Accounting for Program Income

A new job aid Accounting for Program Income is now available on the Controller's Office website. Program Income is gross income earned by the University that is directly generated by a supported activity or earned as a result of a federal award, in whole or in part, during the period of performance. Examples of program income include:

  • Fees for services performed
  • The sale of items fabricated under a federal award

A Recharge Activity is a Sales and Service Center activity which provides products and/or services to other University organizational units or departments, and charges for those products and services through the recharge mechanism. If you chose to use federal funds to reduce a recharge rate, then you create program income (subvention). This method is used when the award has a programmatic aim to provide the good or service and intends to create related program income to cover some of the costs. If you bill the user at the recharge rate and use the federal funds to pay all or a portion of the billing costs, you avoid creating program income (billing subsidy). This method should be used when there is no intent or need to create program income to provide the service.

Questions related to program income should be sent to [email protected].