APPLICATIONS FOR GRANTS; CONDITIONS FOR APPROVAL.

SEC. 5314. APPLICATIONS FOR GRANTS; CONDITIONS FOR APPROVAL. (a) In General.—A grant provided under this subpart, except as provided in section 5312(b), may be made only to a local educational agency or agencies, and only upon application to the Secretary at such time or times, in such manner, and containing or accompanied by such information as the Secretary deems necessary. Such application shall— (1) provide that the activities and services for which assistance under this subpart is sought will be administered by or under the supervision of the applicant; (2) set forth a program for carrying out the purposes of section 5313, and provide for such methods of administration as are necessary for the proper and efficient operation of the program; 102 STAT. 399 (3) in the case of an application for payments for planning, provide that— (A) the planning was or will be directly related to proSrams or projects to be carried out under this subpart and as resulted, or is reasonably likely to result, in a program or project which will be carried out under this subpart, and (B) the planning funds are needed because of the innovative nature of the program or project or because the local educational agency lacks the resources necessary to plan adequately for programs and projects to be carried out under this subpart; (4) provide that effective procedures, including provisions for appropriate objective measurement of educational achievement, will be adopted for evaluating at least annually the effectiveness of the programs and projects in meeting the special educational needs of Indian students; (5) set forth policies and procedures which assure that Federal funds made available under this subpart for any fiscal year will be so used as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available by the applicant for the education of Indian children and in no case supplant such funds; (6) provide for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of, and accounting for. Federal funds paid to the applicant under this subpart; and (7) provide for making an annual report and such other reports, in such form and containing such information, as the Secretary may reasonably require to carry out his functions under this subpart and to determine the extent to which funds provided under this subpart have been effective in improving the educational opportunities of Indian students in the area served, and for the keeping of such records, and the affording of such access thereto, as the Secretary may find necessary to assure the correctness and verification of such reports. (b) Approval of Applications.—An application by a local educational agency or agencies for a grant under this subpart may be approved only if it is consistent with the applicable provisions of this subpart and— (1) meets the requirements set forth in subsection (a); (2) provides that the program or project for which application is made— (A) will utilize the best available talents and resources (including persons from the Indian community) and will substantially increase the educational opportunities of Indian children in the area to be served by the applicant; and (B) has been developed— (i) in open consultation with parents of Indian children, teachers, and, where applicable, secondary school students, including public hearings at which such per-sons have had a full opportunity to understand the program for which assistance is being sought and to offer recommendations thereon, and (ii) with the participation and written approval of a committee— 102 STAT. 400 (I) which is composed of, and selected by, parents of children participating in the program for which assistance is sought, teachers, and, where applicable, secondary school students, and (II) of which at least half the members shall be parents described in subclause (I); (3) sets forth such policies and procedures including policies and procedures relating to the hiring of personnel, as will ensure that the program for which assistance is sought will be operated and evaluated in consultation with, and with the involvement of, parents of the children and representatives of the area to be served, including the committee established for the purposes of paragraph (2)(B)(ii); and (4) provides that the parent committee formed pursuant to paragraph (2)(B)(ii) will adopt and abide by reasonable bylaws for the conduct of the program for which assistance is sought. (c) Amendments of Applications.— Amendments of applications submitted under this subpart shall, except as the Secretary may otherwise provide by regulation, be subject to approval in the same manner as original applications. (d) Eligibility Forms.— (1) The Secretary shall require that each application for a grant under this subpart for each fiscal year include a form for each eligible Indian child for whom the local educational agency is providing free public education that sets forth information establishing the status of the child as an eligible Indian child. (2) The Secretary shall request on the form required under paragraph (1) at least the following information: (A) either— (i) the name of the tribe, band, or other organized group of Indians with which the child claims member-ship, along with the enrollment number establishing membership (if readily available), and the name and address of the organization which has updated and accurate membership data for such tribe, band, or other organized group of Indians, or (ii) if the child is not a member of a tribe, band, or other organized group of Indians, the name, the enrollment number (if readily available) and the organization (and address thereof) responsible for maintaining updated and accurate membership rolls of any of the child’s parents or grandparents, from whom the child claims eligibility; (B) whether the tribe, band, or other organized group of Indians with which the applicant, his parents, or grand-parents claim membership is federally recognized; (C) the name and address of the parent or legal guardian; (D) the signature of the parent or legal guardian verifying the accuracy of the information supplied; and (E) any other information which the Secretary deems necessary to provide an accurate program profile. (3) Nothing in the requirements of paragraph (2) may be construed as affecting the definition set forth in section 5351(4). The failure of an applicant to furnish any information listed in paragraph (2) with respect to any child shall have no bearing on the determination of whether the child is an eligible Indian child. 102 STAT. 401 (4) The forms and the standards of proof (including the standard of good faith compliance) that were in use during the 1985–1986 academic year to establish a child’s eligibility for entitlement under the Indian Elementary and Secondary School Assistance Act shall be the only forms and standards of proof used to establish such eligibility and to meet the requirements of paragraph (1) after the date of enactment of this Act. (5) For purposes of determining whether a child is an eligible Indian child, the membership of the child, or any parent or grandparent of the child, in a tribe, band, or other organized group of Indians may be established by proof other than an enrollment number, even if enrollment numbers for members of such tribe, band, or groups are available. Nothing in paragraph (2) may be construed as requiring the furnishing of enrollment numbers. (e) Auditing; Penalties for False Information.— (1) (A) The Secretary shall establish a method of auditing, on an annual basis, a sample of not less than one-fourth of the total number of local education agencies receiving funds under this subpart and shall submit to the Congress an annual report on the findings of the audits. (B) For purposes of any audit conducted by the Federal Government with respect to funds provide under this subpart, all procedures, practices, and policies that are established by— (i) the Office of Indian Education of the Department of Education, Or (ii) a grantee under this subpart who, in establishing such procedures, practices, and policies, was acting under the direction of any employee of such Office that is authorized by the Director of such Office to provide such direction, shall, with respect to the period beginning on the date of the establishment of such procedures, practices, and policies, and ending on the date (if any) on which the Director of such Office revokes authorization for such procedures, practices, and policies, be considered appropriate and acceptable procedures, practices, and policies which are in conformity with Federal law. (C) No local education agency may be held liable to the United States, or be otherwise penalized, by reason of the findings of any audit conducted before the date of enactment of this Act that— (i) relate to the date of completion, or the date of submission, of any forms used to establish a child’s eligibility for entitlement under the Indian Elementary and Secondary School Assistance Act, and (ii) are the subject of any administrative or judicial proceeding pending on the date of enactment of this Act. (2) Any local educational agency that provides false information in the application for a grant under this subpart shall be ineligible to apply for any other grants under this subpart and shall be liable to the United States for any funds provided under this subpart that have not been expended. (3) Any student who provides false information on the form required under subsection (d)(1) may not be taken into account in determining the amount of any grant under this subpart.