ALP and the State of Colorado Interest During Construction Walkthrough

FIN 07- 2Q -10 -A Interest During Construction (IDC) Page 2 of 3
Notember 10, 1980.)
C. Base for
(1). The base for computing IDC will be net disbursements of the funds used
for the construction, replacements, or addition plus (effective October 1, 1983),
IDC adjusted downward for the following items:
• Contract holdbacks when released and paid to the contractor.
• Expenditures for nonreimbursable expenses financed from construction funds.
• Funds returned to the Treasury arising from construction activities and associated
with construction cost credits.
• Expenditures financed from revenues or non - Federal sources.
The base for computing IDC on additions and replacements may be determined
by analysis of the applicable accounts with adjustments as indicated above.
(2). The accumulated net disbursements for advance planning and
preconstruction cost activities will become a part of the base for computing
IDC commencing with the beginning of the year that construction is initiated.
(3). The IDC will not be applied to general investigation disbursements either
before or after initiation of construction. This includes both reimbursable and
nonreimbursable general investigations costs.
(4). The allocations of costs for the purposes of calculating IDC will be the
same as those used for the Statement of Project Construction Cost and
Repayment.
D. I Vhen To Start Interest During Construction. The IDC will begin for a project, a unit of a
project, or a replacement or addition when the first disbursement is made to initiate
con truction or replacement. This is defined as the point in time when the first disbursement
is made under a construction contract, including contracts for purchase of rights -of -way, as
distinguished from disbursements for advance planning and preconstruction activities.
E. ermination Of Interest During Constriction. Normally, IDC will terminate at the end of
the Fiscal year in which construction of the feature and any necessary associated features is
sub tantially completed and the facilities are ready to deliver water and /or power. The IDC
wil terminate on additions and replacements when they are substantially completed. When
rep yment and associated interest on investment does not start at the beginning of a fiscal
yea , IDC will be computed up to the time that interest on investment begins.
F. F rocedures For Computing Interest During Construction. The IDC is considered to be an
esti nate for construction and deficits until a Final Cost Allocation (FCA) has been
con pleted and for replacements or additions until substantial completion and transfer to the
plai t accounts. Refer to Attachment A (including Figures 1, 2, and 3) for further details.
G.
Refer to
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