Intra-Title II transfers of JTPA funds

Training and Employment Guidance Letter No. 6-92

Official advisory: https://www.dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-6-92

Date: February 9, 1993
To: All State JTPA Liaisons; State Wagner-Peyser; State Worker Adjustment Liaisons
From: Carolyn M. Golding, Acting Assistant Secretary
Subject: Intra-Title II Transfer of Job Training Partnership Act (JTPA) Funds

Purpose: To provide guidance regarding the use of available Program Year (PY) 1992 and earlier Title II-A funds for PY 1993 activity, and the Service Delivery Area (SDA) option to transfer PY 1993 and subsequent year Title II funds among Parts within Title II.

References: Sections 206, 256, and 266 of Title II of Public Law 102-367; TEIN No. 16-92, transfer of 1992 Title II-B Summer Youth Funds to Title II-A.

Background: The JTPA Amendments of 1992 established new criteria for operating Title II program activities, identified new Title II cost categories, and provided SDAs with the option to transfer funds between the "Parts" within Title II. Program Year 1993 will serve as a transition period for using remaining balances of prior year available funds, and initiating the SDA option of intra-Title II fund transfers. This guidance is being provided to alert States and SDAs to the options for the use of PY 1992 and earlier funds in the local planning process for PY 1993, and for PY 1993 funds to be transferred among parts in PY 1993 and in subsequent years.

Using Prior Year Title II Funds: The Interim Final Rule at 20 CFR 627.903(d) provides that the balance of any available Title II-A funds as of June 30, 1993, may be used for PY 1993 activity. Any affected Title II-A funds will be governed by Section 203(b)(1). Of these funds, not less than 40 percent, or the rate approved by the Governor as established under Section 203(b)(2), must be used in PY 1993 as Title II-C funds to provide services to eligible youth. All affected amounts will be subject to the cost limitation and reporting requirements of the new JTPA Amendments and implementing regulations and will assume the identity of the Title II "Part" receiving the funds; i.e., Title II-A or Title II-C.

Accounting requirements: For accounting and record keeping purposes, all prior year funds used for PY 1993 activity will retain their appropriation year identity. Cash will continue to be drawn under the Payment Management System as Title II-A until all amounts have been expended. Residual Title II-A amounts not used for PY 1993 activity will be governed by current requirements. Prior year funds used for PY 1993 activity must be accounted for and reported separately. Reporting instructions for all JTPA funds will be issued shortly.

Intra-Title II Funds Transfer: The Interim Final Rule at 20 CFR 628.550 provides SDAs with the flexibility to transfer funds within Title II, if such transfers are described in the job training plan and approved by the Governor. The three optional fund transfers include: (a) Section 206 states that a service delivery area may transfer up to 10 percent of the amounts allocated under part A to the program under part C if such transfer is described in the job training plan and the transfer is approved by the governor; (b) Section 256 states that a service delivery area may transfer up to 10 percent of the funds provided to the program under part B to the program under part C if the transfer is approved by the Governor; and (c) Section 266 states that a service delivery area may transfer up to 10 percent of the amounts allocated under part C to the program under part A if such transfer is described in the job training plan and the transfer is approved by the Governor. Beginning with the PY 1993 funding period, transferring amounts within Title II are optional for the SDAs. The Governor is responsible for determining the frequency of such transfers and ensuring that job training plans are modified as necessary. Notices of obligational authority, funding availability, or other similar documents issued by the State to the SDAs will be revised to reflect all transfers. The Department encourages all such transfers to be completed prior to the end of the affected program year. All transfers must be reflected on appropriate financial reports. Financial reporting instructions will be issued separately.

Action: For the PY 1993 planning process, SDAs may use available PY 1992 and earlier Title II-A funds for Titles II-A and Title II-C purposes in PY 1993, and may also transfer PY 1993 Title II-A, II-B, and II-C funds to Titles II-A and II-C. States should ensure that prior year Title II-A funds used for PY 1993 activity and intra-Title II fund transfers are consistent with this issuance.