Information Systems Services Directly Allocated Costs Road Show March 2007

Information Systems Services

Agenda

Overview of fEC and DACS Overview of the COSTA Changes Overview of the MIS Solution Overview of the SAP Solution Go Live… intend for your advice to provide difficulties for those with disabilities

Information Systems Services fEC + DACS Why a reporting solution is needed

Overview of fEC and DACS

Sustainability and Purpose fEC of Research

• Research is not

sustainable

on current basis: • Deficit on both Public Funded and Non-Public Funded research close to £1bn/year • Poor understanding of cost base / low price culture • Under-investment in infrastructure (£8bn backlog maintenance) • Widening gap between value of QR and external research project funding

Overview of fEC and DACS

fEC of a Project

A price which, if recovered across an institution’s full programme, would recover the total cost (direct, indirect and total overhead) of the institute, including an adequate recurring investment in the institution’s infrastructure.

Sector costing methodology developed by JM Consulting - Directly incurred costs, directly allocated costs, indirect rate, estates rate

Overview of fEC and DACS

Directly Allocated Costs

•PI and co-investigators time and salary estimated costs.)

,

pool technicians, major research facilities and equipment. (Calculated and reimbursed on the basis of

Estates Rate

•Fte cost - estates costs and the part of the infrastructure adjustment that relate to academic departments; including laboratory technicians and the costs of equipment and major research facilities.

Indirect Rate

•Fte cost - includes support time of academics, COCE, central services, departmental support

Overview of fEC and DACS

fEC accounting at UoL

• Project Grant Accounts reflect the total project fEC (internal & external) • Internal Fund Contribution ( ‘20%s’) then reposted to School/Institute Internal Fund from the Project Grant Account •For any research project,

Net Recovery for School = DACs (including Estates) + Indirect – IFC

•Overheads continue to exist – on Old grants + ongoing for some sponsors

Overview of fEC and DACS

Grants Management

Grant 471250 External Fund £500 Month end Processing Grant 471250 External Fund £250 Grant 471250 Internal Fund £250 £ WBS RG.ERRI.471250

Sponsor Share £500 Month end Processing £250 WBS RG.ERRI.471250

Sponsor Share £250 £250 Internal Order Core Account Internal Share £250

Overview of fEC and DACS

Grants Management

Grant 471250 External Fund To WBS Core accounts Directly allocated Cost recoveries Month end Processing Grant 471250 External Fund Grant 471250 Internal Fund Month end Processing From WBS Core account Internal Share of costs £’s Cost of fEC

Overview of fEC and DACS

Recovery Forecasting

• Essential to enable Schools and Faculties - to budget for current year - to forecast for future years - to plan for sustainability

Overview of fEC and DACS

Development of Research Recoveries Forecasting at UoL

• ISS, RSU + Faculty representatives have explored options and developed specifications • Pragmatic compromises have been made where necessary emphasis on essentials not ‘nice to haves’ - emphasis on availability for this planning round - changes needed to COSTA etc • 3 reports needed to give net impact of Research Grants recoveries • Possible future aggregating report? – High level Management Information % recoveries by HESA sector, PF, NPF

Overview of fEC and DACS

The three reports… For grants >470000 (and all overheads) – Both live Awards and Applications

1. Internal Fund Commitment (IFC) = e.g. the 20% RC debits for grants >47000 2. DACs (MIS) = IDC, Estates, Overheads, DACs – Investigator, Salaries (DA), Equipment Access (Annual and Quarterly versions)

For grants <470000 – ‘Actuals’ for live Awards only

3. DACs (SAP) = Recurring Journal report = RG staff and non-staff transfers

Go Live…

Possible Causes of Variances…..

1. Changes between Application and Award – value, dates, splits 2. Changes after Award – value, dates, splits 3. Rounding adjustments – eg 3 investigators at 33.33% are rounded down to 33%: Actual postings at 33.33%, Forecast at 33% (process under review) 4. Prior Years under/over spend – Not reflected in the forecast

Go Live…

Where to get help • DACS Support Webpage ( http://www.leeds.ac.uk/iss/infosystems/mis/dacs.html

) • RSU for Data Interpretation Queries • ISS Helpdesk (33333) for IT Issues