Program Income

Current Policy: All program income received is deposited and entered into the financial system by SFR. Any program income received at the academic department is routed to SFR for deposit and entry into the financial system.

Policy change with implementation of the EFS: Program income will be deposited and entered in to the financial system at the local or academic department level.

What does that really mean for academic departments? Someone in your department will have to take the Departmental Deposit Class; this class is for Non Accounts Receivable Deposits (Point of Sale, Sale of an Asset, Return of Unspent Employee Advance, Program Income, etc.). Once the deposit is entered into PS then someone in your department needs to take it to the Bursar's Office who will approve the Deposit Batch in PS once they verify the totals. This entry will Debit Cash and Credit a Program Income Holding Account.

What happens next? SFR will run a report to capture all the Program Income deposited by the academic departments and establish if this is the first receipt of Program Income for the project or if it is subsequent program income. If it is first time receipt of Program Income, SPA will determine if the program income is reportable or non-reportable and the type. Once determined and for subsequent receipts, depending on the type of Program Income (add, deduct, match, or add/deduct), SFR creates a Journal Entry to move the Program Income into the Project or Program.

	Type	Action	Result
Reportable Program	Add	GL Journal Entry to move the Program Income to the Project, increase budget by the amount of Program Income	This entry offsets actual expenses for the amount of Program Income and increases the award amount and budget
	Add/Deduct	GL Journal Entry to move the Program Income to the Project, increase budget by the amount of Program Income (for add) - dependent on whether the sponsor limit has been reached.	This entry offsets actual expenses for the amount of Program Income and increases the award amount and budget (for add) - dependent on whether the sponsor limit has been reached.
	Deduct	GL Journal Entry to move the Program Income to the Project, decrease budget by the amount of Program Income	This entry offsets actual expenses for the amount of Program Income (we actually end up billing the sponsor less the amount of Program Income).
	Match	GL Journal Entry to move the Program Income to a non-sponsored program	This entry allows for the Program Income to be used at a match
Non Reportable Program Income	Any	GL Journal Entry to move the Program Income to a non sponsored program

Some of the EFS Sponsored Reports will have Program Income as a value thereby making it easy for departments to track Program Income.

Other things to note:

For awards that are converted into PS and have separate account strings for Program Income, the separate account will be converted and linked.
For new awards in PS a separate account is not setup for Program Income.
The process above is for non-accounts receivable (Non AR) Program Income. If a department needs to "bill" someone for sponsored Program Income, a bill is generated (AR Program Income). The Program Income billing information must be forwarded to the billing specialist in the respective cluster for that department. The billing specialist will enter the Program Income bill into the Financial System and create a receivable. The revenue distribution is the Program Income Holding account. Once the information is entered in the system, a bill is printed and sent. Payments are directed to the bank lockbox and processed centrally. The SFR query referenced above will identify this transaction as Program Income. From this point forward the processing for Non AR and AR Program Income are the same.

last updated 4/17/08