GUIDANCE MANUAL AND IMPLEMENTATION

1. GUIDANCE MANUAL AND IMPLEMENTATION Melanie Burdett J M Consulting Ltd

2. Principles • light-touch • build on existing Guidance • practical • robust • fair and reasonable • materiality • can be developed over time • holistic • consistency

3. Good & acceptable basis for start • Calculating average FTEs ** • Estimating investigator time ** • Recording FTEs by project on system • Allocating estates ** (on FTE basis) • Calculating indirect cost rates ** ** these need to be done already

4. Best practice (but over-ambitiousfor start) E.g. • Monthly FTE counts. • Estates allocation by building/room. • Timesheet evidence for PI time. • Project records for institution/own research. • All training done and sustainability processes in place by Jan 05.

5. Areas of new/developed guidance • Estimating time and costs of investigators. • Monitoring and reporting on project progress. • Costing of estates. • Other big estates-related costs. • Indirect cost rates. • Quality assurance of methods. • [Sustainability]. Timetable. Support available.

6. Estimating academic time by project • Project manager/grant applicant will estimate hours for type of project – x hrs per week. • Actual time will vary from this on each project, but overall for HEI and RC this should balance out. • Estimated hours * standard cost per hour (based on standard working week) = acad cost ‘budget’. • RCs will pay on budget (unless major variations occur). Various rules about externally funded fellows; clinicians; over-committed staff; etc. PIs will need training and support.

7. In project monitoring processes • PI to monitor progress and sign at end that time spent was not significantly different, or give reasons. Will need to keep records of meetings etc, but not timesheets. • Institution certifies that project is live (as now). • HEI to verify total by research councils thro TRAC system (needs budgeted time to be recorded).

8. Better accounting for estates – direct allocation to projects • Estates is biggest cost after staff. • Most sponsors likely to pay space as direct cost. • Institutions need to manage space, but most have a lot of work to do on this. • From 2005 must allocate space costs to project with a simple approach if good space data not yet available (e.g. two £/FTE rates – desk, and lab). • From 2007 need proper charging £ per sq m – differential types of space. • Guidance for multi-disciplinary, collaborative, off-campus, NHS, visiting fellows etc.

9. Better accounting for other direct costs • RAs, non-staff direct costs recorded as now. [Virement allowed.] • Other large costs – animals, glasshouses, specific Research IT etc all to be charged directly as well – no later than August 2007 • IT infrastructure can be direct, or as part of estates rates • Same requirements to show accounting record of charge

10. Indirect cost rates • Problem area with sponsors. • Residual indirect cost will be smaller and is mainly central services; acad support time; COCE. • Current % of staff cost method has flaws (not good driver and varies unhelpfully with salary), but is familiar and accepted by some research sponsors. • We prefer to move to using £ per academic FTE. • Institutions can use either method, & weightings. • Those without robust methods will receive a lower I/c rate from sponsors. • Two benchmark groups.

11. Developments to TRAC time allocation • Tighter TRAC process – three yearly (not three-five). • PGR student supervision to be excluded (through proxies if embedded).

12. Data quality and verification • HEFCE QA process will help institutions to develop their methods. • Includes benchmarking. • Are PIs using reasonable methods for estimating time? • Are good cost drivers being used? • Do indirect rates on projects reflect real project costs? • Is academic time sample for TRAC adequate? • Is management doing reasonableness checks? • Is a senior committee involved? Internal audit?