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B-191420 1 (1978-08-24)

handle is hein.gao/gaobadgje0001 and id is 1 raw text is: I DECIBIIl FILE: 3-191420 MATTEF OF: DIGEST: I a ..E COMPTR2LLER OWNERAL OF THE UNITED *TAVEU WAUHJNGTON, D.C. 2054E DATE: AUG 2 419 Armed Forces Institute of Pathology Claim Against Universities Associated for Research ard Education in Pathology 1. The grant agreement between the grantor, National Cancer Institute, and the grantee, Uni- versities Associated for Research and Education in Pathology, specifically provides that any income conatrued to be grant-related income shall be retained by the grantee and disposed of as directcd by-the grantor. The grantor and grantee have con- strued the proceeds from the sale of the Atlas of Tumor Fdthology to be grant-related income. There- fore, since funds in the hands of grantees lose their Federal character and are not subject to requirement that income generated by Federal funds must be deposited in the Treasury, 31 U.S.C. F 48' (1970), the procezeds may be retained by the grantee in accordance with the grant agreement and disposed of as directed by the grantor. 2. The Armed Forces Institute of Pathology (AFTP) position that the Atlas proceeds belong to the Govern- ment because the concept for the Atlas originated within the Federal sector, the Atlas preparation was federally funded, mnd the Atlas was printed on Govern- ment Printing Office pressan, is without merit. The grantor and the grant agreement, rather the above factors, determine the disposition of grant-related income. Thi Armed Forces Institute of Pathology (AFIP) has forwarded a claim against the Universities Asnociated for Research and Education in Pathology (UAEP) to our Office for collection. The claim involves proceeds from the sale of thepAtlbs of Tumor rathology (Atlas). The Atlas has been prepared by UAREP for a number of years under a grant from the National Cancer Institute (NCI). The grantee feels it is not legally obligated to turn these funds over to APIP. The claim raises the question of whether proceeds from the sale of the Atlas are grant- related program income retainable by the grantee (UAREP) or whether the funds are Federal funds which should be transferred to the Govern- ment. We have concluded that the proceeds from the sale of the Atlas I L 'K I I __1

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