TEGL13-00.pdf

ETA Advisory File Text

RESCISSIONS NoneEXPIRATION DATE December 31 2001 U.S. Department of Labor Employment and Training Administration Washington D.C. 20210 CLASSIFICATION WOTC WtW CORRESPONDENCE SYMBOL OWS DATE March 6 2001 TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 13-00 TO ALL STATE WORKFORCE LIAISONS ALL STATE EMPLOYMENT SECURITY AGENCIES ALL STATE WORKER ADJUSTMENT LIAISONS ALL ONE-STOP CENTER SYSTEM LEADS FROM LENITA JACOBS-SIMMONS Deputy Assistant Secretary SUBJECT Planning Guidelines for Employment Service ES Fiscal Year 2001 Cost Reimbursable Grants for Work Opportunity Tax Credit WOTC Welfare-to-Work Tax Credit WtW Programs. 1. Purpose . To provide planning estimates and guidance for Fiscal Year FY 2001 WOTC WtW programs under the Wagner-Peyser Act Annual Funding Agreement. 2. References . The Wagner-Peyser Act Section 7 d the Small Business Job Protection Act P.L. 104-188 the Taxpayer Relief Act of 1997 P.L. 105-34 the Tax and Trade Relief Extension Act of 1998 P.L. 105-277 the Ticket to Work and Work Incentives Improvement Act of 1999 P.L. 106-170 29 CFR Parts 93 96 97 and 98 and OMB Circular A-87. 3. Background . The WOTC WtW tax credits were reauthorized for a 30-month period through December 31 2001 retroactive to the credits expiration date of June 30 1999 by the Ticket to Work and Work Incentives Improvement Act of 1999 signed December 17 1999. State Employment Security Agencies SESAs are responsible for administering both tax credits including the certification process and for reporting on results. 4. Grant Officer Authority . Pursuant to Training and Employment Information Notice No. 24-99 grant officer authority for the ES -2- Base Formula allotments to States and the ES Cost Reimbursable Grants was transferred from the Employment and Training Administration ETA Regional Offices to the National Office. The National Office Grant Officer recently issued advance funding to all States under the new FY 2001 agreement and pursuant to a FY 2001 Continuing Resolution which authorized partial funding. Please note however that any remaining grant actions pertaining to pre-FY 2001 funds for the WOTC WtW tax credit programs will continue to be handled through Regional Office Grant Officers. 5. Work Opportunity Welfare-to-Work Tax Credits Activities . The ES National Activities spending plan includes 20 000 000 for the WOTC WtW programs. Of this total 500 000 is being withheld to pay estimated WOTC WtW postage costs. Of the remaining 19 500 000 20 000 will be allotted to the Virgin Islands and the balance will be distributed based on a 64 000 minimum allotment and a 95 stop- loss 120 stop-gain from the FY 2000 allotment share percentage based on a formula as follows 1 50 is allocated based on each State s relative share of total certifications issued for WOTC and for the WtW tax credit 2 30 is allocated based on each State s relative share of the civilian labor force CLF and 3 20 is allocated based on each State s relative share of the adult recipients of Temporary Assistance for Needy Families TANF . The data utilized for these factors reflect actual certifications reported for FY 2000 CY 1999 CLF averages and adult recipients of TANF for FY 1999. 6. General Administration . Regional Offices are responsible for field level review of the ES grants. This includes review and approval of State plans analysis of expenditures and performance data and on-site reviews. States are expected to administer WOTC WtW funds in accordance with the Act and applicable regulations and the terms and conditions of the Wagner-Peyser Act Annual Funding Agreement which include administrative requirements and cost principles of Federal Regulations at 29 CFR Part 97 and OMB Circular A-87. Further programs must also be administered in accordance with the policy and procedure guidance set forth in the second edition of ETA Handbook 408. Current ES Regulations at 20 CFR 658.400 Subpart E cover the complaint and appeals procedures. Other applicable regulatory provisions are incorporated in the grant plan Statement of Work attached . 7. Reporting . States are to plan for total expenditures exclusive of carry in funds by calendar quarter. A separate Financial Status Report SF-269 -- long form must be submitted quarterly by each State for each year of funds provided until such time as all funds have been expended or the period of availability for the WOTC WtW plan has expired whichever occurs -3- first. Expenditure reports one original and two copies are to be submitted to the appropriate ETA Regional Office.Timely submission of these reports is extremely important to ensure proper accounting of funds.Previous year fund balances will remain in the existing grant and should be expended under the current ETA Regional Office and State Master Agreementbefore any FY 2001 funds are expended. FY 2001 funds will be allocated and expended pursuant to the new Wagner-Peyser Act Annual Funding Agreement between the State and the ETA National Office. 