Full Economic Costing of Grants and Contracts

1
Full Economic Costing of Grants and Contracts

• Dr Dawn Rippiner
• d.rippiner_at_abdn.ac.uk
• Ext 2120 (Room 48, University Office)

2
Policy background

• 1998 Central Spending Review (CSR) gave extra
  funds for HE
• TRAC (Transparent Approach to Costing)
  methodology
• TRAC showed deficits on all research, and
  problems of infrastructure funding
• 8bn investment back-log (5bn T and 3bn R)
• Impossibility of catching up while R funded below
  full costs
• CSR 2002 - extra funding for R (120m) and T
  infrastructure
• Introduce fEC (full Economic Costing) from 2005
• Requirement to manage all activities sustainably

3
Cost Recovery on Research Projects
PI time
RAS other staff equipment consumables
Department costs Services (Infrastructure
charge) University central costs Investment/infras
tructure etc.
Direct costs
Indirect costs
FEC
46
R Councils
Charities
Depends on RAE rating, staff
numbers contract income
QR
4
Public funding good news

• Research funding after SR 2002 and Dual Support
  reform
• 120m extra for Research Councils ( 80 of FEC,
  20 better)
• Other Government Departments 100 of FEC
  (commissioned work)
• Charities increase in funding council R grant in
  recognition of high cost of supporting this work
• RAE-related grant 144m
• Significant increase in funding for the same
  volume of work

5
What this means for the University

• Approximately 2 million for 2005/06 added to
  Research Council grants already awarded.
• fEC (100) for Other Government Department
  (commissioned) grants
• Increased funding for postgraduate research
  students
• Other rounds of Science and Research
  Infrastructure funding possibly 18m from TIF
  and SRIF3 over the next 5 years

6
To qualify for fEC we must

• Demonstrate through TRAC robust procedures to
  quantify activity levels
• High return and reasonable accuracy of time
  allocation data
• Cost manage research projects on fEC basis from
  Feb 2005
• Time allocation forms to calculate academic
  time on projects
• Costing future project proposals on current and
  fEC basis
• Recosting newly awarded projects on a fEC basis
• Extra data required to evaluate fEC
• Submit proposals to research councils on fEC
  basis from September 2005

7
Building up the fEC (Research Council projects)

• Directly incurred costs (dedicated RAs, travel
  and subsistence, consumables, new equipment)
• B. Directly allocated costs (Academic staff
  costs, lab technicians (pooled), major facilities
  and equipment, space)
• Indirect costs (academic support time, central
  service dept. costs)
• Exceptional items (e.g. large capital)

8
What additional information is required?

• Academic Staff time for PIs and Co-Is
• Identifying Space Usage
• Other direct costs currently considered
  ineligible

9
Academic staff time

• RAs Costs as currently
• Estimate FTEs and salaries
• PIs and Co-Is New costs
• Estimate actual time (hours/days) spent on each
  project per week
• Cost per week (hours/ standard working week
  (37.5 hrs)) salary rate (use salary bandings
  for confidentiality)
• Once agreed by sponsor, no change to costs
  awarded throughout project life
• Final report writing-up time included, but no
  change to grant duration
• PIs to validate time spent on project - No time
  sheets required

10
Identifying Space Usage

• Estates costs directly allocated to projects from
  Feb 1st 2005
• Space divided into 5 types
• Low cost, minimal maintenance eg. field station,
  store
• Basic furnished/ heated room eg. office,
  classroom, lecture theatre
• Serviced facility eg. laboratory, workshop,
  clinical treatment room
• Highly serviced facility, 24/7 support eg.
  medical research facility
• NHS facilities

11
Other direct costs currently considered ineligible

• Specific costs not previously funded funded 80
  under fEC.
• For example
• Recruitment advertising
• Conference costs
• Journal fees
• Please note that
• Equipment over 50K value over 50K funded _at_ 100

12
Please note

• Costing projects on fEC basis compulsory from 1st
  Feb 2005
• Allow more time to complete grant proposals
• Make appointment with research accountants
• Feedback on grant application process
• Opportunity to negotiate with other funders e.g.
  overseas, industrial, etc

13
Advice on fEC for Research Projects

• Costing Research Projects
• Research Accountants
• Specific Queries fEC help desk
• Dawn Rippiner / Alan Johnstone
• Website
• Currently being set up - www.abdn.ac.uk/fec
• FAQs
• Up-to-date information
• Links to documents/ websites
• Help-desk facility for project queries
• Link to time allocation exercise website to be
  updated

14
Full Economic Costing of Grants and Contracts

• Dr Dawn Rippiner
• d.rippiner_at_abdn.ac.uk
• Ext 2120 (Room 48, University Office)