25 U.S.C. § 2008 : US Code - Section 2008: Administrative cost grants

Search 25 U.S.C. § 2008 : US Code - Section 2008: Administrative cost grants

(a) Definitions
In this section:
(1) Administrative cost
(A) In general
The term "administrative cost" means the cost of necessary
administrative 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 comparable Bureau-operated
programs out of direct program funds; and
(iii) are either -
(I) normally provided for comparable Bureau programs by
Federal officials using 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) Inclusions
The term "administrative cost" may include -
(i) contract or grant (or other agreement) administration;
(ii) executive, policy, and corporate leadership and
decisionmaking;
(iii) program planning, development, and management;
(iv) fiscal, personnel, property, and procurement
management;
(v) related office services and record keeping; and
(vi) costs of necessary insurance, auditing, legal, safety
and security services.
(2) Bureau elementary and secondary functions
The term "Bureau elementary and secondary functions" means -
(A) all functions funded at Bureau schools by the Office;
(B) all programs -
(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) In general
Except as otherwise 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 programs 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 operated by the tribe
or tribal organization during the 2 preceding fiscal years,
the first fiscal year preceding such fiscal year.
(B) Functions not previously operated
In the case of Bureau elementary or secondary education
functions which have not previously been operated by a tribe or
tribal organization under contract, grant, or agreement with
the Bureau, the direct 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 "maximum base rate" means 50 percent.
(5) Minimum base rate
The term "minimum base rate" means 11 percent.
(6) Standard direct cost base
The term "standard direct cost base" means $600,000.
(7) Tribal elementary or secondary educational 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 appropriated to agencies other
than the Bureau and are funded through the Bureau, funds for
major subcontracts, construction, and other major capital
expenditures, and unexpended funds carried over from prior years)
which share common administrative cost functions, that are
operated directly by a tribe or tribal organization under a
contract, grant, or agreement with the Bureau.
(b) Grants; effect upon appropriated amounts
(1) Grants
Subject to the availability of funds, the Secretary shall
provide grants to each tribe or tribal organization operating a
contract 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 administrative and indirect costs
incurred in operating contract or grant schools, provided that no
school operated as a stand-alone institution shall receive less
than $200,000 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 program, to provide all related
administrative overhead services and operations necessary to
meet the requirements of law and prudent management practice;
and
(B) carry out other necessary support functions which would
otherwise be provided by the Secretary or other Federal
officers or employees, 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.
(c) 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.
(2) Direct cost base funds
The Secretary shall -
(A) reduce the amount of the grant determined under paragraph
(1) to the extent that payments for administrative costs are
actually received by an Indian tribe or tribal organization
under any Federal education program included in the direct cost
base of the tribe or tribal 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 department or agency.
(d) 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 percentage 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 fiscal year, multiplied by
(II) the minimum base rate; plus
(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 percentage rate shall be determined to
the 1/100 of a decimal point.
(3) Applicability
The administrative cost percentage rate determined under this
subsection shall not apply to other programs operated by the
tribe or tribal organization.
(e) 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
programs 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 administrative services with tribal elementary or
secondary educational programs may be included in the
administrative cost account described in paragraph (1).
(f) 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
otherwise payable to the school under this section for any fiscal
year beginning after the fiscal year for which the grant is
provided.
(g) Treatment of funds
Funds received as grants under this section for Bureau-funded
programs operated 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
determinations by any Federal agency for any other funds, from
whatever source derived.
(h) Treatment of entity operating other programs
In applying this section and section 106 of the Indian Self-
Determination and Education Assistance Act [25 U.S.C. 450j-1] with
respect to an Indian tribe or tribal organization that -
(1) receives funds under this section for administrative costs
incurred in operating a contract or grant school or a school
operated under the Tribally Controlled Schools Act of 1988 [25
U.S.C. 2501 et seq.]; and
(2) operates one or more other programs under a contract or
grant provided under the Indian Self-Determination and Education
Assistance Act [25 U.S.C. 450 et seq.],
the Secretary shall ensure that the Indian tribe or tribal
organization is provided with the full amount of the administrative
costs that are associated with operating the contract or grant
school, and of the indirect costs, that are associated with all of
such other programs, except 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.
