WIOA Titles I-A and I-B Policy & Procedure Manual

1.1.1 Overview

Effective date: October 20, 2022

The Governor's Council on Workforce Investment (CWI) is the federally mandated state entity under WIOA¹ that assists the Governor in developing innovative and dynamic approaches to further develop Wisconsin's workforce. The CWI, also referred to as the Council, is tasked with aligning Wisconsin's workforce and talent development initiatives and investment with its economic development strategies. In assisting the Governor and Legislature in carrying out their federally mandated responsibilities, the Council aids Wisconsin employers in finding the workers they need and provides resources to enable workers to access training for in-demand careers with the goal of moving Wisconsin's economy forward. Due to administrative change, the CWI was reconstituted in January 2019 under Executive Order #6.

• ¹ WIOA sec. 101; 20 CFR Part 679

1.1.2 Council, Committee Structure, and Responsibilities

Effective date: October 20, 2022

The Governor appoints members of the Council in accordance with the requirements enumerated in 20 CFR 679.110(b)(3) of WIOA, which includes representatives of business, local and state government, education, labor, and community-based organizations across the state. Members serve at the pleasure of the Governor and assist Wisconsin's Department of Workforce Development (DWD) in crafting a comprehensive workforce development strategy that:

• Anticipates employer labor needs while building and strengthening Wisconsin's workforce;
• Supports the development of a highly skilled labor forced; and
• Empowers individuals of all backgrounds to pursue and retain good paying careers.

The Council is currently comprised of an Executive Committee and three standing committees which provide a formalized structure for workforce members and stakeholders to actively participate in the maintenance, support, and refinement of the system's activities.

More information about the Council and its activities can be found at http://www.wi-cwi.org/default.htm.

1.2.1 Overview

Effective date: July 1, 2018

The State is the pass-through entity of funds awarded for WIOA Title I Adult, Dislocated Worker, and Youth programs. It is responsible for oversight of the operations of the WIOA activities. DWD-DET will monitor its activities under the Federal awards to assure compliance with applicable WIOA requirements and that performance expectations are being achieved. Monitoring by DWD-DET must cover each program, function, or activity.¹

DWD-DET monitors for compliance in the areas of equal opportunity and civil rights, program delivery, and fiscal, as well as performance of local areas to ensure proper systems are not only in place, but that they are being followed and meet the requirements of the law on a yearly basis.

• ¹2 CFR 200.328

1.2.2 Types of Recipients and Oversight Responsibilities

Effective date: July 1, 2018

Non-Federal Entity

The Non-Federal Entity means a State, local government, Indian Tribe, institution of higher education, or non-profit organization that carries out a Federal award as a recipient or subrecipient.¹ State of Wisconsin, County of Racine, and Northwest Concentrated Employment Program (CEP), are examples of Non-Federal Entities.

The Non-Federal Entity is responsible for oversight and operations of the Federal award supported activities. The Non-Federal Entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Monitoring by the Non-Federal Entity must cover each program, function, or activity.²

The Non-Federal Entity must submit performance reports as required by the federal awarding agency or pass through entity to best inform improvements in program outcomes and productivity. These reports will include:

1. A comparison of actual accomplishments to the objectives of the Federal award established for the period,
2. The reason(s) why established goals were not met, if appropriate; and
3. Additional Pertinent information including, when appropriate, analysis of cost overruns or high unit costs.³

Events may occur between the scheduled performance reporting dates that have significant impact upon the supported activity. In such cases, the Non-Federal Entity must inform the Federal awarding agency or pass-through entity as soon as the following types of conditions become known:

1. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the Federal award. This disclosure must include a statement of the action taken or contemplated, and any assistance needed to resolve the situation, and
2. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipate or producing more or different beneficial results than originally planned.⁴

Pass-Through Entity

A pass-through entity is a non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal program.⁵ The State of Wisconsin and the Southeast Wisconsin Workforce Development Board are examples of pass-through entities.

Among its responsibilities regarding sub-recipients, a pass through entity must:

1. Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring.
2. Monitor the activities, as necessary, to ensure that the subaward is used for authorized purposes in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved.
3. Verify that each subrecipient is audited as required by 2 CFR 200 Subpart F ̶ Audit Requirements when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded $750,000.
4. Consider whether the results of the subrecipient's audits, on-site reviews, or other monitoring indicated conditions that necessitate adjustments to the pass-through's own records.
5. Consider taking enforcement action against noncompliant subrecipients as described in 2 CFR §200.338 - Remedies for noncompliance of this part and in program regulations.⁶

Subrecipient

A subrecipient is a non-Federal entity that receives a subaward from a pass-through entity to carry out part of a federal program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency.⁷ Workforce Resource, Inc. and ADVOCAP are examples of subrecipients, as examples of non-Federal entities that receive subawards from their local Workforce Boards.

Subrecipient oversight and monitoring requirements for the Title 1 WIOA received include:

1. Determine that expenditures have been made against the proper cost categories and within the cost limitations specified in the Act and the higher-level regulations and policy.
2. Determine whether there is compliance with other provisions of the Act and the WIOA regulations, to include applicable laws, regulations and policies.
3. Assure compliance with 2 CFR part 200; and
4. Determine compliance with the non-discrimination, disability, and equal opportunity requirements of WIOA Section 188.⁸

Subaward

A subaward is an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.⁹

Contractor

A contractor is an entity that receives a legal instrument (i.e., contract) by which a non-Federal entity purchases property or services needed to carry out the project or program under a Federal award. The term as used in this part does not include a legal instrument, even if the non-Federal entity considers it a contract, when the substance of the transaction meets the definition of a Federal award or subaward.¹⁰ Wisconsin Indianhead Technical College and local Community Based Organizations are examples of Contractors.

Subrecipient / Contractor Determination

The non-Federal entity may concurrently receive Federal awards as a recipient, a subrecipient, and a contractor, depending on the substance of its agreements with Federal awarding agencies and pass-through entities. Payments received for goods or services provided as a contractor are not federal awards,¹¹ therefore, a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor. The Federal awarding agency may supply and require recipients to comply with additional guidance to support these determinations provided such guidance does not conflict with this section. ¹²

Characteristics which support the classification of the non-Federal entity as a subrecipient include when the non-Federal entity:

• Determines who is eligible to receive what Federal assistance.
• Has its performance measured in relation to whether objectives of a Federal program were met.
• Has responsibility for programmatic decision making.
• Is responsible for adherence to Federal program requirements specified in the Federal award.
• In accordance with its agreement, uses Federal funds to carry out a program for public purpose specified in authorizing statute, as opposed to providing goods or services for the benefit of the pass-through entity.¹³

Characteristics indicative of a procurement relationship between the non-Federal entity and a contractor are when the non-Federal entity receiving the Federal funds:

• Provides the goods and services within normal business operations.
• Provides similar goods or services to many different purchasers.
• Normally operates in a competitive environment.
• Provides goods or services that are ancillary to the operation of the Federal program.
• Is not subject to compliance requirements of the Federal program as a result of the agreement, though similar requirements may apply for other reasons.¹⁴

In determining whether an agreement between a pass-through entity and another non-Federal entity casts the latter as a subrecipient or a contractor, the substance of the relationship is more important that the form of the agreement. All the characteristics listed above may not be present in all cases, and the pass-through entity must use judgment in classifying each agreement as a subaward or a procurement contract.¹⁵

• ¹2 CFR §200.69
• ²2 CFR §200.328(a)
• ³2 CFR §200.328(b)(2)
• ⁴2 CFR §200.328
• ⁵2 CFR §200.74
• ⁶2 CFR §200.331
• ⁷2 CFR §200.93
• ⁸20 CFR §683.410(a)
• ⁹2 CFR §200.92
• ¹⁰2 CFR §200.22 & 200.23
• ¹¹2 CFR § 200.501(f)
• ¹²2 CFR §200.330
• ¹³2 CFR §200.330(a)
• ¹⁴2 CFR §200.330(b)
• ¹⁵2 CFR §200.330(c)

1.2.3 DWD-DET Coordinated Monitoring

Effective date: July 1, 2022

The DWD-DET monitoring system must:

1. Provide for annual on-site monitoring reviews of each local area to ensure compliance with 2 CFR part 200, as required by WIOA section 184(a)(3), and 20 CFR § 683.410.
2. Ensure that established policies to achieve program quality and outcomes meet the objective of the Act and WIOA regulations.
3. Enable the Governor to determine if subrecipients and contractors have demonstrated substantial compliance with WIOA.
4. Enable the Governor to determine whether a local plan will be disapproved for failure to make acceptable progress in addressing deficiencies as required in WIOA section 108(e)(1); and
5. Enable the Governor to ensure compliance with the non-discrimination, disability and equal opportunity requirements of WIOA section 188, including the Assistive Technology Act of 1998 (29 U.S.C. 3003).¹
6. Require that prompt corrective action be taken if any substantial violation of standards is found.
7. Impose the sanctions provided in WIOA Secs. 184(b)-(c) of WIOA in the event of a subrecipients failure to take required corrective action.

The purpose of on-site monitoring is to:

1. Ensure the programs comply with appropriate policies and procedures, and operate within the parameters established by law, regulations, the State WIOA Plan, the Local WIOA Plan, Equal Opportunity and Nondiscrimination policies, and program guidelines, including overall compliance with:
   • Workforce Innovation and Opportunity Act of 2014;
   • Department of Labor Employment and Training Administration Advisories;
   • DWD Policy Updates and Administrative Memos;
   • DWD's WIOA Policy Guidance;
   • Uniform Guidance 2 CFR Part 200 and 2 CFR Part 2900; and
   • Nondiscrimination and Equal Opportunity provisions contained in Section 188 of WIOA and regulations 29 CFR § 38 applicable to employment and service delivery.
2. Assess the quality of services provided to program participants and employers, and where appropriate, make recommendations for improvement.
3. Evaluate the management and administration of WIOA-funded grants with the Department to determine if program operations are compliant and whether the WDB is on track to achieve grant goals and outcomes.
4. Identify technical assistance needs.
5. Identify system-wide issues requiring policy or program review and resolution.
6. Identify positive practices and share with others in the workforce development system.
7. Assess impacts of workforce programs for customers within the workforce development area.

Scope of Review

Several key items will be reviewed and considered. Items may include, but are not limited to, the following:

1. Governance:

   • Interview with the Executive Director and Board Members.
   • Review of Board Membership List and Conflict of Interest Forms.
   • Review of Board Committee structure.
   • Review of Board governance documents (i.e., By-Laws, Chief Elected Official Agreements, Memorandums of Understanding, etc.)

2. Program:

   • Interview with Board Staff.
   • Interview with the Service Provider Staff.
   • Review of Board policies relating to program operations.
   • Review of Board and Service Provider program monitoring plans, activities and documentation.
   • Review of selected files including: Adult Program, Dislocated Worker Program, and Youth Program participant files.
   • Review of participant files for compliance with Selective Service registration requirements.
   • Review of Job Center Certification requirements.

3. Fiscal:

   • Review of procurement standards to ensure compliance with Uniform Guidance and WIOA.
   • Review of internal controls, written policy and procedures, independent audit, and monitoring of sub-recipients.
   • Review of budget controls and fiscal reporting.
   • Review of cash management and personnel records.
   • Review of the indirect cost rate and/or cost allocation plan.
   • Review of vouchers to ensure costs are allowable and are being allocated properly.
   • Review of credit card statements.

4. Civil Rights Compliance & Equal Opportunity (CRC/EO):

   • Review the local EO Officer's duties and responsibilities for ensuring EO compliance of the Workforce Development Board (WDB) and their subcontractors.
   • Assess the extent to which the WDB and their subcontractors comply with EO notices and communications requirements.
   • Review WDBs subcontracts (includes Work Experience and/or OJT agreements) to determine if they contain the proper assurance language compliant with statutory requirements.
   • Assess the extent the WDB is providing universal access to individuals with limited English proficiency (LEP) and persons with disabilities. This includes demographic analysis, language assistance, and provision of auxiliary aides and services. This includes outreach to groups protected by civil rights statutes.
   • Review compliance with Section 504 and ADA.
   • Assess how the WDB data and information is collected, maintain, and safeguarded.
   • Review subcontractors EO on-site monitoring reports completed by the local EO Officer.
   • Review discrimination and other grievance/complaint policies, procedures, and complaint logs.
   • Review the WDB for voluntary compliance from subcontractors when violations of EO requirements are identified during monitoring reviews.
   • Site visits to review physical accessibility requirements and required information postings. Site visits may be conducted prior to the onsite monitoring, or during the onsite visit.

Schedule

The schedule of annual on-site monitoring and the monitoring guides that DWD-DET will use are available in the Resources box on this page.

Steps in the monitoring process

1. Notification: With the exception of unscheduled reviews, notification of pending reviews will be given at least ten (10) days before each review. DWD-DET is authorized to monitor any entity receiving WIOA funds, and these reviews may include entering sites or premises to examine program and fiscal records, question employees, and interview participants. It reserves the option to conduct unannounced or unscheduled reviews as appropriate.
2. Sampling: Random-sampling and data validation techniques will be used to draw the samples that will be used to review records. The review may include all (100%) of the record universe if the universe is small or problems are identified during the review. Requested records are not to be modified between the time of the records request and the arrival of the onsite monitoring team.
3. Interviews: DWD-DET on-site monitoring will include interviews which may include board members, board staff, service provider staff, and participants.
4. Desk Reviews: DWD-DET will review working papers and documents which will be retained at DWD after review.
5. Report: A report will be issued within 45 business days of the completion of the review. Copies of the report will be dispensed to the following: CEO/Director of the local Workforce Development Board; Workforce Development Board Chair; Local Chief Elected Official; and Coordinated Monitoring Team.
6. Corrective Action: The WDB shall provide a response to the monitoring report within 45 business days that addresses each finding and area of concern identified, and when required by the report, includes a corrective action plan. The corrective action plan, when required, shall include the action(s) the local WDB will take to correct the problem, the estimated date the problem will be resolved, and how the local WDB will be involved in addressing this issue. In the event it is not possible to resolve findings identified during monitoring, a request may be made to DWD-DET for Technical Assistance or referred to the DWD Secretary for alternate resolution.
7. Resolution or Completion: The review is completed or closed if corrective action is not required, or the corrective action plan has been accepted, or there are no further requirements.

Repeat items identified on the monitoring report

DWD-DET will identify Areas of Concern and Findings that appear in two or more consecutive monitoring reports for the WDA. These issues may result in one or more of the following:

• Areas of Concern escalated to Findings.
• Requirement of additional corrective actions.
• Direct notification of specific issues provided to the Chief Elected Official for the WDA.
• Implementation of more frequent monitoring of WDA activities by DWD-DET.
• On-site training of local board staff and/or service provider staff.
• Mandatory DWD-DET provided technical assistance.

In addition to the above, if the local area monitoring report includes findings that appear in three or more consecutive years for the same item, DWD-DET may enforce additional corrective measures, to include any or all of the following:

• Development of a performance improvement plan.
• Development of a modified local plan.
• Requirement for the appointment and certification of a new local WDB.
• Prohibiting the use of eligible providers and one-stop partners that have failed to take appropriate corrective actions.

Report Terminology

Terms utilized will be those identified in the United States Department of Labor's (USDOL) "Ten Steps to Developing an Effective State Monitoring System," and are defined below:

Promising Practice

Used to highlight positive aspects of programs that may be shared with other WDBs to help improve their programs.

Area of Concern

Administrative, management, or programmatic practices that are not specific compliance violations but may have negatively impacted the program and/or could lead to a finding in the future. Area of Concerns may result in either required or recommended actions.

Finding

A violation (condition) of a specific compliance requirement contained in law, regulations, national policies, Funding Opportunity Announcements (FOAs), Uniform Guidance or OMB Circulars, the grant terms and condition, ETA policy guidance, including Training and Employment Guidance Letters (TEGLs), and/or the grant agreement that requires specific corrective (required and /or recommended) action. Findings may result in questioned cost and/or disallowed costs.

Additionally, the following terms utilized in this report are defined by DWD-DET as follows:

Areas of Strength

An aspect of local area activities that is not necessarily innovative, but indicative of high quality WIOA execution, operationalization, and/or management.

Transitional Guidance

During the review, a condition was observed that was

• compliant under law, policy, or guidance in existence at the time. However, based upon new/updated law, policy, or guidance it could be non-compliant; or,
• not compliant under an existing law, policy, or guidance in existence at that time. However, DWD-DET received clarification or was made aware of that law, policy, or guidance after the commencement of program year monitoring.

• ¹20 CFR § 683.410

1.3.1 Background and Purpose

Effective date: July 1, 2020

The local workforce development area (WDA) serves as the jurisdiction for the administration of workforce development activities, and the execution of Adult, Dislocated Worker, and Youth funds allocated by DWD-DET.

They are the areas within which local Workforce Development Boards (WDBs) oversee the functions described in Policy 1.4.3.¹

Such areas may be considered a region unto themselves, or may be components of a planning region, each with its own Local Workforce Development Board (WDB).

The Governor must designate local areas in order for the state to receive Adult, Dislocated Worker, and Youth funding under Title I, subtitle B of WIOA.²

• ¹ 20 CFR § 679.220(a)
• ² 20 CFR § 679.220(b)

1.3.2 Initial WDA Designations

Effective date: July 1, 2020

WIOA required that within the first two years of enactment, DWD-DET, in consultation with the Governor's Council on Workforce Investment (CWI), chief elected officials (CEOs), and local WDBs, and after a public comment period, establish local workforce development areas (WDAs) within the state.¹

In the state of Wisconsin, all local WDAs previously established under the Workforce Investment Act of 1998 were re-designated under WIOA on May 16, 2016 per the process outlined in Administrator's Memo 15-04.²

Initial Designation Timeline

Wisconsin's Local Workforce Development Areas

Wisconsin has identified eleven (11) local WDAs encompassing its 72 counties:

• WDA 1 – Southeastern Wisconsin: Kenosha, Racine, and Walworth counties
• WDA 2 – Milwaukee: Milwaukee County
• WDA 3 – Waukesha-Ozaukee-Washington: Waukesha, Ozaukee, and Washington counties
• WDA 4 – Fox Valley: Calumet, Fond du Lac, Green Lake, Waupaca, Waushara,and Winnebago counties
• WDA 5 – Bay Area: Brown, Door, Florence, Kewaunee, Manitowoc, Marinette, Menominee, Oconto, Outagamie, Shawano, and Sheboygan counties
• WDA 6 – North Central: Adams, Forest, Langlade, Lincoln, Marathon, Oneida, Portage, Wood, and Vilas counties
• WDA 7 – Northwest: Ashland, Bayfield, Burnett, Douglas, Iron, Price, Rusk, Sawyer, Taylor, and Washburn counties
• WDA 8 – West Central: Barron, Chippewa, Clark, Dunn, Eau Claire, Pepin, Pierce, Polk, and St. Croix counties
• WDA 9 – Western: Buffalo, Crawford, Jackson, Juneau, La Crosse, Monroe, Trempealeau, and Vernon counties
• WDA 10 – South Central: Columbia, Dane, Dodge, Jefferson, Marquette, and Sauk counties
• WDA 11 – Southwest: Grant, Green, Iowa, Lafayette, Richland, and Rock counties

• ¹ WIOA Sec. 106(b)
• ² Allowed by WIOA Sec. 106(b)(2)

1.3.3 Subsequent Designations

Effective date: July 1, 2020

At any time, the CEO and local WDB from any unit of local government, including local government consortia, may request to be designated as a local WDA. Requests will be reviewed by the CWI, which will make recommendations to the Governor, who will approve or deny the request in accordance with established policy.¹

Designations of local WDAs will be ongoing² as long as those areas:

1. Perform successfully;³
2. Sustain fiscal integrity;
3. and
4. Meet the requirements of WIOA Section 106(c)(1) when involved in a planning region.

Local areas that are able to demonstrate successful performance and fiscal integrity must be permitted to continue to operate and may not be re-designated without the consent of the local WDB and CEO in the local area.⁴

Regular Review of Designations

The Governor may review a local area at any time to evaluate whether that area continues to meet the requirements for subsequent designation.⁵

The Governor must review local area designations at least once every four years, to coincide with the four-year state planning cycle.⁶

The local area and CEO must be considered to have requested continued designation unless the local area and CEO notify the Governor that they no longer seek designation.⁷

• ¹ TEGL 27-14, Change 1
• ² 20 CFR § 679.250(b)(1)-(3)
• ³ As defined in WIOA Sec. 106(e)(1), in order to have performed successfully, a local WDA must have met or exceeded the adjusted levels of performance for primary indicators of performance for each of the last two consecutive years for which data are available. See WIOA Policy Manual section 11.10 for more information.
• ⁴ 20 CFR 679.250(b)(1)-(3)
• ⁵ 20 CFR § 679.250(d)(1)
• ⁶ 20 CFR § 679.250(d)(2)
• ⁷ 20 CFR § 679.250(e)

1.3.4 Appeals Process for Non-Designation of Local Areas

Effective date: July 1, 2020

If a unit of local government, or a grant recipient, is denied a request to be designated as a local area they may appeal to the CWI using the appeals process outlined in Section VI.c of Wisconsin's Workforce Innovation and Opportunity Act Combined State Plan.

If the appeal is denied, the appellant may appeal to the United States Secretary of Labor. If the Secretary of Labor determines that the appeals process in the State Plan was not followed appropriately, or that the area in question meets the requirements in WIOA 106(b)(2 or 3), then he/she can require that the area be designated a local area.¹

• ¹ WIOA Sec. 106(b)(5)

1.3.5 Development of Regions¹

Effective date: July 1, 2020

WIOA requires that the state identify regions.² The purpose of identifying regions is to align workforce development activities and resources with larger regional economic development areas and available resources to provide coordinated and efficient services to both job seekers and employers.³

Wisconsin's Planning Regions

Wisconsin has identified two planning regions based on alignment with its economic development regions and local labor market information, including commuting patterns between counties, shared labor force, and various other economic factors. These regions are:

• Planning Region A: WDAs 1, 2, and 3
• Planning Region B: WDAs 4 and 5⁴

• ¹ WIOA Sec. 106(a)
• ² WIOA Sec. 106(a)(1)
• ³ 20 CFR § 679.200
• ⁴ Wisconsin PY20-23 WIOA Combined State Plan, p. 115

1.3.6 Governance Agreements

Effective date: July 1, 2020

Each local WDA must have the following governing agreements in place:

• CEO Consortium Agreement¹
• WDB By-Laws²
• WDB-CEO Agreement
• WDB-Fiscal Agent Agreement
• CEO-WDB-Service Provider Agreement, only in cases where the service provider is fulfilling multiple roles within the one-stop delivery system³

These agreements may be standalone documents or may be combined with each other or incorporated into other documents as deemed appropriate by the local area.

Agreements may be reviewed and modified anytime deemed appropriated by the CEO or local WDB and may be reviewed by DWD-DET annually consistent with Chapter 1.2 of this policy manual.

Each local WDA must also develop a WIOA Local Plan, and if part of a planning region, must collaborate on the development of a WIOA Regional Plan.

• ¹ 20 CFR § 683.710(b)(2)
• ² 20 CFR § 679.310(g); Must comply with requirements in the WIOA Policy Manual section 1.4.2.
• ³ 20 CFR § 683.710(b)(2)

1.4.1 Summary

Effective date: July 1, 2017

The Workforce Innovation and Opportunity Act (WIOA) requires the establishment of one local workforce development board (local WDB) in each local area of the State. ¹ The chief elected official (CEO) in each local area is required to appoint the members of the local WDB within that area, in accordance with the criteria established in this policy. ²

Each local WDB must be certified by the State upon initial establishment, and must be recertified once every two years thereafter. ³ To become initially certified, and to gain biennial recertification, the local WDB must satisfy certain membership requirements.

Once established and certified each local WDB is required to carry out specific functions as defined in WIOA Section 107(d) and clarified in Subpart C—Local Workforce Development Boards of the WIOA Final Rule. ⁴ Biennial recertification is dependent upon the success of the local WDB in carrying out those functions.

