Common use of Cost Reconciliation and Allocation Base Update Clause in Contracts

Cost Reconciliation and Allocation Base Update. All Partners agree to use the following process for cost reconciliation and allocation base update: [Provide process for cost reconciliation and allocation base update here:] All Partners agree to use the following steps to reach consensus and to make a concerted effort to negotiate the IFA along with the remainder of the MOU, including the overall operating budget, for the Local WDA American Job Center network: [Provide steps to use to reach consensus:] All Parties will actively participate in Local IFA negotiations in a good faith effort to reach agreement. Any disputes shall first be attempted to be resolved informally. Should informal resolution efforts fail, the process outlined in the Dispute Resolution (section 13 of the MOU) must be followed. If Partners in a Local area have employed the dispute resolution process and have failed to reach consensus on an issue pertaining to the IFA, then an impasse is declared and the State Funding Mechanism (SFM) is triggered. If the Parties cannot reach consensus on methods of sufficiently funding a one-stop center’s infrastructure costs and the amounts to be contributed by each Local Partner program, the Local WDB is required to notify the Governor. Notification must be given to the Governor according to State guidance, One-Stop Infrastructure Guidance located at: ▇▇▇▇▇://▇▇▇.▇▇.▇▇▇/content/dam/tn/workforce/documents/ProgramManagement/One- Stop_Infrastructure_Governors_Guidance.pdf The IFA becomes effective as of the date of signing by the final signatory. Programs may appeal the Governor’s determinations of their infrastructure cost contributions in accordance with the process established under 20 CFR 678.750, 34 CFR 361.750, and 34 CFR 463.750.

Cost Reconciliation and Allocation Base Update. All Partners agree to use the following process for cost reconciliation and allocation base update: [Provide process for cost reconciliation and allocation base update here:] All Partners agree to use the following steps to reach consensus and to make a concerted effort to negotiate the IFA along with the remainder of the MOU, including the overall operating budget, for the Local WDA American Job Center network: [Provide steps to use to reach consensus:] All Parties will actively participate in Local IFA negotiations in a good faith effort to reach agreement. Any disputes shall first be attempted to be resolved informally. Should informal resolution efforts fail, the process outlined in the Dispute Resolution (section 13 of the MOU) must be followed. If Partners in a Local area have employed the dispute resolution process and have failed to reach consensus on an issue pertaining to the IFA, then an impasse is declared and the State Funding Mechanism (SFM) is triggered. If the Parties cannot reach consensus on methods of sufficiently funding a one-stop center’s ƐƚŽƉ ĐĞŶƚĞƌ͛Ɛ infrastructure costs and the amounts to be contributed by each Local Partner program, the Local WDB is required to notify the Governor. Notification must be given to the Governor according to State guidance, One-Stop Infrastructure Guidance located at: ▇▇▇▇▇://▇▇▇.▇▇.▇▇▇/content/dam/tn/workforce/documents/ProgramManagement/One- Stop_Infrastructure_Governors_Guidance.pdf The IFA becomes effective as of the date of signing by the final signatory. Programs may appeal the Governor’s determinations of their infrastructure cost contributions in WƌŽŐƌĂŵƐ ŵĂLJ ĂƉƉĞĂů ƚŚĞ 'ŽǀĞƌŶŽƌ͛Ɛ ĚĞƚĞƌŵŝŶĂƚŝŽŶƐ accordance with the process established under 20 CFR 678.750, 34 CFR 361.750, and 34 CFR 463.750.