8. Grant and Plan Effective Date . Plans should cover the twelve 12 month period from the start of FY 2001 i.e. October 1 2000 through September 30 2001. 9. Action Required . SESA Administrators are requested to a. Immediately transmit this planning issuance to the appropriate State staff. b. Submit three 3 copies of the FY 2001 WOTC WtW Annual Plan to the appropriate Regional Office. Plans should be prepared in accordance with Attachments I II and III Grant Procedures Allocation List and Plan Narrative Instructions and be submitted to the appropriate Regional Office by March 20 2001. The Plan must include i. Transmittal Letter ii. Application for Federal Assistance SF 424 iii. Budget Expenditure Plan SF 424 A - Section D only iv. Plan Narrative these plans should include only those activities that will be supported with FY 2001 funds. 10. Inquiries . Program questions may be directed to your Regional Office contact person or to Carmen Ortiz Office of Workforce Security Division of USES ALMIS at 202 693-2786. All questions regarding grant and financial issues should be directed to Gwendolyn Baron-Simms or Fred Tello at 202 693-3309 or 202 693-3333 respectively. 11. Attachments . I. Grant Procedures II. Allocations for FY 2001 III. WOTC WtW Plan Narrative Instructions Attachment I Grant Procedures A. Grant Agreements . The current Master Agreement pre- Program Year 2000 Fiscal Year 2001 established an ongoing grant relationship between the Department of Labor DOL and individual States to carry out responsibilities on behalf of the Department authorized under Section 7 d of the Wagner-Peyser Act. This agreement will remain in effect administered by the Regional Offices for purposes of expending prior year funds only. With the transfer of grant officer authority the ETA National Office has executed new Wagner-Peyser Act Annual Funding Agreements with each State to include both the base grant and cost reimbursable grant funds for PY 2000 and FY 2001. The Agreement includes a Standard Assurances and Certifications package to encompass most PY 2000 FY 2001 requirements. Notice of Obligation authority documents will be issued by the National Office Grant Officer based on Regional Office approval of required annual plans. B. Annual Plan . The WOTC WtW Annual Plan must include a transmittal letter an Application for Federal Assistance SF- 424 a Budget Expenditure Plan SF 424A Section D only and a Plan Narrative. Negotiations between the Grantee and the Regional Office will determine the acceptability of the Annual Plan. 1 Plans should cover a period of twelve 12 months from the start of FY 2001 i.e. October 1 2000 through September 30 2001. 2 States must submit three 3 copies of the FY 2001 WOTC WtW Annual Plan to the appropriate Regional Office. Plans should be submitted by March 20 2001. Please contact your Regional Office representative if there is a need for additional time. Plans should be prepared in accordance with Attachments I II and III Grant Procedures Allocations and Plan Narrative Instructions and be submitted to the appropriate Regional Office. 3 Regional Offices will coordinate the review of plans and negotiate work plans with the States. Each State is to prepare a plan which includes a description of the activities to be conducted in accordance with the information contained in Attachment III. C. FY 2001 Modifications . The Regional Office and the State may jointly modify the Annual Plan during the program year subject to the approval of the National Office Grant Officer. The plan modification must include a transmittal letter a revised plan narrative and a quarterly spending plan i.e. SF 424 A Section D only . Regional Offices are responsible for coordinating both funding adjustments and Annual Plan modifications. The Regional Office will have the authority to recommend fund adjustments where a State is not spending at agreed upon levels. When an adjustment is necessary a bilateral modification may be issued by the ETA Grant Officer. In the event that the Secretary of Labor may be required by future legislation to carry out other responsibilities not anticipated in the Annual Plan the States will be requested to submit a modification to the Annual Plan in order to carry out these additional duties. D. Financial Reconciliation . After the end of the grant period a financial reconciliation procedure will be conducted by the Regional Office to reconcile accounting records maintained by the State with the Department s original accounts. Attachment II FY 2001 State WOTC Allotments STATEFY 2001 CR through 12 5 00Balance of FY 2001 Formula AllotmentTotal FY 2001 Allotment Alabama 70 162 266 468 336 630 Alaska 12 692 