
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 25USC2008]

 
                            TITLE 25--INDIANS
 
              CHAPTER 22--BUREAU OF INDIAN AFFAIRS PROGRAMS
 
Sec. 2008. Administrative cost grants


(a) Purpose; effect upon appropriated amounts

    (1) The Secretary shall, subject to the availability of appropriated 
funds, provide grants to each tribe or tribal organization operating a 
contract school or grant school in the amount determined under this 
section with respect to the tribe or tribal organization for the purpose 
of paying the administrative and indirect costs incurred in operating 
contract or grant schools in order to--
        (A) enable tribes and tribal organizations operating such 
    schools, without reducing direct program services to the 
    beneficiaries of the program, to provide all related administrative 
    overhead services and operations necessary to meet the requirements 
    of law and prudent management practice, and
        (B) carry out other necessary support functions which would 
    otherwise be provided by the Secretary or other Federal officers or 
    employees, from resources other than direct program funds, in 
    support of comparable Bureau operated programs.

    (2) Amounts appropriated to fund the grants provided under this 
section shall be in addition to, and shall not reduce, the amounts 
appropriated for the program being administered by the contract or grant 
school.

(b) Determination of amount; reduction for Federal education program 
        payments; reimbursement by Federal departments or agencies

    (1) The amount of the grant provided to each tribe or tribal 
organization under this section for each fiscal year shall be determined 
by applying the administrative cost percentage rate of the tribe or 
tribal organization to the aggregate of the Bureau elementary and 
secondary functions operated by the tribe or tribal organization for 
which funds are received from or through the Bureau. The administrative 
cost percentage rate determined under subsection (c) of this section 
does not apply to other programs operated by the tribe or tribal 
organization.
    (2) The Secretary shall--
        (A) reduce the amount of the grant determined under paragraph 
    (1) to the extent that payments for administrative costs are 
    actually received by an Indian tribe or tribal organization under 
    any Federal education program included in the direct cost base of 
    the tribe or tribal organization, and
        (B) take such actions as may be necessary to be reimbursed by 
    any other department or agency of the Federal Government for the 
    portion of grants made under this section for the costs of 
    administering any program for Indians that is funded by 
    appropriations made to such other department or agency.

(c) Administrative cost percentage rate

    (1) For purposes of this section, the administrative cost percentage 
rate for a contract or grant school for a fiscal year is equal to the 
percentage determined by dividing--
        (A) the sum of--
            (i) the amount equal to--
                (I) the direct cost base of the tribe or tribal 
            organization for the fiscal year, multiplied by
                (II) the minimum base rate, plus

            (ii) the amount equal to--
                (I) the standard direct cost base, multiplied by
                (II) the maximum base rate, by

        (B) the sum of--
            (i) the direct cost base of the tribe or tribal organization 
        for the fiscal year, plus
            (ii) the standard direct cost base.

    (2) The administrative cost percentage rate shall be determined to 
the \1/100\ of a decimal point.

(d) Administrative cost account; availability of funds; effect upon 
        indirect cost recovery determinations

    (1)(A) Funds received by a tribe or contract or grant school as 
grants under this section for tribal elementary or secondary educational 
programs may be combined by the tribe or contract or grant school into a 
single administrative cost account without the necessity of maintaining 
separate funding source accounting.
    (B) Indirect cost funds for programs at the school which share 
common administrative services with tribal elementary or secondary 
educational programs may be included in the administrative cost account 
described in subparagraph (A).
    (2) Funds received as grants under this section with respect to 
tribal elementary or secondary education programs shall remain available 
to the contract or grant school without fiscal year limitation and 
without diminishing the amount of any grants otherwise payable to the 
school under this section for any fiscal year beginning after the fiscal 
year for which the grant is provided.
    (3) Funds received as grants under this section for Bureau funded 
programs operated by a tribe or tribal organization under a contract or 
agreement shall not be taken into consideration for purposes of indirect 
cost underrecovery and overrecovery determinations by any Federal agency 
for any other funds, from whatever source derived.
    (4) In applying this section and section 105 of the Indian Self-
Determination and Education Assistance Act [25 U.S.C. 450j] with respect 
to an Indian tribe or tribal organization that--
        (A) receives funds under this section for administrative costs 
    incurred in operating a contract or grant school or a school 
    operated under the Tribally Controlled Schools Act of 1988 [25 
    U.S.C. 2501 et seq.], and
        (B) operates 1 or more other programs under a contract or grant 
    provided under the Indian Self-Determination and Education 
    Assistance Act [25 U.S.C. 450 et seq.],

the Secretary shall ensure that the Indian tribe or tribal organization 
is provided with the full amount of the administrative costs, and of the 
indirect costs, that are associated with operating the contract or grant 
school, a school operated under the Tribally Controlled Schools Act of 
1988, and all of such other programs, except that funds appropriated for 
implementation of this section shall be used only to supply the amount 
of the grant required to be provided by this section.

