308
only if a health and safety officer of the Bureau deter-
mines that such conditions exist at the Bureau funded
school.
‘‘(2) INSPECTION.—(A) After making a deter-
mination described in paragraph (1), the Bureau
health and safety officer shall conduct an inspection
of the condition of such plant accompanied by an ap-
propriate tribal, county, municipal, or State health
and safety officer in order to determine whether con-
ditions at such plant constitute an immediate hazard
to health and safety. Such inspection shall be com-
pleted by not later than the date that is 30 days after
the date on which the action described in paragraph
(1) is taken. No further negative action may be taken
unless the findings are concurred in by the second,
non-Bureau of Indian Affairs inspector.
‘‘(B) If the health and safety officer conducting
the inspection of a plant required under subpara-
graph (A) determines that conditions at the plant do
not constitute an immediate hazard to health and
safety, any consolidation or curtailment that was
made under paragraph (1) shall immediately cease
and any school closed by reason of conditions at the
plant shall be reopened immediately.
309
‘‘(C) If a Bureau funded school is temporarily
closed or consolidated or the programs of a Bureau
funded school are substantially curtailed under this
subsection and the Secretary determines that the clo-
sure, consolidation, or curtailment will exceed 1 year,
the Secretary shall submit to the Congress, by not
later than 6 months after the date on which the clo-
sure, consolidation, or curtailment was initiated, a
report which sets forth the reasons for such temporary
actions, the actions the Secretary is taking to elimi-
nate the conditions that constitute the hazard, and an
estimated date by which such actions will be con-
cluded.
‘‘(e) FUNDING REQUIREMENT.—
‘‘(1) DISTRIBUTION OF FUNDS.—Beginning with
the fiscal year following the year of the date of the en-
actment of the Student Results Act of 1999, all funds
appropriated for the operations and maintenance of
Bureau funded schools shall be distributed by formula
to the schools. No funds from this account may be re-
tained or segregated by the Bureau to pay for admin-
istrative or other costs of any facilities branch or of-
fice, at any level of the Bureau.
‘‘(2) REQUIREMENTS
FOR
CERTAIN
USES.—No
funds shall be withheld from the distribution to the
310
budget of any school operated under contract or grant
by the Bureau for maintenance or any other facilities
or road related purpose, unless such school has con-
sented, as a modification to the contract or in writing
for grants schools, to the withholding of such funds,
including the amount thereof, the purpose for which
the funds will be used, and the timeline for the serv-
ices to be provided. The school may, at the end of any
fiscal year, cancel an agreement under this paragraph
upon giving the Bureau 30 days notice of its intent
to do so.
‘‘(f) NO REDUCTION IN FEDERAL FUNDING.—Nothing
in this section shall be construed to diminish any Federal
funding due to the receipt by the school of funding for facili-
ties improvement or construction from a State or any other
source.
‘‘SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNC-
TIONS.
‘‘(a) FORMULATION AND ESTABLISHMENT OF POLICY
AND PROCEDURE; SUPERVISION OF PROGRAMS AND EX-
PENDITURES.—The Secretary shall vest in the Assistant
Secretary for Indian Affairs all functions with respect to
formulation and establishment of policy and procedure and
supervision of programs and expenditures of Federal funds
for the purpose of Indian education administered by the
311
Bureau. The Assistant Secretary shall carry out such func-
tions through the Director of the Office of Indian Education
Programs.
‘‘(b) DIRECTION AND SUPERVISION OF PERSONNEL
OPERATIONS.—Not later than 6 months after the date of
the enactment of the Student Results Act of 1999, the Direc-
tor of the Office of Indian Education Programs shall direct
and supervise the operations of all personnel directly and
substantially involved in the provision of education services
by the Bureau, including school or institution custodial or
maintenance personnel, facilities management, contracting,
procurement, and finance personnel. The Assistant Sec-
retary for Indian Affairs shall coordinate the transfer of
functions relating to procurement, contracts, operation, and
maintenance to schools and other support functions to the
Director.
