The University for business

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fEC full Economic Costing Workshop Andrea
Tinson
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Full Economic Costing (fEC)

• fEC went live 1.9.05
• Every project must be costed using fEC
  methodology
• Institutions must show how much the research or
  services rendered project costs and the surplus /
  deficit of that project
• Demonstrates the full cost of an activity
  securing realistic funding

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Elements of Full Economic Cost
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Impact on Grant Applications

• Estimating PI Time Principal Investigators will
  need to estimate the time they will spend on
  every project.
• Recording PI Time no timesheets will be
  required, minimal burden. A note in PI diary will
  be sufficient which should be available for
  verification
• Actual v estimated time where there is
  significant variation between actual and
  estimated eg due to personnel changes should
  report to sponsor. EPSRC will be monitoring
  percentage of PI time across projects lt 100.
• Estates rates The rate will be already
  calculated for you now a direct cost no longer
  part of overheads.
• Overheads The rate will be already calculated
  for you. Replaced by an indirect rate.

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Research Council Approach

• Common forms and procedures, new TCs
• All except MRC on Je-S from 1st September 2005
• Will not fund gt100 PI cost based on standard
  time
• Will pay investigators time, estates and indirect
  costs based on estimates
• Virements between directly incurred headings only
  
• Exceptions to RCs 80 fEC funding
• Large equipment, surveys, project studentships

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Other Funders

• Charities
• Will not pay indirect costs or academic staff
  time
• May pay some DA Costs - equipment/support staff
• Charities research support fund initially 90m
  rising to 270m for public good research
• Government Departments
• Expected to pay 100 of fEC on commissioned work
• NHS RD to use the RC model

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Other Funders

• EU
• Unlikely to be any movement on current shared
  funding model
• Industry
• Is usually a price-based negotiation
• All non public good research should be funded
  at at least 100 fEC

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Services Rendered

• Cost as per fEC
• All S.R should be funded at at least 100 fEC
• Is usually a price based negotiation
• If fEC price is lower than you wanted to charge
  then charge higher

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• How to cost a proposal

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Cost Headings

• Directly Incurred Costs
• - RAs, Travel, Consumables, Equipment
• Directly Allocated Costs
• - P.I Time, Estate Costs, Equipment
  already bought
• Indirect Costs
• - New Name for Overheads

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Cost Headings cont

• To arrive at the estate and overhead (amount) you
  need to calculate a FTE number
• The FTE number is then used to calculate the
  estate and overhead (amount?)
• The figures are set by the University each year
  and are revised each February. Currently they
  are
• Estates classroom 5,073pa
• Laboratory 9,548pa
• Cass 12,440pa
• Indirect 30,660pa

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• Example
• A Project for illustration

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Resource Details

• Three year project
• 1 RA.6 for three years
• 1 RA.8 for two years _at_ 50 time
• Equipment 20,000
• Travel 3,000 pa
• Consumables 4,000pa
• PI time _at_ 15 hours per week for 2 years
• Prof time 60,000 pa
• PI time _at_ten hours per week for 3 years
• Prof time 52,800

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Sirius Web

• Can help calculate the costs of an
• RA or PI under fEC
• http//www.siriusweb.leeds.ac.uk

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• Use the standard method to work out D.I. costs
  e.g. new people to the project
• Use the full Economic method to work out D.A.
  costs e.g. P.I. time

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Research Web

• http//www.city.ac.uk/finance/research

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Things To Remember

• Every project must be costed by fEC
• If income requested does not match the fEC
  minimum funding criteria, justification will be
  required and must be signed off by the Dean and
  Director of Resources
• Some projects might be refused!
• You will need to keep records of your time on
  these project. Keep a diary, notes, lab notes
  which should be kept locally for possible audit
  verification

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Things to Remember cont..

• PIs time will be costed out at actual salary
  rates
• EPSRC will keep records of PI time as no one
  person can charge more than 37.5 hrs/week
• All costings MUST BE approved by the Research
  Office BEFORE any costs/prices are given to the
  sponsor

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Things to Remember cont..

• The AGC form deals with fEC. The spreadsheet is
  interactive - adds up and takes away for you!
• Remember that you also have to calculate the FTE
  of a person
• Last but not least..

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• The Friendly Research Office is always
• here to help you
• Andrea x3038
• Esther x3023
• Jody x4140
• Mel x3039
• Or Enquiry line x8069

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• Or just pop in to the office we can be found in
• Drysdale Building Room E321
• The door is always open
• (except when we are at lunch)