Effective internal controls that adequately safeguard assets from waste, fraud and abuse and from unauthorized purposes and inefficient use; that promote accuracy and reliability in the accounting records; and that encourage and measure compliance with the PPM, this chapter, and other applicable laws, rules and regulations.
Accounting records that adequately identify the source and application of funds and provide the proper supportive source documentation, including awards, authorizations, revenues, expenditures, assets, obligations and unobligated balances.
Procedures for determining the reasonableness, allowability and allocability of costs pursuant to s. DWD 820.12
, the PPM and the terms of the grant or contract.
Accurate, current and complete disclosure of the financial results of each grant. The grantee shall report expenditures on an accrual basis. No grantee may be required to establish an accrual accounting system. The grantee shall develop the accrual data for reports based on an analysis of available documentation.
Comparison of actual expenditures with budget amounts for each grant.
Development of financial information that relates to performance and unit cost data.
Procedures to reduce excess cash by minimizing the time elapsing between the transfer of funds from the department and the disbursement by the grantee. Excess cash as determined by the department is an average daily cash balance that exceeds $10,000 or three days expenditures, whichever is greater. If the grantee accumulates excess cash, the department may require corrective action, charge the grantee an interest assessment on funds that are in excess of immediate needs or seek recovery of funds.
Deposit of funds under this chapter in interest bearing accounts insured by the FDIC or the FSLIC. Account balances exceeding FDIC or FSLIC coverage shall be collaterally secured.
(c) Failure to meet standards.
If the grantee's financial management system fails to meet the standards set forth in this subsection, the department shall require corrective action by a specific date. A grantee who fails to take corrective action in the time given is subject to having costs withheld or disallowed.
(2) Invoicing requirements.
The grantee shall submit requests to receive cash advances or reimbursements to the department pursuant to the PPM.
(3) Financial reporting requirements.
Expenditures under this chapter shall be recorded pursuant to the cost categories and program activities in s. DWD 820.12 (7)
. The grantee shall comply with financial reporting as follows:
(a) Financial reports.
The grantee shall submit accurate and timely financial reports pursuant to the PPM. The reports shall include but not be limited to statements of accrued expenditures, settlements and closeout reports.
(b) Late and inaccurate reports.
If required reports, including the close-out package, are not accurate or submitted on a timely basis, the department may withhold payment of the grantee's costs under current or subsequent active grants until the reports are received.
(c) Closure of books.
After submitting a settlement or closeout package, the grantee shall close the books for the affected grants upon receipt of a positive confirmation letter from the department. Subsequent adjustments shall require prior written approval from the department.
(4) Program income.
Program income shall include but not be limited to income from service fees, sale of commodities, usage or rental fees and royalties on patents or copyrights. Program income may also include interest earned on funds under this chapter. The calculation and use of program income shall be subject to audit verification. The grantee shall account for program income pursuant to the PPM and comply with the following:
(a) Expenditure limitations.
A department grantee with only a fixed-period grant shall spend program income during the grant period in which it was earned. A department grantee with a continuing grant or both a continuing and fixed-period grant may spend program income anytime as long as funding is assured in a continuing grant. No limitations of specific costs may be applied to program income. The grantee shall only cover costs that are otherwise allowable when applying program income to any of the following:
To add to the funds committed to the project and use the funds to further eligible program objectives, including but not limited to extending the program period, increasing the number of participants served or improving the quality of the program.
To deduct the funds from the total project costs for the purpose of determining the net costs on which the share of costs funded under this chapter will be based.
To use the funds to finance matching requirements for a JTPA or related program.
To further program objectives under this chapter by funding an additional project which may or may not be related to the project generating the program income.
(b) Prorating amounts.
Where funds under this chapter are only a portion of a project's funding, program income earned shall be prorated based upon the portion of funding provided.
(5) Debt and debt collection.
The grantee shall comply with the procedures for debt and debt collection as follows:
(a) Collection procedures.
