| (a) Program income is gross income received by the
Subrecipient or its Affiliates directly generated by a grant supported
activity, or earned only as a result of the grant agreement during
the grant period.
(b) Program income received and expended during the
Contract Term will count toward meeting the Subrecipient's Matching
requirements, per 24 CFR §576.201(f), provided the costs are
eligible costs that supplement the program.
(c) Security and utility deposits paid on behalf of
a Program Participant should be treated as a grant to the Program
Participant. The deposit must remain with the Program Participant,
and if returned, is to be returned only to the Program Participant.
If the landlord or the utility service provider requires that the
deposit be returned to the Subrecipient, Affiliate, Subcontractor,
or Subgrantee, the deposit is program income, and must be treated
as described in this subsection.
(d) In accounting for program income, the Subrecipient
must accurately reflect the receipt of such funds separate from the
receipt of federal funds and Subrecipient funds.
(e) Program income that is received after the end of
the Contract Term, or not expended within the Contract Term, along
with program income received two years following the end of the Contract
Term must be returned to the Department within 10 calendar days of
receipt. Income directly generated by a grant-supported activity after
the two year period is no longer program income and may be retained
by the Subrecipient.
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