WIA Title I-B Program Management Policies and procedures
Memorandum #04-17

To: All Subrecipients

Subject: Cash Management

Effective Date: April 1, 2005

A.    POLICY

Consistent with Washington State Policy Number 3210, for Title I-B of the Workforce Investment Act, the Snohomish County Workforce Development Council takes an aggressive position on the management of cash. The following provisions apply to all service delivery contracts issued by the WDC:

  1. All subrecipients shall minimize the time elapsing between receipt and disbursement of WIA funds in order to minimize cash on hand;
  2. All subrecipients shall maintain an adequate system of internal controls to safeguard cash received according to Generally Accepted Accounting Principles; and
  3. WIA funds must be kept in interest bearing accounts. Since, however, all WDC contracts are issued on a cost-reimbursement basis, interest from WIA funds should be minimized. Any interest earned, however, must be treated and reported as program income to the relevant WIA contract.

Should a subrecipient fail to comply with any or all of these provisions, the WDC may withhold payment or take other recourse until the condition is corrected. Should the condition remain uncorrected, the WDC may initiate contract termination proceedings.