; or (ii) by an entity that provides health services on a prepaid basis. (B) Exception The requirement under subparagraph (A)(i) shall not apply with respect to coverage under a high-deductible health plan. (3) Limitation on administrative expenses The Secretary may not make a grant under subsection (a) unless the State, Indian tribe, or tribal organization involved agrees that not more than 10 percent of the grant will be expended for administrative expenses with respect to the grant. (4) Records and audits The Secretary may not make a grant under subsection (a) unless the State, Indian tribe, or tribal organization involved agrees that— (A) the State, Indian tribe, or tribal organization will establish such fiscal control and fund accounting procedures as may be necessary to ensure the proper disbursal of, and accounting for, amounts received by the State, Indian tribe, or tribal organization under such subsection; (B) the State, Indian tribe, or tribal organization will keep such records as the Secretary shall prescribe, including— (i) records that fully disclose— (I) the amount and disposition by the State, Indian tribe, or tribal organization of the proceeds of such grant; (II) the total cost of the project or undertaking intended to be carried out through the grant; and (III) the amount of that portion of the cost of the project or undertaking supplied by sources other than the grant; and (ii) such other records as the Secretary determines appropriate for facilitating an effective audit of grants awarded under this section