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All Parties agree that this MOU shall be reviewed and renewed not less than once every 3 -year <br />period to ensure appropriate funding and delivery of services. <br />EFFECTIVE PERIOD <br />This MOU is entered into on September 1, 2017. This MOU will become effective as of the date <br />of signing by the final signatory below and must terminate on August 31, 2020, unless any of the <br />reasons in the Termination section above apply. <br />AJCC OPERATING BUDGET <br />The purpose of this section is to establish a financial plan, including terms and conditions, to <br />fund the services and operating costs of the local AJCC. The Parties to this MOU agree that joint <br />funding is a necessary foundation for an integrated service delivery system. The goal of the <br />operating budget is to develop a funding mechanism that: <br />• Establishes and maintains the Local workforce delivery system at a level that meets the <br />needs of the job seekers and businesses in the Local area; <br />• Reduces duplication and maximizes program impact through the sharing of services, <br />resources, and technologies among Partners (thereby improving each program's <br />effectiveness); <br />• Reduces overhead costs for any one partner by streamlining and sharing financial, <br />procurement, and facility costs; and <br />• Ensures that costs are appropriately shared by AJCC Partners by determining <br />contributions based on the proportionate use of the AJCC centers and relative benefits <br />received, and requiring that all funds are spent solely for allowable purposes in a manner <br />consistent with the applicable authorizing statutes and all other applicable legal <br />requirements, including the Uniform Guidance. <br />The Partners consider this AJCC operating budget the master budget that is necessary to <br />maintain the Local Board's high -standard AJCC. It includes the following cost categories, as <br />required by WIOA and its implementing regulations: <br />• Infrastructure costs (also separately outlined in the Infrastructure Funding Agreement <br />(IFA)); <br />• Career services; and <br />• Shared services. <br />All costs must be included in the MOU, allocated according to Partners' proportionate use and <br />relative benefits received, and reconciled on a quarterly basis against actual costs incurred and <br />adjusted accordingly. The AJCC operating budget is expected to be transparent and negotiated <br />among Partners on an equitable basis to ensure costs are shared appropriately. All Partners must <br />negotiate in good faith and seek to establish outcomes that are reasonable and fair. <br />11 <br />