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Chris Beynon (DRI)
Research Projects – Budget Preparation
Chris Beynon
External Funding Officer Department of Research and Innovation
Agenda
Overview Costing Models Directly Incurred Costs Non-FEC Model & Example fEC Model Example – FEC Costing Résumé Q & A
Research Support Office (RSO)
• The RSO provides support, advice and guidance to all University staff
• Each School has a designated Pre-Award and Post-Award Officer
• Pre-Award supports activities up to the point of award (including contractual negotiation)
• Post-Award provides support in the financial management of grants
Project cost vs price
• Cost – cost to the University of all the resources needed to complete the project
• Price – amount actually paid by the funder
Terminology • Direct Costs – costs attributable to the project, which may be:
Directly incurred – new costs which would not be incurred if the project did not go ahead e.g. research assistant salary, equipment, consumables
ORDirectly allocated - costs that can be estimated to
projects e.g. Principal investigator time, general technical assistance.
• Indirect Costs – costs which cannot be identified precisely for each research project, including items such as library, central services and departmental administration. Without this infrastructure research could not go ahead
Overview – Costing Models
• A research proposal will usually contain basic financial costs which may be defined under several major categories, depending on the cost model employed by the Funder
• The common models are based onFull Economic Costs (fEC) i.e. true cost to UniversityNew Costs plus overheads as a % of salaries
(standard pre September 2005)
Overview – Costing Models
• Definition of fEC“A price which, if recovered across an institution’s full
programme, would recover the total cost (direct, indirect and total overhead) of the institution, including an adequate recurring investment in the institution’s infrastructure”
• Introduced September 2005 for UK Research Council applications
• Now in use for some schemes offered by other funders, e.g. the Department of Health, British Academy
Overview – Costing Models• Research Councils – will pay 80% of fEC (rest from Quality
Research (QR) and institution’s own funds)• Government Departments – per HM Treasury “should expect to
pay 100% of FEC for research commissioned from universities”• Charities – will continue to only pay directly incurred costs,
therefore ensure any costs that can be classed as direct costs are included.
• Industry – pricing is market-based not cost-based but introduction of fEC should exert upward pressure on pricing and cost recovery as institutions start to understand full costs
• EU framework (FP7) – complex new model introduced with interim 60% overheads and 75% intervention rate (essential to consult DRI for budget preparation)
fEC Model - Objectives for fEC
Universities to achieve sustainability by:-
• Establishing and recognising the fEC of activities• Securing better prices• Improving project management and cost recovery• Investing in the institutional infrastructure• Managing activity strategically - increased emphasis on
management and teaching portfolios
Overview• Always read the Funder’s Terms and Conditions in
Website Scheme Guidance Notes
• Check The Funder’s Priorities Principal Investigator (PI) Eligibility Rules Allowable Costs Submission Route Deadline
Directly Incurred Costs (DI) – fEC & non-fEC
Directly incurred Costs are new costs specific to the project and include:
• Salaries of Staff employed on Project• Equipment • Travel & Subsistence• Other Costs (e.g. consumables, recruitment,
PC/laptops, sub-contractors)
Directly Incurred Costs – Staff Salaries
• To prepare estimate of staff costs with Sirius Cost Calculator (http://www.siriusweb.leeds.ac.uk/offerSub.asp):
• Start & End Date of Employment • % Full Time Employment• Grade/Spine Point• Classification e.g. Academic, APM , Technical
Directly Incurred Costs – Research Assistant Salary
Costing type Standard CostingInstitution Swansea Increment Date 01/10/2011
Promotion date N/A New scale N/A
Salary scale Swansea Grade 7 New point N/A Spinal point: Point 28 New salary N/A Salary £28,139.00London allowance £0.00FTE 100% Use discretionary points Yes, Additional allowances £0.00 Financial year end MarchPension USS Cost percentage 100%Start Date 01/04/2011End Date 31/03/2013
Pay Award Date Percentage Threshold Pay Award Date Percentage Threshold01/08/2010 onwards 3 0
