[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: 45CFR92.25]



[Page 449-450]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

PART 92_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE, LOCAL, AND TRIBAL GOVERNMENTS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 92.25  Program income.



    (a) General. Grantees are encouraged to earn income to defray 

program costs. Program income includes income from fees for services 

performed, from the use or rental of real or personal property acquired 

with grant funds, from the sale of commodities or items fabricated under 

a grant agreement, and from payments of principal and interest on loans 

made with grant funds. Except as otherwise provided in regulations of 

the Federal agency, program income does not include interest on grant 

funds, rebates, credits, discounts, refunds, etc. and interest earned on 

any of them.

    (b) Definition of program income. Program income means gross income 

received by the grantee or subgrantee directly generated by a grant 

supported activity, or earned only as a result of the grant agreement 

during the grant period. ``During the grant period'' is the time between 

the effective date of the award and the ending date of the award 

reflected in the final financial report.

    (c) Cost of generating program income. If authorized by Federal 

regulations or the grant agreement, costs incident to the generation of 

program income may be deducted from gross income to determine program 

income.

    (d) Governmental revenues. Taxes, special assessments, levies, 

fines, and other such revenues raised by a grantee or subgrantee are not 

program income unless the revenues are specifically identified in the 

grant agreement or Federal agency regulations as program income.

    (e) Royalties. Income from royalties and license fees for 

copyrighted material, patents, and inventions developed by a grantee or 

subgrantee is program



[[Page 450]]



income only if the revenues are specifically identified in the grant 

agreement or Federal agency regulations as program income. (See Sec. 

92.34.)

    (f) Property. Proceeds from the sale of real property or equipment 

will be handled in accordance with the requirements of Sec. Sec. 92.31 

and 92.32.

    (g) Use of program income. Program income shall be deducted from 

outlays which may be both Federal and non-Federal as described below, 

unless the Federal agency regulations or the grant agreement specify 

another alternative (or a combination of the alternatives). In 

specifying alternatives, the Federal agency may distinguish between 

income earned by the grantee and income earned by subgrantees and 

between the sources, kinds, or amounts of income. When Federal agencies 

authorize the alternatives in paragraphs (g) (2) and (3) of this 

section, program income in excess of any limits stipulated shall also be 

deducted from outlays.

    (1) Deduction. Ordinarily program income shall be deducted from 

total allowable costs to determine the net allowable costs. Program 

income shall be used for current costs unless the Federal agency 

authorizes otherwise. Program income which the grantee did not 

anticipate at the time of the award shall be used to reduce the Federal 

agency and grantee contributions rather than to increase the funds 

committed to the project.

    (2) Addition. When authorized, program income may be added to the 

funds committed to the grant agreement by the Federal agency and the 

grantee. The program income shall be used for the purposes and under the 

conditions of the grant agreement.

    (3) Cost sharing or matching. When authorized, program income may be 

used to meet the cost sharing or matching requirement of the grant 

agreement. The amount of the Federal grant award remains the same.

    (h) Income after the award period. There are no Federal requirements 

governing the disposition of program income earned after the end of the 

award period (i.e., until the ending date of the final financial report, 

see paragraph (a) of this section), unless the terms of the agreement or 

the Federal agency regulations provide otherwise.