[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR42.709-4]

[Page 776-777]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents
 
                    Subpart 42.7_Indirect Cost Rates
 
Sec.  42.709-4  Computing interest.

    For 42.709-1(a)(1)(ii), compute interest on any paid portion of the 
disallowed cost as follows:
    (a) Consider the overpayment to have occurred, and interest to have 
begun accumulating, from the midpoint of the contractor's fiscal year. 
Use an alternate equitable method if the cost was not paid evenly over 
the fiscal year.
    (b) Use the interest rate specified by the Secretary of the Treasury 
pursuant to Pub. L. 92-41 (85 Stat. 97).

[[Page 777]]

    (c) Compute interest from the date of overpayment to the date of the 
demand letter for payment of the penalty.
    (d) Determine the paid portion of the disallowed costs in 
consultation with the contract auditor.

[60 FR 42659, Aug. 16, 1995]