[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR74.24]



[Page 219]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

    PART 74_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NONPROFIT ORGANIZATIONS, AND 

COMMERCIAL ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 74.24  Program income.



    (a) The standards set forth in this section shall be used to account 

for program income related to projects financed in whole or in part with 

Federal funds.

    (b) Except as provided below in paragraph (h) of this section, 

program income earned during the project period shall be retained by the 

recipient and, in accordance with the terms and conditions of the award, 

shall be used in one or more of the following ways:

    (1) Added to funds committed to the project or program, and used to 

further eligible project or program objectives;

    (2) Used to finance the non-Federal share of the project or program; 

or

    (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 HHS awarding 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 shall be used 

in accordance with paragraph (b)(3) of this section.

    (d) In the event that the HHS awarding agency does not specify in 

the terms and conditions of the award how program income is to be used, 

paragraph (b)(3) of this section shall apply automatically to all 

projects or programs except research. For awards that support 

performance of research work, paragraph (b)(1) of this section shall 

apply automatically unless:

    (1) The HHS awarding agency indicates in the terms and conditions of 

the award another alternative; or

    (2) The recipient is subject to special award conditions under Sec. 

74.14; or

    (3) The recipient is a commercial organization (see Sec. 74.82).

    (e) Unless the terms and conditions of the award provide otherwise, 

recipients shall have no obligation to the Federal Government regarding 

program income earned after the end of the project period.

    (f) 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 shall be handled in 

accordance with the requirements of the Property Standards. (See 

Sec. Sec. 74.30 through 74.37, below).

    (h) The Patent and Trademark Laws Amendments, 35 U.S.C. section 200-

212, apply to inventions made under an award for performance of 

experimental, developmental, or research work. Unless the terms and 

conditions for the award provide otherwise, recipients shall have no 

obligation to HHS with respect to program income earned from license 

fees and royalties for copyrighted material, patents, patent 

applications, trademarks, and inventions made under an award. However, 

no scholarship, fellowship, training grant, or other funding agreement 

made primarily to a recipient for educational purposes will contain any 

provision giving the Federal agency rights to inventions made by the 

recipient.