1. CORPORATE FINANCE (RESEARCH) PRESENTATION Darlington Centre, 13 February 2008

2. 2 Agenda Introduction Gift Policy P/G Scholarships RIBG &DVC Research funding 2008 HERDC process Changes to research invoicing NHMRC acquittals Changes to ARC payments ARC acquittals

3. 3 Gift Policy Presentation by Greg O’Dea, Director, Advancement Services Development Office

4. 4 Post Graduate Scholarships Presentation by Prof. Masud Behnia Dean of Graduate Studies

5. 5 Domestic Commencing Res Stud Load - National Total & Go8 Year200020012002200320042005 Go8/Total (%)49505154 52 Data: www.dest.gov.au

6. 6 USyd – Student Load - PG Research Data: USyd PSU

7. 7 PG Research Scholarship Scholarships 2006 2007 2008 (estimate) APA 150 153 163 EIPRS 31 31 34 UPA/FF 40 41 55 UPA/CF 40 48 110 USIRS 13 31 30 USIFS - 9 30 VCRS - 2 20 NHMRC 32 24 24 Bequest funded 21 38 38 APAI 15 10 10 Faculty/school/research grant/external organisation 102 112 112 TOTAL COMMENCING 444 499 626

8. 8 Scholarships - Dollars & Cents APA - about $20,000/yr, size of grant from Canberra for new & continuing = $9,625,715 EIPRS – Canberra pays tuition, size of grant for new & continuing = $1,795,058 & we pay a stipend of $20,000/yr, total = $680,000 (commencing) UPA – we pay a stipend of about $20,000/yr, total = $M2.2 (commencing) USydIS – Centre pays either 50% of tuition or a stipend, Faculties pay 50% of tuition or stipend, total = $2.8 (estimate commencing) VCRS – we pay $30,000/yr, total = $600,000 (commencing)

9. 9 Pipeline Effect The duration of scholarships for Masters by Research is 2 years and for PhD 3 years (may be extended to 3.5) Most of our scholarships are for PhD students, therefore this creates a very expensive pipeline effect on our scholarship investments Our estimated expenditure on PG research scholarships is about $M34/year

10. 10 Success Rate 2008 - Domestic The scholarship ranking guidelines have been changed to attract quality domestic research students We are somewhat meeting the demand for scholarships but we need more The success rate of the quality applicants in the three faculty clusters is high and about the same

11. 11 RIBG Will be distributed this month We will send guidelines with the funding Please distribute income ASAP:  Allows recipients to spend in a timely manner  Against legislation to spend prior year’s until approved

12. 12 RIBG The RIBG Grant must be used only for any one or more of the following purposes: non-capital aspects of facilities such as libraries, laboratories, computing centres, animal houses, herbaria, experimental farms; equipment purchase, installation, maintenance, hire and lease; salaries of research support staff (including research assistants; accounting and administrative staff; and technicians) employed to provide general support activity in a given area (e.g. a research assistant providing support for a number of research projects but not a research assistant dedicated to a particular project); provide for travel costs to allow participation in international consortia.

13. 13 RIBG The RIBG Grant must not be used for: capital works (i.e. construction of buildings); rental of accommodation; salaries of teaching and research, and research- only academic staff (including the cost of ‘buying time’ to free such staff to do more research); salaries of staff supporting research at the institutional level (e.g. Deputy Vice-Chancellor (Research), Research Grants Officer); stipends of postgraduate research students; or travel costs directly associated with individual projects with the exception of travel costs to allow participation in international consortia.

14. 14 % of total RIBG funding to G08 Universities Source: DEEWR

15. 15 2008 v 2007 DVC Research funding

16. 16 What is HERDC? Higher Education Research Data Collection Requirement by DEEWR for all HEPs to complete the data return annually Determines future funding in RTS/IGS, APA, CTS, RIBG Two returns - Research Income and Research Publications RO manages publications – questions to Kerry Legge x66481

17. 17 HERDC - IMPACT ON INTERNAL FUNDING TO FACULTIES Category 1 Aust. Competitive Grants Category 2 Other Public Sector Research Income Category 3 Industry and Other Research Income Category 4 CRC Research Income FUNDING MODEL 75% OF IGS/RTS GOES DIRECT TO FACULTIES RIBG - 75% TO FACULTIES

18. 18 HERDC RETURN Research Income  Category 1: Australian Competitive Grants (Note: ACGR is not released yet)  Category 2: Other Public Sector Research Income  Category 3: Industry and Other Research Income  Category 4: CRC Research Income