‘‘(c) EVALUATION OF PROGRAMS; SERVICES AND SUP-
PORT FUNCTIONS; TECHNICAL AND COORDINATING ASSIST-
ANCE.—Education personnel who are under the direction
and supervision of the Director of the Office of Indian Edu-
cation Programs in accordance with the first sentence of
subsection (b) shall—
‘‘(1) monitor and evaluate Bureau education
programs;
312
‘‘(2) provide all services and support functions
for education programs with respect to personnel mat-
ters involving staffing actions and functions; and
‘‘(3) provide technical and coordinating assist-
ance in areas such as procurement, contracting, budg-
eting, personnel, curriculum, and operation and
maintenance of school facilities.
‘‘(d) CONSTRUCTION, IMPROVEMENT, OPERATION, AND
MAINTENANCE OF FACILITIES.—
‘‘(1) PLAN FOR CONSTRUCTION.—The Assistant
Secretary shall submit in the annual budget a plan—
‘‘(A) for school facilities to be constructed
under section 1125(c);
‘‘(B) for establishing priorities among
projects and for the improvement and repair of
educational facilities, which together shall form
the basis for the distribution of appropriated
funds; and
‘‘(C) for capital improvements to be made
over the 5 succeeding years.
‘‘(2) PROGRAM
FOR
OPERATION
AND
MAINTE-
NANCE.—
‘‘(A) IN GENERAL.—The Assistant Secretary
shall establish a program, including the distribu-
tion of appropriated funds, for the operation and
313
maintenance of education facilities. Such pro-
gram shall include—
‘‘(i) a method of computing the
amount necessary for each educational facil-
ity;
‘‘(ii) similar treatment of all Bureau
funded schools;
‘‘(iii) a notice of an allocation of ap-
propriated funds from the Director of the
Office of Indian Education Programs di-
rectly to the education line officers and ap-
propriate school officials;
‘‘(iv) a method for determining the
need for, and priority of, facilities repair
and maintenance projects, both major and
minor. In making such determination, the
Assistant Secretary shall cause to be con-
ducted a series of meetings at the agency
and area level with representatives of the
Bureau funded schools in those areas and
agencies to receive comment on the lists and
prioritization of such projects; and
‘‘(v) a system for the conduct of routine
preventive maintenance.
314
‘‘(B) The appropriate education line officers
shall make arrangements for the maintenance of
education facilities with the local supervisors of
the Bureau maintenance personnel. The local su-
pervisors of Bureau maintenance personnel shall
take appropriate action to implement the deci-
sions made by the appropriate education line of-
ficers, except that no funds under this chapter
may be authorized for expenditure unless such
appropriate education line officer is assured that
the necessary maintenance has been, or will be,
provided in a reasonable manner.
‘‘(3) IMPLEMENTATION.—The requirements of
this subsection shall be implemented as soon as prac-
ticable after the date of the enactment of the Student
Results Act of 1999.
‘‘(e) ACCEPTANCE OF GIFTS AND BEQUESTS.—Not-
withstanding any other provision of law, the Director shall
promulgate guidelines for the establishment of mechanisms
for the acceptance of gifts and bequests for the use and ben-
efit of particular schools or designated Bureau operated
education programs, including, where appropriate, the es-
tablishment and administration of trust funds. When a Bu-
reau operated program is the beneficiary of such a gift or
bequest, the Director shall make provisions for monitoring
315
its use and shall report to the appropriate committees of
Congress the amount and terms of such gift or bequest, the
manner in which such gift or bequest shall be used, and
any results achieved by such action.
‘‘(f) FUNCTIONS CLARIFIED.—For the purpose of this
section, the term ‘functions’ includes powers and duties.
‘‘SEC. 1127. ALLOTMENT FORMULA.
