B-60952 July 2, 1953

B-60952: Jul 2, 1953

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New Jersey Gentlemen: Reference is made to your letter of May 5. You state that there is a difference of $1. 362.48 between your calculation which is on the basis of a 360-day year as figured from bank tables. It has been a rule long followed by the accounting officers of the Government that the computation of interest in Government transactions are calculated for a fractional part of a year on the basis of the actual number of days within the period involved. Interest is computed on the basis of 365 days per year. The computation of interest as set forth in said settlement is correct and there appears no legal basis for allowance of any additional amount.

B-60952 July 2, 1953

Reineer Transportation Companies 10 Commerce Court Newark 2, New Jersey

Gentlemen:

Reference is made to your letter of May 5, 1953, requesting reconsideration of the computation of the four percent interest allowed in General Accounting Office settlement dated April 1, 1953, issued pursuant to Court of Claims judgment rendered April 8, 1952, in favor of the plaintiffs, in the case entitled R.T.C. No. Eleven Corporation v. United States, No. 47347. You state that there is a difference of $1,362.48 between your calculation which is on the basis of a 360-day year as figured from bank tables, and the actual number of days in a year, as used in the said settlement computations.

In the absence of clear authority to the contrary, it has been a rule long followed by the accounting officers of the Government that the computation of interest in Government transactions are calculated for a fractional part of a year on the basis of the actual number of days within the period involved, using such number of days as the numerator and the actual number of days in the particular (calendar) year as the denominator--including either the beginning or ending date of the period, but not both (1 Comp. Gen. 411; A-51618 dated November 21, 1934). In other words, interest is computed on the basis of 365 days per year, on 366 days in a leap year. See 15 Comp. Gen. 871; id. 992, and 22 Comp. Gen. 656.

Accordingly, the computation of interest as set forth in said settlement is correct and there appears no legal basis for allowance of any additional amount.

Very truly yours,

Lindsay C. Warren Comptroller General of the United States