Financial Reporting- Income Vs Liability

Good Day,

I work for an organisation that recieves grants for specific programmes.
We submit a budget and when the funding is recieve form a donor it is classified in our accounts as a liability.
Any unused funds remains as a liabilty and would be returned to the donor if the programme is discontinued.

The only sums that are classified as income are those for management fees charged by our organisation for carrying out the programme.

Is this accurate?
In our financial statements it is a liability and I agree with that classification but should this be classified as other income?