• ¹ WIOA Section 107(a); TEGL 27-14
• ² WIOA Section 107(c)
• ³ WIOA Section 107(c)(2)
• ⁴ 20 CFR §679.300

1.4.2 Role of the Chief Elected Official (CEO)

Effective date: July 1, 2017

The chief elected official within a local area serves a vital role in establishing and governing the local WDB within that area.

Multiple Units of Local Government

In cases where more than one unit of local government exists within a local area, the chief elected officials of such units may execute an agreement to describe their responsibilities for carrying out roles and responsibilities, including financial liability. ¹ This agreement (i.e., CEO Consortium Agreement) shall determine which official shall serve as the lead for the consortium, and therefore be the designated CEO for the local WDB.

Appointment of Local WDB Members

The chief elected official (CEO) in each local area is required to appoint the members of the local WDB within that area (except those members representing the State's Department of Workforce Development (DWD)) in accordance with established local WDB by-laws and the criteria established in this policy. ²

Special Note About Department of Workforce Development (DWD) Appointees

Positions on the local WDB designated for representatives from State of Wisconsin civil service agencies (i.e., Wagner-Peyser, Vocational Rehabilitation, and Unemployment Insurance) will be appointed to two (2) year terms by the State Secretary of Workforce Development.

At the commencement of each biennial local WDB recertification process DET will issue a list of current DWD-appointed representatives, to include the name, title, contact information, and term end date of each appointee.

By-Laws ³

The CEO for each local WDB must establish by-laws, consistent with State policy, that, at minimum, address the following:

• the nomination process used by the CEO to elect non-DWD-appointed Local WDB members;
• the length of terms for local non-DWD-appointed WDB members, and the process by which term end dates will be staggered to ensure only a reasonable portion of the members' terms expire during any given year;
• the process by which the CEO will be notified of a vacancy on the local board to ensure prompt nomination for and filling of the position;
• the process that will be used when a board member is unable to attend a meeting and assigns a designee per the requirements at 679.110(d)(4);
• the use of technology, such as phone and web-based meetings, to promote board member participation;
• the process to ensure board members actively participate in convening the workforce development system's stakeholders, brokering relationships with a diverse range of employers, and leveraging support for workforce development activities; and
• a description of any other conditions governing appointment or membership on the local board as deemed appropriate by the CEO.

Any changes to the local WDB's By-Laws, including additions, rescissions, amendments, or revisions, must be submitted to the WDB's assigned Local Program Liaison within 20 business days.

Other CEO Functions

The CEO for the local area serves as the local grant recipient. ⁴

The CEO collaborates with the local WDB on the following required functions:

• determining the methodology applied to determining the infrastructure funding of the one-stop delivery system in the local area;
• approving the Memorandum of Understanding executed between the local WDB and the one-stop partners relating to the operation of the one-stop delivery system in the local area;
• setting policy for the workforce development system within the local area;
• developing the local plan; and
• performing all functions outlined in WIOA Section 107(d) and 20 CFR 679.370.

• ¹ 20 CFR 679.310(e)
• ² WIOA Section 107(c); 20 CFR 679.310(a)
• ³ 20 CFR 679.310(g)
• ⁴ WIOA Section 107(c); Final Rule Preamble at 56112

1.4.3 Functions of the Local WDB ¹

Effective date: June 1, 2021

The primary role of the local WDB is to serve as a strategic convener to promote and broker effective relationships between the CEOs and economic, education, and workforce partners throughout the local area. The local WDB must develop strategies to continuously improve and strengthen the workforce development system through innovation in, and alignment and improvement of, employment, training, and education programs to promote economic growth. ²

Required Functions

Once established and certified, each local WDB must carry out specific functions as defined in WIOA Sections 107(d) and 108, and summarized as follows:

• Develop and maintain the 4-year Local Plan
• If involved in a planning region, develop and maintain the Regional Plan in collaboration with the other local areas within the region
• Conduct workforce research and regional labor market analysis
• Convene, broker, and leverage workforce development system stakeholders
• Lead employer engagement efforts
• Collaborate with education representatives to develop and implement career pathways
• Identify and promote proven and promising practices
• Develop and implement strategies for using technology to maximize the accessibility and effectiveness of the local workforce development system for employers, workers, and job seekers
• Conduct program oversight
• Negotiate local performance accountability measures
• Negotiate methods for funding the infrastructure costs of one-stop centers in the local area
• Select and monitor one-stop operators and service providers
• Ensure adequate availability of career and training services, maximizing consumer choice
• Coordinate workforce activities with education and training providers
• Develop, implement, and monitor a budget
• Assess and enact accessibility for individuals with disabilities
• Certify one-stop centers in accordance with 20 CFR 678.800

Optional Functions

WIOA allows local WDBs to perform other functions when certain conditions apply, as outlined below. ³

One-Stop Operator

A local WDB may be selected as a one-stop operator only with the agreement of the CEO in the local area and the State. The selection process must occur:

• Through successful competition in accordance with 20 CFR 678.615; or
• Through sole-source procurement in accordance with 20 CFR 678.610.

In cases where the local WDB is serving in the role of one-stop operator, then the State must ensure certification of one-stop centers.

Career Services

A local WDB may act as a provider of career services for Adult and Dislocated Worker Programs only with the agreement of the CEO in the local area and the State.

Youth and Young Adult Program

The local WDB may directly provide some or all youth workforce investment activities. ⁴

Avoiding Conflict of Interest ⁵

In cases where local organizations are functioning simultaneously in a variety of roles (i.e. service provider and fiscal agent, or service provider and one-stop operator), the organization must develop a written agreement (MOU) with the local WDB and CEO to clarify how the organization will carry out its responsibilities while demonstrating compliance with WIOA and corresponding regulations, the Uniform Guidance, and the State's conflict of interest policy.

The written agreement must clearly describe how the organization and the local WDB will ensure that appropriate firewalls are in place to minimize fiscal risk and prevent a conflict of interest, or the appearance of a conflict of interest.⁶ The emphasis should be on duties that are incompatible or vulnerable to conflict. Some considerations are:

• Access to information related to the multiple roles must be restricted.
• Supervision or control of staff performing the multiple roles must be separate.
• No entity or individual that has any role in issuing a solicitation may compete or submit a proposal under that solicitation.
• Even if there is an adequate separation of duties for most functions, an entity that serves multiple roles within the local area may not audit or monitor itself.⁷

When adequate separation within an organization is not possible, DWD-DET requires the organization to outsource the duties that are in conflict.

• ¹ WIOA Section 107(d)
• ² TEGL 27-14
• ³ 20 CFR 679.410
• ⁴ 20 CFR 681.400(a); TEGL 21-16
• ⁵ 20 CFR 679.430
• ⁶ 81 FR 56105; 20 CFR 679.430
• ⁷ "Transparency in the Workforce System: Establishing Firewalls & Internal Controls." Presented by DOLETA at the 2017 WIOA National Convenings. Accessed 4/15/21 from https://ion.workforcegps.org/resources/2017/03/20/10/21/Financial_Grants_Management_Presentations

1.4.4 Limitations of Local WDB ¹

Effective date: July 1, 2017

Local WDBs are not authorized to provide training services.

Local WDBs do not have authority to mandate curricula for schools.

• ¹ WIOA Section 107(g)

1.4.5 Local WDB Staff ¹

Effective date: July 1, 2017

WIOA allows each local WDB to employ a director and other staff to assist in carrying out the required and optional functions described in this policy.

Director

The local WDB shall establish and apply a set of objective qualifications for the position of director that ensures that the individual selected has the requisite knowledge, skills, and abilities, to meet identified benchmarks and to assist in effectively carrying out the functions of the local WDB.

Limitations on Rate

Local WDBs may hire staff using funds available under sections 128(b) and 133(b) as described in section 128(b)(4). Pay rates and bonuses for these staff shall be subject to the limitations described in section 194(15).

Limitations on pay rate can be determined using the most recent Salary Table: Rates of Basic Pay for the Executive Schedule (EX).

• ¹ WIOA Section 107(f)

1.4.6 Standing Committees

Effective date: July 1, 2017

The local WDB may designate and direct the activities of standing committees to provide information and assist the local board in carrying out required activities. Establishment of standing committees is not required.

If established by the local WDB, each standing committee must:

• be chaired by a member of the local board; and
• include other individuals appointed by the local WDB who are not members of the local board and who the local board determines have appropriate experience and expertise.

Standing committees may also include other members of the local WDB.

WIOA expressly authorizes standing committees to address specific, defined needs as outlined below:

• One-Stop Delivery System: A standing committee to provide information about and assist with operational and other issues relating to the one-stop delivery system; may include as members representatives of the one-stop partners.
• Youth: A standing committee to provide information about and assist with planning, operational, and other issues relating to the provision of services to youth; shall include community-based organizations with a demonstrated record of success in serving eligible youth.
• Individuals with Disabilities: A standing committee to provide information about and assist with operational and other issues relating to the provision of services to individuals with disabilities.

The local WDB may establish other standing committees as it determines appropriate.

1.4.7 Sunshine Provisions ¹

Effective date: July 1, 2017

The local WDB shall make available to the public, on a regular basis through electronic means and open meetings, information regarding the activities of the local board, including:

• information regarding the local plan, or modification of the local plan, prior to submission of the plan;
• list and affiliation of local WDB members;
• selection of one-stop operators;
• award of grants or contracts to eligible training providers of workforce investment activities, including providers of youth workforce investment activities;
• minutes of formal meetings of the local WDB; and
• local WDB by-laws.

• ¹ WIOA Section 107(e); 20 CFR 679.390

1.4.8 Local WDB Membership and Criteria ¹

Effective date: July 1, 2017

The chief elected officials (CEOs) in each local area shall appoint members to the local WDB in accordance with the criteria outlined below:

Business

No less than 51% of each local WDB shall be representatives of businesses in the local area.

Local WDB members representing the Business category must be:

• individuals with optimum policymaking or hiring authority;
• from businesses, including small businesses or organizations representing businesses, that provide employment opportunities and include high-quality, work-relevant training and development opportunities in in-demand industry sectors or occupations ² in the local area. ³
  • "Businesses" can include non-profit organizations representing in-demand industry sectors, such as employers in healthcare and/or education.
  • "Organizations representing businesses" can include trade associations and local and/or regional chambers of commerce.

Business Category Nominations

CEOs in each local area must solicit nominations for local WDB representatives from local business organizations and business trade associations, and make appointments to the local WDB from among the individuals nominated.

Workforce

Not less than 20% of the members of each local WDB shall be representatives of the workforce within the local area.

In this category, local WDBs must include:

• at least two (2) representatives of labor organizations; and
• at least one (1) representative who is a member of a labor organization or a training director from a joint labor-management apprenticeship program.

In local areas where no organized labor representation exists, CEOs shall ensure that at least two (2) other representatives of employees are included in the local WDB membership.

In local areas where no joint labor-management program exists, CEOs shall ensure that at least one (1) additional representative of an apprenticeship program is included in the local WDB membership.

Labor Representative Nominations

For local WDB representatives from labor organizations and joint labor-management programs, CEOs must solicit nominations from local labor federations, and then must make appointments to the local WDB from those individuals nominated.

Within the Workforce category, CEOs may also include:

• representatives of community-based organizations that have demonstrated experience and expertise in addressing the employment needs of individuals with barriers to employment, including organizations that serve veterans or that provide or support competitive integrated employment for individuals with disabilities; and/or
• representatives of organizations that have demonstrated experience and expertise in addressing the employment, training, or education needs of eligible youth, including representatives of organizations that serve out-of-school youth.

Education and Training

In this category, local WDBs must include:

• at least one (1) representative of eligible providers administering Adult Education and Family Literacy Act (AEFLA) activities under Title II of WIOA; and
• at least one (1) representative of institutions of higher education providing workforce investment activities (including, but not limited to, Wisconsin Technical Colleges).

In cases where there is more than one (1) provider of AEFLA activities, or multiple institutions of higher education providing workforce investment activities, operating within the local area, the CEO must solicit nominations from those providers and institutions, and appoint required representatives from among the individuals nominated. There is no requirement that the local WDB include a representative from each provider operating within the local area.

Within this category, CEOs may also include:

• representatives of local educational agencies, and of community-based organizations with demonstrated experience and expertise in addressing the education or training needs of individuals with barriers to employment.

Government and Economic and Community Development

In this category, local WDBs must include:

• at least one (1) representative of economic and community development entities;
• at least one (1) representative of the State employment service office under the Wagner-Peyser Act serving the local area;
• at least one (1) representative of the programs carried out under Title I of the Rehabilitation Act of 1973 serving the local area;
• at least (1) representative of Unemployment Insurance.
  • NOTE: Inclusion of an Unemployment Insurance representative is neither strictly required, nor strictly prohibited, in WIOA Section 107(b)(1). In the interest of partnership with all relevant workforce development agencies, the State requires each local WDB to include a representative from the Division of Unemployment Insurance.

See Special Note About Department of Workforce Development (DWD) Appointees.

In the event one or more of the DWD-appointed positions becomes vacant during the two (2) year certification period, the local WDB must follow the procedures outlined in Changes to Local WDB Membership to notify the LPL of the vacancy so the DWD Secretary can appoint a replacement.

Other

CEOs may appoint other individuals to the local WDB at their discretion, including:

• representatives of agencies or entities administering programs serving the local area relating to transportation, housing, and public assistance;
• representatives of philanthropic organizations serving the local area; and/or
• other individuals or representatives of entities the CEO determines appropriate.

If appointing other representatives, the CEO must ensure that required percentages for Business (at least 51%) and Workforce (at least 20%) categories are maintained.

For a summary of WDB Membership Requirements, including recommendations for appropriate nominating agencies in each category, please see Attachment A, Summary of WDB Membership Requirements.

Representation of Multiple Categories

Members of a local WDB may be appointed as representatives to multiple categories if they meet all the criteria for representation in each of those categories. ⁴

In cases where a single individual is representing multiple categories, the individual shall only receive one (1) vote.

When no representation of multiple categories occurs, the minimum size of a local WDB will be 23 members. [Attachment A, Summary of WDB Membership Requirements, p. 3.]

Demographic and Geographic Diversity

CEOs in each local area shall strive to ensure that their local WDB includes adequate representation of diversity in the following areas:

• in-demand industry sectors;
• geographic location within the local area; and
• demographics including gender, race/ethnicity, ability/disability, etc.

Additional Requirements

Members appointed to the local WDB must be individuals with optimum policy-making authority within the entities they represent, meaning they can reasonably be expected to speak affirmatively on behalf of the entities they represent and commit those entities to a chosen course of action. ⁵

All required local WDB members, as outlined above, must have voting privilege. The CEO may choose whether or not to convey voting privileges to non-required members. ⁶

• ¹ WIOA Section 107(b)
• ² Defined in WIOA Section 3(23), TEGL 27-14
• ³ WIOA Section 107(b)(2)(A)
• ⁴ TEGL 27-14
• ⁵ 20 CFR 679.340
• ⁶ 20 CFR 679.320(i)

1.4.9 Chairperson

Effective date: July 1, 2017

The members of the local WDB shall elect a chairperson for the local board from among the representatives in the Business category, as described in 1.4.8. ¹

• ¹ WIOA Section 107(b)(3)

1.4.10 Biennial WDB Recertification ¹

Effective date: July 1, 2017

After initial establishment, each local WDB must be recertified by the State once every two (2) years.

Recertification shall be granted to one (1) local WDB in each designated local area based on the following criteria:

• Membership of the local WDB is compliant with the membership criteria outlined in the Local WDB Membership and Criteria section 1.4.8; and
• During the most recent period of certification (prior two (2) years) the local WDB has ensured positive outcomes for workforce investment activities carried out in the local area, including successful attainment of performance accountability measures and achievement of sustained fiscal integrity.

Failure to Achieve Recertification

In cases where local WDBs fail to achieve recertification, the Governor shall appoint a compliant WDB following the process outlined in WIOA Section 107(c)(1)(B)(ii).

Decertification ²

Local WDBs may be decertified in certain cases, including when:

• The local WDB is found to have committed fraud, abuse, and/or failure to carry out required functions.
  • In this case, the Governor shall provide notice to the CEO(s) and the local WDB, and an opportunity for comment which will last no less than 30 days.
• The local WDB has failed to meet the local performance accountability measures for such local area in accordance with section 116(c) for two (2) consecutive program years.

If a local WDB is decertified, the Governor, in consultation with the CEO in the local area, may issue a reorganization plan and require that a new board be appointed per the criteria established in the Local WDB Membership and Criteria section 1.4.8.

When subject to reorganization, the local board and CEO for a local area have 30 days after receiving notice of the reorganization plan to appeal to the Governor to rescind or revise the plan. The Governor must provide the CEO with a ruling within 30 days of receiving the appeal. The local board and CEO have 30 days from the date of receiving the Governor's ruling to file an appeal with the Secretary of Labor. The Secretary must make a final decision with 30 days of receiving the appeal. However, the Governor's ruling will be effective at issuance, and will remain effective unless rescinded or revised by the Secretary of Labor. ³

• ¹ WIOA Section 107(c)(2)
• ² WIOA Section 107(c)(3)
• ³ WIOA Sections 116(g)(2)(B,C)

1.4.11 Changes to Local WDB Membership

Effective date: July 1, 2017

To ensure continuous compliance with WIOA and this policy, any changes to the membership of the local WDB must be reported in writing to the Local Program Liaison assigned to the local area within 20 business days from the date of the change.

Notification shall include:

• the name of the board member
• the nature of the change (i.e. added, removed, etc.)
• the organization represented
• job title
• category of inclusion (Business, Workforce, Education & Training, Government/Economic and Community Development, Other)
• term of appointment; and
• for any new member(s) added to the Board, a signed Conflict of Interest form attached to the notification.

1.4.12 Conflict of Interest ¹

Effective date: July 1, 2017

WIOA directs that a member of a local WDB, or a member of a standing committee, may not:

• vote on a matter under consideration by the local board
  • regarding the provision of services by the member (or by an entity that the member represents); or
  • that would provide direct financial benefit to the member or the immediate family of the member.
• engage in any other activity determined by the Governor to constitute a conflict of interest as specified in the State plan.

Each representative serving on the local WDB is required to have a current, signed Conflict of Interest form on record with the Board and with the State. Conflict of Interest forms shall be renewed at the beginning of each Biennial WDB Recertification Process, and shall be provided to the State at that time. For any individual joining the board between recertification periods, a signed Conflict of Interest form must be submitted to the WDB's assigned Local Program Liaison within 20 business days of the member's appointment.

• ¹ WIOA Section 107(h)

1.4.13 Summary of Responsibilities

Effective date: July 1, 2017

CEO Required Actions

• Develop By-Laws governing local WDB operations
• Appoint members to the local WDB ensuring compliance with Federal, State, and Local regulations, including the established By-Laws
• Serve as the grant recipient for the local area
• Collaborate with the local WDB to perform required functions

Local WDB Required Actions

• Perform required functions as outlined in WIOA and this policy
• Provide information to the public in accordance with the Sunshine Provision

Local WDB Optional Actions

• Designate Standing Committees to assist in informing local WDB decisions/actions
• Employ staff to assist in carrying out required functions

State Required Actions

• Certify one (1) local WDB in each local area of the state
• Recertify each local WDB at least once every two (2) years during the Biennial WDB Recertification process

State Workforce Development Board (CWI) Required Actions

• None

1.5.1 Regional Planning

Effective date: July 1, 2020

Local Workforce Development Boards (WDBs) and Chief Elected Officials (CEOs) within local areas that are part of a planning region must engage in regional planning that results in:

• The preparation of a Regional Plan;
• The establishment of regional service strategies, including the use of cooperative service delivery agreements;
• The development and implementation of sector initiatives for in-demand industry sectors or occupations for the region;
• The collection and analysis of regional labor market data (in conjunction with the state);
• The establishment of administrative cost arrangements, including the pooling of funds for administrative costs, as appropriate, for the region;
• The coordination of transportation and other supportive services, as appropriate, for the region;
• The coordination of services with regional economic development services and providers; and
• The establishment of an agreement concerning how the planning region will collectively negotiate and reach agreement with the Governor on local levels of performance for, and report on, the performance accountability measures for local areas or the planning region.¹

Within each region, a single Regional Plan must be prepared, submitted, and granted DWD-DET approval in accordance with Section 1.5.5 of this chapter. The plan must include a description of the activities outlined above and must incorporate the Local Plans for each of the local areas in the planning region.² At the start of each regional planning cycle, DWD-DET will issue guidance outlining Regional Plan requirements, submission deadlines, and other pertinent information.

• ¹ WIOA Sec. 106(c)(1)(A-H)
• ² WIOA Sec. 106(c)(2)

1.5.2 Local Planning

Effective date: July 1, 2020

Each local WDB, in partnership with its CEO, must develop and submit to the DWD-DET a comprehensive four-year Local Plan that must support the strategy described in the State Plan, and otherwise be consistent with the State Plan.¹ This Local Plan is an opportunity for local WDBs to identify current and future strategies and efficiencies to address the continuing modernization of the workforce system and creation of a customer-centered system where the needs of workers and businesses drive workforce solutions, where One-Stop Job Centers provide excellent customer service to all job seekers and businesses, and where the workforce system supports strong regional economies as well as alignment with updated state and local priorities. Local Plans should be based on current and projected needs of the workforce investment system, as a whole. The needs of job seekers, incumbent workers, youth, and businesses should be considered in every step of the planning process. The WDB must maintain a "big picture" view of the system-wide needs of the local Workforce Development Area (WDA) and its relationship to the state vision, rather than focusing on programmatic and operational details. To that end, the Local Plan must be developed with input from local workforce development system stakeholders.² An atmosphere of collaboration and partnership and an emphasis on enhancing the entire system rather than categorical programs, is to be the outcome of this planning process.

At the commencement of each four-year local planning cycle and two-year modification cycle, DWD-DET will issue specific guidance detailing Local Plan requirements, submission deadlines, and other pertinent information.

• ¹ WIOA Sec. 108(a)
• ² WIOA Sec. 106(c)(3)

1.5.3 Plan Modifications

Effective date: July 1, 2020

At the end of year two of the four-year planning period, each WDB, in partnership with its CEO, must review the Regional Plan and/or Local Plan to determine if a modification is necessary.¹ If there are no changes as established in the modification criteria, the planning region and/or local WDB must submit a signed attestation.

Conditions that require a modification to the regional plan include:²

1. Changes in labor market and economic information;
2. Factors affecting the implementation of the Regional Plan such as changes in funding available to support WIOA Title I and partner-provided services; and/or
3. Changes to the strategic goals.

Conditions that require a modification to the local plan include:³

1. Changes in labor market and economic information;
2. Factors affecting the implementation of the local plan such as changes in funding available to support WIOA Title I and partner-provided services, changes to the local Workforce Development Board structure, significant changes in local economic conditions, or revised strategies to meet local performance goals;
3. Changes to the local vision; and/or
4. Changes to the strategic goal.

• ¹ 20 CFR §§ 679.530 and 679.580
• ² 20 CFR § 679.530
• ³ 20 CFR § 679.580

1.5.4 Public Comment

Effective date: July 1, 2020

Consistent with WIOA's Sunshine Provision, the WDB must make copies of the Regional Plan and/or Local Plan available for public comments¹ in each county in the WDA. At minimum, the local WDB must:

• Make copies of the Regional Plan and/or Local Plan available to the public in each county in the WDA through outlets such as public hearings, local news media and local websites.
• Provide opportunity for members of the public and the WDB, including business and labor organizations, to comment on the Plan(s).
• Allow a 30-day period, prior to the submission of the Regional Plan and/or Local Plan to DWD-DET, for comment from the public.
• Make information about the Plan(s) available to the public on a regular basis through open meetings.
• Include any public comments that express disagreement with the Plan(s) and the WDB's response to those comments in the submission to DWD-DET as part of the Regional Plan and/or Local Plan. In addition, the WDB must submit a copy of the published notice.

• ¹ WIOA Sec. 107(e); 20 CFR § 679.390

1.5.5 Plan Submission and Approval

Effective date: July 1, 2020

Each local WDB and planning region must complete the following steps:

1. Develop a local and/or regional plan in accordance with the WIOA Regional and Local Plan Guidelines.
2. Publish the plan(s) for a 30-day public comment period.
3. Present the plan(s) to the board of directors and, if required by local governance documents the chief elected officials, including any public commentary received.
   
