20 C.F.R. PART 645—PROVISIONS GOVERNING WELFARE-TO-WORK GRANTS
Title 20 - Employees' Benefits
Authority: 42 U.S.C. 603 (a)(5)(C)(viii).
Source: 66 FR 2711, Jan. 11, 2001, unless otherwise noted.
(a) Subpart A establishes regulatory provisions that apply to the Welfare-to-Work (WtW) programs conducted at the State and at the local area levels. (b) Subpart B provides general program requirements applicable to all WtW formula and competitive funds. The provisions of this subpart govern how WtW funds must be spent, who is eligible to participate in the program, allowable activities and their relationship to TANF, Governor's projects for long-term recipients, administrative and fiscal provisions, and program oversight requirements. This subpart also addresses worker protections and the establishment of a State grievance system. (c) Subpart C sets forth additional administrative standards and procedures for WtW Formula Grants, such as matching requirements and reallotment procedures. (d) Subpart D sets forth the conditions under which the Governor may request a waiver to designate an alternate administering agency, sets forth the formula elements that must be included in the within-State distribution formula, the submission of a State annual plan, the factors for measuring State performance, and the roles and responsibilities of the States and the local boards or alternate administering agencies. (e) Subpart E outlines general conditions and requirements for the WtW Competitive Grants. (f) Subpart F sets forth the administrative appeals process. (g) Regulatory provisions applicable to the Indian and Native American Welfare-to-Work Program (INA WtW) are found at 20 CFR part 646. The purposes of the WtW program are: (a) To facilitate the placement of hard-to-employ welfare recipients and certain noncustodial parents into transitional employment opportunities which will lead to lasting unsubsidized employment and self-sufficiency; (b) To provide a variety of activities, grounded in TANF's “work first” philosophy, to prepare individuals for, and to place them in, lasting unsubsidized employment; (c) To provide for a variety of post-employment and job retention services which will assist the hard-to-employ welfare recipient and certain noncustodial parents to secure lasting unsubsidized employment; (d) To provide targeted WtW funds to high poverty areas with large numbers of hard-to-employ welfare recipients. The following definitions apply under this part: Act means Title IV, Part A of the Social Security Act, 42 U.S.C. 601–619. Adult means an individual who is not a minor child. Chief Elected Official(s) (CEOs) means: (1) The chief elected official of the sole unit of general local government in the service delivery area, (2) The individual or individuals selected by the chief elected officials of all units of general local government in such area as their authorized representative, or (3) In the case of a service delivery area designated under section 101(a)(4)(A)(iii) of JTPA, the representative of the chief elected official for such area (as defined in section 4(4)(C) of JTPA) or as defined in section 101 of the Workforce Investment Act of 1988. Competitive grants means those grants in which WtW funds have been awarded by the Department under a competitive application process to local governments, PICs, and private entities (such as community development corporations, community-based and faith-based organizations, disability community organizations, and community action agencies) who apply in conjunction with a PIC or local government. Department or DOL means the U.S. Department of Labor. Employment activities means the activities enumerated at §645.220(b). ETA means the Employment and Training Administration of the U.S. Department of Labor. Fiscal year (FY) means any 12-month period ending on September 30 of a calendar year. Formula grants means those grants in which WtW funds have been allotted to each Welfare-to-Work State, based on a formula prescribed by the Act, which equally considers States' shares of the national number of poor individuals and of adult recipients of assistance under TANF. The State is required to distribute not less than 85 percent of the allotted formula grant funds to service delivery areas in the State; and the State may retain not more than 15 percent for projects to help long-term recipients of assistance enter unsubsidized employment. Unless otherwise specified, the term “formula grant” refers to the 85 percent and 15 percent funds. Governor means the Chief Executive Officer of a State. IV-D Agency (Child Support Enforcement) means the organizational unit in the State that has the responsibility for administering or supervising the administration of the State plan under title IV-D of the Act (SSA). Job Training Partnership Act or JTPA means Public Law (Pub. L.) 97–300, as amended, 29 U.S.C. 1501, et seq. Local area means a local workforce investment area designated under section 116 of the Workforce investment Act of 1998, or a service delivery area designated under section 101 of the Job Training partnership Act, as appropriate. Local workforce investment board (local board) means a local board established under section 117 of the Workforce Investment Act, or a Private Industry Council established under section 102 of the Job Training Partnership Act (JTPA), which performs the functions authorized at section 103 of the JTPA, or an alternate administering agency designated under section 405(a)(5)(A)(vii)(II) of the Act and §645.400 of this part. Minor child means an individual who has not attained 18 years of age, or has not attained 19 years of age and is a full-time student in a secondary school (or in the equivalent level of vocational or technical training). MOE means maintenance of effort. Under TANF, States are required to maintain a certain level of spending on welfare based on “historic” FY 1994 expenditure levels (Section 409(a)(7) of the Act). PIC means a Private Industry Council established under Section 102 of the Job Training Partnership Act, which performs the functions authorized at Section 103 of the JTPA. Political subdivision of a State means a unit of general purpose local government, as provided for in State laws and/or Constitution, which has the power to levy taxes and spend funds and which also has general corporate and police powers. Private entity means any organization, public or private, which is not a local board, PIC or alternate administering agency or a political subdivision of a State. PRWORA means the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law (Pub. L.) 104–193, which established the TANF program. SDA means a service delivery area designated under section 101 of the Job Training Partnership Act or a local area designated under section 116 of the Workforce Investment Act of 1998, as appropriate. Secretary means the Secretary of Labor. Separate State program means a program operated outside of TANF in which the expenditures of State funds may count for TANF MOE purposes. State means the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the US Virgin Islands, Guam, and American Samoa, unless otherwise specified. State TANF Program means those funds expended under the State Family Assistance Grant (SFAG), the basic block grant allocated to the States under Section 403(a)(1) of the Act. TANF means Temporary Assistance for Needy Families Program established under PRWORA. TANF MOE means the expenditure of State funds that must be made in order to meet the Temporary Assistance for Needy Families Maintenance of Effort requirement. Unemployed means the individual is without a job and wants and is available for work. WIA means the Workforce Investment Act of 1998 (Pub. L. 105–220)(29 U.S.C. 2801 et seq.). WtW means Welfare-to-Work. WtW State means those States that the Secretary of Labor determines have met the five conditions established at Section 403(a)(5)(A)(ii) of the Act. Only States that are determined to be WtW States can receive WtW grant funds. WtW statute means those provisions of the Balanced Budget Act of 1997 containing certain amendments to PRWORA and establishing the new Welfare-to-Work program, amending Title IV of the Social Security Act, (codified at 42 U.S.C. 601–619). (a) Local boards or alternate administering agencies, in coordination with CEO's should establish policies, interpretations, guidelines and definitions to implement provisions of the WtW statute to the extent that such policies, interpretations, guidelines and definitions are not inconsistent with the WtW statute or regulations or with State policies. (b) States should establish policies, interpretations, guidelines and definitions to implement provisions of the WtW statute to the extent that such policies, interpretations, guidelines and definitions are not inconsistent with the WtW statute or regulations. (c) The Secretary, in consultation with other Federal Agencies, as appropriate, may publish guidance on interpretations of statutory and regulatory provisions. State and local policies, interpretations, guidelines and definitions that are consistent with interpretations contained in such guidance will be considered to be consistent with the WtW statute for purposes of this section. The legislative changes made by the 1999 amendments: (a) Are effective on November 29, 1999, except as provided in paragraphs (b) and (c) of this section; (b) Provisions relating to the eligibility of participants for WtW competitive grants are effective on January 1, 2000; (c)(1) Provisions relating to the eligibility of participants for WtW formula grants are effective on July 1, 2000, except that expenditures from allotments to the States, as discussed in §645.135 of this subpart, must not have been made before October 1, 2000, for individuals who would not have been eligible under the criteria in effect before the changes made by the 1999 Amendments; (2) Provisions authorizing pre-placement vocational educational training and job training for WtW formula grants, at §645.220(b) of this part, are effective on July 1, 2000, except that expenditures from allotments to the States, as discussed in §645.135 of this subpart, must not have been made before October 1, 2000. States and local areas may expend matching funds beginning July 1, 2000. States and local areas may incur unpaid obligations within the normal course of business, beginning July 1, 2000, provided that the timing of those transactions ensures that drawdown of federal Welfare-to-Work formula funds to liquidate the obligations did not occur until October 1, 2000. This subpart provides general program and administrative requirements for WtW formula funds, including Governors' funds for long-term recipients of assistance, and for competitive grant funding (section 403(a)(5)). The terms “entity” and “project”, in the statutory phrase “an entity that operates a project”, means: (a) For WtW substate formula funds: (1) “Entity” means the PIC, local board (or the alternate administering agency designated by the Governor and approved by the Secretary pursuant to §645.400 of this part) which administers the WtW substate formula funds in a local area(s). This entity is referred to in §§645.211 through 645.225 of this part as the “operating entity.” (2) “Project” means all activities, administrative