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AC 150/5100-10A 4/13/76 <br />(2) All other program income. FAR 152.71(a) states that all other <br />program income (gross income) earned by grant -supported <br />activities during the grant period shall be retained by the spon- <br />sor and, in accordance with the grant agreement,(a) added to funds <br />committed to the project by the FAA and the sponsor and used to <br />further eligible program objectives, or (b) deducted from the <br />total project cost for the purpose of determining the net costs <br />on which the Federal share of costs will be based. <br />d. Interpretation. This standard relates to the adequacy of the accounting <br />system for accumulating and reporting program income and costs on a <br />project basis. Separate records relating to project costs and program <br />income that a sponsor is required to establish and maintain are <br />described in paragraphs 21e, 21f, and 21g. However, any accounting <br />and reporting system that satisfies the standard is acceptable. <br />e. Project Cost Records for ADAP Sponsors. Each sponsor shall establish <br />and maintain project cost records in the classifications listed below. <br />Subsidiary records may be maintained as needed. <br />Page 8 <br />(1) Administrative expense includes such things as advertising, <br />materials and supplies, certain legal fees, travel, and other <br />administrative expenses. Such items are discussed in greater <br />detail in Chapter 6. <br />(2) Preliminary expense includes amounts pertaining to the work of <br />locating and designing, making surveys and maps, sinking test <br />holes, and all other work required prior to actual construction. <br />(3) <br />Land, structures, and right-of-ways. This category includes all <br />amounts directly associated with the acquisition of land, exist- <br />ing structures, and related right-of-ways, and incidental costs. <br />See Chapter 3. <br />(4) Architectural engineering basic fees. Self-explanatory. <br />(5) <br />Other architectural engineering fees. This account should not <br />include amounts recorded in paragraph 21e(4) above. See Chapter 5. <br />(6) Project inspection fees include supervision, inspection, and audit <br />fees of construction and related programs. <br />(7) Land development costs represent all amounts associated with the <br />development of land where the primary purpose of the grant is land <br />improvement. The amount pertaining to land development normally <br />associated with major construction should be excluded from this <br />category and recorded under paragraph 21e(11). <br />Chap 2 <br />Par 21 <br />