51 308 64 000 Arizona 52 991 201 255 254 246 Arkansas 76 560 290 768 367 328 California 458 167 1 912 562 2 370 729 Colorado 41 112 156 140 197 252 Connecticut 51 937 197 252 249 189 Delaware 12 692 51 308 64 000 District of Columbia 12 692 51 308 64 000 Florida 151 661 575 994 727 655 Georgia 87 027 381 027 468 054 Hawaii 12 692 51 308 64 000 Idaho 12 692 51 308 64 000 Illinois 224 314 851 922 1 076 236 Indiana 59 763 255 022 314 785 Iowa 43 112 191 578 234 690 Kansas 28 733 109 124 137 857 Kentucky 63 927 242 790 306 717 Louisiana 107 334 407 641 514 975 Maine 14 153 53 752 67 905 Maryland 103 964 394 846 498 810 Massachusetts 88 877 337 544 426 421 Michigan 133 019 600 437 733 456 Minnesota 68 907 261 701 330 608 Mississippi 36 424 138 335 174 759 Missouri 94 527 359 005 453 532 Montana 12 692 51 308 64 000 Nebraska 23 324 88 582 111 906 Nevada 22 929 87 083 110 012 New Hampshire 12 692 51 308 64 000 STATEFY 2001 CR through 12 5 00Balance of FY 2001 Formula AllotmentTotal FY 2001 Allotment New Jersey 112 036 425 500 537 536 New Mexico 23 900 118 587 142 487 New York 270 814 1 028 524 1 299 338 North Carolina 89 564 453 240 542 804 North Dakota 12 692 51 308 64 000 Ohio 144 514 731 313 875 827 Oklahoma 34 364 130 509 164 873 Oregon 50 764 192 799 243 563 Pennsylvania 219 008 831 768 1 050 776 Puerto Rico 18 308 92 650 110 958 Rhode Island 12 692 51 308 64 000 South Carolina 44 258 168 087 212 345 South Dakota 12 692 51 308 64 000 Tennessee 79 783 403 745 483 528 Texas 204 635 892 592 1 097 227 Utah 18 892 71 752 90 644 Vermont 12 692 51 308 64 000 Virginia 81 520 309 606 391 126 Washington 101 609 385 900 487 509 West Virginia 23 637 89 769 113 406 Wisconsin 84 266 320 035 404 301 Wyoming 12 692 51 308 64 000 Virgin Islands 3 956 16 044 20 000 TOTAL 3 861 056 15 638 944 19 500 000 Postage 94 944 405 056 500 000 TOTAL ALLOTMENT 3 956 000 16 044 000 20 000 000 Attachment III Work Opportunity Tax Credit WOTC Welfare-to-Work WtW Tax Credit Plan Narrative Instructions Statement of Work . State agencies will submit detailed narrative descriptions of their plans for carrying out the following functions 1. Determining eligibility of individuals as members of targeted groups on a timely basis and performing a quality review by a second staff person for each determination within 48 hours 2. Issuing employer certifications denials or notices of invalidation for tax credits on a timely basis and in accordance with the policies and procedures set forth in the second edition of ETA Handbook 408 3. Establishing and implementing an Appeals Resolution and Policy Clarification System in accordance with the guidelines provided in the second edition of ETA Handbook 408 Chapter VIII Section F pp VIII-4-8 4. Establishing and maintaining appropriate forms review record keeping and reporting capability related to the orderly management of WOTC WtW certification requests 5. Establishing and maintaining an orderly system for regularly verifying the eligibility of a random sample of individuals certified under the WOTC WtW programs and initiating effective corrective action when appropriate as indicated by results of such activities 6. Negotiating formal cooperative agreements with Workforce Investment Areas under the Workforce Investment Act WIA State Vocational Rehabilitation agencies and other State and local agencies and organizations for the purposes of issuing conditional certifications where appropriate and or augmenting WOTC WtW marketing activities 7. Negotiating formal cooperative agreements with appropriate State agencies including the Departments of Health and Human Services Agriculture and Housing and Urban Development to expedite verification of information provided to the SESAs by participating target group members 8. Training as appropriate State and participating agency staff and providing monitoring and technical assistance to these agencies as appropriate and 9. Cooperating with employment and training organizations already working with the private sector such as Job Corps Centers veterans organizations Job Service Employer Committees JSECs and Workforce Investment Boards to inform employers about requirements for use of WOTC WtW. Special Assurances 1. Provisions of the Internal Revenue Code Section 51 as amended must be adhered to in conducting the program. By law SESAs are designated to provide WOTC WtW program services. 2. Conditions and standards of performance for administration and operation of the program shall be guided by the second edition of ETA Handbook No. 408 for the Work Opportunity Tax Credit program. The State shall maintain a verification and quality control program in accordance with Handbook guidance. 3. Fund utilization will be reviewed against the quarterly spending plan and when expenditures are substantially below plan ETA may deobligate funds for redistribution.