Financial year Salary Cost Pension Cost NI Cost TotalApr 2011 To Mar 2012 £30,011 £4,802 £2,308 £37,120Apr 2012 To Mar 2013 £31,838 £5,094 £2,614 £39,547Overall Total: £76,667
Staff categorySwansea Pay Scales
Calculation methodStandard (include increments+inflation)
Directly Incurred Costs – Technician Salary
Costing type Standard CostingInstitution Swansea Increment Date 01/08/2012
Promotion date N/A New scale N/A
Salary scale Swansea Grade 4 New point N/A Spinal point: Point 13 New salary N/A Salary £18,117.00London allowance £0.00FTE 100% Use discretionary points No, Additional allowances £0.00 Financial year end MarchPension UWS Cost percentage 60%Start Date 01/04/2011End Date 31/03/2013
Pay Award Date Percentage Threshold Pay Award Date Percentage Threshold01/08/2010 onwards 3 0
Financial year Salary Cost Pension Cost NI Cost TotalApr 2011 To Mar 2012 £11,420 £2,113 £753 £14,286Apr 2012 To Mar 2013 £11,993 £2,219 £850 £15,062Overall Total: £29,348
Staff categorySwansea Pay Scales
Calculation methodStandard (include increments+inflation)
Directly Incurred Costs – Non Salary Costs• Equipment – purchase, VAT, installation and set-up,
maintenance contract and insurance• (Quotations may be required - refer to University Finance
Department’s Procurement Website and Funder’s Guidelines) • Travel and Subsistence – essential research project meetings,
conferences directly relevant to project• Consumables, including laboratory reagents; software
licences; essential specialist publications; recruitment costs• Replacement Teaching Costs; essential Staff Training &
Development costs• Project studentship fees and stipends
Non fEC Model – Indirect costs
• Sometimes known as overheads • Refers to costs of room space, heat, light, water, University
and School administration, such as library and computing facilities, departmental secretarial and technical services
• Overhead costs are NOT met by Charities• Typically overheads may be charged as a % of total staff costs • Consult Funder’s Terms and Conditions for eligibility and
maximum overhead rate
Non fEC Model – Example Research Project Application: non-fEC model salaries with increments & inflation Project Title: Development of a ................
Principal Investigator: G Smith
Duration: 01/04/2011 to 31/03/2013
SALARIES Grade Spine Point
Cost (£)
Researcher, TBA 24 months @100% FTE
7 28 76,667.00
Technician/clerical, TBA 24 months @ 60% FTE
4 13 29,348.00
TOTAL SALARY COST 106,015.00 CONSUMABLES * *to be itemised 28,000.00 TRAVEL & SUBSISTENCE Project meetings 350.00 Conference attendance (PI and RA) - year 2 680.00 TOTAL TRAVEL & SUBSISTENCE 1,030.00 EQUIPMENT OVER £3,000 * quotations may be required 4,500.00 OTHER COSTS RA external training course 450.00 Laptop (RA) 600.00 Recruitment costs 800.00 Publication charges 300.00 TOTAL OTHER COSTS 2,150.00 GRAND TOTAL DIRECTLY INCURRED COSTS 141,695.00 Overheads @ 25% staff costs 26,503.75 check funder's guidance for eligibility and ovehead rate)
TOTAL FUNDING REQUESTED 168,198.75
fEC Model – Cost Headings
Costs are broken down according to four fund headings:
DIRECTLY INCURREDDIRECTLY ALLOCATED
INDIRECT COSTSEXCEPTIONS
Note: Only academic and research staff draw down fEC costs
fEC Model – Directly Allocated Costs
• NB: Use the fEC Cost Calculator on DRI website for Swansea University costs
• Collaborative projects - partner HEIs to provide their fEC calculation
• Investigators’ Costs (PI and Co-I)
Estimate of time spent on projectBased on 100% FTE = 1650 hours/annum (44 weeks @37.5
hours/week)Principal Investigator (PI) & Co-Investigators (Co-I)Use of salary bands (e.g. Professor, Senior Lecturer, Lecturer 9,
Lecturer 8)
fEC Model –Directly Allocated Costs (DA)• NB: fEC Cost Calculator automatically calculates costs from total
investigator/researcher time on the project
• Estates chargesStandard costs based on predominant departmental usage
(Lab/Classroom)Charge will be per FTE for academic & research staff only
• Infrastructure technician – Lab-based Schools only
• Other DA costs are already factored into the Swansea rates, e.g. use of most major research facilities & pool staff
• Charge out rates for two major facilities – CSAR and nanotechnology centre & one small facility
fEC Model – Indirect Costs
• NB: fEC Cost Calculator automatically calculates this cost
• Library services / learning resources• Clerical/ secretarial• Departmental services• Central & distributed computing• Cost of capital employed
fEC Model – Exceptions
• Equipment - New purchases of equipment remains a directly incurred cost. The Research Councils will fund up to £50K of equipment purchased on a project at 80%, and the remainder at 100%.
