§1518. Limitation on certain costs

(a) Application of cost limitations

Except as provided in subparagraph (A) or (B) of section 1551(d)(3) of this title, funds expended under this chapter shall be charged to the appropriate cost categories.

(b) Cost categories and limitations

(1) The cost limitations contained in this subsection shall apply separately to the funds allocated for programs under part A of subchapter II of this chapter, and to the funds allocated for programs under part C of such subchapter.

(2) Funds expended under parts A and C of subchapter II of this chapter shall be charged to one of the following categories:

(A) Administration.

(B) Training-related and supportive services.

(C) Direct training services.

(3) The Secretary shall, consistent with sections 1604(b) and 1644(c) of this title, define by regulation the cost categories specified in paragraph (2).

(4) Of the funds allocated to a service delivery area for any program year under parts ¹ A or C of subchapter II of this chapter-

(A) not more than 20 percent shall be expended for administration; and

(B) not less than 50 percent shall be expended for direct training services.

(5) Each service delivery area shall ensure that for all services provided to participants through contracts, grants, or other agreements with a service provider, such contract, grant, or agreement shall include appropriate amounts necessary for administration and supportive services.

(6) For purposes of paragraph (4), the term "allocated" means allocated for a program year, as adjusted for reallocations and reallotments under section 1519 of this title and for transfers of funds under sections 1606, 1635, and 1646 of this title.

(c) Reference to limitations

Funds available under subchapter III of this chapter shall be expended in accordance with the limitations specified in section 1661d of this title.

(d) Limitations inapplicable

The provisions of this section do not apply to any service delivery area designated pursuant to section 1511(a)(4)(A)(iii) of this title.

(e) No exemption from performance standards

This section shall not be construed to exempt programs under an approved plan from the performance standards established under section 1516 of this title.

( Pub. L. 97–300, title I, §108, Oct. 13, 1982, 96 Stat. 1336 ; Pub. L. 97–404, §1(c), Dec. 31, 1982, 96 Stat. 2026 ; Pub. L. 99–496, §15(c), Oct. 16, 1986, 100 Stat. 1266 ; Pub. L. 102–367, title I, §117, Sept. 7, 1992, 106 Stat. 1035 .)

Repeal of Section

Pub. L. 105–220, title I, §199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059 , provided that this section is repealed effective July 1, 2000.

Amendments

1992-Subsec. (a). Pub. L. 102–367, §117(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Not more than 15 percent of the funds available to a service delivery area for any fiscal year for programs under part A of subchapter II of this chapter may be expended for the cost of administration. For purposes of this paragraph, costs of program support (such as counseling) which are directly related to the provision of education or training and such additional costs as may be attributable to the development of training described in section 1604(28) of this title shall not be counted as part of the cost of administration."

Subsec. (b). Pub. L. 102–367, §117(b), amended subsec. (b) generally. Prior to amendment, subsec. (b) consisted of pars. (1) to (3) relating to joint limitations on administrative and work experience expenditures.

Subsec. (c). Pub. L. 102–367, §117(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) consisted of pars. (1) to (5) relating to exceptions to expenditure limitations, private industry council requests for special circumstances, and authority of a Governor to review a plan.

1986-Subsec. (c)(2)(B)(ii). Pub. L. 99–496 inserted ", including disabled veterans" after "handicapped individuals".

1982-Subsec. (b)(2)(A)(iv). Pub. L. 97–404 substituted "payments" for "projects".

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–367 effective July 1, 1993, see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions note under section 1501 of this title.

Section Referred to in Other Sections

This section is referred to in sections 1551, 1604 of this title.

¹ So in original. Probably should be "part".