Contracts and Grants Accounting C&G Training
Description: Contracts and Grants Accounting CG Training Presentation Updated: January 3, 2025 Program Income Procedures Program income is defined as gross income earned that is directly generated by a supported project activity or earned as a result
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slide1. Contracts and Grants Accounting C&G Training Presentation Updated: January 3, 2025 Program Income Procedures<br>
slide2. Program income is defined as gross income earned that is directly generated by a supported project activity or earned as a result of the award during period of performance.
Program income should be expended prior to requesting reimbursement against the grant.
There are no Federal requirements governing the disposition of income earned after the period of performance, unless the award specifies otherwise in the terms and conditions. ‹#› What is Program Income?<br>
slide3. Examples of Program Income Income from fees, such as registration fees for conferences and workshops
Fees charged for laboratory tests and analysis
License fees and royalties on patents and copyrights
Fees garnered from the use or rental of property acquired using award funds
Proceeds from the sale of items fabricated using award funds, such as software, CDs, tapes, or publications. ‹#›<br>
slide4. What is Not Considered Program Income? Program income does not include:
Interest earned on advances or awards
Proceeds from the sale of equipment
Credits, discounts, rebates and interest earned on any of them, unless otherwise stated in the federal regulations statutes, or the terms and conditions of the award. ‹#›<br>
slide5. Regardless of the type of program income, the funds generated must be spent for the purpose of the award.
Additive – program income funds are added to award funds, thus increasing the amount available to accomplish program objectives
Deductive – total funds available to the project remain the same and the funds generated through Program Income are deducted from the financial commitment of the sponsor
Matching – program income funds are used to finance the non-sponsor share of the award (mandatory or committed cost sharing)
Add/Deduct – a portion of program income is added to the award funds up to a limit specified by the sponsor increasing the amount available to spend. The remaining program income is deducted from the sponsor’s financial commitment. ‹#› Types of Program Income<br>
slide6. Additive Program Income Increases the total amount available to spend
The additive program income method is used when no method is specified in the terms and conditions of the award ‹#› Funds committed by sponsor
($100k) Authority to Spend $110k Additive Program Income ($10k) Award amount $100k<br>
slide7. Deductive Program Income Income earned reduces the sponsor’s financial commitment
Total amount available to spend remains the same ‹#› Funds committed by sponsor
($100k) Deductive Program Income ($10k) ($90k)<br>
slide8. Matching Program Income Uses income generated by award activities as cost sharing on the award
Does not change the University’s cost sharing commitment ‹#› Funds committed by sponsor
($100k) Funds committed by University
($25k) Matching Program Income ($10k) Applies to cost sharing commitment, not award amount Cost Share amount $25k ($15k)<br>
slide9. Add/Deduct Program Income Splits income between additive and deductive per sponsor’s requirements
Increases the total amount available to spend up to a sponsor-defined limit
Funds generated in excess of the limit reduce the sponsor’s financial commitment ‹#› Funds committed by sponsor
($100) Authority to Spend $105k Additive Program Income ($5k) Award amount $100k Deductive Program Income ($5k) ($95)<br>
slide10. Accounting for Program Income As soon as you receive an award with program income:
Check your award documentation to determine the sponsor’s requirement for tracking and using program income
Notify CGA, and let them know the ChartFields (Fund, Dept, Program Code, CF2) you will be using
CGA will then create a specific CF1 value -- attributed “program income” with SPO award number as the attribute value – for you to use
For Matching Program Income, the CF1 value assigned will represent both Program Income and Cost Sharing for the award (value begins with 2, has two attributes)
CGA will update the PC ChartField mapping table so the new CF1 will function appropriately in BearBuy and BFS ‹#›<br>
slide11. When making purchases and recording expenses related to generating Program Income, always use the following:
the appropriate expense account
the C&G Fund
the specific Program Income CF1
F&A will be assessed on Program Income expenses at the award funded rate ‹#› Recording Program Income Expenses<br>
slide12. Program Income Expenses Sample Accounting Entries ‹#› Recording of the Salary Expense Recording of the related overhead<br>
slide13. When recording Program Income, use ChartFields:
Revenue Account 45050 (only for Program Income revenue)
C&G Fund
Program Income Attributed CF1
If you will bill customers for program income, work with BPS and the BFS BI/AR team to generate those invoices within PeopleSoft.
BPS will create charge codes associated with a Program Income ChartString
When the invoice is generated, Program Income revenue will be recorded
Payments will be routed to and applied by BPS
If you do not bill customers for Program Income, create a CDS entry using the Program Income ChartFields listed above ‹#› Recording Program Income Revenue<br>
slide14. Program Income Revenue Sample Accounting Entries ‹#› CDS entry, when there is no customer invoice : When an invoice is sent to the customer:<br>
slide15. Resources ‹#› Uniform Guidance
NSF Program Income Webinar and Q&A
UCB SPO Website
UCB Procedures
contractsgrants@berkeley.edu<br>
slide2. Program income is defined as gross income earned that is directly generated by a supported project activity or earned as a result of the award during period of performance.
