[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

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

[CITE: 7CFR246.15]



[Page 374]

 

                          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]