Program income is the gross income earned by the University that is directly generated by a supported activity or earned as a result of an award. Grantees are accountable for this type of income; the terms of the grant may specify how such income may be spent. In most cases, program income is maintained in an account separate from the funds already committed by the sponsor.
Examples of program income include:
- Fees earned from services performed under the grant, such as those resulting from laboratory drug testing;
- Rental or usage fees, such as those earned from fees charged for the use of computer equipment purchased with grant funds;
- Third party patient reimbursement for hospital or other medical services, such as insurance payments for patients, where such reimbursement occurs because of the grant-supported activity;
- Funds generated by the sale of commodities, such as tissue cultures, cell lines, or research animals; and
- Patent or copyright royalties.