‘‘(a) FACTORS CONSIDERED; REVISION TO REFLECT
STANDARDS.—
‘‘(1) FORMULA.—The Secretary shall establish,
by regulation adopted in accordance with section
1138A, a formula for determining the minimum an-
nual amount of funds necessary to sustain each Bu-
reau funded school. In establishing such formula, the
Secretary shall consider—
‘‘(A) the number of eligible Indian students
served and total student population of the school;
‘‘(B) special cost factors, such as—
‘‘(i) the isolation of the school;
‘‘(ii) the need for special staffing,
transportation, or educational programs;
‘‘(iii) food and housing costs;
‘‘(iv) maintenance and repair costs as-
sociated with the physical condition of the
educational facilities;
316
‘‘(v) special transportation and other
costs of isolated and small schools;
‘‘(vi) the costs of home-living (dor-
mitory) arrangements, where determined
necessary by a tribal governing body or des-
ignated school board;
‘‘(vii) costs associated with greater
lengths of service by education personnel;
‘‘(viii) the costs of therapeutic pro-
grams for students requiring such programs;
and
‘‘(ix) special costs for gifted and tal-
ented students;
‘‘(C) the cost of providing academic services
which are at least equivalent to those provided
by public schools in the State in which the school
is located; and
‘‘(D) such other relevant factors as the Sec-
retary determines are appropriate.
‘‘(2) REVISION OF FORMULA.—Upon the estab-
lishment of the standards required in sections 1121
and 1122, the Secretary shall revise the formula es-
tablished under this subsection to reflect the cost of
funding such standards. Not later than January 1,
2001, the Secretary shall review the formula estab-
317
lished under this section and shall take such steps as
are necessary to increase the availability of coun-
seling and therapeutic programs for students in off-
reservation home-living (dormitory) schools and other
Bureau operated residential facilities. Concurrent
with such action, the Secretary shall review the stand-
ards established under section 1122 to be certain that
adequate provision is made for parental notification
regarding, and consent for, such counseling and
therapeutic programs.
‘‘(b) PRO RATA ALLOTMENT.—Notwithstanding any
other provision of law, Federal funds appropriated for the
general local operation of Bureau funded schools shall be
allotted pro rata in accordance with the formula established
under subsection (a).
‘‘(c) ANNUAL ADJUSTMENT; RESERVATION OF AMOUNT
FOR SCHOOL BOARD ACTIVITIES.—
‘‘(1) ANNUAL
ADJUSTMENT.—For fiscal year
2001, and for each subsequent fiscal year, the Sec-
retary shall adjust the formula established under sub-
section (a) to—
‘‘(A) use a weighted unit of 1.2 for each eli-
gible Indian student enrolled in the seventh and
eighth grades of the school in considering the
318
number of eligible Indian students served by the
school;
‘‘(B) consider a school with an enrollment
of less than 50 eligible Indian students as having
an average daily attendance of 50 eligible Indian
students for purposes of implementing the adjust-
ment factor for small schools;
‘‘(C) take into account the provision of resi-
dential services on less than a 9-month basis at
a school when the school board and supervisor of
the school determine that a less than 9-month
basis will be implemented for the school year in-
volved;
‘‘(D) use a weighted unit of 2.0 for each eli-
gible Indian student that—
‘‘(i) is gifted and talented; and
‘‘(ii) is enrolled in the school on a full-
time basis,
in considering the number of eligible Indian stu-
dents served by the school; and
‘‘(E) use a weighted unit of 0.25 for each el-
igible Indian student who is enrolled in a year-
long credit course in an Indian or Native lan-
guage as part of the regular curriculum of a
319
school, in considering the number of eligible In-
dian students served by such school.
The adjustment required under subparagraph (E)
shall be used for such school after—
‘‘(i) the certification of the Indian or Native
language curriculum by the school board of such
school to the Secretary, together with an estimate
of the number of full-time students expected to be
enrolled in the curriculum in the second school
year for which the certification is made; and
(ii) the funds appropriated for allotment
under this section are designated by the appro-
priations Act appropriating such funds as the
amount necessary to implement such adjustment
at such school without reducing allotments made
under this section to any school by virtue of such
adjustment.
