[Federal Register Volume 61, Number 166 (Monday, August 26, 1996)]
[Notices]
[Pages 43782-43790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21632]
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DEPARTMENT OF LABOR
Job Training Partnership Act: Intertitle Transfers of Funds
AGENCY: Employment and Training Administration, Labor.
ACTION: Notice.
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SUMMARY: The Department of Labor is publishing for public information a
Training and Employment Guidance Letter on the subject of Job Training
Partnership Act (JTPA) Intertitle Transfers of Funds. The purpose of
this directive is to provide guidance on intertitle transfers and
respond to questions raised on intertitle fund transfer authority.
FOR FURTHER INFORMATION CONTACT: Mr. James Aaron, Director, Office of
Employment Training Programs, Employment and Training Administration,
U.S. Department of Labor, Room 4666, 200 Constitution Avenue NW,
Washington, DC 20210. Telephone: 202-219-5500 (this is not a toll-free
number).
SUPPLEMENTARY INFORMATION: Pursuant to the 1996 Omnibus Appropriations
Act, the Congress authorized the transfers of Program Year 1996 funds
between JTPA titles II-A and III for adults and between title II-B and
II-C for youth. In addition the current authorization in JTPA sections
206 and 266 for the transfer of funds between titles II-A and II-C is
unaffected. This local flexibility provided to service delivery areas
(SDAs) and substate areas (SSAs) in planning and fund transfer requires
the approval of the Governor prior to implementation.
A number of significant policy changes are contained in this
directive and the attached questions and answers. For ease of
reference, they are as follows: a. Notice of Obligations (question 5);
b. Reporting Instructions (question 19); c. Recapture/Reallotment
[[Page 43783]]
policies under title III (Question 14); d. National Reserve Account
application review (question 13); and e. Guidance on inclusions in
State transfer systems (question 4).
Signed at Washington, DC, this 31st day of July, 1996.
Timothy M. Barnicle,
Assistant Secretary of Labor.
U.S. Department of Labor, Employment and Training Administration,
Washington, D.C. 20210
Classification: JTPA.
Correspondence Symbol: TD
Date: July 31, 1996
Training and Employment Guidance Letter No. 7-95
TO: ALL STATE JTPA LIAISONS, ALL STATE WORKER ADJUSTMENT LIAISONS
FROM: Barbara Ann Farmer, Administrator for Regional Management
SUBJECT: Job Training Partnership Act (JTPA) Intertitle Transfers of
Funds
1. Purpose. To provide guidance on intertitle transfers and respond
to questions raised on intertitle fund transfer authority.
2. References.
a. Training and Employment Guidance Letter (TEGL) No. 6-95, JTPA
Titles II-A, II-C, and III Allotments; and Wagner-Peyser Final Planning
Estimates for Program Year (PY) 1996;
b. Emergency Supplemental and Rescission Act, 1995, Public Law 104-
19;
c. Omnibus Consolidated Rescissions and Appropriations Act of 1996,
Public Law 104-134;
d. Job Training Partnership Act, Public Law 97-300, as amended;
e. TEGL No. 5-95, Program Guidance and Allocations for the Calendar
Year 1996 Summer Youth Employment and Training Program;
f. TEGL No. 12-94 and Change 1, Changes in Restrictions on Program
Year 1995 Funds under Title III of the JTPA; and
g. TEIN No. 6-93 and Changes 1 and 2, Instructions for Title II,
JTPA Quarterly Financial Status Report.
3. Background. TEGL 6-95 provided to the States the Program Year
(PY) 1996 allotments for titles II-A, II-B, II-C and III, pursuant to
the Congressional appropriations to the Department. In that
communication, we indicated that guidance on intertitle transfers would
be forwarded separately. Policy concerning transfer rules and
procedures is contained in this TEGL. In addition, in order to be
responsive to the entire employment and training community, questions
were solicited through the Employment and Training Administration (ETA)
Regional offices. The answers to the questions received, including a
reference table summarizing potential transfers for all years, are
contained in an attachment to this TEGL.
