110 STAT. 1352 PUBLIC LAW 104-146—MAY 20, 1996 (iii) by striking "accounting, reporting, and program oversight functions"; (iv) by adding at the end thereof the following new sentence: "In the case of entities and subcontractors to which such officer allocates amounts received by the officer under the grant, the officer shall ensure that, of the aggregate amount so allocated, the total of the expenditures by such entities for administrative expenses does not exceed 10 percent (without regard to whether particular entities expend more than 10 percent for such expenses)."; and (v) by adding at the end thereof the following new paragraphs: "(2) ADMINISTRATIVE ACTIVITIES. —For the purposes of paragraph (1), amounts may be used for administrative activities that include— "(A) routine grant administration and monitoring activities, including the development of applications for part A funds, the receipt and disbursal of program funds, the development and establishment of reimbursement and accounting systems, the preparation of routine programmatic and financial reports, and compliance with grant conditions and audit requirements; and "(B) all activities associated with the grantee's contract award procedures, including the development of requests for proposals, contract proposal review activities, negotiation and awarding of contracts, monitoring of contracts through telephone consultation, written documentation or onsite visits, reporting on contracts, and funding reallocation activities. "(3) SUBCONTRACTOR ADMINISTRATIVE COSTS.— For the purposes of this subsection, subcontractor administrative activities include— "(A) usual and recognized overhead, including established indirect rates for agencies; "(B) management oversight of specific programs funded under this title; and "(C) other types of program support such as quality assurance, quality control, and related activities.". (5) APPLICATION.— Section 2605 (42 U.S.C. 300ff-15) is amended— (A) in subsection (a)— (i) in the matter preceding paragraph (1), by inserting ", in accordance with subsection (c) regarding a single application and grant award," after "application"; (ii) in paragraph (1)(B), by striking "1-year period" and all that follows through "eligible area" and inserting "preceding fiscal year"; (iii) in paragraph (4), by striking "and" at the end thereof; (iv) in paragraph (5), by striking the period at the end thereof and inserting "; and"; and (v) by adding at the end thereof the following new paragraph: "(6) that the applicant has participated, or will agree to participate, in the statewide coordinated statement of need
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