Keele University fEC Project Presentation Of Progress To Date By Tim Statham

Introduction TRAC introduced 1999/2000 through the Government 1998 Spending Review TRAC introduced 1999/2000 through the Government 1998 Spending Review TRAC demonstrated that research was under-funded TRAC demonstrated that research was under-funded Full Economic Costing launched March 2004 to address research funding Full Economic Costing launched March 2004 to address research funding TRAC for Teaching introduced October 2006 TRAC for Teaching introduced October 2006 Phased 5 year implementation Phased 5 year implementation

Key Dates For Introduction of fEC March 2004 Treasury adopts fEC for funding of Research Council and other Gov. depts. research March 2004 Treasury adopts fEC for funding of Research Council and other Gov. depts. research 1 st QA audit by March st QA audit by March 2005 fEC funding contribution announced Jan 2005; 80% fEC funding contribution announced Jan 2005; 80% Confirmation of compliance by July 2005 Confirmation of compliance by July 2005 July 2005 end of grant applications on old basis July 2005 end of grant applications on old basis 1 Sep 2005 new grants submitted on fEC basis 1 Sep 2005 new grants submitted on fEC basis March 2006 grants begin on fEC basis March 2006 grants begin on fEC basis Oct 2007 QA Validation process commences Oct 2007 QA Validation process commences Feb 2008 refinements to estates recovery rates Feb 2008 refinements to estates recovery rates

What Is Full Economic Costing Research to be sustainable Research to be sustainable All university costs associated with research to be recovered including:- All university costs associated with research to be recovered including:- Directly incurred on projects Directly incurred on projects Project supervision & support Project supervision & support Estates costs Estates costs Indirect support Indirect support Infrastructure charge and cost of capital employed added to cover sustainability Infrastructure charge and cost of capital employed added to cover sustainability Initially extra £200million funding available by Government Initially extra £200million funding available by Government

RC Current v Future Funding Model Full Economic Costs Direct Costs Indirect Costs Eligible staff costs (eg Research Assistants, support staff) RC contribution to indirect costs = 46% of eligible direct staff costs Other eligible costs (e.g. equipment, travel) Institute must find the rest from other sources Ineligible costs (e.g. salary costs of Principal investigator) Full Economic Costs Direct Costs Indirect Costs Research Council pays 80% of the full costs Institute must find the rest from other sources RC funding: current position Shaded area – what RC will fund RC funding: new model Source Je-S

DSR: Change in Project Costing CurrentfEC Dedicated staff Academic staff - time Academic staff – cost Equipment Other costs – travel & subsist Indirect costs – 46% Space charge - £ per FTE Indirect cost - £ per FTE Source Je-S

Fund Headings for Research Grants Directly Incurred Directly Allocated Exceptionals Indirect Costs Summary Fund Heading Source Je-S Staff Travel & Subsistence Consumables Equipment < £50k Large Capital Fund Heading Category PCTF (EPSRC) only Other e.g. recruitment Other directly allocated Estates Investigators Indirect costs Staff Other costs Equipment > £50k Other Technicians Fellows Research assistants Principal investigators Visiting researchers Project studentships

Classification of research costs within fEC Directly Incurred Staff Costs Staff Costs Research Assistant Research Assistant Technician Technician Other Research Staff Other Research Staff Fellows Fellows Visiting Researchers Visiting Researchers Travel & Subsistence Travel & Subsistence Equipment Equipment Consumables Consumables Books Books Survey Fees Survey Fees Purchase/Hire of Vehicles Purchase/Hire of Vehicles Publication Costs Publication Costs Recruitment & Advertising Costs Recruitment & Advertising Costs

Classification of research costs within fEC Directly Allocated Investigators Costs Investigators Costs Pooled Staff Costs Pooled Staff Costs Estates Costs (inclusive of infrastructure) Estates Costs (inclusive of infrastructure) Usage Costs of Research Facilities Usage Costs of Research Facilities Central & Distributed Computing Central & Distributed Computing Charge Out Rates For Shared Equipment Charge Out Rates For Shared Equipment

Classification of research costs within fEC Indirect Costs General School/Research Inst. & Lab. Consumables General School/Research Inst. & Lab. Consumables Co-investigators Costs Co-investigators Costs Secretarial Secretarial Central & Distributed Services Central & Distributed Services Cost of Capital Employed Cost of Capital Employed

Classification of research costs within fEC Exceptional Costs Staff – Project Studentships Staff – Project Studentships Large Equipment Large Equipment Other Other

Information Required For fEC Costed Bid Keele must be able to calculate Keele must be able to calculate Total FTEs on a project Total FTEs on a project Indexation of all costs Indexation of all costsConsequently Time planned (work spell) on project of all staff Time planned (work spell) on project of all staff Precise roles of each person Precise roles of each person Expected purchase dates of equipment and other direct costs Expected purchase dates of equipment and other direct costs Useful life of equipment Useful life of equipment PGR students, planned time on project & amount of supervision PGR students, planned time on project & amount of supervision

Rate Calculation Results fEC Project Status at Keele University

Costing Example - Expenditure

fEC Project Claims Directly Incurred Costs Directly Incurred Costs Directly Allocated Directly Allocated Indirect Indirect Exceptional Exceptional As Current; when incurred As Current; when incurred Funded per approved FTEs or hours (equipment & facilities) on project Funded per approved FTEs or hours (equipment & facilities) on project Funded per approved FTEs on project Funded per approved FTEs on project When incurred When incurred

fEC Project Status at Keele University QA Audit November 2004, report December 2004 QA Audit November 2004, report December 2004 Compliance with minimum requirements June 2005 Compliance with minimum requirements June Diary Exercises, latest Nov Diary Exercises, latest Nov Space Audits, new audit March Space Audits, new audit March 2008 QA Validation returns submitted to RC UK Jan 2008 QA Validation returns submitted to RC UK Jan 2008 Latest TRAC return submitted 21 Jan 2008 Latest TRAC return submitted 21 Jan 2008 pFACT Costing Tool installed Nov 2005 pFACT Costing Tool installed Nov grants awarded worth over £5.25million 30+ grants awarded worth over £5.25million

fEC Project Next Steps Continue to Develop TRAC methodology Continue to Develop TRAC methodology Research Facility Costs Research Facility Costs TRAC for EU FP 7 Projects TRAC for EU FP 7 Projects Benchmarking of Overhead Recovery Rates Benchmarking of Overhead Recovery Rates Continue To Develop pFACT Continue To Develop pFACT Reduction of Research Funding Deficit Reduction of Research Funding Deficit TRAC for Teaching TRAC for Teaching 2008/9 Academic Year 2008/9 Academic Year Diary Exercise Diary Exercise Space Audit Space Audit

fEC Project Support Tim Statham – fEC Management Accountant Tim Statham – fEC Management Accountant Judith Garside – Research Grants and Contracts Manager Judith Garside – Research Grants and Contracts Manager Joint Costing & Pricing Steering Group Joint Costing & Pricing Steering Group Website address fEC Overview Research Council Websites Research Council Websites