1. A National Swedish Full-Cost Model - Implementation at Stockholm University

2. Outline Background The model Stockholm University –Organisation and some facts –Changes –Problems / challenges 2008-11-19 /Anna Stolarska, Stockholm University

3. Background Expansion of the universities –Increased overhead costs Government Research and Innovation Bill, 2000 –Complete funding of indirect costs Study made by SUHF (The Association of Swedish Higher Education) 2002 –Agreement on 35 % add-on on total direct costs SUHF 2007 –An accounting model for indirect costs Government Research and Innovation Bill, 2008 –Total funding for real indirect costs 2008-11-19 /Anna Stolarska, Stockholm University

4. The Model Core activities (teaching and research) are divided into “cost-bearers” All revenues and costs are attributed a cost- bearer All costs are direct or indirect Indirect costs are divided between cost-bearers in proportion to direct salaries 2008-11-19 /Anna Stolarska, Stockholm University

5. Stockholm University - Organisation and some facts 2008-11-19 /Anna Stolarska, Stockholm University Turnover: a total of SEK 2.9 billion - Undergraduate education: 39% - Research and doctoral programme: 61% Revenues divided among: - Government grants (public funding): 68% - External funding: 22% - Fees and other remunerations: 10% Costs divided among: - Employees: 65% - Premises: 17% - Other costs: 18%

6. Revenues 2008-11-19 /Anna Stolarska, Stockholm University TeachingResearch Government grant External funds Contract education Government grant External funds Contract research

7. Costs 2008-11-19 /Anna Stolarska, Stockholm University Vice-Chancellor´s Office The Finance Office Technical Support Office University Dean Academic appointments Faculty Direct costs Indirect costs Department Shared costs TeachingResearch

8. Indirect costs for research at the Department of Ants Part of the shared University costs100 Part of the shared Faculty costs 5 Own indirect costs145 Sum250 Direct salary625 2008-11-19 /Anna Stolarska, Stockholm University 40 %

9. Cost-bearers All cost-bearers must have a direct salary Revenues from both G-grant and E-fund, but NOT both from teaching and research Different Departments Different Faculties 2008-11-19 /Anna Stolarska, Stockholm University

10. Cost-bearers at Department of Ants Ant 1 Ant 2 Bug 1 G-grant financed professor 2 G-grant financed postgraduate students 3 E-fund financed researchers Contract research Linneaus grant, 5 researchers Co-financing, G- grant financed professor from Department of Pest Control E-fund financed data-bas

11. Research project with external funding - an example Contract allows OH-cost as a 35 % add-on on total direct costs Actual OH-cost is a 40 % add-on on salary 2008-11-19 /Anna Stolarska, Stockholm University

12. Department of Ants G-grant financed research E-funded research project G-grant financed research cost-bearer E-funded research cost-bearer G-Grant1 0009955 E-Funding135 Revenue for indirect costs 35 Sum1 350135995140 Direct costs600100600100 Indirect costs43539540 OH35 Sum1 035135995140 2008-11-19 /Anna Stolarska, Stockholm University

13. Full cost calculation for Stockholm University Your department's OH rate in % 27% Rate for office costs in % 13% Full cost calculation according to the SUHF model Total direct salary costs, incl. employers fee and social security 100 - of which applied for in the present proposal 100 - from other sponsor or co-financing from the University 0 Total direct running costs - of which applied for in the present proposal - from other sponsor or co-financing from the University 0 Total direct equipment costs - of which applied for in the present proposal - from other sponsor or co-financing from the University 0 Total direct premises costs 13 - of which applied for in the present proposal 17 - from other sponsor or co-financing from the University -4 Sum of all direct costs 113 - of which applied for in the present proposal 117 - from other sponsor or co-financing from the University -4 Total indirect costs 27 - indirect costs in present proposal according to full cost model 27 - from other sponsor or co-financing from the University 0 - amount applied for to cover indirect costs in present proposal 18 - indirect costs to be paid by other sponsor or by the University 9 Sum of total costs 140 - of which applied for in the present proposal 135 - from other sponsor or co-financing from the University 5

14. Changes New object in the accounting model Cost moved from the Faculty to the University level All shared administration has been divided into teaching and research OH-costs are divided into two invoices Full-cost calculation in all fund applications 2008-11-19 /Anna Stolarska, Stockholm University

15. Challenges Change our accounting and personnel systems Secure different interests as concerns accounting –Auditors –Fund donors –Researchers –Head of Department Costs for premises Find an understanding among the core staff! 2008-11-19 /Anna Stolarska, Stockholm University