(b) Bonding coverage.
The grantee shall provide bonding coverage for every officer, director, agent, or employee authorized to receive or deposit DETP funds in program accounts, or to issue financial documents, checks or other instruments of payment for grant costs. The amount of bonding shall be the lower of the following:
(c) Bonding cancellation.
The grantee shall immediately notify the DETP if the bond is cancelled or reduced.
(d) Liability for disallowed costs.
The grantee shall assume liability for any costs disallowed by the DETP because of violations of provisions in applicable laws, this chapter, the PPM, or the individual grant or contract. The DETP reserves the right to withhold payment of costs from current WisJOBS grants if the grantee fails to comply with the provisions of its grant agreement.
(20) Program specifications.
The grantee assures that it shall comply with the following program specifications:
(a) Qualified business priorities.
In allocating funds, the grantee shall give priority to qualified businesses which meet the criteria authorized under s. 101.35 (10), Stats.
(b) Identification of qualified businesses.
The grantee shall develop written procedures for identifying qualified businesses, including those that meet the qualified business priorities authorized under s. 101.35 (10), Stats.
(c) Grant diversion funding.
The grantee shall document the results of its attempts to obtain AFDC grant diversion funding authorized under s. 101.35 (10) (c), Stats.
(d) County area emphasis.
The grantee shall document the results of its attempts to subsidize wages for positions in areas of the greatest unemployment authorized under s. 101.35 (10) (d), Stats.
DWD 830.06 History
Cr. Register, May, 1989, No. 401
, eff. 6-1-89.
General principles affecting allowability of costs.
Grantee expenses shall meet the following general criteria in order to be allowable:
(a) Necessary and reasonable.
Expenses shall be necessary and reasonable for proper and efficient administration of the WisJOBS program, be allocable thereto, and not be a general expense required to carry out the overall responsibilities of the grantee;
(b) Authorized or not prohibited.
Expenses shall be authorized or not prohibited under state or local laws, rules or regulations;
(c) Conform to limitations or exclusions.
Expenses shall conform to any limitations or exclusions set forth in applicable law, this chapter, or the PPM;
(d) Consistent with grantee activity.
Expenses shall be consistent with policies, regulations, and procedures that apply uniformly to other activities of the agency of which the grantee is a part;
(e) Consistent with accepted accounting principles.
Expenses shall be accorded consistent treatment through application of generally accepted accounting principles appropriate to the circumstances; and
(2) Cost limits.
The grantee shall comply with the following cost limits:
A grantee may not expend more than 10% of total grant expenditures for administrative costs associated with the WisJOBS program. Compliance will be determined as of the end of the grant.
(b) Subsidized wages.
A grantee shall expend at least 80% of total grant expenditures to subsidize wages for clients who meet the criteria authorized under s. 101.35 (10) (b), Stats.
Compliance will be determined as of the end of the grant.
DWD 830.07 History
Cr. Register, May, 1989, No. 401
, eff. 6-1-89.
The following requirements apply to all WisJOBS grantees:
(1) Access, retention and custodial requirements for records.
The grantee shall comply with the following requirements for the access, retention and custody of records:
(a) Access to records.
The grantee shall maintain and provide access to WisJOBS records and cooperate with monitoring, auditing and evaluation activities described as follows:
The grantee shall maintain records and provide access to them as necessary for the DETP to assure that funds are being expended in accordance with the purposes and provisions of the WisJOBS PPM, and to assist the DETP in determining the extent to which the program meets the requirements of the PPM, this chapter and s. 106.20
The grantee shall give the state of Wisconsin and the DETP, through any authorized representative, the access to and the right to examine all records, books, papers, or documents related to its WisJOBS grant and contracts.
The grantee shall cooperate with monitoring, auditing and evaluation activities regarding its WisJOBS program, including unannounced monitoring visits conducted by the DETP.
The grantee shall retain and make records available to the public in accordance with applicable laws governing open records and freedom of information.
(b) Retention of records.
The grantee shall retain the following records for three years beyond resolution of any applicable litigation, audit findings, or claims:
All records pertinent to each client's enrollment in the WisJOBS program, including wage information, dates of entry and termination, and documentation of eligibility.
All records pertinent to its WisJOBS grant agreement, including financial and statistical records and supporting documents.
(c) Custody of records.
The grantee shall provide custody of WisJOBS records. The grantee's custodial requirements may be discontinued in accordance with the following:
The DETP may request transfer of certain records to its custody from the grantee if the grantee is no longer able to maintain custody of those records.
The grantee shall provide the DETP with 30 days advance notice if it intends to discontinue maintenance of its records before the end of the mandatory retention periods indicated above.
(2) Standards for financial management systems.
The grantee assures it shall comply with the following standards for financial management systems:
(a) Written procedures.
The grantee shall establish written procedures documenting its financial management system.
(b) Financial management systems.
The grantee's financial management systems shall provide for the following:
Effective internal controls to adequately safeguard assets from waste, fraud and abuse and from unauthorized purposes and inefficient use; promote accuracy and reliability in the accounting records; and encourage and measure compliance with this document, state and local laws and regulations, where applicable.
Accounting records that adequately identify the source and application of DETP funds and are properly supported by source documentation. These records shall contain information pertaining to DETP grant awards, authorizations, revenues, expenditures, assets, obligations, and unobligated balances.
