Program Income
Program income is considered received in the FFY in which the grantee receives the funds 34 CFR § 361.63 and 2 CFR § 200.1. Therefore, any program income that the grantee receives is only considered received in the FFY of appropriation. For reporting purposes, that means program income will never increase after the 4th quarter. Any program income received during the subsequent FFY, is considered earned in the next FFY’s grant award, regardless of the basis of accounting, or if carryover requirements are met. Program income from Social Security Administration (SSA) reimbursements transferred to other eligible programs is restricted to the grant award year that corresponds to the FFY of appropriation in which it was received in the VR program.
Social Security's Vocational Rehabilitation CR program, authorized in 1981, is only available to State VR agencies. The two purposes of the CR program are:
- To make State VR services more readily available to Social Security beneficiaries with disabilities; and
- To generate savings to the Social Security Trust Fund, for Social Security Disability Insurance (SSDI) beneficiaries and to the General Revenue Fund, for Supplemental Security Income (SSI) recipients.
Under the CR program, the Social Security Administration pays State VR agencies compensation in the form of reimbursement when beneficiaries served by State VR agencies enter the workforce and achieve nine continuous months of earnings. The earnings must be at or above the Substantial Gainful Activity (SGA) level, called a continuous period of SGA. When the beneficiary achieves this benchmark, the State VR agency completes the Vocational Rehabilitation Provider Claim form (SSA-199) and submits it to Social Security with supporting documentation. This documentation includes a breakdown of the direct costs associated with the case.
The payment period starts with the beneficiary’s date of onset for SSDI beneficiaries or the date of entitlement for SSI recipients. The payment period ends with the ninth month of SGA level earnings, or the month before the last month of SSDI entitlement or SSI eligibility, whichever comes first. CR claims must be filed timely to qualify for payment. A claim is considered timely if filed with Social Security within 12 months of the last day of the ninth month of SGA level earnings. If the claim is approved, the reimbursement constitutes a lump sum payment to the State VR agency. The compensation received is considered program income.
A VR grantee may choose to transfer SSA payments received by the VR program to carry out programs under part B of title I of the Act (client assistance), title VI of the Act (supported employment), and title VII of the Act (independent living) 34 C.F.R. § 361.63(c)(2). This authority is unique only to program income received from SSA. There is no legal authority for the VR agency to transfer other forms of program income earned under the VR program to another program for that program’s use. Each program receiving SSA payments for its use must report the funds as program income received for that program.
Refunds and rebates are not program income 2 CFR § 200.1
In accordance with 34 CFR § 361.63(c)(3)(ii), to the extent available, the non-Federal entity must disburse funds available from program income (including repayments to a revolving fund), contract settlements, refunds and rebates, audit recoveries, and interest earned on such funds before requesting additional cash payments. Program income received in the VR program and transferred to an allowable program is considered disbursed for purposes of the VR program and this requirement.
Resources
Resource Cards (filtered)
SSA VR Cost Reimbursement Overview Presentation
RSA-2 Program Income GAN Attachment
Vocational Rehabilitation Provider Handbook
