The Workforce Innovation and Opportunity Act (WIOA) requires each Local Workforce Development Board (LWDB) to develop a Memorandum of Understanding (MOU) outlining the delivery of programs and services and the sharing of costs within the One-Stop Delivery System for its Local Workforce Development Area (LWDA).
The LWDB guides the development of the MOU in collaboration with all required One-Stop Partners. An integral component of the MOU is a negotiated Infrastructure Funding Agreement (IFA), also referred to as an infrastructure cost-sharing agreement, which establishes how the costs of operating the One-Stop Centers within the LWDA will be shared. The IFA is also known as the “local funding mechanism.”
The IFA specifies how each required One-Stop Partner contributes to the non-personnel operating costs of the One-Stop Centers. Each required Partner must contribute to these infrastructure costs on a proportionate basis through cash, non-cash, or third-party in-kind contributions.