Monitoring Policy

Originally Published: April 17, 2019

Revised and Approved: January 2025

Purpose

The purpose of this policy is to establish monitoring procedures that will comply with the requirements of the Workforce Innovation and Opportunity Act of 2014 (WIOA) as well as the state guidance offered in WSD# 03-2025.

References

• The Workforce Innovation and Opportunity Act , Public Law 113-128
• Single Audit Act (31 U.S.C. §§ 7501-7507)
• 2 CFR Part 200
• 20 CFR Part 677
• 20 CFR Part 683
• 2 CFR Part 2900
• 29 CFR Part 38
• TEN 11-24
• TEGL 05-24
• TEGL 15-14
• WSD# 03-2025

Definitions

Administrative Finding—A Finding is a violation of a specific compliance requirement contained in law; regulations; national policies; FOA; Uniform Guidance or OMB Circulars; the grant terms and conditions; ETA policy guidance, including Training and Employment Guidance Letters (TEGLs); and/or the grant agreement.

Area of Concern— An Area of Concern is used when there is a potential issue, challenge, or situation identified that does not yet violate one of the sources listed below, but left unchecked, could elevate to a finding or, at a minimum, negatively impact outcomes. Reports typically include a recommendation to address the situation at hand. Areas of concern are primarily for technical assistance purposes to prevent violations of: 

1. Federal Law
2. Federal Regulations
3. Grant agreement
4. Contract agreement
5. Formal state or local policy

Desk Reviews—Reviews made during the monitoring process for the purpose of collecting and analyzing information and to support on-site reviews/monitoring. Desk reviews analyze existing data such as required monthly financial reports, vouchers, contracts, budgets, case management system data, and prior audits and monitoring reports.

Disallowed Costs—Disallowedcosts under WIOA and Uniform Guidance include unallowable, unallocable, and unreasonable expenses.

Effective or best practice is a strategy, approach, process, or product in one or more key areas of implementation: governance, administration, service design and delivery, etc. that is sufficiently effective and/or innovative to warrant highlighting in the report.

Employee/client misconduct is considered as actions occurring during or outside work hours that reflect negatively on USDOL, the State of Oklahoma, or the WIOA program. Misconduct may include, but is not limited to, conflict of interest involving outside employment, business, and professional activities, the receipt or giving of gifts, fees, entertainment and favors, misuse of Federal property, misuse of official information and such other activities as might adversely affect the confidence of the public, as well as serious violations of Federal and State laws. 

File Reviews—Reviews of a sample of participant’s files to determine compliance with required federal, state, and local laws, policies, and procedures.

Finding—Noncompliance with policy, guidance or requested procedural steps.

Fraud, Misfeasance, Nonfeasance or Malfeasance Fraud—Misfeasance, nonfeasance or malfeasance should be considered broadly as any alleged deliberate action that is in violation of federal statutes and regulations. This category includes, but is not limited to, indications of bribery, forgery, extortion, embezzlement, theft of client checks, kickbacks from clients, intentional payment to a contractor or service provider without the expectation of receiving services, payment to ghost enrollees, misuse of appropriated funds, and misrepresenting information in official reports.  

Gross Mismanagement/Gross Negligence is considered as actions or situations arising out of management ineptitude, oversight, or a disregard of the need to exercise reasonable care, leading to substantial violations of WIOA processes, regulation, or agreement/contract/grant provisions which could severely hamper the accomplishment of program goals. These include situations that lead to waste of government resources and could jeopardize future support for a particular project. This category includes, but is not limited to, non-auditable records, unsupported costs, highly inaccurate fiscal or program reports, payroll discrepancies, payroll deductions not paid to the Internal Revenue Service, failure to carry out basic required functions, and the lack of good internal control procedures.  

Misapplication of funds is considered as use of funds, assets, or property not authorized or provided for under WIOA regulations, grants, agreements, or contracts. This category includes, but is not limited to, nepotism, political patronage, use of clients for political activities, ineligible clients, conflict of interest, failure to report income from federal funds, violation of agreement/contracts/grant procedures, and the use of federal funds for other than specified purposes. 

On-Site Reviews—The fundamental component of monitoring reviews, consisting of data collection techniques using formal monitoring guides. On-site reviews allow for the verification of items contained in the contract, grant agreement, or other items identified in the desk review.

