97 STAT. 1416 PUBLIC LAW 98-211 —DEC. 8, 1983 agencies as to the expenditures made pursuant to its application under section 566; and". 20 USC 3816. (c) Section 566(c) of the Act is amended by adding at the end thereof the following: "In exercising such discretion, it shall be the responsibility of each local educational agency to ensure that each expenditure of funds under this chapter is for the purpose of meet- ing the educational needs within the schools of that local educational agency.". PHASE-OUT AND TRANSITION EXPENSES 20 USC 3812. SEC. 10. Section 562(c) of the Act is amended by adding at the end thereof the following: "Until September 30, 1983, such funds may also be used to assist in phasing out programs described in section 20 USC 3811. 561(a) and in promoting an orderly transition to operations under this chapter. ". STATE ALLOTMENTS 20 USC 3813. SEC. 11. The first sentence of section 563(a) is amended by striking out "not to exceed". AUDIT REQUIREMENT FOR SMALL LOCAL EDUCATIONAL AGENCIES 20 USC 3814. SEC. 12. Section 564 of the Act is amended by adding at the end thereof the following new subsection: 31 USC 7305. " (c) Notwithstanding section 1745 of this Act, local educational agencies receiving less than an average $5,000 each year under this chapter need not be audited more frequently than once every five years.". REQUIREMENT FOR STATE CERTIFICATION OF LOCAL EDUCATIONAL AGENCY APPLICATIONS 20 USC 3816. SEC. 13. Section 566(a) of the Act is amended by striking out everything preceding paragraph (1) and inserting in lieu thereof the following: "SEC. 566. (a) A local educational agency may receive its allocation of funds under this chapter for any year for which its application to the State educational agency has been certified to meet the require- ments of this subsection. The State educational agency shall certify any such application if such application— ". SCHOOL LEVEL PROGRAMS 20 USC 3823. SEC. 14. Section 573(a) of the Act is amended by striking out "chapter" in the first sentence and inserting in lieu thereof "sub- chapter' STATE RULEMAKING 20 USC 3871. SEC. 15. Section 591 of the Act is amended by adding at the end thereof the following new subsection: "(d) Nothing in this subtitle shall be interpreted (1) to authorize State regulations, issued pursuant to procedures as established by State law, applicable to local educational agency programs or proj- ects funded under this subtitle, except as related to State audit and financial responsibilities, or (2) to encourage, preempt, or prohibit
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