B-152505, SEPTEMBER 30, 1964, 44 COMP. GEN. 179
Highlights
NO ACTION WILL BE TAKEN TO RECOVER THE INTEREST AND OTHER INCOME EARNED PRIOR TO JULY 1. THE LEGISLATIVE HISTORY DISCLOSING THAT THE INTENDED PURPOSE OF THE LIMITATION WAS TO PROTECT THE COLLEGES AND UNIVERSITIES AND INSURE THAT THEY WOULD NOT BE REQUIRED TO REIMBURSE THE FEDERAL TREASURY FOR THE INTEREST EARNED ON PAYMENTS OF FEDERAL GRANT FUNDS MADE PRIOR TO JULY 1. 1964: FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 10. THERE WAS ENACTED INTO LAW THE DEPARTMENT OF HEALTH. SECTION 205 OF THAT ACT (78 STAT. 979) PROVIDES AS FOLLOWS: NONE OF THE FUNDS CONTAINED IN THIS ACT SHALL BE USED FOR ANY ACTIVITY THE PURPOSE OF WHICH IS TO REQUIRE ANY RECIPIENT OF ANY PROJECT GRANT FOR RESEARCH.
B-152505, SEPTEMBER 30, 1964, 44 COMP. GEN. 179
INTEREST - ADVANCE PAYMENTS - AS BELONGING TO UNITED STATES V. OTHERS IN VIEW OF THE LIMITATION CONTAINED IN SECTION 205 OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE APPROPRIATION ACT, 1965, PROHIBITING THE RECOVERY BY THE UNITED STATES OF INTEREST OR OTHER INCOME EARNED ON ANY PROJECT GRANT FOR RESEARCH, TRAINING, OR DEMONSTRATION MADE BEFORE JULY 1, 1964, NO ACTION WILL BE TAKEN TO RECOVER THE INTEREST AND OTHER INCOME EARNED PRIOR TO JULY 1, 1964 ON FEDERAL GRANTS MADE TO COLLEGES AND UNIVERSITIES UNDER THE PUBLIC HEALTH SERVICE ACT OR UNDER OTHER STATUTES PROVIDING FOR GRANTS TO COLLEGES AND UNIVERSITIES FOR SPECIFIED PURPOSES, EVEN THOUGH THE LIMITATION BY ITS SPECIFIC TERMS APPLIES ONLY TO FUNDS CONTAINED IN THE ACT, THE LEGISLATIVE HISTORY DISCLOSING THAT THE INTENDED PURPOSE OF THE LIMITATION WAS TO PROTECT THE COLLEGES AND UNIVERSITIES AND INSURE THAT THEY WOULD NOT BE REQUIRED TO REIMBURSE THE FEDERAL TREASURY FOR THE INTEREST EARNED ON PAYMENTS OF FEDERAL GRANT FUNDS MADE PRIOR TO JULY 1, 1964.
TO THE PRESIDENT, AMERICAN COUNCIL ON EDUCATION, SEPTEMBER 30, 1964:
FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 10, 1964, CONCERNING OUR LETTER OF JANUARY 30, 1964, B-152505, TO YOU, PERTAINING TO THE DISPOSITION OF INTEREST AND OTHER INCOME EARNED ON PAYMENTS MADE UNDER THE VARIOUS STATUTES PROVIDING FOR FEDERAL GRANT IN-AID PROGRAMS FOR SPECIFIED PURPOSES, PARTICULARLY IN THE CASE OF CASH GRANTS TO COLLEGES AND UNIVERSITIES UNDER THE PUBLIC HEALTH SERVICE ACT, 42 U.S.C. 201 NOTE.
BY LETTER DATED APRIL 24, 1964, WE ADVISED YOU THAT IN VIEW OF THE ACTION TAKEN BY THE HOUSE OF REPRESENTATIVES IN CONSIDERING THE DEPARTMENTS OF LABOR AND HEALTH, EDUCATION, AND WELFARE, AND RELATED AGENCIES APPROPRIATIONS BILLS, 1965, WE THOUGHT IT ADVISABLE TO DEFER REPLYING TO YOUR LETTER OF MARCH 10 PENDING ENACTMENT OF THE LEGISLATION.
ON SEPTEMBER 19, 1964, THERE WAS ENACTED INTO LAW THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE APPROPRIATION ACT, 1965, PUBLIC LAW 88 605, 78 STAT. 963. SECTION 205 OF THAT ACT (78 STAT. 979) PROVIDES AS FOLLOWS:
NONE OF THE FUNDS CONTAINED IN THIS ACT SHALL BE USED FOR ANY ACTIVITY THE PURPOSE OF WHICH IS TO REQUIRE ANY RECIPIENT OF ANY PROJECT GRANT FOR RESEARCH, TRAINING, OR DEMONSTRATION MADE BY ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE TO PAY TO THE UNITED STATES ANY PORTION OF ANY INTEREST OR OTHER INCOME EARNED ON PAYMENTS OF SUCH GRANT MADE BEFORE JULY 1, 1964.
WHILE THE QUOTED LIMITATION BY ITS SPECIFIC TERMS APPLIES ONLY TO FUNDS CONTAINED IN THE ACT, THE LEGISLATIVE HISTORY OF THE PROVISION DISCLOSES THAT ITS INTENDED PURPOSE WAS TO PROTECT THE COLLEGES AND UNIVERSITIES AND INSURE THAT THEY WOULD NOT BE REQUIRED TO REIMBURSE THE FEDERAL TREASURY FOR THE INTEREST EARNED ON PAYMENTS OF FEDERAL GRANT FUNDS MADE PRIOR TO JULY 1, 1964. ACCORDINGLY, WE PLAN TO TAKE NO FURTHER ACTION TOWARD THE RECOVERY OF INTEREST OR OTHER INCOME EARNED PRIOR TO JULY 1, 1964, ON FEDERAL GRANTS MADE TO COLLEGES AND UNIVERSITIES UNDER THE PUBLIC HEALTH SERVICE ACT OR UNDER OTHER STATUTES PROVIDING FOR GRANTS TO COLLEGES AND UNIVERSITIES FOR SPECIFIED PURPOSES.