In the 1996 Omnibus Appropriations Act, Congress authorized the
transfers of PY 1996 funds between JTPA titles II-A and III for adults
and between title II-B and II-C for youth. The current authorization in
JTPA sections 206, and 266 for the transfer of funds between titles II-
A and II-C is unaffected. This local flexibility provided to service
delivery areas (SDAs) and substate areas (SSAs) in planning and fund
transfer requires the approval of the Governor prior to implementation.
The goals and objectives of ETA, its partners and stakeholders will
remain unchanged as a result of the Congressional appropriations
action. We are committed to help:
a. Low income adults and youth get the skills and training they
need, and help them find first, new or better jobs; and
b. Laid off workers find new jobs that pay as close as possible to
what they used to earn.
4. Significant Changes. A number of significant policy changes are
contained in this TEGL and the attached questions and answers. For ease
of reference, they are as follows:
a. Notice of Obligations (Question 5)
b. Reporting Instructions (Question 19)
c. Recapture/reallotment policies under title III (Question 14);
d. NRA application review (Question 13); and
e. Guidance on inclusions in State transfer systems (Question 4)
5. Principles. As the questions being raised were considered, it
became apparent that a series of principles evolved which may be of
assistance in responding to further questions.
a. Keep it Simple. The Department has attempted to limit potential
problems by minimizing Federal reporting and record keeping
requirements by combining PY 1996, title II-A, II-C and III formula
funds into a single financial account on the upcoming Notice of
Obligation and the Health and Human Services financial payments
account. FY 1996 title II-B funds will remain under the PY 1995 grant
agreement and the previously assigned accounts. No prior notice will be
required when making transfers, but quarterly reporting must reflect
any changes made.
b. Identity of Funds. Once the funds are transferred, there is no
separate identification; they become part of the total funds available
in the receiving title/part. The transferred funds are subject to all
of the rules of the receiving title/part, including cost limitations,
and eligibility requirements. However for auditing purposes, records
must be maintained by title.
c. Funds Authorized for Transfer. Only funds allocated to SDAs/SSAs
are authorized for transfer between title II-A and title III, and among
titles II-A, II-B and II-C. Title III discretionary NRA and Governors'
reserve, as well as title II incentive funds are not authorized for
transfer. Only PY 1996 funds may be transferred between titles II-A and
III, e.g., no carryover PY 95 funds may be transferred.
d. Reporting. Expenditures associated with transferred funds are
not tracked or accounted for separately; they are reported as part of
total available funds in the receiving title/part.
e. Services to Participants. Commitments in State and local plans
that describe strategies and goals established prior to transfers must
be considered when addressing potential transfers. Modification
requirements will remain unchanged.
f. Program Performance Requirements. Performance standards apply to
titles and the funds expended under those titles.
The above principles are addressed more fully in the questions and
answers that are contained in the attachment.
6. Effective Date. Upon receipt.
7. Action Required. States are requested to:
a. Incorporate the guidance contained in this TEGL in their:
(1) Direction to private industry councils, chief elected
officials, title II administrative entities and title III substate
grantees; and
(2) Criteria, systems and procedures to permit SDAs and SSAs to
transfer funds; and
b. share the information contained in this directive with service
delivery areas and substate areas.
8. Inquiries. General questions or requests for technical
assistance should be directed to the appropriate Regional office.
Questions dealing with title III issues on recapture/reallotment and
NRA grants should be directed to Zen Choma (202) 219-5577 x127 and
Brian Deaton (202) 219-5336 x107 respectively.
9. Attachments.
a. Questions and Answers--JTPA Intertitle Fund Transfers (including
Sample Quarterly Financial Reports)
b. SDA/SSA Intertitle Transfers Authority Table
[[Page 43784]]
Attachment 1--Employment and Training Administration Questions and
Answers--JTPA Intertitle Fund Transfers
Question 1:
What is the exact language for the transfer of funds?
Answer:
The language is from four sources:
1. Job Training Partnership Act (JTPA),
2. FY 1995 Rescission Bill (Public Law 104-19),
3. FY 1996 appropriations bill (Public Law 104-134),
4. Appropriations Conference Report (Congressional Record, April
25, 1996, page H 3953).