Questioned Costs—Questionedcosts are Federal funds expended in violation of provisions of the applicable laws, regulations, or award terms, or an expenditure that is not supported by adequate documentation to show that it is an allowable cost. Questioned costs also include what appear to be unreasonable costs, even if they are not specifically unallowable. 

Report Observation—Atthe time of examination, the COWIB Monitors may indicate key actions, processes, or items noticed or sampled. Observations are practices or processes that are particularly effective or efficient and/or may be replicated. These observations may also be ineffective or inefficient practices or processes that should be re-evaluated. These observations may also include questionable operational or business practices that must be noted for documentation purposes. 

Substantial Violation is a severe violation of the provisions ofWIOA Title I-B, which may include, but is not limited to, fraud, misfeasance, nonfeasance, malfeasance, misapplication of funds, gross mismanagement, gross negligence, failure to take corrective action, failure to meet performance goals in consecutive years, lack of sustained fiscal integrity, and failure to perform the duties required by the WIOA Act.  

Sustained Fiscal Integrity means for the purpose of determining initial and subsequent local area designation, that the State/Grant Officer has not made a formal determination that either the grant recipient or any other entity charged with expending local area funds mis expended such funds due to willful disregard of the requirements of the provision involved, gross negligence, or failure to comply with accepted standards of administration for the 2-year period preceding the determination. 

Local Oversight and Monitoring Responsibilities

Assurances

COWIB responsible for keeping the Oklahoma Employment Security Commission up to date with all relevant documents related to programs administered by OESC. These include plans, contracts, agreements, memorandums of understanding, grants, sub-grants, reports, and other applicable records.

At the beginning of each program year, COWIB will review these documents and provide written confirmation to OESC that they have the latest versions. Any new documents, missing documents identified by OESC, or updates to previously submitted documents will be forwarded electronically to OESC.

COWIB will also provide OESC with all relevant documentation, case notes, and reports during monitoring activities. Monitoring reports and resolutions generated by subrecipients or COWIB be submitted to OESC upon issuance.

COWIB will include OESC on all distribution lists to ensure they receive official copies of regulations, changes to plans, contracts, MOUs, grants, subgrants, reports and records, and related correspondence. Copies of regulations, issuances, policies, procedures, reports, board minutes, and correspondence submitted by COWIB to OESC will be signed and/or accompanied by signed cover letters attesting to official board approval.

Administrative Responsibilities

The Central Oklahoma Workforce Development Area is overseen by the Central Oklahoma Workforce Board. COWIB is responsible for overseeing and monitoring activities funded by the Workforce Innovation and Opportunity Act and other federal grants. COWIB is also required to monitor the Oklahoma Works American Job Center system and any subrecipients to ensure compliance with federal, state, and local policies, plans, and procedures.

Their responsibilities include:

1. Ensuring expenditures follow cost categories and limits outlined in WIOA and its regulations.
2. Confirming compliance with all applicable laws, regulations, and contracts.
3. Providing technical assistance where necessary and appropriate.

The Chief Local Elected Official in a local workforce area is liable for any misuse of any WIOA Title I funds (unless an agreement has been reached with the Governor to bear such responsibility). When the local workforce area is composed of more than one unit of general local government, the chief elected officials of such units may execute an agreement that specifies the respective roles of the individual CLEOs.

1. COWIB, as a LWDB and Fiscal Agent will:
2. Ensure monitoring of service providers on an annual basis and at least sixty (60) days before their contract ends and submit monitoring reports and resolutions to the OESC WIOA Oversight Team when issued.
3. Provide all requested documents to the OESC WIOA Oversight Team before the scheduled monitoring date.
4. Make sure that documents required by the OESC for on-site review are organized and ready for examination.
5. Ensure appropriate staff are available on-site during monitoring to assist the OESC team.
6. COWIB, as a LWDB, will monitor all service providers once per year per 2 CFR 200.504 and as required during contract period to verify compliance with:
   1. Compliance with federal, state, and local area regulations, plans, policies, and guidelines, including:
      1. Participant eligibility verification documentation,
      1. Participant records for assessment and employability plan,
      1. Contracts such as on the job training, customized training, and worksite agreements.
      1. Proper delivery of WIOA Adult and Dislocated Worker services based on the LWDB’s integrated service delivery design.
      1. Proper delivery of WIOA Youth services consistent with the LWDB’s youth program.
   1. Contract performance compliance, and
   1. Compliance with local established policies.
7. COWIB, as Fiscal Agent, will submit to the OESC team a list of all contracts, including periods of service and a review plan, within 60 days after the program year begins (July 1 – June 30).