19. 19 HERDC The aim of the verification process is to both: a)report research income as accurately as possible b)maximise the reportable research income within the guidelines supplied, so that we maximise DEEWR block grant funds to USYD and therefore maximise funds going to the faculties

20. 20 Research Income Examples of what is excluded:  in-kind contributions  capital grants  NCRIS, ARC LIEF grants, RIBG, APA,  funds provided specifically for the purpose of hosting, organising or attending a conference or workshop  funds provided specifically for the purpose of publishing research rather than conducting it  consultancy fees for projects that do not meet the definition of research (section 1.3.8, page 8)

21. 21 HERDC VERIFICATION PROCESS - What We Are Sending You Similar to what was sent out last year Income is classified as “Research income” when there is compliance with University policies – ie research class and project code – no substantiation required by CFR, but will be subject to audit review Also asked to assist with International split, as required by DEEWR

22. 22 HERDC – Part 1  Run a general 104  Run a 104 to identify debits in income classes (eg look for overheads debited against income)  Run a 104 to identify any income in expense codes (eg limit to ARB)  Run 104 for 6713 and check contract – are they really 6712 or 6713?

23. 23 HERDC – Part 2 – Possible Research Income Income is NOT included unless you tell us Non research class codes and research project codes & vice versa Substantiation required, such as Peoplesoft invoice, contract, letter from granting body that states the funding was for RESEARCH

24. 24 Remember  The type of arrangement or title of the agreement is not relevant  It is the INTENTION of the funding not the usage

25. 25 HERDC – Part B Consultancy v Contract Research  Guideline – see the DEEWR definition given in the HERDC Specifications.  If you are unsure: Check with the researcher Send us the contract / letter of engagement

26. 26 HERDC – Part 3 – Other Income (unlikely) Income is NOT included unless you tell us Non research class codes and/or project codes Internal income, operating grants & balancing income (improbable for research)

27. 27 HERDC VERIFICATION PROCESS – Where to look for research income: Chairs Joint Ventures Externally funded positions Foundations - 22222 00000 11111 Cxxxx and Gxxxx accounts

28. 28 Research Income Q) What if I am unsure if it can be counted in ANY category? A) Note the various exclusions (such as LIEF grants and capital grants) A) Email us at corpfinance.research@usyd.edu.au corpfinance.research@usyd.edu.au

29. 29 HERDC Important dates Report to faculties by 18 February Timetable will be distributed Faculties will have three weeks to verify income & return to CFR Faculties will have opportunity to review prior to audit

30. 30 USYD Research Income Source: Research Office

31. 31 HERDC 2004 to 2006

32. 32 HERDC income comparisons $M 2004 $M 2005 2004-5 % Var $M 2006 2005-6 % Var Melb20825422%28010% UQ15618920%21514% USyd1751856%30967% Monash12014520%18628% UNSW12413912%17022%

33. 33 CORPORATE FINANCE (RESEARCH) Useful links (a)http://www.finance.usyd.edu.au/about/research.shtmlhttp://www.finance.usyd.edu.au/about/research.shtml (a)http://www.dest.gov.au/http://www.dest.gov.au/

34. 34 NHMRC Acquittals CFR will populate the annual statement & send to faculty to check & sign CFR to follow up with collaborating institution for end of period funding acquittal (for projects in final year) These are due 6 months after funding period is completed

35. Changes to Research Invoicing In 2007 invoicing for SydnOvate research grants comprised 52% in volume of all research invoicing From 1/1/2008 invoicing for new research contracts established through SydnOvate are being processed by Shared Services (currently 4 invoices processed ytd) Invoicing for existing (pre 2008) SydnOvate research contracts remains with Faculty Finance until further notice Communication protocols concerning invoicing for achieved milestones is under discussion with Faculty Finance Directors and will be conveyed to you once finalised

36. 36 Current Process RO & SydnOvate (pre 2008) SydnOvate (post 2008) Responsibility of invoicing currently remains with Faculty Finance until further notice Responsibility of invoicing is with Shared Services as per new structure

37. 37 ARC Funding See correspondence from Ian Ford Distributions will be completed monthly Commitments Fellowship component

38. 38 ARC Acquittals Shared grants – final year Relocations Process

39. 39 CORPORATE FINANCE (RESEARCH) THANK YOU FOR ATTENDING ANY QUESTIONS? Please contact: corpfinance.research@usyd.edu.au corpfinance.research@usyd.edu.au