Charging

Question 1

What are the 7 desirable charactaristics for a charge in the public sector

Answer 1

A charge should be:
1. Easily determined and calculated - Should not involve undue time and effort to calculate.
2. Equitable - Should be fair to all parties.
3. Tranparent and understandable - To reinforce fairness teh basis of the charging should be clear to those paying.
4. Sufficient - Sufficent to meet financial objectives. Ie Full cost recovery, limit demand ect..
5. Compatable with other objectives - should nto work against other objectives of the organisation
6. Related to ability to pay - should be available to all
7. Cost effective - Charges should atleast cover the admin cost of recovering them.

Question 2

What is a reasonable charging methodogy for the school to implement in the sports centre?

Answer 2

1. Full cost plus profit margin