[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: 7CFR277.10]



[Page 890]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 277_PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE AGENCIES

--Table of Contents

 

Sec. 277.10  Program income.



    (a) Program income is gross income resulting from activities 

financed with program funds. Such earnings exclude interest income but 

include income from service fees, usage or rental fees, sale of assets 

purchased with program funds, and royalties on patents and copyrights.

    (b) Interest earned on advances of program administrative funds 

shall be remitted to FNS except for interest earned on advances to 

States or instrumentalities of a State as provided by the 

Intergovernmental Cooperation Act of 1968 (Pub. L. 90-577) and advances 

to tribal organizations under the Indian Self-Determination Act 

(sections 102 through 104).

    (c) Income resulting from the sale of real and personal property 

whose acquisition cost was borne in whole or in part with Program funds 

shall be remitted to FNS or applied to the Federal share of current 

program costs in accordance with Sec. 277.13. All other sales proceeds 

will be handled in accordance with Sec. 277.13.

    (d) Unless there is a prior agreement between FNS and the State 

agency, the State agency shall have no obligation to FNS with respect to 

royalties received from copyrights or patents produced as a result of 

activities financed with program administrative funds.

    (e) Any other income earned under activities supported by program 

administrative funds may be retained by the State agency if they are 

deducted from the gross program administrative costs for the purposes of 

determining net costs and FNS's share of net cost.

    (f) State agencies shall record the receipt and expenditure of 

revenues such as taxes, special assessments, levies, fines, etc., as a 

part of program fund transactions when such revenues are specifically 

earmarked for program fund projects.



[[Page 891]]