1. Research Grants & Contracts Office ASM briefing Research Funding & Full Economic Costing February 2010

2. Agenda Brief intro on research projects and the Research Grants & Contracts Office Research Funders Full Economic Costing

3. Characteristics of Research Projects Specific objectives and aims; to carry out a piece or programme of research Fixed or maximum budget Defined time period Linked to research outputs or deliverables Grants vs Contracts

4. Research Grants & Contracts Office (RGCO) The RGCO, part of Finance Dept, provides administrative, financial and support services related to externally funded research projects Pre award: funding information, help with applications, approval, contract negotiation Post award: project accounting, approval of posts, allocation of overheads, financial reporting, contracts with partners Policy development Management information Training and events

5. Research Grants & Contracts Office structure Peter Westley Director of Finance Liz Francis Head of RGCO Craig Bryce Deputy Head Sharon Bell Research Accounts Officer Rassi Pelpola Research Accounts Assistant George Eyre Research Support Officer Marion Barthram Research Grants Assistant Theresa Ball Costing & Pricing Accountant

6. Research Grants & Contracts Office structure Liz Francis Head of RGCO Craig Bryce Deputy Head Sharon Bell Research Accounts Officer Rassi Pelpola Research Accounts Assistant Marion Barthram Research Grants Assistant Funding Information Theresa Ball Costing & Pricing Accountant George Eyre Research Support Officer

7. Research Grants & Contracts Office structure Liz Francis Head of RGCO Craig Bryce Deputy Head Sharon Bell Research Accounts Officer Rassi Pelpola Research Accounts Assistant George Eyre Research Support Officer Marion Barthram Research Grants Assistant Theresa Ball Costing & Pricing Accountant Applications

8. Research Grants & Contracts Office structure Liz Francis Head of RGCO Craig Bryce Deputy Head Sharon Bell Research Accounts Officer Rassi Pelpola Research Accounts Assistant Marion Barthram Research Grants Assistant Project Accounting Theresa Ball Costing & Pricing Accountant George Eyre Research Support Officer

9. Research Funding in Universities & The Dual Support System The division of Government funding of research through Funding Councils (HEFCE), and Research Councils. HEFCE provides core funding as block grants for infrastructure and research priorities – quality- related (QR) as informed by the RAE. Research Councils provide grants to meet the costs of specific projects and programmes of research. Other types of funders also provide project-based funding.

10. Research Funders Funder types: Research Councils: MRC, ESRC, AHRC etc. UK Charities: Wellcome Trust, Leverhulme Trust Other Government Departments, e.g. DCSF Industrial / commercial clients: Cancer Research Technology Ltd EU Govt & EU-based funders Overseas & other

13. RESEARCH INCOME BY SCHOOL 2004/ 05 2005/ 06 2006/ 07 2007/ 08 2008/ 09 FACULTY£000s% % % % % SCIENCE Biological & Chemical Sciences4555.03393.42502.42071.91271.2 Crystallography2,76430.53,00630.02,90327.53,39731.54,05437.6 Earth Sciences530.6450.4980.92031.91681.6 Psychology4,16645.94,23542.34,44642.14,64843.13,83235.6 SOCIAL SCIENCE Computer Sci & Info Systems2082.33603.64544.34894.55094.7 Economics, Maths & Statistics1161.31691.72001.92242.12912.7 Mgt & Org. Psychology490.51231.21661.61261.2810.8 Geography2412.72973.03233.1660.6130.1 ARTS English & Humanities340.41451.41231.22852.62041.9 History, Classics & Archlogy5245.85865.97397.05324.94243.9 Hist. of Art, Film & Visual Media2092.31231.21961.91261.21551.4 Langs, Linguistics & Culture500.5200.2320.3230.21851.7 Law800.91361.4420.4110.1180.2 Philosophy440.5520.51171.1390.4290.3 Politics & Sociology190.2530.51421.31561.41301.2 Psychosocial Studies 2192.0 CONTINUING EDUCATION620.73163.23333.22532.33363.1 9,07110010,00510010,56310010,78410010,775100

14. Typical types of awards Project Grants – up to 3 years, project staff and research expenses Programme awards – typically 5 years Fellowship awards for applicants salary and research costs Fellowship awards for replacement salary and research costs Awards for certain types of costs only, most commonly research expenses

15. Full Economic Costing (FEC) Introduced by the Government in Sept 2005 Used as basis to cost research projects, but very few funders will pay 100% of FEC Research Councils pay 80% of FEC A lot of the terminology and rules on FEC are quoted using Research Council / HEFCE rules Other funders pay according to their own terms and conditions

16. Cost vs Price Cost(100% FEC)£389,176 36m Project: 1 FT Postdoc RA, 10% of Prof PIs time, £10k consumables, £5k travel plus 1 PhD studentship. Based in a laboratory Price Govt Dept / Industry Research Council EU Charity £389,176 £323,293 £271,286 £208,358

17. What makes up FEC? 1. Directly Incurred (DI) costs 2. Directly Allocated (DA) costs 3. Indirect costs 4. Exceptional items

