polaris house, north star avenue, swindon, wiltshire, sn2 1et tel (01793) 444000 e-mail:...
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Polaris House, North Star Avenue, Swindon, Wiltshire, SN2 1ET Tel (01793) 444000http://www.epsrc.ac.uk/ e-mail: [email protected]
Helpline (01793) 444100
Engineering and Physical SciencesResearch Council
John WandProgramme Operations
Tel: 01793 444457
e-mail: [email protected]
EPSRCPolaris House
North Star AvenueSwindon SN2 1ET
Who funds HE research?
Insert pie chart of sources of HEResearch income for most recent year
available - see SET Statistics
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1988-89 1999-00
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OST/DTI
Funding Councils
UK Industry
EU
UK charities
Government
Other
HEI Research income
Insert the slide from the XCRand the IiI report
Expenditure by FCs and other funders
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1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00
HEFCs
Total project funders
The problem: trends
Increased pressure on all HEI staff to conduct and publish research
Poor understanding of cost base
Neglect of long-run costs
Low price culture
Stagnating QR alongside increased project funding
The problem: present position
Under-investment in university infrastructure highlighted in the Dearing Report in 1997
Transparency Review (2000) detailed Backlog Recurrent gap
Investing in Innovation (2002) confirmed a “persistent failure to invest in research infrastructure”
S&I Investment Framework (2004) affirmed need to address this
Investing in Innovation/S&I Investment Framework
Research in HEIs must be sustainable HEIs must understand and recover FEC overall Dual support system remains Government is contributing very significant amounts of
money for sustainability: SRIF increasing to a permanent stream of £500M per year Extra QR (£244M + SR2004) Extra money for Research Councils (£120M+£80M)
Better cost recovery from others eg Government Departments
Implementation
Calculating full economic cost of individual projects
Terms of trade between HEIs and RCs
TRAC Methodology TRansparent Approach to Costing
Activity Based Costing
Introduced at high level
Teaching (public & non publicly funded)
Research (PF and NPF)
Other
Cost not Income
Accepted by HMT
TRAC Methodology
Extend to Project level
Robust, consistent
Balance accuracy and bureaucracy
NO Timesheets
Roll out by January 2005 (grant applications to RCs from Sep ‘05, money paid out from April 2006)
QA process
Benchmarking exercise
Project Costing
Current fEC
Dedicated staff X X
Academic staff -time X X
Academic staff - cost X
Equipment X X
Other costs, T&S X X
Indirect costs – 46% X
Space charge – per FTE X
Indirect cost – per FTE X
Terms of trade between HEIs and RCs
RCs pay a fixed % of full economic cost
Moving to ‘close to’ 100% by 2010
Includes Fellowships (including RS, RAEng)
Excludes PGR (for the present)
RC Funding; current position
FULL ECONOMIC COSTS
Direct costs
Indirect costs
eligible staff costs
(e.g. Research Assistants,support staff)
Research council contribution to indirect costs = 46% of eligible direct staff costs
The institution must find the rest from other sources.
other eligible
costs (e.g. equipment)
ineligible costs
(e.g. salary of the Principal Investigator)
Eligible – RC will pay these costsShaded area – what RC will fund
RC funding; proposed model
FULL ECONOMIC COSTS
Direct costs
Indirect costs
Research Council
pays approx 70% of full costs
The institution must
find the rest from other sources.
Proposal Form
Directly Incurred Staff Equipment T&S Consumables
Directly Allocated Investigators Estates Other Directly Allocated (eg pool technicians)
Indirect Costs Exceptions
Issues for move to FEC What percentage of FEC? roughly 70%
Same for all disciplines/RCs? (Yes)
Paying for P.I. salary? (Yes)
37.5 hr working week for costing purposes
Departments with no QR? (Yes)
Timescale and transition (Sept 2005)
Monitoring and adjustments
Issues for RCs for move to FEC
Monitoring academic time on projects etc Application numbers Differences between indirect cost rates
‘legitimate’ or inefficient? Verification/audit Assessment – value for money? Mathematics Small Grants
Value for Money ‘Research grant applications will be externally
peer reviewed in the same way as they are at present. …. This will not require a fundamental change in the role of the Committees whose job has always been primarily to advise on the quality of science described in the applications.’
Issues for HoDs in move to FEC
Academic time – balance between T & R
Budget
are costs being recovered?
What does the department pay for?
Access to QR funds
Provisional Timescale
New data requirements and processes (Paper based) September 2004
Administrative Workshops Autumn 2004
Training of peer reviewers mid 2005
Electronic forms available mid 2005
Applications on new basis from Sept 2005
Culture Change
Project costing methodology to be rolled out further than TRAC in HEIs (will impact on P.I.s)
HEIs know costs and set prices accordingly RCs operations will need to change (brief peer
reviewers)
Non RC funders – expect to fund all or part of FEC