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Award Management
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Program Income Procedures and Policies

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 the Office of Sponsored Programs. The following information should be included:
  1. description of the activity and relationship to the grant or contract,
  2. the approximate annual level of income,
  3. a proposed fee schedule for the services to be performed, together with a breakdown of the major fee components,
  4. assurance that the service is not available from outside firms,
  5. purpose or use of the income,
  6. provision made for indirect costs at 8% TDC to outside users, and
  7. the proposed beginning and ending date.
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.

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.