   1. Obtain approval from the board of directors and, if required, the chief elected officials, and obtain required signatures.
4. Submit the plan(s) to DWD-DET for review and approval.¹

A Regional Plan and/or Local Plan submitted to DWD-DET, including a modification to such plan, shall be considered approved upon written notice by DWD-DET at the end of the 90-day period beginning on the day DWD-DET receives the Plan(s), or modification, unless DWD-DET makes a written determination during the 90-day period that:

• There are deficiencies in the workforce investment activities that have been identified through audits, and the local area has not made acceptable progress in implementing plans to address the deficiencies;
• or
• The plan does not comply with applicable provisions of the WIOA and the WIOA Final Regulations, including the required consultations and public comment provisions, and the nondiscrimination requirements of 29 CFR Part 37;
• or
• The plan does not align with the State Plan, including with regard to the alignment of the core programs to support the strategy identified in the State Plan in accordance with WIOA Section 102(b)(1)(E) and 20 CFR § 676.105.

• ¹ WIOA Sec. 106(c)(2); WIOA Sec. 108(a)

1.6.1 Overview

Effective date: July 1, 2020

Local Workforce Development Boards (WDBs), grantees, and/or subrecipients are organizations that are not a part of state government and therefore are not accountable to the state policies that govern records maintenance and retention for state agencies and employees.¹ DWD's Division of Employment and Training (DWD-DET) requires that its grantees and subrecipients have local written policies in place to govern access to and retention of grant-related records compliant with WIOA, OMB's Uniform Administrative Guidance, and this WIOA Titles I-A and I-B Policy & Procedure Manual. DWD-DET recommends that its grantees and subrecipients seek assistance from their own legal counsel or records management staff for the development of these policies.²

• ¹ The Department of Workforce Development (DWD) is legally responsible for grant records created by DWD employees. These records follow requirements and retention under ADM00013 – Grant Documentation.
• ² Email from DWD Records Management to DWD-DET, 12/4/2019.

1.6.2 Maintenance and Custody of Records

Effective date: July 1, 2020

DWD-DET requires its grantees to maintain records related to the management and administration of the grant sufficient to:

• supply information for required reporting;
• ensure adequate tracking of funding; and
• ensure lawful expenditures of funding,¹ including records related to income or profits earned² and/or costs incurred that are otherwise allowable except for funding limitations (i.e., stand-in costs).³

All records within the local WDA must be standardized to ensure consistent data collection and reporting.⁴

All records pertaining to DWD-DET grants are subject to Wisconsin Open Records Statute.⁵

Individuals' records must be retained in a manner that protects the confidentiality of their Personally Identifiable Information (PII)⁶ and equal opportunity data and other information.⁷

Each local WDB must make available to DWD-DET any reports, records, plans, or any other data that is required to be submitted by law, regulation, or policy, or upon official DWD-DET request⁸ for as long as the records are retained.⁹

DWD-DET may require the transfer of certain records from the grantee or subrecipient if the organization is no longer able to maintain custody of those records.

DWD-DET requires that records must be retained and stored in a manner that will preserve their integrity and admissibility as evidence in any audit or other proceedings. The burden of production and authentication of the records is the responsibility of the custodian of the records. Electronic retention of records, including the use of cloud-based storage systems, is allowable, assuming the electronic storage meets all other retention requirements outlined in WIOA, OMB's Uniform Administrative Guidance, DWD-DET data sharing agreements, and this policy manual.

• ¹ WIOA Sec. 185(a)(1)
• ² WIOA Sec. 185(f)(1)
• ³ WIOA Sec. 185(f)(2)
• ⁴ WIOA Sec. 185(a)(3)
• ⁵ WIOA Sec. 185(a)(4); Wis. Stat. § 16.61 and 19.31-19.39; Email from DWD Records Management to DWD-DET, 12/4/2019
• ⁶ 2 CFR § 200.79
• ⁷ 29 CFR § 38.41
• ⁸ WIOA Sec. 185(c)(4); 2 CFR § 200.336
• ⁹ 2 CFR § 200.336(c)

1.6.3 Electronic Systems of Record

Effective date: September 4, 2020

DWD-DET has developed and maintains several electronic systems of record for the various types of records required to manage and administer WIOA Title I funded programs:

• ASSET (Automated System Support for Employment and Training) is the system of record for pertinent participant-related information including eligibility, service provision, case notes, and performance reporting.
• CEPT (Comprehensive Employment Planning Toolkit) is the required system of record for economic self-sufficiency determinations and the preferred system of record for individual employment plans (IEP) and individual service strategies (ISS).
  (NOTE: CEPT may become the required system of record for IEPs and ISSs in the future.)
• COMET (Contract Management and Expenditure Tracking) is the system of record for all DWD-DET grantee grant/contract fiscal reporting.
• SOLAR (Sharing of Local Area Resources) is the system of record for American Job Center Memoranda of Understanding (MOUs) including Job Center infrastructure costs and other shared delivery system costs.
• JCW Business (Job Center of Wisconsin Business) is the system of record for business services provided through the one-stop delivery system and performance reporting related to business service activities.
• RRETS (Rapid Response Events Tracking System) is the system of record for Rapid Response activities.

DWD-DET requires local WDBs and their subrecipients to use the appropriate systems of record to maintain WIOA grant-related data. Information entered in the electronic systems of record must be supported by all relevant documentation required throughout this policy manual. This documentation may be maintained in paper files or electronic filing systems, including the use of ASSET's document upload functionality. It is not necessary to maintain both paper and electronic records as long as the electronic record contains all required documentation. Local WDBs must have documentation, data entry, and quality assurance policies and/or procedures in place to ensure the integrity of the data provided to DWD-DET. DWD-DET will monitor data integrity and conduct data validation, at minimum, on an annual basis.¹

Information entered in DWD-DET's electronic systems of record is considered part of DWD-DET's records and will be retained in accordance with ADM00013 – Grant Documentation.² This includes participant-specific documents uploaded to ASSET using the document upload functionality.

• ¹ WIOA Sec. 185(c)(3); TEGL 7-18, p. 2; Using its discretion, DWD-DET determined that it will monitor data integrity and conduct data validation at least once per year.
• ² Email from DWD Records Management to DWD-DET, 12/4/2019

1.6.4 Retention of Records

Effective date: September 4, 2020

All records pertinent to grants and agreements funded by DWD-DET must be retained for a minimum of three years.¹

This includes, but is not limited to:

In any case where a litigation, claim, or audit is started before the expiration of the three-year period, the records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken.⁷ In these cases, a new three-year retention period will begin on the day the litigation, claim, or audit finding is deemed to be resolved.

In cases where the federal awarding agency (USDOL) requires an extended retention period, DWD-DET may require an extended retention period of its grantees and/or subrecipients.⁸

The local WDB and/or its subrecipient(s) are responsible for entering required data in the appropriate electronic systems of record, as outlined in Section 1.6.2. Information contained in DWD-DET's electronic systems of record, including participant-specific documents uploaded to ASSET using the document upload functionality, is considered part of DWD-DET's records and will be retained in accordance with ADM00013 – Grant Documentation.

Costs related to records retention are allowable costs and may be charged to the DWD-DET grant.

• ¹ 2 CFR § 200.333
• ² 2 CFR § 200.333
• ³ 2 CFR § 200.333(c)
• ⁴ 2 CFR § 200.333(e)
• ⁵ 2 CFR § 200.333(f)(1)
• ⁶ 2 CFR § 200.333(f)(2)
• ⁷ 2 CFR § 200.333(a)
• ⁸ 2 CFR § 200.333(b)

1.7.1 Ensuring Continuity of Participant Services

Effective Date: February 16, 2022

In the event that a career planner will no longer be assigned to a participant (due to staff turnover, reassignment, or change of service provider, for example), DWD-DET requires that the participant be reassigned to another career planner. That reassignment and the first attempt to contact the participant by the newly assigned career planner must take place within 10 business days of the original career planner ceasing to be responsible for the participant's case.

If the initial contact attempt is not successful, the career planner must make at least two subsequent attempts within 30 business days of being assigned to the participant. In this case, DWD-DET strongly recommends using various methods of communication (for example, email, phone call, text message). Career planners must also adhere to their local Workforce Development Board's contact policies, if applicable.

The reassignment must be documented by changing the assigned career planner in the ASSET Programs screen and entering an ASSET customer note. All contact attempts, communication methods used, and their results must also be documented in ASSET customer notes.

This practice will ensure that participants receive consistent and continuous access to services in case of staff turnover or other instances of career planner transition.

Note: DWD-DET recognizes that there may be a need to assign participants to a temporary, or interim staff person while conducting recruitment and hiring activities for a full-time, permanent replacement, and considers such temporary/interim assignments to be aligned with the expectations of this policy. Such temporary/interim assignment should still be documented in ASSET, and the temporarily assigned staff person should document contact attempts as outlined in the policy.

2.1.1 Vision

Effective date: August 1, 2020

As envisioned by WIOA, Wisconsin's publicly funded workforce system is quality-focused, employer-driven, customer-centered, and tailored to meet the needs of regional economies.¹

DWD-DET envisions an integrated system in which all partners leverage available funding, cross-train staff, and cooperatively provide shared services to reduce duplication of services, eliminate inefficiencies, and maximize the quality of the customer experience.²

• ¹ TEGL 16-16, p. 2
• ² 81 FR 55883

2.2.1 Overview

Effective date: August 1, 2020

The one-stop delivery system is comprised of a network of physical one-stop job center locations throughout the state, as well as virtual resources available through the Job Center of Wisconsin website. This one-stop delivery system includes six core programs and other required and optional partners identified in WIOA and Wisconsin's WIOA State Plan. The six core programs are:

• Title I Adult program, Dislocated Worker program, and Youth program;
• Title II Adult Education and Family Literacy Act (AEFLA) program;
• Title III Wagner-Peyser Employment Services Act program; and
• Title IV Vocational Rehabilitation Act program.¹

Within the one-stop delivery system these partners work together to operate programs that provide integrated services to a shared client-base that includes both employers and job seekers. Goals of the one-stop delivery system include:

• Providing job seekers with the skills and credentials necessary to secure and advance in employment with family-sustaining wages;
• Providing access and opportunities to all job seekers, including individuals with barriers to employment,² to prepare for, obtain, retain, and advance in high-quality jobs and high-demand careers;
• Enabling employers to easily identify and hire skilled workers and access other supports including education and training for their current workforce;
• Participating in rigorous evaluations that support continuous improvement of one-stop centers by identifying effective strategies to best serve different populations; and
• Ensuring that high-quality integrated data is available to job seekers, employers, and policymakers so they can make informed decisions.³

Management of the one-stop delivery system is the shared responsibility of the state, local workforce development boards (WDBs), elected officials, the core WIOA programs, other required partners, and contracted one-stop job center operators.⁴

• ¹ WIOA Sec. 121(b)(1)(B); 20 CFR § 678.400; TEGL 17-16, pp. 6-7
• ² WIOA Sec. 3(24)
• ³ TEGL 16-16, pp. 3-4
• ⁴ WIOA Sec. 121(e); 20 CFR § 678.300; 81 FR 55878

2.2.2 One-Stop Partners

Effective date: August 1, 2020

Entities that receive funding through the following programs are required to participate in the one-stop delivery system:¹

• WIOA Title I Adult, Dislocated Worker, and Youth;
• WIOA Title I Job Corps;²
• WIOA Title I YouthBuild;
• WIOA Title I Native American Programs;
• WIOA Title I National Farmworker Jobs Program (NFJP);
• WIOA Title II Adult Education and Family Literacy Act (AEFLA);
• WIOA Title III Wagner-Peyser Act Employment Service;
• WIOA Title IV State Vocational Rehabilitation (VR) Services;
• WIOA Title V Senior Community Service Employment Program (SCSEP);
• Trade Adjustment Assistance (TAA);
• Unemployment Compensation;
• Jobs for Veterans State Grant (JVSG);
• Reentry Employment Opportunities (REO);
• Carl D. Perkins Career and Technical Education Act of 2006;
• Employment and training programs funded through Department of Housing and Urban Development (HUD);
• Employment and training programs funded through Community Services Block Grant (CSBG);
• Temporary Assistance for Needy Families (TANF)³

NOTE: The entity is the grant recipient, administrative entity, or organization responsible for administering the funds of the specified program in the local area. This does not include the service providers that contract with, or are sub-recipients of, the local administrative entity. For programs that do not include a local administrative entity, the responsible state agency is the partner.⁴

If the required program or activity is not operational in a local area, the requirements relating to the required one-stop partner are not applicable to that program or activity in that local one-stop delivery system.⁵

With the approval of the local WDB and chief elected official (CEO), other entities may participate as optional partners in the one-stop delivery system, including:

• Employment and training programs funded through Social Security Administration (SSA) including Ticket to Work and Self Sufficiency programs;
• Employment and training programs funded through Small Business Administration;
• Employment and training programs funded through Supplemental Nutrition and Assistance Program (SNAP);
• Client Assistance Programs (CAP) authorized under WIOA Title IV;
• National and Community Service Act programs;
• Other appropriate federal, state, or local programs, including, but not limited to, employment, education, or training programs such as those operated by libraries or in the private sector;
• Programs providing transportation assistance; and
• Services for those with substance abuse or mental health issues.

Partners within the one-stop delivery system make services available on-site, via the use of technology, and/or via formalized referral processes. The methods partners use to provide services and coordinate with each other, including required resource sharing, are documented in the one-stop delivery system Memoranda of Understanding (MOU) (see Section 2.6 of this chapter).

All required partners must use a portion of their program funds to maintain the one-stop delivery system, including jointly funding Job Center infrastructure, based on each partner's proportionate use of and relative benefit from the one-stop delivery system. The allocation methodologies and partners' individual contributions must be documented in the One-Stop Delivery System MOU.⁶

The local Workforce Development Board (WDB) for each local workforce development area (WDA) is the primary convener of these partners and has responsibility to ensure that required partners are included in the one-stop delivery system.

NOTE: The local WDB is not a one-stop partner, unless it is a specific program provider as well.⁷

• ¹ WIOA Sec. 121(b)(1)(B); 20 CFR § 678.400; TEGL 17-16, pp. 6-7
• ² Per TEGL 17-16, p. 5 the entity for Job Corps is the Job Corps training center.
• ³ TANF was exempted from WIOA participation in 2015 as allowed under 20 CFR § 678.405(b)
• ⁴ 20 CFR § 678.415
• ⁵ 20 CFR § 678.415(a)
• ⁶ 20 CFR § 678.420(b)(2)
• ⁷ 81 FR 55882

2.2.3 What is a Job Center?

Effective date: May 3, 2021

To be considered an American Job Center within Wisconsin's one-stop delivery system a location must:

• Physically house at least one required partner, and may physically house additional required and/or optional partner(s); and
• Provide basic and individualized career services;¹ and
• Make available (on-site, via the use of technology, and/or via formalized referral processes) and/or provide training and support services as authorized under WIOA;² and
• Make available (on-site, via the use of technology, and/or via formalized referral processes) and/or provide information about the full range of services available through the one-stop delivery system as authorized under WIOA;³ and
• Include a service area, commonly known as a Resource Room, that is open to the general public or specialized/targeted population (i.e., incarcerated individuals in a correctional facility) during regularly scheduled hours and provides access to labor exchange services⁴ for job seekers and employers.

The local WDB should work with its one-stop delivery system partners to determine the number and placement of Job Center sites. In doing so, the local WDB should consider the resources available within the system, customer needs, and available methods of service delivery.⁵

The local WDB is responsible for assessing physical locations within the borders of its WDA to determine which sites meet the criteria to be considered Job Centers. Each location within the WDA that meets all five of these criteria must be designated as an American Job Center, be identified as an American Job Center in accordance with Section 2.5 of this chapter, be included in a one-stop delivery system MOU in accordance with Section 2.6 of this chapter, and be certified in accordance with Section 2.8 of this chapter. All certified Job Centers within the WDA must be reassessed on a regular basis, at minimum once every three years, to ensure ongoing compliance with these requirements.⁶

Types of Job Centers

Job Centers may be identified as comprehensive, affiliate, or specialized.

A comprehensive Job Center⁷ must meet all the criteria in Section 2.2.2 and must make available (on-site, via the use of technology, and/or via trained staff) all the required partners/programs identified in Section 2.2.1. A comprehensive Job Center must provide career services, workforce and labor market information, as well as access to training services, other employment and training activities,⁸ and programs and services provided by required partners/programs.⁹

A comprehensive Job Center¹⁰ must provide meaningful access to all the required partners/programs by one or more of the following:

• Having a program staff member physically present at the Job Center;
• Having a staff member from a different partner program physically present and appropriately trained to provide information to customers about the services available through all partner programs;
• Making a direct linkage to off-site partner program staf who can provide meaningful information or services.¹¹

If a direct linkage is utilized, then it must occur at the comprehensive Job Center by phone or through real-time Web based communication. Providing a referral, information, or materials does not constitute a direct linkage.¹²

There must be at least one comprehensive job center in each WDA.¹³ At least one WIOA Title I funded staff person must be present when the one-stop center is open for operations.¹⁴ Title I funded partners include the WIOA Adult Program, Dislocated Worker Program, and Youth Program, Job Corps, YouthBuild, Native American Programs, and National Farmworker Jobs Program (NFJP).¹⁵

An affiliate Job Center meets the criteria identified in Section 2.2.2 but does not include all required partners. If WIOA Title III Wagner-Peyser Act services are provided at an affiliate Job Center, at least one or more other one-stop partner programs must be located in the affiliate Job Center, and there must be a physical presence of combined staff from the other program(s) over 50 percent of the time that the site is open.¹⁶

A specialized Job Center is a service location that may or may not meet the criteria listed above, but that is designed to serve as an access and/or outreach site for a specialized group of the population (i.e., youth, dislocated workers from a particular company, incarcerated individuals in a correctional facility, etc.). Specialized Job Centers may be overseen by the local WDB or by DWD-DET. Because a specialized center may be housed in an alternative location (i.e., on-site at an employer facility, in a correctional facility, etc.) hours and access may be determined by the facility, not by a One-Stop Operator or local WDB.

Job Center Hours of Operation

The local WDB and/or the One-Stop Operator (OSO) must work with one-stop delivery system partners to determine hours of operation for each Job Center site. DWD-DET encourages local areas to consider nontraditional hours of operation where driven by customer need and supported by local budgets and staffing patterns.¹⁷ Hours of operation should be negotiated as part of the one-stop delivery system MOU development process, and should be documented in the MOU.

DWD-DET acknowledges that circumstances may arise which require a Job Center to close temporarily due to public health and/or safety concerns (e.g., inclement weather, facility malfunction, etc.). For Job Centers housed in State of Wisconsin owned facilities the State of Wisconsin Executive & Agency Building Closure Policy: Inclement Weather or Emergency Situations must be applied. For Job Centers housed in facilities not owned by the State of Wisconsin, the local WDB and/or One-Stop Operator must establish policies and procedures to address temporary Job Center closures. These policies and procedures must address circumstances that warrant temporary closures, the process by which partner agency staff and the general public will be notified of the closure, and identify which entity has final authority to make the determination of closure. Local policies should take into account that each partner agency must follow its own policies regarding hours and staffing.

• ¹ 20 CFR § 678.305(b)(1); 20 CFR § 678.400; 81 FR 55883
• ² 20 CFR § 678.305(d)
• ³ 20 CFR § 678.305(d); 81 FR 55875
• ⁴ 20 CFR § 652.3
• ⁵ 81 FR 55879
• ⁶ 20 CFR § 678.800(d)
• ⁷ 20 CFR § 678.305(a)
• ⁸ WIOA sec. 134(d)
• ⁹ 20 CFR § 678.305(b)
• ¹⁰ 20 CFR § 678.305(a)
• ¹¹ 20 CFR § 678.305(d); TEGL 16-16
• ¹² 20 CFR § 678.305(d); TEGL 16-16
• ¹³ WIOA Sec. 121(e); 20 CFR § 678.300(c)
• ¹⁴ 81 FR 55877
• ¹⁵ 81 FR 55877
• ¹⁶ 20 CFR § 678.315
• ¹⁷ 20 CFR § 678.800(b);81 FR 55877-55878

2.3.1 Overview

Effective date: August 1, 2020

The one-stop delivery system serves two primary customers – employers seeking talent and job seekers seeking employment.

2.3.2 Employers

Effective date: August 1, 2020

Employer Services, also known as Business Services, are provided through the one-stop delivery system¹ to all interested employers, including small businesses and organizations representing businesses. In particular, employers in in-demand industry sectors or occupations should be targeted to receive services from the local one-stop delivery system.

All business services and strategies must be reflected in the Local Plan.

Effectiveness in Serving Employers is tracked as a primary indicator of performance under WIOA and must be documented in Job Center of Wisconsin Business.

• ¹ 20 CFR § 680.140(b)(2)

2.3.3 Job Seekers

Effective date: August 1, 2020

Services are provided through the one-stop delivery system to individuals seeking employment opportunities. WIOA places emphasis on serving the following populations:

Youth and Young Adults

Services to youth and young adults, both in-school and out-of-school, are provided through the one-stop delivery system.

WIOA Title I Youth Program staff will partner and collaborate with other core program staff including those who work in Titles II, III, and IV programs, as well as the Departments of Public Instruction, Children and Families, and Corrections to develop the materials, information, and trainings pertaining to WIOA youth that will be provided to appropriate Job Center staff. This type of cross-training will increase staff knowledge and understanding of the youth coming into the Job Center looking for programs and services, as well as create opportunities for youth participants that have different skills and experience levels.

Individuals with Barriers to Employment

WIOA places high priority on serving individuals with barriers to employment.¹ Please see Policy 11.13 for a full definition of individuals with barriers to employment.

DWD-DET requires career planners to collect information on individuals' barriers to employment at program intake and document them appropriately in the participant file and ASSET. Barriers should be considered in determining appropriate employability plans and service strategies for one-stop delivery system customers but should not prevent customers from accessing services from any appropriate programs. Identifying barriers can help establish WIOA Title I Youth Program eligibility, WIOA Title I Adult Program priority of service, and can impact negotiated levels of performance via the Statistical Adjustment Model.

• ¹ WIOA Sec. 2

2.3.4 Alternative Means of Providing Job Center Services for Individuals Displaying Aggressive Behavior

Effective date: August 1, 2020

Rarely, but in some circumstances, a person seeking Job Center Services may be asked to leave the Job Center to ensure the safety of Job Center employees and the public. These determinations should be made by the One-Stop Operator (OSO) and/or the local WDB on a case-by-case basis and must be documented by the OSO or local WDB.

Generally, Job Center employees do not have a duty to intervene to stop aggressive behavior, but the Job Center has a general duty to provide a safe place for its employees and members of the public. ¹

If an employee or member of the public feels unsafe, they should contact law enforcement or 911/emergency services. Examples of when employees and/or members of the public may consider contacting law enforcement or 911/emergency services include, but are not limited to, if an individual:

• Verbally or physically abuses or threatens Job Center staff or customers;
• Views inappropriate videos, images, or other content using Job Center computers;
• Causes intentional damage to any part of the Job Center facility or its equipment;
• Causes intentional damage to vehicles in the Job Center parking lot.

In cases where a customer is asked to leave a Job Center for aggressive behavior, the customer must still be allowed to access program services. Methods of service delivery must be modified to provide continued service. Examples include provision of services via technology, meeting with the customer in an off-site public location, meeting with the customer in a controlled group setting, facilitating services through a probation, parole, or other corrections office, or other methods as determined locally.

The local WDB and/or One-Stop Operator must develop local policy and/or procedure compliant with this section to address the case-by-case circumstances when a customer may be asked to leave the Job Center and how the Job Center will provide an alternative means for the customer to access Job Center resources. Any removal of a customer must be temporary, and the local policy must address the accepted timeline(s) for the customer's return to the Job Center.

