Establishing a Budget Number When utilizing the additional cost alternative, a separate budget number is established by Grant and Contract Accounting as a sub-budget of the grant or contract award giving rise to the income. To initiate the establishment of a program income budget, a formal request is submitted to Grant and Contract Services. A review will be made by Grant and Contract Services to assure that the service is substantially related to the grant and contract objectives and not a business venture in competition with outside firms. In addition, GCS will determine if authority to generate program income is included in expanded grant authorities or if agency approval is required. The program income budget period will coincide with the total approved project period for the award and will be extended automatically by GCA upon receipt of a competing renewal or other form of extension of the parent budget.
Special approval is given for departments to deposit payments directly to the program income budget.
General program income may only be used for allowable project costs in accordance with costing regulations established by the sponsor. Reporting The amount and disposition of the program income must be reported on the Financial Status Report of the parent grant or contract for each applicable budget period. Final disposition of unexpended program income will be made upon termination of the related grant or contract project.