[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: 31CFR205.30]

[Page 37-38]
 
                  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. 205.30  What are the Federal oversight and compliance responsibilities?

    (a) A Federal Program Agency must designate an official 
representative to coordinate all interaction with us and the States 
concerning this subpart A, and must notify us in writing of the 
representative's name and title. A Federal Program Agency must notify us 
immediately of any change in the official representative.
    (b) A Federal Program Agency's implementation of this subpart A is 
subject to review pursuant to procedural instructions that we issue.
    (c) We will consult with Federal agencies as necessary and 
appropriate before entering into or amending a Treasury-State agreement.
    (d) We will distribute Annual Reports to Federal agencies, as set 
forth in Sec. 205.26. Upon our request, a Federal Program Agency must 
review a State's Annual Report for reasonableness and must report its 
findings to us within 30 days.
    (e) A Federal Program Agency must notify us in writing if the 
program agency has knowledge, at any time, that:
    (1) A State's clearance pattern does not correspond to a Federal 
assistance program's clearance activity; or
    (2) Corrective action needs to be taken by a State, us, or another 
Federal Program Agency, with respect to the implementation of this 
subpart. We will notify the State or Federal Program Agency as 
appropriate in writing with a description of the Federal Program 
Agency's assertion.

[[Page 38]]

    (f) A Federal Program Agency must notify us in writing of new 
Federal assistance programs listed in the Catalog of Federal Domestic 
Assistance.
    (g) If a Federal Program Agency causes an interest liability by 
failing to comply with this subpart A, we may collect a charge from the 
Federal Program Agency. A Federal interest liability resulting from 
circumstances beyond the control of a Federal Program Agency does not 
constitute noncompliance. We will determine the charge using the 
following procedures:
    (1) We will issue a Notice of Assessment to the Federal Program 
Agency, indicating the nature of the noncompliance, the amount of the 
charge, the manner in which it was calculated, and the right to file an 
appeal.
    (2) To the maximum extent practicable, a Federal Program Agency must 
pay a charge for noncompliance out of appropriations available for the 
Federal Program Agency's operations and not from the Federal Program 
Agency's program funds.
    (3) If a Federal Program Agency does not pay a charge for 
noncompliance within 45 days after receiving a Notice of Assessment, we 
will debit the appropriate Federal Program Agency account.
    (4) In the event a Federal Program Agency appeals a charge imposed 
under the Notice of Assessment, we will defer the charge until we decide 
the appeal. If we deny the appeal, the effective date of the charge may 
be retroactive to the date indicated in the Notice of Assessment.