• ¹ Wisconsin State Stat. § 101.11

2.5.1 American Job Center Network Branding

Effective date: October 1, 2020

Consistent with the requirements in WIOA Section 121(e)(4), Wisconsin's statewide one-stop delivery system has adopted the use of the common identifier "A proud partner of the American Job Center network."¹ The use of this common identifier serves to unify the statewide workforce development system and increase customer awareness of the system, both state- and nation-wide. This identifier must be displayed throughout the one-stop delivery system as outlined in this policy and must be used by local Workforce Development Boards (WDBs) in conjunction with any branding pre-established or newly developed for their local one-stop delivery systems.²

The common identifier "A proud partner of the American Job Center network" must be displayed on the following:

• Certified comprehensive and/or affiliate job center facilities and related property;
• Products of the one-stop delivery system, including, but not limited to, pamphlets, flyers, brochures, other outreach materials, and WIOA Regional and Local Plans;
• Any information related to programs, activities, and/or services offered through the one-stop delivery system, including, but not limited to, workshop materials, program-specific participant forms, and business services communications;
• Items identifying specific one-stop delivery system staff members (e.g. business cards, email signatures, etc.); and
• Electronic resources, including one-stop delivery system and/or job center specific websites.³

The "A proud partner of the American Job Center network" identifier may be displayed in plain text, or using either uppercase version of the "A proud partner of the American Job Center network" logo available at https://www.dol.gov/ajc/.⁴ Wisconsin is opting not to use the other logos made available by DOL.⁵ If a logo is used, it must be used in accordance with the guidelines contained in the Graphics Style Guide for Partners, and with the terms of use for the logos established by the United States Department of Labor.⁶

As a component of the One-Stop Delivery System and Job Center Certification process, DWD-DET has determined that Local WDBs must ensure appropriate use of the "A proud partner of the American Job Center network" common identifier within their respective workforce development areas.⁷ Local WDBs may choose to assign this responsibility to their contracted one-stop operator(s) . In this case, the expectation must be clearly delineated in the one-stop operator contract(s).

Costs related to implementing and/or maintaining the use of the "A proud partner of the American Job Center network" identifier may be considered one-stop infrastructure costs, and may be included in local negotiations and cost-shared between one-stop delivery system partners as part of the One-Stop Delivery System Memoranda of Understanding (MOUs).

• ¹ 20 CFR § 678.900
• ² WIOA Sec. 121(e)(4)
• ³ WIOA Sec. 121(e)(4)
• ⁴ TEGL 16-16, p. 23
• ⁵ NOTE: In cases where local WDBs have used alternative versions of the logo, it is acceptable to use existing stock or retain materials until such time that they need to be replaced. Newly ordered materials must be corrected to use the appropriate logo consistent with this policy.
• ⁶ https://www.dol.gov/ajc/
• ⁷ 20 CFR § 679.370(q)

2.6.1 Overview

Effective date: August 1, 2020

The local WDB, with the agreement of the CEO, must develop and enter into a Memorandum of Understanding (MOU) between the WDB and the one-stop partners identified in Section 2.2.2 of this chapter.¹ The local WDB may opt to develop an "umbrella" MOU including all Job Center locations or a group of Job Centers within its borders, or develop individual MOUs for each Job Center location. Each MOU must include the following provisions:

• A description of the services to be provided through the one-stop delivery system, including the manner in which the services will be coordinated and delivered throughout the system;²
• A description of how the costs of such services and the operating costs of such system will be funded including through cash and in-kind contributions and funding of the Job Center infrastructure costs;³
• Methods of referral of individuals between the one-stop operator and the one-stop partners for appropriate services and activities;⁴
• Methods to ensure the needs of workers and youth (which includes individuals with barriers to employment and individuals with disabilities) are addressed in the provision of necessary and appropriate access to services, including access to technology and materials, made available through the one-stop delivery system;⁵
• The duration of the MOU and the procedures for amending the MOU during the duration, and assurances that such MOU shall be reviewed not less than once every year to ensure appropriate funding and delivery of services.⁶

The MOU may include other provisions as the parties to the agreement determine to be appropriate.⁷

All provisions must be documented using the MOU Template developed and provided by DWD-DET.

• ¹ WIOA Sec. 121(c)(1)
• ² WIOA Sec. 121(c)(2)(A)(i)
• ³ WIOA Sec. 121(c)(2)(A)(ii); Must be fairly evaluated. May include funding from philanthropic organizations or other private entities, or through other alternative financing options.
• ⁴ WIOA Sec. 121(c)(2)(A)(iii)
• ⁵ WIOA Sec. 121(c)(2)(A)(iv)
• ⁶ WIOA Sec. 121(c)(2)(A)(v); DWD-DET has determined that MOUs must be reviewed annually to reflect accurate budgets.
• ⁷ WIOA Sec. 121(c)(2)(B)

2.6.2 One-Stop Infrastructure Funding

Effective date: August 1, 2020

All one-stop partner programs must contribute to the infrastructure costs of comprehensive Job Centers based on their proportionate use of the one-stop delivery system and relative benefit received.¹ In affiliate Job Centers, only the one-stop partners participating in the affiliate Job Center must contribute to the infrastructure costs for that Job Center.² When two or more entities receive funding to carry out a required program in the local area, each entity must contribute to infrastructure costs, including costs at an affiliate Job Center.³

NOTE: Native American programs authorized under WIOA Sec. 166 are not required to contribute to Job Center infrastructure costs. Any agreement to contribute, or not contribute, must be documented in the MOU. The lack of agreement on infrastructure costs with Native American programs does not trigger the State Funding Mechanism (SFM) for the local area, and Native American programs are not subject to the SFM if it is triggered.⁴

The term "infrastructure funding," used with respect to a Job Center, means the non-personnel costs that are necessary for the general operation of the Job Center.⁵ Line items that fall into this category may include:

• Rent – The costs for usage (lease) of the facility, or portion of the facility, in question. This should not include any other line items (i.e., utilities or maintenance) unless they are included in the lease.
• Maintenance – The costs to maintain the physical structure of the facility, including janitorial services, lawn care, and snow removal.
• Utilities – The costs for general services to the facility in question, such as electricity, gas, water and sewage, but not including internet access.
• Equipment⁶ – The costs for equipment used to facilitate access to the one-stop center, including, but not limited to, assessment-related and assistive technology for individuals with disabilities.
• Common Identifier Costs – The costs for signage, outreach, and other identification for the one-stop center.
• Technology – The costs for technology to facilitate access to the one-stop center (i.e., internet access), including, but not limited to, technology used for the center's planning and outreach activities. This includes assistive technology to ensure meaningful access for individuals with disabilities.
• Supplies⁷ — The costs for items as defined in Uniform Guidance at 2 CFR 200.94, used to support the general operation of the one-stop center.⁸

It is not necessary to identify in the MOU shared costs that are directly cost-allocated through an individual partner's lease agreement with the lessor (i.e., costs for Resource Room space, shared conference rooms, bathrooms, and hallways that are cost-allocated to each partner through the lease agreements). This also applies to shared maintenance, utility, and/or supply costs that are cost-allocated by the landlord through the individual lease agreements. In this case this should be clearly documented in the Infrastructure Funding Agreement (IFA).

Partners must negotiate the extent of infrastructure costs. In-kind contributions are allowable; however, partners must agree that the in-kind contribution is required in the Job Center and is an acceptable form of cost contribution among the partners.

The local WDB, CEOs, and Job Center partners in a local area may fund the costs of Job Center infrastructure through:

• The Local Funding Mechanism (LFM) or
• The State Funding Mechanism (SFM).⁹

Local Funding Mechanism (LFM)

Local WDBs must attempt to engage partners in good-faith negotiations using locally identified costs and locally determined cost allocation methodologies agreed upon by the local WDB, CEOs, and one-stop delivery system partners.¹⁰ These costs and cost allocation methodologies comprise the Local Funding Mechanism (LFM).

State Funding Mechanism (SFM)

In cases when local negotiations related to the funding of one-stop infrastructure cannot be successfully completed within the timeframes established in DWD-DET's annual MOU guidance, the local WDB must notify DWD-DET of the failed negotiations, which will trigger application of the State Funding Mechanism (SFM). The SFM may be triggered in any case where one or more required partners fail to reach consensus related to infrastructure costs.¹¹ Failure to reach consensus on additional costs does not trigger the SFM.¹² Failure to reach consensus on infrastructure costs with additional non-required partners does not trigger the SFM.¹³

The SFM looks at the covered portion of funding for a fiscal year for a program that is a required partner. In local areas where the SFM is applied, the covered portions of funding for a fiscal year shall be provided to DWD-DET from the required partner programs to assist in paying the costs of infrastructure of Job Centers in those local areas of the state not adequately funded under the local funding mechanism.

A request to invoke the SFM must be submitted by the local WDB, in writing,¹⁴ to DETWIOA@dwd.wisconsin.gov. This request must include:

1. a description of the good-faith negotiations that occurred at the local level;
2. a copy of, or link to, the WIOA Local Plan;
3. a description of the cost allocation methodology or methodologies proposed by the partners to be used in determining the proportionate share;
4. the proposed amounts or budget to fund infrastructure costs and the amount of partner funds included;
5. the type of funds (cash, non-cash, and third-party in-kind contributions) available;
6. any proposed or agreed upon one-stop center or system budget; and
7. any partially agreed upon, proposed, or draft Infrastructure Funding Agreements (IFAs).¹⁵

Once a request is received, DWD-DET will:

1. Determine the infrastructure budget(s).
   
   1. If a budget was agreed upon by the one-stop partners during local negotiations, but consensus was not reached on individual programmatic contributions, then DWD-DET will use the locally determined budget.
   2. If consensus was not reach by local partners on an infrastructure budget, or DWD-DET determines that the agreed upon budget does not adequately meet the needs of the local area or does not reasonably work within the confines of the resources available to that local area, then DWD-DET must use a formula determined by the State WDB using the following factors:
      
      1. The number of one-stop centers in a local area;
      2. The total population served by such centers;
      3. The services provided by such centers; and
      4. Any factors relating to the operations of such centers in the local area that the State WDB determines are appropriate.¹⁶
   
   
2. Establish a cost allocation methodology to determine the distribution of infrastructure funding costs among local one-stop partners based on proportionate use of the one-stop center and relative benefit received. This cost allocation methodology must be consistent with the Federal Cost Principles of the Uniform Guidance in 2 CFR Part 200, all relevant federal regulations and statutes, further regulatory guidance, and the partner programs' authorizing laws and regulations. The following methodologies may be considered:
   
   1. Number of customers served;
   2. Square footage used;
   3. Full-time equivalent staff employed by each partner;
   4. Other variables as determined appropriate to the local area.¹⁷
   
   
3. Apply the established cost allocation methodology or methodologies to the infrastructure budget to determine partners' proportionate shares. In doing so, DWD-DET will consider the following:
   
   1. The costs of administration of the one-stop delivery system for purposes not specifically related to a one-stop center for each partner (i.e., costs associated with maintaining the Local WDB or information technology systems);
   2. Statutory requirements for each partner program;
   3. Each one-stop partner's ability to fulfill such requirements; and
   4. All other applicable legal requirements.¹⁸
   
   
4. Calculate the statewide caps to determine the maximum amounts that required partner programs could be required to contribute toward infrastructure funding in the local area. This is a requirement even when only one local area is unable to reach consensus on an IFA through the LFM, but the caps only restrict those infrastructure cost contributions required by one-stop partners within the local area(s) that has (or have) not reached consensus.
   
   NOTE: If multiple local areas do not reach consensus, then the total infrastructure funding costs that must be contributed by each required one-stop partner in all of the local areas that do not reach consensus is restricted by the program cap. For example, if three of eleven local areas do not reach consensus, then the required infrastructure funding contributions of each required one-stop partner under a particular program in these three areas would be added together, the sum of which could not exceed the calculated applicable program cap.
   
   To calculate the applicable program caps, DWD-DET will take the following steps:
   
   1. Apply a partner's individual applicable limiting percentage¹⁹ to the total federal funding which that program receives for the affected program year to reach the maximum potential cap (MPC).
      Limiting % total federal program funding = MPC
   2. Select a determining factor or factors that reasonably indicate the use of one-stop centers in the state. DWD-DET may use the WIOA formula allocation methodology, or other appropriate data, to determine this factor.
   3. Apply the determining factor(s) to all local areas across the state, and then determine the percentage of the factor(s) that is applicable to those areas that reached consensus, or the consensus areas' factor percentage.
   4. Apply the consensus areas' factor percentage to the MPC to find the consensus areas' portion of the MPC.
      Consensus areas' factor % x MPC = Consensus areas' portion of the MPC
   5. Subtract the amount equal to the consensus local areas' portion of the MPC from the MPC. The remaining amount is the applicable program cap for use in the local areas that have not reached consensus and are subject to the SFM.
      MPC – Consensus areas' portion of MPC = Applicable program cap for non-consensus area(s)
   
   
5. Assess the aggregate total of infrastructure contributions as it relates to the statewide cap to ensure that the funds required to be contributed by each partner program in the non-consensus local area(s), in aggregate, do not exceed the applicable program cap. See pages 24 and 25 in TEGL 17-16 to find each partner's individual applicable limiting percentage.
   
   1. If the aggregate total contributions are below the applicable program cap, then DWD will direct the one-stop partners to contribute what was determined to be their proportionate shares.
   2. If the aggregate total contributions exceed the cap, then DWD-DET may either:
      
      1. Inquire as to whether those local partner programs that have pushed the aggregate total contributions above the applicable program cap are willing to contribute beyond the applicable program in accordance with their proportionate share; or
      2. Allow the local WDB, one-stop partners, and CEO(s) to re-enter negotiations to reassess each one-stop partner's proportionate share and make adjustments and identify alternate sources of funding to make up the difference between the capped amount and the proportionate share of infrastructure funding on the one-stop partner; and/or % infrastructure costs to reflect the amounts of funds available without exceeding the applicable program cap level.
   
   
6. If re-negotiation fails under step 5 above, adjust the proportionate shares to ensure that the aggregate total contribution of a program's local one-stop partners under the SFM does not exceed the applicable program cap.

Once all SFM calculations are completed, DWD-DET will notify, in writing, all required partners of their required contribution. This notification will include documentation showing the calculations completed.

Appeals by One-Stop Delivery System Partners

Any one-stop delivery system partner may appeal the portion of infrastructure funds assigned to them under the SFM by following the appeals process outlined in the WIOA State Plan as follows:

1. Submit a written appeal to CWI within 15 calendar days of receiving a written determination notification;
   
   1. Explain why it believes the determination is contrary to the provision of WIOA section 102(b)(2)(D)(i)(IV).
2. CWI Chair will convene a special meeting of a designated committee to review and respond in writing to such an appeal within 30 calendar days of its receipt.
3. If the petitioning entity is denied, further appeal to the Secretary of Labor may occur if the entity alleges that the area meets the requirements of WIOA section 102(b)(2) or that the entity was not accorded procedural rights under the state appeal process described herein. All such appeals to the Secretary must be submitted within 15 calendar days of receipt of the notification of denial by the CWI on behalf of the Governor. The appealing entity must simultaneously notify the Governor and the CWI of such an appeal to the Secretary of Labor. The Secretary of Labor will make a final decision within 30 calendar days after the appeal is received. The Secretary of Labor will notify the Governor and the appellant in writing of the Secretary's decision. Pending the Secretary of Labor's decision, the original determination of infrastructure costs will be implemented.

• ¹ TEGL 17-16, p. 2-3 and p. 5-6
• ² TEGL 17-16, p. 6
• ³ TEGL 17-16, p. 6; TEGL 17-16, p. 5 defines "entity" as the grant recipient, administrative entity, or organization responsible for administering the funds of the specified program in the local area. It does not include the service providers that contract with, or are sub-recipients of, the local administrative entity. For programs that do not include a local administrative entity, the responsible state agency is the partner.
• ⁴ TEGL 17-16, p. 8
• ⁵ WIOA Sec. 121(h)(4), TEGL 17-16, p. 4
• ⁶ 2 CFR § 200.33
• ⁷ 2 CFR § 200.94
• ⁸ TEGL 17-16, p. 4
• ⁹ WIOA Sec. 121(h)
• ¹⁰ TEGL 17-16, p. 19
• ¹¹ TEGL 17-16, p. 20
• ¹² TEGL 17-16, p. 20
• ¹³ TEGL 17-16, p. 20
• ¹⁴ TEGL 17-16, p. 21
• ¹⁵ TEGL 17-16, p. 21
• ¹⁶ TEGL 17-16, p. 21-22
• ¹⁷ TEGL 17-16, p. 22
• ¹⁸ TEGL 17-16, p. 22
• ¹⁹ WIOA Sec. 121(h)(2)(D); 20 CFR § 678.738(c); 34 CFR § 361.738(c); 34 CFR § 463.738(c); TEGL 17-16, p. 24-25

2.6.3 Shared Delivery Costs / Additional Costs

Effective date: August 1, 2020

One-stop partners must share in additional costs, which must include applicable career services, and may include shared operating costs and shared services that are necessary for the general operation of the one-stop center.¹ The costs of shared career services may include initial intake, assessment of needs, appraisal of basic skills, identification of appropriate services to meet such needs, referrals to other one-stop partners, and business services, including the personnel expenses associated with delivering these services.

The cost of the competitive procurement for a one-stop operator, and the subsequent contract issued to a one-stop operator in each Job Center or one-stop delivery system, may be negotiated as a shared delivery cost with one-stop partners assuming one-stop partners come to consensus on the shared cost and cost-allocation methodology.

Resource room costs may be included in local negotiations as shared delivery costs. This includes the cost of integrated career service provision as well as personnel costs related to shared career services and/or reception services which may or may not be included in a one-stop operator contract. For staff who split their time between resource room/reception functions and other functions, reasonable measures should be used to split their staffing costs between the functions they perform.

Partners must negotiate the extent of sharing delivery/additional costs. In-kind contributions are allowable; however, partners must agree that the in-kind contribution is required in the Job Center and is an acceptable form of cost contribution among the partners.

• ¹ TEGL 17-16, p. 4
• ² These costs are identified as infrastructure costs and must be shared.

2.6.4 Local Negotiations

Effective date: August 1, 2020

Local WDBs and all WIOA-required one-stop partners must enter into good-faith negotiations to determine each provision in the MOU, including:

• Completion of the MOU template regarding the structure and integration of the one-stop delivery system in the local area;
• Costs necessary to support the infrastructure of the one-stop delivery system in the local area;
• Costs necessary to support the delivery of shared services in the local area; and
• The cost allocation methodology or methodologies by which shared costs will be split between partners to reflect proportionate use and relative benefit.

DWD-DET strongly recommends convening these negotiations in-person to facilitate effective communication between all parties. Local WDBs, CEOs, and/or partners may request assistance with the negotiation process from DWD-DET.

The method for determining the appropriate portion of funds and noncash resources to be provided by the one-stop delivery system partner for each program for a Job Center must be determined as part of the development of the MOU for the Job Center or one-stop delivery system and must be stated in the MOU. In cases where local negotiations stall or fail DWD-DET will implement the State Funding Mechanism (SFM) upon request.

Allocation Cost Pools

Local areas are empowered to select the cost sharing methodologies that best suit the needs of the participating one-stop partners. While some areas might be best served by a single cost-sharing method, others may benefit by allocating different types of costs using multiple methodologies. To simplify the cost-allocation process, DWD-DET recommends that partners bundle similar costs into cost pools and allocate the pools as a whole, as opposed to allocating each line item individually. For example, a WDB may choose to bundle all infrastructure costs into one cost pool that is allocated on a square-footage basis, while the remaining costs are pooled and allocated on a per-participant basis. This allows WDBs more flexibility in determining equitable cost allocations for costs driven by use, while correctly accounting for fixed facility costs. Acceptable cost allocation methodologies may include:

• Square footage;
• Full-time equivalent employee count (FTE);
• Customer count; and
• Customized/Manual allocations based on local negotiations.

2.6.5 Budget Development, Modification, and Periodic Reconciliation

Effective date: August 1, 2020

The local WDB must develop an annual budget for each certified Job Center within the WDA. Each budget should break down items into the cost allocation pools and expense types used during the negotiation process, with projected numbers.

The system of record for Job Center budgets is DWD-DET's Sharing of Local Area Resources (SOLAR). Annual budgets and any budget modifications during the MOU period must be entered into SOLAR. Budgets must also be reconciled against actual expenditures on, at minimum, a quarterly basis using SOLAR's periodic reconciliation feature.

2.6.6 Review and Approval Process

Effective date: August 1, 2020

In order for the local WDBs' MOU(s) to be considered complete and ready for review by DWD-DET, the following must be completed:

1. Successful negotiation of terms with all required and additional one-stop partners, or implementation of the State Funding Mechanism;
2. Completed documentation of the agreed upon terms using the MOU Template, Infrastructure Funding Agreement template, and Shared Delivery Cost Agreement template;
   and
3. Development of Job Center budgets in the SOLAR application.

These documents must be submitted to the assigned Local Program Liaison for DWD-DET review and approval.

Upon DWD-DET approval of the MOU documents, they will be returned to the local WDB to be routed for signatures by all relevant signatory authorities. The signatory authority for all DWD programs is the Deputy Secretary of the Department.

Completed and signed MOUs will be uploaded to the SOLAR application.

2.7.1 Procurement of the One-Stop Operator(s)

Effective date: October 1, 2020

The local WDB, with the agreement of the Chief Elected Official (CEO), must competitively procure one-stop operator(s) for its Job Center(s) or One-Stop Delivery System at least once every four years.¹ Procurement activities must be compliant with local procurement policies and procedures and the principles of competitive procurement in the Uniform Guidance parts 2 CFR §§ 200.318 through 200.326.² The competitive procurement process for the OSO must be documented in writing and must:

• explain the nature of the competitive process;
• describe how market research, requests for information, and cost and price analysis were conducted as part of the procurement preparation; and
• clearly articulate the role of the OSO.³

Consistent with Uniform Guidance, procurement methods may include:

• procurement by sealed bids;
• procurement by competitive proposals; or
• procurement by sole source, only if determined necessary in accordance with Uniform Guidance and the WIOA Titles I-A and I-B Policy & Procedure Manual.⁴

The procurement process must clearly identify a scope of work and budget for the OSO function. The budget must include a sufficient amount of funding to account for staffing the required functions outlined in the scope of work; at minimum the budget must include at least $3500.⁵ The cost of the OSO contract may be cost-shared among one-stop partners through the One-Stop Delivery System Memorandum of Understanding (MOU) local negotiation process.

The local WDB may procure a single OSO to operate one or more Job Centers within the local area, or multiple OSOs to operate specific job centers within the local area.⁶ DWD-DET strongly encourages the procurement of a single OSO in each local area or planning region. Identifying a single OSO in each local area allows the local WDB to streamline its contracting and oversight responsibilities, while ensuring consistent integrated service delivery throughout its various locations among all required and additional one-stop partners.

• ¹ WIOA Sec. 121(d)(2)(A); 20 CFR § 678.605
• ² 20 CFR § 678.605(a)
• ³ 20 CFR § 678.605(c); 20 CFR § 678.620(a)
• ⁴ 20 CFR § 678.610
• ⁵ 2 CFR § 200.319(a); 2 CFR § 200.323(a); DWD-DET has determined that the minimum amount for an OSO budget to be considered competitive is $3500.
• ⁶ 20 CFR § 678.600(b)

2.7.2 Eligible Entities

Effective date: October 1, 2020

To be eligible to receive funds to operate a Job Center, an entity (which may be a consortium of entities) must:

• be selected as a one-stop operator through a competitive process;
• be an entity (public, private, or nonprofit)¹ of demonstrated effectiveness, located in the local area, which may include:
  
  • an institution of higher education;
  • a nontraditional public secondary school such as a night school, adult school, or an area career and technical education school;
  • a community-based organization, nonprofit organization, or workforce intermediary;
  • a private for-profit entity;
  • a government agency;
  • an Employment Service State agency established under the Wagner-Peyser Act;
  • Indian Tribes, tribal organizations, Alaska Native entities, Indian-controlled organizations serving Indians, or Native Hawaiian organizations (collectively referred to herein as "Indian Tribes");
  • a local WDB, with the approval of the CEO and the Governor;² or
  • another interested organization or entity, which is capable of carrying out the duties of the one-stop operator and may include a local chamber of commerce or other business organization, or a labor organization.³

Elementary schools and secondary schools are not eligible for designation or certification as one-stop operators, except nontraditional public secondary schools and career and technical education schools.⁴

Local WDBs as One-Stop Operators

A local WDB may submit a proposal to be the one-stop operator in its own local area. In cases where the local WDB wishes to compete for an OSO contract, the local WDB cannot be involved in the development or evaluation of the competitive procurement process.⁵ In these cases, the local WDB may contract with an outside entity, for example another local WDB or directly with DWD, to manage the procurement cycle.

