[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: 31CFR205.33]

[Page 39]
 
                  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 B--Rules Applicable to Federal Assistance Programs Not Included 
                      in a Treasury-State Agreement
 
Sec. 205.33  How are funds transfers processed?

    (a) A State must minimize the time between the drawdown of Federal 
funds from the Federal government and their disbursement for Federal 
program purposes. A Federal Program Agency must limit a funds transfer 
to a State to the minimum amounts needed by the State and must time the 
disbursement to be in accord with the actual, immediate cash 
requirements of the State in carrying out a Federal assistance program 
or project. The timing and amount of funds transfers must be as close as 
is administratively feasible to a State's actual cash outlay for direct 
program costs and the proportionate share of any allowable indirect 
costs. States should exercise sound cash management in funds transfers 
to subgrantees in accordance with OMB Circular A-102 (For availability, 
see 5 CFR 1310.3.).
    (b) Neither a State nor the Federal government will incur an 
interest liability under this part on the transfer of funds for a 
Federal assistance program subject to this subpart B.