(a) A State fish and wildlife agency may choose any of the three methods listed in paragraph (b) of this section for applying program income to Federal and non-Federal outlays. The agency may also use a combination of these methods. The method or methods that the agency chooses will apply to the program income that it earns during the grant period and to the program income that any subgrantee earns during the grant period. The agency must indicate the method that it wants to use in the project statement that it submits with each application for Federal assistance.
(b) The three methods for applying program income to Federal and non-Federal outlays are in the following table: ------------------------------------------------------------------------
(1) Deduction................ (i) The agency must deduct the program
(i) The agency must deduct the program
income from total allowable costs to
determine the net allowable costs.
(ii) The agency must use program income
for current costs under the grant unless
the Regional Director authorizes
otherwise.
(iii) If the agency does not indicate the
method that it wants to use in the
project statement, then it must use the
(i) The agency may add the program income
to the Federal and matching funds under
the grant.
(ii) The agency must use the program
income for the purposes of the grant and
(i) The agency must request the Regional
Director's approval in the project
statement.
(ii) The agency must explain in the
project statement how the agency
proposes to use the program income, the
expected results, and why it is
essential to use program income as
match.
(iii) The Regional Director may approve
the use of the matching method if the
requirements of paragraph (c) of this
section are met.------------------------------------------------------------------------
(c) The Regional Director may approve the use of the matching method if the proposed use of the program income would:
(1) Be consistent with the intent of the applicable Act or Acts; and
(2) Result in at least one of the following:
(i) The agency substitutes program income for at least some of the match that it would otherwise have to provide, and then uses this saved match for other fish or wildlife-related projects;
(ii) The agency substitutes program income for at least some of the apportioned Federal funds, and then uses the saved Federal funds for additional eligible activities under the program; or
(iii) A net benefit to the program.