303.123—Prohibition against commingling.
The statement must include an assurance satisfactory to the Secretary that funds made available under this part will not be commingled with State funds.
(Approved by the Office of Management and Budget under control number 1820-0550)
Code of Federal Regulations
(Authority:
20 U.S.C. 1437(b)(5)(A)
)
Code of Federal Regulations
Note:
As used in this part, commingle means depositing or recording funds in a general account without the ability to identify each specific source of funds for any expenditure. Under that general definition, it is clear that commingling is prohibited. However, to the extent that the funds from each of a series of Federal, State, local, and private funding sources can be identified—with a clear audit trail for each source—it is appropriate for those funds to be consolidated for carrying out a common purpose. In fact, a State may find it essential to set out a funding plan that incorporates, and accounts for, all sources of funds that can be targeted on a given activity or function related to the State's early intervention program.
Thus, the assurance in this section is satisfied by the use of an accounting system that includes an “audit trail” of the expenditure of funds awarded under this part. Separate bank accounts are not required.