How to Properly Manage Program Income

While recipients of federal grant awards generally use their funding to support program expenditures, they often are encouraged by their awarding agencies to generate program income, where appropriate, to defray program costs. However, recipients should be accountable for using such income. What exactly is program income and what are the different ways to apply it under a federal award? How should program income be reported for auditing purposes? Other than Office of Management and Budget (OMB) uniform guidance provisions at §200.307, which establishes the criteria for handling these proceeds, what other provisions and regulations affect the use of program income?

The following whitepaper aims to help recipients better understand how to oversee program income to ensure that they maintain compliance with their federal award and avoid risks of losing or being asked to repay their funding.