[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR205.29]

[Page 37]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 205--RULES AND PROCEDURES FOR EFFICIENT FEDERAL-STATE FUNDS TRANSFERS--Table of Contents
 
Subpart A--Rules Applicable to Federal Assistance Programs Included in a 
                        Treasury-State Agreement
 
Sec. 205.29  What are the State oversight and compliance responsibilities?

    (a) A State must designate an official representative with the 
statutory or administrative authority to coordinate all interaction with 
the Federal government concerning this subpart A, and must notify us in 
writing of the representative's name and title. A State must notify us 
immediately of any change in the official representative.
    (b) A State must maintain records supporting interest calculations, 
clearance patterns, Interest Calculation Costs, and other functions 
directly pertinent to the implementation and administration of this 
subpart A for audit purposes. A State must retain the records for each 
fiscal year for three years from the date the State submits its Annual 
Report, or until any pending dispute or action involving the records and 
documents is completed, whichever is later. We, the Comptroller General, 
and the Inspector General or other representative of a Federal Program 
Agency must have the right of access to, and may require submission of, 
all records for the purpose of verifying interest calculations, 
clearance patterns, interest calculation cost claims, and the State's 
accounting for Federal funds.
    (c) A State's implementation of this subpart A is subject to audit 
in accordance with 31 U.S.C. Chapter 75, ``Requirements for Single 
Audits.''
    (d) If a State repeatedly or deliberately fails to request funds in 
accordance with the procedures established for its funding techniques, 
as set forth in Sec. 205.11, Sec. 205.12, or a Treasury-State agreement, 
we may deny the State payment or credit for the resulting Federal 
interest liability, notwithstanding any other provision of this part.
    (e) If a State materially fails to comply with this subpart A, we 
may, in addition to the action described in paragraph (d) of this 
section, take one or more of the following actions, as appropriate under 
the circumstances:
    (1) Deny the reimbursement of all or a part of the State's interest 
calculation cost claim;
    (2) Send notification of the non-compliance to the affected Federal 
Program Agency for appropriate action, including, where appropriate, a 
determination regarding the impact of non-compliance on program funding;
    (3) Request a Federal Program Agency or the General Accounting 
Office to conduct an audit of the State to determine interest owed to 
the Federal government, and to implement procedures to recover such 
interest;
    (4) Initiate a debt collection process to recover claims owed to the 
United States; or
    (5) Take other remedies legally available.