Program Income

Program Income

Program income, as defined in 2 CFR 200 means gross income earned by the grantee 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(c).

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, license fees, and royalties on patents and copyrights, 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.

Program Income from Victim Services Grants

Grantees who generate income as a direct result of their victim service grant must account for and use program income for the purposes and under the conditions applicable to their victim services grant. If you are unsure, contact your grant coordinator for more information on properly accounting for and spending program income.

Accounting for Program Income

Program income must be used for the purposes and under the conditions applicable to the grant. If program income is earned, it must be accounted for up to the same ratio of federal participation as funded in the project or program. Unless specified, program income should be used as earned and expended as soon as possible. If the cost is allowable under the federal grant program, then the cost would be allowable using program income.

Income earned after the period of performance has no restrictions and can be used as the grantee deems appropriate.

Grantees can learn about program income from the Code of Federal Regulations and from the DOJ Financial Guide.