Program income

This list shows examples of program income:

• Income from fees for services performed, such as laboratory tests
• Income from the use or rental of property that is acquired under federally-funded projects
• The sale of commodities or items that are fabricated under the grant
• License fees and royalties on patents and copyrights
• Interest on loans that are made with an award

Program income must be recognized, tracked, and used according to the terms of the grant.

To track program income, we recommend that you define a separate posting project within the funded project structure. The posting project can be billable or non-billable, depending on if program income is additive or deductive and the method by which you define the rules for budget checking.

This list shows the ways in which program Income revenue can be accounted for, depending on sponsor requirements:

• Additive: The funds that are generated by Program Income are added to award funds, increasing the amount that is available to expense to the project. Additive program income does not affect the financial commitment of the sponsor.
• Deductive: The funds that are generated by Program Income are deducted from the financial commitment of the sponsor.
• Match, or Cost Share: Federal Uniform Guidance defines cost sharing or matching funds as a portion of the project or program costs that are not supported by the federal government. They are covered by another source.
• In-Kind: In-kind program income does not have an affect on financials. In-kind income is tracked in the journal entries that are posted to statistical accounts. Examples are volunteer hours and donations.