Common use of Fee Income Clause in Contracts

Fee Income. 4.1 The fees should be set at a level to cover all costs other than post of responsibility allowances. These would include costs of tuition, secretarial and caretaking services, lighting, heating, equipment, advertising, etc. 4.2 Fees should be pitched at a level which equals at least 130% of the tuition cost. 4.3 For second chance courses, there are exemptions which allow for a reduction in fees to 30% of tuition costs for the unwaged. 4.4 As adult education activities will be required to self-finance all costs (with the exception of post of responsibility allowances) there is a case that they be allowed retain any surplus remaining after current operating costs are met for re-investment in the adult education programme. Arrangements will be examined whereby such surpluses could be made available to the school/VEC to assist the development of the adult education programme and to subsidise participants where a reduction in fees is warranted. In the case of VECs it Is envisaged that surplus funds generated by individual schools will, in the main, be returned by the schemes to those schools. Appropriate accounting arrangements will need to be put in place.