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Managing Interest Earned

Both you and your subrecipients should minimize the time elapsing between receiving Federal funds and the disbursement of those funds to pay for program expenses. Various laws and regulations affect how you should account for, use, and return interest income earned on Federal funds to the Federal Government. How you should handle interest income is determined by your:

  • Organization structure (State, local, nonprofit, tribal, or for-profit)
  • Award type

Please refer to the How to Manage Interest Income table at the end of this chapter to determine how your organization should handle interest income.

Interest income on block grants such as JAG and JABG must be accounted for and reported as program income. See Chapter 9: Program Income of this manual for more information. In general, interest income for all other awards must be remitted to the U.S. Department of Health and Human Services.