[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR435.24]

[Page 1115]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
  PART 435_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 
 
                    Subpart C_Post-Award Requirements
 
Sec. 435.24  Program income.

    (a) Introduction. SSA will apply the standards set forth in this 
section in requiring recipient organizations to account for program 
income related to projects financed in whole or in part with Federal 
funds.
    (b) Use of program income. 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 SSA regulations or the 
terms and conditions of the award, must be used in one or more of the 
following ways. Program income must be:
    (1) Added to funds committed to the project by the Federal awarding 
agency 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) Use of excess program income. When an agency authorizes the 
disposition of program income as described in paragraph (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) When the use of program income is not specified. In the event 
that SSA 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 will apply automatically to all projects or programs except 
research. For awards that support research, paragraph (b)(1) of this 
section will apply automatically unless SSA indicates in the terms and 
conditions another alternative on the award or the recipient is subject 
to special award conditions, as indicated in Sec. 435.14.
    (e) Program income earned after end of project period. Unless SSA 
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) Costs incident to generation of program income. If authorized by 
SSA regulations or 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 sale of property. Proceeds from the sale of 
property must be handled in accordance with the requirements of the 
Property Standards (See Sec. Sec. 435.30 through 435.37).
    (h) Program income from license fees and royalties. Unless SSA 
regulations or the terms and condition of the award provide otherwise, 
recipients 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.