[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR32.24]



[Page 158]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 32_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  32.24  Program income.



    (a) DoD Components shall apply the standards set forth in this 

section in requiring recipient organizations to account for program 

income related to projects financed in whole or in part with Federal 

funds.

    (b) Except as provided 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 by the DoD Component and 

recipient and used to further eligible project or program objectives.

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

    (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 a program regulation or award authorizes the disposition of 

program income as described in paragraphs (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 program regulations or the terms and 

conditions of the award do not specify 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 research, 

paragraph (b)(1) of this section shall apply automatically unless the 

terms and conditions specify another alternative or the recipient is 

subject to special award conditions, as indicated in Sec.  32.14.

    (e) Unless program regulations or 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) If authorized by program regulations or the terms and conditions 

of the award, 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.  32.30 through 32.37).

    (h) Unless program regulations or the terms and condition of the 

award provide otherwise, recipients shall have no obligation to the 

Federal Government with respect to program income earned from license 

fees and royalties for copyrighted material, patents, patent 

applications, trademarks, and inventions produced under an award. Note 

that the Patent and Trademark Amendments (35 U.S.C. chapter 18) apply to 

inventions made under an experimental, developmental, or research award.