2. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 22
TRAC and fECTRAC and fEC
Why and What?Why and What?
3. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 33
PrinciplesPrinciples
Publicly funded research should bePublicly funded research should be
fully funded by public fundsfully funded by public funds
Universities should know their ownUniversities should know their own
costs, price forcosts, price for sustainabilitysustainability andand
plan for reinvestmentplan for reinvestment
Public money is for public good onlyPublic money is for public good only
4. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 44
TransparencyTransparency
TRAC - costing of teaching, research & allTRAC - costing of teaching, research & all
other activitiesother activities
In operation in HEIs for a few years atIn operation in HEIs for a few years at
School levelSchool level
Aims to identify the full economic costAims to identify the full economic cost
(fEC) of activities(fEC) of activities
From Sept ’05 funding from ResearchFrom Sept ’05 funding from Research
Councils based on fECCouncils based on fEC
Major ‘central’ costs – estates & ISMajor ‘central’ costs – estates & IS
5. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 55
What is fEC?What is fEC?
fEC is the full cost of undertaking anfEC is the full cost of undertaking an
activityactivity
fEC includes all direct costs and indirectfEC includes all direct costs and indirect
costs such as space, central servicescosts such as space, central services
and a contribution to the University’sand a contribution to the University’s
infrastructureinfrastructure
fEC is the same regardless of sponsorfEC is the same regardless of sponsor
Creates a distinction between cost andCreates a distinction between cost and
priceprice
Objective is to ensureObjective is to ensure sustainabilitysustainability
6. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 66
SustainabilitySustainability
““An institution is being managed on a sustainableAn institution is being managed on a sustainable
basis if, taking one year with another, it isbasis if, taking one year with another, it is
recovering its full economic costs across itsrecovering its full economic costs across its
activities as a whole, and is investing in itsactivities as a whole, and is investing in its
infrastructure (physical, human, and intellectual)infrastructure (physical, human, and intellectual)
at a rate adequate to maintain its future productiveat a rate adequate to maintain its future productive
capacity appropriate to the needs of its strategiccapacity appropriate to the needs of its strategic
plan and students, sponsors and other customerplan and students, sponsors and other customer
requirementsrequirements.”.” (TRAC Volume III, A1 para 51)(TRAC Volume III, A1 para 51)
Thus resources must be identified to meet the fullThus resources must be identified to meet the full
costs in the long run:costs in the long run:
– Direct, indirect, maintenance, cost of capital & investmentDirect, indirect, maintenance, cost of capital & investment
– Areas of cross subsidy and transparency for decision makingAreas of cross subsidy and transparency for decision making
7. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 77
Information ServicesInformation Services
The University of ReadingThe University of Reading
JCPSG good practiceJCPSG good practice
case studycase study
8. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 88
The projectThe project
Development of a methodology for theDevelopment of a methodology for the
treatment of Information Servicestreatment of Information Services
costs within the Transparency Reviewcosts within the Transparency Review
– Project leader –Project leader – Annette HaworthAnnette Haworth,,
Director of Information ServicesDirector of Information Services
– Project officer –Project officer – Roger JonesRoger Jones
9. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 99
Approach to the studyApproach to the study
Analysis of centrally provided IS resourcesAnalysis of centrally provided IS resources
to identify usage patternsto identify usage patterns
Total University IS resources and demandTotal University IS resources and demand
– include data from finance, facilities,– include data from finance, facilities,
HR and student servicesHR and student services
Develop allocation model(s)Develop allocation model(s)
Assess implications & lessons for ReadingAssess implications & lessons for Reading
10. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1010
Reading - BackgroundReading - Background
Study based on 2002/03 dataStudy based on 2002/03 data
SchoolsSchools - 23 in 4 Faculties- 23 in 4 Faculties
StudentsStudents - 11,400 FTE- 11,400 FTE
Academic Staff - 1,560 FTEAcademic Staff - 1,560 FTE (1,284 in Schools)(1,284 in Schools)
Three sites in Reading with two main campusesThree sites in Reading with two main campuses
Information Services (IS) at Reading include:Information Services (IS) at Reading include:
- IT Services (ITS)- IT Services (ITS)
- Library- Library
- Museums & Collections Services- Museums & Collections Services
IS - total cost £8.9MIS - total cost £8.9M (= 6.4% of total income)(= 6.4% of total income)
