General University Reference Utility
To define general Federal policies that govern:
The Penn State procedure for managing and accounting for program income is detailed in Procedure CR2070 - Program Income.
Principal Investigators and Project Directors (PI/PD's) are responsible for reviewing their specific awards and consulting the guidelines of the sponsoring agency and the Uniform Guidance, and reporting any potential program income to the appropriate research administration staff for their unit (Research Coordinator or Financial Officer).
Uniform Guidance 2 CFR 200.80:
Program income means gross income earned by the non-Federal entity that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance except as provided in §200.307 paragraph (f). (See §200.77 Period of performance.) Program income includes but is not limited to income from fees for services performed, the use or rental of real or personal property acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, . . . and principal and interest on loans made with Federal award funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal statutes, regulations, or the terms and conditions of the Federal award, program income does not include rebates, credits, discounts, and interest earned on any of them. See also §200.407 Prior written approval.
PI/PD's shall apply the standards set forth herein in determining and accounting for program income related to projects financed in whole or in part with Federal funds.
Per Uniform Guidance 2 CFR 200.307, earning income to defray program costs is encouraged where appropriate.
According to Uniform Guidance 2 CFR 200.307(e), program income must be added to the Federal award (unless otherwise specified by the Federal awarding agency or by the terms and conditions of the Federal award). The program income must be used for the purposes and under the conditions of the Federal award.
Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period. The Federal awarding agency may negotiate agreements with recipients regarding appropriate uses of income earned after the period of performance as part of the grant closeout process (Uniform Guidance 2 CFR 200.307(f)).
Even though the Uniform Guidance references "license fees and royalties on patents and copyrights" as potential sources of program income, this does not apply to colleges and universities. "Unless the Federal statute, regulations, or terms and conditions for the Federal award provide otherwise, the non-Federal entity has no obligation to the Federal awarding agency with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions made under a Federal award to which 37 CFR part 401,"Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Awards, Contracts and Cooperative Agreements" is applicable" (Uniform Guidance 2 CFR 200.307(g)).
For questions, additional detail, or to request changes to this policy, please contact the Office of the Vice President for Research, or the Office of the Corporate Controller.
Other Policies and Procedures in GURU may also apply, especially:
BS15 - Disposal and Purchase of Obsolete, Surplus or Scrap University Owned Equipment, Supplies and/or Material, and
CR2070 - Program Income
Most recent changes:
Revision History (and effective dates):