# Child Development Fund; Interest Bearing Accounts

(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. 

(b) Contractors with multiple fund sources shall establish separate program cost accounts for each source of funds. 

(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. 

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

              (1) Expended on reimbursable costs; and 

              (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.