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Scope

This policy provides guidance concerning recording and processing Program Income.

Reason for Policy

The purpose of this policy is to outline proper recording, reporting, spending and management of Program Income to ensure compliance with federal guidelines.

Policy Statement

The ÃÈÃÃÉçÇø receives income from entities other than the sponsor on certain Awards resulting from work performed on that sponsored Award.  This income constitutes Program Income. 

Accounting for Program Income may use one of three methods depending on the guidelines pertaining to the Award (addition, deduction, or cost sharing).

• Addition:  Program Income funds may be added to the federal award, and must be used for the to accomplish the award objectives.
• Deduction: Total funds available to the project remain the same and the funds generated through Program Income are used to reduce the financial commitment of the sponsor.
• Cost Sharing: With prior approval, Program Income may be used to meet the cost sharing or matching requirement of the project.

Unless otherwise specified by the Federal Awarding agency, the "addition" method must be applied.  If there is any Program Income in excess of amounts specified, the excess must be deducted from the expenditures.

Unless specifically outlined in the contract or grant, the Awardee shall have no obligation to sponsoring agencies for Program Income received after the end of the period of performance for the Award.

Program Income Setup
Information on the type of Program Income and the proposed treatment of the income is submitted to the campus SPO along with the proposal. The request for the Program Income fund and project should be processed along with the request to establish the Award. The review, approval and documentation authorize the Program Income and its treatment.  In those instances where the need for a Program Income ChartField string is identified after the project has begun, the SPO Post-Award Manager may create the Program Income ChartField string.  If Program Income is anticipated, a separate ChartField string and budget for Program Income should be requested.

Expending and Monitoring
Department administrators/fiscal officers must monitor expenses in the Program Income project to ensure expenses charged to the Program Income ChartField string must be allowable, allocable, and reasonable in relation to the activity supported by the sponsor. Unless otherwise specified in the Award document, restrictions on expenditures of Program Income are identical to restrictions on expenditures for the related project.  The PI responsible for the sponsored project that produced the Program Income is responsible for ensuring that Program Income funds are used for appropriate project-related costs.  Departmental personnel will process and record charges to Program Income ChartField strings per sponsor terms and conditions along with University policy and procedures. The SPO accountant will monitor the Program Income ChartField string during the life of the Award to ensure that Program Income is being spent appropriately.

Reporting
The amount and disposition of the Program Income must be reported on the Financial Status Report of the parent Award for each applicable budget period. During Award setup the SPO must document the treatment of any Program Income and disposition at the end of the Award. Final disposition of unexpended Program