1. JTPA
a. Section 206 (title II-A): ``A service delivery area may transfer
up to 10 percent of the amounts allocated to the service delivery area
under section 202(b) to the program under part C if such transfer is--
(1) described in the job training plan, and
(2) approved by the Governor.
Note: Underlining added for emphasis and to clarify that the 10%
applies only to the amount allocated to the SDA under the formula,
and does not apply to other funds that have been transferred into
the program from another program.
b. Section 256 (title II-B): ``A service delivery area may transfer
up to 20 percent of the funds provided under this part to the program
under part C if such transfer is approved by the governor.''
c. Section 266 (title II-C): ``A service delivery area may transfer
up to 10 percent of the amounts allocated to the service delivery area
under section 262(b) to the program under part A if such transfer is--
(1) Described in the job training plan, and
(2) Approved by the Governor.''
Note: Underlining added for emphasis and to clarify that the 10%
applies only to the amount allocated to the SDA under the formula,
and does not apply to other funds that have been transferred into
the program from another program.
2. FY 1995 Rescission Bill (PL 104-19): ``* * * Provided further,
That service delivery areas may transfer up to 50 percent of the
amounts allocated for program years 1994 and 1995 between the title II-
B and title II-C programs authorized by the Job Training Partnership
Act, if such transfers are approved by the Governor.'' This language
overrides the JTPA language regarding transfers for funds appropriated
in PY 1994 and PY 1995 for the II-B and II-C programs, i.e., the 50%
overrides the 20%, and authorizes for the first time transfers from II-
C to II-B.
Note: Underlining added for emphasis and to clarify that the 50%
applies only to the amount allocated to the SDA under the formula,
and does not apply to other funds that have been transferred into
the program from another program.
3. FY 1996 appropriations bill language (Pub. Law 104-134):
``Provided further, that service delivery areas may transfer funding
provided herein under authority of titles II-B and II-C of the Job
Training Partnership Act between the programs authorized by those
titles of that Act, if such transfer is approved by the Governor:
Provided further, that service delivery areas and substate areas may
transfer funding provided herein under authority of title II-A and
title III of the Job Training Partnership Act between the programs
authorized by those titles of the Act, if such transfer is approved by
the Governor: * * *''
The above language pertains to the funds appropriated under the FY
1996 bill: PY 1996 title II-A, title II-C and title III funds, and FY
1996 II-B funds.
4. Conference Report: ``The agreement includes language to permit
service delivery areas to transfer funds between titles II-B and II-C
of the Job Training Partnership Act, with the approval of the Governor
of the State. The House and Senate bills only permitted the transfer to
take place from title II-C to title II-B. In addition, the agreement
permits the transfer of funds between title II-A and title III of the
Act as proposed by the Senate, instead of permitting the transfer of
funds between all title II programs and title III as proposed by the
House.''
Note: Transfers were not permitted between titles III and II-C.
Attachment 2 shows the intertitle transfers that are authorized
among titles II-A, II-B, II-C, and between title II-A and title III.
Question 2:
How will this authority affect service delivery area (SDA)/substate
area (SSA) programs?
Answer:
The authorization is to provide States and local communities with
the flexibility to design programs and allocate resources to best serve
the employment and training needs of dislocated workers and
disadvantaged youth and adults. The intent is also to allow greater
flexibility as the system moves toward an integrated workforce
development approach to consolidate programs and give greater authority
to State and local decision makers.
States and SDAs are encouraged to use this new transfer authority
to assist them in their development of integrated workforce development
systems which incorporate One-Stop Career Centers, School-to-Work
systems, and integrated systems for serving disadvantaged and at-risk
youth. For further program guidance see TEGL No. 4-95, dated February
21, 1996.
Question 3
What are the beginning and ending dates for spending the funds, and
when can transfers be made?
Answer
The beginning and ending dates differ according to different
legislative provisions.
Section 161(b)(1) applies to funds appropriated on a program year
basis and states: ``Funds obligated for any program year may be
expended by each recipient during that program year and the two
succeeding program years * * *'' For clarification purposes the word
``obligated'' in the first line of section 161(b)(1) pertains to the
Federal obligation of funds (through a Notice of Obligation) and not to
the recipient's obligation of funds.
