(a) The Department expects that the States and SDA's will fully
implement the provisions of the Act and these regulations regarding
procurement, cost principles, cost categories, cost limitations,
participant service requirements and eligibility beginning July 1, 1993.
(b) The Department expects that the implementation by the States and
SDA's of the program design features in these regulations, particularly
objective assessment and development of the ISS, may require additional
time beyond July 1, 1993 to fully implement.
(c) In deciding to allow or disallow questioned costs related to the
implementation of the provisions described in paragraph (b) of this
section, the Grant Officer will consider the extent to which the State's
and SDA's have made good faith efforts in properly implementing such
provisions in the period July 1, 1993 through June 30, 1994.