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CALS Redesign: Increases in administrative fees for Fund 136 Fee-for-Service accounts begin Jan 2020

This fiscal year (FY19) CALS will increase the administrative fees assessed on 136 funds from 2% to 3.5% (a 1.5% increase) and then from 3.5% to 5% in FY20 (an additional 1.5% increase). The increasing fees will cover additional expenses incurred by the college for accounting, audit, compliance and human resources activities associated with these fee-for-service programs.

Mission-driven revenue producing activities support Chancellor Blank’s goal of identifying new revenue streams and include hundreds of services we provide to citizens and research partners. It is important that fees for such programs are designed to fully recover costs, without requiring subsidization from other sources of state, federal or tuition funds.

The UW–Madison Business Services administrative fee remains 5% for fee-for-service 136 funded accounts. These fees apply to 136 accounts in departments, centers and other CALS units based on expenditures (minus sales credits).

  • 136 fee-for-service funds generated in FY18 (the period that ended June 30, 2018) will be charged 2% by CALS Business Services and 5% by UW–Madison Business Services in January 2019
  • 136 fee-for-service funds generated in FY19 (July 1, 2018 through June 30, 2019) will be charged 3.5% by CALS Business Services and 5% by UW–Madison Business Services in January 2020
  • 136 fee-for-service funds generated in FY20 and beyond will be charged 5% by CALS Business Services and 5% by UW–Madison Business Services in January 2021

Templates to assist with developing rate structures can be found here.

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