Income Procedures and Policies
of Washington is accountable for certain kinds of income generated
by the activities of a grant or contract. The following information
is intended to provide guidance to those faculty investigators
which elect to use this program income for costs that are
in addition to the allowable costs of their project.
of Program Income
income is gross income earned by a grant or contract recipient
from activities part or all of which is borne as a direct cost
by the grant or contract. Examples of program income include
1) fees earned from services performed under the project, 2)
funds generated from sales of commodities such as tissue cultures,
cell lines and research animals, and 3) income from publications,
registration fees, consulting, and sale of educational materials.
Establishing a Budget Number
When utilizing the additional cost alternative, a separate budget
number is established by Grant and Contract Accounting as a
sub-budget of the grant or contract award giving rise to the
income. To initiate the establishment of a program income budget,
a formal request is submitted to the Office of Sponsored Programs.
The following information should be included:
A review will be made by the Office of Sponsored Programs to assure
that the service is substantially related to the grant and contract
objectives and not a business venture in competition with outside
firms. In addition, OSP will determine if authority to generate
program income is included in expanded grant authorities or
if agency approval is required.
of the activity and relationship to the grant or contract,
approximate annual level of income,
- a proposed
fee schedule for the services to be performed, together
with a breakdown of the major fee components,
that the service is not available from outside firms,
or use of the income,
made for indirect costs at 8% TDC to outside users, and
proposed beginning and ending date.
Policies and Procedures
The program income budget period will coincide with the total
approved project period for the award and will be extended automatically
by GCA upon receipt of a competing renewal or other form of
extension of the parent budget. Special approval is given for
departments to deposit payments directly to the program income
budget. General program income may only be used for allowable
project costs in accordance with costing regulations established
by the sponsor.
The amount and disposition of the program income must be reported
on the Financial Status Report of the parent grant or contract
for each applicable budget period. Final disposition of unexpended
program income will be made upon termination of the related
grant or contract project.