18. 1. Directly Incurred costs These are actual costs Project dedicated staff: e.g. Research Assistants Travel and subsistence Consumables New equipment, up to £50,000 *Research Councils allow virement between headings

19. DI Costs - Salary costs Salary costs are the payroll cost to the College, inc. employers NI and pension, e.g. RES2 pt 31: Annual Salary £30,747 London Allow £2,922 National Insurance £2,516 Pension scheme £5,387 TOTAL annual cost £41,572

20. DI costs - Non-salary costs Travel and subsistence for fieldwork, visiting colleagues, other premises, conferences Project workshops, meetings, dissemination Office consumables (stationery etc) Photocopying and printing Post, phone, fax Specialist books and journals Computer software and consumables Laboratory consumables/materials Subscriptions Equipment and any special adaptations needed for its use Insurance and maintenance for special equipment Advertising and recruitment of new posts Casual/agency assistance – e.g. for data entry, transcription, translation Consultants' fees or bought in services

21. 2. Directly Allocated costs PI costs*: based on max 1650hrs/yr Estates costs: Premises costs, cost per FTE of academic and research staff, Examples of current rates Feb 10; Office - £5,449 Laboratory – £10,069 Hi-Spec Laboratory - £16,249 Shared staff time*, e.g. support staff who work across more than one project Research Councils do not allow DA costs to be vired *based on estimated costs, not actual

22. 3. Indirect Costs Costs that are incurred by the College in providing the necessary infrastructure and support for the project. This includes central services such as recruitment, personnel, financial accounting and payroll services; central provision of libraries; computing services; committees; and departmental support. cost per FTE of academic and research staff, currently £32,740

23. 4. Exceptions Directly Incurred Costs that Research Councils fund at 100% of FEC Student fees/Stipend Equipment over £50k

24. EXAMPLE: 36m, 1 FT RA, 10% PIs time, £10k cons, £5k travel, 1 PhD – lab based FEC Directly Incurred (DI) Research Assistant 133,597 Consumables 10,000 Travel 5,000 Total DI148,597 Directly Allocated (DA) Principal Investigator 27,704 Estates39,015 Total DA66,719 Indirect Costs114,099 Exceptional Items PGR Fees & Stipend 59,761 Total389,176

25. EXAMPLE: 36m, 1 FT RA, 10% PIs time, £10k cons, £5k travel, 1 PhD – lab based FECResearch Council 80% FEC Directly Incurred (DI) Research Assistant 133,597106,878 Consumables 10,000 8,000 Travel 5,000 4,000 Total DI148,597118,878 Directly Allocated (DA) Principal Investigator 27,704 22,163 Estates39,015 31,212 Total DA66,71953,375 Indirect Costs114,09991,279 Exceptional Items PGR Fees & Stipend 59,761 Total389,176323,293

26. EXAMPLE: 36m, 1 FT RA, 10% PIs time, £10k cons, £5k travel, 1 PhD – lab based FECResearch Council 80% FEC EU - DA + PI + 20% overhead Directly Incurred (DI) Research Assistant 133,597106,878133,597 Consumables 10,000 8,000 10,000 Travel 5,000 4,000 5,000 Total DI148,597118,878148,597 Directly Allocated (DA) Principal Investigator 27,704 22,16327,704 Estates39,015 31,212 0 Total DA66,71953,37527,704 Indirect Costs114,09991,27945,214 Exceptional Items PGR Fees & Stipend 59,761 49,771 Total389,176323,293271,286

27. EXAMPLE: 36m, 1 FT RA, 10% PIs time, £10k cons, £5k travel, 1 PhD – lab based FECResearch Council 80% FEC EU - DA + PI + 20% overhead Charity DA costs only Directly Incurred (DI) Research Assistant 133,597106,878133,597 Consumables 10,000 8,000 10,000 Travel 5,000 4,000 5,000 Total DI148,597118,878148,597 Directly Allocated (DA) Principal Investigator 27,704 22,16327,7040 Estates39,015 31,212 00 Total DA66,71953,37527,7040 Indirect Costs114,09991,27945,2140 Exceptional Items PGR Fees 59,761 49,77159,761 Total389,176323,293271,286208,358

28. EXAMPLE: 36m, 1 FT RA, 10% PIs time, £10k cons, £5k travel, 1 PhD – lab based FECResearch Council 80% FEC EU - DA + PI + 20% overhead Charity DA costs only Directly Incurred (DI) Research Assistant 133,597106,878133,597 Consumables 10,000 8,000 10,000 Travel 5,000 4,000 5,000 Total DI148,597118,878148,597 Directly Allocated (DA) Principal Investigator 27,704 22,16327,7040 Estates39,015 31,212 00 Total DA66,71953,37527,7040 Indirect Costs114,09991,27945,2140 Exceptional Items PGR Fees 59,761 49,77159,761 Total389,176323,293271,286208,358

30. Further information www.bbk.ac.uk/rgco Finance Dept Handbook for School Administrators Funders websites Contact us!