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What is Program Income?
Program Income is revenue related to projects financed in whole or in part with Federal funds.
There are three ways to account for Program Income. In order to determine which method to follow please refer to the Federal awarding agency regulations or OMB Circular A-110)
- Addition Method - Revenue generated is added to federal funds committed to the project and used to further eligible project/program objectives.
- Subtraction Method - The amount of program income revenues generated reduces the amount of federal funds. Must be spent in accordance with the original approved budget.
- Other Method - Revenues are used to finance the non-federal share of the project/program.
If the method is not specified by the awarding agency, the subtraction method will automatically apply (except for research programs which will use the addition method.
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