and programmatic, supported by the total amount of the WtW substate formula funds allotted to the entity described in section (a)(1) of this paragraph. (b) For WtW Governors' funds for long-term recipients of assistance: (1) “Entity” means the agency, group, or organization to which the Governor has distributed any of the funds for long-term recipients of assistance, as described in §645.410 (b) and (c) of this part. This entity is referred to in §§645.211 through 645.225 of this part as the “operating entity.” (2) “Project” means all activities, administrative and programmatic, supported by the total amount of one discrete award of WtW Governors' funds for long-term recipients of assistance awarded to the entity described in section (b)(1) of this paragraph. (c) For competitive WtW funds: (1) “Entity” means an eligible applicant, as described in §645.500 of this part, which is awarded a competitive WtW grant. This entity is referred to in §§645.211 through 645.225 of this part as the “operating entity.” (2) “Project” means all of the activities, administrative and programmatic, supported by the total amount of one discrete WtW competitive grant awarded to the entity described in section (c)(1) of this paragraph (section 403(a)(5)(C)). An operating entity, as described in §645.210 of this subpart, may spend not more than 30 percent of the WtW funds allotted to or awarded to the operating entity to assist individuals who meet the “other eligibles” eligibility requirements under §645.213 of this subpart. The remaining funds allotted to or awarded to the operating entity are to be spent to benefit individuals who meet the “general eligibility” and/or “noncustodial parents” eligibility requirements, under §645.212 of this subpart. (section 403(a)(5)(C) of the Act). An individual may be served under this provision if: (a)(1) (S)he is currently receiving TANF assistance under a State TANF program, and/or its predecessor program, for at least 30 months, although the months do not have to be consecutive; or (2) (S)he will become ineligible for assistance within 12 months due to either Federal or State-imposed time limits on the receipt of TANF assistance. This criterion includes individuals (as well as children of noncustodial parents) exempted from the time limits due to hardship under section 408(a)(7)(C) of the Act or due to a waiver because of domestic violence under section 402(a)(7) of the Act, who would become ineligible for assistance within 12 months without the exemption or waiver; (b) (S)he is no longer receiving TANF assistance because (s)he has reached either the Federal five-year limit or a State-imposed time limit on receipt of TANF assistance (section 403(a)(5)(C) of the Act); or (c) (S)he is a noncustodial parent of a minor child if: (1) The noncustodial parent is: (i) “Unemployed,” as defined in §645.120 of this part, (ii) “Underemployed,” as defined by the State in consultation with local boards and WtW competitive grantees, or (iii) “Having difficulty paying child support obligations,” as defined by the State in consultation with local boards and WtW competitive grantees and the State Child Support Enforcement (IV-D) Agency, and (2) At least one of the following applies: (i) The minor child, or the custodial parent of the minor child, meets the long-term recipient of TANF requirements of paragraph (a) of this section; (ii) The minor child is receiving or is eligible for TANF benefits and services; (iii) The minor child received TANF benefits and services during the preceding year; or (iv) The minor child is receiving or eligible for assistance under the Food Stamp program, the Supplemental Security Income program, Medicaid, or the Children's Health Insurance Program; and (3) The noncustodial parent is in compliance with the terms of a written or oral personal responsibility contract meeting the requirements of §645.215 of this subpart. (d) For purposes of determining whether an individual is receiving TANF assistance in paragraphs (a)(1) of this section and §645.213(a), TANF assistance means any TANF benefits and services for the financially needy according to the appropriate income and resource criteria (if applicable) specified in the State TANF plan. Any individual may be served under this provision if (s)he: (a) Is currently receiving TANF assistance (as described in §645.212(d)) and either: (1) Has characteristics associated with, or predictive of, long-term welfare dependence, such as having dropped out of school, teenage pregnancy, or having a poor work history. States, in consultation with the operating entity, may designate additional characteristics associated with, or predictive, of long term-welfare dependence; or (2) Has significant barriers to self-sufficiency, under criteria established by the local board or alternate administering agency. (b) Was in foster care under the responsibility of the State before s(he) attained 18 years of age and is at least 18 but not 25 years of age or older at the time of application for WtW. Eligible individuals include those who were recipients of foster care maintenance payments as defined in section 475(4) under part E of the Social Security Act, or (c)(1) Is a custodial parent with income below 100 percent of the poverty line, determined in accordance with the most recent HHS Poverty Guidelines established under section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (Pub. L. 97–35), including any revisions required by such section, applicable to a family of the size involved. (2) For purposes of paragraph (c)(1) of this section, income is defined as total family income for the last six months, exclusive of unemployment compensation, child support payments, and old-age and survivors benefits received under section 202 of the Social Security Act (42 U.S.C. 402). (3) A custodial parent with a disability whose own income meets the requirements of a program described in paragraph (c)(1) or (c)(3)(i) but who is a member of a family whose income does not meet such requirements is considered to have met the requirements of paragraph (c)(1) of this section. (a) The operating entity, as described in §645.210(a)(1), (b)(1), and (c)(1) of this subpart, is accountable for ensuring that WtW funds are spent only on individuals eligible for WtW projects. (b) The operating entity must ensure that there are mechanisms in place to determine WtW eligibility for individuals who are receiving TANF assistance. These mechanisms: (1) Must include arrangements with the TANF agency to ensure that a WtW eligibility determination is based on information, current at the time of the WtW eligibility determination, about whether an individual is receiving TANF assistance, the length of receipt of TANF assistance, and when an individual may become ineligible for assistance, pursuant to §§645.212 and 645.213 of this part (section 403(a)(5)(I)(A)(ii)(dd)). (2) May include a determination of WtW eligibility for characteristics of long-term welfare dependence and for significant barriers to self-sufficiency under §645.213(a) of this subpart, based on information collected by the operating entity and/or the TANF agency up to six months prior to the WtW eligibility determination. (c) The operating entity must ensure that there are mechanisms in place to determine WtW eligibility for individuals who have reached the time limit on receipt of TANF, under §645.212(b) of this subpart; individuals who are not receiving TANF assistance (i.e., noncustodial parents under §645.212(c) of this subpart; individuals who are former foster care recipients under §645.213(b) of this subpart, and low-income custodial parents under §645.213(c) of this subpart). The mechanisms for establishing noncustodial parent eligibility must include a process for applying the preference required under §645.215(a) of this subpart, and may include an objective standard to be used as a presumptive determination for establishing the eligibility of the minor child for the programs specified in §645.212(c)(2)(iv) of this subpart. (a) In programs that serve noncustodial parents, the operating entity must give preference to those noncustodial parents who qualify under §645.212(c)(2)(i) of this subpart over other noncustodial parents. The preference for admission into the program applies only to noncustodial parents and not to any other group eligible under the “general eligibility” provisions of §645.212(a) or (b) or the “other eligibles” provisions of §645.213. The preference does not require that the category of noncustodial parents eligible under §645.212(c)(2)(i) must be exhausted before any other category of eligible noncustodial parents may be served. The operating entity may establish a process that gives preference to noncustodial parents eligible under §645.212(c)(2)(i) and that also provides WtW services to noncustodial parents eligible under the other provisions of §645.212(c)(2). (b) In order to protect custodial parents and children who may be at risk of domestic violence, the operating entity must consult with domestic violence prevention and intervention organizations in the development of its WtW project serving noncustodial parents; and must not require the cooperation of the custodial parent as a condition of participation in the WtW program for either parent; and (c) The operating entity must ensure that personal responsibility contracts: (1) Take into account the employment and child support status of the noncustodial parent; (2) Include all of the following parties: (i) The noncustodial parent, (ii) The operating entity, and (iii) The agency responsible for administering the State Child Support Enforcement program as described under Title IV-D of the Act, unless the operating entity demonstrates to the Secretary of Labor with written documentation that it is not able to coordinate with the State IV-D agency; (3) Include the following elements: (i) A commitment by the noncustodial parent to cooperate: (A) In the establishment of paternity (if the participant is male) of the minor child at the earliest opportunity, through voluntary acknowledgment or other procedures, and (B) In the establishment of a child support order; (ii) A commitment by the noncustodial parent to cooperate in the payment of child support for the minor child. This commitment may include a modification of an existing support order to take into account: (A) The ability of the noncustodial parent to pay such support; and (B) The participation of the noncustodial parent in the WtW program, and (iii) A commitment by the noncustodial parent to participate in employment or related activities that will enable the noncustodial parent to make regular child support payments. For noncustodial parents who have not reached 20 years of age, such activities may include: (A) Completion of high school, (B) Earning a general equivalency degree, or (C) Participating in other education directly related to employment; (iv) A description of the services to be provided to the noncustodial parent under the WtW program; (4) Contain a commitment by the noncustodial parent to participate in the services that are described in the personal responsibility contract under paragraph (c)(3)(iv) of this section; and (5) Be entered into no later than thirty (30) days after the individual is enrolled in and is