Common use of INTEREST CALCULATION COSTS Clause in Contracts

INTEREST CALCULATION COSTS. 10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual calculation of interest, including the cost of developing and maintaining clearance patterns in support of the interest calculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or modernizing accounting systems. Interest calculation costs in excess of $50,000 in any year are not eligible for reimbursement, unless the State provides justification with the annual report. 10.2 The State expects to incur the following types of interest calculation costs: (1) System analysts' time to prepare detail specifications for programming and testing programs. (2) Programmer's time to write required programs. (3) Computer time to analyze bank clearance tapes, process check clearance data, and process interest programs. (4) User analysts' time to identify payment data criteria for developing check clearance patterns, review check clearance data to establish check clearance patterns and drawdown delay periods, and analyze interest calculation reports. 10.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance with 31 CFR 205.