[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR74.24]



[Page 111-112]

 

                           TITLE 34--EDUCATION

 

PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 

HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table 

of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  74.24  Program income.



    (a) The Secretary applies the standards contained 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 must be retained by the 

recipient and, in accordance with ED regulations or the terms and 

conditions of the award,



[[Page 112]]



must be used in one or more of the following ways:

    (1) Added to funds committed to the project by the Secretary 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 the Secretary 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 the Secretary does not specify in program 

regulations or the terms and conditions of the award how program income 

is to be used, paragraph (b)(3) of this section applies automatically to 

all projects or programs except research. For awards that support 

research, paragraph (b)(1) of this section applies automatically unless 

the Secretary indicates in the terms and conditions another alternative 

on the award or the recipient is subject to special award conditions, as 

indicated in Sec.  74.14.

    (e) Unless ED regulations or the terms and conditions of the award 

provide otherwise, recipients have no obligation to the Federal 

Government regarding program income earned after the end of the project 

period.

    (f) If authorized by ED 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.  74.30 through 74.37).

    (h) Unless ED regulations or the terms and condition of the award 

provide otherwise, recipients 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. However, Patent and 

Trademark Amendments (35 U.S.C. 18) apply to inventions made under an 

experimental, developmental, or research award.



(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)