receiving services through a WtW project funded under this part, unless the operating entity has determined that good cause exists to extend this period. This extension may not extend to a date more than ninety (90) days after the individual is enrolled in and receiving services through a WtW project funded under this part. Entities operating WtW projects may use WtW funds for the following: (a) Job readiness activities, subject to the requirements of §645.221 of this subpart. (b) Vocational educational training or job training. A participant is limited to six calendar months of such training if (s)he is not also employed or participating in an employment activity, as described in paragraph (c) of this section. (c) Employment activities which consist of any of the following: (1) Community service programs; (2) Work experience programs; (3) Job creation through public or private sector employment wage subsidies; and (4) On-the-job training. (d) Job placement services subject to the requirements of §645.221 of this subpart. (e) Post-employment services which are provided after an individual is placed in one of the employment activities listed in paragraph (c) of this section, or in any other subsidized or unsubsidized job, subject to the requirements of §645.221 of this subpart. Post-employment services include such services as: (1) Basic educational skills training; (2) Occupational skills training; (3) English as a second language training; and (4) Mentoring. (f) Job retention services and support services that are provided after an individual is placed in a job readiness activity, as specified in paragraph (a) of this section; in vocational education or job training, as specified in paragraph (b) of this section; in one of the employment activities, as specified in paragraph (c) of this section, or in any other subsidized or unsubsidized job. WtW participants who are enrolled in Workforce Investment Act (WIA) or JTPA activities, such as occupational skills training, may also receive job retention and support services funded with WtW monies while they are participating in WIA activities. Job retention and support services can be provided with WtW funds only if they are not otherwise available to the participant. Job retention and support services include such services as: (1) Transportation assistance; (2) Substance abuse treatment (except that WtW funds may not be used to provide medical treatment); (3) Child care assistance; (4) Emergency or short term housing assistance; and (5) Other supportive services. (g) Individual development accounts which are established in accordance with the Act. (h) Outreach, recruitment, intake, assessment, eligibility determination, development of an individualized service strategy, and case management may be incorporated in the design of any of the allowable activities listed in paragraphs (a) through (g) of this section (section 403(a)(5)(C) of the Act). (a) Local boards and PIC's must provide the following activities and services through vouchers or contracts with public or private providers: the job readiness activities described in §645.220(a) of this subpart, the job placement services described in §645.220(d) of this subpart, and the post-employment services described in §645.220(e) of this subpart. Job placement services provided with contracts or vouchers are subject to the payment requirements at §645.230(a)(3) of this subpart. If an operating entity is not a local board or a PIC, it may provide such services directly. (b) Local boards and PIC's which are directly providing job readiness activities or job placement and/or post-employment services must conform to the requirement in paragraph (a) of this section, to provide such services through contract or voucher, by February 12, 2001. (a) Activities provided through WtW must be coordinated effectively at the State and local levels with activities being provided through TANF (section 403(a)(5)(A)(vii)(II)). (b) The operating entity must ensure that there is an assessment of skills, prior work experience, employability, and other relevant information in place for each WtW participant. Where appropriate, the assessment performed by the TANF agency or JTPA should be used for this purpose. (c) The operating entity must ensure that there is an individualized strategy for transition to unsubsidized employment in place for each participant which takes into account participant assessments, including the TANF assessment and any JTPA assessment. Where appropriate, the TANF individual responsibility plan (IRP), a WIA individual employment plan, or a JTPA individual service strategy should be used for this purpose. (d) Coordination of resources should include not only those available through WtW and TANF grant funds, and the Child Care and Development Block Grant, but also those available through other related activities and programs such as the WIA or JTPA programs (One-Stop systems), the State employment service, private sector employers, labor organizations, business and trade associations, education agencies, housing agencies, community development corporations, transportation agencies, community-based and faith-based organizations, disability community organizations, community action agencies, and colleges and universities which provide some of the assistance needed by the targeted population (section 402(a)(5)(A)). (a) Uniform fiscal and administrative requirements. (1) State, local, and Indian tribal government organizations are required to follow the common rule “Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments” which is codified in the DOL regulations at 29 CFR part 97. (2) Institutions of higher education, hospitals, and other non-profit organizations and other commercial organizations are required to follow OMB Circular A–110 which is codified in the DOL regulations at 29 CFR part 95. (3) In addition to the requirements at 29 CFR 95.48 and 29 CFR 97.36(i), contracts or vouchers for job placement services supported by funds provided for this program must include a provision to require that at least one-half ( (4) In addition to the requirements at 29 CFR 95.42 and 29 CFR 97.36(b)(3) which address codes of conduct and conflict of interest issues related to employees, it is also required that: (i) A local board or alternate administering agency member shall neither cast a vote on, nor participate in, any decision making capacity on the provision of services by such member (or any organization which that member directly represents), nor on any matter which would provide any direct financial benefit to that member or a member of his immediate family; and (ii) Neither membership on the local board or alternate administering agency nor the receipt of WtW funds to provide training and related services shall be construed, by itself, to violate these conflict of interest provisions. (5) The addition method, described at 29 CFR 97.25(g)(2), is required for the use of all program income earned under WtW grants. When the cost of generating program income has been charged to the program, the gross amount earned must be added to the WtW program. However, the cost of generating program income must be subtracted from the amount earned to establish the net amount of program income available for use under the grants when these costs have not been charged to the WtW program. (6) Any excess revenue over costs incurred for services provided by a governmental or non-profit entity must be included in program income earned. (b) Audit requirements. All recipients and subrecipients of Department of Labor WtW awards must comply with the audit requirements codified at 29 CFR part 96. (1) All governmental and non-profit organizations must follow the audit requirements of OMB Circular A–133 which is codified at 29 CFR part 99. This requirement is imposed at 29 CFR 97.26 for governmental organizations and at 29 CFR 95.26 for institutions of higher education, hospitals, and other non-profit organizations. (2) The Department is responsible for audits of commercial organizations which are direct recipients of WtW grants. (3) Commercial organizations which are WtW subrecipients and which expend more than the minimum level specified in OMB Circular A–133 ($300,000 as of April 15, 1999) must have either an organization-wide audit conducted in accordance with 29 CFR part 99 or a program specific financial and compliance audit. (c) Allowable costs/cost principles. The DOL regulations at 29 CFR 95.27 and 29 CFR 97.22 identify the Federal principles for determining allowable costs which each kind of recipient and subrecipient must follow. For those selected items of cost requiring prior approval, the authority to grant or deny approval is delegated to the Governor. (1) State, local, and Indian tribal government organizations must determine allowability of costs in accordance with the provisions of OMB Circular A–87, “Cost Principles for State and Local Governments.” (2) Non-profit organizations must determine allowability of costs in accordance with OMB Circular A–122, “Cost Principles for Non-Profit Organizations.” (3) Institutions of higher education must determine allowability of costs in accordance with OMB Circular A–21, “Cost Principles for Education Institutions.” (4) Hospitals must determine allowability of costs in accordance with the provisions of Appendix E of 45 CFR Part 74, “Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals.” (5) Commercial organizations and those non-profit organizations listed in Attachment C to OMB Circular A–122 must determine allowability of costs in accordance with the provisions of the Federal Acquisition Regulation (FAR) at 48 CFR Part 31. (d) Information technology costs. In addition to the allowable cost provisions identified in §645.235 of this subpart, the costs of information technology—computer hardware and software—will only be allowable under WtW grants when such computer technology is “Year 2000 compliant.” To meet this requirement, information technology must be able to accurately process date/time data (including, but not limited to, calculating, comparing and sequencing) from, into and between the twentieth and twenty-first centuries, and the years 1999 and 2000. The information technology must also be able to make leap year calculations. Furthermore, “Year 2000 compliant” information technology when used in combination with other technology shall accurately process date/time data if the other information technology properly exchanges date/time data with it. (e) Prohibition on Construction or Purchase of Facilities. WtW federal funds may not be used to pay for the construction or purchase of facilities or buildings. (f) Prohibition on Business Start-up Costs. WtW federal funds may not be used to cover the costs of business start-up and/or capital ventures. (g) Government-wide debarment and suspension, and government-wide drug-free workplace requirements. All WtW grant recipients and subrecipients are required to comply with: (1) Government-wide requirements for debarment and suspension which are codified at 29 CFR part 98, subparts A through E; and (2) The government-wide requirements for a drug-free workplace. Recipients and subrecipients are required to comply with 29 CFR part 98, subpart F, except that the definition of “grantee” shall be read