Principal investigators must identify and document program income generated on federal and non-federal sponsored projects. Program income must be appropriately documented and the resulting revenue properly recorded in accordance with sponsor requirements.
This policy does not include program income where there is no reporting requirement to the sponsor. Examples include income received on non-federal awards that are silent on program income, royalty income resulting from patents and copyrights (unless the terms and conditions of the award indicate otherwise - see OMB Uniform Guidance 200.307), or royalties or license fees for unpatented, but potentially patentable discoveries that are disclosed to the Office for Technology Commercialization.
This policy does not include revenue generated through programs funded by sources other than sponsored projects.
Sale of Capital Equipment Purchased with Sponsored Funds
In certain situations the sale of capital equipment purchased with federal sponsored funds must be treated like Program Income unless otherwise dictated in the award documents. Refer to Administrative Procedures: Capital Equipment Disposals: Selling Capital Equipment Purchased with Sponsored Funds (does not include NSF Grants, NIH Grants and Non-Federal Grants) and Capital Equipment Disposals: Selling Capital Equipment Purchased with Sponsored Funds from NSF Grants, NIH Grants or Non-Federal Grants for specific criteria.
Exceptions to the policy
The Vice President for Research and Innovation and the Controller may grant exceptions to this policy based on written justification. To request an exception, the PI must submit the request and justification via email to these individuals.
Reason for Policy
Sponsors provide funding to cover costs of conducting research, training, and public service-related activities. Program income may be generated as a result of these activities and in some cases must be reported to the sponsor. Federal sponsors have documented in OMB Uniform Guidance and the applicable Code of Federal Regulations explicit processes to be used in the identification, recording, reporting, and monitoring requirements for income that is generated during the project period.
To be consistent in managing program income, the University extends the requirements to nonfederal sponsors where it is reportable.
This policy was implemented to comply with sponsor terms and conditions and to ensure that program income is managed in a manner consistent with the University's overall missions and goals.