmation is received. Written affirmation should be sent via email to the DWDAL Fiscal Manager.

Approving a Transfer

When determining whether a transfer request is approved or denied, OFA must consult the DWDAL Director of the OWD and review the Local Area’s WIOA Adult and Dislocated Worker funding expenditures, obligations, and balances to ensure these are in support of the Local Board’s request. OFA should request additional information or clarification from the Local Board, as needed. As set forth in the state’s Policy on the authority to transfer between WIOA Title I funds, a Local Area must provide to DWDAL an assurance that there are sufficient funds in the budget for required activities for the remainder of the PY and FY. Also, should the transfer exceed 50 percent, the Local Area must provide justification for the transfer and assurance that services will be provided to the targeted population of the transferred funding source, with details on what funding sources will be used. After reviewing the request, OFA shall email an official determination to the Local Board Chair, the Local Area Director and the Local Area Fiscal Manager, signed by the DWDAL Assistant Secretary, with the determination to approve or deny within ten business days. OFA shall file documentation in the Local Area’s WIOA grant file and, when approved, the transfer amount shall be posted on the grant tracking worksheet/system. A Local Board may appeal a denial of its transfer request to the DWDAL Assistant Secretary within ten calendar days from the received date of the denial notice. The appeal must be in writing and state the grounds for the appeal.

Reporting a Transfer

Reporting a Transfer When approved, Local Areas shall report the transfer to OFA on the Adult and Dislocated Worker Quarterly Status Reports (QSRs). On the Adult QSR, Local Areas shall report the transfer as “the amount of Adult funds expended on the Dislocated Worker Program.” On the Dislocated Worker QSR, Local Areas shall report the transfer as “the amount of Dislocated Worker funds expended on the Adult Program. “In turn, OFA shall report the transfer to the USDOL on the Quarterly Financial Report for both “Local Adult” and “Local Dislocated Worker.”