1. 1 FEE-FOR-SERVICE AND PROGRAM INCOME TRAINING Presented by:

2. 2 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.

3. 3 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

4. 4 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.

5. 5 USES OF PROGRAM INCOME Program income is used for the purposes and under the conditions of the grant agreement for which it was received.

6. 6 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.

7. 7 WHY CHARGE? Meet market demand Generate additional moneys Expand service menu Utilize staff expertise Offset costs

8. 8 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

9. 9 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.

10. 10 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

11. 11 “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

12. 12 DEVELOPING YOUR MENU AND 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!!!!

13. 13 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

14. 14 STAFFING CONSIDERATIONS HR experience Sales personality Knowledgeable of polices and laws Flexible, non-bureaucratic Ability to follow up, including collections

15. 15 OFFERING SERVICES Cold Calls Advertising Demonstration Projects Networking

16. 16 COLD CALLS Inquire about needs “Pitch” services Clear, straightforward – no apologies, no jargon

17. 17 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!

18. 18 DEMONSTRATION PROJECTS Good way to try out a new service Specialized need No charge first time in exchange for constructive criticism or testimonial

19. 19 NETWORKING Chambers of Commerce Industry Associations HR Groups Events Referrals

20. 20 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

21. 21 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!

22. 22 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

23. 23 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: williams.nancy@dol.govwilliams.nancy@dol.gov

24. 24 (330) 284-2601 sharon@sharonparry.com My Contact Information: 402 Golden Bear Dr. Austin, TX 78738

25. 25 TRAINING SPONSORED BY: