In Academic Year 2002, the University has developed a new policy for automatically paying interest on fund balances and charging interest on most fund deficits. Interest credits or charges will be posted directly to the funds.

Interest credits and charges are based on June 30 final balances, except for sponsored fund interest credits, which will be based on monthly balances. Departments are advised to review their fund balances and resolve any deficits by June 30 to avoid interest charges. The following table summarizes the policy by fund type:

Fund Type
(HMS # Range)
Surplus Balances Earn Interest At
Deficit Balances Charged Interest At
Calculation Method
Gift funds
(362000 - 365999)
2%
4%
Once annually, based on June 30th balance
Unrestricted designated funds
(024000 - 028999)
2%
4%
Once annually, based on June 30th balance
Sponsored funds
(223700 - 225699)
(280000 - 281999)
2%
No interest charge
Prior month-end balance minus YTD interest
Endowment funds
(600000 - 614999)
2%
4%
Once annually, based on June 30th balance

The rates used will be reviewed annually and adjusted to reflect market conditions.

Deficit balances will incur interest charges in July, as per the above. Departments will be served to review their funds and close out any deficits by year-end to avoid these charges.

The full text of this policy can be downloaded by the Office for Sponsored Research website at: http://vpf-web.harvard.edu/osr/setup/set_ngne_interest.shtml




Harvard Medical School. Last Updated: Aug 2004. Send feedback to: foa@hms.harvard.edu