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42 <br /> • The use of rebates, credits, discounts, and interest earned on any of them. <br /> • Governmental revenues, such as taxes, special assessments, levies, or fines. <br /> • Proceeds from the sale of real property, equipment, or supplies. <br /> IV. USE OF PROGRAM INCOME <br /> 2 C.F.R. § 200.307(e) sets forth three methods for how program income may be used: the <br /> deduction method, the addition method, and the cost sharing/matching method. Treasury has <br /> indicated that program income earned pursuant to expenditures of CSLFRF shall be accounted <br /> for pursuant to the addition method 2 C.F.R. § 200.307(e). Orange County agrees to add <br /> program income to the total award amount and expend it on eligible projects during the period <br /> of performance. <br /> V. REPAYMENT OF PRINCIPAL AND INTEREST ON LOANS MADE WITH <br /> ARP/CSLFRF FUNDS <br /> Treasury has imposed different requirements on loans of CSLFRF funds under the revenue loss <br /> category and loans of CSLFRF under other expenditure categories. Orange County agrees to <br /> appropriately account for the repayment of loaned CSLFRF funds according to the ARP/CSLFRF <br /> award terms, as follows: <br /> (1) Loans made under the revenue loss eligibility category. Loans of CSLFRF funds under <br /> the revenue loss eligibility category may be considered to be expended at the point of <br /> disbursement to the borrower, and repayments on such loans are not subject to <br /> program income requirements. Accordingly, Orange County shall not separately account <br /> for the repayment of principal and interest on loans of CSLFRF under the revenue loss <br /> eligibility category. <br /> (2) Non-revenue loss loans (i.e., loans made under the public health emergency/negative <br /> economic impacts category and/or the necessary water, sewer, and broadband <br /> infrastructure category) <br /> a. Loans that mature or are forgiven on or before December 31, 2026: Orange <br /> County shall add the repayment of principal and interest (program income)to the <br /> ARP/CSLFRF award pursuant to 2 C.F.R. 200.317(e)(2). When the loan is made, <br /> Orange County shall report the principal of the loan as an expense. Orange <br /> County shall expend the repayment of principal only on eligible uses and is <br /> subject to restrictions on the timing of the use of ARP/CSLFRF funds pursuant to <br /> the ARP/CSLFRF award. <br /> 3 <br />