10.7 - Program Income Policy
Program income means gross income earned by the University that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance. Program income includes but is not limited to income from fees for services performed, the use or rental or real or personal property acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, license fees and royalties on patents and copyrights, and principal and interest on loans made with Federal award funds. Program Income can also include contribution made by recipients of service and interest on such contributions.
Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal statutes, regulations, or the terms and conditions of the Federal award, program income does not include rebates, credits, discounts, and interest earned on any of them.
Use of Program Income
Program income earned during the project period shall be retained by the University and, in accordance with Federal awarding agency regulations or the terms and conditions of the award, shall be used in one or more of the ways:
- Added to funds committed to the project by the Federal awarding agency and recipient and used to further eligible project or program objectives.
- With prior approval of the federal warding agency, used to finance the cost sharing or matching requirement of the project or program.
- Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based.
In the event that the Federal awarding agency does not specify in its regulations or the terms and conditions of the award how program income is to be used, paragraph 3 shall apply automatically to all projects or programs.
Cost Sharing and Matching
With prior approval of the Federal awarding agency, program income may be used to meet the cost sharing or matching requirement of the Federal award.
Incidental Costs
If authorized by Federal awarding agency regulations or the terms and conditions of the award, costs incident to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award.
Income After the Period of Performance
Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, the University shall have no obligation to the Federal Government regarding program income earned after the end of the period of performance.
Unless the Federal statute, regulations, or terms and conditions for the Federal award provide otherwise, the University is not accountable to the Federal awarding agency with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions made under a Federal award to which 37 CFR part 401 is applicable.