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Program income is income earned by Federal financial assistance recipients or sub-recipients from award activities.Anchor top top
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All grants and cooperative agreements |
Definition
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Overview
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Federal regulation encourages Federal financial assistance recipients to earn income from award activities as a means to help leverage funds. This income, termed 'program income' must be properly accounted for, reported on the Federal Financial Report, and must be used in the manner approved in the Federal award.
Authorities
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2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
§200.80 Program income.
Program income means gross income earned by the non-Federal entity that is Program Income is gross income received by the grantee or subgrantee directly generated by a grant supported activity , or earned only as a result of the grant Federal award during the grant period . ‘‘During the grant period’’ is the time between the effective date of the award and the ending date of the award reflected in the final financial report.
43 CFR 12 Administrative Requirements Subpart C
Applies to States, Tribes and Local Governments
§ 12.65 Program Income
a) General. Grantees are encouraged to earn income to defray program costs. Program income includes of performance except as provided in §200.307 paragraph (f). (See §200.77 Period of performance.) Program income includes but is not limited to income from fees for services performed, from the use or rental of or real or personal property acquired with grant funds, from under Federal awards, the sale of commodities or items fabricated under a grant agreementFederal award, license fees and royalties on patents and copyrights, and from payments of principal and interest on loans made with grant Federal award funds. 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 agencyaward, program income does not include interest on grant funds, rebates, credits, discounts, refunds, etc. and interest earned on any of them.
(b) Definition of program income. Program income means gross income received by the grantee or subgrantee directly generated by a grant supported activity, or earned only as a result of the grant agreement during the grant period. "During the grant period" is the time between the effective date of the award and the ending date of the award reflected in the final financial report.
. See also §200.407 Prior written approval (prior approval). See also 35 U.S.C. 200-212 “Disposition of Rights in Educational Awards” applies to inventions made under Federal awards.
[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75880, Dec. 19, 2014]
§200.307 Program income.
(a) General. Non-Federal entities are encouraged to earn income to defray program costs where appropriate.
(b(c) Cost of generating program income. If authorized by Federal regulations or the grant agreementFederal award, costs incident incidental 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 Federal award.
(dc) Governmental revenues. Taxes, special assessments, levies, fines, and other such revenues raised by a grantee or subgrantee non-Federal entity are not program income unless the revenues are specifically identified in the grant agreement or Federal agency regulations as program income.(e) Royalties. Income from royalties and license fees for copyrighted material, patents, and inventions developed by a grantee or subgrantee is program income only if the revenues are specifically identified in the grant agreement or Federal Federal award or Federal awarding agency regulations as program income. (See S12.74.)
(fd) Property. Proceeds from the sale of real property or equipment , equipment, or supplies are not program income; such proceeds will be handled in accordance with the requirements of 12.71 and 12.72.of Subpart D—Post Federal Award Requirements of this part, Property Standards §§200.311 Real property, 200.313 Equipment, and 200.314 Supplies, or as specifically identified in Federal statutes, regulations, or the terms and conditions of the Federal award.
(e(g) Use of program income. Program income shall be deducted from outlays which may be both Federal and non-Federal as described below, unless the Federal agency regulations or the grant agreement specify another alternative (or a combination of the alternatives). In specifying alternatives, the Federal If the Federal awarding agency does not specify in its regulations or the terms and conditions of the Federal award, or give prior approval for how program income is to be used, paragraph (e)(1) of this section must apply. For Federal awards made to IHEs and nonprofit research institutions, if the Federal awarding agency does not specify in its regulations or the terms and conditions of the Federal award how program income is to be used, paragraph (e)(2) of this section must apply. In specifying alternatives to paragraphs (e)(1) and (2) of this section, the Federal awarding agency may distinguish between income earned by the grantee recipient and income earned by subgrantees subrecipients and between the sources, kinds, or amounts of income. When the Federal agencies authorize the alternatives awarding agency authorizes the approaches in paragraphs (ge)(2) and (3) of this section, program income in excess of any limits stipulated shall amounts specified must also be deducted from outlaysexpenditures.
(1) Deduction. Ordinarily program income
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must be deducted from total allowable costs to determine the net allowable costs. Program income
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must be used for current costs unless the Federal awarding agency authorizes otherwise. Program income
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that the non-Federal entity did not anticipate at the time of the Federal award
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must be used to reduce the Federal
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award and non-Federal entity contributions rather than to increase the funds committed to the project.
(2) Addition.
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With prior approval of the Federal awarding agency (except for IHEs and nonprofit research institutions, as described in paragraph (e) of this section) program income may be added to the
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Federal award by the Federal agency and
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the
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non-Federal entity. The program income
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must be used for the purposes and under the conditions of the
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Federal award.
(3) Cost sharing or matching.
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With prior approval of the Federal awarding agency, program income may be used to meet the cost sharing or matching requirement of the
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Federal award. The amount of the Federal
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award remains the same.
(hf) Income after the award period of performance. There are no Federal requirements governing the disposition of program income earned after the end of the award period (i.e., until the ending date of the final financial report, see paragraph (a) of this section), unless the terms of the agreement or the Federal agency regulations provide otherwise.
43 CFR 12 Administrative Requirements Subpart F
Applies to Higher Education, Hospitals and Other Non-Profit Organizations
§ 12.924 Program income.
(a) Federal awarding agencies shall apply the standards set forth in this section in requiring recipient organizations to account for program income related to projects financed in whole or in part with Federal funds.
(b) Except as provided in paragraph (h) of this section, program income earned during the project period shall be retained by the recipient 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 following ways:
(1) Added to funds committed to the project or program by the Federal awarding agency and recipient and used to further eligible project or program objectives;
(2) Used to finance the non-Federal share of the project or program; or
(3) Deducted from the total project or program allowable cost in determining the net allowable costs upon which the Federal share of costs is based.
(c) When an agency authorizes the disposition of program income as described in paragraph (b)(1) or (b)(2) of this section, program income in excess of any limits stipulated shall be used in accordance with paragraph (b)(3) of this section.
(d) If the Federal awarding agency does not specify in its of performance for the Federal award, unless the Federal awarding agency regulations or the terms and conditions of the award how program income is to be used, paragraph (b)(3) of this section shall apply automatically to all projects or programs except research. For awards that support research, paragraph (b)(1) of this section shall apply automatically unless the awarding agency indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions, as indicated in § 12.914
(e) Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period.
(f) 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.
(g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See §§ 12.930 through 12.937).
Federal award provide otherwise. The Federal awarding agency may negotiate agreements with recipients regarding appropriate uses of income earned after the period of performance as part of the grant closeout process. See also §200.343 Closeout.
(g) Unless the Federal statute, regulations, or terms and conditions for the Federal award provide otherwise, the non-Federal entity has no obligation to the Federal awarding agency (h) Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, 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 made under an award. However, Patent and Trademark Amendments (35 U.S.C. 18) apply to inventions made under an experimental, developmental, or research award.
Frequently Asked Questions
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a Federal award to which 37 CFR part 401,“Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Awards, Contracts and Cooperative Agreements” is applicable.
[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75884, Dec. 19, 2014]
Frequently Asked Questions
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Learning Aids
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Related Pages
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Program Income earned under WSFR
Resources
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References
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Related Pages
Program Specific Guidance on Program Income
Wildlife and Sport Fish Restoration
