(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 (\1/2\) of the payment occur after an eligible
individual placed into the workforce has been in the workforce for six
(6) months. This provision applies only to placement in unsubsidized
jobs (section 403(a)(5)(C)(i)).
(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 Sec. 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.
