1. Full Costing University of Vienna

2. Content Introduction Aims of Full Costing Implementation of Full Costing Full costing model Conclusion and Challenges

3. Key figures of the University of Vienna Organisation – University of Vienna – 18 Faculties Turnover 450 million euros – 54 million euros research revenues – 7 million euros research revenues from EU projects 8.600 employees 84.000 students 180 studies

4. Aims of Full Costing Statutory obligation to establish a full costing system (§ 16 Abs 1 UG 2002) Ensure sustainable funding by identifying the full costs of teaching and research activities (toll for strategic management decisions) Pressure from national and international funding organizations for transition to full cost accounting (e.g. FP 7) Discussion about separate funding of teaching and research by the Austrian Government (part of the Government Program in Austria)

5. Implementation of Full Costing Project started in 2006 Resources & Know-how: 1 FTE, external consultants Perfect Integration in the accounting system of the University of Vienna (SAP R/3) as part of the analytical accounting Implementation in 2007 Continuous improvement, especially in research

6. Implementation of Full Costing Transparent allocations of costs based on simple principles Allocation of as many costs as possible directly to activities, e.g. direct research costs Central costs (e.g. Housing, IT) are driven to departments and then to activity (Teaching, Research, Others) mainly on basis of square metres Cost objects are studies and identifiable research projects (e.g. externally funded projects) Working hours are both in teaching and in research the key cost drivers

7. Implementation of Full Costing Basis for allocation is the working capacity of academic staff Total capacity in hours - Working hours Teaching - Working hours Research Projects Working hours Other (Research) Activities Problem: no time sheets Indirect determination of working hours – Weighting of contact hours in teaching (preparation of course) – Hours for Research Projects are identified by different criteria, e.g. funding of project, leader of project Personnel costs are calculated at entity level (faculty) and category of persons (e.g. professor, assistant, lecturer)

8. Implementation of Full Costing – Model I Service Departments Library University Management - Rectorate- - Employee Organization …. Human ResourcesInternational Relations Students Information and Admission Public RelationsFinance and Accounting Faculties Other Service Departments Units Study Coordinator- Support Others Housing Buildings IT Infrastructure Departements Sub- units Research PlatformsEducational Competence Centers

9. Implementation of Full Costing – Model II Departements Subunits Research Platforms Educational Competence Centers Study Coord. 1 Study Coord. 2 Cost Objects Study Coord. 3 Study Coord. 4 Study Coord. 5 other Study Coord. Studies 1 Studies 2 Cost Objects Studies 3Studies 4Studies 5 Studies SKGs TeachingExternal funded research Cost Objects Research Others

10. Conclusion and Challenges - Teaching Full costs of teaching are well identified The outcome are actual costs per student (great range between humanities and natural sciences) Use for standard costing calculations of studies

11. Conclusion and Challenges – Research Full costing methodology is focused on the control and decision needs of the management of the University of Vienna Separatly adjustments necessary, to fulfil the EC cost reporting requirments (elimination of ineligible costs from indirect costs -> indirect taxes, duties, exchange rate losses, interest payable, provision) University of Vienna uses flat rate of 60 % in FP7 Ongoing preparation for declaring actual indirect costs (Simplified Method) in the next FP Main problem: no time sheets

12. Thank you for your attention! Contact details Dr. Manuela Raith Vice Head of Accounting and Finance Dr.-Karl-Lueger-Ring 1 1010 Vienna Tel.: +43 1 4277 12503 Email.: manuela.raith@univie.ac.at