TEGL 05-24.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Grants Management CORRESPONDENCE SYMBOL OGM DATE October 8 2024 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 05-24 TO STATE WORKFORCE AGENCIES STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE LIAISONS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS ALL ETA FEDERAL ASSISTANCE RECIPIENTS AND SUBRECIPIENTS FROM JOS JAVIER RODR GUEZ Assistant Se cretary SUBJECT Implementation of the 2024 Revis ions to the Office of M anagement and Budget OMB Guidance for Federal Financial Assistance 1.Purpose. To provide guidance to Employment and Training Administration ETA grant recipients and subrecipients on the implementation of OMB s Guidance for Federal Financial Assistance which goes into effect on October 1 2024. The final guidance revises several parts of 2 CFR subtitle A OMB Guidance for Federal Financial Assistance formerly OMB Guidance for Grants and Agreements . This includes revisions to 2 CFR part 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards Uniform Guidance. 2.Action Requested. Please disseminate this guidance to all staff responsible for the management and administration of ETA f ederal assistance awards. 3. Summary and Background. a.Summary This guidance provides information regarding the implementation of the 2024 revisions to the Uniform Guidance. b. Background The Uniform Guidance was first promulgated by OMB on December 13 2014 78 FR 78590 . OMB issued its Final Rule entitled Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards the Uniform Guidance which adopted the requirements from the 2014 OMB Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards and outlined Department of Labor s DOL exceptions in Title 2 Part 2900. DOL adopted and gave regulatory effect to the OMB guidance supplementing it with additional DOL-specific policies and procedures for financial assistance 2 administration on December 19 2014 79 FR 76081 . These DOL -specific rules of grants administration are codified at 2 CFR part 2900 titled Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards. See Training and Employment Guidance L etter TEGL No. 15-14 Implementation of the New Uniform Guidance Regulations . OMB revised the 2014 Uniform Guidance on August 13 2020 2020 revisions . On February 9 2023 OMB issued a Notice of Request for Information in the Federal Reg ister which explained OMB was beginning the process of seeking public input for its proposed further revisions to OMB s Uniform Guidance in T itle 2 of the CFR . See 88 FR 8480 February 9 2023 . Subsequently on October 5 2023 OMB issued a Notification of Proposed Guidance in the Federal Register which explained that OMB was proposing revisions to parts 1 25 170 175 180 182 183 and 200 to title 2 of the CFR. See 88 FR 69390 Oct ober 5 2023 . On April 22 2024 OMB issued OMB Guidance for Federal Financial Assistance the 2024 r evisions to the Uniform Guidance which requires federal agencies to adopt and implement the changes by October 1 2024. See 89 FR 30046 April 22 2024 . In response to OMB s recent revisions to the Uniform Guidance DOL is updating its grant terms and conditions to conform to those changes. 4. Implementation. a. Effective Dates The 2024 revisions to the Uniform Guidance apply to all federal grant awards issued on or after October 1 2024 including any amendments to grant awards that result in the award of additional funds or any incremental funding awarded by ETA on or after October 1 2024. Additionally ETA has included terms and conditions consistent with the 2024 revisions to the Uniform Guidance for grants awarded in September 2024 that have a period of performance beginning on or after October 1 2024. Grant recipients with awards made before October 1 2024 and th at have a period of performance beginning prior to October 1 2024 must continue to follow the Uniform Guidance revisions published in 2020. See Guidance for Grants and Agreements . Under the W or kforce Innovation and Opportunity Act WIOA ETA makes P rogram Year PY WIOA Youth funds available to State Workforce Agencies SWA from appropriated funds that become available on April 1. WIOA Adult and Dislocated Worker programs are funded from two separate appropriations . The first appropriation for the Adult and Dislocated Worker programs becomes available on July 1 this portion is commonly referred to as base funds and the second appropriation for the Adult and Dislocated Worker programs becomes available on October 1 this portion is commonly referred to as advance funds because they are provided in the appropriations act passed during the fiscal year immediately before the fiscal year when the funds become available . For example funds for PY 2024 that are available on Oct ober 1 2024 were appropriated during Fiscal Year FY 2024 but not made available until October which is in FY 2025 and are called the FY 2025 advance funds. 