A National Swedish Full-Cost Model

A National Swedish Full-Cost Model

- Implementation at Stockholm

University

Outline

• Background

• The model

• Stockholm University– Organisation and some facts– Changes– Problems / challenges

2008-11-19 /Anna Stolarska, Stockholm University

Background

• Expansion of the universities– Increased overhead costs

• Government Research and Innovation Bill, 2000– Complete funding of indirect costs

• Study made by SUHF (The Association of Swedish Higher

Education) 2002– Agreement on 35 % add-on on total direct costs

• SUHF 2007 – An accounting model for indirect costs

• Government Research and Innovation Bill, 2008 – Total funding for real indirect costs


The Model

• Core activities (teaching and research) are divided into “cost-bearers”

• All revenues and costs are attributed a cost-bearer

• All costs are direct or indirect

• Indirect costs are divided between cost-bearers in proportion to direct salaries


Stockholm University- Organisation and some facts


Turnover: a total of SEK 2.9 billion- Undergraduate education: 39%- Research and doctoral programme: 61%Revenues divided among: - Government grants (public funding): 68%- External funding: 22%- Fees and other remunerations: 10%Costs divided among:- Employees: 65%- Premises: 17%- Other costs: 18%

Revenues


Teaching Research

Government grant

External funds

Contract education

Government grant

External funds

Contract research

Costs


Shared costs

Teaching Research

Indirect costs for research at the Department of Ants• Part of the shared University costs 100

• Part of the shared Faculty costs 5

• Own indirect costs 145

Sum 250

• Direct salary 625

2008-11-19 /Anna Stolarska, Stockholm University40 %

Cost-bearers

• All cost-bearers must have a direct salary

• Revenues from both G-grant and E-fund, but NOT both from teaching and research

• Different Departments

• Different Faculties



Cost-bearers at Department of Ants

Ant 1

Ant 2

Bug 1

G-grant financed professor

2 G-grant financed postgraduate students

3 E-fund financed researchers

Contract research

Linneaus grant, 5 researchers

Co-financing, G-grant financed professor from Department of Pest Control

E-fund financed data-bas

Research project with external funding - an example• Contract allows OH-cost as a 35 % add-on on

total direct costs

• Actual OH-cost is a 40 % add-on on salary


Department of Ants

G-grant financed research

E-funded research project

G-grant financed research

cost-bearer

E-funded research

cost-bearer

G-Grant 1 000 995 5

E-Funding 135 135

Revenue for indirect costs

35

Sum 1 350 135 995 140

Direct costs 600 100 600 100

Indirect costs 435 395 40

OH 35

Sum 1 035 135 995 140



Full cost calculation for Stockholm University

Your department's OH rate in % 27%

Rate for office costs in % 13%

Full cost calculation according to the SUHF model

Total direct salary costs, incl. employers fee and social security 100

- of which applied for in the present proposal 100

- from other sponsor or co-financing from the University 0

Total direct running costs

- of which applied for in the present proposal


Total direct equipment costs

- of which applied for in the present proposal


Total direct premises costs 13


- from other sponsor or co-financing from the University -4

Sum of all direct costs 113


- from other sponsor or co-financing from the University -4

Total indirect costs 27

- indirect costs in present proposal according to full cost model 27


- amount applied for to cover indirect costs in present proposal 18

- indirect costs to be paid by other sponsor or by the University 9

Sum of total costs 140



Changes

• New object in the accounting model

• Cost moved from the Faculty to the University level

• All shared administration has been divided into teaching and research

• OH-costs are divided into two invoices

• Full-cost calculation in all fund applications


Challenges

• Change our accounting and personnel systems

• Secure different interests as concerns accounting– Auditors– Fund donors– Researchers– Head of Department

• Costs for premises

• Find an understanding among the core staff!


Documents

A National Swedish Full-Cost Model