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Summary
Federal grant recipients must now deposit advance funds in interest-bearing accounts. They can retain up to $100 annually from earned interest for administrative costs, a change from previous remittance rules.
Area of Science:
- Financial Management in Research Grants
- Federal Grant Regulations
- Administrative Policy Updates
Background:
- Historically, recipients of Federal grant funds were required to remit all earned interest to the Federal Government.
- This practice aimed to ensure accountability and proper stewardship of public funds.
Purpose of the Study:
- To implement an amendment to 45 CFR Part 74, aligning with changes in Office of Management and Budget (OMB) Circular A-110.
- To update regulations regarding the management and use of interest earned on Federal grant advances.
Main Methods:
- The amendment modifies existing regulations under 45 CFR Part 74.
- It incorporates the revised guidelines from OMB Circular A-110 concerning interest on Federal advances.
Main Results:
- Recipients are now mandated to deposit Federal grant advances into interest-bearing accounts.
- A provision allows recipients to retain up to $100 per year in earned interest to offset administrative expenses.
Conclusions:
- This policy change provides a minor financial benefit to grant recipients for administrative support.
- It simplifies the process of managing interest earned on Federal grant funds while maintaining oversight.