HHS Financial Policies and Guidance
HHS financial policies and guidance covers many topical areas, much of which are provided through Office of Management and Budget (OMB) circulars. Below you will find links to those sites and to HHS financial guidance.
- OMB Circular A-102: Grants and Cooperative Agreements with State and Local Governments
- OMB Circular A-110: Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
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- Cash Management Improvement Act (CMIA) (Treasury)
The Cash Management Improvement Act governs the transfer of funds between the Federal Government and States for certain Federal assistance programs. - Prompt Payment (Treasury)
The Prompt Pay Act requires Executive Departments and Agencies to pay commercial obligations within certain time periods and to pay interest penalties when payments are late.
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The Code of Federal Regulations (45 CFR Part 30) Claims Collection Section 30.18 entitled "Interest, penalties, and administrative costs" contains the basis for the Secretary to determine a higher interest rate than the current value of funds rate for delinquent debt to protect the Governments' interests. Treasury certifies a rate quarterly to the U.S. Public Health Service for delinquencies in the National Research Services Awards 42 USC 288(c)(4) (B) and the National Health Services Corps Scholarship Program 42 USC 250 (B)(1)(A).
The Treasury utilizes the most comprehensive data available on consumer interest rates which is based on consumer lending rates obtained from the Federal Reserve Board's release entitled "Interest Rates on Selected Consumer Installment Loans at Reporting Commercial Banks" rounded to the nearest 1/8 of one percentage point to determine the certified quarterly rate. The Department of Health and Human Services (HHS) utilizes this rate to charge interest for delinquent debts as authorized by HHS regulations.
HHS begins applying the Treasury "certified quarterly" interest rate on the day that HHS becomes entitled to recover funds. Upon receipt of Treasury's notification, HHS publishes the rate in the Federal Register.This rate is certified by Treasury near the end of a quarter or later. HHS applies that interest rate from the date the notification is published in the Federal Register.
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4150-04 Notice of Interest Rate on Overdue Debts - March 31, 2009
Section 30.18 of the Department of Health and Human Services' claims collection regulations (45 CFR Part 30) provides that the Secretary shall charge an annual rate of interest as fixed by the Secretary of the Treasury after taking into consideration private consumer rates of interest prevailing on the date that HHS becomes entitled to recovery. The rate generally cannot be lower than the Department of Treasury's current value of funds rate or the applicable rate determined from the "Schedule of Certified Interest Rates with Range of Maturities." This rate may be revised quarterly by the Secretary of the Treasury and shall be published quarterly by the Department of Health and Human Services in the Federal Register.
The Secretary of the Treasury has certified a rate of 11% for the quarter ended March 31, 2009. This interest rate will remain in effect until such time as the Secretary of the Treasury notifies HHS of any change.
Director, Office of Financial Policy and Reporting
Molly P. Dawson
4150-04 Notice of Interest Rate on Overdue Debts - December 30, 2008
Section 30.18 of the Department of Health and Human Services' claims collection regulations (45 CFR Part 30) provides that the Secretary shall charge an annual rate of interest as fixed by the Secretary of the Treasury after taking into consideration private consumer rates of interest prevailing on the date that HHS becomes entitled to recovery. The rate generally cannot be lower than the Department of Treasury's current value of funds rate or the applicable rate determined from the "Schedule of Certified Interest Rates with Range of Maturities." This rate may be revised quarterly by the Secretary of the Treasury and shall be published quarterly by the Department of Health and Human Services in the Federal Register.
The Secretary of the Treasury has certified a rate of 11 3/8% for the quarter ended December 30, 2008. This interest rate will remain in effect until such time as the Secretary of the Treasury notifies HHS of any change.
Director, Office of Financial Policy and Reporting
Molly P. Dawson
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Also see HHS Financial and Performance Reports
Last Updated: 11/24/2008
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