The SSGs and other grantees shall develop and institute debt collection procedures to aggressively collect debts or seek waivers. The department shall seek waivers from DOL on behalf of the SSG or grantee pursuant to par. (d)
(b) Establishment of debt.
A debt to the department is established when costs are disallowed in writing by a grant closeout report, a complaint and appeal ruling, an investigation report or an audit resolution findings and determinations letter.
(c) Collection of debt.
Collection options available to the department include but are not limited to requiring cash repayment; withholding from current grant costs an amount equal to the disallowed costs to offset the debt; reduction of a subsequent grant allocation to the grantee pursuant to 29 USC 1574
; or requiring in-lieu-of cash repayment.
(d) Waiver of sanctions relating to debt.
A waiver of all or a part of the sanctions relating to JTPA debt may be obtained. If DOL determines that the grantee and the state have demonstrated substantial compliance with 29 USC 1574
, sanctions against the state may be waived. The state may pass a waiver on to the grantee. All waiver requests shall be processed through the department. No waiver may relieve the debt. A waiver shall only relieve the right of DOL to collect against a debt.
(e) Other actions.
Pursuant to this chapter and other applicable laws, rules and regulations, nothing shall prevent the SSG from being accountable for the actions of its subrecipient; the SSG from being charged interest on the debt by the department at the current rate earned by the Wisconsin state investment fund beginning 30 days after the debt is established; and from DOL imposing sanctions directly on the grantee.
(6) Audit and audit resolution.
The department may conduct audits and investigations pursuant to applicable federal and state laws, rules or regulations as follows:
(a) Preliminary reviews.
When awarding grants to department grantees for the first time, the department shall conduct preliminary fiscal reviews to determine the adequacy of the organization's accounting system, controls and procedures. These reviews shall be arranged and paid for by the department. The grantee shall conduct similar reviews on first-time subgrantees.
A single, organization-wide financial and compliance audit which includes an audit of participant eligibility shall be performed annually for appropriate grants or program years of all department grantees. The audit shall be conducted pursuant to the single audit act, 42 USC 6001
et seq.; OMB circulars A-110 and A-128; 20 CFR 96
; Government Auditing Standards and other applicable federal and state laws, rules and regulations. The grantee shall comply with the following:
The audit of grantees that are units of local government may be conducted as part of the agency's regular audit.
The audit shall be conducted by an independent CPA firm selected through a competitive procurement process. Department grantees may procure their own audit services or be included on the department's RFP for audit services.
For grants signed after July 1, 1989, the grantor shall conduct audits on each grantee that has received at least $25,000. The grantor may audit for-profit grantees.
The cost of the audit for department grantees shall be shared. The department shall pay a fixed amount per $1,000 audited and the department grantee shall pay the balance. The fixed dollar amount paid by the department shall be at least 50% of the total cost of the audits. Unless otherwise provided by agreement, the audit costs incurred by the grantee shall be assumed by the grantee.
(c) Audit resolution.
Pursuant to the PPM, the grantee shall comply with procedures for audit resolution. Based on the grantee's response to the final audit report, the department shall issue a statement of findings and determinations, including debts established due to disallowances. The grantee may contest the findings pursuant to s. DWD 820.16
. The grantee shall develop audit resolutions and debt collection procedures applicable to its subgrants.
(7) Participant eligibility determination and enrollment.
Participant eligibility determination is that part of employability assessment which shall be completed prior to enrolling participants in programs funded under this chapter. The grantee shall comply with eligibility determination and enrollment as follows:
(a) Eligibility determination.
The eligibility of new participants shall be determined by trained staff of the SSG, its designee or another grantee authorized by the department. The grantee's system of eligibility determination shall comply with the following:
The required forms shall be completed, including the application form, EDS EDF and as applicable, the certificate of continuing eligibility.
Reasonable safeguards against errors and omissions shall be established, including provisions for reimbursement of costs incurred because of erroneous determinations made with insufficient care.
The applicant information used to determine eligibility shall be current at the time of certification, and the information which serves as the basis for an applicant's eligibility shall be documentable, whether or not the certifying agency chooses to maintain the documentation on file.