If the local WDB is selected as the OSO for the local area, then it must contract with another entity to perform the required monitoring and oversight functions of the OSO contract.

The selection of the local WDB as the OSO for the local area must be authorized, in writing, by both the Chief Elected Official (CEO) and the Governor, or the Governor's authorized designee.⁶ An official request must be submitted in writing to the CEO and to the assigned DWD-DET Local Program Liaison by the WDB Chairperson prior to the execution of the OSO contract.⁷

• ¹ 20 CFR §678.600(a); May be a consortium of entities that, at a minimum, includes three or more of the required Job Center partners.
• ² WIOA Sec. 107(g)(2); TEGL 15-16, p.4
• ³ 20 CFR § 678.600(c-d)
• ⁴ 20 CFR § 678.600
• ⁵ 2 CFR § 200.319(a)
• ⁶ 20 CFR § 678.600(c)(6)
• ⁷ 20 CFR § 678.620(b)(2); 20 CFR § 679.430

2.7.3 Functions of the OSO

Effective date: October 1, 2020

Each OSO must coordinate the service delivery of required one-stop partners and service providers to ensure meaningful access to all programs through the one-stop delivery system.¹

Local WDBs may establish additional roles for the OSO, including, but not limited to:

• coordinating service providers within the Job Center and across the One-Stop Delivery System;
• being the primary provider of services within the Job Center;
• providing some of the services within the Job Center;
• coordinating service delivery in a multi-center area, which may include affiliate job centers;
• acting as the Job Center Complaint Coordinator;
• performing other designated functions related to Equal Opportunity and Civil Rights Compliance; or
• other allowable functions as determined by the local WDB.²

OSO functions must be clearly delineated in the contract agreement between the WDB and the contracted entity and must be adequately funded.

The OSO must not:

• convene system stakeholders to assist in the development of the local plan;
• prepare and submit local plans;
• be responsible for oversight of itself;
• manage or significantly participate in the competitive selection process for the OSO;
• select or terminate OSOs, or providers of career and/or youth services;
• negotiate local performance accountability measures; nor
• develop and submit budgets for activities of the local WDB.³

OSOs must disclose to the local WDB, in writing, any potential conflicts of interest arising from the relationships of the operators with particular training service providers or other service providers.⁴

OSOs must not establish practices that create disincentives to providing services to individuals with barriers to employment who may require longer-term services, such as intensive employment, training, and education services.⁵

OSOs must comply with federal regulations and procurement policies relating to the calculation and use of profits.⁶

• ¹ 20 CFR § 678.305(d); 20 CFR § 678.620(a); 81 FR 55876
• ² 20 CFR § 678.620(a)
• ³ 20 CFR §678.620(b)(1)
• ⁴ 20 CFR § 678.600(e)(1)
• ⁵ 20 CFR § 678.600(e)(2)
• ⁶ 20 CFR § 678.600(e)(3)

2.7.4 OSOs Serving Multiple Roles

Effective date: June 1, 2021

Any entity serving as an OSO that also serves a different role within the one-stop delivery system may perform some or all of these functions when it is acting in its other role if it has established sufficient firewalls and conflict of interest policies and procedures in accordance with 20 CFR § 679.430.¹ Any organization that has been selected to perform more than one of these functions must develop a written agreement with the local WDB and CEO that clearly describes how that organization and the local WDB will ensure that appropriate firewalls are in place to minimize fiscal risk and prevent a conflict of interest or the appearance of a conflict of interest.² the conflict of interest agreement may be part of the OSO agreement or a separate agreement.

An OSO can be a service provider, but there must be appropriate firewalls in place regarding the competition and subsequent oversight, monitoring, and evaluation of performance of the service provider.

The OSO cannot develop, manage, or conduct the competition of a service provider in which it intends to compete.

There must also be firewalls and internal controls within the operator-service provider entity.

In cases where the local WDB is selected as the OSO, appropriate firewalls must be established to distinguish between its role as the local WDB and its role as the OSO. These firewalls should be clearly defined in the written request for authorization described in Section 2.7.2.1.

• ¹ 20 CFR § 678.620(b)(2)
• ² 81 FR 56105; 20 CFR 679.430

2.7.5 Monitoring & Oversight of the OSO

Effective date: October 1, 2020

The local WDB must develop a written policy and procedure regarding oversight, monitoring, and evaluation of performance of the OSO. At minimum, this policy must ensure that the following are reviewed annually:

• Performance of each contractually required OSO function; and
• OSO expenditures, to ensure they are within budget and are reasonable, necessary, and allowable in accordance with the Uniform Guidance.

2.8.1 Overview

Effective date: July 1, 2024

The Workforce Innovation and Opportunity Act of 2014 (WIOA) requires that each local WDB assess and certify the one-stop delivery system and the job center locations within its local area using objective criteria and procedures developed by the Governor's Council on Workforce Investment (CWI), in consultation with chief elected officials (CEOs) and local workforce development boards (WDBs).¹

Certification is required for local areas to use WIOA Title I funds to pay for job center infrastructure costs.² Any job center location that will be included in the One-Stop Delivery System Memorandum of Understanding (MOU) and/or receive WIOA Title I infrastructure funding must be certified.

The local WDB must recertify its one-stop delivery system and related comprehensive and affiliate job centers at least once every three (3) years³ by completing the following DWD-DET forms:

• A single One-Stop Delivery System Self-Certification Attestation;
• A single One-Stop Delivery System Certification Checklist; and
• A One-Stop Job Center Certification Checklist for each individual job center within the borders of the local area.

If the local WDB is the one-stop operator, then DWD-DET must certify the one-stop center.⁴

• ¹ WIOA sec. 121(g)(1), 20 CFR 678.800(a)
• ² WIOA sec. 121(h); 20 CFR 678.800(d)
• ³ WIOA sec. 121(g)
• ⁴ 20 CFR 678.800(a)(3)

2.8.2 Certification Criteria

Effective date: July 1, 2024

The one-stop delivery system and job center certification criteria are developed by CWI, in consultation with CEOs and local WDBs, and are reviewed at least once every two years in conjunction with the WIOA State Plan and modification submissions.¹ These criteria are outlined in the following DWD-DET forms:

• One-Stop Delivery System Certification Checklist; and
• One-Stop Job Center Certification Checklist.

The purpose of the established criteria is to evaluate the one-stop delivery system and one-stop job centers for effectiveness, including customer satisfaction, physical and programmatic accessibility, and continuous improvement², including:

• Integration of available services for participants and businesses;
• Ability to meet the needs of participants and businesses;
• Cost effectiveness and efficiency;
• Coordination of services between one-stop partner programs;
• Provision of meaningful access to partner programs and services to the maximum extent possible, including provision of services outside of regular business hours (as determined necessary by the local WDB);
• Evaluation of how well the one-stop center ensures equal opportunity for individuals with disabilities to participate in or benefit from one-stop center services;
• Compliance with the disability-related regulations implementing WIOA sec. 188, set forth at 29 CFR part 38;
• Achievement of the negotiated local levels of performance for the indicators of performance for the local area;
• Identification of, and response to, the technical assistance needs of staff;
• Provision of continuing staff development; and
• Collection of and response to customer feedback.

The local WDB may develop additional criteria, or set higher standards for service coordination, than those set by the State criteria. These additional criteria must be included in the WIOA Local Plan and must be reviewed and updated every two years as part of the WIOA Local Plan modification process.³

Customer Satisfaction Surveys

The local WDB and/or one-stop operator(s) must have an established system in place to solicit regular feedback from one-stop customers. The survey must be available in alternate formats and the feedback must be incorporated into the one-stop certification evaluation.⁴

• ¹ 20 CFR 678.800(a)(1)
• ² 20 CFR 678.800(a)(2)
• ³ 20 CFR 678.800(d)
• ⁴ 20 CFR 678.800(b)

2.8.3 Changes During the Certification Period

Effective date: July 1, 2024

Job Center Status Change

In the event that a job center has a comprehensive to affiliate status change or affiliate to comprehensive status change, the WDB must provide a minimum seven-day public notice or longer in accordance with established local policies and procedures, if applicable. The WDB must complete the following forms:

• One-Stop Job Center Status Change Form for that location, and
• revised One-Stop Delivery System Self-Certification Attestation form reflecting the change.

Relocation

In the event that a job center moves to a new location during the certification period, the WDB must provide a minimum seven-day public notice or longer in accordance with established local policies and procedures, if applicable. The WDB must complete the following forms:

• One-Stop Job Center Certification Checklist for the new location, and
• revised One-Stop Delivery System Self-Certification Attestation form reflecting the change.

Decertification

In the event that a job center permanently closes the WDB must provide a minimum seven-day public notice or longer in accordance with established local policies and procedures, if applicable. The WDB must complete the following forms:

• One-Stop Job Center Status Change Form for that location, and
• revised One-Stop Delivery System Self-Certification Attestation form reflecting the change.

3.1.1 WIOA Allocation Process

Background

The workforce development activities carried out in Wisconsin’s eleven Workforce Development Areas (WDAs) are federally funded through the Workforce Innovation and Opportunity Act (WIOA). WIOA funds are distributed to states based on three factors described in Sections 128 and 133 of the WIOA Act¹. Funds provided through this process are considered allotments, are announced through a Department of Labor (DOL) Training and Employment Guidance Letter (TEGL) usually in March, and are provided for Youth, Adult, and Dislocated Worker programs.

WIOA Allocation Process

The Department of Workforce Development has developed the WIOA Allocation Guide to help understand how WIOA allocations are developed for Wisconsin Workforce Development Areas.

The document contains instructions for each step of the allocation process, protocols for allocation development and a checklist to ensure that each step is completed in a timely fashion. This guide will serve as the operating instruction for the staff members who will calculate the allocations.

It is also important to note that this document represents an ongoing work in progress. After each allocation cycle, the Division of Employment and Training (DET) will review the effort and improve the process, as necessary. This guide will be revised to reflect those process improvements.

The guide and the allocation process meet the Department of Labor requirements. The guide will also be revised to reflect changes to the allocation process that must be implemented in response to changes in federal requirements.

WIOA Allocation Guide

This guide is part of the WIOA State plan² and is located under "Other Appendices".

• ¹ WIOA Section 128 & Section 133
• ² WIOA State Plan

3.2.1 Modification of Grants

Effective date: May 31, 2018

Background

A request for modification can either be initiated by the local WDB or DWD-DET.

Reasons for Grant Modification

A grant must be modified if any of the following conditions occur:

1. The grant period changes.
2. A budget adjustment is needed.
3. Additional funds are added.
4. Un-obligated funds are recaptured and reallocated.
5. Funds are rescinded.
6. Funds are transferred between the WIOA Adult Program and the Dislocated Worker Program.
7. Planned activities under the grant undergo major alterations.
8. Errors are identified on the original grant agreement.
   
   * There may be other reasons that require a grant modification that are not listed above.

Procedures for Modification

Local WDB initiated modification:

1. Local WDB must inform DWD-DET's contract manager, in writing, regarding the modification being requested.
2. The modification request will be reviewed at DWD-DET.
3. Upon approval, new grant agreements will be drafted and sent to the board for signature.
4. COMET will be updated after the modified grant agreement has been signed.

DWD-DET initiated modification:

1. DWD-DET will notify the local WDBs if a modification is necessary.
2. DWD-DET will draft the modified grant agreements and send them out to the local WDB for review and signature.
3. COMET will be updated after the modified grant agreement has been signed.

* Transfer modification follow a separate procedure, please refer to policy section 3.3 Transfer of Funds.

3.3.1 Transfer of Funds

Effective date: November 6, 2024

Background

The local Workforce Development Boards (WDBs) may transfer up to 100 percent of formula funds of a program year allocation between the Adult Program and the Dislocated Worker Program.¹ DWD-DET is extending the full transfer authority afforded by WIOA to the local WDBs, to ensure the WDBs have maximum flexibility to best serve participant populations with the greatest needs.

Commencing with the Program Year (PY) 24 allotments, Adult and Dislocated Worker funds can be utilized interchangeably; however, the funding source remains with the original allocation as outlined in the Department of Labor (DOL) ETA-9130 (D) - Local Adult² and ETA-9130 (F) - Local Dislocated Worker³ guidelines. The interchangeable use of funds will not result in modified contracts however these must be reported under the line in COMET.

Approval of Transfer Request

The local WDB initiates the transfer request by emailing a completed form to DET-BWT Financial Managers. The request must be made DWD-DET at least 30 calendar days before the end of the grant period.

The local WDB should take the following into consideration in making the request:

• Expenditures and obligations for the Adult Program and Dislocated Worker Program year formula funds;
• Availability of funds for both formula programs, including carry-in funding from the prior program year;
• The quarter of the grant period in which the request is made;
• Availability of Rapid Response⁴ and National Dislocated Worker Grant⁵ funding;
• Total enrollments in both Adult and Dislocated Worker formula programs;
• Total training enrollments in both formula programs;
• Applicability of Trade Adjustment Assistance certifications in the local area; ⁶
• Impact on the WIOA primary indicators of performance; and
• Implications for Rapid Response and National Dislocated Worker Grant funding.

DWD-DET will review the request and issue a determination within 30 days.

• ¹ WIOA Sec. 133(b)(4); 20 CFR § 683.130
• ² ETA-9130(D)-Local Adult
• ³ ETA-9130(F)-Local Dislocated Worker
• ⁴ WIOA Sec. 113(a)(2)
• ⁵ WIOA Sec. 170
• ⁶ WIOA Sec. 116(b)(2)

3.4.1 Grant Termination

Effective date: June 19, 2020

Background

Termination means the ending of a federal award, in whole or in part, at any time prior to the planned end of period of performance.¹

Reasons for Termination

The federal award may be terminated, in whole or in part, as follows:

1. By DOL or DWD-DET, if a local WDB fails to comply with the terms and conditions of a federal award;
2. By DOL or DWD-DET for cause, which may include, but is not limited to:
   
   • Local WDB has inadequate administrative, program or financial systems.
   • Local WDB violates the Local Plan or regulations and correction action is not taken.
   • Local WDB is not in compliance with plan objectives, modifications, additional conditions or budget requirements.
3. By DOL or DWD-DET with the consent of the local WDB in which case the two parties must agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated; or
4. By the local WDB upon sending a written notice to DWD-DET at least 30 calendar days in advance of the intended date of termination.

Notice of Termination

If the grant is terminated due to reasons outlined in section A and B under Reasons for Termination in this policy, then DWD-DET will provide a written notice to the local WDB stating that a grant termination will occur if the local WDB is not able to cure the breach of the grant within 30 calendar days of receiving this notice.

If the grant is terminated due to reasons outlined in section C and D under Reasons for Termination in this policy, then DWD-DET will provide a written notice to the local WDB stating that a grant termination will occur.

If the grant is terminated due to the local WDB's material failure to comply with federal statutes or regulations; or the terms and conditions of the Federal award, the notification of termination will state the following:²

• The termination decision will be reported to DOL's performance and integrity system, known as SAM. The local WDB may comment on any information the SAM system contains about the local WDB for future consideration by federal awarding agencies. Federal awarding agencies will consider local WDB comments when determining whether the local WDB is qualified for a future federal award;
• Information reported in the SAM system will be retained for a period of five years from the date of the termination, then archived;
• Federal awarding agencies that consider making a federal award to the local WDB during that five-year period must consider this information when judging whether the local WDB is qualified to receive the federal award, when the federal share of the federal award is expected to exceed the simplified acquisition threshold over the period of performance;³

When a federal award is terminated or partially terminated, both DWD-DET and the local WDB remain responsible for compliance with the requirements in policy section 3.5 Grant Closeout.

Appeal Procedures

The grantee will be provided an opportunity to appeal any termination action. The appeal process is outlined in the Wisconsin State Plan.

• ¹ 2 CFR § 200.95
• ² 2 CFR § 200.340
• ³ 2 CFR § 200.212

3.5.1 Grant Closeout

Effective date: October 12, 2019

Background

Recipients and subrecipients of DOL grant awards are responsible for developing a closeout process that will be used to close out their sub-awards and contract agreements. In accordance with the requirements of Uniform Guidance Section 200.343, this policy addresses the steps DWD-DET will take in order to close out a grant agreement. The WIOA closeout period refers to the 60-day period after a grant agreement has reached its term end date or its funding has been fully utilized.

The purpose of the financial reconciliation/closeout is to ensure allowable reportable costs and payments are equal.

Closeout Procedures

To closeout a grant effectively and to avoid cost overruns and deficits, DWD-DET has established the following procedures:

1. A final expenditure report must be submitted in COMET within 60 calendar days of the grant end date.
2. Unless authorized by DWD-DET, subrecipients must liquidate all accruals incurred under DWD-DET's award(s) no later than 60 calendar days following the expiration of the grant term.
3. A final invoice must be submitted to DWD-DET for any cash requests within 60 calendar days of the grant end date.
4. Program income earned shall be fully expended or remitted to DWD-DET.
5. DWD-DET will review each grant during the WIOA closeout period or once funding has been fully utilized and determine:
   
   1. Total expenditures reported in COMET
   2. Percentage of Administrative funds spent in relation to Program funds where applicable
   3. Reporting and performance of memo line activities
   4. Total cash requested in STAR
   5. Purchase Order balances
   6. Any un-obligated funds
6. DWD-DET Contract Manager will initiate closeout procedures with all subrecipients by sending a closeout packet for review.
7. Subrecipients must terminate all activities and reconcile all financial activity related to the grant/award prior to closing the grant with DWD-DET.
8. Boards must review the closeout packet and reconcile with their records
   
   1. If reconciliation ties out, the subrecipient must sign the grant closeout worksheet and return it to DWD-DET Contract Manager along with the General Ledger Trial Balance report within five (5) business days of receiving the closeout packet.
   2. If a discrepancy is noted, the subrecipient must respond to DWD-DET within 10 business days providing details and supporting documentation regarding the discrepancy.
9. All refunds due to DWD-DET must be made before the closeout or submitted with the closeout packet within the five (5) business days timeframe.

Closeout Packet

The closeout packet will include:

1. Grant Closeout Worksheet
2. STAR Payment Confirmation Report
3. STAR Purchase Order Balance Report
4. COMET Expenditure Report

Post Closeout

The closeout of an award does not affect the following:

1. The right of DWD-DET to disallow costs and recover funds on the basis of a later audit or other review.
2. The obligation of the grant recipient to return any funds due as a result of later refunds, corrections, or other transactions.
3. Record retention requirements.

DWD-DET will not be liable for any costs the subrecipient failed to pay before the closeout date. Additionally, DWD-DET will not be liable for any late claims received by subrecipients. DWD-DET will not have funds available for those claims.

The subrecipient shall ensure that all program/grant liabilities are paid before the closeout date. No unpaid bill can be paid with the federal funds after closeout. Any such bills will have to be paid by the subrecipient from other non-federal funds.

3.6.1 Implementing a Waitlist

Effective date: May 13, 2021

Local WDBs may periodically need to implement a waitlist for a WIOA Title I Program. A waitlist can be used either for program-eligible individuals waiting to enter into a program or for existing program participants waiting to receive direct cost services.

Note: Career planners may not deny an individual the opportunity to apply to a WIOA Title I Program,¹ even if a waitlist is in place.

Before a local WDB may implement a waitlist for a Title I Program, DWD-DET requires the local WDB to inform its Local Program Liaison (LPL) in writing about its plan to implement a waitlist, including:

• whether the waitlist is for program entry or services;
• the reason for the waitlist (e.g., limited funds);
• the anticipated duration of the waitlist;
• the total number of active participants currently being served, excluding those participants who are receiving follow-up services only; and
• the number of potential participants and/or current participants who will be waitlisted at the time the list is implemented; and
• its local policies and procedures for handling waitlists, that address, at minimum, failed contact attempts with individuals on the waitlist.

DWD-DET will review the local WDB's plan in order to assess whether other options are available. While DWD-DET may recommend other options, the decision to use a waitlist is at the discretion of the local WDB. A local WDB with a waitlist in place must notify its Local Program Liaison when the waitlist is lifted.

• ¹ 29 CFR §§ 38.4, 38.5, 38.6(b)(5), & 38.41 combine to require that applicants must not be discriminated against on the basis of race, color, religion, sex, national origin, age, disability, political affiliation or belief, citizenship, or participation in any WIOA Title I-financially assisted program or activity. An "applicant" is an individual who is interested in being considered for WIOA Title I assistance. To ensure that discrimination does not occur, recipients of WIOA funding must maintain records on the race/ethnicity, sex, age, and disability status of every applicant. See also 81 FR 56113.

3.6.2 Serving Individuals on Waitlists

Effective date: May 13, 2021

There are two scenarios for individuals on waitlists:

1) Individuals who are on a waitlist for program entry:

A career planner must enter an individual into ASSET and complete an Eligibility Determination service prior to placing them on a waitlist for program entry. The career planner must check the "Reportable Individual" checkbox and check "yes" for Eligible in the Eligibility Determination service details screen. This will disable the requirement for the career planner to complete all the required fields in the ASSET Manage Program tab and allow non-participation causing services to be recorded. The career planner must indicate in an ASSET case note that the individual is on a waitlist for program entry.

If an individual remains on the waitlist for program entry and does not receive a participation-causing service for over 90 days, ASSET will close the individual's episode. If this happens, the career planner must submit a staff request to their LPL to reopen the episode when the career planner is ready to take the individual off of the waitlist. The staff request must include a new participation-causing service for the individual and information for all ASSET-required fields for the new service. The ASSET Administrator handling the staff request will input the new service at the time they reopen the episode. This is important because a new participation-causing service must be entered on the same day that the episode is reopened, otherwise ASSET will automatically close the episode again as part of the nightly system updates.

DWD-DET strongly encourages staff to contact individuals on a program entry waitlist at least once every 90 days to confirm they remain interested in the program; it may be helpful to record the results of the contact in an ASSET case note.

2) Participants who are on a waitlist for specific services:

If a program participant is on a waitlist for specific Title I services (e.g., training), DWD-DET requires that staff provide them with an IEP or ISS Review service at least once every 90 days in order to confirm that the services the participant is waiting for are still appropriate for their needs and goals. This will also ensure that ASSET will not close the participant's episode while they are the waitlist.

4.2.1 Standards for Financial Management System

Effective Date: March 1, 2022

Background

This policy specifies the minimum requirements that must be maintained by subrecipients of WIOA Title I funds for their financial management system.

Financial systems must allow for effective fiscal and internal controls and accountability for funds, property, and other assets to ensure they are used solely for the authorized purposes. All subrecipients must maintain all data elements used in required federal reports in accordance with established program definitions contained in the Act, regulations, and state policies.¹

Financial Management System Reqirements

1. Financial Management System
   Financial Management System must meet and follow the current Generally Accepted Accounting Principles (GAAP) and demonstrate compliance with legal and contractual requirements.
   Financial Management System shall provide accurate, current, and complete disclosures of all expenditures including but not limited to those from grants, contracts, or agreements. The costs must be traceable to a level of detail that establishes compliance with WIOA applicable laws and regulations.²
   Financial Management System shall follow consistent rules for aggregation of detailed data to summary level:
   • Accounting Systems will compare budgeted amounts to actual expenditures including proper charging and classification.³
   • Information pertaining to subgrant and contract awards, obligations, unobligated balances, assets, liabilities, expenditures, income, program income, matching and stand-in costs.⁴
   • Allow for the tracking of funds to a level of expenditure adequate to establish that funds have not been used in violation of the WIOA.⁵
2. Records
   Records should identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.⁶
3. Internal Controls
   Effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes.⁷
4. Cash Management
   Procedures for minimizing the time elapsing between the receipt of funds from DWD and disbursement of those funds must be followed very strictly. Cash drawdowns must be made as close as possible to the time of making disbursements, and Subrecipients must monitor cash drawdowns by their subrecipients to minimize cash on hand and ensure they conform to the same standards of timing and amount as that of Subrecipients.⁸ Also see policy 4.4 Cash Management and Invoicing Standards.
5. Allowable Cost
   Written procedures for determining the allowability of costs in accordance with UG Cost Principals and the terms and conditions of the Federal award. Costs must be necessary and reasonable for proper and efficient administration of grant funds. Applicable OMB cost principles, agency program regulations, and the terms and conditions of grant and subgrant agreements must be adhered to in determining the reasonableness, allowability, and allocability of costs.⁹
6. Financial Reporting
   All costs reported against grant funds must be traceable to the accounting records and be allowable costs according to GAAP and the financial reporting requirements of the grant or subgrant.
7. Reports
   Accurate, current and complete disclosure of the financial results of each grant in accordance with the reporting requirements set forth in Policy 4.3 Reporting Requirements. DET requires reporting on an accrual basis. The grantee is not required to establish an accrual accounting system but shall develop such accrual data for its reports on the basis of an analysis of available documentation.¹⁰

Subgrantee Systems

Each grantee must ensure that the financial management systems of their subgrantees meet the above listed standards.

