[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR37.615]



[Page 238]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

 Subpart F_Award Terms Affecting Participants' Financial, Property, and 

                           Purchasing Systems

 

Sec.  37.615  What standards do I include for financial systems of 

for-profit firms?



    (a) To avoid causing needless changes in participants' financial 

management systems, your expenditure-based TIAs will make for-profit 

participants that currently perform under other expenditure-based 

Federal procurement contracts or assistance awards subject to the same 

standards for financial management systems that apply to those other 

awards. Therefore, if a for-profit participant has expenditure-based DoD 

assistance awards other than TIAs, your TIAs are to apply the standards 

in 32 CFR 34.11. You may grant an exception and allow a for-profit 

participant that has other expenditure-based Federal Government awards 

to use an alternative set of standards that meets the minimum criteria 

in paragraph (b) of this section, if there is a compelling programmatic 

or business reason to do so. For each case in which you grant an 

exception, you must document the reason in the award file.

    (b) For an expenditure-based TIA, you are to allow and encourage 

each for-profit participant that does not currently perform under 

expenditure-based Federal procurement contracts or assistance awards 

(other than TIAs) to use its existing financial management system as 

long as the system, as a minimum:

    (1) Complies with Generally Accepted Accounting Principles.

    (2) Effectively controls all project funds, including Federal funds 

and any required cost share. The system must have complete, accurate, 

and current records that document the sources of funds and the purposes 

for which they are disbursed. It also must have procedures for ensuring 

that project funds are used only for purposes permitted by the agreement 

(see Sec.  37.625).

    (3) Includes, if advance payments are authorized under Sec.  37.805, 

procedures to minimize the time elapsing between the payment of funds by 

the Government and the firm's disbursement of the funds for program 

purposes.