(a) Definition of program income. (1) Program income means income
received by the recipient or subrecipient that is directly generated by
a grant or subgrant supported activity, or earned only as a result of
the grant or subgrant. Program income includes:
(i) Income from fees for services performed and from conferences;
(ii) Income from the use or rental of real or personal property
acquired with grant or subgrant funds;
(iii) Income from the sale of commodities or items fabricated under
a grant or subgrant;
(iv) Revenues earned by a governmental or non-profit service
provider under either a fixed-price or reimbursable award that are in
excess of the actual costs incurred in providing the services; and
(v) Interest income earned on advances of JTPA funds.
(2) Program income does not include:
(i) Rebates, credits, discounts, refunds, etc., or interest earned
on any of them, which shall be credited in accordance with
Sec. 627.435(d), Cost principles and allowable costs;
(ii) Taxes, special assessments, levies, fines, and other such
governmental revenues raised by a recipient or subrecipient; or
(iii) Income from royalties and license fees for copyrighted
material, patents, patent applications, trademarks, and inventions
developed by a recipient or subrecipient.
(3) Property. Proceeds from the sale of property shall be handled in
accordance with the requirements of Sec. 627.465 of this part, Property
management standards.
(b) Cost of generating program income. Costs incidental to the
generation of program income may be deducted, if not already charged to
the grant, from gross income to determine program income.
(c) Use of program income. (1)(i) A recipient or subrecipient may
retain any program income earned by the recipient or subrecipient only
if such income is added to the funds committed to the particular JTPA
grant or subgrant and title under which it was earned and such income is
used for that title's purposes and under the terms and conditions
applicable to the use of the grant funds.
(ii) A State may use interest it earns on JTPA funds, deposited by
the United States to the State's account, to satisfy the requirement at
31 U.S.C. 6503(c) that the State pay interest on such deposits.
(iii) The classification of costs in Secs. 627.440 and 631.13 shall
apply to the use of program income.
(iv) The administrative cost limitation in Secs. 627.445 and 631.14
shall apply to the use of program income, except that program income
used in accordance with paragraph (c)(1)(ii) of this section shall be
exempt from the administrative cost limitations.
(2) Program income generated under title II may also be used to
satisfy the matching requirement of section 123(b) of the Act.
(3) Program income shall be used prior to the submission of the
final report for the funding period of the program year of funds to
which the earnings are attributable.
(4) If the subrecipient that earned program income cannot use such
income for JTPA purposes, the recipient may permit another entity to use
the program income for JTPA purposes.
(5) Program income not used in accordance with the requirements of
this section shall be remitted to the Department of Labor.
(d) Program and other income after the funding period. Rental income
and user fees on real and personal property acquired with JTPA funds
shall continue to be JTPA program income in subsequent funding periods.
There are no Federal requirements governing the disposition of all other
income that is earned after the end of the funding period.
