108 STAT. 3710 PUBLIC LAW 103-382—OCT. 20, 1994 "(A) supervision of the allocation of funds to local educational agencies; "(B) planning, supervision, and processing of State funds; and "(C) monitoring and evaluation of programs and activities under this title; and "(2) technical assistance and direct grants to local educational agencies and statewide education reform activities including effective schools programs which assist local educational agencies to provide targeted assistance. "(b) LIMITATIONS AND REQUIREMENTS.—Not more than 25 percent of funds available for State programs under this title in any fiscal year may be used for State administration under subsection (a)(1). 20 USC 7332. "SEC. 6202. STATE APPLICATIONS. "(a) APPLICATION REQUIREMENTS.—Any State which desires to receive assistance under this part shall submit to the Secretary an application which— "(1) designates the State educational agency as the State agency responsible for administration and supervision of programs assisted under this title; "(2)(A) provides for a biennial submission of data on the use of funds, the types of services furnished, and the students served under this title; and "(B) in fiscal year 1998 provides for an evaluation of the effectiveness of programs assisted under this title; "(3) sets forth the allocation of such funds required to implement section 6402; "(4) provides that the State educational agency will keep such records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this section); "(5) provides assurance that, apart from technical and advisory assistance and monitoring compliance with this title, the State educational agency has not exercised and will not exercise any influence in the decisionmaking processes of local educational agencies as to the expenditure made pursuant to an application under section 6303; "(6) contains assurances that there is compliance with the specific requirements of this title; and "(7) provides for timely public notice and public dissemination of the information provided pursuant to paragraph (2). "(b) PERIOD OF APPLICATION.—An application filed by the State under subsection (a) shall be for a period not to exceed three years, and may be amended annually as may be necessary to reflect changes without filing a new application. "(c) AUDIT RULE.—Local educational agencies receiving less than an average of $5,000 each under this title shall not be audited more frequently than once every five years.