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Full CostingUniversity of Vienna
Content
• Introduction• Aims of Full Costing • Implementation of Full Costing• Full costing model• Conclusion and Challenges
Key figures of the University of Vienna
• Organisation
– University of Vienna
– 18 Faculties • Turnover 450 million euros
– 54 million euros research revenues
– 7 million euros research revenues from EU projects• 8.600 employees• 84.000 students• 180 studies
Aims of Full Costing
• Statutory obligation to establish a full costing system (§ 16 Abs 1 UG 2002)
• Ensure sustainable funding by identifying the full costs of teaching and research activities (toll for strategic management decisions)
• Pressure from national and international funding organizations for transition to full cost accounting (e.g. FP 7)
• Discussion about separate funding of teaching and research by the Austrian Government (part of the Government Program in Austria)
Implementation of Full Costing
• Project started in 2006• Resources & Know-how: 1 FTE, external consultants• Perfect Integration in the accounting system of the
University of Vienna (SAP R/3) as part of the analytical accounting
• Implementation in 2007• Continuous improvement, especially in research
Implementation of Full Costing
• Transparent allocations of costs based on simple principles
• Allocation of as many costs as possible directly to activities, e.g. direct research costs
• Central costs (e.g. Housing, IT) are driven to departments and then to activity (Teaching, Research, Others) mainly on basis of square metres
• Cost objects are studies and identifiable research projects (e.g. externally funded projects)
• Working hours are both in teaching and in research the key cost drivers
Implementation of Full Costing
• Basis for allocation is the working capacity of academic staff
Total capacity in hours- Working hours Teaching- Working hours Research Projects
Working hours Other (Research) Activities• Problem: no time sheets• Indirect determination of working hours– Weighting of contact hours in teaching (preparation of
course)– Hours for Research Projects are identified by different
criteria, e.g. funding of project, leader of project• Personnel costs are calculated at entity level (faculty) and category of persons (e.g. professor, assistant, lecturer)
Implementation of Full Costing – Model I
•S
erv
ice
Dep
ar
tmen
ts
• Library • University Management
• - Rectorate-• - Employee
Organization• ….
• Human Resources
• International Relations
• Students Information and Admission
• Public Relations
• Finance and Accounting
• Faculties • Other Service Departments
•Units
• Study Coordinator-
Support
• Others
• Housing • Buildings
• IT
•In
frastru
ctu
re
• Departements
•Sub-
•uni
ts
• Research Platforms
• Educational Competence
Centers
Implementation of Full Costing – Model II
• Departements
•S
ub
un
its
• Research Platforms
• Educational Competence Centers
• Study
Coord. 1
• Study
Coord. 2
•C
os
t O
bj
ect
s
• Study
Coord. 3
• Study
Coord. 4
• Study
Coord. 5
• other• Study
Coord.
• Studies 1
• Studies 2
•C
os
t O
bj
ect
s
• Studies 3
• Studies 4
• Studies 5
• Studies
• SKGs
• Teaching • External funded
research
•C
os
t O
bj
ect
s
• Research • Others
Conclusion and Challenges - Teaching
• Full costs of teaching are well identified
• The outcome are actual costs per student (great range
between humanities and natural sciences)
• Use for standard costing calculations of studies
Conclusion and Challenges – Research
• Full costing methodology is focused on the control and
decision needs of the management of the University of
Vienna
• Separatly adjustments necessary, to fulfil the EC cost
reporting requirments (elimination of ineligible costs from
indirect costs -> indirect taxes, duties, exchange rate
losses, interest payable, provision)
• University of Vienna uses flat rate of 60 % in FP7
• Ongoing preparation for declaring actual indirect costs
(Simplified Method) in the next FP
• Main problem: no time sheets
Thank you for your attention!
• Contact details
Dr. Manuela Raith
Vice Head of Accounting and Finance
Dr.-Karl-Lueger-Ring 1
1010 Vienna
Tel.: +43 1 4277 12503
Email.: [email protected]
