University of Nevada Cooperative Extension Guidelines for Cost Recovery and User Fees

University of Nevada Cooperative Extension Guidelines for Cost Recovery and User Fees

(Adopted by EGB on March 2, 2000)

University of Nevada Cooperative Extension is funded through annual appropriations from federal, state, and county levels, and supplemented by revenues from other sources, such as grants. User fees and external support provide opportunities to extend resources and maximize impacts.

Cooperative Extension has its legal basis in the Smith-Lever Act passed by Congress in 1914, subsequently updated and amended. The Act prohibits the charging of fees for programs supported by Smith-Lever funds to cover ongoing costs of salaries and support. The current USDA Administrative Handbook for Cooperative Extension Work (May 1994) cites the following User Fee policy for Smith-Lever funds:

"the imposition of user fees for core Extension educational programs is inconsistent with the statutory purposes of the Smith-Lever Act. Therefore, user fees may not be charged for educational 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. For example, recovery of costs related to the printing, mailing and handling of Extension publications is permitted, provided fees received are returned to the Extension program. In addition, fees may be charged for services which are considered non-educational in nature such as soil and water testing, forage testing, and farm record analysis."

Registration fees may be charged for Extension-sponsored workshops for incremental costs associated with the cost of conducting the workshop. It is imperative that the fee charges cover only the additional costs that relate directly to the workshop being given.

Points to Consider in Establishing User Fees

1. Programs should be dictated by educational needs and the capabilities of Cooperative Extension to meet those needs. They should not be dictated by their potential to generate income. Although program fees will enhance the opportunities for Extension personnel to conduct programs, all programs must be designed with the purpose to achieve educational goals.

2. Whenever Extension personnel are giving a conference or workshop and costs will be incurred that are to be paid from user fees, appropriate budgets need to be prepared in order to establish the registration fee. This budget information should be shared with the individual's supervisor, as well as the individual responsible for tracking and reconciling the budget.

·  A budget of all expenses to be paid with user fees should be developed.

·  An estimate of the number of participants paying a fee should be developed.

·  The amount to charge each participant will be calculated by dividing the total expense developed above by the number of participants estimated above.

·  Remember it is important to develop your budgets and estimates in such a way as to cover those costs directly related to the conference or workshop because you will need to find another funding source to cover any revenue shortfalls.

3. Any program for which fees are charged must be in accord with the mission and ongoing programs of Cooperative Extension.

4. To the extent possible, individuals must not be denied the opportunity to enroll in a program because of inability to pay a fee. If a fee is charged, provision must be made to waive or reduce the fee, when possible, for individuals unable to pay. Equal Program Opportunity regulations under Civil Rights legislation require that all interested persons have access to Extension resources and opportunities.

5. Funds should be deposited at least once a week and more often when large amounts of money are collected. As a general rule, no more than $20 in cash or $100 in checks should be accumulated before a deposit is made.

Policies

Cost Recovery - The following guidelines apply to all Extension staff in the equitable and consistent implementation of participant fees as a source of program support:

1. Compliance - A fee must comply with the federal Civil Rights Act, Smith-Lever Law. Fees charged for programs supported with Smith-Lever funds must include only the costs allowed to be recovered through fees.

2. Incidental Costs - Program fees may be charged to cover incidental costs such as non-Extension speakers, meeting room or equipment rental, distributed materials and food service. Program support costs covered by Smith-Lever funds such as office space, faculty and staff salaries, building maintenance, etc., should not be charged to participants.

3. Seasonal or Temporary Personnel - Program fees may be charged to cover salary/personnel costs for seasonal or temporary staff hired to conduct Extension educational programs.

4. Announcement of Charge - A statement must be included in any program announcement whenever a fee is charged. The statement should include an explanation of charges and explain the availability of scholarships or other options for individuals unable to pay. If the fee includes the cost of hosting activity (food, beverage), then the registration form must specifically state that the fee includes those hosting costs. A copy of the registration form must be attached to the document used to purchase the food and beverage. The purchasing document must be signed by the Dean.

·  Suggested Statement For A Program or Activity: "A fee is charged for this Extension program to cover costs. A limited number of scholarships are available to individuals unable to pay."

·  For A Letter Series or Monthly Newsletter: "A fee is charged for this Extension publication to cover the costs. No person shall be denied access to the information provided through this program because of inability to pay."

5. Extension staff cannot be personally compensated while functioning in the role for which they are employed. Honoraria or other forms of remuneration can only be accepted on behalf of the organization and used to enhance or supplement educational programs (see Cooperative Extension Conflict of Interest Policies for additional details).

6. All funds collected must be deposited into a UNR account. All expenses paid must be paid from a UNR account. We do not maintain petty cash funds and pay no expenses with cash collected.