Extension Cost Recovery and Fee Information
Western Region Program Leaders Committee (WRPLC)
Compiled by Bill Braunworth; Oregon State University; April, 2010
The WRPLC recently gathered information on cost recovery and or fee policies of our universities. Below is a list of the
related web sites and/or documents that covers this topic for several universities in the west. The purpose of this report
is to assist our universities in exploring new possibilities for revenue generation and cost recovery.
 University of Arizona:
http://cals.arizona.edu/extension/employee/pandp/chap7.html#70103
Information provided by:
Edward C. Martin, Ph.D.
Associate Director, Programs
Cooperative Extension
301 Forbes Building
PO Box 210036
Tucson, AZ 85721-0036
Tel: (520) 621-5308
Fax: (520) 621-1314
 University of California policy:
The UC Cost Recovery (Fee) Policy from the ANR Administrative Handbook Section 292- here is the link:
http://danr.ucop.edu/admin-handbook/200/292%20COST%20RECOVERY.pdf
Information provided by:
Linda Marie Manton, Director
UC-ANR Central Valley Region
Kearney Research and Extension Center
9240 S. Riverbend Avenue
Parlier, CA 93648
lmmanton@uckac.edu
OFFICE Direct Line: 559-646-6531
Administrative Assistant: 559-646-6543
FAX: 559-646-6513
 Colorado State University policy:
At Colorado State University, campus does not collect user fees. Counties are encouraged to collect user fees, and the
funds are available to support travel within their county clusters. Please see our policy at the following web site:
http://www.ext.colostate.edu/staffres/userfee/index.html
 Oregon State University:
Oregon State has a policy related to fee based instruction for credit and non credit instruction at this web site:
http://extension.oregonstate.edu/internal/sites/default/files/documents/FeebasedInstructionPolicy.pdf
Information provided by:
Bill Braunworth
Agricultural Sciences and Natural Resources Extension Program Leader
College of Agricultural Sciences
138D Strand Agriculture Hall
Corvallis, OR 97331-2201
(541) 737-1317 (phone)
(541) 737-3178 (fax)
 Washington State University:
Washington State University’s policies extend to “service centers,” charging for publications, charging for satellite
downlink use, and charging volunteers for training. Most faculty maintain service center accounts and frequently charge
for program delivery, workshops, etc. These resources are then made discretionary and the faculty member may use for
any legitimate program-related expense. In some cases, faculty have collected very significant revenues from program
delivery (in excess of $100,000 per year). WSU tries to make these programs as incentive-based as possible; however, a
small tax is under consideration to fund information technology and other administrative inputs. The proposed tax is 5%
of gross receipts. In addition, all service center accounts are taxed by central WSU administration.
Links to policies and procedures:
Service Centers: http://ext.wsu.edu/admin/service_centers.html
Charging for Publications: http://ext.wsu.edu/admin/PDF/PubSales.pdf
Charging for Satellite Downlinks: http://ext.wsu.edu/admin/satellite.html
Charging for Volunteer Training: http://ext.wsu.edu/admin/charging.html
Information provided by:
John A. Winder, PhD
Assistant Director
Washington State University Extension
PO Box 646248/Hulbert Hall Room 411-C
Pullman, Washington 99164-6248
509-335-2933 (office)
509-335-2926 (fax)
jwinder@wsu.edu
http://ext.wsu.edu/
 University of Idaho policy (see the text below):
Information provided by:
Paul McCawley
Associate Director
University of Idaho
Ag Science Building, Room 52
Moscow, ID 83844-2333
Phone: (208) 885-5883
e-mail: mccawley@uidaho.edu
FORWARD
University of Idaho Extension receives funding from public and private sources for its educational programs and projects.
Public funds include annual appropriations or grants from federal, state, and county governments. Private funds include
private grants, contracts, gifts, and fee revenues. In an era of increasingly tight public funding, it is necessary to increase
private funding levels so that we may continue to offer quality programs and services to our extension clientele.
This document outlines policy and procedures for recovering costs associated with the programs, educational materials,
and services we offer to extension clientele. Cost recovery fees have historically been a limited source of funding for us.
However, this is one area where we can become more efficient and generate additional funding, particularly when
individuals receive a private benefit (food, materials, or personal services) that does not translate to a direct benefit to
the public.
Cost recovery for programs, educational materials, and services is not a new concept for University of Idaho Extension,
but it needs refinement. County offices, academic units, and administrative support units have varied approaches in this
area and, subsequently, inconsistencies in our application of fees across Extension. Further, we have not fully maximized
our opportunity to recover costs due to a lack of understanding of which costs may be recovered and those that may not
be recovered within federal and University regulations. Uniform policy for all UI Extension cost recovery efforts is
essential to ensure compliance with federal and university regulations and ensure consistency in setting fees and
accounting for program revenues. A uniform cost recovery approach will also allow us to maximize revenue
opportunities that we may use to enhance and expand our extension work while maintaining accountability to funding
sources.
FEDERAL COST RECOVERY REGULATIONS
United States Department of Agriculture Administrative Handbook for Cooperative Extension Work
Chapter 3—Financial Operations: User Fee Regulations
User fees may not be charged for educational programs if those fees are intended as a substitute for other public funds
appropriated 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 that 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 charged cover only the cost incurred and that the extension
clientele understand the nature and purpose of fees charged.
