Common use of Refund Liabilities Clause in Contracts

Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit. 8.4.2 For each refund, the State shall maintain information identifying: (1) date a refund is credited to a State account (2) date of the subsequent deposit of Federal funds against which the refund is offset (3) amount of the refund 8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: With programs to which the following interest neutral funding techniques are applied, the State interest liability shall be based on the difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a subsequent deposit of Federal funds: Actual Clearance (ZBA-ACH), Modified Actual Clearance (ZBA-ACH), Estimated Clearance, Drawdowns on a Payroll Cycle, Drawdowns at Fixed Intervals - Weekly, and Specified Payment Schedules.