[Comments on Whether Federal Funds Granted to States Can Be Commingled with Other Funds]

B-222191: Oct 23, 1986

Additional Materials:


Ralph O. White
(202) 512-8278

Kenneth E. Patton
(202) 512-8205


Office of Public Affairs
(202) 512-4800

GAO commented on: (1) whether federal funds awarded to states for subgranting to counties and school districts can be commingled with other funds; (2) the possibility that school districts may be borrowing federal funds to cover shortages in other school district operations due to commingling; and (3) whether subgrantees can invest the funds and earn interest on them. GAO concluded that: (1) states are not required to deposit grant money in separate bank accounts as long as they can account for all of the funds; (2) states are responsible for ensuring that funds are properly and efficiently administered to subgrantees for the purposes intended; and (3) states are not required to pay the federal government for interest they earn on fund advances because they rarely have funds pending disbursement long enough to earn a significant amount of interest.

Nov 22, 2017

Nov 21, 2017

  • A-P-T Research, Inc.
    We deny the protest in part and dismiss the protest in part.

Nov 20, 2017

Nov 16, 2017

  • HBI-GF, JV
    We deny the protest.
  • Epsilon Systems Solutions, Inc.
    We dismiss the protest because it raises a matter of contract administration over which we do not exercise jurisdiction.

Nov 15, 2017

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