(a) Income from the following sources offsets allowable costs:

1. (1) Medical assistance reimbursement income.
2. (2) Client pay or assessed liability that is deducted from client billings.
3. (3) Gifts and donations restricted by the donor for allowable costs.
4. (4) Refunds and cash discounts.

5. (5) Grants designated for allowable costs.

   1. (i) If the facility serves more than 50% of clients age 21 or younger, the provider shall act as sponsoring agency for participation of those clients in the residential component of the National School Lunch Program.
   2. (ii) If clients of the facility are eligible for participation in the Food Stamp Program, it is the provider’s responsibility to contact the local county assistance office and utilize food stamps accordingly.
6. (6) Income from space rental, vending machines and similar items.
7. (7) Interest earned on items specified in paragraphs (1)—(6).

(b) Income from the following sources does not offset allowable costs:

1. (1) Gifts, donations and contributions that are not restricted by the donor for allowable costs.
2. (2) Endowments and bequests not restricted for allowable costs.
3. (3) Fund raising efforts not restricted for allowable costs.
4. (4) Interest earned on items specified in paragraphs (1)—(3).