Interest on advance payments.

§ 603.820 Interest on advance payments. If an 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. (b) Remit annually the interest earned to the contracting officer. Revision of Budget and Program Plans