; and (2) who receives assistance from an Indian tribe or tribal organization shall comply with all applicable regulatory standards. (h) Administration (1) State responsibility A State shall have responsibility for administering a grant awarded for the State under this section and for monitoring covered entities that receive assistance under such grant. (2) Audits A State shall require each covered entity receiving assistance under the grant awarded under this section to conduct an annual audit with respect to the activities of the covered entity. Such audits shall be submitted to the State. (3) Misuse of funds (A) Repayment If the State determines, through an audit or otherwise, that a covered entity receiving assistance under a grant awarded under this section has misused the assistance, the State shall notify the Secretary of the misuse. The Secretary, upon such a notification, may seek from such a covered entity the repayment of an amount equal to the amount of any such misused assistance plus interest. (B) Appeals process The Secretary shall by regulation provide for an appeals process with respect to repayments under this paragraph. (i) Reporting requirements (1) 2-year study (A) In general Not later than 2 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine— (i) the capacity of covered entities to meet the child care needs of communities within States; (ii) the kinds of consortia that are being formed with respect to child care at the local level to carry out programs funded under this section