[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR42.709-4]



[Page 800-801]

 

            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



[[Page 801]]



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).

    (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]