Thus, the above language applies to program year funds, but does
not apply to the FY 1996 II-B funds. (These FY title II-B funds are
available for up to five years for expenditure, but it is assumed that
they will be expended within the grant period). However, should FY 1996
II-B funds be transferred to the PY 1996 II-C program, those funds can
be expended during the life of the PY 1996 II-C funds (6/30/99). On the
other hand, should PY 1996 II-C funds be transferred to FY 1996 II-B,
the transferred funds retain their PY 1996 II-C life. Only PY 1996
funds may be transferred between title II-A and III; therefore, the
transfers could occur any time between July 1, 1996 and June 30, 1999
or until funds are expended, whichever occurs first.
The attached table summarizes the intertitle transfer rules for
each year of funds. The year of the funds determines the rule to be
followed in transferring the funds. For example, PY 1995 funds
available for expenditure in PY 1996 may be transferred based on PY
1995 allocation base and according to PY 1995 rules. (PY 1995 funds
expended in PY 1996 cannot be transferred by PY 1996 rules.) The
transfers can be made at any time during the life of the funds.
Question 4
What is the Governors' role in approving transfer requests?
[[Page 43785]]
Answer
The Governor is responsible for establishing procedures and
approval criteria for processing transfer requests, as well as
accounting and reporting procedures for tracking these funds. It is
expected that the Governor will establish policy on transfers. The
procedures should include the State Job Training Coordinating Council
pursuant to its advisory responsibilities to the Governor regarding
resource allocations. [Sec. 122(b)(2)] These procedures may also
include, at the Governor's discretion, modifications to SDA/SSA Job
Training Plans and procedures for the timing and frequency of
transfers. In considering transfer requests, the Governor should ensure
that procedures are in place that will address the employment and
training needs of eligible JTPA program participants within the SDAs/
SSAs and the State as a whole to assure the maintenance of adequate
funding levels.
Approval criteria established by the Governor should include, but
are not limited to, such factors as:
1. Policy established by Governors in the Governor's Coordination
and Special Services Plan (GCSSP), including the Governor's Statement
of Goals and Objectives. [Sec. 121]
2. Impact on GCSSP coordination responsibilities under Sec.
121(b)(1), 205, and 265.
3. Impact on jointly funded employment and training programs.
[121(c)(11)]
4. Impact on existing agreements for the delivery and/or
coordination of employment and training services.
5. Impact on current State, SDA or SSA employment and training
systems.
6. Changes in labor market conditions.
7. The extent to which the proposed transfer improves the delivery
of employment and training services.
8. Comments from stakeholders and the public regarding resource
utilization, e.g., transferring funds to and from disadvantaged and
dislocated workers and to/from youth programs and II-A programs.
9. Impact on the employment and training needs of eligible
participants in the SDA, SSA or State from which funds have been
transferred.
10. Consistency with local plans.
Question 5
What changes are planned for the 1996 Federal Notice of Obligation
and the authorizations maintained in HHS's Payment Management System?
Answer
With the increased latitude to transfer funds between titles and
our objective to minimize recordkeeping requirements, the PY 1996
titles II-A, II-C and III formula funds will be combined into one
financial key on both the Notice of Obligation (NOO) and in the HHS
Payment Management System (PMS). The backup to the NOO will provide the
specific amounts for each title.
Because the 1996 Appropriations bill identifies the title II-B
funds as FY 1996 funds (instead of PY funds) II-B funds will be
accounted for separately and will remain in the PY 1995 grant
agreement. These funds will be separately identified in the NOO and in
PMS.
Notes:
1. For accounting ease, a State may wish to assume that the
funds transferred into PY 1996 II-C from FY 1996 II-B and the funds
transferred into FY 1996 II-B from PY 1996 II-C are expended first
and corresponding cash is drawn down first. (The life of the
transferred funds, however, should be considered in making this
decision.)
2. The Administration has requested funding for the 1997 summer
program. These funds would be FY 1997 funds (not PY funds) and would
be added to the PY 1996 grant agreement and accounted for
separately, similarly to how the FY 1996 II-B funds are handled.)
Question 6
What is the identity of transferred funds?
Answer
Transferred funds always retain year of appropriation identity.
