District of Columbia: Interest Earned on Federal Funds During Fiscal
Years 1995 Through 1999 (Correspondence, 06/30/2000, GAO/AIMD-00-173R).

Pursuant to a congressional request, GAO provided information on the
interest earned on federal funds appropriated to the District of
Columbia government and its related entities during fiscal years 1995
through 1999.

GAO noted that: (1) the District government and its related entities
received over $3.5 billion in appropriated federal funds from October 1,
1994, through September 30, 1999; (2) the District government and its
related entities reported total interest earnings of $56.8 million on
the above federal funds from October 1, 1994, through February 29, 2000;
(3) the District government and its related entities reported a total of
$39.8 million of interest earnings on federal funds that were expended,
returned to the U.S. Treasury, or restricted for specific uses, leaving
an unobligated cash balance of $17 million that was held in escrow by
the District's Financial Responsibility and Management Assistance
Authority as of February 29, 2000; (4) an additional $3.1 million may
become available when a property received in exchange for a grant is
ultimately sold; (5) in the District's Fiscal Year 2000 Appropriations
Act, Congress required the Authority to transfer to the Mayor $23
million in interest earnings that it held in escrow for the benefit of
the District; and (6) as part of funding the required transfer, the
Authority stated that all of the unobligated and available balance of
interest earnings on federal funds held by it would be applied and that
it would make up the difference with interest earned on nonfederal funds
that it holds in escrow.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-00-173R
     TITLE:  District of Columbia: Interest Earned on Federal Funds
	     During Fiscal Years 1995 Through 1999
      DATE:  06/30/2000
   SUBJECT:  Municipal governments
	     Municipal budgets
	     Federal funds
	     Appropriated funds
	     Interest
	     Escrow accounts
	     Unobligated budget balances
	     Budget administration
IDENTIFIER:  District of Columbia
	     DC General Fund