Failure to Meet Standards

If the grantee's financial management system fails to meet the standards set forth in this section, DET will require corrective action by a specific date. Grantees who fail to take corrective action in the time given are subject to having costs withheld or disallowed.

• ¹ 2 CFR § 200.302 (a)
• ² 2 CFR § 200.302 (a)
• ³ 2 CFR § 200.302 (b)(5)
• ⁴ 2 CFR § 200.302 (b)(3)
• ⁵ 2 CFR § 200.302 (a)
• ⁶ 2 CFR § 200.302 (b)(3)
• ⁷ 2 CFR § 200.302 (b)(4)
• ⁸ 2 CFR § 200.302(b)(6) & 200.305(b)
• ⁹ 2 CFR § 200.302 (b)(7) & 2 CFR § 200.403(a)
• ¹⁰ 2 CFR § 200.302 (b)(2)

4.4.1 Cash Management and Invoicing Standards

Effective Date: August 1, 2024

Background

There is a strong emphasis in Uniform Guidance on having a cash management system in place to accurately track the receipt, disbursement and recording of funds between the awarding agency and grant recipient.¹ This policy specifies the minimum requirements for cash management and provides guidelines for the reimbursement of Workforce Innovation and Opportunity Act (WIOA) funds from the Department of Workforce Development (DWD).

Cash Management

The local Workforce Development Board (WDB) must have a written cash management policy and/or procedures that minimally address the following:

1. Adequate internal controls² to safeguard cash and cash equivalent assets.³
   1. Cash equivalent assets include, but are not limited to:
      1. ATM PINs & PINs to checking accounts
      2. Passwords to sensitive accounts
      3. Credit Cards and/or Gas Cards
      4. Debit Cards
      5. Purchase Cards
      6. Blank check stock
      7. Check-signing machines
      8. Bus tokens and passes
      9. Gift Cards
   2. For more information regarding internal controls, please visit: https://www.coso.org/guidance-on-ic
2. Recovering improper payments. The costs incurred by a non-Federal entity to recover improper payments are allowable as either direct or indirect costs, as appropriate.⁴
   1. Improper payments⁵ include but are not limited to:
      1. Over-payments to subawards and contractors
      2. Disallowed costs
      3. Participant payments erroneously awarded
      4. Uncollected tuition refunds
      5. Double payments
      6. Payments paid at the wrong rate
      7. Unauthorized charges on fees and penalties paid in error
      8. Overpayments on blanket P.O.s
3. Cash Forecasting Method. Mechanism or tool used by the local WDB to determine the amount of cash to draw.
4. Payment of non-sufficient funds, overdraft fees, and other penalties which cannot be paid using Federal Funds.⁶
5. Reconciliation. Reconciliation must be performed between the cash drawdowns and the expenditures on an individual grant basis, monthly. Local WDBs must separately account for receipt, obligation, and expenditure of funds by award or fund source.
6. Authorized individuals and separation of duties. Sufficient internal controls must be in place to ensure proper segregation of duties for the following functions: recording, custodian, authorizing, and reconciliation of funds.⁷
7. Accounting Records. Records relevant to drawdowns and supporting documentation must be retained by the WDB or the WDB's fiscal agent.⁸

Invoicing Standards

Cash requests are to be made on a per Purchase Order (PO) number basis. An invoice may reference more than one PO number if there is a need to correct a prior invoice payment for an open PO. The total invoice amount must be equal to or greater than $0.00. Emphasis must be placed on minimizing the time between the transfer of funds from DWD-DET and the disbursement of funds to pay allowable costs.⁹

To request cash, a supplier must complete the Supplier Request for Payment Invoice Form and supply documentation to substantiate their cash drawdown request. This documentation must reconcile with the total amount of cash being requested, and may include, but is not limited to the following:

1. Accounting records such as general ledger, trial balance, and/or payroll ledger.
2. Accrued expenditure documentation detailing the following:
   1. Wages and salaries earned but not paid
   2. Invoices received but not paid
   3. Subrecipient accrued expenditure reports received but not paid
   4. Payments earned on an OJT contract as of the end of a month but not yet due or paid to the employer)

All documentation must be emailed to DWDDETInvoicing@dwd.wisconsin.gov.

The following may result in delayed payment:

1. Incomplete and/or inaccurate cash requests, including, but not limited to, requests lacking sufficient documentation and/or requests where the documentation provided does not reconcile with the total amount of cash requested.
2. Late submissions of required Financial Status Reports (FSRs) for two or more consecutive months.
3. Conditions of persistent non-compliance.

Invoices are typically processed by DWD Accounts Payable within 2-3 business days of approval by DWD-DET.

• ¹ 2 CFR § 200.302
• ² 2 CFR § 200.1 “Internal controls”
• ³ 2 CFR § 200.303(a)
• ⁴ 2 CFR § 200.428
• ⁵ 2 CFR § 200.1 “Improper payment”
• ⁶ 2 CFR § 200.441
• ⁷ 2 CFR § 200.303
• ⁸ 2 CFR § 200.302(b)
• ⁹ 2 CFR § 200.305(b)

4.6.1 Program Income

Effective date: December 13, 2020

Background

Program income is gross income earned by the non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance.¹

Program income does not increase the amount of the funds that were authorized for the subaward. It is considered additional revenue available for use in support of the allowable subaward activity.

Program income must be expended on allowable subaward activities. It is subject to all WIOA requirements, except for the administrative cost limitations.

Types of Program Income

Program income includes, but is not limited to, income from the following:

1. Fees for services performed²
2. The use or rental of real or personal property acquired under the grant funds³
3. The sale of commodities or items fabricated under a federal award⁴
4. License fees and royalties on patents and copyrights⁵
5. Interest earned on funds received under WIOA⁶
6. Any excess of revenue over costs incurred for services provided⁷
7. Fees from employers to use services, faculties or equipment⁸

Program income does not include the following:

1. Interest earned on advances of federal funds⁹
2. Rebates, credits, discounts, any other interest earned on them¹⁰
3. Proceeds from the sale of real property, equipment, or supplies¹¹
4. Taxes, special assessments, levies, fines, and other such revenues raised by a subrecipient¹²
5. Income earned after the period of subaward performance¹³

Accounting for Program Income

The deduction method, described at 2 CFR 200.307¹⁴ and required by Appendix A: WIOA Award Terms and Conditions , must be used for all program income earned under WIOA. Deduction method means ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the federal awarding agency authorizes otherwise. Program income that the non-federal entity did not anticipate at the time of the federal award must be used to reduce the federal award and non-federal entity contributions rather than to increase the funds committed to the project. The non-federal entity must disburse funds available from program income earned on such funds before requesting additional cash payments.¹⁵

If the program income is not utilized in the grant period, it must be returned to DWD.¹⁶

Reporting of Program Income

The local Workforce Development Board (WDB) must ensure that subrecipients and subcontractors are aware that all program income must be accounted for and reported to the local WDB. The local WDB must record all program income and report it to DWD on the monthly Financial Status Reports within COMET. Program income expense and revenue must be reported on separate lines in the Financial Status Report. Any cash-on-hand from program income must be liquidated before the WDB may request additional WIOA cash for any purpose.

• ¹ 2 CFR § 200.80
• ² 2 CFR § 200.80
• ³ 2 CFR § 200.80
• ⁴ 2 CFR § 200.80
• ⁵ 2 CFR § 200.80
• ⁶ 2 CFR § 200.80
• ⁷ 2 CFR § 200.80
• ⁸ 20 CFR § 683.200(C)(9)
• ⁹ 2 CFR § 200.80
• ¹⁰ 2 CFR § 200.80
• ¹¹ 2 CFR § 200.307
• ¹² 2 CFR § 200.307
• ¹³ Appendix A: WIOA Award Term and Conditions
• ¹⁴ 2 CFR § 200.307
• ¹⁵ 2 CFR § 200.305(b)(5)
• ¹⁶ Appendix A: WIOA Award Term and Conditions

4.10.1 Audit and Audit Resolution

Effective date: May 1, 2024

Background

A local Workforce Development Board (WDB) or subrecipient¹ organization that expends $750,000 or more in federal funds during its fiscal year to operate one or more programs must have a single or program-specific audit conducted. Any local WDB or subrecipient organization that expend less than $750,000 of federal funds in a year is exempt from the audit requirements for that year, but records must be available for review or audit by appropriate officials of the federal agency or pass-through entity.²

Audit Requirements

Subrecipients that are units of government or nonprofit organizations that expends $750,000 or more in federal funds during its fiscal year to operate one or more programs must have a single or program-specific audit that:³

• Is on an annual basis, coinciding with the subrecipient's normal fiscal year.
• Is an agency-wide audit that includes financial and compliance coverage of the DWD-DET programs within its scope; and
• Complies with Uniform Guidance.

Auditee Responsibility

An auditee may simultaneously be a recipient⁴, a subrecipient, and a contractor⁵ depending on the substance of its agreements with Federal awarding agencies and pass-through entities.

The responsibilities of a local WDB or a subrecipient organization as an auditee are as follows:

• The local WDB or subrecipient organization must procure the services of an auditor in accordance with local WDB procurement policies and Uniform Guidance procurement standards.⁶
• The local WDB or subrecipient organization must prepare its financial statement in compliance with Audit Requirements⁷ as outlined in the Uniform Guidance.⁸
• The local WDB or subrecipient organization must follow up on any audit findings.^{9 10}
• The local WDB must have an audit conducted within 9 months from the end of a fiscal year.¹¹
• The local WDB must ensure that its subrecipients are conducting annual fiscal audits.¹²
• Audits performed under these guidelines are due to DWD-DET nine months from the end of the fiscal period or 30 days from completion of the audit, whichever is sooner.¹³
• Single audit must be conducted using the scope established in Uniform Guidance.¹⁴
• An auditor's report must be designed using the criteria established in Audit Requirements as outlined in the Uniform Guidance.¹⁵

Audit Submission To The Granting Agencies

All local WDBs are required to submit completed audit reports¹⁶ to DWD-DET nine months from the end of the fiscal period or 30 days from completion of the audit, whichever is sooner.¹⁷

Audit reports are to be submitted via email to: finance@dwd.wisconsin.gov

If there are no findings in the audit reports and no further action is required, DWD-DET will issue a closeout letter.

If there are findings in the audit report related to WIOA, DWD-DET will follow the Audit Resolution process stated below.

DWD-DET Audit Resolution Process

The submission of a local WDBs final Audit Report which contains findings initiates DWD-DET's audit resolution process. Upon receipt of the audit report, DWD-DET will issue a letter to the subrecipient indicating the corrective action¹⁸ needed. The subrecipient will have 30 days to respond to this letter. Based on the subrecipient's response to the corrective action letter, DWD-DET will issue a Statement of Findings and Determinations. Any debts due to audit disallowance are established at this point.

Stand-In Costs

During the audit resolution process, the auditee may propose the use of stand-in costs to substitute for the disallowed costs¹⁹. The use of stand-in costs is an audit resolution activity. Stand-in costs are usable as substitutes for unallowable costs identified in an audit report. Stand-in costs result when an Operators and Service Providers expend non-federal funds on WIOA programs. To be considered, stand-in costs must be incurred for allowable WIOA costs that were reported as uncharged WIOA program costs, included within the scope of the audit, and accounted for in the auditee's financial system. The stand-in cost must have been expended in support of the same title and program year as the costs they propose to replace, and the costs must not cause a violation of the cost limitations and requirements.²⁰ Stand-in costs must be actual expenses paid with nonfederal funds. Cash match in excess of the required match may also be considered for use as stand-in costs.

Subrecipient Audit Resolution

Federal awards expended as a recipient or subrecipient are subject to audit requirements.²¹

All local WDBs must obtain and review the audit report of their subrecipients to ensure compliance with the requirements of the Uniform Guidance. The local WDB must have an audit resolution process in place for its subrecipients.²² The audit and audit resolution process for subgrantees is independent of the process between DWD-DET and subrecipients.

Local WDBs must:

• Verify subrecipients meet audit requirements.
• Prepare management decisions²³ on subrecipient audit findings.²⁴
• Pursue debt collection.²⁵

DWD-DET Reviews

In addition to the required annual audits, DWD-DET subrecipients shall be subject to preliminary fiscal reviews, financial and compliance audits. DWD-DET reserves the right to conduct other audits and investigations in accordance with applicable federal and state laws or regulations.

Audit Costs

The DWD-DET subrecipient shall be responsible for the cost of the audit.

• ¹ 2 CFR 200.1 “Subrecipient”
• ² 2 CFR 200.501(d)
• ³ 2 CFR 200.501(a)
• ⁴ 2 CFR 200.1 “Recipient”
• ⁵ 2 CFR 200.1 “Contractor”
• ⁶ 2 CFR 200.508(a)
• ⁷ 2 CFR 200.501
• ⁸ 2 CFR 200.510
• ⁹ 2 CFR 200.1 “Audit finding”
• ¹⁰ 2 CFR 200.511
• ¹¹ 2 CFR 200.507(c)(1)
• ¹² 20 CFR 683.210(b)
• ¹³ 2 CFR 200.512(a)(1)
• ¹⁴ 2 CFR 200.514
• ¹⁵ 2 CFR 200.515
• ¹⁶ 2 CFR 200.512(c)
• ¹⁷ 2 CFR 200.512(a)(1)
• ¹⁸ 2 CFR 200.1 “Corrective action”
• ¹⁹ 2 CFR 200.1 “Disallowed costs”
• ²⁰ 2 CFR 200.403
• ²¹ 2 CFR 200.501(f)
• ²² 20 CFR 683.420(a)(1)(i)
• ²³ 2 CFR 200.521
• ²⁴ 2 CFR 200.521(c)
• ²⁵ 20 CFR 683.420(a)

4.15.1 Leveraged Resources

Effective date: December 13, 2020

Background

Leveraged resources are all resources used to support WIOA Title I-B grant activities and grant outcomes, whether or not those resources meet the standards required of allowable match. Leveraged resources can be either:

• Allowable Match;
  or
• Non-Match.

Allowable Match

Match is defined as additional funds expended to support grant objectives when required either by statute or in the Funding Opportunity Announcement (FOA) as a condition of the award.¹

For all federal awards, any shared costs or matching funds and all contributions, including cash and third-party in-kind contributions, must be accepted as part of the non-federal entity's cost sharing or matching when such contributions meet all of the following criteria:²

1. Are verifiable from the non-federal entity's records;
2. Are not included as contributions for any other federal award;
3. Are necessary and reasonable for accomplishment of project or program objectives;
4. Are allowable under Subpart E—Cost Principles of this part;
5. Are not paid by the federal government under another federal award, except where the federal statute authorizing a program specifically provides that federal funds made available for such program can be applied to matching or cost sharing requirements of other federal programs; and
6. Conform to other provisions of this part, as applicable.

Match must be spent on allowable activities.³ Non-federal entities can only account for funds used for cost sharing or match when they are expended.⁴

Types of Match

1. Cash
   Cash match reflects additional funds or services (allowable costs) provided and paid for by the grantee and/or any subrecipient from non-federal funds that support the grant objectives and outcomes. Cash match includes unreimbursed allowable indirect costs. Cash match is valued as the actual costs incurred as reflected in the grantee's/subrecipient's accounting system.
2. In-Kind
   In-kind contributions are the non-cash contributions that benefit a federally assisted project or program and are contributed by non-federal third parties, without charge, to a non-federal entity under a federal award.⁵

Value of In-Kind Contributions

In-kind contributions must be valued consistent with 2 CFR § 200.306. Refer to U.S. Department of Labor Leveraged Resources Guidance for further clarification.

Types of Non-Match

The following cannot be used as Match however may be counted towards Leverage.

1. Non-federal share of funds used for grant purposes
2. Paid with federal funds (unless authorized by the program statute)
3. Used as match in another federal program

At this time, none of the federal statutes for programs currently administered by Department of Labor- Employment and Training Administration specifically allows the use of its funds as match for another federal program.⁶

Leveraged Resource Methodology

Local WDBs must have written policy and/or procedures defining how leverage is calculated.

Local WDBs must maintain records that support the cash match costs and be available for audit and review. For third party contributions, support for the value must be verifiable from sub-grantee records or be maintained by the grantee, including the methods used to determine the value.

Types of Leveraged Resources

Examples of LR activities include, but are not limited to:

• Training
• Tuition grants
• Other job readiness activities and services
• Grants or matching funds for certification fees
• Grants for tools or other required, job-specific supplies
• Donated supplies, personnel services, equipment, or space

Types of Funding Sources for Leveraged Resources

Examples of LR funding sources include, but are not limited to:

• Federal Pell Grants
• Public programs authorized by WIOA
• Trade Adjustment Assistance (TAA) program
• Department of Labor National Emergency Grants
• Wisconsin State funding

Leveraged Resource Reporting

Local WDBs must report all leveraged resources on the monthly financial status report in Contract Management and Expenditure Tracking (COMET) for the life of the grant.

• ¹ 2 CFR § 200.29
• ² 2 CFR § 200.306(b)
• ³ 2 CFR § 200.306(b)(4)
• ⁴ 2 CFR § 2900.8
• ⁵ 2 CFR § 200.96
• ⁶ 2 CFR § 200.306(b)(5)

4.16.1 Overview

Effective Date: January 1, 2023; Compliance will be evaluated beginning with PY2023 funding allocations

The Workforce Innovation and Opportunity Act (WIOA) is designed to help job seekers and workers, particularly those with barriers to employment, enter and/or advance in the labor market.¹ WIOA also serves to match employers with the skilled workers they need to compete in the global economy.² These purposes are accomplished through the provision of career, training, and supportive services to Adult and Dislocated Worker Program participants, and the provision of the 14 program elements to Youth Program participants.

The purpose of this expenditure goal is to ensure that a reasonable amount of WIOA funding is spent on direct-to-participant costs, including, but not limited to, training-related expenses and supportive services. Providing ample financial supports will serve to improve participant outcomes and overall program success.

• ¹ WIOA Sec. 2(1)
• ² WIOA Sec. 2(3)

4.16.2 Requirements for the 35% Expenditure Goal

Effective Date: January 1, 2023; Compliance will be evaluated beginning with PY2023 funding allocations

Local Workforce Development Boards (WDBs) should spend at least 35% of their annual formula program funding allotment¹ for each of the Adult, Dislocated Worker, and Youth programs on direct-to-participant costs. Meeting this goal will ensure that program resources are focused on successfully preparing participants to enter and/or advance in the workforce. This will also allow participants to access the financial supports necessary for them to participate in program services and activities reasonably and successfully without incurring debt.

WDBs may include in the direct cost services calculation all expenditures paid directly to, or on behalf of, a participant, such as:

• tuition and other training-related costs,
• supportive service costs, including needs-related payments,
• youth incentive payments, and
• costs for career services and youth program elements paid directly to, or on behalf of, a participant, such as wages for work experiences² and/or transitional jobs, costs related to an out-of-area job search, or costs associated with relocation.

The 35 percent expenditure goal is calculated using only programmatic funding. Neither the numerator nor the denominator of this calculation includes administrative costs.

Programmatic costs that fund staff wages and benefits for the coordination of such services³ shall not be included in the numerator of this calculation.

• ¹ This does not include administrative funds.
• ² This differs from the expenses allowable when calculating the 20 percent expenditure requirement for youth work experience, which allows the inclusion of staff costs for certain work experience related activities.
• ³ DWD-DET considers such activities to be "case management" and does not consider "case management" to be a direct participant cost.

4.16.3 Reporting Requirements

Effective Date: January 1, 2023; Compliance will be evaluated beginning with PY2023 funding allocations

Local WDBs shall maintain accounting records to accurately identify and account for the 35% direct-to-participant costs expenditures. WDBs must report the costs they count toward the 35% expenditure goal monthly in the Contract Management and Expenditure Tracking (COMET) System as memo activities. These costs should be reported in COMET at the time they are incurred.

NOTE: A participant does not have to complete the related service for the associated costs to count toward the goal.

To evaluate achievement of this goal, the amounts reported in COMET will be compared to total program expenditures over the life of each grant (e.g., the PY21 Adult and Dislocated Worker formula allocations). In the event that funds are transferred between programs, the 35% goal will be evaluated against the modified grant amounts.

4.16.4 Monitoring Implications

Effective Date: January 1, 2023; Compliance will be evaluated beginning with PY2023 funding allocations

As this is a goal, and not a requirement, DWD-DET will not apply sanctions to local WDBs that do not meet the goal. However, the local WDB's progress toward achieving the goal will be evaluated during DWD-DET's annual coordinated monitoring. In cases where the goal is not met, or satisfactory progress toward achieving the goal in a given program year is not realized, DWD-DET will identify this as an area of concern. The local WDB will be asked to provide an explanation of the factors impacting spending on direct cost services and any actions taken to increase spending. DWD-DET may require that WDBs and their service providers participate in mandatory technical assistance to identify and/or develop strategies to increase spending on direct-to-participant costs.

4.17.1 Expenditure Requirement for Out-of-School Youth

Effective date: October 1, 2024

Local WDBs must expend at least 50 percent of their annual WIOA Youth formula allocation on youth workforce investment activities for out-of-school youth (OSY) during the two-year grant period.¹ Local WDB administrative expenses are not included in the 50 percent OSY minimum expenditure calculation; therefore, the local WDB's OSY expenditure rate is calculated after subtracting funds spent on administrative costs.²

The 50 percent OSY expenditure requirement also applies to statewide youth activities.³ Only statewide funds spent on direct services to youth are subject to the OSY expenditure requirement.⁴ Demonstration projects related to meeting the education and employment needs of eligible youth are an allowable statewide activity and youth participating in such demonstration projects would be considered receiving direct services from statewide funds.⁵

Special Waiver Note: DOL has approved a waiver for Wisconsin that lowers the minimum Youth Program expenditure requirement for OSY to 50 percent. This waiver is effective for Program Years 24 and 25, ending June 30, 2026.

