Click Here to download the Policy PDF
It is the policy of New York University (NYU, “the University”) that program income must be identified and tracked in accordance with federal and other sponsor requirements.
“Program income is gross income earned by the recipient that is directly generated by a supported activity or earned as a result of a sponsored award … 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 Federally funded projects, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds.” [Federal Office of Budget and Management (OMB) Circular, A-110 §__.2]
A project may have program income as a result of providing services to other organizations and/or from the sale of items developed under the award. When NYU engages in such activities, program income must be accounted for in the manner prescribed by sponsor regulations and NYU’s Policy.
For Federal awards, program income should be handled in one of three ways:
- Added to funds committed to the project by the Federal awarding sponsor and recipient and used to further eligible project or program objectives;
- Used to finance the non-Federal share of the project or program; or
- Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based.
In the event that the Federal awarding sponsor does not specify in its regulations or the terms and conditions of the award how program income is to be used, item 3) shall apply automatically to all projects or programs except research. For awards that support research, item 1) shall apply automatically unless the awarding sponsor indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions. [OMB Circular A-110, §__.24]
If authorized by Federal awarding sponsor regulations or the terms and conditions of the award, costs incident to the generation of program income may be deducted from gross income to determine program income provided these costs have not been charged to the award.
Unless Federal awarding sponsor 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.
Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal awarding sponsor regulations or the terms and conditions of the award, program income does not include the receipt of principal on loans, rebates, credits, discounts or interest earned on any of them.
For non-Federal awards, stipulations around program income should be addressed in the sponsor’s terms and conditions or by contacting the sponsor through OSP.
Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See OMB Circular A-110, §§__.30 through __.37).