to include recipients and subrecipients. (h) Restrictions on Lobbying. All WtW grant recipients and subrecipients are required to comply with the restrictions on lobbying which are codified in the DOL regulations at 29 CFR Part 93. (i) Nondiscrimination. All WtW grant recipients and subrecipients are required to comply with the nondiscrimination provisions codified in the DOL regulations at 29 CFR parts 31 and 32. In addition, 29 CFR part 37 applies to recipients of WtW financial assistance who are also WIA recipients and applies to recipients of WtW financial assistance who operate programs that are part of the One-Stop system established under the Workforce Investment Act, to the extent that the WtW programs and activities are being conducted as part of the One-Stop delivery system. Furthermore, WtW programs that are part of larger State agencies that are recipients of WIA title I financial assistance must also comply with the provisions of 29 CFR part 37. For purposes of this paragraph, the term “recipient” has the same meaning as the term is defined in 29 CFR part 37. That part also contains participant rights related to nondiscrimination. (j) Nepotism. (1) No individual may be placed in a WtW employment activity if a member of that person's immediate family is engaged in an administrative capacity for the employing agency. (2) To the extent that an applicable State or local legal requirement regarding nepotism is more restrictive than this provision, such State or local requirement shall be followed. (a) Formula grant funds: The maximum time limit for the expenditure of a given fiscal year allotment is three years from the effective date of the Federal grant award to the State. The maximum time limit will be allowed and will be specified in the Department's formula grant document for each fiscal year of funds provided to the State. Any remaining funds that have not been expended at the end of the expenditure period must be returned to the Department in accordance with the applicable closeout procedures for formula grants. (b) Competitive grant funds: The maximum time limit for the expenditure of these funds is three years from the effective date of award, but will, in all cases, be determined by the grant period and the terms and conditions specified in the Federal grant award agreement (including any applicable grant modification documents). Any remaining funds that have not been expended at the end of the approved grant period must be returned to the Department in accordance with the applicable closeout procedures for competitive grants (section 503(a)(5)(C)(vii)). (a) Administrative cost limitation (section 404(b)(1)).—(1) Formula grants to states. Expenditures for administrative purposes under WtW formula grants to States are limited to fifteen percent (15%) of the grant award. (2) Competitive grants. The limitation on expenditures for administrative purposes under WtW competitive grants will be specified in the grant agreement but in no case shall the limitation be more than fifteen percent (15%) of the grant award. (3) Although administrative in nature, costs of information technology—computer hardware and software—needed for tracking and monitoring of WtW program, participant, or performance requirements, are excluded from the administrative cost limit calculation. (b) The costs of administration are that allocable portion of necessary and allowable costs associated with those specific functions identified in paragraph (c) of this section for the administration of the WtW program and which are not related to the direct provision of services to participants. These costs can be both personnel and non-personnel and both direct and indirect. (c) The costs of administration are the costs associated with performing the following functions: (1) Performing overall general administrative functions and coordination of those functions under WtW including: (i) Accounting, budgeting, financial and cash management functions; (ii) Procurement and purchasing functions; (iii) Property management functions; (iv) Personnel management functions; (v) Payroll functions; (vi) Coordinating the resolution of findings arising from audits, reviews, investigations and incident reports; (vii) Audit functions; (viii) General legal services functions; and (ix) Developing systems and procedures, including information systems, required for these administrative functions; (2) Performing oversight and monitoring responsibilities related to WtW administrative functions, (3) Costs of goods and services required for administrative functions of the program, including goods and services such as rental or purchase of equipment, utilities, office supplies, postage, and rental and maintenance of office space; (4) Travel costs incurred for official business in carrying out administrative activities or the overall management of the WtW system; and (5) Costs of information systems related to administrative functions (for example, personnel, procurement, purchasing, property management, accounting and payroll systems) including the purchase, systems development and operating costs of such systems. (d)(1) Only that portion of the costs of WtW grantees that are associated with the performance of the administrative functions described in paragraph (c) of this section and awards to subrecipients or vendors that are solely for the performance of these administrative functions are classified as administrative costs. All other costs are considered to be for the direct provision of WtW activities and are classified as program costs. (2) Personnel and related non-personnel costs of staff who perform both administrative functions specified in paragraph (c) of this section and programmatic services or activities are to be allocated as administrative or program costs to the benefitting cost objectives/categories based on documented distributions of actual time worked or other equitable cost allocation methods. (3) Specific costs charged to an overhead or indirect cost pool that can be identified directly as a program cost may be charged as a program cost. Documentation of such charges must be maintained. (4) Except as provided at paragraph (d)(1) of this section, all costs incurred for functions and activities of subrecipients and vendors are program costs. (5) Costs of the following information systems including the purchase, systems development and operating (e.g., data entry) costs are charged to the program category. (i) Tracking or monitoring of participant and performance information; (ii) Employment statistics information, including job listing information, job skills information, and demand occupation information; and (iii) Local area performance information. (a) General. State formula and other direct competitive grant recipients must report financial and participant data in accordance with revised instructions that will be issued by the Department after consultation with the Secretary of Health and Human Services, States, and organizations that represent State or local governments. Reports must be submitted to the Department quarterly. Existing WtW financial reporting instructions and formats are available on the WtW web site at http://wtw.doleta.gov/linkpages/tegltein.htm. The Internet reporting system for WtW grantees is accessible at http://www.etareports.doleta.gov. (b) Subrecipient reporting. A State formula or other direct competitive grant recipient may impose different forms or formats, shorter due dates, and more frequent reporting requirements on subrecipients. However, the recipient is required to meet the reporting requirements imposed by the Department. (c) Financial reports. Each grant recipient must submit financial reports to the Department. Reported expenditures and program income must be on the accrual basis of accounting and cumulative by fiscal year of appropriation. If the recipient's accounting records are not normally kept on the accrual basis of accounting, the recipient must develop accrual information through an analysis of the documentation on hand. (d) Participant reports. Each grant recipient must submit participant reports to the Department. Participant data must be aggregate data, and, for most data elements, must be cumulative by fiscal year of appropriation. (e) Due dates. Financial and participant reports are due no later than 45 days after the end of each quarter. A final financial and participant report is required 90 days after the expiration of a funding period or the termination of grant support. (a) The Secretary may monitor all recipients and subrecipients of all grants awarded and funds expended under WtW. Federal oversight will be conducted primarily at the State level for formula grants and at the recipient level for competitive grants. (b) The Governor must monitor local boards (or other approved administrative entities) funded under the State's formula allocated grants on a periodic basis for compliance with applicable laws and regulations. The Governor must develop and make available for review a State monitoring plan. (a) Resolution of subrecipient level findings. (1) The WtW grantee is responsible for the resolution of findings that arise from its monitoring reviews, investigations and audits (including OMB Circular A–133 audits) of subrecipients. (2) A State or competitive grantee, as appropriate, must use the audit resolution, debt collection and appeal procedures that it uses for other Federal grant programs. (3) If a State or competitive grantee, as appropriate, does not have such procedures, it must prescribe standards and procedures for the WtW grant program. (b) Resolution of State level findings. (1) The Secretary is responsible for the resolution of findings that arise from Federal audits, monitoring reviews, investigations, incident reports, and recipient level OMB Circular A–133 audits. (2) The Secretary will use the DOL audit resolution process, consistent with the Single Audit Act of 1996 and OMB Circular A–133. (3) A final determination issued by a grant officer pursuant to this process may be appealed to the DOL Office of Administrative Law Judges under the procedures at §645.800. (c) Resolution of nondiscrimination findings. Findings arising from investigations or reviews conducted under nondiscrimination laws shall be resolved in accordance with those laws and the applicable implementing regulations. (a) All participants in WtW programs under this part shall have such rights as are available under all applicable Federal, State and local laws prohibiting discrimination, and their implementing regulations, including: (1) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.); (2) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); (3) The Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and (4) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.). (b) Participants in work activities, as defined in section 407(a) of the Social Security Act, operated with WtW funds, shall not be discriminated against because of gender. Participants alleging gender discrimination may file a complaint using the State's grievance system procedures as described in §645.270 of this subpart (section 403(a)(5)(J)(iii)) of the Act). Participants alleging gender discrimination in WtW programs conducted by One-Stop partners as part of the One-Stop delivery