Costs associated with the following statewide activities are not subject to the OSY expenditure requirement:

• state administrative activities⁶
• self-service activities (such as job searches, career exploration, or use of career center resources)⁷
• providing assistance to local areas on redesignation of local areas and/or regional planning ⁸
• providing additional assistance to local areas that have high concentrations of eligible youth⁹
• monitoring and oversight activities¹⁰
• providing technical assistance¹¹
• conducting evaluations for accountability measures and program effectiveness¹²
• disseminating a list of eligible providers¹³
• operating a fiscal and management accountability information system¹⁴

The OSY expenditure rate for statewide funds is calculated after subtracting funds that are not spent on direct services to youth.¹⁵

Note: States and local areas may choose to spend up to 100 percent of their WIOA youth funds on OSY.¹⁶

• ¹ WIOA Sec. 129(a)(4)(A); 20 CFR §681.410. DOL approved a waiver request from DWD-DET to allow the statutory 75 percent minimum be lowered to 50 percent.
• ²TEGL 23-14, p. 4
• ³20 CFR §681.410
• ⁴20 CFR §681.410(a)
• ⁵TEGL 21-16, p. 9
• ⁶20 CFR §681.410(a); TEGL 23-14, p. 3
• ⁷TEGL 21-16, p. 9
• ⁸WIOA Sec. 129(b)(1) and 106(b)(6) and 106(c)(2); TEGL 21-16, p. 9
• ⁹WIOA Sec. 129(b)(1); TEGL 21-16, p. 9; DOL explains in 81 FR 56190 that the specific additional assistance needed is likely to vary from local area to local area. DOL defines it as assistance that "might be provided in the areas of program design, partnering, resource sharing, and other areas." DOL does not specifically address the 50 percent OSY expenditure requirement as it relates to direct services provided through additional assistance. DWD-DET will consider direct services provided through additional assistance to local areas with high concentrations of eligible youth as subject to the expenditure requirement.
• ¹⁰WIOA Sec. 129(b)(1); 20 CFR §681.410(a)
• ¹¹20 CFR §681.410(a)
• ¹²WIOA Sec. 129(b)(1); TEGL 21-16, p. 9
• ¹³WIOA Sec. 129(b)(1); TEGL 21-16, p. 9
• ¹⁴WIOA Sec. 129(b)(1); TEGL 21-16, p. 9
• ¹⁵TEGL 23-14, p. 4
• ¹⁶TEGL 23-14, p. 3

4.17.2 Expenditure Requirement for Youth Work Experience

Effective date: March 1, 2023

Local WDBs must expend at least 20 percent of their annual WIOA Youth formula allocation on paid and unpaid work experiences for in-school youth (ISY) and out-of-school youth (OSY) during the two-year grant period.¹ Local WDBs cannot count leveraged resources toward this expenditure requirement.²

Program expenditures that count towards the minimum 20 percent are as follows:

• wages and any fringe benefits paid to youth for participation in a work experience;
• staff costs (including wages and fringe benefits) for identifying and developing work experience opportunities;
• staff costs (including wages and fringe benefits) for managing and evaluating work experiences;
• work experience orientation sessions for participants and/or employers;
• classroom training or other required academic education components for participants that are directly related to the work experience;
• activities to help youth prepare for a work experience;
• incentive payments directly tied to the completion of work experience;³ and
• supportive services that enable youth to participate in training.⁴

Local WDB administrative expenses are not included in the 20 percent work experience expenditure calculation; therefore, the work experience expenditure rate is calculated after subtracting funds spent on administrative costs.⁵

• ¹WIOA Sec. 129(c)(4); 20 CFR §681.590
• ²81 FR 56184; TEGL 21-16, p. 15
• ³20 CFR §681.590(b); TEGL 8-15, p. 7; TEGL 21-16, p. 15
• ⁴TEGL 09-22, page 5
• ⁵20 CFR §681.590(b)

4.17.3 Reporting Requirements

Effective date: October 1, 2024

Local WDBs must maintain accounting records to accurately identify and account for the two Youth Program expenditure requirements. Local WDBs must report the costs they count toward the 50 percent OSY and 20 percent youth work experience expenditure requirements monthly in the Contract Management and Expenditure Tracking (COMET) System. Participants do not have to complete work experience activities for the associated costs to count towards the 20 percent work experience expenditure requirement. These costs must be reported in COMET at the time they are incurred.

Special Waiver Note: DOL has approved a waiver for Wisconsin that lowers the minimum Youth Program expenditure requirement for OSY to 50 percent. This waiver is effective for Program Years 24 and 25, ending June 30, 2026.

To evaluate local WDB compliance with the expenditure requirements, DWD-DET will:

1. Subtract administrative costs from the local WDB's total WIOA Youth annual formula allocation for a given year to identify the denominator.
2. Use the amounts reported in COMET for the OSY and work experience expenditure requirements to identify the numerators.
3. Divide the numerator by the denominator for both calculations.

4.18.1 Travel Policy

Effective date: March 1, 2022

Background

DWD-DET has a fiduciary responsibility to ensure the prudent use of WIOA Title I funds. Therefore, DWD-DET requires that all travel and conference expenses charged to WIOA meet:

• the necessary and reasonable standards of costs;¹
• travel costs and Factors Affecting Allowability of Costs;² and
• the allocability standard Allocable costs.³

Local Policy

Local Workforce Development Boards (WDBs) must have written travel polices and or procedures that adhere to the requirements of the Uniform Guidance.

WIOA In-State and Out-of-State Travels

Local WDBs are not required to seek prior approval for in-state or out-of-state-travel charged in whole or in part to WIOA that meets the standards established in Travel costs⁴ and Factors affecting allowability of costs.⁵

A local workforce development board must ensure that any costs associated with traveling are necessary and reasonable for the successful performance under the Federal Award. Supporting documentation, i.e. Agendas, etc. must be retained to justify the cost being charged in whole or in part to the WIOA Federal Program.

Prohibited Travel Costs

The following costs associated with traveling are prohibited:

1. Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities) are unallowable⁶.
2. Foreign travel and first-class airline tickets⁷.
3. Alcoholic beverages are disallowed under any circumstances⁸.

DWD Monitoring

DWD-DET may request Agendas as well as other related supporting documentation for conferences and associated travel cost charged in whole or in part to the WIOA Federal Funds during the annual monitoring.

• ¹ 2 CFR § 200.403
• ² 2 CFR § 200.475
• ³ 2 CFR § 200.405
• ⁴ 2 CFR § 200.475
• ⁵ 2 CFR § 200.403
• ⁶ 2 CFR§ 200.438
• ⁷ WIOA section 181 (e)
• ⁸ 2 CFR§ 200.423

4.19.1 WIOA Event Hosting

Effective date: March 1, 2022

This section only applies to conferences hosted by WDBs in which WIOA funds are charged in whole or in part.

Local WDBs must obtain prior approval from DWD-DET by submitting a WIOA Conference Hosting Approval Request Form to the assigned Local Program Liaison (LPL) before holding, hosting, and/or sponsoring any conference charged in whole or in part to WIOA funds.

A conference is defined as a meeting, retreat, seminar, symposium, workshop or event whereby the primary purpose is the dissemination of technical information beyond the non-federal entity and is necessary and reasonable for successful performance under the federal award¹.

The cost of meetings and conferences (examples could include lodging, facilities, food, beverages, materials, and supplies) where the primary purpose is to provide technical assistance and is necessary and reasonable for successful performance under the federal award is allowable.

Prior approval is not required for local WDB meetings and committee meetings. Furthermore, regular activities allowable under WIOA also do not require prior approval. These regular activities include, but are not limited to: WDB Board of Director and Committee meetings, Local Elected Official (LEO) Meetings, One-Stop/WIOA Orientations, Job Fairs, Industry/Sector Partnerships, and other activities under 680.140, etc.

The WIOA Conference Hosting Approval Request Form must be submitted to the LPL no later than15 business days prior to the date of event. Requests submitted later than this may be denied. The assigned LPL and a DWD-DET Financial Manager will review the -Conference Hosting Request and issue a written decision within 7 business days of receipt of the form.

DWD-DET retains the right to obtain additional information from the WDB about any conference that is funded in whole or in part with grant funds.

• ¹ 2 CFR § 200.432

5.1.1 Overview

Effective date: July 1, 2020

All recipients¹ under the Workforce Innovation and Opportunity Act (WIOA) Title I must ensure equal opportunity (EO) and nondiscrimination in programs and activities funded in whole or in part under WIOA.² This responsibility includes compliance with all nondiscrimination requirements in the administration and operation of programs, activities, and employment as provided by WIOA Section 188 (Nondiscrimination and Equal Opportunity) and 29 CFR Part 38 (Implementation of the Nondiscrimination and Equal Opportunity Provisions of the Workforce Innovation and Opportunity Act).³ The regulations apply to all programs and activities that are operated by One-Stop partners as part of the One-Stop delivery system.⁴

WIOA prohibits discrimination on the basis of race; color; religion; sex (including pregnancy, childbirth, and related medical conditions, transgender status, and gender identity); national origin (including limited English proficiency); age; disability; political affiliation or belief; or, for beneficiaries, applicants, and participants only, on the basis of citizenship status or participation in a WIOA Title I-financially assisted program or activity. DWD-DET also prohibits discrimination based on military or veteran status, sexual orientation, gender identity or expression, marital or familial status, and genetic information.⁵

DWD-DET requires that local WDBs provide all services in an equitable and consistent fashion to similarly situated participants. Local WDBs must establish written policies and procedures that establish criteria that provide a fair and equitable method for selection among the eligible applicants for all services, as well as a process by which to document fair and equitable determination.

• ¹ Recipient is defined at 29 CFR § 38.4(zz).
• ² 20 CFR § 683.285(a)(1)
• ³ 20 CFR § 683.285(a)(2); 29 CFR § 38.20; TEGL 37-14
• ⁴ 29 CFR § 38.2(a)(3); TEGL 37-14
• ⁵ 2019 Executive Order 1

5.2.1 Overview

Effective date: July 1, 2020

Each local WDB must designate a local-level EO Officer. The local-level EO Officer must be a senior-level employee and report directly to the local WDB Executive Director. ¹ The local-level EO Officer is responsible for equal opportunity compliance within the local WDB and must be allowed sufficient authority and resources to perform these duties.² The EO Officer's name, position title, address, and telephone number must be made public. The EO Officer's identity and contact information must appear on all internal and external communications related to nondiscrimination and equal opportunity programs.³

Depending upon the size of the local WDB, the size of the local WDB's WIOA Title I-financially assisted programs or activities, and the number of applicants, registrants, and customers serviced by the local WDB, the EO Officer may or may not have other duties.⁴

The EO Officer's job duties and reporting relationships must not create or give the appearance of a conflict of interest.⁵ The DWD-DET EO Officer will evaluate conflicts of interest on a case-by-case basis, considering all the duties, responsibilities, and organizational locations of the EO Officer and EO staff.

• ¹ 29 CFR § 38.28
• ² 29 CFR § 38.29(e)
• ³ 29 CFR §§ 38.29(c) and (d)
• ⁴ 29 CFR § 38.30
• ⁵ 29 CFR § 38.30

5.2.2 EO Officer Responsibilities

Effective date: July 1, 2020

The EO Officer's responsibilities include, but are not limited to:

• Understanding WIOA Section 188 and related civil rights and nondiscrimination regulations.¹
• Monitoring and reviewing local WDB activities, and the activities of those entities that receive WIOA Title I funds from the local WDB, to ensure the local WDB and its subrecipients do not violate nondiscrimination and EO obligations under WIOA Title I, § 504 of the Rehabilitation Act of 1973, or their implementing regulations.² DWD-DET requires annual monitoring of subrecipients.
• Reviewing the local WDB's written policies to ensure that the policies are nondiscriminatory.³
• Developing the local WDB's policies for processing discrimination complaints, making that information available to the public in appropriate languages and formats, and ensuring that the complaint procedures are followed.⁴
• Conducting outreach and education on equal opportunity and nondiscrimination requirements consistent with 29 CFR § 38.40 and on how an individual may file a complaint consistent with 29 CFR § 38.69.⁵
• Attending training, at the local WDB's expense, to maintain competency.⁶
• Reporting EO matters directly to the appropriate official(s)—including, but not limited to, the local WDB Executive Director and/or DWD-DET EO officer.⁷
• Ensure service provider compliance with the nondiscrimination and equal opportunity provisions of WIOA.⁸

• ¹ 29 CFR § 38.30
• ² 29 CFR § 38.31(b)
• ³ 29 CFR § 38.31(c)
• ⁴ 29 CFR § 38.31(d)
• ⁵ 29 CFR § 38.31(e)
• ⁶ 29 CFR § 38.30; 29 CFR § 38.31(f)
• ⁷ 29 CFR § 38.29(a)
• ⁸ 29 CFR § 38.33

5.2.3 EO Officer Training

Effective date: July 1, 2020

Local WDBs must ensure competency through initial and regularly updated training for designated EO Officers.¹ The local WDB is responsible for covering all training expenses for the local-level EO Officer(s) and their staff.² DWD-DET requires that the local EO Officer receive at least eight hours of training per fiscal year from training sources (for example, EO-related webinars, forums, seminars, and/or conferences) that have been approved by the DWD-DET EO Officer. In order to receive credit, local EO Officers must request approval for trainings/training sources by providing the course information to the DWD-DET EO Officer via email

DWD-DET requires that training attendance documentation is maintained, including the course title, organization name, date(s), number of hours, and a brief course description. This documentation must be submitted to the DWD-DET EO Officer:

• upon request;
• during compliance reviews;
  and/or
• as needed by DOL.

• ¹ 29 CFR § 38.29(f); 29 CFR § 38.31(f)
• ² 29 CFR § 38.29(f); 29 CFR § 38.31(f)

5.2.4 EO Officer Notification/Changes

Effective date: July 1, 2020

DWD-DET requires that each local WDB make available:

• contact information for the designated local-level EO Officer;
• the local-level EO Officer's position description that includes all other duties that are not related to equal opportunity matters;
  and
• an organizational chart showing the relationship of EO Officer to their local WDB Executive Director.

DWD-DET requires that the EO Officer position is filled at all times. If there is a change in the EO Officer position the local WDB must notify the DWD-DET EO Officer within five working days after the change occurs.

5.4.1 Assurance Requirements

Effective date: July 1, 2020

Each contract, agreement, or application for financial assistance under Title I of WIOA will include, in its entirety without changes, the following EO/nondiscrimination assurance language found at 29 CFR § 38.25(a)(1)(i) and (ii):

As a condition to the award of financial assistance from the Department of Labor under Title I of WIOA, the grant applicant assures that it has the ability to comply with the nondiscrimination and equal opportunity provisions of the following laws and will remain in compliance for the duration of the award of federal financial assistance:

1. Section 188 of the Workforce Innovation and Opportunity Act (WIOA), which prohibits discrimination against all individuals in the United States on the basis of race, color, religion, sex (including pregnancy, childbirth, and related medical conditions, transgender status, and gender identity), national origin (including limited English proficiency), age, disability, or political affiliation or belief, or against beneficiaries on the basis of either citizenship status or participation in any WIOA Title I-financially assisted program or activity;
2. Title VI of the Civil Rights Act of 1964, as amended, which prohibits discrimination on the bases of race, color and national origin;
3. Section 504 of the Rehabilitation Act of 1973, as amended, which prohibits discrimination against qualified individuals with disabilities;
4. The Age Discrimination Act of 1975, as amended, which prohibits discrimination on the basis of age; and
5. Title IX of the Education Amendments of 1972, as amended, which prohibits discrimination on the basis of sex in educational programs.

The grant applicant also assures that, as a recipient of WIOA Title I financial assistance, it will comply with 29 CFR part 38 and all other regulations implementing the laws listed above. This assurance applies to the grant applicant's operation of the WIOA Title I-financially assisted program or activity, and to all agreements the grant applicant makes to carry out the WIOA Title I-financially assisted program or activity. The grant applicant understands that the United States has the right to seek judicial enforcement of this assurance.

In lieu of including the assurances language in its entirety for smaller contracts or agreements (such as OJT contracts), the following reference to the language may be used: "The nondiscrimination assurances at 29 CFR Part 38.25 apply to this [contract/agreement/etc.]."¹

Every grant applicant and training provider seeking financial assistance under Title I of the WIOA must include in its application the written assurance of nondiscrimination as listed above. However, even when the assurance is not incorporated or referred in a document, it is considered incorporated by operation of law.².

When necessary, language regarding programmatic and architectural accessibility to accommodate individuals with disabilities is also included in contracts and agreements.³

• ¹ 29 CFR § 38.25(a)(2)
• ² 29 CFR § 38.25(a)(2)
• ³ See Subpart C of 29 CFR Part 32

5.5.1 Affirmative Outreach

Effective date: July 1, 2020

Local WDBs and service providers must take appropriate steps to ensure that they are providing equal access to their WIOA Title I programs and activities.¹ These steps should involve reasonable efforts to include members of the various groups protected by these regulations (hereinafter referred to as "protected groups"): persons of different sexes, various racial and ethnic/national origin groups, various religions, individuals with limited English proficiency, individuals with disabilities, and individuals in different age groups.²

Outreach efforts may include, but are not limited to:³

• promoting programs and activities in media outlets (including the Internet) that target protected groups;
• sharing information about program offerings with schools and community-based organizations and service agencies that serve protected groups;
  and
• consulting with appropriate community organizations about ways outreach to protected groups may be improved.

To meet the minimum requirements of affirmative outreach, DWD-DET requires local WDBs to:

• review Census or other reliable information on an annual basis to determine the protected groups in the area who could potentially use WIOA Title I programs and activities;
• make efforts to use One-Stop partner resources and consult with One-Stop partners about ways to improve outreach and service for protected groups;
• ensure staff awareness of outreach efforts through training and orientation;
  and
• maintain documentation of all outreach efforts, including contacts with One-Stop partners, for monitoring purposes and make such documentation available for review by local, state, or federal EO Officials during monitoring and/or upon request.

• ¹ 29 CFR § 38.40
• ² 29 CFR § 38.40
• ³ 29 CFR § 38.40

5.7.1 Collection and Maintenance of Medical and Disability-Related Information

Effective date: July 1, 2020 – DWD-DET strongly recommends that all participant files be reviewed retroactively to comply with local record retention policies but monitoring for this requirement will align with the policy effective date of July 1, 2020.

Any medical or disability-related information obtained about an individual, including information that could lead to the disclosure of a disability, must be collected on separate forms.¹ This applies to information collected for purposes of establishing eligibility and to employee personnel files.²

All questions pertaining or alluding to an individual's disability, including the basic, "Do you have a disability, Yes/No" question or disclosures of SSDI as a potential source of income must be asked on a separate form. If ASSET information is printed for the file, such as the Manage Programs attestation printout, DWD-DET requires all disability sections to be redacted before the document is placed in the participant file.

Medical and disability-related information must be maintained in a separate, secure location, such as a locked physical file, or a password-protected electronic record.³ The local WDB must have a policy that includes guidelines for storing information in a manner that ensures this information is kept confidential. Maintaining medical and disability-related information in a sealed envelope in a locked drawer that is different from the location of the participant file would meet this compliance requirement.

Access to the medical file must be limited; only persons in the following categories may be informed about the individual's disability or medical condition and access the medical file:

• program staff who are responsible for documenting eligibility, where disability is an eligibility criterion for a program or activity;⁴
• first aid and safety personnel in the event of an emergency;⁵
  and
• local, state, and federal monitors.⁶

Supervisors, managers, and other necessary personnel may be informed of restrictions on the activities of individuals with disabilities and regarding reasonable accommodations for such individuals but may not have access to information in medical files.⁷

Medical and disability-related information that is acquired during the delivery of case management services must also be stored securely.⁸ DWD-DET requires staff to make the ASSET case notes containing information about medical or disability status confidential and redact such information from any paper documents. If any documentation is received and not needed, staff must return the document to the participant, or shred it, after recording any necessary information in a confidential ASSET case note.

DWD-DET recommends that, whenever possible, career planners record relevant information about the effects of an individual's medical impairment, rather than his or her actual medical diagnosis. For example, career planners can record the following information without disclosing an individual's medical or disability-related information:

• cannot lift more than 20 pounds;
• cannot sit for more than an hour;
• must take frequent breaks;
  and
• will be unavailable during the next six weeks.

Examples of medical/disability information that must be secured separately, include, but are not limited to items such as:

• pregnant;
• headaches;
• depression;
• addiction;
  and
• diabetes.

DWD-DET requires that all discussions between career planners and individuals are conducted confidentially. Career planners working with individuals with disabilities must obtain permission from the individual before disclosing information about his or her disability with others. This policy does not limit an individual's voluntary disclosure of medical and disability-related information.

• ¹ 29 CFR § 38.41(b)(3)
• ² 29 CFR § 38.41(b)(2) and (b)(3)
• ³ 29 CFR § 38.41(b)(3)
• ⁴ 29 CFR § 38.41(b)(3)(i)(A)
• ⁵ 29 CFR § 38.41(b)(3)(i)(B)
• ⁶ 29 CFR § 38.41(b)(3)(i)(C)
• ⁷ 29 CFR § 38.41(b)(3)(ii)
• ⁸ 29 CFR § 38.41(b)(3)

7.0.1 2019 ETPL Transition Guidance

Effective date: March 16, 2022

Guidance for Training Institutions

The Wisconsin Department of Workforce Development – Division of Employment and Training (DWD-DET) has transitioned to its Eligible Training Program List (ETPL), which included both policy and website changes.

Only programs found eligible through the Initial Eligibility Procedure, which uses the ETPL Provider Portal, will be published on Wisconsin's new ETPL Website. The ETPL website launched December 2, 2019. The previous ETPL/ITA website has shut down.

The ETPL Provider Portal and ETPL Website are accessed through JobCenterofWisconsin.com by clicking on the "Education & Training" link with the mortarboard icon, located on the bottom of the homepage. Clicking the "Training Institution" button navigates users to the ETPL Homepage for Training Institutions. The "Search List" button navigates users to the ETPL Website, which is searchable by training institution name, training program name, city, and job title. The "Help" link, located on both the ETPL Homepage for Training Institutions and the ETPL Website, takes users to information about DWD-DET's eligibility criteria, information requirements, and application instructions.

Guidance for WIOA Program Participants & Career Planners

All newly established ITAs

Participants must select ITA-funded training from the new ETPL Website, beginning December 2, 2019, unless one of the two exceptions apply (see below). To enter a new training service in ASSET for the training program, the career planner must make the selection from the "Version 2" list in the "ASSET – ITA Program Lookup" screen.

Exception 1: Participants already enrolled in a training program from the previous ETPL/ITA website.
Participants may complete their training, even if the program is not on the new ETPL Website. If a career planner must enter a new training service in ASSET for that training program (e.g., for a new academic term), the career planner makes the selection from the "Version 1" list in the "ASSET – ITA Program Lookup" screen.

Exception 2: Participants planning to enroll in a training program from the previous ETPL/ITA website where the training program is not on the new ETPL Website
Participants may complete the training if, prior to December 2, 2019, there was a training service in ASSET, a completed Individual Employment Plan, or a case note that reflects the participant's plan to attend the training program. To enter a new training service in ASSET for that training program, the career planner makes the selection from the "Version 1" list in the "ASSET – ITA Program Lookup" screen.

Guidance for Local WDBs

Local WDBs stopped accepting ETPL applications under the previous process on December 1, 2019. If a training institution is interested in applying to the new ETPL, DWD-DET strongly encourages local WDBs to instruct the institution to submit its application through the new ETPL Provider Portal.

7.0.2 2022 ETPL Transition Guidance

Effective date: May 31, 2022

Background

The Department of Workforce Development – Division of Employment and Training (DWD-DET) has made numerous updates to its ETPL policies and processes, including updates to:

• section 7.3.1 Eligible Institution Types;
• section 7.3.2 Eligible Program Types;
• section 7.4.4 Wisconsin's Initial Eligibility Procedure;
• section 7.4.5 Wisconsin's Continued Eligibility Procedure;
• section 7.4.6 Institution Minimum Requirements;
• section 7.4.7 Standard vs. Alternate Classification and Eligibility Criteria;
• section 7.8.2 Wisconsin's Procedures for Registered Apprenticeships
• Wisconsin's ETPL Agreement; and
• the ETPL Provider Portal.

Many of the updates were made to help ensure that training programs published on Wisconsin's ETPL comply with both WIOA authority and Wisconsin State approval and/or licensing requirements for training institutions and their programs.

As part of these changes, some institutions will need to provide additional information and/or supporting documentation, through the ETPL Provider Portal, to show their compliance with the updated requirements. DWD-DET anticipates that changes to the ETPL Provider Portal that address these updated requirements will be deployed in late Spring 2022.

New Institution and Program Applications

DWD-DET is following the new requirements for all new ETPL institution and program applications. Please note – this means going forward, DWD-DET will only publish an Alternate institution's training program to Wisconsin's ETPL if it meets the criteria outlined in section 7.4.7 for Alternate institutions. DWD-DET may instruct institutions to provide supporting documentation via email, until the changes to the ETPL Provider Portal are deployed.

It may be necessary for DWD-DET to temporarily cease accepting new institution and program applications prior to the deploy of the updated ETPL Provider Portal. DWD-DET will notify all existing ETPL Provider Portal users should this occur.

Existing Institutions and Programs

All existing institutions that meet the new Standard classification criteria will not need to reapply; however, they will need to sign a new ETPL Agreement. DWD-DET will notify the institution Officers when the new agreement is ready for their review and signature. If the Officer fails to sign the new ETPL Agreement, the institution and its programs may be subject to termination from Wisconsin's ETPL.

Once the updates to the ETPL Provider Portal are deployed, all institutions currently approved for Wisconsin's ETPL that do not meet the new Standard classification criteria will need to reapply if they wish to continue to have training programs published on Wisconsin's ETPL. DWD-DET will notify all impacted institutions when the reapplication window starts. The reapplication window will last for 60 calendar days. During that time, ETPL Provider Portal users will need to submit some additional information through the portal and the institution's Officer will need to sign a new ETPL Agreement. DWD-DET will then make a new eligibility determination based on the updated eligibility criteria. DWD-DET will terminate institution and program eligibility following this reapplication window if (a) the institution fails to timely submit the additional information or (b) the institution fails to meet the updated eligibility criteria. If termination of eligibility occurs, the institution may always reapply at a later date.

Recommended Action Steps for Training Institutions

DWD-DET encourages institutions to take the following steps in preparation for the reapplication window:

1. Review section 7.4.7. If your institution meets the new Standard classification criteria, it will not need to reapply to Wisconsin's ETPL.
2. If your institution is considered an Alternate according to section 7.4.7, review the new requirements that pertain to your institution.
   • Your institution may need to either be approved by Wisconsin's Educational Approval Program (EAP) or produce documentation from the EAP showing that the institution is exempted from its oversight. More information for the EAP can be found on the EAP's website.
   • If your institution offers a training program that must be approved or licensed by another Wisconsin state agency or board, be prepared to show documentation of that approval or licensure if DWD-DET requests it.
   • Your institution will need to submit a legible copy of its Federal Employer Identification Number (FEIN) designation letter from the U.S. Internal Revenue Service.
   • Your institution will need a Federal Unique Entity Identifier. There is no fee to register for a Federal Unique Entity Identifier. To see if your institution already has this type of ID assigned to it or to create one for free, go to the SAM.gov website.

Contact Information for Questions

Questions relating to Wisconsin's ETPL should be directed to DETETPL@dwd.wisconsin.gov.

7.1.1 Overview

Effective date: July 1, 2020

An Individual Training Account (ITA) is a payment arrangement the local WDB or its service provider makes, on behalf of a participant, with a training institution for training services,¹ when the program of choice is included on the state's Eligible Training Programs List (ETPL).² The payment to the training institution may be made in full or incrementally.³ Issuing the payment(s) may be performed in a variety of ways, including electronic transfer of funds through financial institutions (e.g., ACH payments) and/or paper checks.⁴

• ¹ 20 CFR § 680.300
• ² 20 CFR §§ 680.300 & 680.410(a)
• ³ 20 CFR § 680.300
• ⁴ 20 CFR § 680.300

7.1.2 Use in the Adult Program and Dislocated Worker Program

Effective date: March 13, 2023

Individual Training Accounts (ITAs) are the primary method to be used for funding training services for Adult Program and Dislocated Worker Program participants.¹ An ITA must be used to fund participant training, unless the training is funded through a contract for services under one of the five "contract exceptions"² or the local WDB has a waiver from the Governor to provide the training.³

Since ITAs can only be used to fund training programs on the state's Eligible Training Programs List (ETPL), the local WDB must make the ETPL available to Adult Program and Dislocated Worker Program participants to maximize informed consumer choice when selecting a training program.⁴ DWD-DET requires Title I career planners to share the location of the ETPL website with participants interested in occupational skills (i.e., classroom) training. Participants must select their training program from the ETPL in consultation with their career planner.⁵

Local WDBs must fund a participant's training program of choice through an ITA when:

1. the participant is found eligible for training;
2. the participant selects a training program from the ETPL in consultation with their career planner;⁷
3. the training program is fundable considering local ITA limitations;⁸
4. consistent with federal cost principles, the local WDB determines that the cost of the program is considered reasonable;¹⁰
   AND
5. the local WDB has not exhausted training funds for the program year.⁹

If the five conditions outlined above are not met for a given participant, an ITA cannot be used to fund the participant's training program, and the local WDB must ensure the reason(s) for denying the ITA are documented. When the denial is based on the unreasonableness of the cost of the program, the local WDB's documentation must demonstrate that other comparable training options were available at a lower cost.

• ¹ TEGL 19-16, p. 7
• ² 20 CFR § 680.320; TEGL 19-16, p. 7
• ³ 20 CFR § 680.300
• ⁴ 20 CFR § 680.340(a) & (b)
• ⁵ 20 CFR §§ 680.300 & 680.340(c)
• ⁶ Participants must be found eligible for training under 20 CFR § 680.210.
• ⁷ 20 CFR § 680.340(c)
• ⁸ 20 CFR § 680.310
• ⁹ 20 CFR § 680.340(c)
• ¹⁰ 2 CFR § 200.404 states that "[a] cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost." One of the factors in determining reasonableness of a given cost is the market price for comparable goods or services for the geographic area (see 2 CFR § 200.404 (c)).

7.1.3 Use in the Youth Program

Effective date: October 1, 2024

If appropriate, Individual Training Accounts (ITAs) may be used to fund training services for Youth Program participants who met the out-of-school youth (OSY) criteria at the time of the eligibility determination.¹ ITAs may also be used to fund training services for Youth Program participants aged 16 or older who met the in-school youth (ISY) criteria at the time of eligibility determination.

Youth Program participants who are 18 years of age or older may co-enroll in the Adult Program in order to receive training services funded through an ITA funded by the Adult Program.² Additional information about co-enrollment of Youth Program participants ages 18 and older is available in section 10.4.2.

Special Waiver Note: DOL has approved a waiver for Wisconsin that allows ITAs to fund training services for Youth Program participants aged 16 or older who are ISY at the time of eligibility determination. This waiver is effective for Program Years 24 and 25, ending June 30, 2026.

• ¹ 20 CFR § 681.550; Note that 20 CFR § 681.550 states that ITAs are allowed "for OSY, ages 16 to 24 using WIOA youth funds . . . ." This language suggests that ITAs can only be used for OSY participants who are 16 to 24 years of age at the time of establishing the ITA. DWD-DET disagrees with this interpretation since 20 CFR § 681.210(b) specifically states that OSY participants may continue to be served as OSY beyond the age of the 24.
• ² TEGL 21-16, p. 17

7.1.4 Use with Registered Apprenticeship

Effective date: July 1, 2020

Local WDBs may use Individual Training Accounts (ITAs) to support Title I participants (except Youth Program in-school youth (ISY) participants) in registered apprenticeships.¹ If a registered apprenticeship (RA) program is on Wisconsin's ETPL, an ITA may be used to fund the occupational skills (i.e., classroom) training component a participant must complete as part of the RA program.² If a pre-apprenticeship program is on Wisconsin's ETPL, an ITA may be used to fund a participant's training in that pre-apprenticeship program.³

• ¹ 20 CFR § 680.330(a)
• ² 20 CFR § 680.330(a)(2)
• ³ 20 CFR § 680.330(a)(1)

7.1.5 Limitations

Effective date: July 1, 2020

The state and local WDBs have the ability to establish general limitations for all Individual Training Accounts (ITAs) through policy, including limits on:

• duration;
• dollar amount (e.g., a range of amounts based on level/type of training or occupational field, or a maximum amount for all ITAs);¹
• occupational area;² and
• level of education/training that will be funded (e.g., certificate programs, bachelor's or master's degrees).³

Any general limitations on ITAs cannot be devised or implemented in a manner that undermines WIOA's requirement that training services be provided in a manner that maximizes customer choice in the selection of a training program from the ETPL.⁴ Therefore, DWD-DET prohibits local WDBs from:

• prohibiting the use of ITAs for particular institutions included on Wisconsin's ETPL;
  OR
• requiring participants to select programs on the ETPL that lead to a WIOA-recognized credential.⁵

Any general limitations established by the State WDB or a local WDB through policy must also be described in the State or Local Plan, respectively.⁶ These limitations are not effective until they are included in the State or Local Plan.⁷

Note: Wisconsin's State WDB, The Governor's Council on Workforce Investment, has not established any general limitations on ITAs.

To the extent the State WDB or a local WDB establishes general limitations on ITAs, they may also address situations when exceptions may be made for individual cases.⁸ If the State WDB or a local WDB allows exceptions to the limitations, those exceptions must be described in state or local policy, respectively.⁹ When a local WDB allows for exceptions, DWD-DET requires the local WDB to describe in its local policy the criteria it will use for granting an exception and the procedure it will follow to approve or deny an exception.

If a local WDB includes general limitations in its Local Plan, DWD-DET requires the local WDB to complete the "ITA Limitations" form and send the completed form to its assigned Local Program Liaison within five business days from the effective date of the Local Plan. DWD-DET will publish the local WDB's "ITA Limitations" form on Wisconsin's ETPL website to notify participants and training institutions of the limitations. If the local WDB changes the general limitations through a modification to its existing Local Plan or by issuing a new Plan, it must complete and send a new "ITA Limitations" form to its assigned Local Program Liaison within five business days from the effective date of the modified or new Plan.

• ¹ 20 CFR § 680.310(d). Participants may select training programs that exceed local WDB amount limits. See 7.1.7 Funding Coordination for more information.
• ² 20 CFR § 680.210(b) states that programs of training services must be directly linked to the employment opportunities in the local area or the planning region, or in another area to which the individuals are willing to commute or relocate.
• ³ 20 CFR § 680.310
• ⁴ 20 CFR § 680.310(c)
• ⁵ 20 CFR § 680.420 specifically allows training that leads to employment or measurable skill gains.
• ⁶ 20 CFR § 680.310(c)
• ⁷ 20 CFR § 679.550 states that policies, procedures, and local activities carried out in the local area must be included in the local plan and that the local WDB must provide an opportunity for public comment.
• ⁸ 20 CFR § 680.310(c)
• ⁹ 20 CFR § 680.310(c)

7.1.6 Training Program Removal

Effective date: July 1, 2020

If a training program is removed from the Eligible Training Programs List (ETPL), but the institution has not committed a substantial violation, DWD-DET allows local WDBs and their service providers to use Individual Training Accounts (ITAs) to continue to fund participants who enrolled in the program prior to the program's removal from the ETPL.¹ However, local WDBs cannot establish new ITAs for programs that have been removed from the ETPL.²

If a program is removed from the ETPL due to the institution committing a substantial violation , local WDBs and their service providers are prohibited from making any further payments to the institution through ITAs. DWD-DET will take action to reclaim all ITA funds paid to the institution during the period of noncompliance.³ Additionally, DWD-DET will identify any current participants with an open training service in that program and promptly notify the participant's career planner and the local WDB director about the substantial violation. The career planner must offer the participant both of the following choices:

1. to continue the program without WIOA Title I training funds; or
2. use the ETPL to identify and select a comparable program at a different institution and continue training in the comparable program.

Local WDBs may wish to address in their ITA policies how they will handle situations where participants must select a comparable program at a different institution. For example, they may allow exceptions to any ITA-related funding and duration limitations.

Note: Since fund reclamation would leave some or all of a participant's tuition/fees unpaid, participants may be liable to pay the institution the unpaid amount.

• ¹ This applies to situations where an institution on the ETPL becomes federally debarred. Pursuant to 2 CFR § 180.310, recipients of a federal award may continue transactions with federally debarred organizations if the transaction was in existence at the time the organization became debarred. DWD-DET interprets this provision to allow use of ITAs to fund training programs at federally debarred institutions, so long as the participant was enrolled in the program before the institution was debarred. DWD-DET agrees with DOL's statement in TEGL 41-14, p. 12, that ETPL program removal should result in minimal disruption to enrolled participants.
• ² 2 CFR § 180.320; 20 CFR § § 680.480(b), 683.200(d), & 683.250(a)(4). DWD-DET allows local WDBs that use an ITA to make incremental payments for a training program to make all of the payments so that the participant can complete the program.
• ³ 20 CFR § 680.480(b)

7.1.7 Funding Coordination

Effective date: July 1, 2020

A participant may select a training program from the ETPL that exceeds the maximum amount available for an ITA (as established by state or local policy) when other fund sources can supplement the ITA.¹ Other sources include, but are not limited to: Pell Grants, scholarships, and household income.²

• ¹ 20 CFR § 680.310(d)
• ² 20 CFR § 680.310(d)

7.1.8 Funding a Segment of a Program

Effective Date: January 24, 2022

Training programs published on Wisconsin's Eligible Training Programs List (ETPL) may be comprised of multiple courses/classes.¹ DWD-DET allows an ITA to be used to fund one or more courses/classes that are part of an approved program on Wisconsin's ETPL, even if the participant does not intend to complete all of the courses/classes that combine to form the approved training program. DWD-DET refers to this scenario as using an ITA to fund a "segment" of a training program on Wisconsin's ETPL.

If an ITA is used to fund a segment of a training program, the career planner must do the following:

1. Open an "occupational classroom" or "occupational skills training" service in ASSET and associate that service with the ITA Program ID for the training program that contains the segment of interest.
2. In that service, add a note in the comments box indicating that the participant is taking a smaller segment of the training program. Indicate which course(s)/class(es) of the program will be covered by the ITA. Also include the ITA amount, specifying the cost(s) associated with the smaller segment. The career planner may need to contact the training institution to obtain the cost information associated with the smaller segment.
3. When the participant exits the smaller segment, the ASSET service must be marked as "Completed a Segment"² since the participant did not complete the full training program.
4. Report in ASSET any Measurable Skill Gain and any credential the participant earned while or upon completing the segment.

• ¹ 20 CFR § 680.420; TEGL 08-19 Attachment I, p. I-3
• ² Email from DOL to DWD-DET, 06/05/2020

7.2.1 Introduction and Overview of the ETPL

Effective date: January 20, 2020

WIOA requires that the State Workforce Agency maintain a list of institutions and their training programs that are eligible for Individual Training Accounts (ITAs).¹ This list is called the "Eligible Training Programs List" (ETPL). The ETPL helps ensure training program quality and accountability as well as informed choice for WIOA participants selecting training.² DWD-DET, as Wisconsin's State Workforce Agency, is responsible for overseeing and maintaining Wisconsin's ETPL.

Wisconsin's ETPL must be used to select ITA-funded training services for WIOA Title I Adult Program and Dislocated Worker Program participants who qualify for training³ and, it may be used for the same purpose for Out-of-School Youth (OSY) Program participants.⁴ Other core and partner programs are not required to use the ETPL but the state may choose to leverage it as a resource.⁵ If an institution's training program is not on the list, it can take steps to add the program or, the program may be allowable as a non-ITA training option.⁶ The ETPL does not apply to services other than training.⁷

The State Workforce Agency plays a leadership role in ensuring the success of its ETPL, including:

• establishing eligibility procedures for the ETPL, including consulting with the State WDB and soliciting and considering input from the local WDBs and other interested parties when developing eligibility procedures;
• establishing a process for adding Registered Apprenticeship programs to the ETPL and verifying their "registered" status at least every two years;
• ensuring programs meet information requirements and eligibility criteria, including any minimum levels of program performance;
• ensuring eligibility is appropriately denied or terminated and that programs no longer meeting eligibility criteria are timely removed from the list;
• taking appropriate enforcement actions against institutions that substantially violate the provisions of WIOA;
• clarifying state-level and local WDB roles and responsibilities with carrying out the eligibility procedures;
• making the list publicly available online using user-friendly, searchable databases;
• presenting program information, including recognized postsecondary credentials offered, aggregated performance data and cost information, in a user-friendly fashion so individuals can make informed decisions;⁸
• making program information available in formats accessible to individuals with disabilities;
• ensuring that performance information does not reveal any personally identifiable information (PII);⁹
• ensuring institutions comply with WIOA's nondiscrimination and equal opportunity provisions;
• and
• establishing an appeals procedure for institutions to appeal the denial or termination of eligibility.¹⁰

• ¹20 CFR § § 680.400 and 680.410; TEGL 08-19 Attachment I, p. I-1
• ²20 CFR § 680.400
• ³WIOA Sec. 122(a); 20 CFR §§ 680.400(a) and 680.410(a); 81 FR 56126
• ⁴20 CFR § 681.550; TEGL 21-16, p. 17
• ⁵81 FR 56126
• ⁶20 CFR §§ 680.320 and 680.450
• ⁷20 CFR § 680.410(c)
• ⁸Per 20 CFR §§ 677.230(a), 680.490(b) and (c), and 680.500(d)(1)-(4) and TEGL 08-19 Attachment II, p. II-2, DWD-DET publishes institution and program eligibility information, program cost information, program performance information on the ETPL website so that individuals and WIOA participants can make informed choices about selecting training programs.
• ⁹Per 20 CFR § 680.500(e) and TEGL 08-19, Attachment I, p. I-9, DWD-DET removes personally identifiable information from the published institution, program and performance report information.
• ¹⁰20 CFR §§ 680.400(b), 680.430(b), 680.480(c), and 680.480(c) 680.500; 29 CFR § 38.5; 81 FR 87131; TEGL 08-19, Attachment II, p. II-6

7.3.1 Eligible Institution Types

Effective date: March 16, 2022

For an institution to be eligible for the Eligible Training Programs List (ETPL), it must be one of the following:

1. an institution of higher education;¹
2. an entity that carries out programs registered under the National Apprenticeship Act or a recognized State apprenticeship agency;²
   OR
3. another public or private institution that provides training services (e.g., community-based organizations, joint labor-management organizations, and eligible providers of adult education and literacy activities under Title II of WIOA).³
   
   Note: For purposes of Title I-B programs, DWD-DET considers an "eligible provider" of adult education and literacy activities under WIOA Sec. 203, to be an organization that is receiving Title II funding. Title II eligible providers will only be included on Wisconsin's ETPL if their program(s) offers adult education and literacy activities in combination with occupational skills training.⁴ In Wisconsin, these programs are referred to as "Integrated Education and Training (IET)" programs and they must be approved by the Wisconsin Technical College System (WTCS) Office. Only Title II eligible providers with WTCS-approved IET programs will be considered for Wisconsin's ETPL.

DWD-DET may require institutions to provide documentation demonstrating compliance with this section.

• ¹ 20 CFR § 680.410(d)(1); TEGL 08-19 Attachment I, p. I-3
• ² 20 CFR §§ 680.410(d)(2) and 680.470(a); TEGL 08-19 Attachment I, p. I-3
• ³ 20 CFR § 680.410(d)(3); TEGL 08-19 Attachment I, p. I-3
• ⁴ TEGL 08-19 Attachment I, p. I-3

7.3.2 Eligible Program Types

Effective date: March 16, 2022

For a training program to be eligible for the Eligible Training Programs List (ETPL), the eligible institution must directly provide¹ the program of training services and it must do so through one or more courses/classes or through a structured regimen.² Programs may be delivered in-person, online, or through a blended approach of in-person and online.³ Successful completion of the program must lead to one or more of the following outcomes:

• a recognized postsecondary credential;
• a secondary school diploma or its equivalent;
• employment;
  or
• a measurable skill gain toward any of the above.⁴

Note: Training programs may include non-credentialed training or single courses that fall within a career pathway.⁵

DWD-DET considers the following types of programs to be ineligible for Wisconsin's ETPL:

• those that are avocational or recreational in nature and not leading to a vocational objective;⁶
• those that are parochial or denominational in character and/or have a sectarian objective;
• those that are conducted by employers exclusively for their employees;⁷
• those that are considered on-the-job-training, customized training, incumbent worker training, internships, work experience, or transitional jobs as defined by WIOA;⁸
• those that are primarily focused on offering career services as addressed in 20 CFR § 678.430;
• those that are designed or tailored for one specific person that are not available for others to take;
• those that constitute the related-instruction component of a youth apprenticeship program;
  and
• those that are offered free of charge.⁹

DWD-DET may require institutions to provide documentation demonstrating compliance with this section.

• ¹ Email from DOL to DWD-DET, 08/19/2020, stating that institutions that serve as a "conduit" connecting participants to training programs offered by other entities are not eligible for the ETPL.
• ² 20 CFR § 680.420; TEGL 08-19 Attachment I, p. I-3
• ³ 81 FR 56127; TEGL 08-19 Attachment I, p. I-3
• ⁴ 20 CFR § 680.420; TEGL 08-19 Attachment I, p. I-3
• ⁵ 81 FR 56127
• ⁶ DWD-DET considers "vocational objective" to mean leading to proficiency in performing tasks and technical functions related to or required by a specific occupational field. This definition aligns with the definition for "occupational skills training" at 20 CFR § 681.540.
• ⁷ This type of training is contemplated by WIOA as incumbent worker training and should be pursued through that mechanism.
• ⁸ 20 CFR § 680.530 (a)
• ⁹ The purpose of the ETPL is to identify training providers and their training programs that can receive funding for training through an individual training account. 20 CFR § 680.410 (a).

7.4.1 WIOA Overview

Effective date: January 20, 2020

The State Workforce Agency, on behalf of the Governor and in consultation with the State WDB, establishes the initial eligibility application and continued eligibility procedures as well as the state's and the local WDBs' roles in carrying them out.¹ As part of this process, the State Workforce Agency must:

• solicit and consider recommendations and comments from the local WDBs and training institutions within the state;
• and
• designate a specific period of time for interested members of the public, including representatives of business and labor organizations, to submit comments.²

Program eligibility is determined on a program-by-program basis for each training institution.³ A training program is added to the state's ETPL through the initial eligibility application procedure. An institution applying to have a training program added to the ETPL must, at minimum, provide the state with a description of the training program, verifiable information that addresses a factor related to the WIOA indicators of performance, and information detailing whether the institution is in a partnership with business.⁴ Once a training program is published on the state's ETPL, it is considered eligible for local WDBs to fund through an Individual Training Account (ITA), even if the program is located outside of a WDB's local area or the state.⁵

The state uses the continued eligibility procedure to periodically review eligibility of institutions and their training programs and determine if a training program's eligibility should be renewed.⁶ Eligibility for newly added programs must be reviewed after the first year⁷ and at least every two years thereafter.⁸ WIOA requires that the continued eligibility procedure be implemented in a manner that ensures continuity of eligibility for those programs that will be renewed.⁹

For both the initial eligibility application and continued eligibility procedures, the institutions must comply with:

1. the state's information requirements, eligibility criteria and any established minimum levels of program performance¹⁰
   AND
2. local WDB information requirements, eligibility criteria and any additional minimum levels of program performance beyond those established by the state, for the training institution's program to be eligible for ITAs within that local WDB.¹¹

The state's eligibility procedures must be outlined in the State Plan, including the state's and the local WDBs' roles and responsibilities in receiving and reviewing institution and program applications and making eligibility determinations.¹²

Neither the state nor the local WDB has the authority to waive initial or continued eligibility requirements for an institution or program.¹³ For example, institutions of higher education cannot be granted automatic approval.

Note: Registered apprenticeship programs are generally exempt from ETPL eligibility requirements because of the extensive process they undergo to become registered.¹⁴

• ¹ 20 CFR §§ 680.430(a) & (b); 680.450(c) and 680.460(d); TEGL 08-19 Attachment I, p. I-5
• ² 20 §§ 680.430(b)(2); 680.450(c)(1)-(3); and 680.460(b)(1)-(3)
• ³81 FR 56128 & 56133
• ⁴20 CFR § 680.450(e); TEGL 08-19 Attachment III, p. III-1
• ⁵20 CFR § 680.520
• ⁶20 CFR § 680.460; TEGL 08-19 Attachment I, p. I-5
• ⁷WIOA Sec. 122(b)(4)(B) and 20 CFR § 680.450(g)
• ⁸20 CFR §§ 680.460(h)(1) and 680.460(i); TEGL 08-19 Attachment I, p. I-5
• ⁹TEGL 08-19 Attachment I, p. I-5
• ¹⁰20 CFR §§ 680.430(b)(2), 680.450(a) & (d); and 680.460(a)
• ¹¹20 CFR § 680.430(e); TEGL 08-19 Attachment II, p. II-7
• ¹²20 CFR §§680.450(c) and 680.460(e)
• ¹³81 FR 56130
• ¹⁴20 CFR §§ 680.330, 680.450(b) and 680.470(a); TEGL 08-19 Attachment I, p. I-3