PUBLIC LAW 105-220—AUG. 7, 1998 112 STAT. 1043 subtitle B are conducted and records maintained in accordance with generally accepted accounting principles applicable in each State. (2) COST PRINCIPLES.— (A) IN GENERAL.—Each State (including the Governor of the State), local area (including the chief elected official for the area), and provider receiving funds under this title shall comply with the applicable uniform cost principles included in the appropriate circulars of the Office of Management and Budget for the type of entity receiving the funds, (B) EXCEPTION. — The funds made available to a State for administration of statewide workforce investment activities in accordance with section 134(a)(3)(B) shall be allocable to the overall administration of workforce investment activities, but need not be specifically allocable to— (i) the administration of adult employment and training activities; (ii) the administration of dislocated worker employ- ment and training activities; or (iii) the administration of youth activities. (3) UNIFORM ADMINISTRATIVE REQUIREMENTS. — (A) IN GENERAL. —Each State (including the Governor of the State), local area (including the chief elected official for the area), and provider receiving funds under this title shall comply with the appropriate uniform administrative requirements for grants and agreements applicable for the t3T)e of entity receiving the funds, as promulgated in circulars or rules of the Office of Management and Budget. (B) ADDITIONAL REQUIREMENT.— Procurement transactions under this title between local boards and units of State or local governments shall be conducted only on a cost-reimbursable basis. (4) MONITORING. — Each Governor of a State shall conduct on an annual basis onsite monitoring of each local area within the State to ensure compliance with the uniform administrative requirements referred to in paragraph (3). (5) ACTION BY GOVERNOR.—If the Governor determines that a local area is not in compliance with the uniform administrative requirements referred to in paragraph (3), the Governor shall— (A) require corrective action to secure prompt compliance; and (B) impose the sanctions provided under subsection (b) in the event of failure to take the required corrective action. (6) CERTIFICATION.— The Governor shall, every 2 years, certify to the Secretary that— (A) the State has implemented the uniform administrative requirements referred to in paragraph (3); (B) the State has monitored local areas to ensure compliance with the uniform administrative requirements as required under paragraph (4); and (C) the State has taken appropriate action to secure compliance pursuant to paragraph (5).
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