- 207 FTE- 207 FTE (all grades)(all grades)
11. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1111
IS usage patternIS usage pattern
School average usage per FTE studentSchool average usage per FTE student
ranges widelyranges widely ⇒⇒ considerable imbalanceconsiderable imbalance
Imbalance in availability and resourcesImbalance in availability and resources
partly due to:partly due to:
- School/department location- School/department location
- Student profile (self funding; FT v PT;- Student profile (self funding; FT v PT;
mix of UG, PGT, PGR)mix of UG, PGT, PGR)
- Predominately “9-5 culture”- Predominately “9-5 culture”
Enabled identification of some important ISEnabled identification of some important IS
issues facing the University and its Schoolsissues facing the University and its Schools
12. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1212
Relative use of servicesRelative use of services
by user typeby user type
ServiceService UGUG PGTPGT PGRPGR StaffStaff
Library:Library:
Library lendingLibrary lending 11 1.61.6 1.41.4 0.70.7
Use of e-sourcesUse of e-sources 11 2.22.2 8.08.0 5.65.6
ITS:ITS:
e-mails sent/receivede-mails sent/received 11 3.93.9 6.26.2 18.818.8
Web useWeb use 11 4.64.6 9.89.8 11.011.0
e-mail server storagee-mail server storage 11 2.12.1 5.95.9 8.68.6
Home directory storageHome directory storage 11 2.62.6 12.712.7 9.29.2
PC laboratory usagePC laboratory usage 11 1.71.7 1.11.1 0.20.2
13. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1313
Relative IS usage by SchoolRelative IS usage by School
14. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1414
Total University IS resourceTotal University IS resource
Need to understandNeed to understand totaltotal UniversityUniversity
resources devoted to IS, not only the ISDresources devoted to IS, not only the ISD
(Directorate) spend(Directorate) spend
Considerable (but highly variable)Considerable (but highly variable)
proportion of resourcing is from Schoolproportion of resourcing is from School
fundsfunds
Analysed ‘central’ data prior to meetingAnalysed ‘central’ data prior to meeting
with Schoolswith Schools
15. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1515
Development of costing modelsDevelopment of costing models
Models not directly tied to management structure:Models not directly tied to management structure:
- PC labs treated separately from other ITS costs- PC labs treated separately from other ITS costs
- E-source costs of library service modelled with- E-source costs of library service modelled with
general IT costsgeneral IT costs
- Library archives & special collections included- Library archives & special collections included
with museumswith museums
4 models – 1 for each group of services:4 models – 1 for each group of services:
- PC labs- PC labs
- General IT services (incl. e-sources)- General IT services (incl. e-sources)
- General library service (excl. e-sources)- General library service (excl. e-sources)
- Museums, archives & special collections- Museums, archives & special collections
16. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1616
The modelsThe models
Alternative models considered for each –Alternative models considered for each –
14 for library and 12 for ITS costs14 for library and 12 for ITS costs
Target – to match allocations to usageTarget – to match allocations to usage
Allocations based on staff & student FTEsAllocations based on staff & student FTEs
Adjusted for some elements of direct spendAdjusted for some elements of direct spend
by Schoolsby Schools
Constructed to enable cost of IS for staff,Constructed to enable cost of IS for staff,
taught and research students for eachtaught and research students for each
School to be identifiedSchool to be identified
17. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1717
ITS cost modelsITS cost models
Weightings for general ITS (incl. e-sources):Weightings for general ITS (incl. e-sources):
- UG = 1 - allocated to teaching- UG = 1 - allocated to teaching
- PGT = 3 - allocated to teaching- PGT = 3 - allocated to teaching
- PGR = 8 - allocated to research- PGR = 8 - allocated to research
- Academic staff = 11 - allocation to- Academic staff = 11 - allocation to
T, R & O based on time analysisT, R & O based on time analysis
andand Schools weighted by HEFCE multipleSchools weighted by HEFCE multiple
Weighting for PC labs:Weighting for PC labs:
- UG = 1 - allocated to teaching- UG = 1 - allocated to teaching
- PGT = 1.5 - allocated to teaching- PGT = 1.5 - allocated to teaching
- PGR = 1 - allocated to research- PGR = 1 - allocated to research
18. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1818
Library cost modelLibrary cost model
Actual Library allotment to Schools for booksActual Library allotment to Schools for books
(T) and journals (R) allocated direct to(T) and journals (R) allocated direct to
SchoolsSchools
Weightings for library (excl e-sources):Weightings for library (excl e-sources):
- UG = 1 - allocated to teaching- UG = 1 - allocated to teaching
- PGT = 1.5 - allocated to teaching- PGT = 1.5 - allocated to teaching
- PGR = 1.5 - allocated to research- PGR = 1.5 - allocated to research
- Academic staff = 0.7 - allocation to- Academic staff = 0.7 - allocation to
