managing tough times iowa state university extension fee generation julie lyon contract and grant...

MANAGING Tough Times

Iowa State University Extension

Fee Generation

Julie Lyon

Contract and Grant Accountant


Agriculture

Community and

Economic Development

Business and Industry

Youth and 4-H

Families

Iowa State University Extension


• Iowa State University Extension first began developing it’s cost recovery policy in FY 2001

• Dr. Stanley R. Johnson, ISU Vice Provost for Extension, established a committee to consider alternative revenue sources and cost recovery strategies (user fees, institutes, grants and contracts) to continue funding quality programs and services

• On March 23, 2001, the final draft of the “Recommendations to Guide Future Cost Recovery Policy for Iowa State University Extension” was completed.


Reasons for recovering the cost of providing these services

• Era of increasingly tight budgets with reductions in federal and state budget allocations

• Assure that Extension can maintain quality public programming by replacing the resources utilized by more specific requests

• Assure that Extension is not unfairly handicapping private providers of commercial services by providing a free publicly subsidized alternative


Interim Administrative Handbook for Cooperative Extension Work, 1993

Chapter III, Financial Operations

Section J-16 of the administrative handbook states:

“7 CFR 3015, Subpart F, allows for the recipients of assistance to charge user fees that then will be counted toward program income. However, the imposition of user fees for core Extension educational programs is inconsistent with the statutory purposes of the Smith-Lever Act.”


“Therefore, users fees may not be charged for education services especially if the proceeds are to be used to augment the operational cost of the Cooperative Extension Services in substitution of State appropriations for that purpose. However, it is permissible to charge fees for incidental costs if the proceeds are used in furtherance of Extension work.”

Fees generated by ISUE are not used as a substitute for state funding; instead, the fees are used to supplement

and replace (i.e. maintain, enhance, or expand) state funding used for the educational outreach of ISU

Extension.

Interim Administrative Handbook for Cooperative Extension Work, 1993

Chapter III, Financial Operations - Continued


Extension programs and services are provided for the public good with general benefits to:

Society as a Whole Cross-section of society


When we apply expertise gained in public programming to individual situations where the economic benefits accrue to a small easily defined population, Extension needs to recover the cost of providing those services.

Farm Leasing and Estate Planning

Market Analysis

Wind Energy


Program Categories

Category 1 – Programs/services fundamental to ISUE’s mission and which benefit society as a whole = no charge or a charge to cover out-of-pocket expenses

Category 2 – Programs/services that are highly targeted and context specific (i.e. apply to a cross-section of society) = charge to cover out-of-pocket expenses plus personnel and travel costs


Category 3 – Programs/services designed for specific individual, group, or business = charge to cover out-of-pocket expenses, personnel and travel costs, and system costs

Program Categories – Continued

Category 4 – One-on-one consulting services provided to a specific individual, group, or business = program unit deter-mines the maximum number of consulting hours offered at no charge and sets a cost recovery fee that will be charged for con-sulting hours over the at no charge maximum


Guiding Principles

• Advance ISUE’s mission

• Be ethical, legal, and not compromise ISUE’s integrity

• Used to maintain, enhance, or expand the educational outreach of ISUE

• Support priority programs and services

• Be the responsibility of all ISUE employees

• Programs and services must be open to all regardless of the individual’s ability to pay


• Improve teamwork and interdisciplinary efforts for an ever-increasing program/service impact

• The cost/benefit ratio of programs must be examined and timely decisions made regarding the priority of the program or service

Guiding Principles - Continued

• All ISUE personnel and Extension Councils will receive education and support for managing cost recovery fees


Program Costs and Revenue Generation Worksheet

PROGRAM/SERVICE:

STAFF MEMBER(S): DATE:

Partners:

