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~ ~ <br />1378 • <br />declared depreciation in excess of actual or straight-line depreciation). <br />To the extent that reported income/profit was inflated by receipts not <br />earned during the base period (e.g., refund of State or local income <br />taxes or income included under the tax benefit rule because a deduction <br />taken in a previous year was disallowed), the reported income/profit may <br />be adjusted by subtracting=such amount. <br />(3) Documentation. The person shall furnish the Agency proof of net <br />earnings through income tax returns, certified financial statements, or <br />other reasonable evidence wh~ch the Agency determines is satisfactory. <br />e. Optional Claim Form. A copy of form HUD-40056, "Claim for Fixed Payment <br />in Lieu of Payment .for Actual Moving and Related Expenses -- Businesses, <br />Nonprofit Organizations and Farm Operations," is contained in Appendix 17. <br />The form is optional; however, if the form is not used, equivalent <br />documentation must be included in the grantee's files. ~ <br />4-6. FIXED PAYMENT (ALTERNATIVE ALLOWANCEI FOR NONPROFIT <br />ORGANIZATION (49 CFR 24.306(dl). <br />a. Eli ibili . A displaced nonprofit: organization (defined in Paragraph 1-18) is <br />eligible to choose a fixed payment, as an alternative to a payment for actual <br />reasonable moving and related expenses under Paragraph 4-2, if it discontinues <br />operations, or it relocates but is likely to suffer a substantial loss of existing <br />patronage (measured by membership or clientele). A nonprofit organization <br />is assumed to meet this test unless the Agency demonstrates otherwise. <br />b. Determination of Payment. <br />(1) Amount of Payment. The payment shall be equal to the amount <br />deter.mined by subtracting average annual administrative expenses from <br />average annual gross revenue; however, the payment shall not exceed <br />$20,000, nor be less than $1,000. The determination of average annual <br />expenses and revenues shall be based on the two most recent fiscal <br />years. If not in operation for two full fiscal years, the payment shall be <br />based on a representative period of operation as determined by the <br />Agency. <br />9/90 4-10 <br />