This policy provides guidelines for establishing and modifying Workforce Innovation and Opportunity Act (WIOA) formula grants received from the annual allotment Training and Employment Guidance Letter (TEGL) issued by the US Department of Labor - Employment and Training Administration (USDOL-ETA).  This allotment applies to the Adult, Dislocated Worker, and Youth formula funding streams under WIOA Title IB.

1. The annual allotment issued by USDOL-ETA in a Training and Employment Guidance Letter (TEGL) does the following:
   1. Disseminates the amounts available to each state.
   2. Specifies the amount available for the Governor to set aside for statewide workforce investment activities and rapid response activities.
   3. Lists the salary cap imposed under the latest appropriation act.  The use of funds under the header “Employment and Training Administration”, by a recipient or subrecipient to pay the salary and/or bonus of an individual as either direct costs or indirect costs, at a rate in excess of Executive Level II is prohibited.
   4. Provides that the Governor reserve a portion of the dislocated worker funds for statewide rapid response activities, as described in Section 134(a)(2) of WIOA.
2. All formula funds are subject to the Uniform Guidance outlined at 2 CFR 200 and the U.S. Department of Labor exceptions outlined at 2 CFR 2900. 
3. The Local Workforce Innovation Board (LWIB) may not authorize expenditures for the area until the Department of Commerce receives a signed contract document and enters the grant information into the department’s accounting system.