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B-236549 1 (1990-08-13)

handle is hein.gao/gaobadntx0001 and id is 1 raw text is: '-- &..- I ' zComptroller General of the United States Washington, D.C. 20548 Decision Matter of: Syracuse University, Interest Earned on Grant Funds File: B-236549 Date: August 13, 1990 DIGEST In the Urgent Supplemental Appropriations Act, Pub. L. No. 99-349, 100 Stat. 710, 725 (1986), which directed that Syracuse University receive a research grant, Congress did not evidence a clear intent that the University have the benefit of interest earned on grant funds. The general rule therefore applies that interest earned by a grantee on funds advanced by the United States belongs to the United States rather than the grantee and must be paid to the United States. See 42 Comp. Gen. 289, 293 (1962). In absence of evidence documenting actual interest earned, Navy properly computed interest by using the 6-month Treasury rate provided in 4 C.F.R. § 102.13(c) (1989). See 31 U.S.C. § 3717 (1982). DECISION This decision is in response to an August 11, 1989, letter from Syracuse University (University) asking whether the University must pay the Department of the Navy (Navy) interest earned on a congressionally mandated grant to the University. The Navy contends that the University owes the government over $900,000. The University also raised concerns about the appropriateness of the interest rate used by the Navy to compute the interest due the government. As discussed below, we conclude that the University is required to pay the interest earned on the grant funds and that the 6-month Treasury rate used by the Navy to compute the interest was proper. BACKGROUND In the Urgent Supplemental Appropriations Act, Pub. L. No. 99-349, 100 Stat. 710, 725 (1986), Congress provided that of the funds previously made available to the Department of Defense in fiscal year 1986 under Public Law 99-190, $55,600,000 was to be available only for grants or contributions to educational institutions for research oM')Aq Cfz/ t~( L

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