ted as part of that application satisfy the requirements of this title,

(2) a description for each such State of the manner in which monitoring reports of the Commissioner were taken into consideration in the approval of such applications,

(3) a description, with respect to appropriate States, of the manner in which unresolved audit and program monitoring findings were taken into consideration in the approval of such applications,

(4) a description for each such State of the manner in which the annual evaluation report of that State was taken into consideration in the approval of such applications,

(5) a summary of the findings of the Commissioner's on-site monitoring vis ts, of the actions taken by State educational agencies to correct problems identified in each report based on such visits, and of the number, type, and location of problems which have been so identified but which have not been corrected as of the date of the submission of the annual enforcement report under this section,

(6) with respect to audits conducted under this title, (A) the number and type of audits conducted in the year preceding the date of submission of the report, (B) the identity of each State or local educational agency audited during that year, (C) the resolution status of each outstanding audit, including the dates on which each step of the resolution process with respect to such outstanding audit was completed, the schedule for completion of such process, the amount of the financial exceptions noted in final audit reports and in letters of final determination, and an explanation of y differences in such amounts as noted in draft audit reports, final audit reports, and letters of final detemination, (D) the r imber and identity of any States which did not appeal to the audit hearing board for this title with respect to audits conducted during that year and the status of recoupment activities for each such State, (E) the number and identity of States which appealed to such board during that year and the status of each active appeal, (F) the number and identity of States which have completed such appeals during that year and the status of recoupment activities with respect thereto, (G) the number and type of any cases referred to the Attorney General during that year for collection of misspent funds, (H) the amount of any funds recovered during that year as a result of such audit resolution process, (I) an analysis of the type of violations identified in final audit reports, letters of final determination, and final decisions of the audit hearing board for this title and of the Commissioner on appeal from the decisions of such board, (J) a summary of audit follow-up actions conducted during that year for the purpose of determining that deficiencies which led to financial audit exceptions or audit findings of procedural n com iance have been corrected, (K) a description of audits planned for the year succeeding the date of the submission of the report, and (L) recommendations for improvement of the audit resolution process, and

(7) with respect to complaints made to the Commissioner concerning programs under this title during the year preceding

the date of submission of the report under this section, the number and type of complaints, the identity of the State and local educational agencies, the action taken by the Commissioner to resolve the complaints, and the number and type of complaints which remain unresolved as of the date of such submission.

(20 U.S.C. 2838) Enacted Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2193, 2194.

PART E-PAYMENTS

PAYMENT METHODS

SEC. 191. The Commissioner shall, from time to time pay to each State, in advance or otherwise, the amount which it and the local educational agencies of that State are eligible to receive under this title. Such payments shall take into account the extent (if any) to which any previous payment to such State educational agency under this title (whether or not in the same fiscal year) was greater or less than the amount which should have been paid to it.

(20 U.S.C. 2841) Enacted Apr. 11, 1965, P.L. 89-10, sec. 2, 79 Stat. 32; amended Nov. 1, 1965, P.L. 89-313, sec. 7(a), 79 Stat. 1162; amended Nov. 3, 1966, P.L. 89-750, secs. 103(c)(2), 108(b)(3), 112, 113(a), 80 Stat. 1193, 1195, 1197; redesignated and amended Jan. 2, 1968, P.L. 90-247, secs. 102, 103(c), 108(a)(2), 110, 81 Stat. 783, 786, 787; redesignated and amended Apr. 13, 1970, P.L. 91-230, secs. 113(b)(3), (4), (8), 114, 84 Stat. 126, 129, 130; amended Oct. 12, 1976, P.L. 94-482, sec. 323(a)(1), 90 Stat. 2217; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2195.

AMOUNT OF PAYMENTS TO LOCAL EDUCATIONAL AGENCIES

SEC. 192. From the funds paid to it pursuant to section 191 each State educational agency shall distribute to each local educational agency of the State which is eligible to receive a grant under this title and which has submitted an application approved pursuant to section 121 the amount for which such application has been approved, except that the amount shall not exceed the amount determined for that agency under this title.

(20 U.S.C. 2842) Enacted Apr. 11, 1965, P.L. 89-10, sec. 2, 79 Stat. 32; amended Nov. 1, 1965, P.L. 89-313, sec. 7(a), 79 Stat. 1162; amended Nov. 3, 1966, P.L. 89-750, secs. 103(c)(2), 108(b)(3), 112, 113(a), 80 Stat. 1193, 1195, 1197; redesignated and amended Jan. 2, 1968, P.L. 90-247, secs. 102, 103(c), 108(a)(2), 110, 81 Stat. 783, 786, 787; redesignated and amended Apr. 13, 1970, P.L. 91-230, secs. 113(b)(3), (4), (8), 114, 84 Stat. 126, 129, 130; amended Oct. 12, 1976, P.L. 94-482, sec. 323(a)(1), 90 Stat. 2217; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2195.

ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS

SEC. 193. (a) ADJUSTMENT ALLOCATION.-If the sums appropriated for any fiscal year for making the payments provided in this title other than amounts appropriated for subpart 2 of part A are not sufficient to pay in full the total amounts which all local and State educational agencies are entitled to receive under this title for such year, the amount available for each grant to a State agency eligible for a grant under subpart 1, 2, or 3 of part B shall be equal to the total amount of the grant as computed under each such subpart. If the remainder of such sums available after the application of the preceding sentence is not sufficient to pay in full the total amounts which all local educational agencies are entitled to receive under

subpart 1 of part A of this title for such year, the allocations to such agencies shall, subject to adjustments under the next sentence, be ratably reduced to the extent necessary to bring the aggregate of such allocations within the limits of the amount so appropriated. The allocation of a local educational agency which would be reduced under the preceding sentence to less than 85 per centum of its allocation under subpart 1 of the part A for the preceding fiscal year, shall be increased to such amount, the total of the increases thereby required being derived by proportionately reducing the allocations of the remaining local educational agencies, under the preceding sentence, but with such adjustments as may be necessary to prevent the allocation to any remaining local educational agency from being thereby reduced to less than 85 per centum of its allocation for such year.

(b) ADDITIONAL FUNDS ALLOCATION.-In case additional funds become available for making payments under this title for that year, allocations that were reduced pursuant to subsection (a) shall be increased on the same basis that they were reduced. In order to permit the most effective use of all appropriations made to carry out this title, the Commissioner may set dates by which (1) State educational agencies must certify to him the amounts for which the applications of educational agencies have been or will be approved by the State and (2) State educational agencies referred to in subpart 1 of part B must file applications. If the maximum grant a local educational agency would receive (after any ratable reduction which may have been required under the first sentence of subsection (a) of this section) is more than an amount which the State educational agency determines, in accordance with regulations prescribed by the Commissioner, such agency will use, the excess amount shall be made available first to educational agencies in that State. Determinations of the educational agencies to which such excess amounts shall be made available shall be made by the State educational agency in furtherance of the purposes of this title in accordance with criteria prescribed by the Commissioner which are designed to assure that such excess amounts will be made available to other eligible educational agencies with the greatest need, for the purpose of, where appropriate, redressing inequities inherent in, or mitigating hardships caused by, the application of the provisions of section 111(a) as a result of such factors as population shifts and changing economic circumstances. In the event excess amounts remain after carrying out the preceding two sentences of this section, such excess amounts shall be distributed among the other States as the Commissioner shall prescribe for use by local educational agencies in such States for the purposes of this title in such manner as the respective State educational agencies shall prescribe.

(20 U.S.C 2843) Enacted Apr. 11, 1965, P.L. 89-10, sec. 2, 79 Stat. 33; amended Nov. 3, 1966, P.L. 89-750, sec. 114, 80 Stat. 1197; redesignated and amended Jan. 2, 1968, P.L. 90-247, secs. 107(b), 110, 81 Stat. 785, 787; redesignated and amended Apr. 13, 1970, P.L. 91-230, sec. 113(b)(3), (4)(c) and (d), 84 Stat. 126, 129; amended Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 498, 499; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2195, 2196.

PAYMENTS FOR STATE ADMINISTRATION

SEC. 194. (a) Except as provided in subsection (b), the Commissioner is authorized to pay to each State amounts equal to the amounts expended by it for the proper and efficient performance of its duties under this title, except that the total of such payments in any fiscal year shall not exceed

(1) 1.5 per centum of the amount allocated to the State and its local educational agencies and to other State agencies as determined for that year under this title; or

(2) $225,000, or $50,000 in the case of Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands,

whichever is the greater, except that any amount paid by reason of clause (1) or (2) in excess of the limitations on such payments in effect prior to the effective date of the Education Amendments of 1978 shall be used exclusively for monitoring, audit resolution, enforcement, or similar compliance activities and shall supplement and not supplant funds otherwise available from non-Federal sources for such purposes.

(b) The provisions of this section shall apply in any fiscal year in which the provisions of section 510(b)(2) are not met.

(20 U.S.C 2844) Enacted Apr. 11, 1965, P.L. 89-10, sec. 2, 79 Stat. 32; amended Nov. 1, 1965, P.L. 89-313, sec. 7(a), 79 Stat. 1162; amended Nov. 3, 1966, P.L. 89-750, secs. 103(c)(2), 108(b)(3), 112, 113(a), 80 Stat. 1193, 1195, 1197; redesignated and amended Jan. 2, 1968, P.L. 90-247, secs. 102, 103(c), 108(a)(2), 110, 81 Stat. 783, 786, 787; redesignated and amended Apr. 13, 1970, P.L. 91-230, secs. 113(b)(3), (4), (8), 114, 84 Stat. 126, 129, 130; amended Oct. 12, 1976, P.L. 94-482, sec. 323(a)(1), 90 Stat. 2217; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2196.

PART F-GENERAL PROVISIONS

JUDICIAL REVIEW

SEC. 195. (a) FILING APPEALS.-If any State is dissatisfied with the Commissioner's final action with respect to the approval of its application submitted under subpart 1 or part B or section 162 or with his final action under section 185 or 186, such State may, within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commissioner. The Commissioner thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code.

(b) BASIS OF REVIEW.-The findings of fact by the Commissioner, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.

(c) JUDICIAL APPEALS.-Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court shall

be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.

(20 U.S.C. 2851) Enacted Apr. 11, 1965, P.L. 89-10, sec. 2, 79 Stat. 33; amended Nov. 3, 1966, P.L. 89-750, sec. 103(c)4), 80 Stat. 1193; redesignated and amended Jan. 2, 1968, P.L. 90-247, secs. 108(a)(4), (b), 110, 81 Stat. 786, 787; redesignated and amended Apr. 13, 1970, P.L. 91-230, sec. 113(b)(4), 10, 84 Stat. 125, 129; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2196, 2197.

NATIONAL ADVISORY COUNCIL

SEC. 196. (a) COUNCIL ESTABLISHED.-There shall be a National Advisory Council on the Education of Disadvantaged Children (hereinafter in this section referred to as the "National Council") consisting of fifteen members appointed by the President, without regard to the provisions of title 5, United States Code, governing appointment in the competitive service, for terms of three years, except that (1) in the case of initial members, five shall be appointed for terms of one year each and five shall be appointed for terms of two years each, and (2) appointments to fill vacancies shall be only for such terms as remain unexpired. The National Council shall meet at the call of the Chairman.

(b) FUNCTIONS.-The National Council shall review and evaluate the administration and operation of this title, including its effectiveness in improving the educational attainment of educationally deprived children, including the effectiveness of programs to meet their occupational and career needs, and make recommendations for the improvement of this title and its administration and operations. These recommendations shall take into consideration experience gained under this and other Federal educational programs for disadvantaged children and, to the extent appropriate, experience gained under other public and private educational programs for disadvantaged children.

(c) REPORTS.-The National Council shall make such reports of its activities, findings, and recommendations (including recommendations for changes in the provisions of this title) as it may deem appropriate and shall make an annual report to the President_and the Congress not later than March 31 of each calendar year. Such annual report shall include a report specifically on which of the various compensatory education programs funded in whole or in part under the provisions of this title, and of other public and private educational programs for educationally deprived children, hold the highest promise for raising the educational attainment of these educationally deprived children. The President is requested to transmit to the Congress such comments and recommendations as he may have with respect to such report. Subject to section 448(b) of the General Educational Provisions Act, the National Council shall continue to exist until October 1, 1984.

(20 U.S.C 2852) Enacted Apr. 11, 1965, P.L. 89-10, sec. 2, 79 Stat. 34; amended Nov. 3, 1966, P.L. 89-750, sec. 115, 80 Stat. 1197; redesignated and amended Jan. 2, 1968, P.L. 90-247, secs. 108(a),(4), 110, 114, 81 Stat. 786-788; redesignated and amended Apr. 13, 1970, P.L. 91-230, secs. 112, 113(b)(4), 84 Stat. 125, 126; amended Aug. 21, 1974, P.L. 93-380, sec. 845(a), 88 Stat. 612; amended Apr. 21, 1976, P.L. 94-273, sec. 3(8), 90 Stat. 376; amended Sept. 24, 1977, P.L. 95–112, sec. 2(a)(3), 91 Stat. 911; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2197.