The Southern 14 Workforce Investment Board is made up of members from fourteen (14) counties representing business, labor, education, economic development and other entities that have a keen interest in improving workforce development efforts in the region.
Funding - Where it Comes From
Funding for the programs under the Workforce Innovation and Opportunity Act is authorized by Congress and administered through the Department of Labor. These funds are made available to the states based on a formula which incorporates population, poverty numbers, unemployment levels, etc. In Illinois, the Governor chose the Illinois Department of Commerce to administer the funds to the Local Workforce Investment Areas. Of the funding which comes to Illinois, the Governor retains 15% for statewide projects and allocates the remaining 85% to the LWIA's. Each county in Illinois is allocated a specific amount of dollars, by program (Adult, Dislocated Worker and Youth) based on formulas similar to the one used at the federal level. The funds which are available to Area #26 is a compilation of the funds allocated to all of the 14 counties in Area #26.
How are the Funds Accessed
WIOA funds are ordered through the State Comptroller's office by computer. They are direct deposited into the local bank used by the board and checks are written on these accounts to cover obligations. Money can be ordered from the state on Wednesdays and Fridays. The LWIB office receives written requests from the Title - 1 service providers stating the amount needed. The office orders the money from the state and when received, writes checks to the service providers. Each check has two signatures; that of the Executive Director and one of the officers of the board. The state requests that cash on hand be limited to one to two days operating capital. This is not always possible, but funds on hand are kept to a minimum.
Administrative Funds vs. Programmatic Funds
Funds under the Workforce Innovation & Opportunity Act are allocated to the local areas with 10% of the funds for administrative purposes and 90% for programmatic services. Costs classified as programmatic may be paid for with administrative funds; however, costs classified as administrative may not be paid out of programmatic funds. Administrative funds under WIOA are reserved to pay the Title - 1 portion of the universal accessibility costs of operating a one-stop center and to pay expenses related to the Workforce Board and staff. Programmatic funds are contracted out to three agencies that were selected by the Workforce Investment Board to provide Title - 1 services in Area # 26. Administrative funds, in amounts negotiated in the Memorandums of Understanding as required to pay the Title - 1 one-stop operational costs are also contracted to the Title - 1 service providers.
Wabash Area Development, Inc. and Shawnee Development Council, Inc. were named as Adult / Dislocated Worker and Youth Title - 1 Service Providers in the Local Four Year Plan. All services are contracted between the Southern 14 Workforce Investment Board and the two service providers. Contracts issued by the Southern 14 Workforce Board contain standard state issued contract boiler plate terminology and assurances. Contracts are issued for one program year and are modified at such times during the year as appropriate; change in funding from the state, award of incentive funds, etc. Budgets and supportive client data are included in each contract. Changes in these attachments are brought to the board for approval before modifying the contracts.
These funds are funds reserved at the state level and distributed once a year as a performance incentive to the WIOA Areas in Illinois who have met the criteria set by the state for performance. In order to qualify for incentive funds an area must either meet or exceed all performance standards. Areas which fail to meet one or more of the standards are disqualified from sharing in any incentive funds. The amount each area receives is the sum of the amounts received for each individual standard exceeded. The greater the number of areas who exceed a particular standard reduces each individual area's share for that standard. Incentive funds may be used for either programmatic or administrative purposes and don't affect the 10% administrative limit.
Cost Allocation Within the Memorandum of Understanding
The Workforce Innovation and Opporunity Act requires that each partner contribute their fair share of the operating costs for each one-stop location in which they participate. The Memorandums of Understanding covering the specific one-stop sites include a determination of the costs necessary to support the universal accessibility portion of the facility; resource room, reception area, common areas, etc. Also included in the MOU is the methodology for making a fair determination or allocation of the listed costs between local partners. This contribution may be in-kind or cash. All partners must agree to the methodology and to the amount(s) allocated for their program(s) before the MOU can go into effect. At this time the allocation of costs between partners is a local call provided all partners agree to the results.