Code of Federal Regulations Title 50. Wildlife and Fisheries § 50.80.123 How may an agency use program income?

(1) Deduction

(i) The agency must deduct the program income from total allowable costs to determine the net allowable costs.

(ii) The agency must use program income for current costs under the grant unless the Regional Director authorizes otherwise.

(iii) If the agency does not indicate the method that it wants to use in the project statement, then it must use the deduction method.

(2) Addition

(i) The agency must request the Regional Director's approval in the project statement.

(ii) The agency may add the program income to the Federal and non-Federal funds under the grant.

(iii) The agency must use the program income for the purposes of the grant and under the terms of the grant.

(3) Cost sharing or matching

(i) The agency must request the Regional Director's approval in the project statement.

(ii) The agency must explain in the project statement the expected program income, how the agency proposes to use the program income to satisfy matching requirements, how the agency will use program income earned in excess of required match, and the primary conservation or recreation objective sufficient to show program income as a secondary benefit.

(iii) If neither the agency's project statement nor the award indicates how program income in excess of matching requirements will be applied, the agency must use the deduction method.