A:

There are two types of interest;

1) Interest earned on the money the coordinator holds before he distributes the money

2) Interest earned by the contractors once the money has been distributed. (This includes the money the Coordinator distributes to himself)

In case (2), the interest is yours and you do not declare it.

In the case (1), this interest belongs to the commission and is classed as a receipt (income to the project), and as such has to be declared in the coordinators C Form. The commission will use this money as part of the funding you have received, and will deduct it from future payments.

Please see http://www.finance-helpdesk.org/front/ShowCategory.aspx?ItemID=300 where we answered this question before.