Program IncomeThe federal government encourages grantees to earn program income whenever possible as a way to defray program costs. Program income may be used to meet cost sharing or matching requirements or add to the funds already committed to the grant. The University of Oregon (UO) is accountable for the use of such income in accordance with the Office of Management and Budget 2 CFR Part 200.
Program income may come from a number of sources, both federal and non-federal; the following are typical examples:
Some sources of income are excluded from the definition of program income and thereby exempt from federal restrictions. Examples include:
Alternatives for the use of program income:The federal government provides three options for the expenditure of program income. Each of these three options is illustrated below for a project budget of $100,000, with 80% participation by the federal sponsor and 20% participation by the recipient; program income is estimated to be $10,000.
Showing program income in proposal budgets:The most important factor in correctly accounting for program income is to structure the proposal budget in a way which accurately reflects the intended use of the income:
The method for using program income detailed in the proposal budget must then be reflected in the award, or the default methods described above will apply. If the sponsor approves either the matching or additive alternatives in the award, the UO must account for any program income in excess of the approved limits in accordance with the deductive alternative, unless the sponsor approves an increase of the limit.
Accounting for program income:A unique Fund Organization Program (FOP) or Fund Organization Program Activity (FOPA) must be created for each grant that generates Program Income. If the grant agreement stipulates the "matching" method for use of Program Income the Program Income Index should include the Activity code of the grant in the Activity code field (FOPA). The program code for all Program Income indices must use "XPINC" where "X" equals the first number in the grants program code.
UO&s obligation to the federal government:Unless federal sponsoring agency regulations or the terms of an award provide otherwise, the UO has no obligation to the federal government for program income earned after the end of the grant period. In applications for renewal or continuation grants which are generating program income, such income will generally need to be reflected on the grant applications. Check sponsor guidelines for specific requirements.
Recipients shall have no obligation to the federal government with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments (35 U.S.C.18) apply to inventions made under an experimental, developmental, or research award.
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