• Project Students – Student stipends and tuition fees will be funded at 100%
fEC Model – Preparing the costs
• Two online forms are available to help with costing your proposal:• Sirius (DI staff salaries)• fEC Cost Calculator (Investigator, estates and indirect costs)
http://www.swansea.ac.uk/research_innovation/ResearchandProjectSupport/Pre-award/ApplicationResources/
• For UK Research Council applications, obtain a registered account (see Research Councils UK http://www.rcuk.ac.uk/ and http://www.rcuk.ac.uk/je-s/ )
fEC Costing Form for Investigators, Estates and Indirect Costs(for proposals between 1st February 2010 - 31st January 2011)
Complete & transfer to application form
Contract Start Date: 01/04/2011 Complete
Duration (months): 24 Months Transfer to application form
Contract Lab-based (Y/N): y Calculated on application formDo not complete
Contract Title : G Smith; Development of a .....................
NameDuration Months % of time
Total no. of hours
charged to the grant Salary Band
Salary Rate
FTE for project life
Cost Estimate
FTE for Estates costs
FTE for Indirect costs
FTE for Technician infra
costs(based on 1650
hrs p.a.)
Principal Investigator1 G Smith 330 hrs Professorial £83,089 0.20 £16,618 0.20 fte 0.20 fte 0.20 fte
Co-Investigator/s1 A Jones 165 hrs Lecturer 9 £52,570 0.10 £5,257 0.10 fte 0.10 fte 0.10 fte2 0 hrs - n/a3 0 hrs - n/a4 0 hrs - n/a5 0 hrs - n/a6 0 hrs - n/a7 0 hrs - n/a8 0 hrs - n/a
Investigators Sub-Total £21,875
Researcher/Co-Investigator, Research Officer (do not include Technicians) 1 RA TBA 24 months 100.0 % Calculated using Sirius webpage 2.00 2.00 fte 2.00 fte 2.00 fte2 0 months 0.0 % Calculated using Sirius webpage - n/a3 0 months 0.0 % Calculated using Sirius webpage - n/a4 0 months 0.0 % Calculated using Sirius webpage - n/a5 0 months 0.0 % Calculated using Sirius webpage - n/a6 0 months 0.0 % Calculated using Sirius webpage - n/a7 0 months 0.0 % Calculated using Sirius webpage - n/a8 0 months 0.0 % Calculated using Sirius webpage - n/a9 0 months 0.0 % Calculated using Sirius webpage - n/a10 0 months 0.0 % Calculated using Sirius webpage - n/a11 0 months 0.0 % Calculated using Sirius webpage - n/a12 0 months 0.0 % Calculated using Sirius webpage - n/a
TechniciansPool technicians 0 hrs £21.64 - n/a n/a n/a
Click here for information concerning Technicians
Total project fte 2.30 fte 2.30 fte 2.30 fteRate £12,139 £34,081 £939
Charge £21,875 £27,920 £78,386 £2,160
Key
Note: Laboratory - estates £ 12,139 Classroom - estates £ 6,181 Indirect £ 34,081 Lecturer 8 £ 40,426 Lecturer 9 £ 52,570 Senior Lecturer £ 64,572 Honorary £ - Professorial £ 83,089 Clinical - Lecturer £ 45,100 Clinical - Consultant £ 118,776 Technician £ 939
Research Project Application fEC model Research Council (salaries with increments but not inflation)Project Title: Development of a ...................Principal Investigator: G Smith Duration: 01/04/2011 to 31/03/2013
SALARIES Grade Spine Point 100% Cost (£) RC % RC funding
Researcher, TBA 24 months @100% FTE 7 28 71,795.00 80 57,436.00
Technician, TBA 24 months @ 60% FTE 4 13 27,470.00 80 21,976.00
TOTAL SALARY COST 99,265.00 80 79,412.00
CONSUMABLES * *itemise 28,000.00 80 22,400.00
TRAVEL & SUBSISTENCEProject meetings 350.00 80 280.00Conference (annual) 680.00 80 544.00TOTAL TRAVEL & SUBSISTENCE 1,030.00 80 824.00
EQUIPMENT £3,000 - £50,000 4,500.00 80 3,600.00Balance over £50,000 0.00 100 0.00
OTHER COSTSRA external training course 450.00 80 360.00Laptop (RA) 600.00 80 480.00Recruitment costs 800.00 80 640.00Publication charges 300.00 80 240.00TOTAL OTHER COSTS 2,150.00 80 1,720.00
GRAND TOTAL DIRECTLY INCURRED COSTS 134,945.00 107,956.00
