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What is FEC? Full Economic Costing

What is FEC? Full Economic Costing. Background. 1998 Spending Review – Extra Research Funding TRAC: All Universities were in deficit for research Significant underspend in infrastructure

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What is FEC? Full Economic Costing

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  1. What is FEC?Full Economic Costing

  2. Background • 1998 Spending Review – Extra Research Funding • TRAC: • All Universities were in deficit for research • Significant underspend in infrastructure • In 2002 additional funding was awarded plus initiatives like SRIF 1 and 2, SRIF 3, JIF, and SPUR 1 and 2 in NI • Overall aim of FEC is sustainability of the research base

  3. What is Sustainability? The University is being managed on a sustainable basis. If taking one year with another it is recovering its FEC across its activities as a whole and is investing in its infrastructure at an appropriate rate to maintain futureproductivity This will require the calculation of FEC

  4. FEC Cost Types and Definitions Directly Incurred (DI): Expenditure that is incurred specifically for the project such as new staff, travel, consumables. Directly Allocated (DA): Estimated costs of services (such as existing staff time and facilities) used by the project that are shared by other activities and projects. Indirect: University Overheads allocated to the project. Central administrative cost.

  5. Facility (i.e. estates) and overhead (i.e. indirect) costs are based on the academic/research hours spent on the project. Estates Cost: £15,697/FTE Lab £9,417/FTE Desk Indirect (ID): £30,380/FTE FTE, Full time equivalent (1 person for 1 year x 100%) Procedure to establish the rates are audited.

  6. Research Council Definition • Standard Year = 1,650 hrs = 44 wks • Hours in Standard Week = 37.50 hrs

  7. Choices – Costing v Pricing • No choice with cost – FEC method gives cost • Do have choice with price i.e. 50% of FEC 70% etc Funder ‘type’ sets the % • Strategic pricing at less than 100% of FEC will require high level approval

  8. The proposed costing and pricing policy for University of Ulster external grants is as follows: - * FEC will still be calculated – Partnership Fund ** NI Departments, particularly Invest NI, will be kept under review for strategic reasons to see if 100% will apply to projects funded from this source

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