[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3015.41]



[Page 110-111]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3015_UNIFORM FEDERAL ASSISTANCE REGULATIONS--Table of Contents

 

                     Subpart F_Grant Related Income

 

Sec. 3015.41  General program income.



    (a) Applicability. This section applies to ``general program 

income'' as defined in Appendix A.

    (b) Use. (1) General program income shall be retained by the 

recipient and used in accordance with one or a combination of the 

alternatives in paragraphs (c), (d), and (e) of this section, as 

follows: The alternative in paragraph (c) may always be used by 

recipients and must be used if neither of the other two alternatives is 

permitted by the provisions of the grant award. The alternatives in 

paragraph (d) or (e) of this section may be used only if expressly 

permitted by the provisions of



[[Page 111]]



the grant award. In specifying alternatives that may be used, the 

provisions of the grant award may distinguish between income earned by 

the recipient and income earned by subrecipients and between the 

sources, kinds, or amounts of income.

    (2) The provisions of a subgrant award may restrict the use of 

general program income earned by the subrecipient to only one or some of 

the alternatives permitted by the provisions of the grant, but the 

alternative in paragraph (c) of this section shall always be permitted.

    (c) Deduction alternative. (1) Under this alternative, the income is 

used for allowable costs of the project or program. If there is a cost-

sharing or matching requirement, costs supported by the income may not 

count toward satisfying that requirement. Therefore, the maximum 

percentage of Federal cost-sharing is applied to the net amount 

determined by deducting the income from total allowable costs and third 

party in-kind contributions. The income shall be used for current costs 

unless the awarding agency authorizes the income to be used in a later 

period.

    (2) To illustrate this alternative, assume a project in which the 

recipient incurs $100,000 of allowable costs and receives no third party 

in-kind contributions. If the recipient earns $10,000 in general program 

income and this alternative applies, that $10,000 must be deducted from 

the $100,000 before applying the maximum percentage of Federal cost-

sharing. If that percentage is 90 percent, the most that could be paid 

to the recipient would therefore be $81,000 (90 percent times $90,000).

    (d) Cost-sharing or matching alternative. (1) Under this 

alternative, the income is used for allowable costs of the project or 

program but, in this case, the costs supported by the income may count 

toward satisfying a cost-sharing or matching requirement. Therefore, the 

maximum percentage of Federal cost-sharing is applied to total allowable 

costs and third party in-kind contributions. The income shall be used 

for current costs unless the awarding agency authorizes its use in a 

later period.

    (2) To illustrate this alternative, assume the same situation as in 

paragraph (c)(2) of this section. Under this alternative, the 90 percent 

maximum percentage of Federal cost-sharing would be applied to the full 

$100,000, and $90,000 could therefore be paid to the recipient.

    (e) Additional costs alternative. Under this alternative, the income 

is used for costs which are in addition to the allowable costs of the 

project or program but which nevertheless further the objectives of the 

Federal statute under which the grant was made. Provided that the costs 

supported by the income further the broad objectives of that statute, 

they need not be of a kind that would be permissible as charges to 

Federal funds. Examples of purposes for which the income may be used 

are:

    (1) Expanding the project or program.

    (2) Continuing the project or program after grant or subgrant 

support ends.

    (3) Supporting other projects or programs that further the broad 

objectives of the statute.

    (4) Obtaining equipment or other assets needed for the project or 

program or for other activities that further the statute's objectives.