108 STAT. 3996
PUBLIC LAW 103-382—OCT. 20, 1994
"(A) conduct such studies as may be needed to establish
an empirical basis for determining relevant factors substantially affecting the required administrative costs of tribal
elementary and secondary educational programs, using the formula set forth in subsection (c), 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 (c) 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) The studies required under paragraph (1) shall—
"(A) be conducted in full consultation (in accordance with
section 1131) with—
"(i) the tribes and tribal organizations that are affected
by the application of the formula set forth in subsection
(c), and
"(ii) all national and regional Indian organizations of
which such tribes and tribal organizations are t3T)ically
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 substantially
to affect the administrative costs and efficiency of each such
tribal elementary or secondary educational program studied
in order to assure 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 func-
�
