ject to the limitation in subsection (c)) bear to the
total of such amounts for all States.
(2) PAYMENTS IN SUBSEQUENT YEARS.—The
total amount payable to a State under this Act for
each subsequent fiscal year shall be the amount pay-
able to the State under this subsection in the pre-
ceding year increased by the percentage increase in
the consumer price index for all urban consumers
(U.S. city average) for the 12-month period ending
with June of the previous year.
(3) TIMING; 
FREQUENCY.—Payments under
this section shall be made in accordance with section
203 of the Intergovernmental Cooperation Act of
1968 from amounts determined to be available to
the State under paragraph (1), and payments shall
be made at the same time and in the same frequency
as the Secretary determines appropriate for making
payments under section 403(b)(3) or section
1903(d)(2) of the Social Security Act.
(b) ALLOWABLE ADMINISTRATIVE AMOUNTS DE-
FINED.—
(1) IN GENERAL.—For purposes of subsection
(a)(1), the term ‘‘allowable administrative amount’’
means (subject to paragraphs (2) and (3)), with re-
spect to a State, the amounts determined to be pay-
able to a State for the quarter specified is equal to
the sum of—
(A) payments to the State under section
403(a)(3) of the Social Security Act (excluding
any 
amounts 
determined 
under 
section
403(a)(3)(B) of such Act);
(B) payments to the State under para-
graphs (2), (3), (4), and (6) of section 1903(a)
of such Act (excluding amounts paid for the ac-
tivities described in paragraph (3)(A) of such
section); and
(C) payments to the State under section
16(a) of the Food Stamp Act of 1977 (exclud-
ing amounts retained by a State under such
section because of its collection or recovery ac-
tivities, and without regard to any adjustment
under section 16(c) of such Act or any amounts
paid under such section for the cost of inves-
tigations or prosecutions, or the cost of admin-
istering the food stamp program on all or part
of an Indian reservation).
(2) LIMITATION.—For purposes of paragraph
(1), in determining the amount of payments to a
State for a fiscal year, the State’s expenditures shall
be considered only if amounts have been transferred
for grants under this Act for such year from sums
otherwise available (but for such transfer) for ad-
ministrative costs under title IV or title XIX of the
Social Security Act or under the Food Stamp Act of
1977.
(3) ELIMINATION OF ENHANCED ADMINISTRA-
TIVE
PAYMENTS
IN
DETERMINING
AMOUNT
OF
GRANTS.—In carrying out this subsection, the Sec-
retary shall apply the Social Security Act and the
Food Stamp Act of 1977 as if the amendments to
those Acts made by section 3 had been in effect for
quarters beginning during 1993.
(c) TREATMENT OF AMOUNTS IN DISPUTE.—In the
event that there is a dispute between a State and the Sec-
retary (or the Secretary of Agriculture) with respect to
any such claim for payment which, if approved, would be
included in computing the State’s allotment under sub-
section (a), the amount in dispute shall not be included
for purposes of making allotments under such subsection
for any year prior to the first year beginning after the
dispute is resolved.
SEC. 5. REPORT ON INTENDED USE OF FUNDS AND ACTIVI-
TIES; AUDIT.
(a) REPORT BY STATE.—Each State desiring to re-
ceive an allotment for any fiscal year under this Act shall
prepare a report on the intended use of such allotment.
Such report shall describe in general terms of goals to be
achieved and classes of administrative expenditures for
which funds received under the grant will be used. The
report shall assure that fiscal control and fund accounting
procedures will be established that are adequate to meet
the requirements of subsection (b). The report (for the
second and subsequent years for which an allotment is
sought under this Act) shall also include a description of
the State’s activities under the Act in the fiscal year pre-
ceding the year for which such report is prepared and the
extent to which the goals it identified in the report for
such preceding year were achieved. The report shall be
made public within the State on a timely basis and in such
manner as to facilitate review by and comments from in-
terested persons and local governments on its content, and
a copy of the report will be provided to the Secretary.
(b) AUDITS.—Each State receiving a grant under
this Act shall biennially conduct a financial and compli-
ance audit of its expenditures from such grants. Such
State audits shall be conducted by an entity independent
of any State agency administering activities carried out
under this subsection, and in accordance with the Comp-
troller General’s standards for auditing governmental or-
ganizations, programs, activities, and functions. The State
shall also make copies of the audit available for public in-
spection within the State.
SEC. 6. INAPPLICABILITY OF SINGLE STATE AGENCY RE-
QUIREMENTS UNDER OTHER ACTS.
Notwithstanding any other provision of the Social Se-
curity Act or of the Food Stamp Act of 1977, a State
plan approved under part A of title IV of the Social Secu-
rity Act, under title XIX of such Act, or a State plan of
operation required by section 11(d) of the Food Stamp
Act of 1977, shall not be regarded as failing to comply
with applicable requirements under such provisions solely
because the agency administering the grant provided
under this Act is not the same State agency otherwise re-
sponsible for the administration of such State plan.
SEC. 7. CONFORMING AMENDMENTS.
(a) AFDC.—Section 403(a)(3) of the Social Security
Act (42 U.S.C. 603(a)(3)) is amended by striking ‘‘plan—
’’ and inserting ‘‘plan (except to the extent that payment
is made to the State for expenditures under this part dur-
ing quarters in the fiscal year under the Combined Wel-
fare Administration Act of 1993)—’’.
(b) MEDICAID.—Section 1903(a)(3) of the Social Se-
curity Act (42 U.S.C. 1396b(a)(3)) is amended by striking
‘‘(3)’’ and inserting ‘‘(3) except to the extent that payment
is made to the State for expenditures under this title dur-