Common use of Program Income and Other Third Party Revenue Clause in Contracts

Program Income and Other Third Party Revenue. 3.1 Program income is defined as all revenue directly generated by a contract-supported activity or earned as a result of the contract-supported activity. Payments from families for ECI services are one source of program income. Collections from public and private insurance are considered other third party revenue. Grantee must comply with the requirements in federal regulations and circulars, and Uniform Grant Management Standards (“UGMS”) concerning program income and other third party revenue, locally collected federal, state, local, and private funds, and payor of last resort. 3.2 All program income and other third party revenue collected by Grantee must be reported and used for eligible ECI program expenditures. 3.3 Program income and other third party revenue claims, collections, uncollected amounts, and prior year collections must be reported cumulatively by source on quarterly and annual financial reports. 3.4 Interest earned on program income and other third party revenue will be used to supplement the funds already committed to the program. 3.5 Program income and other third-party revenue as defined in 2 CFR §200.307 and UGMS, and earned by Grantee as a result of ECI program services provided in a fiscal year and received by October 31st must be used for eligible program expenditures incurred in the fiscal year that is covered in the final financial status report. A fiscal year as used in this Contract means the time period between September 1st and August 31st. 3.6 In-kind and cash contributions, foundational grants, and other funds collected locally, that are not considered program income or other third-party revenue, as defined in 2 CFR §200.307 and UGMS, and collected in the current fiscal year for use in the ECI program, except as prohibited by requirements established by the funds: 3.6.1 May be applied to the prior fiscal year; 3.6.2 May be expended in the current fiscal year; or 3.6.3 May be expended the next fiscal year. 3.7 Program Income and other third party revenue earned by Grantee as a result of services provided in the current Contract period must be placed in an account designated for ECI program use. 3.8 HHSC may base future funding levels, in part, upon Xxxxxxx’s proficiency in identifying, billing, collecting and reporting program income and other third party revenue, and in utilizing it for the purposes and conditions of this Contract.