How may an agency use program income?

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§ 80.123 How may an agency use program income?

(a) A State fish and wildlife agency may choose any of the three methods listed in paragraph (b) of this section for applying program income to Federal and non-Federal outlays. The agency may also use a combination of these methods. The method or methods that the agency chooses will apply to the program income that it earns during the grant period and to the program income that any subgrantee earns during the grant period. The agency must indicate the method or methods that it wants to use in the project statement that it submits with each application for Federal assistance.

(b) Program income must be spent within the grant period and program in which it is earned and before requesting additional Federal funds for the activity for which the program income is earned.

(c) The three methods for applying program income to Federal and non-Federal outlays are in table 1 to § 80.123(c):

Expand Table

Table 1 to § 80.123(c)

Method Requirements for using method
(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.

[84 FR 44787, Aug. 27, 2019]


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