system may file a complaint using the complaint processing procedures developed and published by the State in accordance with the requirements of 29 CFR 37.70–37.80. (c) Complaints alleging discrimination in violation of any applicable Federal, State or local law, such as Title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), the Pregnancy Discrimination Act (42 U.S.C. 2000e (paragraph k)), or Section 188 of the Workforce Investment Act of 1998 (29 U.S.C. 2938), as well as those listed in paragraph (a) of this section, shall be processed in accordance with those laws and the implementing regulations. (d) Questions about or complaints alleging a violation of the nondiscrimination laws in paragraph (a) of this section may be directed or mailed to the Director, Civil Rights Center, U.S. Department of Labor, Room N–4123, 200 Constitution Avenue, NW, Washington, D.C. 20210 for processing. (a) Participants in an employment activity operated with WtW funds, as defined in §645.220 of this part, are subject to the same health and safety standards established under State and Federal law which are applicable to similarly employed employees, of the same employer, who are not participants in programs under WtW. (b) Participants alleging a violation of these health and safety standards may file a complaint pursuant to the procedures contained in §645.270 of this part (section 403(a)(5)(J)(ii)). (a) An adult participating in an employment activity operated with WtW funds, as described in §645.220 (b) and (c) of this subpart, may fill an established position vacancy subject to the limitations in paragraph (c) of this section. (b) An employment activity operated with WtW funds, as described in §645.220(c) of this subpart, must not violate existing contracts for services or collective bargaining agreements. Where such an employment activity would violate a collective bargaining agreement, the appropriate labor organization and employer must provide written concurrence before the employment activity is undertaken. (c) An adult participating in an employment activity operated with WtW funds, as described in §645.220(c) of this subpart, must not be employed or assigned: (1) When any other individual is on layoff from the same or any substantially equivalent job within the same organizational unit; (2) If the employer has terminated the employment of any regular, unsubsidized employee or otherwise caused an involuntary reduction in its workforce with the intention of filling the vacancy so created with the WtW participant; and, (3) If the employer has caused an involuntary reduction to less than full time in hours of any employee in the same or substantially equivalent job within the same organizational unit. (d) Regular employees and program participants alleging displacement may file a complaint pursuant to §645.270 of this part (section 403(a)(5)(J)(i)). (a) The State shall establish and maintain a grievance procedure for resolving complaints from: (1) Regular employees that the placement of a participant in an employment activity operated with WtW funds, as described in §645.220 of this part, violates any of the prohibitions described in §645.265 of this part; and (2) Program participants in an employment activity operated with WtW funds, as described in §645.220 of this part, that any employment activity violates any of the prohibitions described in §§645.255(d), 645.260, or 645.265 of this part. (b) Such grievance procedure should include an opportunity for informal resolution. (c) If no informal resolution can be reached within the specified time as established by the State as part of its grievance procedure, such procedure shall provide an opportunity for the dissatisfied party to receive a hearing upon request. (d) The State shall specify the time period and format for the hearing portion of the grievance procedure, as well as the time period by which the complainant will be provided the written decision by the State. (e) A decision by the State under paragraph (d) of this section may be appealed by any dissatisfied party within 30 days of the receipt of the State's written decision, according to the time period and format for the appeals portion of the grievance procedure as specified by the State. (f) The State shall designate the State agency which will be responsible for hearing appeals. This agency shall be independent of the State or local agency which is administering, or supervising the administration of the State TANF and WtW programs. (g) No later than 120 days of receipt of an individual's original grievance, the State agency, as designated in paragraph (f) of this section, shall provide a written final determination of the individual's appeal. (h) The grievance procedure shall include remedies for violations of §§645.255(d), 645.260, and 645.265 of this part which may continue during the grievance process and which may include: (1) Suspension or termination of payments from funds provided under this part; (2) Prohibition of placement of a WtW participant with an employer that has violated §§645.255(b), 645.260, and 645.265 of this part; (3) Where applicable, reinstatement of an employee, payment of lost wages and benefits, and reestablishment of other relevant terms, conditions, and privileges of employment; and, (4) Where appropriate, other equitable relief (section 403(a)(5)(J)(iv)). (i) Participants alleging gender discrimination by WtW programs that are not part of the One-Stop system may file a complaint using the grievance system procedures described above. Participants alleging gender discrimination by WtW programs that are part of the One-Stop system may file a complaint using the procedures developed by the State under the WIA nondiscrimination regulations at 29 CFR 37.70–37.80. (a) A State is entitled to receive two (2) dollars of Federal funds for every one (1) dollar of State match expenditures, up to the amount available for allotment to the State based on the State's percentage for WtW formula grant for the fiscal year. The State is not required to provide a level of match necessary to support the total amount available to it based on the State's percentage for WtW formula grant. However, if the proposed match is less than the amount required to support the full level of Federal funds, the grant amount will be reduced accordingly (section 403(a)(5)(A)(i)(I)). (b) States shall follow the match or cost-sharing requirements of the “Common Rule” Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (codified for DOL at 29 CFR 97.24). Paragraphs (b)(1)(i) and (ii), (b)(3), and (b)(4) and (c)(1) of this section are in addition to the common rule requirements. Also, paragraphs included in the common rule which relate to the use of donated buildings and other real property as match have been excluded from this provision. (1) Only costs that would be allowable if paid for with WtW grant funds will be accepted as match. (i) Because the use of Federal funds is prohibited for construction or purchase of facilities or buildings except where there is explicit statutory authority permitting it, costs incurred for the construction or purchase of facilities or buildings shall not be acceptable as match for a WtW grant. (ii) Because the costs of construction or purchase of facilities or buildings are unallowable as match, the donation of a building or property as a third party in-kind contribution is also unallowable as a match for a WtW grant. (2) A match or cost-sharing requirement may be satisfied by either or both of the following: (i) Allowable costs incurred by the grantee, subgrantee or a cost type contractor under the assistance agreement. This includes allowable cost borne by non-Federal grants or by others and cash donations from non-Federal third parties. (ii) The value of third party in-kind contributions applicable to the FY period to which the cost-sharing or matching requirement applies. (3) No more than seventy-five percent (75%) of the total match expenditures may be in the form of third party in-kind contributions. (4) Match expenditures must be recorded in the books of account of the entity that incurred the cost or received the contribution. These amounts may be rolled up and reported as aggregate State level match. (c) Qualifications and exceptions— (1) The matching requirements may not be met by the use of an employer's share of participant wage payments (e.g., employer share of OJT wages). (2) Costs borne by other Federal grant agreements. A cost-sharing or matching requirement may not be met by costs borne by another Federal grant. This prohibition does not apply to income earned by a grantee or subgrantee from a contract awarded under another Federal grant. (3) General revenue sharing. For the purpose of this section, general revenue sharing funds distributed under 31 U.S.C. 6702 are not considered Federal grant funds. (4) Cost or contributions counted towards other Federal cost-sharing requirements. Neither costs nor the values of third party in-kind contributions may count towards satisfying a cost-sharing or matching requirement of a grant agreement if they have been or will be counted towards satisfying a cost-sharing or matching requirement of another Federal grant agreement, a Federal procurement contract, or any other award of Federal funds. (5) Costs financed by program income. Costs financed by program income, as defined in 29 CFR 97.25, shall not count towards satisfying a cost-sharing or matching requirement unless they are expressly permitted in the terms of the assistance agreement. (This use of general program income is described in 29 CFR 97.25(g)). (6) Services or property financed by income earned by contractors. Contractors under a grant may earn income from the activities carried out under the contract in addition to the amounts earned from the party awarding the contract. No costs of services or property supported by this income may count toward satisfying a cost-sharing or matching requirement unless other provisions of the grant agreement expressly permit this kind of income to be used to meet the requirement. (7) Records. Costs and third party in-kind contributions counting towards satisfying a cost-sharing or matching requirement must be verifiable from the records of grantees and subgrantee or cost-type contractors. These records must show how the value placed on third party in-kind contributions was derived. To the extent feasible, volunteer services will be supported by the same methods that the organization uses to support the allocability of regular personnel costs. (8) Special standards for third party in-kind contributions. (i) Third party in-kind contributions count towards satisfying a cost-sharing or matching requirement only where, if the party receiving the contributions were to pay for them, the payments would be allowable costs. (ii) Some third party in-kind contributions are goods and services that, if the grantee, subgrantee, or contractor receiving the contribution had to pay for them, the payments would have been an indirect costs. Cost sharing or matching credit for such contributions shall be given only if the grantee, subgrantee, or contractor has established, along with its regular indirect cost rate, a special rate for allocating to individual projects or programs the value of the contributions. (iii) A