Information Systems Services

Directly Allocated Costs Road ShowMarch 2007

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

Information Systems Services

fEC + DACSWhy a reporting solution is needed

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

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

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

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

WBSRG.ERRI.471250Sponsor Share

£500

£

Grant471250

External Fund£500

Grant471250

External Fund£250

Grant471250

Internal Fund£250

Month end Processing

WBSRG.ERRI.471250Sponsor Share

£250

Internal OrderCore AccountInternal Share

£250

Month end Processing

£250 £250

Grants Management

Overview of fEC and DACS

Grant471250

External Fund

Grant471250

Internal Fund

Month end Processing

Core accounts Directly allocatedCost recoveries

£’s Cost of fECMonth end Processing

Core account Internal Share

of costs

From WBS

Grant471250

External Fund

To WBS

Grants Management

Overview of fEC and DACS

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

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

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

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…

Where to get help

• DACS Support Webpage (http://www.leeds.ac.uk/iss/infosystems/mis/dacs.html)

• RSU for Data Interpretation Queries

• ISS Helpdesk (33333) for IT Issues

Go Live…