‘‘(2) RESERVATION OF AMOUNT.—
‘‘(A) IN GENERAL.—From the funds allotted
in accordance with the formula established under
subsection (a) for each Bureau school, the local
school board of such school may reserve an
amount which does not exceed the greater of—
‘‘(i) $8,000; or
‘‘(ii) the lesser of—
320
‘‘(I) $15,000; or
‘‘(II) 1 percent of such allotted
funds,
for school board activities for such school, includ-
ing (notwithstanding any other provision of law)
meeting expenses and the cost of membership in,
and support of, organizations engaged in activi-
ties on behalf of Indian education.
‘‘(B) TRAINING.—Each school board shall
see that each new member of the school board re-
ceives, within 12 months of the individual’s as-
suming a position on the school board, 40 hours
of training relevant to that individual’s service
on the board. Such training may include legal
issues pertaining to schools funded by the Bu-
reau, legal issues pertaining to school boards,
ethics, and other topics deemed appropriate by
the school board.
‘‘(d) RESERVATION OF AMOUNT FOR EMERGENCIES.—
The Secretary shall reserve from the funds available for dis-
tribution for each fiscal year under this section an amount
which, in the aggregate, shall equal 1 percent of the funds
available for such purpose for that fiscal year. Such funds
shall be used, at the discretion of the Director of the Office
of Indian Education Programs, to meet emergencies and
321
unforeseen contingencies affecting the education programs
funded under this section. Funds reserved under this sub-
section may only be expended for education services or pro-
grams, including emergency repairs of educational facili-
ties, at a schoolsite (as defined by section 5204(c)(2) of the
Tribally Controlled Schools Act of 1988). Funds reserved
under this subsection shall remain available without fiscal
year limitation until expended. However, the aggregate
amount available from all fiscal years may not exceed 1
percent of the current year funds. Whenever, the Secretary
makes funds available under this subsection, the Secretary
shall report such action to the appropriate committees of
Congress within the annual budget submission.
‘‘(e) 
SUPPLEMENTAL
APPROPRIATIONS.—Supple-
mental appropriations enacted to meet increased pay costs
attributable to school level personnel shall be distributed
under this section.
‘‘(f) ELIGIBLE INDIAN STUDENT DEFINED.—For the
purpose of this section, the term ‘eligible Indian student’
means a student who—
‘‘(1) is a member of or is at least 1⁄4 degree In-
dian blood descendant of a member of an Indian tribe
which is eligible for the special programs and services
provided by the United States through the Bureau be-
cause of their status as Indians; and
322
‘‘(2) resides on or near an Indian reservation or
meets the criteria for attendance at a Bureau off-res-
ervation home-living (dormitory) school.
‘‘(g) TUITION.—
‘‘(1) IN GENERAL.—An eligible Indian student
may not be charged tuition for attendance at a Bu-
reau school or contract or grant school. A student at-
tending a Bureau school under paragraph (2)(C) may
not be charged tuition for attendance at such a school.
‘‘(2) ATTENDANCE OF NON-INDIAN STUDENTS AT
BUREAU SCHOOLS.—The Secretary may permit the
attendance at a Bureau school of a student who is not
an eligible Indian student if—
‘‘(A) the Secretary determines that the stu-
dent’s attendance will not adversely affect the
school’s program for eligible Indian students be-
cause of cost, overcrowding, or violation of stand-
ards or accreditation;
‘‘(B) the school board consents;
‘‘(C) the student is a dependent of a Bu-
reau, Indian Health Service, or tribal govern-
ment employee who lives on or near the school
site; or
‘‘(D) a tuition is paid for the student that
is not more than that charged by the nearest
323
public school district for out-of-district students,
and shall be in addition to the school’s allocation
under this section.
‘‘(3) ATTENDANCE OF NON-INDIAN STUDENTS AT
CONTRACT AND GRANT SCHOOLS.—The school board of
a contract or grant school may permit students who
are not eligible Indian students under this subsection
to attend its contract school or grant school and any
tuition collected for those students shall be in addition
to funding received under this section.
‘‘(h) FUNDS AVAILABLE WITHOUT FISCAL YEAR LIMI-
TATION.—Notwithstanding any other provision of law, at
the election of the school board of a Bureau school made
at any time during the fiscal year, a portion equal to not
more than 15 percent of the funds allocated with respect
to a school under this section for any fiscal year shall re-
main available to the school for expenditure without fiscal
year limitation. The Assistant Secretary shall take steps as
may be necessary to implement this provision.