National Association of State Universities and Land-Grant Colleges Extension Committee on Organization and Policy
(ECOP) Alternative Revenue Report Statement of Funding Regulations and Definitions Relating to USDA Legal Rulings and
Administrative Guidelines (http://PODC.unl.edu/docshome.htm):
1. Clearly preclude charging user fees to offset the salaries of Cooperative Extension faculty and staff who are funded
at least in part with county, state or federal general purpose revenues. In compliance with this federal policy, state
and county cost recovery efforts may not extend to the salaries of these personnel.
2. Require that fees not be substituted for state or county appropriated funds.
3. State that fees can cover only the cost incurred and that clients be informed what the fee includes.
Aside from the exceptions cited below, USDA policy further denies charging user fees for "basic educational services"
which are defined as:
1. Identifying county and statewide issues and developing related educational programs conducted by agents,
specialists, and trained volunteers.
2. Providing access to the knowledge and research base of the University through the applied research and
instructional offerings of University-based specialists.
3. Providing instruction, conducting applied research, and evaluating programs following plans of work.
Per USDA guidelines, educational activities and service for which fees may be charged to partly or wholly recover costs
include the following (note: Some grants—soft money may not allow charging):
1. Services that enhance the basic educational program, such as mediated instruction (i.e., providing the same face-toface interaction through distance delivery as is provided in the classroom; e.g., an on-site instructor).
2. Transmission and associated costs (e.g., video conference production and transmission expenses), publications and
other materials, computer analysis, computer software, and the overhead costs associated with providing these
types of enhanced services.
3. Conference-related activities that contribute to agent and specialist teaching, such as expenses for outside
instructors, materials, specialized electronic equipment, audiovisual equipment, and rental costs for meeting rooms.
4. Services provided for extension-related organizations. Such services include printing and distributing newsletters,
rental costs for meeting rooms, and providing expendable supplies. The financial contribution of these organizations
should be accounted for as an offset to overall county extension office budgets. Examples: commodity groups, green
industry, and AARP.
5. Supplemental educational services such as soil testing, pressure canner gauge testing, well water testing, and bull
testing.
6. Supplemental educational programs funded entirely through county or private sources.
Non-educational costs, such as meals and refreshments, are always subject to full cost recovery.
General Policy Guidelines
The following guidelines apply to all programs and activities that are supported with appropriated dollars, including all
State and Federal budgets and all University of Idaho “Y” accounts.
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At this time, it is a choice to recover incidental costs, not a requirement.
All activities for which fees are charged must be consistent with the mission and current program direction of
University of Idaho Extension.
The opportunity or need to collect fees shall not be a determinant in setting program priorities, evaluating program
results, or in evaluating employee performance.
Revenue generated from program fees shall be used exclusively for expenses related to the enhancement of
University of Idaho Extension programs.
University of Idaho Extension programs are open to all regardless of their ability to pay. Provisions must be made to
reduce or waive fees when an individual is unable to pay. Brochures and materials listing a program fee must also
state that the fee will be reduced or waived when an individual makes it known that they are unable to pay the fee.
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.
o A budget of all expenses to be paid with user fees should be developed.
o An estimate of the number of participants paying a fee should be developed.
o
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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.
Specific Cost Recovery Policies and Procedures
1. A cost recovery worksheet shall be completed for each hosted event whenever collection of a fee is planned for the
program. A cost recovery worksheet is recommended for each hosted event, whether or not a fee is planned for the
program.
2. Compliance - A fee must comply with the all federal Civil Rights and Smith-Lever laws and regulations.
3. 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.
4. 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.
5. Announcement of Charge - A statement must be included in any program announcement whenever a fee is charged.
The statement should include a general explanation of charges (e.g., fees will help cover the costs for speakers and
printed materials distributed to attendees). Also, announcements must 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.
6. A copy of the registration form and cost recovery worksheet must be attached to the document used to purchase
the food and beverage, and must be maintained in a file.
7. 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 UI Extension County Operations Handbook Conflict of Interest Policies for
additional details).
8. All funds collected must be deposited into the same UI/CALS account or official County Extension account from
which expenses were paid. All expenses paid must be paid from a UI/CALS account or from a County Extension
account. We do not maintain petty cash funds and pay no expenses with cash collected.
University of Idaho Extension – Cost Recovery Worksheet
Title of Program:
Date of Program:
Faculty Member in charge:
UI/CALS account number:
Expected Number of Participants:
County account number:
Materials
Expenses
Explanation
Copies
Paper (for handouts)
Postage
Other
Logistics
Room rental
Bus rental/transportation
Compressed video rental
Advertising
Other
Equipment
Other
A V rental
Other
Other
Coffee/tea/beverages
Paper goods (plates, cups,
Meals
napkins)
Breakfast(s)
Lunch(es)
Dinner(s)
Snack(s)
Other
Other
Speaker
Costs
Mileage
Lodging
Per diem
Other Personnel
Honoraria
Temporary/hourly
Overload/overtime
Other
8% G & A (fee for “Y” accounts)
Total Costs:
Cost per Participant:
Budget Prepared by: ________________________________________________
Cost
 University of Nevada policy (see the text below):
Information provided by:
John Burton
Assistant Director
University of Nevada
Dean and Director’s Office/MS 404
Reno, NV 89557-0404
Phone: (775)784-7070
e-mail: BurtonJ@unce.unr.edu
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 SmithLever 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.
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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.
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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.
….file: Cost Recovery (WRPLC) April 2010.docx….