Employment and Training Administration Advisory System U.S. Department of Labor
Washington, D.C. 20210 |
CLASSIFICATION
WOTC and WtWTC CORRESPONDENCE SYMBOL OWI DATE July 3, 2003 |
ADVISORY: | TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 1-03 |
TO: |
ALL STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS |
FROM: | EMILY STOVER DeROCCO Assistant Secretary | |
SUBJECT: | Planning Guidance for Work Opportunity Tax Credit and Welfare-to-Work Tax Credit Allotments for Fiscal Year 2003 and Transmittal of ETA Handbook No. 408 Third Edition, November 2002 |
RESCISSIONS | EXPIRATION DATE |
Continuing |
4. Funding. The WOTC and WtWTC activities operated under Continuing Resolutions (CR) until the Consolidated Appropriations Resolution, 2003 (Public Law 108-7) was signed into law February 20, 2003. Attachment II-A contains information on advanced funds issued through CR Number 5 to support uninterrupted administration of WOTC and WtWTC activities. Attachment II-B contains the Fiscal Year (FY) 2003 funding allocations for the SWAs.
The total funding for FY 2003 is $20,863,500. This is a decrease of $135,500 from the FY 2002 appropriation due to a congressional across-the-board reduction of 0.65 percent to all FY 2003 discretionary programs. After reserving $584,200 for postage and $20,000 for the Virgin Islands, funds are distributed to the states by administrative formula with a $64,000 minimum allotment and a 95% stop-loss/120% stop-gain from the prior year allotment share percentage. The FY 2003 allotment formula is as follows:
5. General Administration. SWAs are responsible for administering WOTC and WtWTC, including the certification process and reporting program data on a quarterly basis.
SWAs should use the planning instructions and guidance in this TEGL to prepare the FY 2003 WOTC and WtWTC plan. Authorization for the cost reimbursable grant is provided in
W-P Act, Section 7(d). Pursuant to Training and Employment Information Notice No. 24-99, the ETA National Office continues to be the grant office authority for the Employment Service Cost Reimbursable Grant.
Cost reimbursable grant funds are issued to SWAs for the administration and implementation of WOTC and WtWTC. ETA Regional Offices are responsible for conducting field level reviews of these cost reimbursable grants. This includes review and approval of state plans, analysis of expenditures and performance data, and on-site reviews. SWAs are expected to administer WOTC and WtWTC funds in accordance with the Act and applicable regulations, and the terms and conditions of the W-P Act Annual Funding Agreement, which includes administrative requirements and cost principles of Federal Regulations at 29 CFR Part 97 and OMB Circular A-87.
Further, WOTC and WtWTC must be administered in accordance with the policies and procedural guidance set forth in the Handbook at http://www.uses.doleta.gov/tax.asp. The third edition of the Handbook consolidates and updates information included in the first two editions. Also, it includes the new provisions in P.L. 107-147, the most current reauthorizing legislation and provides clarifications and interpretations regarding specific definitions of terms and other program related requirements.
The Handbook includes the following documents:
6. Reporting. SWAs should plan to expend all funds within the year (exclusive of "carry in" funds) on a quarterly basis. Prior year fund balances will remain with the respective PY/FY annual grant and should be expended under such grant agreements, Notices of Obligation and state plans and/or plan guidance. No plans are required for the FY 2002 allocations. Further, FY 2002 extensions for carry-in funds are not needed as long as funds are expended within the maximum December 31, 2003, statutory limit. SWAs should report expenditures quarterly by direct data entry of Standard Form 269 (SF-269) into the Web-based EIMS-TCRS. Quarterly financial reports are due within 30 days following the end of each quarter per 29 CFR
97.41(b) (4). Timely submission of these reports is extremely important to ensure proper accounting of funds. Regional Offices will conduct a financial reconciliation at the end of the fiscal year. Questions regarding financial management and reporting for FY 2003 or for any existing prior year fund balances should be addressed to the appropriate Regional Office.
The Government Paperwork Elimination Act (GPEA) of 1998 (P.L. 105-277) requires that, when practicable, Federal agencies use electronic forms, electronic filing, and electronic signatures to conduct official business with the public by October 2003. During the period covered by this plan, quarterly program activity reports will be transferred to the EIMS-TCRS. The EIMS-TCRS is a Web-based system that will allow SWAs to meet the reporting responsibilities in a more efficient manner while reducing the reporting burden on the SWAs, regional and national offices. Initially, SWAs will manually enter the required quarterly data for Report No. 1, "Conditional Certifications Issued;" Report No. 2, "Certification Workload and Characteristics of Certified Individuals;" and Report No. 3, "Verification Results" to the TCRS. Instructions regarding operation of the TCRS and a User's Guide were provided to the SWAs at a national training
conference held in Orlando, Florida, October 28-31, 2002. Reports are due 45 days after the end of the quarter for Reports No. 1 and 2. Report No. 3 is due 45 days after the third month following the close of the reporting period. A schedule of report due dates is at http://www.uses.doleta.gov/tax.asp.
7. OMB Approval. The Handbook and the data collection and reporting requirements contained in this TEGL were approved by OMB according to the Paperwork Reduction Act of 1995 under OMB approval No. 1205-0371, expiring December 31, 2004. The respondent's obligations to reply to these requirements are mandatory (P.L.104-188). Persons are not required to respond to this collection of information unless it displays a currently valid OMB control number.
8. Grant and Plan Effective Date. Plans should be developed for a 12-month period beginning October 1, 2002, through September 30, 2003. SWAs may request extensions through the ETA Regional Office.
9. Action Required.
SWAs are requested to take the following action:
10. Inquiries.Program questions may be directed to the Regional Office or to Carmen Ortiz (Office of Workforce Investment, Division of USES/ALMIS) at (202) 693-2786. All questions regarding grant and financial issues should be directed to Gwendolyn Baron-Simms at (202) 693-3309 or Fred Tello (202) 693-3333.
11. Attachments.