Workforce Investment Act Title I-B
Washington State Policies

SECTION B: Fiscal Controls and Accounting Guidelines

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Grantees, subrecipients, and contractors funded under the Workforce Investment Act, (WIA) whether in whole or in part, must abide by the Workforce Investment Act of 1998, the WIA Regulations, all applicable Office of Management and Budget (OMB) Circulars, state requirements in laws and rules (Revised Code of Washington and Washington Administrative Code) Office of Financial Management (OFM) policies, and the Washington State WIA Policies.
EFFECTIVE DATE:
 WIA POLICY NUMBER:
SUBJECT:		 July 1, 2000
3210
Cash Management and Interest

BACKGROUND | POLICY | DEFINITIONS | REFERENCES
SUPERSEDES | WEBSITE INQUIRIES

BACKGROUND

None.

POLICY

  1. The Workforce Development Area (WDA) Fiscal Agents and state subrecipients shall minimize the time elapsing between and receipt of WIA funds and disbursement in order to maintain a minimum cash balance as per federal guidelines.
       

  2. The WDA Fiscal Agents and state subrecipients shall maintain an adequate system of internal control to safeguard cash according to generally accepted accounting principles.
       

  3. Should the WDA Fiscal Agent and/or state subrecipient fail to comply with I or II above, the state may apply the sanction identified in Policy No 3215 (Grant and Contracts Methods), withholding of payment, until the condition is corrected.
       

  4. Interest earned on WIA funds may be retained and shall be used to pay for WIA expenditures. Interest earned shall be accounted for as program income (reference) and for reporting purposes, identified on the quarterly report forms submitted to the Systems and Financial Services Unit.

This treatment of interest does not allow recipients of WIA funds to ignore the requirements or intent of these cash management requirements. All recipients must continue to minimize the time elapsing between receipt of WIA funds and their disbursement.

Should it become apparent that this is not happening, the state will notify the recipient of its’ intent to invoke Policy No. 3215 (Grants or Contracts Methods) and discontinue current cash needs payments and initiate cash reimbursement payments.

The use of this interest is for expenditures for WIA purposes. Interest earned is to be used to minimize periodic cash requests. Fiscal Guidelines No. 3215 (Grants or Contracts Methods) must be followed as cash is requested.

DEFINITIONS

None.

REFERENCES

All fiscal policies and guidance letters published for WIA are governed, as appropriate, under:

  • Public Law 105-200
  • 20 CFR Part 652
  • OMB Circular A-122, Cost Principles for Non Profits
  • OMB Circular A-133, Audit of State and Local Government
  • OMB Circular A-133, Compliance Supplement
  • OMB Circular A-21, Cost Principles for Education Institutions
  • OMB Circular A-87, Revised Cost Principles for State and Local Government and Indian Tribal Government
  • Federal Register Vol. 65, No. 124: Resource Sharing for Workforce Investment Act One-Stop Centers
  • Generally Accepted Accounting Procedures (GAAP)

SUPERSEDES

None. This communication is new.

WEBSITE

http://www.wa.gov/esd/policies

DIRECT INQUIRIES TO

Kim Anensen, Manager
State Employment Security Department
P.O. Box 9046, MS 6000
Olympia, WA 98507-9046
E-Mail: kanensen@esd.wa.gov
Telephone: (360) 902-9525
FAX: (360) 902-9520

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