‘‘(i) STUDENTS
AT RICHFIELD DORMITORY, RICH-
FIELD, UTAH.—Tuition for out-of-State Indian students in
home-living (dormitory) arrangements at the Richfield dor-
mitory in Richfield, Utah, who attend Sevier County high
schools in Richfield, Utah, shall be paid from the Indian
school equalization program funds authorized in this sec-
324
tion and section 1130 at a rate not to exceed the amounts
per weighted student unit for that year for the instruction
of such students. No additional administrative cost funds
shall be added to the grant.
‘‘SEC. 1128. ADMINISTRATIVE COST GRANTS.
‘‘(a) 
GRANTS; 
EFFECT
UPON
APPROPRIATED
AMOUNTS.—
‘‘(1) GRANTS.—Subject to the availability of ap-
propriated funds, the Secretary shall provide grants
to each tribe or tribal organization operating a con-
tract school or grant school in the amount determined
under this section with respect to the tribe or tribal
organization for the purpose of paying the adminis-
trative and indirect costs incurred in operating con-
tract or grant schools, provided that no school oper-
ated as a stand-alone institution shall receive less
than $200,000.00 per year for these purposes, in order
to—
‘‘(A) enable tribes and tribal organizations
operating such schools, without reducing direct
program services to the beneficiaries of the pro-
gram, to provide all related administrative over-
head services and operations necessary to meet
the requirements of law and prudent manage-
ment practice; and
325
‘‘(B) carry out other necessary support
functions which would otherwise be provided by
the Secretary or other Federal officers or employ-
ees, from resources other than direct program
funds, in support of comparable Bureau operated
programs.
‘‘(2) EFFECT UPON APPROPRIATED AMOUNTS.—
Amounts appropriated to fund the grants provided
under this section shall be in addition to, and shall
not reduce, the amounts appropriated for the program
being administered by the contract or grant school.
‘‘(b) DETERMINATION OF GRANT AMOUNT.—
‘‘(1) IN
GENERAL.—The amount of the grant
provided to each tribe or tribal organization under
this section for each fiscal year shall be determined by
applying the administrative cost percentage rate of
the tribe or tribal organization to the aggregate of the
Bureau elementary and secondary functions operated
by the tribe or tribal organization for which funds are
received from or through the Bureau. The administra-
tive cost percentage rate determined under subsection
(c) does not apply to other programs operated by the
tribe or tribal organization.
‘‘(2) DIRECT COST BASE FUNDS.—The Secretary
shall—
326
‘‘(A) reduce the amount of the grant deter-
mined under paragraph (1) to the extent that
payments for administrative costs are actually
received by an Indian tribe or tribal organiza-
tion under any Federal education program in-
cluded in the direct cost base of the tribe or trib-
al organization; and
‘‘(B) take such actions as may be necessary
to be reimbursed by any other department or
agency of the Federal Government for the portion
of grants made under this section for the costs of
administering any program for Indians that is
funded by appropriations made to such other de-
partment or agency.
‘‘(c) ADMINISTRATIVE COST PERCENTAGE RATE.—
‘‘(1) IN GENERAL.—For purposes of this section,
the administrative cost percentage rate for a contract
or grant school for a fiscal year is equal to the per-
centage determined by dividing—
‘‘(A) the sum of—
‘‘(i) the amount equal to—
‘‘(I) the direct cost base of the
tribe or tribal organization for the fis-
cal year, multiplied by
‘‘(II) the minimum base rate; plus
327
‘‘(ii) the amount equal to—
‘‘(I) the standard direct cost base;
multiplied by
‘‘(II) the maximum base rate; by
‘‘(B) the sum of—
‘‘(i) the direct cost base of the tribe or
tribal organization for the fiscal year; plus
‘‘(ii) the standard direct cost base.
‘‘(2) ROUNDING.—The administrative cost per-
centage rate shall be determined to the 1⁄100 of a dec-
imal point.
