U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

JTPA

CORRESPONDENCE SYMBOL

TD

ISSUE DATE

July 31, 1996

RESCISSIONS

 

EXPIRATION DATE

Continuing

DIRECTIVE

:

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 07-95

 

TO

:

ALL STATE JTPA LIAISONS
ALL STATE WORKER ADJUSTMENT LIAISONS

 

FROM

:

BARBARA ANN FARMER
Administrator
for Regional Management

 

SUBJECT

:

Job Training Partnership Act (JTPA) Intertitle Transfers of Funds

 

  1. Purpose. To provide guidance on intertitle transfers and respond to questions raised on intertitle fund transfer authority.

  2. References. 

    1. Training and Employment Guidance Letter (TEGL) No. 6-95, JTPA Titles II-A, II-C, and III Allotments; and Wagner-Peyser Final Planning Estimates for Program Year (PY) 1996;

    2. Emergency Supplemental and Rescission Act, 1995, Public Law 104-19;

    3. Omnibus Consolidated Recissions and Appropriations Act of 1996, Public Law 104-134;

    4. Job Training Partnership Act, Public Law 97-300, as amended;

    5. TEGL No. 5-95, Program Guidance and Allocations for the Calendar Year 1996 Summer Youth Employment and Training Program;

    6. TEGL No. 12-94 and Change 1, Changes in Restrictions on Program Year 1995 Funds under Title III of the JTPA; and

    7. TEIN No. 6-93 and Changes 1 and 2, Instructions for Title II, JTPA Quarterly Financial Status Report.

  3. Background. TEGL 6-95 provided to the States the Program Year (PY) 1996 allotments for titles II-A, II-B, II-C and III, pursuant to the Congressional appropriations to the Department. In that communication, we indicated that guidance on intertitle transfers would be forwarded separately. Policy concerning transfer rules and procedures is contained in this TEGL. In addition, in order to be responsive to the entire employment and training community, questions were solicited through the Employment and Training Administration (ETA) Regional offices. The answers to the questions received, including a reference table summarizing potential transfers for all years, are contained in an attachment to this TEGL.

    In the 1996 Omnibus Appropriations Act, Congress authorized the transfers of PY 1996 funds between JTPA titles II-A and III for adults and between title II-B and II-C for youth. The current authorization in JTPA sections 206, and 266 for the transfer of funds between titles II-A and II-C is unaffected. This local flexibility provided to service delivery areas (SDAs) and substate areas (SSAs) in planning and fund transfer requires the approval of the Governor prior to implementation.

    The goals and objectives of ETA, its partners and stakeholders will remain unchanged as a result of the Congressional appropriations action. We are committed to help:

    1. low income adults and youth get the skills and training they need, and help them find first, new or better jobs; and

    2. laid off workers find new jobs that pay as close as possible to what they used to earn.

  4. Significant Changes. A number of significant policy changes are contained in this TEGL and the attached questions and answers. For ease of reference, they are as follows:

    1. Notice of Obligations (Question 5)

    2. Reporting Instructions (Question 19)

    3. Recapture/reallotment policies under title III (Question 14);

    4. NRA application review (Question 13); and

    5. Guidance on inclusions in State transfer systems (Question 4)

  5. Principles. As the questions being raised were considered, it became apparent that a series of principles evolved which may be of assistance in responding to further questions.

    1. Keep it Simple.  The Department has attempted to limit potential problems by minimizing Federal reporting and record keeping requirements by combining PY 1996, title II-A, II-C and III formula funds into a single financial account on the upcoming Notice of Obligation and the Health and Human Services financial payments account. FY 1996 title II-B funds will remain under the PY 1995 grant agreement and the previously assigned accounts. No prior notice will be required when making transfers, but quarterly reporting must reflect any changes made.

    2. Identity of Funds.  Once the funds are transferred, there is no separate identification; they become part of the total funds available in the receiving title/part. The transferred funds are subject to all of the rules of the receiving title/part, including cost limitations, and eligibility requirements. However for auditing purposes, records must be maintained by title.

    3. Funds Authorized for Transfer.  Only funds allocated to SDAs/SSAs are authorized for transfer between title II-A and title III, and among titles II-A, II-B and II-C. Title III discretionary NRA and Governors' reserve, as well as title II incentive funds are not authorized for transfer. Only PY 1996 funds may be transferred between titles II-A and III, e.g., no carryover PY 95 funds may be transferred.

    4. Reporting.  Expenditures associated with transferred funds are not tracked or accounted for separately; they are reported as part of total available funds in the receiving title/part.

    5. Services to Participants.  Commitments in State and local plans that describe strategies and goals established prior to transfers must be considered when addressing potential transfers. Modification requirements will remain unchanged.

    6. Program Performance Requirements.  Performance standards apply to titles and the funds expended under those titles.

    The above principles are addressed more fully in the questions and answers that are contained in the attachment.

  6. Effective Date. Upon receipt.

  7. Action Required. States are requested to:

    1. incorporate the guidance contained in this TEGL in their:

        (1)  direction to private industry councils, chief elected officials, title II administrative entities and title III substate grantees; and

        (2)  criteria, systems and procedures to permit SDAs and SSAs to transfer funds; and

    2. share the information contained in this directive with service delivery areas and substate areas.

  8. Inquiries. General questions or requests for technical assistance should be directed to the appropriate Regional office. Questions dealing with title III issues on recapture/reallotment and NRA grants should be directed to Zen Choma (202) 219-5577 x127 and Brian Deaton (202) 219-5336 x107 respectively.

  9. Attachments. 

    1. Questions and Answers - JTPA Intertitle Fund Transfers (including Sample Quarterly Financial Reports)

    2. SDA/SSA Intertitle Transfers Authority Table