Towards implementing a full-cost model of accounting at the University of Vienna Alexander Hammer Head of Accounting and Finance

Legal Background Universities are legal entities in public law since 2004 Large autonomy for universitites Performance agreements (contracts in public law) between universitites and Federal Government Funding of universities by Federal Government: allocation of a global budget for a three-year period Formula-based budget (based on performance indicators such as graduates, third-party funding etc.: 20% of global budget Yearly performance reports: submission with annual financial statements and based on performance agreements

Universities are legal entities in public law since 2004

Large autonomy for universitites

Performance agreements (contracts in public law) between universitites and Federal Government

Funding of universities by Federal Government: allocation of a global budget for a three-year period

Formula-based budget (based on performance indicators such as graduates, third-party funding etc.: 20% of global budget

Yearly performance reports: submission with annual financial statements and based on performance agreements

Financial Management (Universities Act 2002) Universities manage their financial affairs in their own name and for their own account Federal government not liable for universities ’ debts Large autonomy in financial matters Accounting system according to Commercial Code (change in accounting principles: switch from government cash accounting to commercial accounting)

Universities manage their financial affairs in their own name and for their own account

Federal government not liable for universities ’ debts

Large autonomy in financial matters

Accounting system according to Commercial Code (change in accounting principles: switch from government cash accounting to commercial accounting)

Upcoming Issues for Universities Separation of teaching and research budgets? Allocation of teaching budget based on number of students (per capita funding)? Allocation of research budget based on performance indicators? Introduction of full-cost models in research projects (EU grants etc.)

Separation of teaching and research budgets?

Allocation of teaching budget based on number of students (per capita funding)?

Allocation of research budget based on performance indicators?

Introduction of full-cost models in research projects (EU grants etc.)

Full-cost accounting at the University of Vienna Perfect integration with accounting system and existing cost centers Definition of model in order to allocate overhead costs (personnel costs, rental costs, general and administrative costs etc.) Definition of model (based on working time) in order to separate teaching and research costs Certification of full-cost model by European Union planned in 2009

Perfect integration with accounting system and existing cost centers

Definition of model in order to allocate overhead costs (personnel costs, rental costs, general and administrative costs etc.)

Definition of model (based on working time) in order to separate teaching and research costs

Certification of full-cost model by European Union planned in 2009