|Policy and Procedure Statement 5.11||Program Income on|
|Revised 04/2008||Sponsored Programs|
|Review Cycle Apr. 1 E4Y||(8 Paragraphs)|
|Review Date: 04/2012|
|Reviewer: Director, Office of Sponsored Programs|
(a) Deduction. Ordinarily program income shall be deducted from total allowable costs to determine the net allowable costs. Program income shall be used for current costs unless the sponsor authorizes otherwise. Program income, which the grantee did not anticipate at the time of the award, shall be used to reduce program costs and grantee contributions rather than to increase the funds committed to the project.
(b) Addition. When authorized, program income may be added to the funds committed to the grant agreement by the sponsor and the grantee. The program income shall be used for the purposes and under the conditions of the grant agreement.
(c) Cost sharing or matching. When authorized, program income may be used to meet the cost sharing or matching requirement of the grant agreement. The amount of the grant award remains the same.
If the grant agreement does not distinguish which of the above methods is used, program income must be accounted for as a deduction. In specifying alternatives, the federal or state agency may distinguish between income earned by the grantee and income earned by subgrantees and between the sources, kinds, or amounts of income.
Grantees are encouraged to earn income to defray program costs. The state requires that interest earned in excess of $250 per year on grants from purely state sources be considered program income. Earnings attributable to federal funds may be used only in accordance with applicable federal law.
This PPS has been approved by the reviewer listed below and represents Texas State's Division of Academic Affairs policy and procedure from the date of this document until superseded.
Review Cycle: ______________________ Review Date: ____________
Reviewer: __________________________Date: __________________
Approved: _________________________ Date: __________________
Provost and Vice President
for Academic Affairs
Texas State University-San Marcos
Provost and Vice President for Academic Affairs
Last Updated: March 19, 2008
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