37.820—Must I require a recipient to return interest on advance payments?
If your expenditure-based TIA provides for either advance payments or payable milestones, the agreement must require the recipient to:
(a)
Maintain in an interest-bearing account any advance payments or milestone payment amounts received in advance of needs to disburse the funds for program purposes unless:
(1)
The recipient receives less than $120,000 in Federal grants, cooperative agreements, and TIAs per year;
(2)
The best reasonably available interest-bearing account would not be expected to earn interest in excess of $1,000 per year on the advance or milestone payments; or
(3)
The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non-Federal cash resources for the project.