Common use of Earned Interest Clause in Contracts

Earned Interest. Earned interest means any interest earnings generated from grant funds held by Grantee in interest bearing accounts. a. Except as provided in Section G.7.b.iii., above, Grant funds are not required to be held in an interest bearing account. However, if interest is earned by ▇▇▇▇▇▇▇ on the project, the earnings must be reported to CARB. All interest income on the project funds must be reinvested in and used by the project or returned to CARB. ▇▇▇▇▇▇▇ is responsible for reporting to CARB all project expenditures funded with interest earned on the grant funds. b. If applicable, the Grantee must maintain accounting records (e.g., general ledger) that tracks interest earned, expended, reinvested, or returned on the grant funds, as follows: i. The calculation of interest must be based on an average daily balance or some other reasonable and demonstrable method. ii. Interest earned must be separately identifiable from interest earned on nongrant funds. iii. The methodology for calculating earned interest must be consistent with how it is calculated for Grantee’s other fiscal programs, if applicable. iv. Earned interest must be fully expended or returned to CARB by completion of the project, submittal of the Final Report, or by May 15, 2021, whichever comes first. v. Documentation of interest earned on grant funds must be retained for a minimum of three years after it is generated. Documentation of interest expended on eligible equipment must be retained for a minimum of three years after the interest-funded equipment has been redeemed. vi. The above documentation must be provided to CARB in Quarterly Reports and Final Report.