HR 5293 RFS 
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 
determine whether such eligible individual also qualifies 
for intensive or training services described in section 
134(d) of such Act (29 U.S.C. 2864(d)). 
‘‘(B) An assessment and service strategy or indi-
vidual 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 
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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 
submitted 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— 
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‘‘(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: 
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‘‘(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 
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