STANDARD PROCEDURES FOR REPORTING PROGRAM INCOME

NIH GUIDE, Volume 22, Number 21, June 11, 1993



P.T. 34



Keywords:

  Grants Administration/Policy+ 



National Institutes of Health



This notice provides detailed instructions for reporting grant-

related program income on NIH grants and cooperative agreements using

the long form version of the Financial Status Report (FSR).  It is

intended to clarify questions and concerns raised regarding reporting

requirements.



All general program income must be reported on the long form version

of the FSR.  With the exception of royalty or equivalent income

earned from patents or inventions, certain special categories of

program income described in 45 CFR Subpart F must also be reported on

the FSR.  The specific reporting requirements applicable to most NIH

research grants and cooperative agreements for each type of program

income is described below.



General Program Income - As defined in 45 CFR Part 74, general

program income is all program income accruing to a grantee during the

period of grant support or to a subgrantee during the period of

subgrant support, other than the special categories of program income

listed below.  General program income subject to the deduction

alternative must be reported on line 10c, "Program income used in

accordance with the deduction alternative," and line 10q, "Disbursed

program income shown on lines c and/or g above."  General program

income subject to the additional costs alternative must be reported

on lines 10r, "Disbursed program income using the addition

alternative," and 10s, "Undisbursed program income," as appropriate.

Total program income realized should be reported on line 10t as

instructed.  General program income subject to a combination of these

alternatives must be reported accordingly, i.e., the first $25,000

should be reported on lines 10r and 10s, and income in excess of

$25,000 should be reported on lines 10c and 10q.  Costs (both direct

and indirect) associated with generating program income which are

deducted from the program income receipts when such costs are not

already charged to the project should not be reported on the FSR.



Proceeds from the Sale of Real Property and from Sale of Equipment

and Supplies Acquired for Use -



o  Sale of Property - Section 74.134 of Subpart O, "Property," states

that the disposition instructions of the granting agency shall be

followed when real property is no longer to be used by the grantee or

transferred to an eligible third party.



o  Sale of Equipment - Grantees subject to the requirements in 45 CFR

74.139, "Disposition of equipment," shall reflect income earned from

the sale of equipment on the FSR if the grantee's project or program

for which equipment was acquired is still receiving grant support.

If authorized by the awarding unit, grantees may use the income for

allowable costs of the project.  This income would be reported on

lines 10c/10q, 10r, or 10s in accordance with awarding unit

authorized disposition.  There are no reporting requirements for

nonprofit institutions of higher education or nonprofit organizations

whose primary purpose is the conduct of scientific research since

they are not subject to the requirements in 45 CFR 74.139.



o  Unused Supplies -  Grantees subject to the requirements in 45 CFR

74.141, "Unused supplies," should reflect any credit to the grant on

lines 10c and 10q of the FSR.  There are no reporting requirements

for non-profit institutions of higher education or non-profit

organizations whose primary purpose is the conduct of scientific

research since they are not subject to the requirements in 45 CFR

74.141.



Royalties and Other Income Earned from a Copyrighted Work - Where the

terms of the Notice of Grant Award (NGA) do not specify disposition,

no reporting of income is required on the FSR.  Where the terms of

the NGA govern disposition, this kind of income would be reported on

FSR lines 10c/10q, 10r, or 10s in accordance with awarding unit

authorized disposition.



Royalties or Equivalent Income Earned from Patents or from Inventions

- Where the terms of the NGA do not specify disposition, this kind of

income should be reported to the Extramural Inventions Office, Office

of Policy for Extramural Research Administration, on the annual

utilization report.  Where the terms of the NGA govern disposition,

this kind of income would be reported on FSR lines 10c/10q, 10r, or

10s in accordance with awarding unit authorized disposition, as well

as to the Extramural Inventions Office on the annual utilization

report.



Income After Grant or Subgrant Support Not Otherwise Treated - Unless

specified in the terms of the NGA there are no reporting requirements

for income accrued after the period of grant support ends.



Questions regarding these instructions may be directed the Grants

Management Office of the awarding NIH Institute or Center.  The Long

Form Financial Status Report is available upon request from the

Federal Assistance Accounting Branch, National Institutes of Health,

(301) 496-5287.



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