112 STAT. 1072 PUBLIC LAW 105-220—AUG. 7, 1998 20 USC 9242. SEC. 232. LOCAL APPLICATION. Each eligible provider desiring a grant or contract under this subtitle shall submit an application to the eligible agency containing such information and assurances as the eligible agency may require, including— (1) a description of how funds awarded under this subtitle will be spent; and (2) a description of any cooperative arrangements the eligible provider has with other agencies, institutions, or organizations for the delivery of adult education and literacy activities. 20 USC 9243. SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. (a) IN GENERAL.—Subject to subsection (b), of the amount that is made available under this subtitle to an eligible provider— (1) not less than 95 percent shall be expended for carrying out adult education and literacy activities; and (2) the remaining amount, not ta exceed 5 percent, shall be used for planning, administration, "personnel development, and interagency coordination. (b) SPECIAL RULE. — In cases where the cost limits described in subsection (a) are too restrictive to allow for adequate planning, administration, personnel development, and interagency coordination, the eligible provider shall negotiate with the eligible agency in order to determine an adequate level of funds to be used for noninstructional purposes. CHAPTER 4—GENERAL PROVISIONS 20 USC 9251. SEC. 241. ADMINISTRATIVE PROVISIONS. (a) SUPPLEMENT NOT SUPPLANT.— Funds made available for adult education and literacy activities under this subtitle shall supplement and not supplant other State or local public funds expended for adult education and literacy activities. (b) MAINTENANCE OF EFFORT. — (1) IN GENERAL.— (A) DETERMINATION. —An eligible agency may receive funds under this subtitle for any fiscal year if the Secretary finds that the fiscal effort per student or the aggregate ^" expenditures of such eligible agency for adult education and literacy activities, in the second preceding fiscal year, was not less than 90 percent of the fiscal effort per student or the aggregate expenditures of such eligible agency for adult education and literacy activities, in the third preced- ^ ing fiscal year. (B) PROPORTIONATE REDUCTION.— Subject to paragraphs (2), (3), and (4), for any fiscal year with respect to which the Secretary determines under subparagraph (A) that the fiscal effort or the aggregate expenditures of an eligible agency for the preceding program year were less than such effort or expenditures for the second preceding program year, the Secretary— (i) shall determine the percentage decreases in such effort or in such expenditures; and (ii) shall decrease the payment made under this subtitle for such program year to the agency for adult
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