Transcript Full Economic Costs

Full Economic Costs (fEC) of
Research Projects
Objective of Presentation
• To introduce academics to fEC as a basis for
costing Research projects.
• To emphasise the support provided by Research
Administration during and after project
implementation.
• Name, Research Administrator
Topics of Discussion
• Background - where did fEC come from ?
• How is fEC calculated ?
• Budgeting academic time.
• Admin.support & implementation timescale
Background - where did fEC come from ? (1)
• Transparency Review (TRAC) introduced 1998 in
response to JIF and SRIF1.
• HEIs more transparent about how they spend between
Teaching (T), Research (R) and Other Activities (O).
• Figures reported to Funding Councils and consolidated for
UK sector.
• UK sector figures showed big losses in R.
• Treasury accepted conclusions: SRIF2 and Dual Support
Reform.
Background - where did fEC come from ? (2)
• R project costs on a fEC basis (from TRAC).
• Government emphasised HEIs should recover fEC to
ensure sustainability of R.
• Extra £200 M pa for current volume of Research Council
(RC) projects from 2005/06 (plus more QR).
• RCs will fund 80% of fEC - balance from institution’s
funds and /or dual support (RAE).
• Govt.depts.should fund 100% of fEC except for “public
scientific good” projects
• Charities ?
How is fEC calculated ? (1)
Current Costing Method
• RA costs
• Technician costs
• Non-staff direct costs
• O/H recovery (if applic.)
eg.46% for RCs
fEC
• RA costs
• Technician costs
• Non-staff direct costs
• Estates costs as direct
• Indirect costs
• PI costs
How is FEC calculated ? (2)
• Estates costs as direct:
- RCs will fund. Other sponsors may follow.
- Charge on basis of £X / acad.staff member (FTE)
• Indirect costs:
- Charge on basis of £X / acad.staff member (FTE)
• PI costs:
- PIs to estimate time spent on projects (actual hrs)
- Apply cost according to grade of staff.
Research Councils will fund 80% of all of this on ESTIMATE. No need
to record actual time by project for RCs.
Budgeting academic time (PI costs) (1)
• Time should be estimated in actual hours.
• Include time for project mgmt., writing
papers, dissemination, etc.
• Exclude PGR training/supervision.
• PIs to keep simple records to verify time
e.g. notes/log book of events, meetings, etc.
Budgeting academic time (2)
• No prescribed methods for estimating time .
• Could base on hours required each month over
project life; or on standard proxy e.g. [2 hours] a
week per RA plus [2 hours] a week per project
(more if more complex project)
• Research Councils will be comparing estimates
• (Overall reconciliation (at institutional level) of
estimated staff cost with actual costs (from annual
TRAC time allocation schedule data))
Administration Support
• One to one support provided by Research Admin
(RAdmin) through application process.
• All costings done by RAdmin.
• Database of estimated PI time on awarded projects
will be kept by RAdmin. to verify commitment of
time.
• RA contacts:
- Name, Research Administrator, Ext.1111
- Name, Research Administrator, Ext.2222
Implementation Timetable
• Autumn 2004:
Release of RC forms and processes.
• January 2005:
Institutional systems for fEC established.
Training on new forms provided.
Costing/managing projects on fEC basis begins.
• September 2005:
All RC applications made (and funded) on fEC
basis. Projects will start April-Dec.2006.
Summary
• Introduction to costing R projects on FEC basis.
• Involvement of academics (budgeting time).
• Central support from RAdmin.
Conclusion
• Increase in net R income from RCs (pa) c.£xxxK
for Univ.of YYY.
• Opportunity to improve cost recovery from other
funders.
• Improved resource will directly benefit R active
academics.