COWIB, as fiscal agent, is responsible for developing and enforcing specific policies, plans, and procedures which address the following:

1. Ensuring funds are spent in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Federal regulations, and State policies.
   1. Preparing and managing contracts and ensuring compliance.
   1. Addressing financial findings from monitoring.
   1. Maintaining proper accounting records and documentation.
   1. Preparing financial reports.
   1. Providing technical assistance to subrecipients on fiscal issues.
   1. Procuring contracts and/or written agreements.
   1. Disbursing funds for salaries, contracts, wages, and vouchers.
   1. Conducting continuous financial oversight and monitoring of the board staff and service providers for compliance with federal cost principles.
      1. Fiscal agents may accomplish these responsibilities through a combination of routine review of invoices prior to payment with federal grant funds and periodic on-site reviews of LWDB and service provider financial records. Fiscal agents must submit copies of all monitoring reports and resolutions to the OESC WIOA Oversight Team when issued.
   1. Ensuring independent audits of all contracted entities receiving one million dollars ($1,000,000.00) or more in DOL grant funds (A Non-Federal entity that expends $1,000,000 or more during the non-Federal entity’s fiscal year in Federal awards must have a single or program-specific audit conducted). In instances where the nine-month audit submission deadline creates an undue burden, contracted entities may request an extension. The written request for an extension must include:
      1. Recipient name;
      1. Award number;
      1. Recipient audit period;
      1. Justification for the extension;
      1. New proposed date for the report submission; and
      1. A corrective action plan to ensure that future reports will be filed timely.
   1. Ensuring funds are being expended according to the LWDB-developed and CLEO approved budget.

COWIB Monitoring Policy and Procedures

Purpose

The Central Oklahoma Workforce Innovation Board (COWIB), establishes this policy to ensure compliance with federal, state, and local administrative and financial requirements, policies, and procedures, and to ensure performance goals are achieved. This policy outlines the roles, responsibilities, and procedures for monitoring Department of Labor (DOL)-funded programs and the delivery of integrated services.

Roles and Responsibilities

COWIB: The COWIB is responsible for the overall governance, oversight, and strategic direction of monitoring activities with the Central Oklahoma Workforce Development Area.

COWIB Staff: The LWDB staff are responsible for executing and managing day-to-day monitoring activities, ensuring operational compliance, and supporting subrecipients and service providers.

Fiscal Agent: The fiscal agent ensures proper financial management, accountability, and compliance with federal, state, and local fiscal regulations.

Service Providers/Subrecipients: Service providers and subrecipients are responsible for implementing WIOA-funded programs and maintaining compliance with federal, state, and local fiscal regulations.

COWIB Monitoring Activities

COWIB will conduct the following types of monitoring:

• Programmatic Monitoring
  • Assess compliance with WIOA program requirements, including participant eligibility, service delivery, and performance outcomes.
  • Review participant files for accuracy and completeness.
  • Assess core performance measures.
• Fiscal Monitoring:
  • Evaluate financial management systems, including internal controls, cash management, and cost allocation.
  • Review expenditures to ensure they are allowable, allocable, and reasonable.
  • Verify adherence to procurement standards and contractual terms.
• Contract Monitoring
  • Assess contract performance, compliance, deliverables, and outcomes.
• System Monitoring
  • Review of the AJCs and One-Stop System
  • Evaluation of the MOU/ IFA and partner relations.
  • Compliance with equal opportunity and grievance and complaint policies and procedures.