(b) Participant selection.
Only applicants who have been certified eligible shall be selected for participation. When selecting participants, the grantee shall comply with the provisions for nondiscrimination and equal employment opportunity and prohibiting fraud and abuse in s. DWD 820.11 (3)
(c) Participant enrollment.
When enrolling an applicant or participant, the grantee shall comply with all applicable enrollment conditions pursuant to the PPM, personnel policies, training or worksite agreements and collective bargaining provisions. No applicant or participant may be enrolled into a program unless the grantee has the following:
Proof of eligibility, including a valid EDS EDF and, if applicable, a certificate of continuing eligibility pursuant to expiration dates and conditions in the PPM.
A signed letter of intent, grant or contract with the grantor that authorizes the enrollment of eligible applicants or participants.
(d) Ineligible participants.
The grantee shall immediately remove from its program any person who is found to be ineligible or whose certification is found to be invalid. The department may disallow costs incurred for enrollment of participants who have not been certified or who have been certified but are later found to have been ineligible.
(e) Certificates of continuing eligibility.
Pursuant to 29 USC 1661e
, a SSG may issue a certificate of continuing eligibility to any eligible dislocated worker who has applied for the program. The certificate shall be issued for the purpose of deferring the beginning of retraining or permitting participants to seek out and arrange their own retraining with service providers. The SSG shall comply with the following:
Standardized procedures and documents for the certificate of continuing eligibility shall be developed and included in the DWLAP.
The conditions, limitations and requirements shall be included on the face of the certificate of continuing eligibility and shall comply with 29 USC 1661e
and the PPM.
Records shall be maintained showing to whom the certificates have been issued, the dates of issuance and the ultimate disposition of the certificates.
(8) Participant reporting requirements.
Enrollment under this chapter shall be recorded pursuant to the cost categories and program activities in s. DWD 820.12 (7)
. The grantee shall comply with the following participant enrollment reporting requirements:
(a) Participant reports.
The grantee shall complete participant reports pursuant to the PPM. The reports shall include but not be limited to the grantee application form; SSG certificate of continuing eligibility; the department EDS EDF and SCTN forms, participant followup and quarterly verification reports; and DOL status reports.
(b) Data entry.
The SSG, its designee or another grantee authorized by the department shall provide EDS EDF and SCTN data entry of applicant characteristics, eligibility, enrollment, activity status, transfers, data changes and terminations pursuant to procedures and time limits in the PPM.
(c) Management reports.
The department shall provide EDS-participating grantees with monthly summary management reports specified by the department and with department approval, other specific reports requested by grantees. The grantee shall verify reports generated by EDS.
(d) Quarterly verification of eligibility.
The grantee authorized to determine eligibility shall conduct an eligibility verification at the end of each three-month period. Pursuant to the PPM, the verification shall be conducted on a sample of participants enrolled during the previous quarter. The participants selected for verification shall be drawn in a valid random sampling.
(e) Postprogram followup.
The grantee shall comply with postprogram measurement pursuant to 29 USC 1515
(g) and the PPM. The department shall draw a valid random sampling of participants for postprogram followup.
(f) Participant files.
The grantee shall maintain a participant file pursuant to the PPM. File records shall include written proof of eligibility which shall consist of a signed application and an EDS EDF. Other records shall include each EDS SCTN and related enrollment and termination records.
The grantee shall protect the confidentiality of individual participant records and may not divulge personal information about individual participants except as required for eligibility determination, participant enrollment, quarterly verification and audit or pursuant to s. DWD 820.11 (26) (a) 4.
(9) Needs-related payments.
The SSG shall establish a standard system for making needs-related payments that consists of a uniform set of procedures which may be operated by one or more service providers in the SSA. The system shall document the following:
The criteria and method of certifying eligibility for payment and computing the amount.
Payment only to eligible recipients who are enrolled and participating in training activities pursuant to sub. (11) (d)
(c) Records and reports.
