 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
                   SUBCHAPTER XIV--GENERAL PROVISIONS
 
    Part B--Flexibility in the Use of Administrative and Other Funds
 
Sec. 8823. Consolidation of funds for local administration


(a) General authority

    In accordance with regulations of the Secretary, a local educational 
agency, with the approval of its State educational agency, may 
consolidate and use for the administration of one or more covered 
programs for any fiscal year not more than the percentage, established 
in each covered program, of the total amount available to the local 
educational agency under such covered programs.

(b) State procedures

    Within one year from October 20, 1994, a State educational agency 
shall, in collaboration with local educational agencies in the State, 
establish procedures for responding to requests from local educational 
agencies to consolidate administrative funds under subsection (a) of 
this section and for establishing limitations on the amount of funds 
under covered programs that may be used for administration on a 
consolidated basis.

(c) Conditions

    A local educational agency that consolidates administrative funds 
under this section for any fiscal year shall not use any other funds 
under the programs included in the consolidation for administration for 
that fiscal year.

(d) Uses of administrative funds

    A local educational agency that consolidates administrative funds 
under this section may use such consolidated funds for the 
administration of covered programs and for the uses described in section 
8821(b)(2) of this title.

(e) Records

    A local educational agency that consolidates administrative funds 
under this section shall not be required to keep separate records, by 
individual covered program, to account for costs relating to the 
administration of covered programs included in the consolidation.

(Pub. L. 89-10, title XIV, Sec. 14203, as added Pub. L. 103-382, title 
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3892.)
