Program Income, per A-110

___.24 Program income.

 (a) Federal awarding agencies 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)
below, program income earned during
 the project period shall be retained by
the recipient and, in accordance with
 Federal awarding agency regulations or the
terms and conditions of the award,
 shall be used in one or more of the ways
listed in the following.

 (1) Added to funds committed to
the project by the Federal
 awarding agency 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
++++

If option 1, consider "the project" the entire program, not just the
specific grant period.  This allows you to use the program income to
continue the project without federal funds.   This is one of the uses
envisioned when A-110 was drafted.   This reflects agency, recipient and
Congresses intentions.  "Grant period" was specifically not used in the
final wording.

Chuck

At 05:56 PM 2/26/2003 -0500, you wrote:
>Hi Folks,
>
>Got a quick question for the group...  we have a Bureau of Health
>Professions training grant for which any program income is to be used for
>additional costs.  What I would like to know is if the program income must
>be used during the term of the award or if we can use the program income
>to further the purposes of the award after it has expired.  (We'd like to
>hold the income we're receiving now until the grant has expired so that we
>can keep the program running later.)
>
>I think I know the answer, but thought I'd check the collective wisdom out
>there.
>
>Thanks,
>
>Craig
>
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