third party in-kind contribution to a fixed-price contract may count towards satisfying a cost-sharing or matching requirement only if it results in: (A) An increase in the services or property provided under the contract (without additional cost to the grantee or subgrantee) or (B) A cost savings to the grantee or subgrantee. (iv) The values placed on third party in-kind contributions for cost-sharing or matching purposes must conform to the rules in the succeeding sections of this part. If a third party in-kind contribution is a type not treated in those sections, the value placed upon it must be fair and reasonable. (d) Valuation of donated services. (1) Volunteer services. Unpaid services provided to a grantee or subgrantee by individuals must be valued at rates consistent with those ordinarily paid for similar work in the grantee's or subgrantee's organization. If the grantee or subgrantee does not have employees performing similar work, the rates must be consistent with those ordinarily paid by other employers for similar work in the same labor market. In either case, a reasonable amount for fringe benefits may be included in the valuation. (2) Employees of other organizations. When an employer other than a grantee, subgrantee, or cost-type contractor furnishes free of charge the services of an employee in the employee's normal line of work, the services must be valued at the employee's regular rate of pay exclusive of the employee's fringe benefits and overhead costs. If the services are in a different line of work, paragraph (d)(1) of this section applies. (e) Valuation of third party donated supplies and loaned equipment or space. (1) If a third party donates supplies, the contribution must be valued at the market value of the supplies at the time of donation. (2) If a third party donates the use of equipment or space in a building but retains title, the contribution must be valued at: (i) the fair rental rate of the equipment or space for property donated by non-governmental entities, or (ii) a depreciation or use-allowance based on the property's market value at the time it was donated for property donated by governmental entities. In its State plan, a State must provide a written estimate of planned matching expenditures and describe the process by which the funds will be tracked and reported to ensure that the State meets its projected match (section 403(a)(5)(A)(i)(I)). (a) If State match expenditures do not satisfy the requirements of the FY grant award by the end of the three year fund availability period, the grant award amount will be reduced by the appropriate corresponding amount (i.e., the grant will be reduced by two (2) dollars for each one (1) dollar shortfall in State matching funds) when the grant is closed out. (b) Compliance with the fifteen percent (15%) administrative cost limit will be recalculated based on the FY formula grant award amount, as reduced under paragraph (a) of this section. (a)(1) The Governor may include in the State's WtW Plan a waiver request to select an agency other than the local board or PIC to administer the program for one or more local areas or SDA's in a State; or (2) When the Governor determines the local board or alternate administering agency has not coordinated its expenditures with the expenditure of funds provided to the State under TANF, pursuant to section 403(a)(5)(A)(vii)(II) of the Act, the Governor must request a waiver. (b) The Governor shall bear the burden of proving that the designated alternate administering agency, rather than the local board or other alternate administering agency, would improve the effectiveness or efficiency of the administration of WtW funds in the SDA. The Governor's waiver request shall include information to meet that burden. The Governor shall provide a copy of the waiver request and any supporting information submitted to the Secretary to the local board and CEO of the local area for which an alternative administering agency is requested. (c) The local board and CEO shall have fifteen (15) days in which to submit his or her written response to the Department. The local board and CEO shall provide a copy of such response to the Governor. (d) The Secretary will assess the waiver information submitted by the Governor, including input from the local board and CEO in reaching the decision whether to permit the use of an alternate administering agency. (e) The Secretary shall approve a waiver request if she determines that the Governor has established that the designated alternate administering agency, rather than the local board or other administering agency, will improve the effectiveness or efficiency of the administration of WtW funds provided for the benefit of the local area. (f) Where an alternate administering agency is approved by the Secretary, such administrative entity shall coordinate with the CEO for the applicable local area(s) regarding the expenditure of WtW grant funds in the local area(s). (g) The decision of the Secretary to approve or deny a waiver request will be issued promptly and shall constitute final agency action. (a) Of the WtW funds allotted to the State, not less than 85 percent of the State allotment must be distributed to the local areas or SDA's in the State. (1) The State shall prescribe a formula for determining the amount of funds to be distributed to each local area or SDA in the State using no factors other than the three factors described in paragraphs (2) and (3) of this paragraph; (2) The formula prescribed by the Governor must include as one of the formula factors for distributing funds the provision at section 403(a)(5)(A)(vi)(I)(aa) of the Act. The Governor is to distribute funds to a local area or SDA based on the number by which the population of the area with an income that is less than the poverty line exceeds 7.5 percent of the total population of the area, compared to all such numbers in all such areas in the State. The Governor must assign a weight of not less than 50 percent to this factor; (3) The Governor shall distribute the remaining funds, if any, to the local area or SDA's utilizing only one or both of the following factors: (i) the local area or SDA's share of the number of adults receiving assistance under TANF or the predecessor program in the local area or SDA for 30 months or more (whether consecutive or not), relative to the number of such adults residing in the State; (ii) the local area or SDA's share of the number of unemployed individuals residing in the local area or SDA, relative to the number of such individuals residing in the State. (4) If the amount to be distributed to a local area or SDA by the Governor's formula is less than $100,000, the funds shall be available to be used by the Governor to fund projects described at paragraph (b) of this section. (5) States shall use the guidance provided at section 403(a)(5)(D) of the Act in determining the number of individuals with an income that is less than the poverty line. (6) Local Boards (or alternate administering agency) shall determine, pursuant to section 403(a)(5)(A)(vii)(I) of the Act, on which individual(s) and on which allowable activities to expend its WtW fund allocation. (7) The State must distribute the local boards' or SDAs' allocations in a timely manner, but not longer than 30 days from receipt of the State's fund allotment. (b) Of the funds allocated to the State, up to 15 percent of the funds may be retained at the State level to fund projects that appear likely to help long-term recipients of assistance enter unsubsidized employment. Any additional funds available as a result of the process described at paragraph (a)(4) of this section, shall also be available to be used to fund projects to help long-term recipients of assistance enter unsubsidized jobs. (c) The Governors may distribute the funds retained pursuant to paragraph (b) of this section to a variety of workforce organizations, in addition to local boards or alternate administering agencies, and other entities such as One-Stop systems, private sector employers, labor organizations, business and trade associations, education agencies, housing agencies, community development corporations, transportation agencies, community-based and faith-based organizations, disability community organizations, community action agencies, and colleges and universities which provide some of the assistance needed by the targeted population. (a) Each State seeking financial assistance under the formula grant portion of the WtW legislation must submit an annual plan meeting the requirements prescribed by the Secretary. This plan shall be in the form of an addendum to the TANF State plan and shall be submitted to the Secretaries of Labor and Health and Human Services. (b) The Secretary shall review the State plan for compliance with the statutory and regulatory provisions of the WtW program. The Secretary's decision whether to accept a State plan as in compliance with the Act shall constitute final agency action. (c) If the Governor has requested a waiver to permit the selection of an alternate administering agency in the State plan, the provisions of §645.400 of this part shall apply (section 403(a)(5)(A)(ii)). (a) The Department will use the following factors to measure State performance: (1) Job entry rate as measured by the proportion of WtW participants who enter either subsidized employment or unsubsidized employment, (2) Substantive job entry rate as measured by the proportion of WtW participants who are placed in or who have moved into subsidized or unsubsidized employment of 30 hours or more per week, (3) Retention as measured by the proportion of WtW participants who remain in unsubsidized employment six months in the second subsequent quarter after the quarter in which placement occurred after initial placement, and (4) Measured earnings gains of WtW participants who remain in unsubsidized employment six months after initial placement. (b) The formula for calculating the performance bonus is weighted as follows: (1) 30 percent on job entry rate, (2) 30 percent on substantive job entry rate, (3) 20 percent on retention in unsubsidized employment, (4) 20 percent on earnings gains in unsubsidized employment. The formula will reflect general economic conditions on a State-by-State basis. (c) The formula shall serve as the basis for the award of FY 2000 bonus grants based on successful performance to be made in FY 2001 (section 403(a)(5)(E)). (a) State roles and responsibilities. A State: (1) Designates State WtW administering agency; (2) Provides overall administration of WtW funds, consistent with the WtW statute, WtW regulations and the State's WtW Plan; (3) Develops the State WtW Plan in consultation and coordination with appropriate entities in substate areas, such as One-Stop systems, private sector employers, labor organizations, business and trade associations, education agencies, housing agencies, community development corporations, transportation agencies, community-based and faith-based organizations, disability community organizations, community action agencies, and colleges and universities which provide some of the assistance needed by the targeted population (section 403(a)(5)(A)(ii)(I)(cc)); (4) Distributes funds to SDAs, consistent with the provisions described at §645.410(a) (section 403(a)(5)(A)(ii)(I)(bb)); (5) Conducts oversight and monitoring of WtW activities and fund expenditures at the State and local levels for compliance with applicable laws and regulations, consistent with the provisions at §645.245 and provides technical assistance as appropriate; (6) Ensures coordination of local board or alternate administering agency fund expenditures with the State TANF expenditures and other programs (section 403(a)(5)(A)(ii)(I)(dd)); (7) Determines whether to request waivers to select an alternate administering agency consistent with the provisions described at §645.400 of this part (sections 403(a)(5)(A)(ii)(I)(ee) and 403(a)(5)(A)(vii)(III)); (8) Manages and distributes State level WtW funds (15 percent), consistent with the provisions at §645.410(b) and (c) (section 403(a)(5)(A)(vi)(III)); (9) Ensures that the 15 percent administration limitation and the match requirement are met; (10) Ensures that worker protections provisions are observed and establishes an appropriate grievance process, consistent with §§645.255 through 645.270 of this part (section 403(a)(5)(J)); (11) Provides comments on Competitive Grant Application(s) from eligible entities within the State, consistent with §645.510 of this part (section 403(a)(5)(B)(ii)); (12) Cooperates with the Department of Health and Human Services on the evaluation of WtW programs (section 403(a)(5)(A)(ii)(III)); (13) Provides technical assistance to PIC's, local boards or alternate administering agencies; and (14) Establishes internal reporting requirements to ensure Federal reports are accurate, complete and are submitted on a timely basis, consistent with §645.240 of this part. (b) Local Boards (or alternate administering agency) roles and responsibilities. A local board: (1) Has sole authority, in coordination with CEOs, to expend formula funds (section 403(a)(5)(A)(vii)(I)); (2) Has authority to determine the individuals to be served in the local area (section 403(a)(5)(A)(vii)(I)); (3) Has authority to determine the services to be provided in the local area (section 403(a)(5)(A)(vii)(I)); (4) Ensures funds are expended on eligible recipients and on allowable activities, consistent with §645.410(a)(5) of this part; (5) Coordinates WtW fund expenditures with State TANF expenditures and other programs (section 403(a)(5)(A)(ii)(dd)); (6) Ensures that there is an assessment and an individual service strategy in place for each WtW participant, consistent with §645.225(a) and (b) of this part; (7) Conducts oversight and monitoring of subrecipients, consistent with the provisions at §645.245 of this part; (8) Ensures worker protection provisions and grievance process are observed, consistent with State guidelines (section 403(a)(5)(J)); and (9) Consults with and provides comments on private entity Competitive Grant Application(s), consistent with the provisions at §645.500(b)(1)(i) of this part. (a) As provided in the Workforce Investment Act regulations at 20 CFR 663.620, the local WtW formula grant program operator is a required partner in the One-Stop system. 20 CFR part 662 describes the roles of such partners in the One-Stop system and applies to the WtW formula grant program operators. A Memorandum of Understanding must be developed between the Local Workforce Investment Board and the WtW program that meets the requirements of 20 CFR 662.300, such as containing provisions relating to the services to be provided through the One-Stop system and methods for referring individuals between the One-Stop operator and the partner WtW program. (b) WtW participants may also be served by the WIA programs and, through appropriate linkages and referrals, these individuals will have access to a broader range of activities and services through the cooperation of the WtW and WIA programs in the One-Stop system. For example, WtW participants, who are also determined eligible for WIA, and who need occupational skills training, may be referred through the One-Stop system to receive WIA training. These participants are also eligible to receive services available under WtW, such as transportation and child care while participating in the WIA activity. (c) WIA participants, who are determined to be eligible for WtW, may also be served by the WtW programs through cooperation with the WIA programs in the One-Stop system. For example, WIA participants, who are also determined eligible for WtW, may be referred to the WtW program for job placement and other WtW assistance. (d) 29 CFR part 37 applies to recipients of WtW financial assistance who operate programs that are part of the One-Stop system established under WIA to the extent that the WtW programs and activities are being conducted as part of the One-Stop delivery system. (a) Eligible applicants for competitive grants are: (1) Local boards or alternate administering agencies (2) Political subdivisions of a State; and (3) Private entities, as defined in §645.120 of this part, including nonprofit organizations such as community development corporations, community-based and faith-based organizations, disability community organizations, community action agencies, and public and private colleges and universities, and other qualified private organizations. (b) Entities other than a local board or alternate administering agency or a political subdivision of the State must submit an application for competitive grant funds in conjunction with the applicable local board or alternate administering agency or political subdivision. (1) The term “in conjunction with” shall mean that the application submitted by such an entity must include a signed certification by both the applicant and either the applicable local board or alternate administering agency or political subdivision that: (i) The applicant has consulted with the applicable local board or alternate administering agency or political subdivision during the development of the application; and (ii) The activities proposed in the application are consistent with, and will be coordinated with, WtW efforts of the local board or alternate administering agency or political subdivision. (2) If the applicant is unable to include such a certification in its application, the applicant will be required to certify, and provide information indicating that efforts were undertaken to consult with the local board or alternate administering agency or political subdivision and that the local board or alternate administering agency or political subdivision was provided a sufficient opportunity to cooperate in the development of the project plan and to review and comment on the application prior to its submission to the Secretary. “Sufficient opportunity for local Board or alternate administering agency or political subdivision review and comment” shall mean at least 30 calendar days. (3) The certification described in paragraph (b)(1) of this section, or the evidence of efforts to consult described in paragraph (b)(2), must be with each local board or alternate administering agency or political subdivision included in the geographic area in which the project proposed in the application is to operate (section 403(a)(5)(B)(ii)). (a) All applicants for competitive grants, including local boards or alternate administering agencies and political subdivisions, must consult with the Governor by submitting their application to the Governor or the designated State administrative entity for the WtW program for review and comment prior to submission of the application to the Secretary. The application submitted to the Secretary must include: (1) Comments on the application from the State; or (2) Information indicating that the State was provided a sufficient opportunity for review and comment prior to submission to the Secretary. “Sufficient opportunity for State review and comment” shall mean at least 15 calendar days. (b) For private entity applicants, the submission of the application for State review and comment must follow the 30 day period provided for local board or alternate administering agency/political subdivision review. Evidence of local board or alternate administering agency or political subdivision review should be included in the submission to the State (section 403(a)(5)(B)(ii)). (a) All of the general program requirements and administrative standards set by 29 CFR Part 645 Subpart B apply (section 403(a)(5)(C) and section 404(b)). (b) In addition, competitive grants will be subject to: (1) Supplemental reporting requirements; and (2) Additional monitoring and oversight requirements based on the negotiated scope-of-work of individual grant awards (section 403(a)(5)(B)(iii) and (v)). (a) The Secretary shall establish appropriate application procedures, selection criteria and an approval process to ensure that grant awards accomplish the purpose of the competitive grant funds and that available funds are used in an effective manner. (b) The Secretary shall publish such procedures in the (a) Competitive grant awards will be targeted to geographic areas of significant need. In developing application procedures, special consideration will be given to rural areas and cities with large concentrations of residents living in poverty. (b) Grant application guidelines will clarify specific requirements for documenting need in the local area (section 403(a)(5)(B)(iv)). (a) Within 21 days of receipt of a final determination that has directly imposed a sanction or corrective action pursuant to §645.250(b) of this part, a recipient, subrecipient, or a vendor directly against which the Grant Officer has imposed a sanction or corrective action, may request a hearing before the Department of Labor Office of Administrative Law Judges, pursuant to the provisions of 29 CFR part 96 subpart 96.6. (b) In accordance with 29 CFR 96.603(b)(2), the rules of practice and procedure published at 29 CFR part 18 shall govern the conduct of hearings under this section, except that a request for hearing under this section shall not be considered a complaint to which the filing of an answer by DOL or a DOL agency is required. Technical rules of evidence shall not apply to a hearing conducted pursuant to this part; however, rules or principles designed to assure production of the most credible evidence available and to subject testimony to cross-examination shall apply. (c) The decision of the Administrative Law Judge (ALJ) shall constitute final agency action unless, within 20 days of the decision, a party dissatisfied with the decision of the ALJ has filed a petition for review with the Administrative Review Board (ARB) (established pursuant to the provisions of Secretary's Order No. 2–96, published at 61 FR 19977 (May 3, 1996)), specifically identifying the procedure, fact, law or policy to which exception is taken. Any exception not specifically urged shall be deemed to have been waived. A copy of the petition for review must be sent to the opposing party at that time. Thereafter, the decision of the ALJ shall constitute final agency action unless the ARB, within 30 days of the filing of the petition for review, has notified the parties that the case has been accepted for review. Any case accepted by the ARB shall be decided within 120 days of such acceptance. If not so decided, the decision of the ALJ shall constitute final agency action.
