112(b) of the Workforce Investment Act of 1998; 
and 
‘‘(R) will ensure that entities that carry out ac-
tivities under the project (including State agencies, 
local entities, subgrantees, subcontractors) and affili-
ates of such entities receive an amount of the admin-
istrative cost allocation determined by the Secretary 
to be sufficient. 
‘‘(2) The Secretary may establish, issue, and amend 
such regulations as may be necessary to effectively carry 
out this title. 
‘‘(3)(A) An assessment and service strategy required 
by paragraph (1) to be prepared for an eligible individual 
shall satisfy any condition for an assessment and service 
strategy or individual employment plan for an adult par-
ticipant under subtitle B of title I of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2811 et seq.), in order to deter-
mine whether such eligible individual also qualifies for in-
tensive or training services described in section 134(d) of 
such Act (29 U.S.C. 2864(d)). 
‘‘(B) An assessment and service strategy or individual 
employment plan prepared under subtitle B of title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2811 et seq.) 
for an eligible individual may be used to comply with the 
requirement specified in subparagraph (A).
‘‘(c)(1) The Secretary may pay a share not to exceed 
90 percent of the cost of any project for which a grant is 
made under subsection (b), except that the Secretary may 
pay all of such cost if such project is— 
‘‘(A) an emergency or disaster project; or 
‘‘(B) a project located in an economically de-
pressed area, as determined by the Secretary in con-
sultation with the Secretary of Commerce and the 
Secretary of Health and Human Services. 
‘‘(2) The non-Federal share shall be in cash or in kind. 
In determining the amount of the non-Federal share, the 
Secretary may attribute fair market value to services and 
facilities contributed from non-Federal sources. 
‘‘(3) Of the amount to be paid under this subsection 
by the Secretary for a project, not to exceed 13.5 percent 
shall be available for any fiscal year to pay the administra-
tive costs of such project, except that— 
‘‘(A) the Secretary may increase the amount 
available to pay administrative costs to an amount 
not to exceed 15 percent of the cost of such project if 
the Secretary determines, based on information sub-
mitted by the grantee under subsection (b), that such 
increase is necessary to carry out such project; and 
‘‘(B) if the grantee under subsection (b) dem-
onstrates to the Secretary that—
‘‘(i) major administrative cost increases are 
being incurred in necessary program compo-
nents, including liability insurance, payments 
for workers’ compensation, costs associated with 
achieving unsubsidized placement goals, and 
other operation requirements imposed by the Sec-
retary; 
‘‘(ii) the number of positions in the project 
or the number of minority eligible individuals 
participating in the project will decline if the 
amount available to pay administrative costs is 
not increased; or 
‘‘(iii) the size of the project is so small that 
the amount of administrative costs incurred to 
carry out the project necessarily exceeds 13.5 
percent of the cost of such project; 
the Secretary shall increase the amount available for 
such fiscal year to pay administrative costs to an 
amount not to exceed 15 percent of the cost of such 
project. 
‘‘(4) Administrative costs are the costs, both personnel 
and non-personnel and both direct and indirect, associated 
with the following:
‘‘(A) The costs of performing general administra-
tive functions and of providing for the coordination 
of functions, such as— 
‘‘(i) accounting, budgeting, financial, cash 
management and related data processing; 
‘‘(ii) quality assurance; 
‘‘(iii) preparing program plans; 
‘‘(iv) procurement and purchasing; 
‘‘(v) property management; 
‘‘(vi) personnel management, including per-
sonnel administration, administration of affirm-
ative action plans, and training and staff devel-
opment; 
‘‘(vii) administrative salaries, including 
clerical and other support staff salaries; 
‘‘(viii) payroll functions; 
‘‘(ix) coordinating the resolution of findings 
arising from audits, reviews, investigations, and 
incident reports; 
‘‘(x) audit; 
‘‘(xi) general legal services; 
‘‘(xii) developing systems and procedures, 
including information systems, required for ad-
ministrative functions; 
‘‘(xiii) preparing reports; and
‘‘(xiv) other activities necessary for the gen-
eral administration of government funds and as-
sociated programs. 
‘‘(B) The costs of performing oversight and mon-
itoring responsibilities. 
‘‘(C) The costs of goods and services required for 
administrative functions of such program, including 
goods and services such as rental or purchase of 
equipment, utilities, office supplies, postage, and rent-
al and maintenance of office space. 
‘‘(D) The travel costs incurred for official busi-
ness in carrying out such program, excluding travel 
costs related to providing services. 
‘‘(E) The costs of information systems related to 
personnel, procurement, purchasing, property man-
agement, accounting, and payroll systems), including 
the purchase, systems development, and operating 
costs of such systems. 
‘‘(F) The costs of technical assistance, profes-
sional organization membership dues, removal of ar-
chitectural barriers, operating and maintaining as-
sistive technology, and evaluating program results 
against stated objectives. 
‘‘(5) To the extent practicable, an entity that carries 
out a project under this title shall provide for the payment