[Interest Earned on Unauthorized Loans of Federal Grant Funds]

B-246502: May 11, 1992

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The Inspector General of the Department of Housing and Urban Development (HUD) requested a decision regarding the disposition of the interest earned on unauthorized loans. GAO held that the interest: (1) was earned before the funds were used for an authorized purpose; and (2) belonged to the United States. Accordingly, HUD should take appropriate collection action and deposit the interest collected in the Treasury as miscellaneous receipts.