Handling Program Income at Proposal Time

This procedure contains the appropriate steps to take in order to correctly identify and record program income in a proposal.

1. The Principal Investigator (PI) identifies revenue-generating activities at the proposal stage.  

   The PI is responsible for identifying actual and potential program income at the proposal stage. Any external or internal sale that results from a sponsored activity is likely to be program income. If the activity will be partly or fully supported by sponsored funds, it is program income. It is appropriate to discuss first with Sponsored Projects Administration (SPA) and, if necessary, the sponsor, whether funded activities might generate program income.

2. The PI answers 'yes' to the question on the MN-GEMS Funding Proposal (FP) regarding program income.

   If the PI believes that program income will be generated during the project, they must answer "yes" to the related question on the FP.

   If the PI anticipates using the income to pay some of the project costs, those funds will be considered program income and must be identified in the FP. For example, if conference fees are used to cover part of the cost of the project, this revenue is still considered program income.

3. If required by the sponsor, the PI completes a program income statement to be included in the proposal or includes program income in the proposal budget.

   Some proposal applications provide a separate section for outlining anticipated program income. If this information is required, the PI must provide it.

4. The department head, dean, and SPA grants and contracts officer (GCO) ensure that program income included in the proposal is correctly identified on the FP.
   • When department heads and deans review proposals developed in their units, they must ensure that any activity that could generate program income is correctly identified on the FP.
   • When the SPA GCO reviews the budget section of the proposal and program income is identified, they will check that the anticipated program income has been correctly identified on the FP. The GCO will also review the proposal budget justification for inclusion of required program income statements.