(e) Definitions

    For purposes of this section:
        (1)(A) The term ``administrative cost'' means the costs of 
    necessary administrative functions which--
            (i) the tribe or tribal organization incurs as a result of 
        operating a tribal elementary or secondary educational program,
            (ii) are not customarily paid by comparable Bureau operated 
        programs out of direct program funds, and
            (iii) are either--
                (I) normally provided for comparable Bureau programs by 
            Federal officials using resources other than Bureau direct 
            program funds, or
                (II) are otherwise required of tribal self-determination 
            program operators by law or prudent management practice.

        (B) The term ``administrative cost'' may include--
            (i) contract or grant (or other agreement) administration;
            (ii) executive, policy, and corporate leadership and 
        decisionmaking;
            (iii) program planning, development, and management;
            (iv) fiscal, personnel, property, and procurement 
        management;
            (v) related office services and record keeping; and
            (vi) costs of necessary insurance, auditing, legal, safety 
        and security services.

        (2) The term ``Bureau elementary and secondary functions'' 
    means--
            (A) all functions funded at Bureau schools by the Office;
            (B) all programs--
                (i) funds for which are appropriated to other agencies 
            of the Federal Government, and
                (ii) which are administered for the benefit of Indians 
            through Bureau schools; and

            (C) all operation, maintenance, and repair funds for 
        facilities and government quarters used in the operation or 
        support of elementary and secondary education functions for the 
        benefit of Indians, from whatever source derived.

        (3)(A) Except as otherwise provided in this subparagraph (B), 
    the direct cost base of a tribe or tribal organization for the 
    fiscal year is the aggregate direct cost program funding for all 
    tribal elementary or secondary educational programs operated by the 
    tribe or tribal organization during--
            (i) the second fiscal year preceding such fiscal year, or
            (ii) if such programs have not been operated by the tribe or 
        tribal organization during the 2 preceding fiscal years, the 
        first fiscal year preceding such fiscal year.

        (B) In the case of Bureau elementary or secondary education 
    functions which have not previously been operated by a tribe or 
    tribal organization under contract, grant, or agreement with the 
    Bureau, the direct cost base for the initial year shall be the 
    projected aggregate direct cost program funding for all Bureau 
    elementary and secondary functions to be operated by the tribe or 
    tribal organization during that fiscal year.
        (4) The term ``maximum base rate'' means 50 percent.
        (5) The term ``minimum base rate'' means 11 percent.
        (6) The term ``standard direct cost base'' means $600,000.
        (7) The term ``tribal elementary or secondary educational 
    programs'' means all Bureau elementary and secondary functions, 
    together with any other Bureau programs or portions of programs 
    (excluding funds for social services that are appropriated to 
    agencies other than the Bureau and are expended through the Bureau, 
    funds for major subcontracts, construction, and other major capital 
    expenditures, and unexpended funds carried over from prior years) 
    which share common administrative cost functions, that are operated 
    directly by a tribe or tribal organization under a contract, grant, 
    or agreement with the Bureau.

(f) Studies for determination of factors affecting costs, minimum and 
        maximum base rates, and standard direct cost base; report to 
        Congress

    (1) Upon April 28, 1988, the Secretary shall--
        (A) conduct such studies as may be needed to establish an 
    empirical basis for determining relevant factors substantially 
    affecting the required administrative costs of tribal elementary and 
    secondary educational programs, using the formula set forth in 
    subsection (c) of this section, and
        (B) conduct a study to determine--
            (i) a maximum base rate which ensures that the amount of the 
        grants provided under this section will provide adequate (but 
        not excessive) funding of the administrative costs of the 
        smallest tribal elementary or secondary educational programs,
            (ii) a minimum base rate which ensures that the amount of 
        the grants provided under this section will provide adequate 
        (but not excessive) funding of the administrative costs of the 
        largest tribal elementary or secondary educational programs, and
            (iii) a standard direct cost base which is the aggregate 
        direct cost funding level for which the percentage determined 
        under subsection (c) of this section will--
                (I) be equal to the median between the maximum base rate 
            and the minimum base rate, and
                (II) ensure that the amount of the grants provided under 
            this section will provide adequate (but not excessive) 
            funding of the administrative costs of tribal elementary or 
            secondary educational programs closest to the size of the 
            program.

