fEC

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fEC

• Full Economic Costing of Research (and Teaching
  and Administrative) Facilities

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Why calculate, account for, and charge the fEC of
space/facilities?

• To eliminate cross-subsidisation
• If premises-related costs are calculated as
• UCL premises-related expenditure () /m²
• Total floor area (m²)
• and
• less than this is charged to/recovered from
  research sponsors cross subsidy from another
  area of UCLs business.
• research sponsors are charged for facilities at a
  flat rate, i.e. some space is over charged (e.g.
  storage, offices, etc.) and some is undercharged
  (e.g. laboratories) this results in the charge
  for lower cost facilities cross-subsidising
  higher cost facilities

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Why calculate, account for, and charge the fEC of
space/facilities?

• To achieve sustainability
• In the current (2004-2005) financial year the
  premises budget is 5.5 million less than what
  was estimated to be necessary for the proper
  upkeep of the estate (not including what is
  needed to address the accumulated backlog of
  maintenance).
• The Estates and Facilities budget does not
  include a provision for such items of capital
  expenditure as the replacement of furniture and
  fittings (e.g. laboratory benching, etc.) or the
  cost of meeting evolving and increasing
  legislative requirements, or to meet the cost of
  updating facilities.
• The objective is ultimately to ensure that what
  is spent and financially provided for is what is
  needed adequately to run and maintain the
  facilities.

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Why calculate, account for, and charge the fEC of
space/facilities?

• The fEC calculation must therefore include
• The amount actually spent on premises plus
• an addition (a so-called infrastructure
  adjustment) to make good the difference between
  what is spent and what ought to be spent and
  provided for.
• A banded costing mechanism which reflects the
  fact that there are significant differences in
  the cost of servicing and maintaining different
  types of space

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4. The cost differentials
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