Program Income Account Set-up

A. The department administrator should complete the Program Income Identification Form (PIIF) and submit it to Sponsored Projects Accounting (SPA).

B. SPA will review the PIIF and forward it to the Budget Office (Medical School) or Accounting Services (Danforth) where an unrestricted departmental account/fund (93###) will be established.

C. Based upon the 93### account/fund number established in B., SPA will establish an “X” account/fund associated with the actual grant account/fund number, using the 93### account/fund as the cost sharing debit account.

Example:

Grant Account/Fund 30ZZ-55###
Mandatory Cost Sharing Account/Fund 30ZZ-55###X
Unrestricted Departmental Account/Fund 30ZZ-93###

D. The PI or his/her designee will deposit all program income checks into the Ledger Class (LC) 11 income on the appropriate 93### account/fund and forward a copy of the receipt vouchers to OSRS. The PI or his/her designee should then initiate a budget adjustment (BA) to budget the check amounts in the 93### account/fund expense on LC 12 in budget object code (BUOB) 50 and the income on LC 11 BUOB 7299. OSRS will then budget the same amount in the LC 22 as an increase to BUOB 35 and a decrease to BUOB 50 on the “X” account/fund.

Note: the negative amount in BUOB 50 is utilized for tracking and report purposes.

Example: Program Income Check for $1,000

Department – Deposit Check to 11-30ZZ-93###-7299
Department – Increase Budget 11-30ZZ-93###-7299
Department – Increase Budget 12-30ZZ-93###-50
SPA – Increase Budget 22-30ZZ-55###X-35
SPA – Decrease Budget 22-30ZZ-55###X-50

In some instances, services/goods may be provided to other departments and/or units within the University. Payment for the services/goods should be processed via an Interdepartmental entry (ID). The department/unit that received the services/goods should debit the appropriate account/fund (ledger class 12 or 22) and expense BUOB. The department/unit that provided the services/goods should post the credit to the appropriate 93### account/fund, ledger class 12 and BUOB 81. The PI or his/her designee should then initiate a BA to budget the corresponding debit in the 93### account/fund expense on LC 12 in BUOB 50 and the expense credit on LC 12 BUOB 81. A copy of the ID should also be forwarded to either OSRS so they can post the corresponding budget adjustments.

Example: Interdepartmental Transaction for $1,000

Department Receiving Goods – ID Debit 22-3YZZ-54###-34
Department Providing Goods – ID Credit 12-30ZZ-93###-81
Department – Increase Budget 12-30ZZ-93###-81
Department – Increase Budget 12-30ZZ-93###-50
SPA – Increase Budget 22-30ZZ-55###X-35
SPA – Decrease Budget 22-30ZZ-55###X-50

E. The PI should post the expenses related to the product or services to the “X” account/fund associated with the grant. The free balance on the LC 22 of the “X” account/fund will be reduced as the expenses are encumbered/incurred. On a monthly basis, an automated journal entry credits the BUOB 50 on the LC 22 “X” account/fund and debits the BUOB 50 on the 93### account/fund, for an amount equal to the actual expenditures posted to the “X” account/fund during the month. This monthly entry matches the program income expenses incurred on the “X” account/fund to the actual program income revenue on the 93### account/fund.

F. A monthly report is reviewed by OSRS that identifies situations in which the 93 and the “X” accounts are out of balance and require reconciliation. OSRS will communicate these issues to the PI’s department, as applicable.