Program income is gross income earned by the recipient directly generated by a supported activity or earned as a result of the award. This does not include rebates, discounts or credits.
Program income earned during the project period shall be retained by Drake and shall be used in one or more of the following ways (see OMB A-110, Subpart C,.24):
In the event the federal awarding agency does not specify in its regulations or the terms and conditions of the award, the default method is #3, which means the actual federal share of a project will be reduced.
Method #1 is favored because it allows more funds to carry out the program activity.
If treatment of program income is not addressed in the grant application or award notification, prior approval must be obtained from the grantor if using methods #1 or #2.
Note: Once the final financial report has been submitted by Drake University, any further program income belongs to Drake University and Drake has no further reporting requirements to the federal funding agency.