Program Income
Description
Program income means gross income earned by the non-federal entity that is directly generated by a supported activity or earned as a result of the award during the period of performance. Program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under federally-funded non-research projects, the sale of commodities or items fabricated under an award, license fees, and interest on loans made with award funds. Common examples include conference registration fees, industry membership fees, software license and usage fees, or equipment usage fees.
Overview
The University is required to identify, document, and report program income generated on sponsored projects in accordance with the Federal administrative requirements, awarding agency regulations and terms and conditions of the awards. When program income is generated, SPA will create a Program Income CFOP associated with the applicable grant code. Program Income revenue must be deposited in the unique CFOP, if the award is still active. All program income must meet the following core principles:
The program income must be used for the purposes of the award.
The program income must be used only for allowable costs in accordance with the applicable cost principles and the terms and conditions of the award.
The program income must be used for current costs unless the awarding agency authorizes otherwise.
Expenses will be assessed Indirect Costs at the same F&A rate as the associated sponsored project. Units may request a waiver of Indirect Costs on program income expenses on a case-by-case basis through their university OVCR for UIC and UIUC or the Provost's Office for UIS.
The program income may be used to fulfill a cost sharing or matching requirement with prior approval of the awarding agency.
Don't Forget
Per Uniform Guidance: Federal Payment, the University must spend funds available from program income before requesting payments from the sponsor.
Income earned after the end of the period of performance is not considered program income and is generally treated as revenue generating activity, unless the federal awarding agency regulations or the terms and conditions of the Federal award provide otherwise.
To maintain consistency in the treatment of program income, this applies to all federally sponsored projects (both direct and federal pass-through awards). For non-federal sponsors, if the awarding agency does not have an established program income policy, the income is not reportable, but instead treated as revenue generating activity.