What are the requirements related to local administrative cost limits?

§ 463.25 What are the requirements related to local administrative cost limits? Not more than five percent of a local grant to an eligible provider can be expended to administer a grant or contract under title II. In cases where five percent is too restrictive to allow for administrative activities, the eligible agency may increase the amount that can be spent on local administration. In such cases, the eligible provider must negotiate with the eligible agency to determine an adequate level of funds to be used for non-instructional purposes. (Authority: 29 U.S.C. 3323)