‘‘(d) COMBINING FUNDS.—
‘‘(1) IN GENERAL.—Funds received by a tribe or
contract or grant school as grants under this section
for tribal elementary or secondary educational pro-
grams may be combined by the tribe or contract or
grant school into a single administrative cost account
without the necessity of maintaining separate funding
source accounting.
‘‘(2) INDIRECT COST FUNDS.—Indirect cost funds
for programs at the school which share common ad-
ministrative services with tribal elementary or sec-
ondary educational programs may be included in the
administrative cost account described in paragraph
(1).
328
‘‘(e) AVAILABILITY
OF FUNDS.—Funds received as
grants under this section with respect to tribal elementary
or secondary education programs shall remain available to
the contract or grant school without fiscal year limitation
and without diminishing the amount of any grants other-
wise payable to the school under this section for any fiscal
year beginning after the fiscal year for which the grant is
provided.
‘‘(f) TREATMENT
OF
FUNDS.—Funds received as
grants under this section for Bureau funded programs oper-
ated by a tribe or tribal organization under a contract or
agreement shall not be taken into consideration for purposes
of indirect cost underrecovery and overrecovery determina-
tions by any Federal agency for any other funds, from
whatever source derived.
‘‘(g) TREATMENT OF ENTITY OPERATING OTHER PRO-
GRAMS.—In applying this section and section 105 of the
Indian Self-Determination and Education Assistance Act
with respect to an Indian tribe or tribal organization
that—
‘‘(1) receives funds under this section for admin-
istrative costs incurred in operating a contract or
grant school or a school operated under the Tribally
Controlled Schools Act of 1988; and
329
‘‘(2) operates 1 or more other programs under a
contract or grant provided under the Indian Self-De-
termination and Education Assistance Act;
the Secretary shall ensure that the Indian tribe or tribal
organization is provided with the full amount of the admin-
istrative costs that are associated with operating the con-
tract or grant school, and of the indirect costs, that are asso-
ciated with all of such other programs, provided that funds
appropriated for implementation of this section shall be
used only to supply the amount of the grant required to
be provided by this section.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) ADMINISTRATIVE COST.—(A) The term ‘ad-
ministrative cost’ means the costs of necessary admin-
istrative functions which—
‘‘(i) the tribe or tribal organization incurs
as a result of operating a tribal elementary or
secondary educational program;
‘‘(ii) are not customarily paid by com-
parable Bureau operated programs out of direct
program funds; and
‘‘(iii) are either—
‘‘(I) normally provided for comparable
Bureau programs by Federal officials using
330
resources other than Bureau direct program
funds; or
‘‘(II) are otherwise required of tribal
self-determination program operators by
law or prudent management practice.
‘‘(B) The term ‘administrative cost’ may
include—
‘‘(i) contract or grant (or other agreement)
administration;
‘‘(ii) executive, policy, and corporate leader-
ship and decisionmaking;
‘‘(iii) program planning, development, and
management;
‘‘(iv) fiscal, personnel, property, and pro-
curement management;
‘‘(v) related office services and record keep-
ing; and
‘‘(vi) costs of necessary insurance, auditing,
legal, safety and security services.
‘‘(2) BUREAU
ELEMENTARY
AND
SECONDARY
FUNCTIONS.—The term ‘Bureau elementary and sec-
ondary functions’ means—
‘‘(A) all functions funded at Bureau schools
by the Office;
‘‘(B) all programs—
331
‘‘(i) funds for which are appropriated
to other agencies of the Federal Government;
and
‘‘(ii) which are administered for the
benefit of Indians through Bureau schools;
and
‘‘(C) all operation, maintenance, and repair
funds for facilities and government quarters used
in the operation or support of elementary and
secondary education functions for the benefit of
Indians, from whatever source derived.
‘‘(3) DIRECT COST BASE.—(A) Except as other-
wise provided in subparagraph (B), the direct cost
base of a tribe or tribal organization for the fiscal
year is the aggregate direct cost program funding for
all tribal elementary or secondary educational pro-
grams operated by the tribe or tribal organization
during—
‘‘(i) the second fiscal year preceding such
fiscal year; or
‘‘(ii) if such programs have not been oper-
ated by the tribe or tribal organization during
the 2 preceding fiscal years, the first fiscal year
preceding such fiscal year.
