[Code of Federal Regulations]
[Title 34, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR364.5]

[Page 340]
 
                           TITLE 34--EDUCATION
 
            REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION
 
PART 364--STATE INDEPENDENT LIVING SERVICES PROGRAM AND CENTERS FOR INDEPENDENT LIVING PROGRAM: GENERAL PROVISIONS--Table of Contents
 
                           Subpart A--General
 
Sec.  364.5  What is program income and how may it be used?

    (a) Definition. Program income means gross income received by a 
grantee under title VII of the Act that is directly generated by an 
activity supported under 34 CFR part 365, 366, or 367.
    (b) Sources. Sources of program income include, but are not limited 
to, payments received from workers' compensation funds or fees for 
services to defray part or all of the costs of services provided to 
particular consumers.
    (c) Use of program income. (1) Program income, whenever earned, must 
be used for the provision of IL services or the administration of the 
State plan, as appropriate.
    (2) A service provider is authorized to treat program income as--
    (i) A deduction from total allowable costs charged to a Federal 
grant, in accordance with 34 CFR 80.25(g)(1); or
    (ii) An addition to the grant funds to be used for additional 
allowable program expenditures, in accordance with 34 CFR 80.25(g)(2).
    (3) Program income may not be used to meet the non-Federal share 
requirement under 34 CFR 365.12(b).

(Authority: 29 U.S.C. 711(c); 34 CFR 80.25)