Hi Kim, For the additive and deductive methods of accounting for program income, you should expend the program income prior to requesting federal funds. In the second part of your question, you of course are referring to the cost sharing method to account for program income. When authorized to use program income as cost share or match, the situation is a bit different. If there is a percentage match requirement you may be required to adjust your reimbursement requests to maintain the required percentage of support. For example, if the project requires a 25% match then you would adjust your reimbursement to no more than 75% of total project costs (award expenditures + match expenditures). So, take award expenditures of $50,000 and match expenditures of $5,000 equals $55,000 total project costs. Your reimbursement request would be 75% of $55,000 or $41,250. If at your next billing cycle the award expenditures were $65,000 and the match was $25,000, your reimbursement request would be for 75% of $90,000 or $67,500. Maintaining this process means that you do account for program income in your reimbursement process but you are accounting for it in the context of cost sharing. Ted Ted Mordhorst Assistant Director for Compliance Grant and Contract Accounting University of Washington 3905 University Way NE Seattle, WA 98105-6692 206-616-8678 xxxxxx@u.washington.edu ----- Original Message ----- From: "Kim Chanley" <xxxxxx@BOISESTATE.EDU> To: <xxxxxx@HRINET.ORG> Sent: Tuesday, March 15, 2005 10:31 AM Subject: Re: [RESADM-L] SBA grants / program income > Hi Ted, > I've reviewed the citation you referenced in A-110 and it's a bit > confusing to me. Is the proper interpretation that we are required to > expend program income earned prior to requesting reimbursement from > federal funds? What about those cases in which the program income is > used as match? > > thx > kim > > Kimberly Chanley > Manager > Sponsored Projects Accounting > Boise State University > 208.426.1791 > >>>> xxxxxx@U.WASHINGTON.EDU 3/14/2005 2:27:21 PM >>> > SBA grants / program incomeBarb, > It is interesting you would bring up this topic right when we are > re-writing our policy & procedure for program income. From the federal > sites I have reviewed including A-110, I find no mention of the status > of unexpended revenue received during the award period. I attribute > this to the assumption that all revenue received during the award period > will be expended during the award period. > One university web site I reviewed referred to program income as the > property of the sponsor. I do not recall reviewing a policy that > allowed retention of program income received during the award period. > They all required that program income be expended before award funds are > expended. In that way you would have an unexpended balance on the award > account rather than in the program income account and no refund to the > sponsor would be required. In addition you maintain compliance with > A-110 payment standards which require that program income revenue be > expended prior to requesting federal funds (A-110, .22, g). > So in response to your question, I would say that unless an authorized > SBA official provided alternate written provisions, the program income > should be returned to SBA. > > Ted Mordhorst > Assistant Director for Compliance > Grant and Contract Accounting > University of Washington > 3905 University Way NE > Seattle, WA 98105-6692 > 206-616-8678 > xxxxxx@u.washington.edu > ----- Original Message ----- > From: Bushnell, Barbara > To: xxxxxx@HRINET.ORG > Sent: Friday, March 11, 2005 11:15 AM > Subject: [RESADM-L] SBA grants / program income > > > Hi, > > If a federal grant for a Small Business Development Center ends, does > the use of the program income end the same day as the grant? If there > is nothing specified in the agreement, does the remaining program income > get returned to SBA? > > Thanks! > Barb > > Barb Bushnell > Coordinator, Accounting > University of South Florida > College of Business Administration, BSN 3403 > 4202 East Fowler Avenue > Tampa, FL 33620 > Phone: (813) 974-3270 > Fax: (813) 974-3030 > > > > > > ====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available via > our web site at http://www.hrinet.org (click on "Listserv Lists") > ====================================================================== > > > ====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") > ====================================================================== > > > ====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") > ====================================================================== > ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================
