Program Income

When University activities funded (in part or in whole) by a sponsored program award generate revenue, this is Program Income. The PI/PD is responsible for identifying actual and potential program income on the application for funding.

Research & Sponsored Programs

PI/PDs must contact the Office of Research and Sponsored Programs if a sponsored project generates program income. A program income account is then created with the same budget period as the grant account and will be extended with each new budget period. If a PI/PD transfers to another institution, program income cannot be transferred unless expressly directed by the sponsor. 

The sponsor will determine how to account for the grantee's program income by:

  1. Adding the program income to the funds awarded
  2. Subtracting the amount of program income from the funds awarded
  3. Using the program income to meet the cost-sharing requirement

Examples of program income include:

  • Revenue generated from conference fees
  • The sale of conference materials
  • Income generated from the use, sale, rental of equipment purchased or fabricated with project funds
  • Proceeds from the sale of excess supplies or equipment purchased or fabricated with project funds
  • Income from the sale of research materials
  • Royalties from patents and copyrights
  • Sales of products with an accompanying material transfer agreement 

Program income is NOT:

  • Interest earned on advances of funds
  • Credits, discounts, loans, etc. (both principal and earned interest)
  • Taxes, special assessments, levies, and fines raised by government recipients
  • Income earned after the end of the project period

Termination of Funded Project

  • The unexpended balance of program income remaining at the end of the project is deducted from the grant by transferring expenditures from the grant account to the program income account to "zero" it out.
  • Income generated after a program period ends is free from sponsor regulations. Program income, in this case, may be expended at the PI/PD's discretion. 

 

For more information on program income, refer to 2 CFR 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).