Monitoring Scope & Schedule

Programmatic Monitoring

Activity	Scope	Frequency
Adult/ Dislocated Worker	A minimum 5% of new enrollments shall be monitored. Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment and individual employment plan and other items.	Quarterly
Youth	A minimum 5% of new enrollments shall be monitored. Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment and individual service strategy and other items.	Quarterly
On-the-Job Training	Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment of individual service strategy and/or individual employment plan, OJT contracts, worksite monitoring and other items.	Monthly
Work Experience	Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment of individual service strategy and/or individual employment plan, WEX contracts, worksite monitoring and other items.	Monthly
Supportive Services	Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment of individual service strategy and/or individual employment plan, and supportive service documentation.	Monthly
Incentives	Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment of individual service strategy and/or individual employment plan, and incentive verification & documentation.	Monthly
Occupational Skills Training	Monitoring of eligibility, participant eligibility verification documentation, data validation, priority of services, assessment of individual service strategy and/or individual employment plan, in-demand occupation, eligible training provider & program, verification of training documentation, and invoice and payment review.	Monthly
Core Performance Indicators	Ensure the Service Provider is meeting all state performance expectations.	Quarterly

Fiscal Monitoring

Activity	Scope	Frequency
Contract Compliance	Each local director (as a COWIB employee) for which COWIB is fiscal agent for is responsible for monitoring of all contracts. Verifying that the contracts are within compliance and are properly procured.	Quarterly
Invoice Review	Routine review of invoices prior to payment with federal grant funds. Each local area director, for which COWIB is the fiscal agent, is responsible for reviewing their invoices and signing off on payment.	Monthly
Subrecipient Review	Monitoring each subrecipient providing services to participants for program accountability and to ensure contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.	Once annually, and no less than sixty (60) days prior to the expiration date of the contract.
Single Audit	To be completed annually by an outside entity that was competitively procured.	Annually

Contract Monitoring

Activity	Scope	Frequency
Performance	Monitoring service providers on their contractual performance to ensure measures are met.	Monthly

System Monitoring

Activity	Scope	Frequency
System & Service Delivery	Review of the AJCs and the system to include partner relations, referral processes, MOU and IFA, customer satisfaction, Equal Opportunity, One Stop Operator, etc.	Annually

Monitoring Methods

COWIB’s approach to monitoring uses a combination of methods, including:

• Desk reviews of reports, policies, and documentation.
• On-site visits to service provider locations.
• Interviews with staff, participants, and stakeholders.
• Sampling of participant files, financial records, and other documentation.

While these are the primary methods, COWIB may use additional techniques as necessary to ensure comprehensive oversight. Participant files, documentation, and other records will be reviewed both virtually and on-site using tools such as the Virtual Case Management System.

Reporting

Exit Conference

Upon the completion of the monitoring review, an exit conference will be conducted to discuss any preliminary issues or potential findings. The participants in the exit conference may include COWIB’s Compliance Monitor(s), representatives from the Service Provider, and other relevant stakeholders as needed. The purpose of the conference is to ensure transparency, provide an opportunity for clarification, and discuss possible corrective actions.

Following the exit conference, the COWIB Compliance Monitor(s) will prepare a brief written summary of the issues discussed. This synopsis will be provided to the Service Provider for reference and further consideration.

Monitoring Report

A comprehensive written report summarizing the results of the monitoring review will be prepared by the COWIB Compliance Monitor(s) as soon as possible after the on-site review, typically within 30 days. The report will provide a detailed analysis of the review and may include the following components:

1. Scope and Purpose of the Review: A clear statement of the objectives and the areas or programs reviewed.
2. Monitoring Methods: A description of the techniques and tools used during the review, such as file sampling, interviews, site inspections, and system reviews.
3. Service Provider Strengths: A summary of exemplary practices or strengths identified during the review, with consideration for their potential promotion as best practices across the state.
4. Findings of Non-Compliance: A detailed summary of any instances of non-compliance, including citations of the applicable policies, procedures, rules, regulations, or laws.
5. Monitoring Observations: Observations that may not constitute formal findings but are worth noting for awareness or improvement.
6. Suggestions for Program Improvements: Recommendations to enhance service delivery, improve compliance, or address gaps in current processes.
7. Required Corrective Actions: Specific actions the Service Provider must take to address identified findings, with deadlines for implementation and resolution.

Detailed Findings of Non-Compliance

Each finding of non-compliance will include the following information:

1. Compliance Requirement:
   1. A detailed description of the specific requirement that was not met, along with a citation of the relevant policy, rule, regulation, or law.
2. Method of Determination:
   1. An explanation of how the deficiency was identified, such as through:
      1. Observation of program activities.
      1. Review of records in the online case management system.
      1. Examination of program documentation.
      1. Interviews with customers or Service Provider staff.
3. Extent of Non-Compliance:
   1. Quantification of the deficiency, wherever possible, to illustrate the scale of the issue. For example:
      1. “Six out of 15 participant files sampled did not include the required documentation.”
4. Cause(s) of Non-Compliance:
   1. An analysis of the underlying cause(s) of the issue, when identifiable, to support corrective actions and prevent recurrence.

