Research Contracts 11 October 2007

1. Research Contracts11 October 2007 University of Strathclyde Kathleen Boyle

2. Objective of Presentation • Full Economic Cost (fEC) – General • How fEC Contracts are costed • How fEC funds are allocated • Contact info • Questions

3. fEC General Background and Reasons for introduction: • fEC Govt initiative - expansion of TRAC • Aimed at identify the true cost of Research • Recognised that Research had been under funded • Need to ensure future sustainability of Research • Additional funds to be used to invest in Research infrastructure – not to increase volume of Research • Overall Research portfolio should be in balance

4. fEC General Time Allocation Survey (TAS) and fEC: • TAS is very important part of TRAC calculations • Staff costs allocated on basis of TAS results to R • Therefore TAS results have direct impact on Indirect rate used for Research (note should record time against direct activity where appropriate – if include as Support will lead to high Indirect rate)

5. fEC General Feedback from Research Councils: • Justification of Resources • Investigator time • Other DA costs in particular technicians and Research Facilities (Estates, Indirect and General Technical Support do not need justification as charge per FTE) • Costs as DI • must be charged as actuals, have auditable record • staff not working 100% on project but included as DI must keep timesheets

6. fEC General Pay Modernisation – additional costs: • Research Councils • Research Councils agreed to reimburse HEIs for applications submitted after 10th March 2005. Paid as part of final claim • Other Funders • Needs to be looked at on a case by case basis as some funders will pay

7. fEC General Quality Assurance and Validation (QAV) • On behalf of Research Councils but may be used by other funders (e.g. OGDs, EU) • Will look at all aspects of TRAC including TAS, calculation of rates for Estates, Indirect, Technicians and Research Facilities • Visit during 2008 • Financial sanctions if not following Guidance

8. How fEC Contracts are Costed • Directly Incurred (DI) vs Directly Allocated (DA) • Costs allowed under DI • Costs allowed under DA • pFACT Costing Tool

9. How fEC Contracts are Costed Directly Incurred (DI) vs Directly Allocated (DA) • DI - additional costs as result of research project : • Staff costs – where work 100% on project • Consumables, Equipment, Travel etc • Now also includes Research Facilities (since Aug 07) • DA - existing costs recharged to research project: • Staff costs – established staff • Estates • Indirect

10. How fEC Contracts are Costed Established Staff Costs – core and non core: • Academic • Costs not previously funded by RC • Guidance on estimating time provided (see fEC web pages) • Costs will normally be based on banded rate • Research staff - working less than 100% • Costs for staff already fully funded should not be included (e.g. Research Fellowship)

11. How fEC Contracts are Costed Technicians: • Three types in relation to Research: • Directly Incurred (100% on project) • DA – Pool (working on several specific projects) • DA – General Technical Support (providing general support e.g. stores, health & safety) • General Technical Support included as charge per FTE (for Lab based departments only) • No longer appropriate to request general time e.g. 0.5 FTE – should state no. of days or hours required • Calculation of Technicians costs subject to QAV review

12. How fEC Contracts are Costed Facilities: • Now two types: • Small Research Facility - SRF (< £300k) • Major Research Facility – MRF (> £300k) • Must follow guidance in determining rate • Rates will be added to pFACT • Can now be included as DI • Calculation of rates subject to QAV review • Further information on fEC web pages

13. How fEC Contracts are Costed Estates Charge: • Total cost of Estate allocated to T, R & O based on Departmental Occupancy Survey by Estates (Nov 05)http://www.strath.ac.uk/estates/space/surveys/ • Charge on basis of £ per FTE. Calc Feb each year • Two rates – Lab and Generic • Calculated automatically using pFACT • No justification required • Calculation reviewed as part of QAV

14. How fEC Contracts are Costed Indirect Charge: • Support costs of Research including: • Academic time on support (allocated per TAS) • Costs of support staff (allocated based on TAS) • Central Support departments costs (allocated based on TAS or other drivers) • Charge on basis of £ per FTE. Calc Feb each year • One rate across the University • Calculated automatically using pFACT • No justification required • Calculation reviewed as part of QAV

15. How fEC Contracts are Costed pFACT: • Eases burden on Academics • Calculates FTE related costs automatically • Includes inflation, future pay awards, increments etc • Calculates Income automatically (Income Templates) • All staff applying for Research should use pFACT • Request access via Head of Department • Further info on fEC web page

16. fEC – How Budgets are allocated Dependant on relationship between fEC and Price: • Price = fEC – budgets allocated in full • Price > fEC – budgets allocated in full, surplus added to Indirect • Price < fEC – DI budgets allocated in full, remaining budgets reduced pro rata (Established staff, Estates, Indirect)

17. fEC – How Budgets are allocated Allocation of DA Funds: • Established staff: • Core – direct to Faculty • Non Core – direct to Non Core account • Estates – direct to EDF account • Indirect – split 85:15 (as with pre fEC overheads) • All DA (overheads) charged through X budgets • Allocated quarterly in arrears

18. fEC – How Budgets are allocated Underspends on Fixed Price Contracts: • If fully funded – underspend added to Indirect • If not fully funded – split 50:50 between: • Estates (EDF) • Department (CF account)

19. fEC • Further information: fEC web pages www.strath.ac.uk/fec • Main contact in Finance: fEC Accounting Manager k.boyle@strath.ac.uk