Frequently Asked Questions
1. Are there limitations on what I can pay for with program income?
Program income must be used only for the purposes of the grant during the grant project period. You can use program income to cover allowable expenditures budgeted under the federal and university shares of the grant.
2. Is a grantee accountable for income earned after the end of the project period?
Income earned after the project period ends can be retained by the organization according to the grant provisions or terms and conditions. If the awarding agency is silent on income earned after the project end date, this income is subject to university revenue generating guidelines (see 22—Self-Supporting / Revenue Generating Activities).
3. Is the use of program income subject to audit?
Yes. Auditors may sample your revenue sources to identify any funds that would be considered program income under the grant and review your general ledger documentation to ensure you have used the program income as required under your grant provisions or terms and conditions.
4. Can program income be transferred from one program to another?
No. Program income cannot be transferred between organizations, grants, or subawards. As with the costs incurred under a grant, program income is also only allocable to the grant or subaward funding the programs and activities earning the income.
5. Do we have to amend our grant if we are earning excess program income?
It depends on the terms and conditions of the award. Some sponsors may require an amendment to the original award to address the excess amount and its use.
First Published: August 2015 | Last Updated: March 2024 | Last Reviewed: March 2024