Program Income earned under WSFR

Program income earned under WSFR must meet the requirements of 2 CFR 200, as well as additional requirements per 50 CFR 80. License revenue restrictions may also need to be addressed by State fish and wildlife agencies.

This information applies to:

Wildlife Restoration and Sport Fish Restoration Programs

Contents

Overview

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Authorities

50 CFR 80 Administrative Requirements, Pittman-Robertson Wildlife Restoration and Dingell-Johnson Sport Fish Restoration Acts

Subpart I—Program Income

§ 80.120 What is program income?

(a) Program income is gross income received by the recipient or subrecipient that is directly generated by an award activity or earned as a result of the Federal award during the period of performance (see 2 CFR 200.1 and 200.307)

(b) Program income includes revenue from:

(1) Services performed under an award.

(2) Use or rental of real or personal property acquired, constructed, or managed with award funds.

(3) Payments by concessioners or contractors under an arrangement with the agency or subrecipient to provide a service in support of award objectives on real property acquired, constructed, or managed with award funds.

(4) Sale of items produced under an award.

(5) Fees collected by the agency for delivering or providing hunter education, aquatic education, or other courses.

(6) Royalties and license fees for copyrighted material, patents, and inventions developed as a result of an award.

(7) Sale of a product of mining, drilling, forestry, or agriculture during the period of performance that supports the:

(i) Mining, drilling, forestry, or agriculture; or

(ii) Acquisition of the land on which these activities occurred.

(8) Barter transactions when the value of goods or services received exceeds the value of goods or services the agency provided.

(c) Program income does not include any of the following:

(1) Interest on award funds, rebates, credits, discounts, or refunds.

(2) Sales receipts retained by concessioners or contractors under an arrangement with the agency to provide a service in support of award objectives on real property acquired, constructed, or managed with award funds.

(3) Cash received by the agency or by volunteer instructors to cover incidental costs of hunter education, aquatic education, or other classes. Incidental costs are small amounts and typically not essential to the training delivery. Materials purchased at cost by the student, separate from course fees, are incidental costs.

(4) Proceeds from the sale of real property, equipment, or supplies.

§ 80.122 May an agency deduct the costs of generating program income from gross income?

(a) A State fish and wildlife agency may deduct the costs of generating program income from gross income when the agency calculates program income if the agency does not:

(1) Pay these costs with:

(i) Federal or cost-sharing funds under a Federal award; or

(ii) Federal funds unrelated to an award.

(2) Cover these costs by accepting:

(i) Cost-sharing contributions for a Federal award; or

(ii) Donations of services, personal property, or real property unrelated to a Federal award.

(b) Examples of costs of generating program income that may qualify for deduction from gross income if they are consistent with the regulations in paragraph (a) of this section are:

(1) The cost of estimating the amount of commercially acceptable timber in a forest and marking it for harvest if the commercial harvest is incidental to a grant-funded habitat-management or facilities-construction project.

(2) The cost of publishing research results as a pamphlet or book for sale if the publication is incidental to a grant-funded research project.

§ 80.124 How may a State fish and wildlife agency use unexpended program income?

A State fish and wildlife agency must spend program income before requesting additional payments under an award. If the agency has unexpended program income on its final Federal financial report, it may use the income under a subsequent award for any activity eligible for funding in the grant program that generated the program income.

§ 80.125 How must a State fish and wildlife agency treat income that it earns after the period of performance?

(a) The State fish and wildlife agency must treat income that it earns after the period of performance as either:

(1) License revenue for the administration of the agency; or

(2) Additional funding for purposes consistent with the award or the program.

(b) The agency must indicate its choice of one of the alternatives set forth in paragraph (a) of this section in the project statement that the agency submits with each application for Federal assistance. If the agency does not record its choice in the project statement, the agency must treat the income earned after the period of performance as license revenue.

§ 80.126 How must a State fish and wildlife agency treat income earned by a subrecipient after the period of performance?

(a) The State fish and wildlife agency must treat income earned by a subrecipient after the period of performance as:

(1) License revenue for the administration of the agency;

(2) Additional funding for purposes consistent with the award or the program; or

(3) Income subject only to the terms of the subaward agreement and any subsequent contractual agreements between the agency and the subrecipient.

(b) The agency must indicate its choice of one of the above alternatives in the project statement that the agency submits with each application for Federal assistance. If the agency does not indicate its choice in the project statement, the subrecipient does not have to account for any income earned after the period of performance unless required to do so in the subaward agreement or in any subsequent contractual agreement.

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