T, R & O based on time analysisT, R & O based on time analysis
Low staff weighting reflects decliningLow staff weighting reflects declining
use of physical resource, increasinguse of physical resource, increasing
use of e-sourcesuse of e-sources
19. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 1919
Allocation of museums, archivesAllocation of museums, archives
& special collections costs& special collections costs
About 10 per cent of usage is byAbout 10 per cent of usage is by
members of the Universitymembers of the University
Analysis of usage data, combined withAnalysis of usage data, combined with
managers knowledge, used to allocatemanagers knowledge, used to allocate
costs to Schools and apportion betweencosts to Schools and apportion between
Teaching and ResearchTeaching and Research
90 per cent of costs allocated to “Other”90 per cent of costs allocated to “Other”
20. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2020
Matching usage to cost allocationsMatching usage to cost allocations
21. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2121
Impact of new modelImpact of new model
Change in allocation to FacultiesChange in allocation to Faculties
TeachingTeaching ResearchResearch
Arts & HumanitiesArts & Humanities -20%-20% +15%+15%
Economic & Social SciencesEconomic & Social Sciences -6%-6% -3%-3%
Life SciencesLife Sciences -6%-6% +17%+17%
ScienceScience -5%-5% +38%+38%
TOTALTOTAL -10%-10% +20%+20%
Varies from School to School within FacultiesVaries from School to School within Faculties
Comparison of existing & new modelsComparison of existing & new models
ExistingExisting NewNew
TeachingTeaching 64%64% 58%58%
ResearchResearch 25%25% 30%30%
OtherOther 11%11% 12%12%
22. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2222
Benefits of the studyBenefits of the study
Analysis identified total resource devoted toAnalysis identified total resource devoted to
provision of IS in the Universityprovision of IS in the University
– c£12m+ v. £8.9m for transparency– c£12m+ v. £8.9m for transparency
Has influenced allocation of resources inHas influenced allocation of resources in
2004/05 budget exercise2004/05 budget exercise
Identified issues to be addressed inIdentified issues to be addressed in
developing IS in the Universitydeveloping IS in the University
– Also compared performance with other HEIsAlso compared performance with other HEIs
through use of SCONUL and UCISA surveythrough use of SCONUL and UCISA survey
datadata
Derived detailed IS costs per FTE by SchoolDerived detailed IS costs per FTE by School
– can be used for costing research projects– can be used for costing research projects
23. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2323
Average FTE costs by user typeAverage FTE costs by user type
0
100
200
300
400
Taught Students Research Students Staff (T portion) Staff (R portion)
24. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2424
FTE research cost index by SchoolFTE research cost index by School
ArtsandCommunicationDesign
ContinuingEducation
EnglishandAmericanLiterature
History
Humanities
LinguisticsandAppliedLanguageStudies
ModernLanguages
BusinessSchool
Instituteof Education
HealthandSocial Care
Law
Sociology, Politics&International Relations
Agriculture, PolicyandDevelopment
Animal andMicrobial Sciences
AppliedStatistics
FoodBiosciences
Plant Sciences
Psychology
Chemistry
ConstructionManagement &Engineering
HumanandEnvironmental Sciences
Mathematics, MeteorologyandPhysics
SystemsEngineering
Staff
PGRStudents
25. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2525
The FutureThe Future
Project helped to give a better understandingProject helped to give a better understanding
of IS provision and use in the Universityof IS provision and use in the University
Future planning being aided by projectFuture planning being aided by project
findingsfindings
Input into 3 year planning and budget cycleInput into 3 year planning and budget cycle
Will need to re-validate the weightings atWill need to re-validate the weightings at
intervalsintervals
Systems needed to improve collection ofSystems needed to improve collection of
usage datausage data
26. UMSLG Summer Residential Meeting - July 2005UMSLG Summer Residential Meeting - July 2005 2626
Further InformationFurther Information
See JCPSG web site section on Costing &See JCPSG web site section on Costing &
Pricing – Good Practice for downloads of thePricing – Good Practice for downloads of the
Reading case study & a consolidated report:Reading case study & a consolidated report:
http://www.jcpsg.ac.uk/costingpricing/practice/index.http://www.jcpsg.ac.uk/costingpricing/practice/index.htmhtm
Core slides from this presentation are at:Core slides from this presentation are at:
http://www.rdg.ac.uk/foia/downloads.htmhttp://www.rdg.ac.uk/foia/downloads.htm
Further detail of this project can be obtainedFurther detail of this project can be obtained
by contacting:by contacting:
– Information Management and Policy Services,Information Management and Policy Services,
Reading University atReading University at imps@reading.ac.ukimps@reading.ac.uk
OROR
– Roger Jones atRoger Jones at roger.jones@imper.co.ukroger.jones@imper.co.uk
