((a)) ** Consolidation of administrative funds**

((1)) ** In general** A State educational agency may consolidate the amounts specifically made available to it for State administration under one or more of the programs under paragraph (2) if the State educational agency can demonstrate that the majority of its resources are derived from non-Federal sources.

((2)) ** Applicability** This section applies to any program under this chapter under which funds are authorized to be used for administration, and such other programs as the Secretary may designate.

((b)) ** Use of funds**

((1)) ** In general** A State educational agency shall use the amount available under this section for the administration of the programs included in the consolidation under subsection (a).

((2)) ** Additional uses** A State educational agency may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under programs included in the consolidation under subsection (a), such as—

((A)) the coordination of those programs with other Federal and non-Federal programs;

((B)) the establishment and operation of peer-review mechanisms under this chapter;

((C)) the administration of this subchapter;

((D)) the dissemination of information regarding model programs and practices;

((E)) technical assistance under any program under this chapter;

((F)) State-level activities designed to carry out this subchapter;

((G)) training personnel engaged in audit and other monitoring activities;

((H)) implementation of the Cooperative Audit Resolution and Oversight Initiative of the Department; and

((I)) implementation of fiscal support teams that provide technical fiscal support assistance, which shall include evaluating fiscal, administrative, and staffing functions, and any other key operational function.

((c)) ** Records** A State educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under subsection (a).

((d)) ** Review** To determine the effectiveness of State administration under this section, the Secretary may periodically review the performance of State educational agencies in using consolidated administrative funds under this section and take such steps as the Secretary finds appropriate to ensure the effectiveness of that administration.

((e)) ** Unused administrative funds** If a State educational agency does not use all of the funds available to the agency under this section for administration, the agency may use those funds during the applicable period of availability as funds available under one or more programs included in the consolidation under subsection (a).

((f)) ** Consolidation of funds for standards and assessment development** In order to develop challenging State academic standards and assessments, a State educational agency may consolidate the amounts described in subsection (a) for those purposes under subchapter I.