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Office of Sponsored Programs (OSP)

Program Income Procedures

Program Income Procedures

The University 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.

Definition of Program Income

Program 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 Grant and Contract Accounting (GCA). Please contact GCA for further details.

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.