UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION ASSISTANCE

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Page 20 of 52 (6) Unless otherwise required by Federal statutes, payments for allowable costs by non - Federal entities must not be withheld at any time during the period of performance unless the conditions of 200.207 Specific conditions, Subpart D—Post Federal Award Requirements of this part, 200.338 Remedies for Noncompliance, or one or more of the following applies: (i) The non -Federal entity has failed to comply with the project objectives, Federal statutes, regulations, or the terms and conditions of the Federal award. (ii) The non -Federal entity is delinquent in a debt to the United States as defined in OMB Guidance A-129, "Policies for Federal Credit Programs and Non -Tax Receivables." Under such conditions, the Federal awarding agency or pass - through entity may, upon reasonable notice, inform the non -Federal entity that payments must not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (iii) A payment withheld for failure to comply with Federal award conditions, but without suspension of the Federal award, must be released to the non -Federal entity upon subsequent compliance. When a Federal award is suspended, payment adjustments will be made in accordance with 200.342 Effects of suspension and termination. (iv) A payment must not be made to a non -Federal entity for amounts that are withheld by the non -Federal entity from payment to contractors to assure satisfactory completion of work. A payment must be made when the non -Federal entity actually disburses the withheld funds to the contractors or to escrow accounts established to assure satisfactory completion of work. (7) Standards governing the use of banks and other institutions as depositories of advance payments under Federal awards are as follows. (i) The Federal awarding agency and pass -through entity must not require separate depository accounts for funds provided to a non -Federal entity or establish any eligibility requirements for depositories for funds provided to the non -Federal entity. However, the non -Federal entity must be able to account for the receipt, obligation and expenditure of funds. (ii) Advance payments of Federal funds must be deposited and maintained in insured accounts whenever possible. (8) The non -Federal entity must maintain advance payments of Federal awards in interest -bearing accounts, unless the following apply. Agreement No. R20AP00075 Agreement Template (03/2019)