4000-1-3 Administrative Fee

Policy

1. It is the policy of the College to charge an administrative fee against those contracts and agreements that are deemed to be projects over and above the normal programs funded by the government and Ministry of Colleges and Universities.
2. These contracts and agreements may include the following activities:
   1. teaching or training services,
   2. job development programs,
   3. course preparation or development,
   4. seminars, conferences, and workshops,
   5. facility usage or rental.
3. The administrative fee represents those costs, above and beyond the direct costs, to administer and operate a contract or an agreement. They are costs that are not readily identifiable with the activities of the contract or agreement but are incurred by the College to ensure the successful delivery of the contract or agreement. These costs include the following items:
   1. Administration - includes expenditures for activities to provide administrative support for the delivery of contracts or agreements such as finance, personnel, payroll, and purchasing.
   2. Facilities and Property - includes expenditures pertaining to the operation and maintenance of the physical plant for the delivery of contracts and agreements.
   3. Educational Resources - includes expenditures for those activities to provide services to the contract or agreement such as word processing, printing and duplicating, audio visual support, and library services.
   4. Student Services - includes expenditures for those activities to assist the client such as registration, counselling, advertising, promotion, testing, and assessment.
   5. Equipment/Facilities - includes the cost of using College equipment and facilities.
4. The charge for the administrative fee (mark-up) is calculated as a percentage of direct costs. The percentage utilized by the College is 33.33%. This will provide a 25% contribution margin.