UNIVERSITY OF PITTSBURGH POLICY 11-01-05



CATEGORY:        RESEARCH ADMINISTRATION
SECTION:         Research
SUBJECT:         Program Income
EFFECTIVE DATE:  January 3, 1995
PAGE(S):         1


I.   PURPOSE
     
     To establish accounting control of income from federally
     sponsored programs.  Certain federal programs generate income
     which either is subject to special rules and restrictions or may
     be applied as additional program support.
     
II.  DEFINITION
     
     "Program income" refers to that portion of gross revenues,
     including royalties, received by or accruing to a grantee or
     contractor through activities undertaken in the performance of a
     grant or contract whether received during or after the grant or
     contract period.  Program income includes, but is not limited to,
     receipts from the sale, licensing, lease, rental, or other
     arrangement for the use, release, dissemination or other disposal
     of copyrightable or non-copyrightable material,  property,
     services, and inventions developed, produced, or acquired with
     sponsor support.  Program income also includes any interest
     earned on all such significant revenues and proceeds.  Program
     income is divided into federal share and the grantee's share on
     the basis of their respective contributions to the cost of the
     program.
     
III. POLICY
     
     All program income from federally sponsored awards must be
     accounted for in the specific ledger-5 account.  All such income,
     if not subject to specific contract or grant conditions, must be
     applied to provide additional program support.  It shall be added
     to the funds committed to the program by the sponsor and be used
     to further program objectives.  Expenditures of such program
     income are subject to regular ledger-5 rules including indirect
     cost charges.
     
     Unless specifically outlined in the contract or grant, the
     awardee shall have no obligation to sponsoring agencies with
     respect to program income received beyond the life of the award.
     The Office of the Controller has the responsibility to account
     for and, when applicable, to remit any program income earned.