(For FY 1996 title II-B funds, see answer to Question 3.)
When funds are transferred to another title, they take on the
character of that title and are therefore subject to all of the rules
and regulations of the receiving title and Part. This includes cost
limitations, eligibility requirements and provision of services.
Question 7
How are cost limitations applied to transferred funds?
Answer
Funds are transferred in the total amount and do not take on cost
category identity until they are expended. Transferred funds are
subject to the rules and regulations of the receiving title/part. Funds
are not transferred by cost category. The remaining funds left in a
title continue to be expended under requirements of that title.
The FY 1996 Appropriations Bill provides for cost limitation
flexibility for PY 1996 title III formula funds. Similar flexibility
was provided for PY 1995 funds (see TEGL 12-94, dated May 31, 1995).
Question 8
When transferring funds from one title to another, will the
performance standards remain attached to the funds?
Answer
When funds are transferred from one title to another, the
performance standards that apply to the titles are not changed. For
example, when title III funds are transferred to title II-A, the
additional resources should result in an increase in II-A expenditures.
The enhanced program will be subject to the performance standards in
title II-A.
When individuals (not funds) transfer titles, the performance
standards of both titles apply. The program has a choice of either
enrolling the participant in both titles or terminating the person from
the original title and enrolling the individual in the receiving title.
In the latter case, the originating title may incur a negative
termination, particularly if the transfer is from II-A to III. When
programs choose to co-enroll the person in both titles, the person's
outcome is subject to standards in both titles.
Question 9
Should prior notice on transfers be provided to the Federal Grant
Officer? How will the Department learn of these transfers?
Answer
No prior notice is required to the Department relative to
transfers. However, DOL will require the reporting of transfers that
have been made. This will be shown on the quarterly reports submitted
to ETA (see Question 19.)
Question 10
What is the base for computing maximum allowable transfers?
Answer
The transfer of funds is limited to funds that have been allocated
to the SDAs by the State, i.e., the 77%/82% formula funds and the funds
allocated to SSAs by the Governor from the title III formula allotment.
The 23 percent in title II-A, 18 percent in title II-C and the formula
funds reserved by the Governor in title III are not available for
transfer.
Question 11
Can transferred funds be used at the State level to increase set-
aside funds (e.g., administration)?
Answer
No. The use of transferred funds is only at the SDA/Sub-State
levels, and
[[Page 43786]]
not at the State level. Thus, these funds cannot be used for State
level costs.
Question 12
Are title III Secretary's Discretionary Funds (National Reserve
Grants) available to transfer to title II-A?
Answer
No. Only formula funds allocated to the SSA by the Governor from
the State's title III formula allotment are available for transfer.
Question 13
What is the impact of the transfer of title III funds to title II-A
on the State's ability to request NRA funds?
Answer
NRA requests are always reviewed in terms of other resources
available and systems that can provide the necessary assistance without
additional funds. Generally, NRA funds will not be made available to
provide services that could have been provided with title III formula
funds allotted to a State (including funds that have been transferred
to II-A).
ETA will review and evaluate applications for NRA funds in the
following manner in SSAs where funds have been transferred from title
III to title II-A:
If not more than 20 percent of the applicable substate
formula allocation has been transferred, States may apply for NRA funds
without restriction.
If more than 20 percent of the applicable substate formula
allocation has been transferred to title II-A, the State and/or
substate area will be required to provide a financial match for any NRA
funds awarded. The required match will take into account the level and
rate of expenditure of title III funds available for the Program Year,
and the amount of title III funds transferred to title II-A at the time
an application for NRA funds is submitted.
Exceptions will be considered in certain circumstances such as
temporary job creation in response to natural disasters, assistance to
workers impacted by BRAC-related closures, mass layoffs and plant
closures without notice or in other situations as approved by the
Secretary.
If more than 50 percent of the applicable substate formula
allocation has been transferred to title II-A, the State and the
substate areas are certifying that there is not an expected need in
that substate area to provide assistance to a substantial number of
dislocated workers and will not qualify for NRA funds, exclusive of
natural disasters or BRAC-related closures, for the PY covered by the
formula allocation. Other NRA requests will be considered only when it
is demonstrated that the title III funding level for the substate area
is at least 50 percent of the initial formula allocation level, e.g.,
transferred funds may be returned to title III.
