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Deposits with Central Bank - Internal Interest Policy
The Central Bank pays and charges interest on certain net asset balances (“deposits”) on a periodic basis. The Bank pays or charges interest based on the average 90-day T-Bill rate projected for the upcoming year. To the extent the rate paid or charged differs from actual experience, the Bank will add or deduct the difference from the rate projected for the next year.
The table below provides the rates effective for FY 2008.
Internal interest policies
FY 2008
|
Fund Type |
Rate - surpluses |
Rate - deficits |
Frequency |
Basis |
| Unexpended Endowment Income |
5.1% |
5.1% (a) |
Annual - July |
June 30th balance |
| Unrestricted Undesignated |
5.1% |
2.8% (a) |
Annual - July |
June 30th balance |
| Unrestricted Designated |
5.1% |
5.1% (a) |
Annual - July |
June 30th balance |
| Restricted Current Use Gifts |
5.1% |
5.1% (a) |
Annual - July |
June 30th balance |
| Non-federal Sponsored Grants |
5.1% (b) |
5.1% (c) |
Monthly |
Prior month-end balance (exclusive of YTD interest) |
| Non-federal Sponsored Awards |
5.1% (b) |
5.1% (c) |
Monthly |
Prior month-end balance (exclusive of YTD interest) |
| Federal Grants & Contracts |
n/a |
5.1% (c) |
Monthly |
Prior month-end balance (interest charged to unrestricted) |
| Gifts for Construction |
5.1% |
5.50% (d) |
Monthly |
Prior month-end balance (exclusive of YTD interest) |
| Over/Underfunded CIP |
5.1% |
5.50% (d) |
Monthly |
Adjusted prior month-end balance |
- Interest rates will be reassessed annually.
- Interest rates shown are annual rates. For monthly allocations, the monthly rate is 1/12 of the rate shown.
a) Interest on funds with deficits will be charged directly to the funds themselves.
b)
The journal for interest credits on surplus balances of Non-federal
Sponsored Grants is processed through an automated allocation. The
journal for interest credits on surplus balances of Non-federal
Sponsored Awards is processed manually by OSP. After GMAS
implementation, this allocation will be automated. OSP
charges interest on certain sponsored deficit balances through a manual
journal; this charge is not part of the automated allocation. After GMAS implementation, it is expected that this allocation will be automated.
c) Interest charges will be levied on unrestricted tub funds; interest charges may not be levied against any sponsored funds.
d) This rate is based upon the blended debt rate. |
The table below provides historic interest rates since FY 2004.
Fiscal year rate comparison |
Fund Type |
Rate-surpluses |
Rate-deficits |
Frequency |
Basis |
| |
FY07 |
FY06 |
FY05 |
FY04 |
FY07 |
FY06 |
FY05 |
FY04 |
|
|
| Unexpended Endowment Income |
4.0% |
2.8% |
1.0% |
2.0% |
4.0% |
2.8% |
1.0% |
4.0% |
Annual - July |
June 30th balance |
| Unrestricted Undesignated |
4.0% |
2.8% |
1.0% |
2.0% |
4.0% |
2.8% |
1.0% |
4.0% |
Annual - July |
June 30th balance |
| Non-federal Sponsored Grants |
4.0% |
2.8% |
1.0% |
2.0% |
4.0% |
2.8% |
1.0% |
n/a |
Monthly |
Prior month-end balance
(exclusive of YTD interest) |
| Non-federal Sponsored Awards |
4.0% |
2.8% |
1.0% |
2.0% |
4.0% |
2.8% |
1.0% |
n/a |
Monthly |
Prior month-end balance
(exclusive of YTD interest) |
Federal
Grants&
Contracts |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
1.0% |
n/a |
Monthly |
Prior month-end balance
(interest charged to unrestricted) |
Gifts for
Construction |
4.0% |
2.8% |
1.0% |
2.0% |
5.50% |
5.55% |
5.6% |
5.6% |
Monthly |
Prior month-end balance
(exclusive of YTD interest) |
Over/
Underfunded
CIP |
4.0% |
2.8% |
1.0% |
2.0% |
5.50% |
5.55% |
5.6% |
5.6% |
Monthly |
Adjusted prior
month-end balance |
Note: Interest rates are reassessed annually.
Interest rates shown are annual rates. For monthly allocations, the monthly rate is 1/12 of the rate shown.
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