[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR246.15]

[Page 377]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 246_SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND 
 
                    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 (applied in accordance with the addition method described in 
Sec.  3016.25(g)(2) of this title) for costs incurred in the current 
fiscal year and, with the approval of FNS, for costs incurred in 
previous years or subsequent fiscal years. 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; 71 FR 56731, Sept. 27, 2006]