Notwithstanding these criteria, the Secretary retains the
discretion to obligate NRA funds in a manner that targets resources to
areas of most need and that promotes the effective use of funds for
eligible dislocated workers.
Question 14
How does this transfer authority affect the title III recapture/
reallotment policy (Sec. 303) and the title II-A recapture/reallotment
policies?
Answer
The answer to this question is dependent upon which title's funds
are involved.
The JTPA, section 303, requires the Secretary to recapture from
States unexpended Title III formula funds in excess of 20% of the
annual formula allotments to the States. For the purpose of including
the inter-title transfer authority, the net allotment for determining
funds subject to recapture will be used and calculated as follows:
* The initial title III allotment to the State at the beginning of
the program year;
* Plus or minus the increase or decrease in the allotment as a
result of recapture/reallotment activity; and
* Plus or minus the net increase or net decrease as a result of
inter-title transfers into or out of Title III.
Therefore, maximum amount of carryover from the year of allotment
to the next program year is the amount of the allotment, as adjusted
for reallotment and fund transfers, (i.e., net transfers from title II-
A to title III will increase the funds available and 20 percent of that
larger amount can be carried forward without recapture; net transfers
from title III to title II-A will decrease the funds available and 20
percent of that smaller amount can be carried forward without
recapture). It is expected that a consistent policy for determining
excess unexpended funds at the substate level will be followed by the
states when applying their own reallocation procedures.
The JTPA, section 109(b) requires the Secretary to reallot to
eligible States, Title II-A and II-C unobligated funds in excess of 15
percent of each State's allotment. However, since Title II reallotment
procedures apply only to unobligated funds and since transfers can only
occur at the substate level, there is no impact on Title II reallotment
procedures, i.e., funds at the SDA/SSA level have, by definition, been
obligated by the State. It is expected that Title II substate
reallocation procedures [Sec. 109 (a)] will be affected by the new
transfer authority. Therefore, a transfer of funds from title II-A to
title III would lower the base against which unobligated funds in
excess of 15 percent would be determined. A transfer of funds from
title III to title II-A would increase the base against which the
determination is made.
Question 15
Will the allocation formula be affected by transfers that have
taken place in a previous year?
Answer
No. The same formula will be used, regardless of any transfer
action in previous years.
Question 16
What State Level Plan Modifications are required for titles II and
III?
Answer
The requirements differ for the two titles.
GCSSP: Section 121(b)(7) of the Act provides that if major changes
occur in labor market conditions, funding, or other factors during the
two-year period covered by the plan, the State shall submit a
modification to the Secretary describing the changes. This is further
clarified in the GCSSP planning guidance which includes the OMB
approved format for modifications. Specifically, it states that if
major changes occur in labor market conditions, funding, or other
factors during the period covered by the plan, the State shall submit a
modification describing these changes. For the purposes of determining
if a modification is necessary, a major change is defined as cumulative
change of 20 percent of these factors in the plan.
Title III Biennial Plan: There is no requirement that title III
State plans be modified to show increases in allotments or available
funds to the States or to the Substates: therefore, no modifications
would be required by the Department for any transfers made into or out
of title III. That information can be collected from Quarterly
reporting discussed elsewhere.
Question 17
When SDAs request State approval to transfer title II funds, are
they required to submit modifications to their job training plans?
[[Page 43787]]
Answer
Yes, in accordance with instructions established by the State
(except in the case of the Single State SDA as noted below).
Section 104(c) of the Act provides that if changes in labor market
conditions, funding, or other factors require substantial deviation
from an approved job training plan, the private industry council and
the appropriate chief elected official or officials (as described in
section 103(c)) shall submit a modification of such plan (including
modification of the budget under subsection (b)(6)), which shall be
subject to review in accordance with section 105 of the Act.
Further, Section 628.420(e) of the JTPA regulations provides that
the (1) any major modification to the SDA job training plan shall be
jointly approved and jointly submitted by the PIC and the chief elected
official(s) of the SDA to the Governor for approval. (2) For the
purposes of this section; the circumstances which constitute a
``major'' modification shall be specified by the Governor.
