SENIOR AID PROGRAM REGIONS II & III SER-JOBS FOR PROGRESS,INC.

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