    (2) The studies required under paragraph (1) shall--
        (A) be conducted in full consultation (in accordance with 
    section 2011 of this title) with--
            (i) the tribes and tribal organizations that are affected by 
        the application of the formula set forth in subsection (c) of 
        this section, and
            (ii) all national and regional Indian organizations of which 
        such tribes and tribal organizations are typically members;

        (B) be conducted onsite with a representative statistical sample 
    of the tribal elementary or secondary educational programs under a 
    contract entered into with a nationally reputable public accounting 
    and business consulting firm;
        (C) take into account the availability of skilled labor, 
    commodities, business and automatic data processing services, 
    related Indian preference and Indian control of education 
    requirements, and any other market factors found substantially to 
    affect the administrative costs and efficiency of each such tribal 
    elementary or secondary educational program studied in order to 
    assure that all required administrative activities can reasonably be 
    delivered in a cost effective manner for each such program, given an 
    administrative cost allowance generated by the values, percentages, 
    or other factors found in the studies to be relevant in such 
    formula;
        (D) identify, and quantify in terms of percentages of direct 
    program costs, any general factors arising from geographic 
    isolation, or numbers of programs administered, independent of 
    program size factors used to compute a base administrative cost 
    percentage in such formula; and
        (E) identify any other incremental cost factors substantially 
    affecting the costs of required administrative cost functions at any 
    of the tribal elementary or secondary educational programs studied 
    and determine whether the factors are of general applicability to 
    other such programs, and (if so) how the factors may effectively be 
    incorporated into such formula.

    (3) In carrying out the studies required under this subsection, the 
Secretary shall obtain the input of, and afford an opportunity to 
participate to, the Inspector General of the Department of the Interior.
    (4) Determinations described in paragraph (2)(C) shall be based on 
what is pragmatically possible to do at each location studied, given 
prudent management practice, irrespective of whether required 
administrative services were actually or fully delivered at these sites, 
or other services were delivered instead, during the period of the 
study.
    (5) Upon completion of the studies conducted under paragraph (1), 
but in no case later than October 1, 1989, the Secretary shall submit to 
the Congress a report on the findings of the studies, together with 
determinations based upon such findings that would affect the 
definitions of terms used in the formula that is set forth in subsection 
(c) of this section.
    (6) The Secretary shall include in the Bureau's justification for 
each appropriations request for each fiscal year beginning after fiscal 
year 1989, a projection of the overall costs associated with the formula 
set forth in subsection (c) of this section for all tribal elementary or 
secondary educational programs which the Secretary expects to be funded 
in the fiscal year for which the appropriations are sought.
    (7) For purposes of this subsection, the size of tribal elementary 
or secondary educational programs is determined by the aggregate direct 
cost program funding level for all Bureau funded programs which share 
common administrative cost functions.

(g) Authorization of appropriations; procedure where amount of funds 
        necessary exceeds appropriated amount

    (1) There are authorized to be appropriated for each fiscal year 
such sums as may be necessary to carry out this section.
    (2) If the total amount of funds necessary to provide grants to 
tribes and tribal organizations in the amounts determined under 
subsection (b) of this section for a fiscal year exceeds the amount of 
funds appropriated to carry out this section for such fiscal year, the 
Secretary shall reduce the amount of each grant determined under 
subsection (b) of this section for such fiscal year by an amount that 
bears the same relationship to such excess as the amount of such grant 
determined under subsection (b) of this section bears to the total of 
all grants determined under subsection (b) of this section for all 
tribes and tribal organizations for such fiscal year.

(h) Amounts for fiscal years 1989, 1990, and 1991

    (1) Notwithstanding any other provision of this section, the amount 
of the grants provided under this section for fiscal year 1989 shall--
        (A) in lieu of being determined under subsection (b) of this 
    section, be determined for each tribal elementary or secondary 
    educational program on the same basis that indirect costs were 
    determined for such programs for fiscal year 1988, and
        (B) be subject to the provisions of subsection (d) of this 
    section.

