Western SARE is federally-funded by USDA-NIFA through a Cooperative Agreement with Montana State University (MSU) which serves as the Host Institution for the Western Region. The following information includes a summary of the USDA-NIFA Policy Guide section on Program Income and Western SARE/MSU-specific requirements for grant applicants/recipients.
What is Program Income and Why it Must be Reported
Program income is gross income earned by a Western SARE grant recipient (hereafter, subrecipient) that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance.
NIFA follows the addition method for treatment of program income. As such, program income earned by grantees during the project period is added to the Federal award. The program income must then be used for award purposes and under the conditions of the award (2 CFR 200.307(e)(2)).
Example:
$75,000 (award amount) + $2,000 (Program Income) = $77,000 available for project costs.
Program income may only be used for allowable costs in accordance with the applicable cost principles and the terms and conditions of the award. Once earned, program income must be expended as soon as possible and before the award end date. It must be used before requesting additional reimbursement for expenses from Western SARE.
Program income MUST be reported to MSU by the Western SARE subrecipient. The amount of program income earned and the amount expended will be documented on MSU’s annual federal financial reporting to USDA NIFA. MSU’s Office of Sponsored Programs will provide instructions for reporting program income.
Generating Program Income on a Western SARE-Funded Grant
If an applicant wishes to generate program income through activities proposed in their Western SARE project, this must be included in the proposal. Specifically, an applicant must address the following questions:
- How will the program income be generated (e.g., charging a registration fee for a workshop or training)?
- How much program income is anticipated (e.g., up to 50 people may attend the training and the registration cost will be $25, thus $1,250 in program income will be generated.)?
- How will generating program income benefit the project?
- How will the program income be utilized (e.g., the income will be used to pay for lunch and refreshments provided during the workshop.)?
- When during the project period will the program income be generated and will there be sufficient time to expend it?
Please include these details in the budget justification section of the proposal so that reviewers and Western SARE Administrative Council and staff can objectively evaluate the budget in relation to the proposed activities. Applicants must keep in mind that any fees charged in association with a project activity should not make it cost-prohibitive to attendees, and options to broaden program accessibility should be considered.
If a current Western SARE subrecipient DID NOT include program income in their grant proposal, the PI, Authorized Official, or fiscal officer must request prior approval from Western SARE to generate program income. Using the Western SARE Project Modification Request form found on the Western SARE website, the subrecipient must submit their request, addressing the five questions listed above, at least 30 days prior to when program income will be generated. Please check “Other Project Modification” and provide responses on the last page of the form. Submit the form to the Western SARE Fiscal Manager and appropriate Program Manager (see website).
Please note, generating program income is not permitted on Farmer/Rancher, Graduate Student, and Sabbatical grant programs.
Full details about program income can be found in the USDA-NIFA Policy Guide. See section V. Post award Federal Requirements, E. Program Income.
For questions pertaining to program income, please contact:
Jen von Sehlen, Western SARE Fiscal Manager
jennifer.vonsehlen@montana.edu
Montana State University, Office of Sponsored Programs
subawards@montana.edu