Part IV - Charge-out rates

Section B: Minimum requirements

1. The minimum requirements are that:

• indirect costs for Research are calculated from data derived from the annual TRAC process. They are attributed to projects using an institutional £/FTE rate, where FTEs are academics, research staff, and PGRs. Only the Research time of academics is included, but all of the time of research staff is included. Academics and research staff are weighted at 1.0; PGRs are weighted at 0.2   When the indirect cost rate is used to calculate the costs of a PGR student, it is weighted at 0.2;
• estates costs for Research are calculated from data derived from the annual TRAC process. They are directly allocated to projects on a £/FTE basis, or a basis that is at least as robust;
• a minimum of two estates charge-out rates for Research are calculated – laboratory and non-laboratory departments;
• FTEs are robustly calculated (no later than 1 August 2007 for use in 2006/07 cost rates to be applied for the 12 months from 1 February 2008). In particular, they are based on an average of at least two samples a year; and any significant impact arising from off-campus etc work, is identified;
• FTEs include RAs and PGR students;
• the costs of laboratory technicians are directly allocated to research projects no later than 1 August 2007 (for use in the 2006/07 cost rates to be applied for the 12 months from 1 February (2008);
• the costs of major research facilities are directly allocated to research projects no later than August 2007 (for use in the 2006/07 cost rates to be applied for the 12 months from 1 February 2008). Charge-out rates for these and other items of equipment are based on replacement costs plus running costs;
• costs of facilities/equipment are initially included in estates costs. Costs used to calculate charge-out rates are then deducted from estates costs. That way, any double-charging of equipment costs is avoided;
• non-compliant default indirect cost rate and estates charges for Research are applied to research projects until full robustness is achieved, i.e. the minimum TRAC requirements have been met. Institutions with dispensation can apply a dispensation default indirect cost rate and estates charges;
• the costs used to establish the indirect cost rate, estates charges and the charge-out rates for major research facilities, equipment and laboratory technicians, are reconciled to the financial statements plus the two TRAC cost adjustments;
• rates are recalculated with effect from 1 February of each year.
  
  Institutions who are unable to calculate updated rates on 1 February of a year can continue to use their previous year’s rates (without further indexing). When their new rates are available these would be applied to research projects until the following 31 January. The fEC-based price calculated on projects that are already under review by sponsors will not, however, be changed, and therefore it is not a requirement to re-cost these projects with the latest rates.
  

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