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fEC full Economic Costing Workshop Andrea Tinson PowerPoint Presentation
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fEC full Economic Costing Workshop Andrea Tinson

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  1. fEC full Economic Costing Workshop Andrea Tinson

  2. 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

  3. Elements of Full Economic Cost

  4. 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 < =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.

  5. Research Council Approach • Common forms and procedures, new T&C’s • All except MRC on Je-S from 1st September 2005 • Will not fund >100% 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 RC’s 80% fEC funding • Large equipment, surveys, project studentships

  6. 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 R&D to use the RC model

  7. 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

  8. 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

  9. How to cost a proposal

  10. Cost Headings • Directly Incurred Costs - RA’s, Travel, Consumables, Equipment • Directly Allocated Costs - P.I Time, Estate Costs, Equipment already bought • Indirect Costs - New Name for Overheads

  11. 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

  12. Example: A Project for illustration

  13. Resource Details • Three year project • 1 RA.6 for three years • 1 RA.8 for two years @ 50% time • Equipment £20,000 • Travel £3,000 pa • Consumables £4,000pa • PI time @ 15 hours per week for 2 years Prof time = £60,000 pa • PI time @ten hours per week for 3 years Prof time = £52,800

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

  15. 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

  16. Research Web http://www.city.ac.uk/finance/research

  17. 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

  18. Things to Remember cont.. • PI’s 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 MUSTBE approved by the Research Office BEFORE any costs/prices are given to the sponsor

  19. 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…..

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

  21. 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)