§ 1180.9 - Limitation on amount of General Operating Support grants.

(a) General rule. IMLS makes General Operating Support grants in an amount not to exceed the lesser of:

(1) the ceiling amount established under paragraph (b);

(2)(i) 15 percent of the applicant museum's non-Federal operating income for its most recently completed fiscal year that is prior to the Federal fiscal year in which the application is filed; or

(ii) $7,500, if larger.

(b) Ceiling amount. The ceiling amount of a General Operating Support grant will be established through a notice published in the Federal Register. Beginning in FY 1993, the ceiling amount is $112,500.

(c) Statutory requirement. Under section 206(c) of the Act, IMLS may not make a grant in excess of 50 percent of the annual cost of the program for which the grant is made. If the application of the $7,500 limitation in paragraph (a)(2) of this section causes a General Operating Support grant to exceed 50 percent of the museum's annual operating income for the grant period in question, IMLS reduces the grant to that level in order to satisfy the statutory requirement.

(d) Computation of non-Federal operating income. For the purposes of this section, a museum may include in non-Federal operating income an amount reflecting the reasonable and conservative value of non-cash contributions to the museum in the applicable fiscal year.

Examples. The application of these rules is set forth in the following examples:

(1)

In fiscal year 1993, a museum with calendar year 1991 operating income of $5,000,000 applies to IMLS for a General Operating Support grant. Its application is approved. It may receive a grant of no more than $112,500, the lesser of $112,500 and $750,000 which is 15 percent of the museum's non-Federal operating income.

(2)

In fiscal year 1993, a museum with calendar 1991 operating income of $700,000 applies to IMLS for a General Operating Support grant. Its application is approved. It may receive a grant of no more than $105,000 the lesser of $112,500 and 15 percent of the operating income which is $105,000.

(3)

In fiscal year 1993, a museum with calendar 1991 operating income of $40,000 applies to IMLS for a General Operating Support grant. Its application is approved. It may receive a grant of no more than $7,500, the larger of $7,500 or 15 percent of the museum's operating income which is $6,000. The grant satisfies the requirement of paragraph (c) (and the statute) that it not exceed 50 percent of the museum's operating income for that year.