PAP.11.2.140 Program Income

(a) Program income is funds generated from specific activities approved by the funding agency and includes interest earned on loans made to program recipients with award funds.

(b) Except as otherwise provided in statutes, regulations, or the terms and conditions of awards, program income does NOT include:

(1) Interest earned on advances of award funds and

(2) Interest earned on rebates, credits, or discounts.

(c) Taxes, special assessments, levies, fines, and other such revenues raised by the Tribe are NOT program income unless the revenues are specifically identified in the award or awarding agency regulations as program income.

(d) The Tribe shall copy the Accounting Department to record the receipt and expenditures of revenues (taxes, special assessments, levies, fines, and other such revenues raised by the Tribe, etc.) as part of program income when such revenues are earmarked for the program.

(e) Proceeds from the sale of real property or equipment are NOT program income. Such proceeds will be handled in accordance with the requirements:

(1) Subpart D, titled "Post Federal Award Requirements Standards for Financial and Program Management" Property standards are as followed:

(A) Real property as defined in 2 CFR §200.311(a), titled "Real property"

(B) Equipment as defined in 2 CFR §200.3131(a) titled "Equipment" and as §200.313

(2) As specifically identified in statutes, regulations, or the terms and conditions of the award.

(f) If the awarding agency does not specify in its regulations or the terms and conditions of the award, or give prior approval for how program income is to be used pursuant to 2 CFR §200.307(e)(l), titled ''Program income" must apply:

(1) Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the awarding agency authorizes otherwise. Program income, which the Tribe did not anticipate at the time of the award, must be used to reduce the award and Tribal contributions rather than to increase the funds committed to the project.

(2) With prior approval of the awarding agency, program income may be added to the award by the awarding agency and the Tribe. The program income must be used for the purposes and under the conditions of the award.

(3) With prior approval of the awarding agency, program income may be used to meet the cost sharing or matching requirement of the award. The amount of the award remains the same.

(g) The Tribe will follow a formal approval process for activities generating program income.