Monitoring Report Responsibilities and Distribution

Activity	Responsible Staff	Type of Report	Distributed To
Programmatic Monitoring	COWIB Youth Program ManagerCOWIB Policy & Compliance Analyst	Written	Service ProviderCOWIB CEO
Fiscal Monitoring	COWIB Youth Program ManagerCOWIB Policy & Compliance AnalystCOWIB CEOLocal Area Executive Directors	Written	Service ProviderCOWIB CEOCOWIB Chairman of the BoardLocal Area Director and Board Chair, as appropriateCOWIB Board, as appropriateChief Local Elected Official, as appropriateOESC WIOA Oversight Team
Contract Monitoring	COWIB Youth Program ManagerCOWIB Policy & Compliance AnalystCOWIB CEOService Provider	In- Person/ Virtual Meeting	Service ProviderCOWIB CEO
System Monitoring	COWIB Youth Program ManagerCOWIB Policy & Compliance AnalystCOWIB CEOOne-Stop Operator	In-PersonWritten	Service Providers Center Managers, as appropriateOESC Regional Manager, as appropriate System Partners, as appropriateOESC WIOA Oversight Team

Corrective Actions

An Official Report shall be provided to the appropriate party upon completion. Those receiving the report from Board Staff shall have 14 calendar days to respond. Observations will not require a response; however, areas of concern and findings would necessitate a response from the appropriate party. The appropriate party shall have 2 attempts to address all issues found with the report or have a plan in place for a resolution that has been approved by the COWIB CEO. Further responses may be allowed at the discretion of the COWIB CEO. If parties reach an impasse and are not able to resolve an issue, the COWIB determination shall stand and the service provider has the option to submit a grievance through the COWIB Grievance Policy.

Follow Up

Appropriate COWIB Monitoring Staff shall conduct follow-up monitoring on those deficiencies which have been addressed in the monitoring report within a reasonable amount of time, to ensure that proper corrective actions have been taken. Persistent or unresolved issues may result in further action, including technical assistance, additional monitoring, or termination of contracts.

Appeals Process

If the service provider/subrecipient disagrees with the final determination, they have 15 days from receiving the determination to request an appeal or 2 business days after an informal resolution conference. Once the appeal is received, the COWIB Policy and Compliance Manager will review it and schedule a hearing within 30 days, unless all parties agree to extend the deadline for additional negotiations. In some cases, the COWIB CEO can waive the hearing requirement if immediate action is necessary.

During the hearing, the service provider/ subrecipient must provide evidence showing that they complied with all applicable laws, regulations, and policies. The decision from the COWIB, issued within 30 days after the hearing record is closed, is final and binding.

Any costs associated with legal assistance, accounting, or representation during the appeal cannot be covered by grant or contract funds received from COWIB. This includes costs for experts, accountants, or attorneys.

Support Documentation

Support documentation may be requested from the Service Provider from time to time to validate responses to correct actions. In providing the support documentation each supporting document shall have the issue number identified on the report and the appropriate participant identification number of the participant for which the documentation is referencing.

Technical Assistance

The COWIB Service Provider or One-Stop Partner may request technical assistance from the COWIB by making a request in writing to the COWIB CEO. The request should describe the type of assistance requested. The COWIB CEO will reply to any such request after considering the COWIB’s priorities and available resources.

Equal Opportunity and Nondiscrimination Statement

All Recipients, and Sub-recipients / Sub-grantees must comply with WIOA’s Equal Opportunity and Nondiscrimination provisions which prohibit discrimination on the basis of race, color, religion, sex (including pregnancy, childbirth, and related medical conditions), national origin (including limited English proficiency), age, disability, political affiliation or belief, or, for beneficiaries, applicants, and participants only, on the basis of citizenship status or participation in a WIOA Title-I financially assisted program or activity.

Addenda / Revisions

The COWIB Chief Executive Officer is authorized to issue additional instructions, guidance, approvals, and/or forms to further implement the requirements of policy, without making substantive change to the policy, except in situations when a new or updated state and federal guidance is issued.

Questions about these procedures may be directed to the COWIB’s Policy Analyst at (405) 622-2026.

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