; and (B) linking participants in year-round employment opportunities to training and educational activities that will provide such participants an industry-recognized certificate or credential (referred to in this Act as an industry-recognized credential ). (3) Administration Not more than 5 percent of the funds allocated to a local area under this section may be used for the costs of administration of this section. (4) Performance accountability For activities funded under this section, in lieu of meeting the requirements described in section 116 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3141 ), States and local areas shall provide such reports as the Secretary of Labor may require regarding the performance outcomes described in section 5(b)(5). 4. Work-based employment strategies and activities of demonstrated effectiveness (a) In general From the funds available under section 2(c)(2), the Secretary of Labor shall make allotments to States, and award grants to eligible entities, under subsection (b) to carry out work-based strategies and activities of demonstrated effectiveness. (b) Allotments and grants (1) Allotments to States for grants (A) Allotments Using funds described in subsection (a), the Secretary of Labor shall allot to each State an amount equal to ½ of 1 percent of such funds. (B) Grants to eligible entities The State shall use the funds to award grants, on a competitive basis, to eligible entities in the State. (2) Direct grants to eligible entities Using the funds described in subsection (a) that are not allotted under paragraph (1), the Secretary of Labor shall award grants on a competitive basis to eligible entities. (c) Eligible entity To be eligible to receive a grant under this section, an entity— (1) shall include— (A) a partnership involving a chief elected official and the local board for the local area involved (which may include a partnership with such elected officials and boards and State elected officials and State boards, in the region and in the State)