Income Overview and Reporting Procedures

Overview

Program Income is the gross revenue generated as a direct result of the Federal award and that is in addition to the Federal funds provided by the State through its competitive application process. Program income must be deducted from total allowable costs to determine the net allowable costs.

Example of Program Income

  • Grantee A would like to sell popcorn at their afterschool events and re-invest the generated revenue into its 21CCLC program. If 21CCLC program funds were used to purchase the popcorn and other materials, then the revenue generated would be considered program income.

A Subrecipient may only generate program income if approved by HIDOE in their subgrant application.

Criteria for allowing Subrecipients to generate program income

HIDOE may allow Subrecipients to generate program income if the subgrant application is determined to have met the following criteria:

  1. Programs proposing fees must offer a sliding scale of fees and scholarships for those who cannot afford to participate.
  2. If charging fees of families, the subrecipient must provide a narrative in their proposal that explains the fee structure, its administration and management.
  3. 21CCLC program income refers to participating in a 21CCLC program including, but not limited to, registration fees, tuition, transportation, admission, and penalties such as late pick-up fees.
  4. Program income must be used for the purposes and under the conditions of the awarded grant (expenditures allowable under the grant), no exceptions.
  5. The Subrecipient must use the program income for program related activities during the program year or reduce the grant award.
  6. Approval or disapproval to generate program income will be made in writing from HIDOE to subrecipient.
  7. Subrecipients approved by HIDOE to generate program income must report all program income and expenditures to HIDOE (see reporting requirements below).

Note: HIDOE strongly discourages charging fees to low-income children and their families.

Program Income Reporting Procedures

Any Subrecipient approved to collect program income must report program income collection and expenditures via the Biannual Income and Expenditure Report to HIDOE ensuring the following:

  1. Program income must be coded to a separate account by the fiscal agent and a clear audit trail must exist from the beginning of each program year to determine separation of 21CCLC federal funds from 21CCLC program income.
  2. Program income collected must be spent within the program year (e.g. SY 2019-20 = July 1, 2019 through June 30, 2020).
  3. Subrecipient program income accounts must begin and end the program year with zero funds (carryover of program income is not allowable).
  4. If program income funds are not used within the program year, the grant award will be reduced the following year or returned to HIDOE in close out procedures.