The University of Connecticut has been asked by the USDA to sign off
on a clause that states that program income related to projects
financed in whole or in part with federal funds (including from
royalties on patents or copyrights) shall be "Deducted from the total
project or program allowable cost in determining the net allowable
costs on which the Federal share of costs is based."

Although it appears as if all federal agencies, under OMB Circular
A-133 can exercise this option, I have never seen it before.  Has
anyone accepted this clause?   How does it really work; give any
income received to USDA up to the amount of project funding?

I'd appreciate hearing from anyone who has had experience with this
clause.

Thank-you.
Phyllis A. Thomas
Contracting Officer
University of Connecticut
Research Foundation
Telephone: 860-486-3337
FAX:        "    " 5381