(a) In the determination of the allocation of State funds the following factors shall be considered:

1. (1) Need as demonstrated by:

   1. (A) The number of individuals to be served.
   2. (B) The availability of other resources in the service area.
   3. (C) The accessibility of resources in the service area.
   4. (D) Higher costs of providing health services in the areas served.

2. (2) The ability of the proposed program to meet that need, as determined by:

   1. (A) Adequate personal services.
   2. (B) Sufficient operating expenses.
3. (3) Compliance with statewide plan for Indian health services and existing priorities for services.
4. (4) Compliance with local Indian health plan.
5. (5) The demonstrated ability of the Indian health program to carry out the proposed services.