Table A Calculated Program/Service Cost Budget Actual County Actual ISU

Out-of-Pocket Costs NOTES

Refreshments, Meals

Publications, Handouts, Materials

Room Rental

Postage and Advertising

Supplies and Equipment

Costs of non-Extension Speakers

Other Out-of-Pocket Costs

Subtotal Out-of-Pocket Costs $ - $ -

Personnel and Travel Costs

Support Personnel Salary/Benefits (from Table B) $ - $ -

Support Personnel Travel $ - $ - $ -

Extension Personnel Directly Involved Salary/Benefits (from Table B) $ - $ -

Extension Personnel Directly Involved Travel $ - $ - $ -

Other Personnel and Travel Costs

Subtotal Personnel and Travel Costs $ - $ - $ -

Total Calculated Program/Service Costs $ - $ - $ -

Total Actual Costs $ -

Number of Participants

Cost per Participant #DIV/0! #DIV/0!

Table B Personnel and Travel Cost Calculations: Actual

Salary/Benefits Travel Sal/Ben County ISU

Support Personnel Hours Ave $ per Hr Cost Travel Cost Travel Travel

$-

$-

Total Support Personnel Cost $ - $ - $ - $ - $ -

Direct Personnel Hours Ave $ per Hr Cost Travel Cost Travel Travel

FS $-

Other ISU $-

CEED $-

Total Direct Personnel Cost $ - $ - $ - $ - $ -

Table C ACTUAL INCOMETotal Amount or Totals INCOME VS. ACTUAL COSTS

Number Fee per __ OVER UNDER

Participants $ -

$ - $ - Partners (In-Kind or Actual) $ -

Other (Grants, Donations, etc.) $ - How this worksheet splits Income if Over Or Under Actual

Costs Total Income $ -

Table D Revenue Generation Summary BUDGET ACTUAL if Over ACTUAL if Under

OVER =ISU gets Total Budgeted Costs and County gets Remainder. UNDER = County gets out-of-pocket costs up to

Income limits. ISU and County split any Remainder over out-of-pocket costs using the ratio of County Total Direct Costs to ISU

Total Direct Costs.

Amount to Remain In County $ - $ - $ -

Projected Remitance to ISU $ - $ - $ -

Costs Underwritten by County

Costs Underwritten by ISU

Signatures (Required):


Iowa State University Extension Remittance Form for Revenue Generation from Field

Date:

To: Extension Finance Office2280 Beardshear HallAmes, IA 50011-2026

From: _________________ County Extension Office_________________ Name of person sending remittance_________________ Signature of person sending remittance

_________________ E-mail address of person sending remittance

RE: Dollars for Revenue Generation

Use a separate remittance form for each check.

Enclosed is a check, payable to Iowa State University, representing dollars that have beenreceived for salary/benefits of ISU paid staff or for travel of ISU paid staff.

Person for Whom Program Amount Amount Event/ Date

Dollars were Received Field Spec Area for Salary for Travel Activity of Event

Example Smith, Susan FS Families $100.00 $25.16 Speaker @ After-school 9/15/2005

#1 ___________________ ________ ________ _______ _______ _____________ _______

#2 ___________________ ________ ________ _______ _______ _____________ _______

#3 ___________________ ________ ________ _______ _______ _____________ _______

#4 ___________________ ________ ________ _______ _______ _____________ _______

#5 ___________________ ________ ________ _______ _______ _____________ _______

#6 ___________________ ________ ________ _______ _______ _____________ _______

#7 ___________________ ________ ________ _______ _______ _____________ _______

#8 ___________________ ________ ________ _______ _______ _____________ _______

#9 ___________________ ________ ________ _______ _______ _____________ _______

#10 ___________________ ________ ________ _______ _______ _____________ _______

TOTAL $0.00 $0.00

Grand Total of Check $0.00Send a copy to Program DirectorKeep a copy for your County records


• Database information can be sorted and printed in a wide variety of formats, such as:

• By person• By program• By time period• Personnel Costs only• Travel only• Any combination of the above


ISU Extension County OfficesPrior to 2009 Reorganization


ISU Extension User Fee Annual History


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