types of funding that cooperative extension brings in from outside the university and counties

A PRIMER ON BRINGING FINANCIAL RESOURCES INTO

COOPERATIVE EXTENSION

Workshop Overview

Types of funding that Cooperative Extension brings in from outside the University and Counties

Revenue Producing Activities (RPA’s)

UWEX Cooperative Extension is involved, on a continuous basis, in a variety of activities that produce revenue from outside the University and Counties.

Examples of various CE sales activities: Sales of publications, Conferences and workshops sponsored by the University, Production (video, publications) and program evaluation

services for departmental outreach staff. Specialized goods or services produced by departments

and sold to external audiences Sales of outreach by-products including reports

County offices must consider specific UW System policies and procedures, Extension polices and procedures, and Cooperative Extension’s mission when engaging in the sale of goods and services and establishing rates.

Everything we do must be mission related.

Purpose to which we commit …We teach, learn, lead, and serve,

connecting people with the University of Wisconsin, and engaging with them in transforming lives and communities.

Council for Strategic Change, December 21, 2009

Cooperative Extension Principles which guide revenue

enhancement:

Maintaining local county offices staffed with core faculty. Composition of the staff is determined through consultation between state and local partners. Core faculty positions require funding support from continuing sources.

Working collaboratively with partners to develop programs that address local needs and involve constituents in public work.

Making the best possible use of public funds and using public funds for the benefit of the public.

Public Good vs. Private Good

Fees are generally not assessed when the program or services are in the public good.

Partial cost recovery is usually justified for programs or services that may be targeted to a group, and where public good and personal gains are within reasonable balance. In such programs the content is usually easily modified or customized, and can be easily be used in different settings with other audiences.

Full cost recovery is recommended when the programs or services have been developed for a specific individual, group, or business that realizes primary economic benefits.

Smith-Lever Guidelines

Cooperative Extension Service is publicly funded. We provide tax supported services. We are meant to serve the public at little or no cost.

Chapter 3 of the Administrative Handbook for Cooperative Extension Work:

The imposition of user fees for core Extension educational programs is inconsistent with the statutory purposes of the Smith-Lever Act.

It is permissible to charge fees for incidental costs if the proceeds are used in furtherance of Extension work. For example, the recovery of costs related to the printing, mailing, and handling of Extension publications is permitted. 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 charged cover only the cost incurred and that the Extension clientele understand the nature and purpose of fees charged.

Definitions:

Grant – A grant represents a mutual joining of interests on the part of the grantor and grantee institution in the pursuit of common objectives. The grantee institution has the responsibility to assure that the grant funds are utilized for the purpose for which they were awarded, and to exercise the same integrity and prudence in their expenditure that is extended to the use of the grantee institution's own funds.

A grant is distinguished from a contract in that a grant does not constitute the procurement of goods and services by the grantor. The grant is a unilateral act.

Definitions (continued):

Contract – A contract is a promise between two or more parties which usually involves the procurement of goods and services by one party or parties and the rendering of goods and services by the other party or parties. Contracts can be fixed price contracts or cost-reimbursement contracts.


Gift – An award given freely, not in exchange for goods or services, with few or no conditions specified.

To qualify as a gift to the institution, the funds must meet all of the following criteria: Funds provide general, unrestricted support for broadly

defined activities in one or more program areas. Detailed reports are not required. No provisions are imposed by the donor concerning

publication of data and information derived from the activity. There is no specific time limit on the expenditure of funds. Rights to any patent/copyright are not retained by the donor.


Honorarium – A token sum freely given in recognition of a service; cannot be a fee charged for a service.


Program Revenue – Funds generated from a fee charged for the sale of products owned by the university or services performed by university employees or for admission to an event.

Source of funds

When bringing resources in to Cooperative Extension the first consideration is the funding source.

There are three sources of funds that can be deposited in University administered accounts. Federal, State, and Local Municipalities External Organizations Educational Program Participants

Source of funds

The source of funds, the reason the funds are being provided, and any restrictions on the funds will determine how the funds are processed and accounted for.

These considerations are summarized in the following decision tree.

Source of Funds

Federal, State, or Local Municipality

Is there a defined scope of work, a specific budget,

and specified terms and conditions?

Program Revenue*

Are the funds being provided in

exchange for goods or services?

Grant

Contract

External Organization

Is there a defined scope

of work, a specific

budget, and specified terms

and conditions?

Have the funds been provided in exchange

for goods or services?

Gift

Program Revenue*

Have the funds been provided in exchange for

goods or services?

Contract

Grant

Educational Program Participant

Program Revenue*

No

No

No

No

No

YesYes

Yes

YesOver $5,000?

Over $5,000?

Yes

Examples

Funds from Federal, State, and Local Government

Federally Funded Grant