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                            1632.771   Non-commingling of FEHBP funds.
        
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FEHBARPart Number: 1632
        
                  

                                
                  
        Federal Employee Health Benefits Acquisition Regulation
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1632.771 Non-commingling of FEHBP funds.1632.771 Non-commingling of FEHBP funds.       (a) This section applies to contracts based on cost analysis.          (b) Carrier or underwriter commingling of FEHBP funds with those from other sources makes it difficult to precisely determine FEHBP cash balances at any given time or to precisely determine investment income attributable to FEHBP invested assets.          (c) FEHBP funds shall be maintained separately from other cash and investments of the carrier or underwriter. Cash and investment balances reported on FEHBP Annual Accounting Statements must agree with the carrier's books and records.          (d) This requirement may be waived by the contracting officer in accordance with the clause at 1652.232–72 when adequate accounting and other controls are in effect. If the requirement is waived, the waiver will remain in effect until it is withdrawn by OPM. The waiver shall be withdrawn if OPM determines that the accounting controls are no longer adequate to properly account for FEHBP funds.    **Parent topic:**  Subpart 1632.7—Contract Funding
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