Part III - Annual TRAC

Section B: Minimum requirements

1. The minimum requirements are that:
   • costs of T, R, O, S are calculated;
   • costs of T, R, and O are calculated for each academic department; and are robust at the level of subject type or discipline group (clinical, laboratory, and non-laboratory);
   • the costs of R are calculated for each research sponsor type;
   • the definitions of T, R, O and S are followed – see Annex 6;
   • TRAC accounting and costing principles and conventions are met – see Part II;
   • costs are attributed directly to activities where reasonable to do so;
   • the salary costs of Research Assistants and Research Fellows are attributed wholly and directly to Research;
   • a robust method of time allocation is in place and used for reporting activity carried out by academics:
     • time allocation schedules are used;
     • that cover periods that are representative of 12 months within a three-year cycle;
     • individual academics complete the schedules (and response rates, and methods of correcting mistakes, and of completing data-sets for non-respondents and leavers, are appropriate to ensure ‘fair and reasonable’ results);
     • where in-year schedules are completed, there are at least three of these completed over the year (i.e. each is less than six months in length);
     • data is collected over a three-year cycle;
   • when sampling time periods or academic staff (whether deliberately or through a response rate of less than 100%):
     • they are representative of types of staff, of each clinical, laboratory and non-laboratory group of departments, of each research sponsor type, and of the weeks or periods in the year;
     • acceptable levels of statistical accuracy are achieved;
     • the sample size is robust at a lower level (e.g. by academic department, or by type of staff) if institutions are calculating indirect cost or estates rates at these lower levels;
   • the time recorded on the time allocation schedules reflects the total time being worked on institution activities, irrespective of any ‘standard’ or ‘contracted’ working week;
   • clinical services time is firstly allocated to O(CS) and subsequently attributed to T, R, O, S, on the basis of services received from the NHS:
     • this is informed by either an analytical review (e.g. a discussion with each head of department; or specific study) or by a knowledge of what was actually being received;
     • work towards developing a better understanding of the NHS/HEI knock-for-knock arrangements is taking place;
   • the time/costs of training and supervising PGR students is separately identified, and attributed to PFR (PGR);
   • the method of attributing costs to research sponsor type is reviewed to ensure it is fair and reasonable;
   • there are clear policies, and communication of these policies, for:
     • confidentiality/anonymity of time data;
     • the use of the time data;
   • a cost driver model is used for cost attribution, with a minimum of four to six cost drivers;
   • the systems and models contain audit trails, allowing data to be traced;
   • the indirect costs attributed to PGR students reflect a 0.2 weighting per FTE compared to a 1.0 weighting for an academic or research staff FTE;
   • cost drivers for library/learning resources are robust;
   • cost drivers for estates/space are robust:
     • square metres are attributed to academic departments and to activity on the basis of usage (by each department, and for each activity);
     • when attributed to activities, differential costs are applied to the square metres, recognising the different costs of at least four types of space;
     • the space costs attributed to PGR students reflect 0.8 and 0.5 weightings per FTE, in laboratory and non-laboratory departments respectively, as compared to a 1.0 weighting for the FTE of an academic or research staff FTE;
   • other cost drivers are based on robust data;
   • information is gathered to inform a future study of PGR weightings;
   • tests are carried out to confirm that the figures produced are ‘fair and reasonable’;
   • the TRAC reported figures (without the cost adjustments) are those in the audited consolidated financial statements;
   • an infrastructure cost adjustment and a cost of capital employed are calculated and included in reported cost figures;
   • but no other adjustments are made to the costs in the financial statements when TRAC costs are reported;
   • the annual TRAC return is made in the required format, and signed by the head of institution;
   • quality assurance requirements have been met - see Part II ;
   • data is provided to allow the calculation of indirect cost rates, estates charges, and other charge-out rates:
     • for Teaching, Research and Other;
     • at the level of clinical, laboratory and non-laboratory, as appropriate;
     • that will meet the requirements for the calculation of charge-out rates for Research – given in Part IV.
2. These minimum requirements have been developed from the costing standards 1 to 6, and 9.
3. The Funding Councils require annual TRAC costs to be reported each year – see Annex 1 for a link to the report format.
4. The Funding Councils also require income to be reported alongside the annual TRAC cost figures – see Annex 16.
   

End of Section