Record maintenance of the issuance and distribution of payments, written notification to participants when payments are reduced or denied and preparation of required statistical and fiscal reports.
The detection and collection of overpayments.
The grantee shall conduct sufficient program, financial and compliance monitoring to ensure the performance of grant or contract terms by subgrantees and training sites. The system of monitoring developed by the grantee shall include the following:
(a) Measurement criteria.
The establishment of criteria by which to measure its performance and the performance of its subgrantees and contractors to ensure compliance with the grant, DWLAP, state plan, PPM, this chapter and other applicable laws, rules and regulations.
(b) Systematic reviews.
The systematic review of performance based on established criteria.
The assessment of findings and identification of any problems.
(d) Corrective action.
The prompt response to take any necessary corrective actions.
(e) Use of findings.
The use of findings in subsequent program planning and selection of contractors and subgrantees.
The maintenance of adequate records to verify that required monitoring, corrective action and follow-up have occurred.
(11) Program specifications.
The grantee shall maintain conditions of employment and training which are appropriate and reasonable for the geographic region, type of work and proficiency of the participant. When serving participants under this chapter, the grantee shall comply with the following:
All participants shall receive an orientation to nontraditional careers during their participation in programs.
(b) Job seeking.
The grantee shall provide a reasonable amount of time for job seeking to participants who are not assured of placement in unsubsidized employment at the end of their training. The grantee may terminate a participant who receives and refuses a job offer or offer of referral to a suitable job.
(c) Participant rights in subsidized employment.
The grantee shall comply with the provisions of subsidized employment as follows:
Participant wages in activities authorized under this chapter may not be less than the highest of the federal minimum wage as determined by the fair labor standards act, 29 USC 201
et seq.; the state minimum wage; or the prevailing rates of pay for individuals employed in similar occupations by the same employer.
Participant OJT wages shall be paid by the employer at the same rate, including periodic increases, as similarly situated employees but not less than the greater of the federal or state minimum wage.
All individuals employed in subsidized jobs shall be provided benefits and working conditions at the same level and to the same extent as other employees working a similar length of time and doing the same type of work. This shall include U.C. coverage.
(d) Participant training payments.
A participant may not receive payments, including needs-related payments, for training activities in which she or he fails to participate without good cause.
(e) Health and safety standards.
The grantee shall maintain appropriate standards of health and safety in work and training situations. Participants under 18 years of age may not be assigned to work in any occupation found to be hazardous pursuant to the fair labor standards act, 29 USC 201
(f) Notification of participant rights.
Each participant enrolled shall receive a written statement of his or her program rights and responsibilities pursuant to this subsection and the PPM, including but not limited to conditions of employment, training, job duties, benefits and complaint procedures.
(g) Coordination activities.
Pursuant to 29 USC 1661c
(f) and 20
. CFR 631.37, the grantee shall coordinate their dislocated worker programs with JTPA-funded youth, adult and veterans programs, the U.C. system and other programs, including but not limited to job service, trade adjustment assistance, education and training, economic development, social service, veterans administration and appropriate labor and employment programs.
(h) Training for demand occupations.
Except for basic and remedial education and literacy and English for non-English speakers, retraining services provided with funds available to a SSA shall be limited to those occupations in demand in the area or another area to which the participant is willing to relocate, or in sectors of the economy with a high potential for sustained demand or growth.
DWD 820.13 History
Cr. Register, February, 1990, No. 410
, eff. 3-1-90.
Grants, contracts and other agreements.
This section contains the requirements of grants, contracts and other agreements awarded under this chapter. All department grantees shall ensure that they and their subgrantees or contractors comply with the following terms:
(1) Cost-plus contracts.
The cost-plus-a-percentage-of-cost method of contracting whereby the contractor is reimbursed for costs plus a fixed percentage of costs may not be used.
(2) Less-than-arms-length agreements.
The department may allow agreements where one party is able to control or substantially influence the actions of the other. Less-than-arms-length agreements include but are not limited to those between the following:
Grantees under common control through common officers, directors or members.