There are, however, more variables in JTPA which are determined-by the requirements of the local PIC and the contractor's proposal. Minimum wage can be lower and job retention may be for only 30 days. Previous payments do not have to be returned if the trainee does not stay on the job for 30 days, but final payment is tied to completion of the retention period. The local PIC determines if it will provide payment on a fixed price basis with payment at benchmarks or on a cost reimbursement basis. Again, the administrative recordkeeping and invoicing requirements are quite burdensome so that the amount allowed for administrative may have to be subsidized by the campus.
Indirect costs are limited.
Campuses currently participating in JTPA projects have not fully recovered the amounts contracted for. As with ETP, there is less financial risk for the University if campuses contract only to provide the training and are not responsible for job placement, but there is still some financial risk as trainees may quit or find work before the training is over so that the payment per trainee is reduced. Because the programmatic requirements of the JTPA and the ETP outlined above are based on their legislation and board policies, there is little that can be done to alleviate the financial risk and administrative burden inherent in these programs. Campuses have been able to negotiate the reporting burdens onto the prime contractor. All campuses require approval of a dean or equivalent to provide a statement saying that they understand the financial liability these contracts could incur and that the department or division involved will be responsible for any losses resulting from such contracts.