Program Income

Program income means gross income earned by the University that is directly generated by a supported activity or earned as a result of a grant, cooperative agreement or contract. Program income includes, but is not limited to:

• Conference fees
• Income from fees for services performed
• The sale of commodities or items fabricated under an award (books, videos, etc.)
• The use or rental of property acquired under a grant, cooperative agreement or contract
• License fees and royalties on patents and copyrights

Program income is used in one or more of the following ways:

• Additive Alternative - Program income is added to the funds already committed to the project. It is used to further the project objectives under the terms of the award.
• Matching Alternative - Program income is used to finance part or all of the matching costs of the project.
• Deductive Alternative - Program income is applied toward the allowable project costs during the award period. Thereby reducing both the sponsor share and the matching share.

Note: Unless specified in the agency regulations or terms of an award, program income shall be deducted from program outlays.

Program income that is earned during the award period and falls under the alternatives listed above, must be expended during the award time frame. If the additive or matching alternative is in effect and all of the program income can not be spent during the award period the excess would be used in accordance with the deductive alternative.

The following example illustrates the alternatives:

An agency awards $100,000 for a project. The project generates $10,000 of program income.

• Additive alternative - the total project cost could now be $110,000.
• Matching alternative - If UND were required to provide a 20% match ($20,000 - UND and $80,000 - Agency) the project would be reported as follows
  • $10,000 program income
  • $10,000 UND match
  • $80,000 agency

• Deductive alternative - The agency would now only fund $90,000.