Transcript Background
What is FEC? Full Economic Costing Background 1998 Spending Review – Extra Research Funding TRAC: • All Universities were in deficit for research • Significant underspend in infrastructure In 2002 additional funding was awarded plus initiatives like SRIF 1 and 2, SRIF 3, JIF, and SPUR 1 and 2 in NI Overall aim of FEC is sustainability of the research base What is Sustainability? The University is being managed on a sustainable basis. If taking one year with another it is recovering its FEC across its activities as a whole and is investing in its infrastructure at an appropriate rate to maintain future productivity This will require the calculation of FEC FEC Cost Types and Definitions Directly Incurred (DI): Expenditure that is incurred specifically for the project such as new staff, travel, consumables. Directly Allocated (DA): Estimated costs of services (such as existing staff time and facilities) used by the project that are shared by other activities and projects. Indirect: University Overheads allocated to the project. Central administrative cost. Facility (i.e. estates) and overhead (i.e. indirect) costs are based on the academic/research hours spent on the project. Estates Cost: £15,697/FTE Lab £9,417/FTE Desk Indirect (ID): £30,380/FTE FTE, Full time equivalent (1 person for 1 year x 100%) Procedure to establish the rates are audited. Research Council Definition Standard Year Hours in Standard Week = 1,650 hrs = 44 wks = 37.50 hrs Choices – Costing v Pricing No choice with cost – FEC method gives cost Do have choice with price i.e. 50% of FEC 70% etc Funder ‘type’ sets the % Strategic pricing at less than 100% of FEC will require high level approval The proposed costing and pricing policy for University of Ulster external grants is as follows: - FUNDER % FEC Research Councils 80% UK Charities * No change to present methodology European Commission * No change to present methodology Local Authority 100% Industry/Commercial 100% UK Government ** 100% NHS Trusts 80% R&D Office 80% * FEC will still be calculated – Partnership Fund ** NI Departments, particularly Invest NI, will be kept under review for strategic reasons to see if 100% will apply to projects funded from this source