‘‘(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 Secretary; 
‘‘(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 per-
sonnel and non-personnel and both direct and indirect, as-
sociated with the following:
‘‘(A) The costs of performing general adminis-
trative functions and of providing for the coordina-
tion 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 
personnel administration, administration of af-
firmative action plans, and training and staff 
development; 
‘‘(vii) administrative salaries, including 
clerical and other support staff salaries; 
‘‘(viii) payroll functions; 
‘‘(ix) coordinating the resolution of find-
ings 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 
general administration of government funds and 
associated programs. 
‘‘(B) The costs of performing oversight and 
monitoring responsibilities. 
‘‘(C) The costs of goods and services required 
for administrative functions of such program, includ-
ing goods and services such as rental or purchase of 
equipment, utilities, office supplies, postage, and 
rental 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 
management, accounting, and payroll systems), in-
cluding the purchase, systems development, and op-
erating 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
of the expenses described in paragraph (4) from non-Fed-
eral sources. 
‘‘(6)(A) Amounts made available for a project under 
this title that are not used to pay for the administrative 
costs shall be used to pay for the costs of programmatic 
activities, including— 
‘‘(i) participant wages, such benefits as are re-
quired by law (such as workers compensation or un-
employment compensation), the costs of physical ex-
aminations, compensation for scheduled work hours 
during which an employer is closed for a Federal 
holiday, and necessary sick leave that is not part of 
an accumulated sick leave program, except that no 
amounts provided under this title may be used to 
pay the cost of pension benefits, annual leave, accu-
mulated sick leave, or bonuses; 
‘‘(ii) participant training (including the pay-
ment of reasonable costs of instructors, classroom 
rental, training supplies, materials, equipment, and 
tuition) which may be provided prior to or subse-
quent to placement and which may be provided on 
the job, in a classroom setting or pursuant to other 
appropriate arrangements; 
‘‘(iii) job placement assistance, including job de-
velopment and job search assistance;