1. Information Systems Services Directly Allocated Costs Road Show March 2007

2. intend for your advice to provide difficulties for those with disabilities Agenda Overview of fEC and DACS Overview of the COSTA Changes Overview of the MIS Solution Overview of the SAP Solution Go Live… Information Systems Services

3. fEC + DACS Why a reporting solution is needed

4. Sustainability and Purpose fEC of Research Research is not sustainable on current basis: Deficit on both Public Funded and Non-Public Funded research close to £1bn/year Poor understanding of cost base / low price culture Under-investment in infrastructure (£8bn backlog maintenance) Widening gap between value of QR and external research project funding Overview of fEC and DACS

5. fEC of a Project A price which, if recovered across an institution’s full programme, would recover the total cost (direct, indirect and total overhead) of the institute, including an adequate recurring investment in the institution’s infrastructure. Sector costing methodology developed by JM Consulting - Directly incurred costs, directly allocated costs, indirect rate, estates rate Overview of fEC and DACS

6. Directly Allocated Costs PI and co-investigators time and salary, pool technicians, major research facilities and equipment. (Calculated and reimbursed on the basis of estimated costs.) Estates Rate Fte cost - estates costs and the part of the infrastructure adjustment that relate to academic departments; including laboratory technicians and the costs of equipment and major research facilities. Indirect Rate Fte cost - includes support time of academics, COCE, central services, departmental support Overview of fEC and DACS

7. fEC accounting at UoL Project Grant Accounts reflect the total project fEC (internal & external) Internal Fund Contribution ( ‘20%s’) then reposted to School/Institute Internal Fund from the Project Grant Account For any research project, Net Recovery for School = DACs (including Estates) + Indirect – IFC Overheads continue to exist – on Old grants + ongoing for some sponsors Overview of fEC and DACS

8. WBS RG.ERRI.471250 Sponsor Share £500 £ Grant 471250 External Fund £500 Grant 471250 External Fund £250 Grant 471250 Internal Fund £250 Month end Processing WBS RG.ERRI.471250 Sponsor Share £250 Internal Order Core Account Internal Share £250 Month end Processing £250 Grants Management Overview of fEC and DACS

9. Grant 471250 External Fund Grant 471250 Internal Fund Month end Processing Core accounts Directly allocated Cost recoveries £’s Cost of fEC Month end Processing Core account Internal Share of costs From WBS Grant 471250 External Fund To WBS Grants Management Overview of fEC and DACS

10. Recovery Forecasting Essential to enable Schools and Faculties - to budget for current year - to forecast for future years - to plan for sustainability Overview of fEC and DACS

11. Development of Research Recoveries Forecasting at UoL ISS, RSU + Faculty representatives have explored options and developed specifications Pragmatic compromises have been made where necessary - emphasis on essentials not ‘nice to haves’ - emphasis on availability for this planning round - changes needed to COSTA etc 3 reports needed to give net impact of Research Grants recoveries Possible future aggregating report? – High level Management Information % recoveries by HESA sector, PF, NPF Overview of fEC and DACS

12. The three reports… For grants >470000 (and all overheads) – Both live Awards and Applications 1. Internal Fund Commitment (IFC) = e.g. the 20% RC debits for grants >47000 2. DACs (MIS) = IDC, Estates, Overheads, DACs – Investigator, Salaries (DA), Equipment Access (Annual and Quarterly versions) For grants <470000 – ‘Actuals’ for live Awards only 3. DACs (SAP) = Recurring Journal report = RG staff and non-staff transfers Overview of fEC and DACS

13. Possible Causes of Variances….. 1.Changes between Application and Award – value, dates, splits 2.Changes after Award – value, dates, splits 3.Rounding adjustments – eg 3 investigators at 33.33% are rounded down to 33%: Actual postings at 33.33%, Forecast at 33% (process under review) 4.Prior Years under/over spend – Not reflected in the forecast Go Live…

14. Where to get help DACS Support Webpage (http://www.leeds.ac.uk/iss/infosystems/mis/dacs.html)http://www.leeds.ac.uk/iss/infosystems/mis/dacs.html RSU for Data Interpretation Queries ISS Helpdesk (33333) for IT Issues Go Live…