Nonallowable Interest Cost

30.5 - Nonallowable Interest Cost (Rev. 30, 09-05-03) Interest accrued on overpayments and interest on funds borrowed specifically to repay overpayments are not considered allowable costs to the HCPP, up to the amount of the overpayment, unless the HCPP had made a prior commitment to borrow funds for other purposes (e.g., capital improvements). However, when an overpayment determination is ultimately reversed in favor of the HCPP, interest paid on funds borrowed to repay the overpayment, and interest paid on funds borrowed to pay required interest on the overpayment, will be considered an allowable cost.