[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR3015.46]



[Page 112]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3015_UNIFORM FEDERAL ASSISTANCE REGULATIONS--Table of Contents

 

                     Subpart F_Grant Related Income

 

Sec. 3015.46  Interest earned on advances of grant funds.



    (a) Except when exempted by Federal statute (see paragraph (b) of 

this section for the principal exemption), recipients shall remit to the 

Federal government any interest or other investment income earned on 

advances of USDA grant funds. This includes any interest or investment 

income earned by subrecipients and cost-type contractors on advances to 

them that result from advances of USDA grant funds to the recipient. 

Unless the recipient receives other instructions from the responsible 

USDA awarding agency, the recipient shall remit the amount due by check 

or money order payable to the awarding agency. This requirement may not 

be administratively waived.

    (b) In accordance with the Intergovernmental Cooperation Act of 1968 

(42 U.S.C. 4213), States, as defined in the Act, shall not be 

accountable to the Federal government for interest or investment income 

earned by the State itself, or by its subrecipents, where this income is 

attributable to grants-in-aid, as defined in the Act.\1\

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    \1\ ``State'' is defined in the Act to include any agency or 

instrumentality of a State, and the definition does not exclude a 

hospital or institution of higher education which is such an agency or 

instrumentality. ``Grant-in-aid'' is defined in the Act to exclude 

payments under research and development contracts or grants which are 

awarded directly and on similar terms to all qualifying organizations, 

whether public or private. (42 U.S.C. 4201)

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    (c) Recipients are cautioned that they are subject to the provisions 

of Subpart L for minimizing the time between the transfer of advances 

and their disbursement. Those provisions apply even if there is no 

accountability to the Federal government for interest or other 

investment income earned on the advances.