[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR461.40]



[Page 131]

 

                           TITLE 34--EDUCATION

 

  CHAPTER IV--OFFICE OF VOCATIONAL AND ADULT EDUCATION, DEPARTMENT OF 

                                EDUCATION

 

PART 461_ADULT EDUCATION STATE-ADMINISTERED BASIC GRANT PROGRAM--Table 

of Contents

 

            Subpart E_What Conditions Must be Met by a State?

 

Sec. 461.40  What are the State and local administrative costs 

requirements?





    (a)(1) Beginning with the fiscal year 1991 grant (a grant that is 

awarded on or after July 1, 1991 from funds appropriated in the fiscal 

year 1991 appropriation), an SEA may use no more than 5 percent of its 

grant or $50,000--whichever is greater--for necessary and reasonable 

State administrative costs.

    (2) For grants awarded from funds appropriated for fiscal years 

prior to fiscal year 1991 (grants awarded before July 1, 1991), an SEA 

may determine what percent of its grant is necessary and reasonable for 

State administrative costs.

    (b)(1) At least 95 percent of an eligible recipient's award from the 

SEA must be expended for adult education instructional activities.

    (2) The remainder may be used for local administrative costs--

noninstructional expenses, including planning, administration, 

evaluation, personnel development, and coordination--that are necessary 

and reasonable.

    (3) If the administrative cost limits under paragraph (b)(2) of this 

section are insufficient for adequate planning, administration, 

evaluation, personnel development, and coordination of programs 

supported under the Act, the SEA shall negotiate with local grant 

recipients in order to determine an adequate level of funds to be used 

for noninstructional purposes.



(Authority: 20 U.S.C. 1203b and 1205(c))