|TO:||Chairpersons of Local Workforce Investment Boards
Chief Elected Officials
WIA Grant Recipients
WIA Fiscal Agents
WIA Local Area Contacts
|SUBJECT:||Policy for the Reallocation of Recaptured Workforce Investment Area (WIA) funds after the two-year availability period|
|PURPOSE:||To notify the local areas how unexpended WIA funds will be reallocated back to those areas that fully expended these funds in the two-year availability period|
|BACKGROUND:||WIA Rules and Regulations, Section 667.107(b)(2) describes the requirements the State must follow if a local area does not fully expend their WIA funds within the two-year availability period.|
|ACTION:||WIA funds, which are not expended by a local area in the two-year availability period, must be returned to the New York State Department of Labor (NYSDOL). Under the Workforce Investment Act, these recaptured funds can be used for statewide projects or be redistributed to other local areas that had fully expended their allocation of funds for the same program year within the two-year period. The state Department of Labor has been authorized to distribute the PY 2000 recaptured funds to those local areas which had fully expended their allocation of funds. These funds must be spent in the program in which they were recaptured and on the same types of activities as their formula funds.
Please note that these funds will not be subject to the transfer authority between the adult and dislocated worker programs.
This policy will be reviewed in subsequent years; therefore, local areas should not assume that recaptured local funds will automatically be redistributed.