In the case of Single State SDAs, Section 105(d) of the Act
provides that when the SDA is the State, the Governor shall submit the
job training plan and any modifications to the Secretary for approval.
The State SDA submission requirements are further clarified in Section
628.430 of the JTPA regulations. The Act and the regulations do not
make a distinction between major or minor modifications to a Single
State SDA's job training plan. This would indicate that all plan
modifications must be submitted to the Secretary. However, so as to be
consistent with the provisions which apply to major modifications to
the GCSSP, States will be required to submit modifications to the
Secretary for approval when there is a cumulative change of 20 percent
in labor market conditions, funding, or other factors during the period
of the plan.
Question 18
When SSAs request State approval to transfer funds, are they
required to submit modifications to their substate title III plans?
Answer
Yes. The governor will establish guidelines. However, under Section
313 of the Act, substate plans (or modifications thereto) must be
submitted to the Governor describing the manner in which activities
will be conducted within the SSA area with the funds obligated to the
area. ETA believes a transfer of funds from title III to serve
individuals who are not eligible for Title III would constitute how
title III funds will be utilized in that SSA. Public review provides
appropriate input into such a decision. It is expected that any
transfer decision would be based upon an analysis of the local labor
market and the needs/availability of individuals who are eligible to
receive services under the various titles.
Question 19
What are the rules for reporting transferred funds?
Answer
After funds are transferred, they are expended under the rules and
regulations governing the receiving title and/or part. Total available
funds are increased and expenditures associated with transferred funds
are, therefore, reported against available funds in the receiving title
and/or part. The transferred amount should be recorded on both the
sending and receiving reporting forms in the appropriate columns and
line items as described below and in the attached examples.
Note: The title II and title III financial reports are State
summary reports. Since the transfers are made at the SDA/SSA level,
the transferred amount shown on the State summary report is a net of
the SDA/SSA transfer actions. In addition, the report entries for
title II-A can reflect the net of transfers from both title III and
from title II-C; and, title II-C can reflect the net of transfers
from title II-A and from FY 96 II-B.
Sample quarterly financial reports are attached, showing offsetting
entries. Following is further clarification with regard to each of the
reporting forms.
1. Title II Job Training Partnership Act (JTPA) Quarterly Financial
Report--(JQSR)
a. Title II-A and II-C. Follow the reporting instructions issued in
TEIN No. 6-93, plus Changes 1 & 2, for reporting transfers within title
II. There is no change in the treatment of transfers between II-A and
II-C.
b. Title III. Transfers to or from title III should be identified
in the Remarks Box as a cumulative net amount to reflect a net plus or
minus dollar change to available II-A funds. The comment should also
identify both the sending PY and title/part and the receiving PY and
title/part. (See sample JQSR).
--In addition, the effect of the transfer should be reflected on Line 2
of Column (A).
--Line 18 of Column A must also equal Line 2 of Column A.
c. Title II-B. Transfers to or from FY 1996 title II-B should be
identified in the Remarks Box as a cumulative net amount to reflect a
net plus or minus dollar change to available II-C funds. The comment
should also identify both the sending PY/FY and title/part and the
receiving PY/FY and title/part. (See sample JQSR).
--In addition, the effect of the transfer should be reflected on Line 2
of Column (C).
--Line 18 of Column C must also equal Line 2 of Column C.
Note: A separate JQSR is required for reporting FY 1996 II-B
transfers. (See TEGL No. 5-95, dated April 12, 1996.) The II-B
Column of the PY 1996 JQSR should be left blank.
2. Title III Worker Adjustment Formula Financial Report--(WFFR)
a. Transfers to or from title III should be identified in the
Remarks Box as a cumulative net amount to reflect a net plus or minus
dollar change to available title III Substate funds. The comment should
also identify both the sending PY and title/part and the receiving PY
and title/part. (See sample WFFR).
b. The effect of the transfer should be reflected on Line 10 of the
PY 1996 Column.
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[FR Doc. 96-21632 Filed 8-23-96; 8:45 am]
BILLING CODE 4510-30-C
