[Code of Federal Regulations]
[Title 28, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 28CFR70.24]

[Page 266-267]
 
                    TITLE 28--JUDICIAL ADMINISTRATION
 
              CHAPTER I--DEPARTMENT OF JUSTICE (Continued)
 
  PART 70--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS (INCLUDING SUBAWARDS) WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS AND OTHER NON-
PROFIT ORGANIZATIONS--Table of Contents
 
                   Subpart C--Post-Award Requirements
 
Sec. 70.24  Program income.

    (a) The standards set forth in this section requiring recipient 
organizations to account for program income related to projects financed 
in whole or in part with Department funds.

[[Page 267]]

    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period must be retained by the 
recipient and, in accordance with the Department regulations or the 
terms and conditions of the award, must be used in one or more of the 
ways listed in the following:
    (1) Added to funds committed to the project by the Department and 
recipient and used to further eligible project or program objectives.
    (2) Used to finance the non-Federal share of the project or program.
    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (c) When the Department authorizes the disposition of program income 
as described in paragraphs (b)(1) or (b)(2), of this section, program 
income in excess of any limits stipulated must be used in accordance 
with paragraph (b)(3) of this section.
    (d) In the event that the Department does not specify in its 
regulations or the terms and conditions of the award how program income 
is to be used, paragraph (b)(3), of this section applies automatically 
to all projects or programs.
    (e) Unless the Department's regulations or the terms and conditions 
of the award provide otherwise, recipients will have no obligation to 
the Federal Government regarding program income earned after the end of 
the project period.
    (f) If authorized by the terms and conditions of the award, costs 
incident to the generation of program income may be deducted from gross 
income to determine program income, provided these costs have not been 
charged to the award.
    (g) Proceeds from the sale of property must be handled in accordance 
with the requirements of the Property Standards (See Secs. 70.30 through 
70.37).
    (h) Unless the terms and conditions of the award provide otherwise, 
recipients will have no obligation to the Federal Government with 
respect to program income earned from license fees and royalties for 
copyrighted material, patents, patent applications, trademarks, and 
inventions produced under an award. However, Patent and Trademark 
Amendments (35 U.S.C. 18) apply to inventions made under an 
experimental, developmental, or research award.
    (i) Recipients must account for seized assets from the date of 
seizure until forfeiture and liquidation of funds occur.