Sue,

Yes, you must report the program income earned during the project
period.  If they used the Addition method, you can keep the unspent balance
but you must use it to continue the activities the original award
supported, i.e., you can't use it for anything you want.

Claire L. Carlson
Associate Vice President for Research
The University of Montana

At 11:35 AM 10/15/2002 -0400, Sue Logan wrote:
>I have a question concerning Program Income earned on
>Federal awards.  OMB Circular A-110 outlines 3 methods
>for handling Program Income:
>
>1)  Addition alternative
>2)  Matching or cost sharing alternative
>3)  Deduction alternative
>
>OMB talks about "program income earned during the project period".
>Does this mean program income received or spent ?
>
>For example, say a University receives a Federal research award and
>the award document does not specify which approach to use for
>Program Income.  Per A-110, the "addition alternative" is to be used.
>
>For our example, the University receives a Federal award for $100,000 and
>part of the scope of work includes a conference.  The University charges the
>conference participants a registration fee.  These funds are program income
>for the project.  Let's say that $5,000 was collected in registration fees
>and $4,000 of the program income was spent during the project period.
>$1,000 was unspent and is the balance in the Program Income account.
>Does the University simply report Program Income on the SF269 (lines
>10.r, s, and t) ?  Is the University allowed to keep the $1,000 and spend
>it at a later date ?
>
>Thanks in advance for your feedback.
>Sue Logan, CPA
>Manager
>Contracts & Grants
>Division of Research
>Florida Atlantic University
>3731 FAU Blvd.,
>Boca Raton, FL 33431
>(561) 297-2606 phone
>(561) 297-2319 fax
>xxxxxx@fau.edu
>
>
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Claire L. Carlson
Associate Vice President for Research
The University of Montana
E-mail: xxxxxx@selway.umt.edu
Phone: 406-243-5796
Fax: 406-243-5739

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