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Chapters:

3.4 Program Income

Examples of Program Income

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Royalties
Attorney’s Fees and Costs
Registration/Tuition Fees
Asset Seizures and Forfeitures
Membership Fees

Royalties

All royalties received from copyrights or other works developed under projects or from patents and inventions may be kept by the recipient, unless the terms and conditions of the project provide otherwise, or a specific agreement governing such royalties has been negotiated between the awarding agency and the recipient.  See 2 C.F.R. § 200.80.

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Attorney’s Fees and Costs

Income received after completion of the project related to a court-ordered award of attorney’s fees or costs is considered program income to the extent that it represents a reimbursement for attorney’s fees and costs originally paid under the award. This type of program income is subject to the restrictions stated in the award. See 2 C.F.R. § 200.80.

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information iconOVW Specific Tip

"In the following circumstances, OVW recipients may accept attorney’s fees as program income under 2 CFR 200.307(e)(2) and add them to the federal award: (1) Fees that are issued by a judge in an OVW-supported case without the request of the OVW- funded attorney. (2) Fees that are sought by the OVW-funded attorney for the purpose of deterring repeated or abusive filings by the offender of the domestic violence, dating violence, sexual assault, or stalking.

In any other circumstances, recipients must seek approval from their OVW program manager via a Grant Adjustment Notice (GAN). Any program income added to the federal award must be used to support activities that were approved in the budget and follow the conditions of the OVW award. Any program income added to the federal award must also be approved via budget modification GAN by the end of the project period. If a recipient receives fees that do not fall within one of the circumstances above or does not receive prior approval via GAN, then the resulting program income must be deducted from the OVW award pursuant to 2 CFR 200.307(e)(1)."

Registration/Tuition Fees

These types of program income must be treated in accordance with the instructions stated in the project’s terms and conditions.  See 2 C.F.R. § 200.80.

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Asset Seizures and Forfeitures

Program income from asset seizures and forfeitures is considered earned when the property has been adjudicated to the benefit of the plaintiff (i.e., law enforcement entity), and the seizure or forfeiture is directly generated or conducted as a result of the Federal award during the award period. Income received from the sale of seized and forfeited assets (personal or real property) or from seized and forfeited money must follow the “Addition Method” of handling program income unless an alternate method is designated in the recipient’s award document. The following policies apply to program income from asset seizures and forfeitures:

  • Subrecipient program income, with the approval of the recipient, may be retained by the entity organization earning the program income or used by the recipient for any purpose that furthers the objectives of the legislation under which the award was made.
  • States or local units of government may use program income funds from seized and forfeiture assets as match when assets are given a ruling by a State court, in accordance with the State law. In addition, State and local units of government may use cash received under the equitable sharing program for the non-Federal portion (match) of program costs, as provided for in the guidelines established by the DOJ Asset Forfeiture Office, when the assets are judged by a Federal court organization.

information iconOJP Specific Tip

DNA Testing Fees/DNA Backlog Reduction Program

NIJ grantees may not use DNA Backlog Reduction Program grant funds to generate revenue for labs or parent agencies. If labs or parent agencies receive any revenue for DNA testing and the agency has NIJ DNA Backlog Reduction program awards, a prorated amount of program income must be placed back into the award program.

Instructions on how to compute and report on this type of program income are available online at:

https://ojp.gov/financialguide/pdfs/DNA_BacklogReductionGuide.pdf [PDF -35Kb]

An example of how to calculate program income from revenues generated is available online at:
https://ojp.gov/financialguide/pdfs/ProgramIncomeCalculator.xlsx [Excel - 14Kb]

information iconOJP Specific Tip

Interest Earned on JAG and JABG Funds

Unlike most DOJ funding, JAG and JABG income earned from advances of federal funds is considered program income.  See 42 U.S.C. § 3757. Interest income earned should only be spent on allowable purpose areas under these programs. Recipients are required to use all funds within the fixed expenditure period. No extension to the project period will be approved. JAG and JABG recipients are not required to spend program income before spending Federal funds.

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Membership Fees

If an organization’s only source of income is Federal award funds, then when it receives membership fees, those fees will generally be considered program income.

  • When an organization receives non-member income and uses that income to provide services to its members in addition to the federally funded services, then membership income may be considered program income. The amount of membership income considered program income will be in proportion to the amount of Federal and non-Federal funds that the organization receives.
  • An organization need not report its membership fees as program income if the fees were received before the organization began to receive Federal award funds, or if they are used to provide member services that are separate and distinct from grant-funded services.

information iconFinancial Management Tip

Fines as a result of law enforcement activities are not considered program income.

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