WIOA Title I-A & I-B Policy & Procedure Manual
Ch. 4) Fiscal Management



4.6 Program Income

Effective date: September 23, 2020

Background

Program income is gross income earned by the non-federal entity that is directly generated by a supported activity or earned as a result of the federal award during the period of performance.1

Program income does not increase the amount of the funds that were authorized for the subaward. It is considered additional revenue available for use in support of the allowable subaward activity.

Program income must be expended on allowable subaward activities. It is subject to all WIOA requirements, except for the administrative cost limitations.

Types of Program Income

Program income includes, but is not limited to, income from the following:

  1. Fees for services performed2
  2. The use or rental of real or personal property acquired under the grant funds3
  3. The sale of commodities or items fabricated under a federal award4
  4. License fees and royalties on patents and copyrights5
  5. Interest earned on funds received under WIOA6
  6. Any excess of revenue over costs incurred for services provided7
  7. Fees from employers to use services, faculties or equipment8

Program income does not include the following:

  1. Interest earned on advances of federal funds9
  2. Rebates, credits, discounts, any other interest earned on them10
  3. Proceeds from the sale of real property, equipment, or supplies11
  4. Taxes, special assessments, levies, fines, and other such revenues raised by a subrecipient12
  5. Income earned after the period of subaward performance13

Accounting for Program Income

The deduction method, described at 2 CFR 200.30714 and required by Appendix A: WIOA Award Terms and Conditions , must be used for all program income earned under WIOA. Deduction method means ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the federal awarding agency authorizes otherwise. Program income that the non-federal entity did not anticipate at the time of the federal award must be used to reduce the federal award and non-federal entity contributions rather than to increase the funds committed to the project. The non-federal entity must disburse funds available from program income earned on such funds before requesting additional cash payments.15

If the program income is not utilized in the grant period, it must be returned to DWD.16

Reporting of Program Income

The local Workforce Development Board (WDB) must ensure that subrecipients and subcontractors are aware that all program income must be accounted for and reported to the local WDB. The local WDB must record all program income and report it to DWD on the monthly Financial Status Reports within COMET. Program income expense and revenue must be reported on separate lines in the Financial Status Report. Any cash-on-hand from program income must be liquidated before the WDB may request additional WIOA cash for any purpose.