332
‘‘(B) In the case of Bureau elementary or sec-
ondary education functions which have not previously
been operated by a tribe or tribal organization under
contract, grant, or agreement with the Bureau, the di-
rect cost base for the initial year shall be the projected
aggregate direct cost program funding for all Bureau
elementary and secondary functions to be operated by
the tribe or tribal organization during that fiscal
year.
‘‘(4) MAXIMUM
BASE
RATE.—The term ‘max-
imum base rate’ means 50 percent.
‘‘(5) MINIMUM
BASE
RATE.—The term ‘min-
imum base rate’ means 11 percent.
‘‘(6) STANDARD DIRECT COST BASE.—The term
‘standard direct cost base’ means $600,000.
‘‘(7) TRIBAL ELEMENTARY OR SECONDARY EDU-
CATIONAL PROGRAMS.—The term ‘tribal elementary
or secondary educational programs’ means all Bureau
elementary and secondary functions, together with
any other Bureau programs or portions of programs
(excluding funds for social services that are appro-
priated to agencies other than the Bureau and are ex-
pended through the Bureau, funds for major sub-
contracts, construction, and other major capital ex-
penditures, and unexpended funds carried over from
333
prior years) which share common administrative cost
functions, that are operated directly by a tribe or
tribal organization under a contract, grant, or agree-
ment with the Bureau.
‘‘(i) STUDIES FOR DETERMINATION OF FACTORS AF-
FECTING COSTS; BASE RATES LIMITS; STANDARD DIRECT
COST BASE; REPORT TO CONGRESS.—
‘‘(1) STUDIES.—Not later than 120 days after
the date of enactment of the Student Results Act of
1999, the Director of the Office of Indian Education
Programs shall—
‘‘(A) conduct such studies as may be needed
to establish an empirical basis for determining
relevant factors substantially affecting required
administrative costs of tribal elementary and
secondary education programs, using the for-
mula set forth in subsection (c); and
‘‘(B) conduct a study to determine—
‘‘(i) a maximum base rate which ensures
that the amount of the grants provided under
this section will provide adequate (but not exces-
sive) funding of the administrative costs of the
smallest tribal elementary or secondary edu-
cational programs;
334
‘‘(ii) a minimum base rate which ensures
that the amount of the grants provided under
this section will provide adequate (but not exces-
sive) funding of the administrative costs of the
largest tribal elementary or secondary edu-
cational programs; and
‘‘(iii) a standard direct cost base which is
the aggregate direct cost funding level for which
the percentage determined under subsection (c)
will—
‘‘(I) be equal to the median between the
maximum base rate and the minimum base
rate; and
‘‘(II) ensure that the amount of the
grants provided under this section will pro-
vide adequate (but not excessive) funding of
the administrative costs of tribal elementary
or secondary educational programs closest
to the size of the program.
‘‘(2) GUIDELINES.—The studies required under
paragraph (1) shall—
‘‘(A) be conducted in full consultation (in
accordance with section 1131) with—
335
‘‘(i) the tribes and tribal organizations
that are affected by the application of the
formula set forth in subsection (c); and
‘‘(ii) all national and regional Indian
organizations of which such tribes and trib-
al organizations are typically members;
‘‘(B) be conducted onsite with a representa-
tive statistical sample of the tribal elementary or
secondary educational programs under a con-
tract entered into with a nationally reputable
public accounting and business consulting firm;
‘‘(C) take into account the availability of
skilled labor; commodities, business and auto-
matic data processing services, related Indian
preference and Indian control of education re-
quirements, and any other market factors found
substantially to affect the administrative costs
and efficiency of each such tribal elementary or
secondary educational program studied in order
to assure that all required administrative activi-
ties can reasonably be delivered in a cost effective
manner for each such program, given an admin-
istrative cost allowance generated by the values,
percentages, or other factors found in the studies
to be relevant in such formula;