1. Research Contracts 11 October 2007 University of Strathclyde Kathleen Boyle

2. Objective of Presentation  Full Economic Cost (fEC) – General  How fEC Contracts are costed  How fEC funds are allocated  Contact info  Questions

3. fEC General Background and Reasons for introduction:  fEC Govt initiative - expansion of TRAC  Aimed at identify the true cost of Research  Recognised that Research had been under funded  Need to ensure future sustainability of Research  Additional funds to be used to invest in Research infrastructure – not to increase volume of Research  Overall Research portfolio should be in balance

4. fEC General Time Allocation Survey (TAS) and fEC:  TAS is very important part of TRAC calculations  Staff costs allocated on basis of TAS results to R  Therefore TAS results have direct impact on Indirect rate used for Research (note should record time against direct activity where appropriate – if include as Support will lead to high Indirect rate)

5. fEC General Feedback from Research Councils:  Justification of Resources –Investigator time –Other DA costs in particular technicians and Research Facilities (Estates, Indirect and General Technical Support do not need justification as charge per FTE)  Costs as DI –must be charged as actuals, have auditable record –staff not working 100% on project but included as DI must keep timesheets

6. fEC General Pay Modernisation – additional costs:  Research Councils –Research Councils agreed to reimburse HEIs for applications submitted after 10th March 2005. Paid as part of final claim  Other Funders –Needs to be looked at on a case by case basis as some funders will pay

7. fEC General Quality Assurance and Validation (QAV)  On behalf of Research Councils but may be used by other funders (e.g. OGDs, EU)  Will look at all aspects of TRAC including TAS, calculation of rates for Estates, Indirect, Technicians and Research Facilities  Visit during 2008  Financial sanctions if not following Guidance

8. How fEC Contracts are Costed  Directly Incurred (DI) vs Directly Allocated (DA) –Costs allowed under DI –Costs allowed under DA  pFACT Costing Tool

9. How fEC Contracts are Costed Directly Incurred (DI) vs Directly Allocated (DA)  DI - additional costs as result of research project : –Staff costs – where work 100% on project –Consumables, Equipment, Travel etc –Now also includes Research Facilities (since Aug 07)  DA - existing costs recharged to research project: –Staff costs – established staff –Estates –Indirect

10. How fEC Contracts are Costed Established Staff Costs – core and non core:  Academic  Costs not previously funded by RC  Guidance on estimating time provided (see fEC web pages)  Costs will normally be based on banded rate  Research staff - working less than 100%  Costs for staff already fully funded should not be included (e.g. Research Fellowship)

11. How fEC Contracts are Costed Technicians:  Three types in relation to Research:  Directly Incurred (100% on project)  DA – Pool (working on several specific projects)  DA – General Technical Support (providing general support e.g. stores, health & safety)  General Technical Support included as charge per FTE (for Lab based departments only)  No longer appropriate to request general time e.g. 0.5 FTE – should state no. of days or hours required  Calculation of Technicians costs subject to QAV review

12. How fEC Contracts are Costed Facilities:  Now two types:  Small Research Facility - SRF (< £300k)  Major Research Facility – MRF (> £300k)  Must follow guidance in determining rate  Rates will be added to pFACT  Can now be included as DI  Calculation of rates subject to QAV review  Further information on fEC web pages

13. How fEC Contracts are Costed Estates Charge:  Total cost of Estate allocated to T, R & O based on Departmental Occupancy Survey by Estates (Nov 05)http://www.strath.ac.uk/estates/space/surveys/http://www.strath.ac.uk/estates/space/surveys/  Charge on basis of £ per FTE. Calc Feb each year  Two rates – Lab and Generic  Calculated automatically using pFACT  No justification required  Calculation reviewed as part of QAV

14. How fEC Contracts are Costed Indirect Charge:  Support costs of Research including: –Academic time on support (allocated per TAS) –Costs of support staff (allocated based on TAS) –Central Support departments costs (allocated based on TAS or other drivers)  Charge on basis of £ per FTE. Calc Feb each year  One rate across the University  Calculated automatically using pFACT  No justification required  Calculation reviewed as part of QAV

15. How fEC Contracts are Costed pFACT:  Eases burden on Academics  Calculates FTE related costs automatically  Includes inflation, future pay awards, increments etc  Calculates Income automatically (Income Templates)  All staff applying for Research should use pFACT  Request access via Head of Department  Further info on fEC web page

16. fEC – How Budgets are allocated Dependant on relationship between fEC and Price:  Price = fEC – budgets allocated in full  Price > fEC – budgets allocated in full, surplus added to Indirect  Price < fEC – DI budgets allocated in full, remaining budgets reduced pro rata (Established staff, Estates, Indirect)

17. fEC – How Budgets are allocated Allocation of DA Funds:  Established staff: Core – direct to Faculty Non Core – direct to Non Core account  Estates – direct to EDF account  Indirect – split 85:15 (as with pre fEC overheads)  All DA (overheads) charged through X budgets  Allocated quarterly in arrears

18. fEC – How Budgets are allocated Underspends on Fixed Price Contracts:  If fully funded – underspend added to Indirect  If not fully funded – split 50:50 between: -Estates (EDF) -Department (CF account)

19. fEC  Further information: fEC web pages www.strath.ac.uk/fecwww.strath.ac.uk/fec  Main contact in Finance: fEC Accounting Manager k.boyle@strath.ac.ukk.boyle@strath.ac.uk