3 The PY 2024 formula funds that SWAs receive for WIOA Youth funds and the base funds that SWAs receive for WIOA Adult and Dislocated Worker prior to October 1 2024 will continue to follow the earlier Uniform Guidance revisions published in 2020. However the FY 2025 advance funding for WIOA Adult and Dislocated Worker programs awarded and issued on or after October 1 2024 must comply with the 2024 Uniform Guidance revisions. States must take into consideration that they will be operating PY 2024 WIOA formula funds in accordance with both the 2020 and 2024 revisions of the Uniform Guidance. b. Implementation by ETA G rant Recipients and Subrecipients The 2024 revisions require grant recipients and their subrecipients to review and update their financial and administrative policies procedures and systems. In certain circumstances recipients may be simultaneously managing multiple f ederal awards some of which were issued before October 1 2024 and are thus subject to the 2020 revisions to the Uniform Guidance and other federal awards that were issued under the new 2024 revisions to the Uniform Guidance. While it may be necessary for recipients to implement certain systematic changes across their organization to implement new grant awards incorporating the 2024 revisions to the Uniform Guidance recipients must also keep in mind that the flexibilities provided by the 2024 revisions to the Uniform Guidance are not available for f ederal awards issued before October 1 2024. Those awards remain subject to the Uniform Guidance revisions published in 2020. Pass-through entities PTE must adhere to the revisions applicable to their original grant awards when releasing funds as a subaward . Funds awarded by ETA with a period of performance starting prior to October 1 2024 must follow the 2020 revisions to the Uniform Guidance. Therefore all subawards under those awards must also follow the 2020 revisions regardless of whether those subawards are issued before or after October 1 2024. Subawards must follow the revisions applicable to the original grant award . Also for PTEs receiving award s after October 1 the 2024 revisions to the Uniform Guidance do not prevent PTEs from applying more stringent requirements to their subrecipients as was permitted by the prior version of the Uniform Guidance. The PTE is required to provide technical assistance and monitor its subaward s in accordance with the 2024 revisions to the Uniform Guidance. During this transition period grant recipients are required to engage in discussions with f ederal staff on the specific changes they must make to their f ederal awards. c. Applicability for Audits The updated audit and major program determination threshold of 1 000 000 applies to non-federal entities with fiscal years that begin on or after October 1 2024. Fo r f iscal years beginning before October 1 2024 auditors must adhere to the 2020 revisions to the Uniform Guidance. Additionally direct grant recipients must submit their single audit reporting packages to the Federal Audit Clearinghouse FAC which is now maintained by the U.S. General Services Administration . Please refer to the website for instructions on how to submit and review single audit reporting packages. The 4 cognizant agency for audit or oversight agency for audit in the absence of a cognizant agency for audit may authorize an extension when the nine-month timeframe would place an undue burden on the auditee . d. USAspending.gov and Federal Funding Accountability and Transparency Act FFATA Recipients must continue implementing efficiencies in the post-award administration and management of their f ederal grant awards to reduce burden while promoting accountability and transparency and delivering program outcomes for the American people. Maintaining high-quality and accurate federal financial assistance award and subaward data is essential for providing transparency with respect to how federal funding is spent. The prime recipient continues to be responsible for reporting subaward data to the FFATA of 2006 Subaward Reporting System FSRS that is subsequently displayed on USAspending.gov. Federal award and subaward descriptions are critical to informing the public of federal spending by providing the public with an understanding of the purpose of the federal grant award provided to the recipient. Recipients should include descriptions of a ward-specific activities and avoid using acronyms or f ederal or agency- specific terminology. e. U CFR Part 2900 D OL is updating the DOL -specific rules of grants administration at 2 CFR part 2900 to align with the 2024 revisions to the Uniform Guidance. Information regarding an updated 2 CFR part 2900 will be announced shortly. 5. I . Questions regarding this guidance should be directed to the appropriate ETA Regional Office. 6. R . Office of Management and Budget OMB 2 CFR Parts 1 25 170 175 180 182 183 184 and 200. Guidance for Federal Financial Assistance Final Rule. April 22 2024. https www.federalregister.gov documents 2024 04 22 2024-07496 guidance-for - federal-financial-assistance. OGuidance for Grants and Agreements Final Rule. August 13 2020. https www.federalregister.gov documents 2020 08 13 2020-17468 guidance-for -grants- and-agreements. OUniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards Final Rule. December 26 2013. https www.federalregister.gov documents 2013 12 26 2013-30465 uniform- administrative-requirements-cost-principles-and-audit-requirements-for-federal-awards. 5 D Cost Principles and Audit Requirements for Federal Awards. April 27 2021. https www.federalregister.gov documents 2021 04 27 2021-08731 uniform- administrative-requirements-cost-principles-and-audit-requirements-for-federal-awards. D Cost Principles and Audit Requirements for Federal Awards Final Rule. December 19 2014. https www.govinfo.gov content pkg FR-2014-12-19 pdf 2014- 28697.pdf. T TEGL 15-14 Implementation of the New Uniform Guidance Regulations. December 19 2014. https www.dol.gov agencies eta advisories training-and- employment-guidance-letter- no-15-14. 7. A . N A.