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) Personal service for State staff devoted to those tasks at both central control and program agencies 2) Banking services relating to clearance pattern development 3) Computer programming time at various State agencies 4) Advisory services provided by a firm, such as a certified public accounting firm, to staff from the Office of the State Comptroller, the Division of the Budget, certain state agencies and banks, in conjunction with the development of check clearance patterns, interest calculation methodologies, the annual report, and the interest calculation cost claim required or authorized under the Act and this Agreement 10.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance with 31 CFR 205.