1. (a) All contractors shall establish a fund to be known as the “Child Development Fund” as specified in Education Code Section 8328, except that private contractors shall establish the fund in a federally insured banking institution located in California.
2. (b) Contractors with multiple fund sources shall establish separate program cost accounts for each source of funds.
3. (c) If a contractor places advanced contract funds in an interest bearing account, the interest bearing account shall be a separate account within the Child Development Fund.

4. (d) Interest earned shall be retained by the contractor if:

   1. (1) Expended on reimbursable costs; and
   2. (2) Except Resource and Referral programs, earned by providing subsidized days/hours of enrollment beyond the minimum required to earn the maximum reimbursable amount at a rate equal to the lesser of the daily/hourly contract rate or the actual program costs.

Note: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8328, Education Code.

History

1. New section filed 11-21-88; operative 1-1-89 (Register 88, No. 50).