Section 6: Program Income

Definition

As defined in 23 C.F.R. Part 1300 for State Highway Safety Programs and outlined in 2 C.F.R. §200.307, program income means gross income earned by the subgrantee from grant-supported activities. Such earnings may include, but are not limited to:
  • Income from service fees.
  • Sale of commodities fabricated under the grant.
  • Usage or rental fees of property acquired with grant funds.
  • Conference or training registration fees when the subgrantee is the host agency.

Exceptions

Income received from the following is exempt from the requirements set forth in this section:
  • Royalties as a result of copyrights or patents produced under the grant or other agreement (unless the grant agreement provides otherwise).
  • Rebates, credits, discounts, or refunds.
  • Special assessments, levies, or fines.

Program Income as Project Match

Program-generated income can be used as project match provided it is specifically approved in advance by TxDOT, included in the grant budget, and thoroughly documented.

Requirements

TxDOT must approve a project’s request to earn program income. There must be an indication in the Highway Safety Plan (HSP) that the specific project will generate program income. This is included in the narrative portion of the project description. There also must be a clause in the grant stating that the project will earn program income and will expend it to fulfill the objectives of the grant. Recommended language for grants generating program income is as follows:
“All program income earned during the grant period shall be retained by the subgrantee and, in accordance with the grant or other agreement, shall be added to federal funds committed to the project and be used to further eligible program objectives. Program income that remains unexpended after the grant ends shall continue to be committed to the original grant objectives.”

Disposition

Any program income earned during the grant period will be retained by the subgrantee and added to funds committed to the project and used to further eligible program objectives. This may be accomplished either by:
  • Deducting the program income from the total project costs for the purpose of determining the net costs on which the state or federal share of costs will be based, or
  • Using the program income to continue the project after the end of the project period as long as the objectives and scope of the project are continued.
Federal regulations require program income to be spent in the current fiscal year. If, for any reason, program income funds are not able to be spent in the current fiscal year, NHTSA should be notified to allow for any needed authorization.

Reporting Income Received

Subgrantees must record the receipt of revenues (program income) as a part of grant project transactions in accordance with the grant agreement. Program income should be recorded on the Report of Program Income Received form and attached with the Request for Reimbursement (RFR) through eGrants.
The
Report of Program Income Received Outlay Sheet
can be found on the eGrants Help Page.

Reporting Income Disbursed

Subgrantees must also record and report the expenditure and disbursement of program income revenues as a part of grant project transactions in accordance with the grant agreement. Program income expenses should be recorded on the Report of Program Income Distributed form and attached with the RFR through eGrants.
The
Program Income Distributed Outlay Sheet
can be found on the eGrants Help Page.