fEC costs (from fEC calculator)Directly allocated PI & Co-I 21,875.00 80 17,500.00Estates 27,920.00 80 22,336.00Indirect 78,386.00 80 62,708.80Infrsatructure technician 2,160.00 80 1,728.00
TOTAL FUNDING REQUESTED 265,286.00 212,228.80
Example fEC costing – Research Councils
Scheme:
Project Title:
Organisation: Swansea University Department:
School of the Environment and Society
Summary fund heading
Fund heading Full economic cost
RC contribution % RC contribution
Directly Incurred Staff 99,265.00 79,412.00 80
Travel & Subsistence
1,030.00 824.00 80
Equipment 4,500.00 3,600.00 80 Other Costs 30,150.00 24,120.00 80 Sub-total 134,945.00 107,956.00
Directly Allocated
Investigators 21,874.80 17,499.84 80
Estates Costs 27,920.00 22,336.00 80 Other Directly Allocated
2,160.00 1,728.00 80
Sub-total 51,954.80 41,563.84
I ndirect Costs Indirect Costs 78,386.00 62,708.80 80
Exceptions Staff 0.00 0.00 100 Other Costs 0.00 0.00 100 Sub-total 0.00 0.00
Total 265,285.80 212,228.64
Staff type Months
I nvestigator 3.75
Researcher 24
Technician 14.5
Other 0
Visiting Researcher 0
Student 0
Total 42.25
Standard
Test 4
Résumé – Points to remember
• Check Funder’s guidelines for eligible costs• Directly Incurred Costs (DI) to the Project are calculated in
the same way for each model• For non-fEC applications, estimate overheads if allowable• For fEC applications, estimate PI and Co-I time on the
project• For fEC applications, use the fEC Costing Form to calculate
the Directly Allocated, Estates and Indirect Costs• Transfer fEC costs to Funder’s application form (e.g. Je-S)
Résumé – Notes• Swansea fEC rates are reviewed annually by the Finance
Department & the fEC Costing Form posted on intranet in February (follow link from pre-award website)
• Although Research Councils fund 80% of fEC, award holders receive 100% of the Directly Incurred Costs to manage the Project
• University policy is to prepare ALL applications for external funding under the fEC model, unless the Funder specifies otherwise
• Applications > £100K may require risk assessment BEFORE submission. Applicants must liaise with Ciaran Whyte, Planning and Strategic Projects Unit
Résumé – DRI Support• Consultations via One-to-One meetings or email, including advice
on budget preparation• Plan ahead – allow time for alterations & obtaining partner fEC
costs• AT LEAST 5 WORKING DAYS before deadline, calculate costs,
forward costs to DRI for checking• At least 4 working days before deadline, submit final document to
School approver for submission to DRI• 2 working days before deadline, DRI authorizer submits proposal
electronically/signs document• Web link
http://www.swan.ac.uk/research_innovation/ResearchandProjectSupport/
Résumé – DRI Support
• This timetable is the minimum required to get the application through the submission process - please allow more time whenever possible.
• For applications received less than 2 working days before the deadline, DRI verification may not be possible. Therefore the School must bear the impact of any inaccuracies or omissions.
Résumé – DRI Contacts• Ceri Jones: Deputy Head, DRI: ext 5412• Julie Williams: Senior External Funding Officer, DRI: ext 5824
• Pre-Award Team– Chris Beynon: ext 5015, [email protected]
School of Environment & Society; School of Business & Economics; School of Law; Medical School (Biomedical)
– Debbie Saunders: ext 2094 [email protected] School of Human Sciences; School of Arts & Humanities; Medical School (Health
Services Research)
– Adrian Walters: ext 3724, [email protected] School of Engineering; School of Physical Sciences; School of Health Science
Preparing Research Application Budgets
• Thank you for your time
• Any Questions?