CFR > Title 20 - Employees' Benefits > CHAPTER V—EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR > PART 627—GENERAL PROVISIONS GOVERNING PROGRAMS UNDER TITLES I, II, AND III OF THE ACT > SUBPART D—Administrative Standards (§627.400 to §627.495) > 627.450—Program income.

627.450—Program income.

(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 § 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 § 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) 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 §§ 627.440 and 631.13 shall apply to the use of program income.
(iv) The administrative cost limitation in §§ 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.