Program income should be expended prior to requesting reimbursement against the grant.
There are no Federal requirements governing the disposition of income earned after the period of performance, unless the award specifies otherwise in the terms and conditions. ‹#› What is Program Income?<br>
slide3. Examples of Program Income Income from fees, such as registration fees for conferences and workshops
Fees charged for laboratory tests and analysis
License fees and royalties on patents and copyrights
Fees garnered from the use or rental of property acquired using award funds
Proceeds from the sale of items fabricated using award funds, such as software, CDs, tapes, or publications. ‹#›<br>
slide4. What is Not Considered Program Income? Program income does not include:
Interest earned on advances or awards
Proceeds from the sale of equipment
Credits, discounts, rebates and interest earned on any of them, unless otherwise stated in the federal regulations statutes, or the terms and conditions of the award. ‹#›<br>
slide5. Regardless of the type of program income, the funds generated must be spent for the purpose of the award.
Additive – program income funds are added to award funds, thus increasing the amount available to accomplish program objectives
Deductive – total funds available to the project remain the same and the funds generated through Program Income are deducted from the financial commitment of the sponsor
Matching – program income funds are used to finance the non-sponsor share of the award (mandatory or committed cost sharing)
Add/Deduct – a portion of program income is added to the award funds up to a limit specified by the sponsor increasing the amount available to spend. The remaining program income is deducted from the sponsor’s financial commitment. ‹#› Types of Program Income<br>
slide6. Additive Program Income Increases the total amount available to spend
The additive program income method is used when no method is specified in the terms and conditions of the award ‹#› Funds committed by sponsor
($100k) Authority to Spend $110k Additive Program Income ($10k) Award amount $100k<br>
slide7. Deductive Program Income Income earned reduces the sponsor’s financial commitment
Total amount available to spend remains the same ‹#› Funds committed by sponsor
($100k) Deductive Program Income ($10k) ($90k)<br>
slide8. Matching Program Income Uses income generated by award activities as cost sharing on the award
Does not change the University’s cost sharing commitment ‹#› Funds committed by sponsor
($100k) Funds committed by University
($25k) Matching Program Income ($10k) Applies to cost sharing commitment, not award amount Cost Share amount $25k ($15k)<br>
slide9. Add/Deduct Program Income Splits income between additive and deductive per sponsor’s requirements
Increases the total amount available to spend up to a sponsor-defined limit
Funds generated in excess of the limit reduce the sponsor’s financial commitment ‹#› Funds committed by sponsor
($100) Authority to Spend $105k Additive Program Income ($5k) Award amount $100k Deductive Program Income ($5k) ($95)<br>
slide10. Accounting for Program Income As soon as you receive an award with program income:
Check your award documentation to determine the sponsor’s requirement for tracking and using program income
Notify CGA, and let them know the ChartFields (Fund, Dept, Program Code, CF2) you will be using
CGA will then create a specific CF1 value -- attributed “program income” with SPO award number as the attribute value – for you to use
For Matching Program Income, the CF1 value assigned will represent both Program Income and Cost Sharing for the award (value begins with 2, has two attributes)
CGA will update the PC ChartField mapping table so the new CF1 will function appropriately in BearBuy and BFS ‹#›<br>
slide11. When making purchases and recording expenses related to generating Program Income, always use the following:
the appropriate expense account
the C&G Fund
the specific Program Income CF1
F&A will be assessed on Program Income expenses at the award funded rate ‹#› Recording Program Income Expenses<br>
slide12. Program Income Expenses Sample Accounting Entries ‹#› Recording of the Salary Expense Recording of the related overhead<br>
slide13. When recording Program Income, use ChartFields:
Revenue Account 45050 (only for Program Income revenue)
C&G Fund
Program Income Attributed CF1
If you will bill customers for program income, work with BPS and the BFS BI/AR team to generate those invoices within PeopleSoft.
BPS will create charge codes associated with a Program Income ChartString
When the invoice is generated, Program Income revenue will be recorded
Payments will be routed to and applied by BPS
If you do not bill customers for Program Income, create a CDS entry using the Program Income ChartFields listed above ‹#› Recording Program Income Revenue<br>
slide14. Program Income Revenue Sample Accounting Entries ‹#› CDS entry, when there is no customer invoice : When an invoice is sent to the customer:<br>
slide15. Resources ‹#› Uniform Guidance
NSF Program Income Webinar and Q&A
UCB SPO Website
UCB Procedures
contractsgrants@berkeley.edu<br>