[Code of Federal Regulations]
[Title 7 Volume 4]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR277.10]

[Page 890]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 277--PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE AGENCIES--Table of Contents
 
Sec. 277.10  Program income.

    (a) Program income is gross income resulting from activities 
financed with program funds. Such earnings exclude interest income but 
include income from service fees, usage or rental fees, sale of assets 
purchased with program funds, and royalties on patents and copyrights.
    (b) Interest earned on advances of program administrative funds 
shall be remitted to FNS except for interest earned on advances to 
States or instrumentalities of a State as provided by the 
Intergovernmental Cooperation Act of 1968 (Pub. L. 90-577) and advances 
to tribal organizations under the Indian Self-Determination Act 
(sections 102 through 104).
    (c) Income resulting from the sale of real and personal property 
whose acquisition cost was borne in whole or in part with Program funds 
shall be remitted to FNS or applied to the Federal share of current 
program costs in accordance with Sec. 277.13. All other sales proceeds 
will be handled in accordance with Sec. 277.13.
    (d) Unless there is a prior agreement between FNS and the State 
agency, the State agency shall have no obligation to FNS with respect to 
royalties received from copyrights or patents produced as a result of 
activities financed with program administrative funds.
    (e) Any other income earned under activities supported by program 
administrative funds may be retained by the State agency if they are 
deducted from the gross program administrative costs for the purposes of 
determining net costs and FNS's share of net cost.
    (f) State agencies shall record the receipt and expenditure of 
revenues such as taxes, special assessments, levies, fines, etc., as a 
part of program fund transactions when such revenues are specifically 
earmarked for program fund projects.