Determining the reasonableness, allowability and allocability of expenses in accordance with the provisions for cost determination in this chapter and the terms of the grant or other agreement.
Accurate, current and complete disclosure of the financial results of each grant in accordance with the DETP reporting requirements identified in the PPM.
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 DETP and the disbursement by the grantee. The DETP may require corrective action to reduce excess cash if the grantee consistently fails to conform to DETP guidelines for excess cash in the PPM. The DETP may charge the grantee an interest assessment on funds that are in excess of immediate needs. The DETP may seek recovery of funds in the event of serious abuse.
Deposit of DETP funds in interest bearing account(s) insured by the FDIC or the FSLIC. Account balances exceeding FDIC or FSLIC coverage must be collaterally secured. Grantees are not required to account to the DETP for interest income and may retain interest earned on DETP funds.
(c) Corrective action.
The DETP may require corrective action by a specific date if the grantee's financial management system fails to meet the standards set forth in this subsection. Grantees who fail to take corrective action in the time given are subject to having costs withheld or disallowed.
(3) Invoicing procedures.
The grantee shall submit requests in accordance with the procedures in the PPM to receive cash advances or reimbursements.
(4) Financial reporting requirements.
The grantee shall comply with the following financial reporting requirements:
(a) Financial reports.
The grantee shall submit accurate and timely financial reports as required by the PPM. Such reports include statements of accrued expenditures, aged accounts receivable reports and settlement and closeout reports.
(b) Late and inaccurate reports.
In the event that required reports are not accurate or are not submitted on a timely basis, the DETP may withhold payment of the grantee's costs incurred under the current grant or subsequent active grants until the required reports are received.
(c) Additional reports.
The grantee may be required to submit additional reports requested by DETP for the performance of its legal responsibilities.
The grantee shall comply with the following monitoring requirements:
(a) Program and financial monitoring.
The grantee shall conduct sufficient program, financial and compliance monitoring to ensure that each employer complies with the terms of its contract and the appropriate laws, this chapter and the PPM.
(b) Monitoring records.
The grantee shall maintain adequate records to verify that required monitoring, corrective action and follow-up have occurred.
(6) Procurement standards.
These procurement standards apply to the procurement of property, supplies, equipment, consultants, and professional services. The grantee shall comply with the following procurement standards:
(a) Written procedures.
The grantee shall establish written procurement procedures that, to the maximum extent practical, provide for the following:
1. Open and free competition.
This includes the requirement that for a particular procurement, a grantee who develops specifications, the statement of work, an invitation for bids, a RFP, or evaluates or recommends such proposals, shall not be eligible to compete for the procurement.
Consideration of both price and the contractor's potential ability to meet specifications.
Avoidance of purchasing unnecessary or duplicative goods or services.
Consideration of small businesses; minority owned businesses; and female owned businesses.
Review of compliance with the terms of each grant or contract initiated by the grantee.
Each grantee shall maintain documentation showing compliance with its own written procurement procedures.
(c) Grantee-employer agreement.
Prior to the payment of a wage subsidy, a grantee-employer agreement shall be signed by both parties. The agreement shall comply with the provisions required in the PPM.
(d) Code of conduct.
Each grantee shall maintain a written code of conduct that shall govern the performance of its officers, employees or agents engaged in the administration of contracts and WisJOBS grants. The code of conduct shall provide the following:
Forbid the solicitation or acceptance of gratuities, favors, or anything of monetary value from contractors or grantees or potential contractors or grantees.
(e) Less than arm's length agreements.
In some cases, there may be agreements which are made at less than arm's length, that is, where one party to the agreement is able to control or substantially influence the actions of the other. These agreements may be considered allowable at the discretion of the DETP. These agreements include, but are not limited to, those between the following:
Grantees under common control through common officers, directors, or members; or
A grantee and a director, trustee, officer, or key employee of the grantee or his or her immediate family either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest.
(7) Conditions for wage subsidy payments from grantees to employers.
The grantee shall comply with the conditions for wage subsidy payments from grantees to employers in accordance with the PPM and s. 101.35 (5), Stats.
(8) Audit and audit resolution.
The grantee shall comply with the following provisions for audit and audit resolution:
(a) Units of government.
Grantees that are units of government shall have a single organization-wide financial, compliance and eligibility audit, including this grant, performed by an independent CPA firm and conducted in accordance with the single audit act and the state single audit guidelines.
(b) Non-units of government.
Grantees that are not units of government shall procure an annual financial, compliance and eligibility audit of these funds performed by a qualified CPA firm in accordance with the office of management and budget Circular A-110, uniform administrative requirements for grants and agreements with institutions of higher education, hospitals and other nonprofit organizations, and Wisconsin single-audit guidelines.
(c) Audit costs.
The cost of the audit shall be borne by the grantee.
(d) Audit resolution process.
The grantee shall comply with the audit resolution process in accordance with the PPM.
(e) Subgrant audits.
Grantees are responsible for developing similar audit resolution and debt collection procedures applicable to their subgrants.
(9) Debt collection.
The grantee shall comply with the following provisions for debt collection:
(a) Debt collection procedures.
Grantees shall develop and institute debt collection procedures to aggressively collect debts.