a.
Advance Payments. The
Grantee may receive advance payments of Grant funds, provided the Grantee meets
the financial management standards specified in OMB Circular A-102 and its
implementing regulations (45 C.F.R. 2541) or A-110 and its implementing
regulations (45 C.F.R. 2543), as applicable.
b.
Immediate Cash Flow Needs.
The amount of advance payments requested by the Grantee must be based on
actual and immediate cash needs in order to minimize federal cash on hand in
accordance with policies established by the U.S. Department of the Treasury in
31 C.F.R. 205.
c.
Discontinuing Advance Payments.
If a Grantee does not establish procedures to minimize the time elapsing
between the receipt of the cash advance and its disbursement, the Corporation
may, after providing due notice to the Grantee, discontinue the advance payment
method and allow payments in advance only by individual request and approval or
by reimbursement.
d. Interest-Bearing Accounts. The Grantee must deposit advance funds received from the Corporation in federally-insured, interest-bearing accounts. The exceptions to this requirement follow:
i. Institutions of Higher Education and Other Non-Profit Organizations. If a Grantee is covered by 45 C.F.R. 2543 it must maintain advance funds in interest-bearing accounts unless:
(a) It receives less than $120,000 in federal funds per year;
(b) The best reasonably available account would not be expected to earn interest in excess of $250 per year on federal cash balances; or
(c) The required minimum balance is so high that it would not be feasible within expected federal and non-federal cash resources.
Earned interest must be remitted annually to HHS-PMS , Rockville, MD 20852. Grantees may keep up to $250 of interest per year to offset administrative expenses.
ii. State and Local Governments. All Grantees and sub-Grantees covered by 45 C.F.R. 2541, with the exception of State Governments and Indian Tribes, must remit earned interest quarterly to the Corporation. Grantees may keep up to $100 of the earned interest per year to offset administrative expenses.