(i) Studies for determination of factors affecting costs; base
rates limits; standard direct cost base; report to Congress
(1) Studies
Not later than 120 days after January 8, 2002, 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 formula set forth
in subsection (c) of this section; 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 excessive) funding of the administrative costs of
the smallest tribal elementary or secondary educational
programs;
(ii) a minimum base rate which ensures that the amount of
the grants provided under this section will provide adequate
(but not excessive) funding of the administrative costs of
the largest tribal elementary or secondary educational
programs; and
(iii) a standard direct cost base which is the aggregate
direct cost funding level for which the percentage determined
under subsection (d) of this section 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 provide 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 2011 of this title) with -
(i) the tribes and tribal organizations that are affected
by the application of the formula set forth in subsection (c)
of this section; and
(ii) all national and regional Indian organizations of
which such tribes and tribal organizations are typically
members;
(B) be conducted onsite with a representative statistical
sample of the tribal elementary or secondary educational
programs under a contract entered into with a nationally
reputable public accounting and business consulting firm;
(C) take into account the availability of skilled labor
commodities, business and automatic data processing services,
related Indian preference and Indian control of education
requirements, and any other market factors found to
substantially affect the administrative costs and efficiency of
each such tribal elementary or secondary educational program
studied in order to ensure that all required administrative
activities can reasonably be delivered in a cost effective
manner for each such program, given an administrative cost
allowance generated by the values, percentages, or other
factors found in the studies to be relevant in such formula;
(D) identify, and quantify in terms of percentages of direct
program costs, any general factors arising from geographic
isolation, or numbers of programs administered, independent of
program size factors used to compute a base administrative cost
percentage in such formula; and
(E) identify any other incremental cost factors substantially
affecting the costs of required administrative cost functions
at any of the tribal elementary or secondary educational
programs studied and determine whether the factors are of
general applicability to other such programs, and (if so) how
the factors may effectively be incorporated into such formula.
(3) Consultation with Inspector General
In carrying out the studies required under this subsection, the
Director shall obtain the input of, and afford an opportunity to
participate to, the Inspector General of the Department of the
Interior.
(4) Consideration of delivery of administrative services
Determinations described in paragraph (2)(C) shall be based on
what is practicable at each location studied, given prudent
management practice, irrespective of whether required
administrative services were actually or fully delivered at these
sites, or whether other services were delivered instead, during
the period of the study.
(5) Report
Upon completion of the studies conducted under paragraph (1),
the Director shall submit to Congress a report on the findings of
the studies, together with determinations based upon such studies
that would affect the definitions set forth under subsection (e)
of this section that are used in the formula set forth in
subsection (c) of this section.
(6) Projection of costs
The Secretary shall include in the Bureau's justification for
each appropriations request beginning in the first fiscal year
after the completion of the studies conducted under paragraph
(1), a projection of the overall costs associated with the
formula set forth in subsection (c) of this section for all
tribal elementary or secondary education programs which the
Secretary expects to be funded in the fiscal year for which the
appropriations are sought.
(7) Determination of program size
For purposes of this subsection, the size of tribal elementary
or secondary educational programs is determined by the aggregate
direct cost program funding level for all Bureau-funded programs
which share common administrative cost functions.
(j) Authorization of appropriations
(1) In general
There are authorized to be appropriated to carry out this
section such sums as may be necessary.
(2) Reductions
If the total amount of funds necessary to provide grants to
tribes and tribal organizations in the amounts determined under
subsection (c) of this section for a fiscal year exceeds the
amount of funds appropriated to carry out this section for such
fiscal year, the Secretary shall reduce the amount of each grant
determined under subsection (c) of this section for such fiscal
year by an amount that bears the same relationship to such excess
as the amount of such grants determined under subsection (c) of
this section bears to the total of all grants determined under
subsection (c) section (!1) for all tribes and tribal
organizations for such fiscal year.
(k) Applicability to schools operating under Tribally Controlled
Schools Act of 1988
The provisions of this section shall apply to schools operating
under the Tribally Controlled Schools Act of 1988 [25 U.S.C. 2501
et seq.].
(l) Administrative cost grant budget requests
(1) In general
Beginning with President's (!2) annual budget request under
section 1105 of title 31 for fiscal year 2002, and with respect
to each succeeding budget request, at the discretion of the
Secretary, the Secretary shall submit to the appropriate
committees of Congress information and funding requests for the
full funding of administrative costs grants required to be paid
under this section.
(2) Requirements
(A) Funding for new conversions to contract or grant school
operations
With respect to a budget request under paragraph (1), the
amount required to provide full funding for an administrative
cost grant for each tribe or tribal organization expected to
begin operation of a Bureau-funded school as contract or grant
school in the academic year funded by such annual budget
request, the amount so required shall not be less than 10
percent of the amount required for subparagraph (B).
(B) Funding for continuing contract and grant school operations
With respect to a budget request under paragraph (1), the
amount required to provide full funding for an administrative
cost grant for each tribe or tribal organization operating a
contract or grant school at the time the annual budget request
is submitted, which amount shall include the amount of funds
required to provide full funding for an administrative cost
grant for each tribe or tribal organization which began
operation of a contract or grant school with administrative
cost grant funds supplied from the amount described in
subparagraph (A).