Contracts and Grants Accounting C&G Training

Transcript:Contracts and Grants Accounting C&G Training:
Contracts and Grants Accounting C&G 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 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? 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. ‹#› 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. ‹#› 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 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 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)