    (2) Notwithstanding any other provision of this section, the amount 
of the grant provided under this section for fiscal year 1990 with 
respect to each tribal elementary and secondary educational program that 
was operated by a tribe or tribal organization in fiscal year 1989 shall 
be equal to--
        (A) if the amount of the grant determined under subsection (b) 
    of this section for fiscal year 1990 with respect to such program 
    exceeds the amount received by the tribe or tribal organization with 
    respect to such program for administrative costs for fiscal year 
    1988 (or fiscal year 1989 if such program was not operated by the 
    tribe or tribal organization during fiscal year 1988), the sum of--
            (i) such amount received, plus
            (ii) \1/3\ of the excess of--
                (I) such amount determined under subsection (b) of this 
            section, over
                (II) such amount received, or

        (B) if such amount received exceeds such amount determined under 
    subsection (b) of this section, the excess of--
            (i) such amount received, over
            (ii) an amount equal to \1/3\ of the excess of--
                (I) such amount received, over
                (II) such amount determined under subsection (b) of this 
            section.

    (3) Notwithstanding any other provision of this section, the amount 
of the grants provided under this section for fiscal year 1991 with 
respect to each tribal elementary and secondary educational program that 
was operated by a tribe or tribal organization in fiscal year 1989 shall 
be equal to--
        (A) if the amount of the grant determined under subsection (b) 
    of this section for fiscal year 1991 with respect to such program 
    exceeds the amount received by the tribe or tribal organization with 
    respect to such program for administrative costs for fiscal year 
    1990, the sum of--
            (i) such amount received, plus
            (ii) \1/2\ of the excess of--
                (I) such amount determined under subsection (b) of this 
            section, over
                (II) such amount received, or

        (B) if such amount received exceeds such amount determined under 
    subsection (b) of this section, the excess of--
            (i) such amount received, over
            (ii) an amount equal to \1/2\ of the excess of--
                (I) such amount received over,
                (II) such amount determined under subsection (b) of this 
            section.

(i) Application of section to certain tribally controlled schools

    The provisions of this section shall also apply to those schools 
operating under the Tribally Controlled Schools Act of 1988 [25 U.S.C. 
2501 et seq.].

(Pub. L. 95-561, title XI, Sec. 1128, as added Pub. L. 103-382, title 
III, Sec. 381, Oct. 20, 1994, 108 Stat. 3993.)

                       References in Text

    The Tribally Controlled Schools Act of 1988, referred to in subsecs. 
(d)(4) and (i), is part B (Secs. 5201-5212) of title V of Pub. L. 100-
297, Apr. 28, 1988, 102 Stat. 385, as amended, which is classified 
generally to chapter 27 (Sec. 2501 et seq.) of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 2501 of this title and Tables.
    The Indian Self-Determination and Education Assistance Act, referred 
to in subsec. (d)(4)(B), is Pub. L. 93-638, Jan. 4, 1975, 88 Stat. 2203, 
as amended, which is classified principally to part A (Sec. 450 et seq.) 
of subchapter II of chapter 14 of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 450 of this title and Tables.


                            Prior Provisions

    Prior sections 2008 and 2008a were omitted in the general amendment 
of this chapter by Pub. L. 103-382.
    Section 2008, Pub. L. 95-561, title XI, Sec. 1128, Nov. 1, 1978, 92 
Stat. 2320; Pub. L. 96-46, Sec. 2(b)(7), (8), Aug. 6, 1979, 93 Stat. 
341; Pub. L. 98-511, title V, Sec. 505, Oct. 19, 1984, 98 Stat. 2394; 
Pub. L. 99-89, Sec. 5, Aug. 15, 1985, 99 Stat. 381; Pub. L. 99-228, 
Sec. 1, Dec. 28, 1985, 99 Stat. 1747; Pub. L. 100-297, title V, 
Secs. 5107(a), 5108(b), (c), Apr. 28, 1988, 102 Stat. 368, 375; Pub. L. 
100-427, Secs. 2(a), (b)(1), (c), 3, 5, Sept. 9, 1988, 102 Stat. 1604, 
1605; Pub. L. 101-301, Sec. 5(d)(1), May 24, 1990, 104 Stat. 208; Pub. 
L. 103-382, title III, Sec. 393(b), Oct. 20, 1994, 108 Stat. 4026, 
related to allotment formula.
    Section 2008a, Pub. L. 95-561, title XI, Sec. 1128A, as added Pub. 
L. 100-297, title V, Sec. 5108(a), Apr. 28, 1988, 102 Stat. 369; amended 
Pub. L. 100-427, Sec. 4, Sept. 9, 1988, 102 Stat. 1604; Pub. L. 101-301, 
Sec. 5(f), May 24, 1990, 104 Stat. 208, related to administrative cost 
grants.

                  Section Referred to in Other Sections

    This section is referred to in sections 458cc, 2503, 2504, 2511 of 
this title.
