1 FEE-FOR-SERVICE AND PROGRAM INCOME TRAINING Presented by:
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Transcript of 1 FEE-FOR-SERVICE AND PROGRAM INCOME TRAINING Presented by:
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FEE-FOR-SERVICE AND PROGRAM INCOME TRAINING
Presented by:
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DEFINITIONS – SIMPLIFIED
Fee for Service – Amount charged to a customer for specialized services or goods.Dollars received before costs.
Program Income – Net revenue received from a fee-based activity.Remaining dollars after costs.
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PROGRAM INCOME EXAMPLES
Net Revenues– From fee-for-services– Use or rental of property acquired with grant funds– From sale of items fabricated under a grant
agreement
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Program Income DOES NOT Include
Interest on grant funds Rebates Credits or refunds Discounts Special assessments or fines charged by a grantee or
sub-grantee are not program income unless the revenues are directly tied to the grant agreement or federal agency regulations are program income. The same is true for license fees or royalties for materials developed.
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USES OF PROGRAM INCOME
Program income is used for the purposes and under the conditions of the grant agreement for which it was received.
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METHODS FOR ACCOUNTING FOR PROGRAM INCOME
Deduction – Subtracted from total allowable costs to calculate net allowable costs.
Addition – Added to the federal and non-federal funds. Excess is deducted against total allowable costs.
Cost Sharing – Used as matching funds. The federal grant does not change. Excess is deducted against total allowable costs.
*Check with your state and federal agencies for specifics.
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WHY CHARGE?
Meet market demand Generate additional moneys Expand service menu Utilize staff expertise Offset costs
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OVERARCHING RULES
Generally, may charge for specialized activities so long as it does no impede standard services to eligible customers.
For WIA, specifically section 195 states– – May charge for intensive and/or training services for non-WIA
eligible individuals– May not charge an individual a fee for placement or referral in
or to a WIA activity– May charge employers for specialized services for incumbent
workers Program income should be retained and used to
continue to carry out program activities Must keep clear records of fees and uses
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EXAMPLES: FEE-BASED JOB SEEKER SERVICES
Specialized Testing Specialized Assessments Specialized Workshops
– Note: Fees may only be charged to non-WIA eligible individuals - these services cannot be a part of standard core service offering.
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EXAMPLES: FEE-BASED BUSINESS SERVICES
Targeted Recruiting In-Depth Screening/Assessment Specific Job Profiling Specialized Workshops Comprehensive Outplacement Customized Surveys Job Fairs/Special Events Room Space Rental HR Consulting
– Employee Handbooks– Job Descriptions– Exit Interviews– Mediation
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“REAL WORLD” EXAMPLES- Canton, Ohio 2005-2007
Outplacement $ 5,500* Handbooks $ 700 Job Fairs / Events $ 3,000 Job Profiling $ 4,200 Room Rental $ 6,100 Exit Interviews $ 0**
*Includes $2,500 donation
**Demonstration project
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DEVELOPING YOUR MENUAND FEE STRUCTURE
Research competition in marketplace Ask current customers Discuss with Chambers/Associations/HR Groups Network with WIBs in other states
– What’s currently being done – what’s charged?– What’s missing/needed – what’s the price point?– What are the costs/benefits for us to do this?
ONCE THE MENU IS SET, IMPLEMENT FIRM POLICIES TO SUPPORT!!!!
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ADMINISTRATIVE CONSIDERATIONS
Implement clear, written policies– Avoid unfair competition– Standardize contracts/agreements– Specific payment terms and collection methods– Accounting for and use of program income
Ensure compliance– Legal review– Local, federal, state clearance
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STAFFING CONSIDERATIONS
HR experience Sales personality Knowledgeable of polices and laws Flexible, non-bureaucratic Ability to follow up, including collections
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OFFERING SERVICES
Cold Calls Advertising Demonstration Projects Networking
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COLD CALLS
Inquire about needs “Pitch” services Clear, straightforward – no apologies, no
jargon
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ADVERTISING
Reference fee-based services along with other services*
May include general rates Customer testimonials
*Assists in preventing claims of unfair competition.
Remember: You CANNOT use federal funds for marketing purposes!
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DEMONSTRATION PROJECTS
Good way to try out a new service Specialized need No charge first time in exchange for
constructive criticism or testimonial
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NETWORKING
Chambers of Commerce Industry Associations HR Groups Events Referrals
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ACCOUNTING FOR AND USING PROGRAM INCOME
Set up separate account(s) Prompt, clear invoicing with specific payment
terms Collection ability / reminders Uses – related to workforce activities Audit trail to track program income and uses Track results – costs/benefits
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LET’S GET STARTED
Research marketplace Develop menu and fee structure Establish clear, specific policies
– How offered– Invoicing and collections– Accounting/uses
Implement an outreach plan Track results Modify services and fees as needed – be flexible!
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HELPFUL SOURCES
WIA Law 105-220 – Section 195(7)
WIA Final Regulations – 20 CFR, Part 667, Section 667.200(a)(5-7)
Uniform Admin. Require – Non-Profits, Etc.– 29CFR, Part 95, Section 95.23 & 95.24
Uniform Admin. Require – State & Local Govt.– 29CFR, Part 97, Section 97.24 & 97.25
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MORE INFORMATION? DOL – ETA CONTACT
Nancy P. Williams
Office of Grants and Contract Management
Division of Policy Review and Resolution
Phone: 202-693-3523
Email: [email protected]
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TRAINING SPONSORED BY:
