JCPSG | TRAC Guidance

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 document linkAnnex 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 document linkAnnex 16.