# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://title5.caqualityearlylearning.org/accounting-and-reporting-requirements/child-development-fund-interest-bearing-accounts.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.