Title 20: Employees' Benefits
PART 645—PROVISIONS GOVERNING WELFARE-TO-WORK GRANTS
Section Contents
§ 645.100 What does this part cover?
§ 645.110 What are the purposes of the Welfare-to-Work Program?
§ 645.120 What definitions apply to this part?
§ 645.125 What are the roles of the local and State governmental partners in the governance of the WtW program?
§ 645.130 What are the effective dates for the Welfare-to-Work 1999 Amendments?
§ 645.135 What is the effective date for spending Federal Welfare-to-Work formula funds on newly eligible participants and newly authorized services?
§ 645.200 What does this subpart cover?
§ 645.210 What is meant by the terms “entity” and “project” in the statutory phrase “an entity that operates a project” with Welfare-to-Work funds?
§ 645.211 How must Welfare-to-Work funds be spent by the operating entity?
§ 645.212 Who may be served under the general eligibility and noncustodial parent eligibility (primary eligibility) provision?
§ 645.213 Who may be served as an individual in the “other eligibles” (30 percent) provision?
§ 645.214 How will Welfare-to-Work participant eligibility be determined?
§ 645.215 What must a WtW operating entity that serves noncustodial parent participants do?
§ 645.220 What activities are allowable under this part?
§ 645.221 For what activities and services must local boards use contracts or vouchers?
§ 645.225 How do Welfare-to-Work activities relate to activities provided through TANF and other related programs?
§ 645.230 What general fiscal and administrative rules apply to the use of Federal funds?
§ 645.233 What are the time limitations on the expenditure of Welfare-to-Work grant funds?
§ 645.235 What types of activities are subject to the administrative cost limit on Welfare-to-Work grants?
§ 645.240 What are the reporting requirements for Welfare-to-Work programs?
§ 645.245 Who is responsible for oversight and monitoring of Welfare-to-Work grants?
§ 645.250 What procedures apply to the resolution of findings arising from audits, investigations, monitoring and oversight reviews?
§ 645.255 What nondiscrimination protections apply to participants in Welfare-to-Work programs?
§ 645.260 What health and safety provisions apply to participants in Welfare-to-Work programs?
§ 645.265 What safeguards are there to ensure that participants in Welfare-to-Work employment activities do not displace other employees?
§ 645.270 What procedures are there to ensure that currently employed workers may file grievances regarding displacement and that Welfare-to-Work participants in employment activities may file grievances regarding displacement, health and safety standards and gender discrimination?
§ 645.300 What constitutes an allowable match?
§ 645.310 What assurance must a State provide that it will make the required matching expenditures?
§ 645.315 What actions are to be taken if a State fails to make the required matching expenditures?
§ 645.400 Under what conditions may the Governor request a waiver to designate an alternate local administering agency?
§ 645.410 What elements will the State use in distributing funds within the State?
§ 645.415 What planning information must a State submit in order to receive a formula grant?
§ 645.420 What factors will be used in measuring State performance?
§ 645.425 What are the roles and responsibilities of the State(s) and local boards or alternate administering agencies?
§ 645.430 How does the Welfare-to-Work program relate to the One-Stop system and Workforce Investment Act (WIA) programs?
§ 645.500 Who are eligible applicants for competitive grants?
§ 645.510 What is the required consultation with the Governor?
§ 645.515 What are the program and administrative requirements that apply to both the formula grants and competitive grants?
§ 645.520 What are the application procedures and timeframes for competitive grant funds?
§ 645.525 What special consideration will be given to rural areas and cities with large concentrations of poverty?
§ 645.800 What administrative remedies are available under this Part?
Subpart A—Scope and Purpose
top
§ 645.100 What does this part cover?
top
§ 645.110 What are the purposes of the Welfare-to-Work Program?
top
§ 645.120 What definitions apply to this part?
top
§ 645.125 What are the roles of the local and State governmental partners in the governance of the WtW program?
top
§ 645.130 What are the effective dates for the Welfare-to-Work 1999 Amendments?
top
§ 645.135 What is the effective date for spending Federal Welfare-to-Work formula funds on newly eligible participants and newly authorized services?
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Subpart B—General Program and Administrative Requirements
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§ 645.200 What does this subpart cover?
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§ 645.210 What is meant by the terms “entity” and “project” in the statutory phrase “an entity that operates a project” with Welfare-to-Work funds?
top
§ 645.211 How must Welfare-to-Work funds be spent by the operating entity?
top
§ 645.212 Who may be served under the general eligibility and noncustodial parent eligibility (primary eligibility) provision?
top
§ 645.213 Who may be served as an individual in the “other eligibles” (30 percent) provision?
top
§ 645.214 How will Welfare-to-Work participant eligibility be determined?
top
§ 645.215 What must a WtW operating entity that serves noncustodial parent participants do?
top
§ 645.220 What activities are allowable under this part?
top
§ 645.221 For what activities and services must local boards use contracts or vouchers?
top
§ 645.225 How do Welfare-to-Work activities relate to activities provided through TANF and other related programs?
top
§ 645.230 What general fiscal and administrative rules apply to the use of Federal funds?
top
§ 645.233 What are the time limitations on the expenditure of Welfare-to-Work grant funds?
top
§ 645.235 What types of activities are subject to the administrative cost limit on Welfare-to-Work grants?
top
§ 645.240 What are the reporting requirements for Welfare-to-Work programs?
top
§ 645.245 Who is responsible for oversight and monitoring of Welfare-to-Work grants?
top
§ 645.250 What procedures apply to the resolution of findings arising from audits, investigations, monitoring and oversight reviews?
top
§ 645.255 What nondiscrimination protections apply to participants in Welfare-to-Work programs?
top
§ 645.260 What health and safety provisions apply to participants in Welfare-to-Work programs?
top
§ 645.265 What safeguards are there to ensure that participants in Welfare-to-Work employment activities do not displace other employees?
top
§ 645.270 What procedures are there to ensure that currently employed workers may file grievances regarding displacement and that Welfare-to-Work participants in employment activities may file grievances regarding displacement, health and safety standards and gender discrimination?
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Subpart C—Additional Formula Grant Administrative Standards and Procedures
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§ 645.300 What constitutes an allowable match?
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§ 645.310 What assurance must a State provide that it will make the required matching expenditures?
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§ 645.315 What actions are to be taken if a State fails to make the required matching expenditures?
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Subpart D—State Formula Grants Administration
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§ 645.400 Under what conditions may the Governor request a waiver to designate an alternate local administering agency?
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§ 645.410 What elements will the State use in distributing funds within the State?
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§ 645.415 What planning information must a State submit in order to receive a formula grant?
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§ 645.420 What factors will be used in measuring State performance?
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§ 645.425 What are the roles and responsibilities of the State(s) and local boards or alternate administering agencies?
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§ 645.430 How does the Welfare-to-Work program relate to the One-Stop system and Workforce Investment Act (WIA) programs?
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Subpart E—Welfare-To-Work Competitive Grants
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§ 645.500 Who are eligible applicants for competitive grants?
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§ 645.510 What is the required consultation with the Governor?
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§ 645.515 What are the program and administrative requirements that apply to both the formula grants and competitive grants?
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§ 645.520 What are the application procedures and timeframes for competitive grant funds?
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§ 645.525 What special consideration will be given to rural areas and cities with large concentrations of poverty?
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Subpart F—Administrative Appeal Process
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§ 645.800 What administrative remedies are available under this Part?
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