[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR246.15]

[Page 364]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 246_SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND 
CHILDREN--Table of Contents
 
                    Subpart E_State Agency Provisions
 
Sec.  246.15  Program income other than grants.

    (a) Interest earned on advances. Interest earned on advances of 
Program funds at the State and local levels shall be treated in 
accordance with the provisions of 31 CFR Part 205, which implement the 
requirements of the Cash Management Improvement Act of 1990. However, 
State agencies will not incur an interest liability to the Federal 
government on rebate funds for infant formula or other foods, provided 
that all interest earned on such funds is used for program purposes.
    (b) Other Program income. The State agency may use current Program 
income for costs incurred in the current fiscal year and, with the 
approval of FNS, for costs incurred in previous or subsequent fiscal 
years. With the approval of FNS, Program income may be used for costs 
which are in addition to the allowable costs of the Program but which 
nevertheless further the objectives of the law authorizing the Program. 
Provided that the costs supported by the income further the broad 
objectives of the Program, they need not be a kind that would be 
permissible as charges to Federal funds. Money received by the State 
agency as a result of civil money penalties or fines assessed against a 
vendor and any interest charged in the collection of these penalties and 
fines shall be considered as program income.

[50 FR 6121, Feb. 13, 1985, as amended at 63 FR 63974, Nov. 18, 1998; 64 
FR 13324, Mar. 18, 1999]