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Date sent: Tue, 25 Nov 2003 17:11:43 -0000 Send reply to: "Academic, financial or space planning in UK universities" <[log in to unmask]> From: "Mair, Ilona" <[log in to unmask]> Subject: Resource Allocation Models: Treatment of overheads To: [log in to unmask] Research Grant Overheads At Oxford we include research grant and contract income including ALL overheads in what we term 'directly allocated income'. This means that all the research grant and contract income including 100% overheads is passed directly to the earning units (in the first instance the academic divisions and service units, although the divisions may chose to do something different in their allocations to departments). This is intended to act as a clear incentive to units to maximise overhead recovery rates. Service Unit Budgets The approach to setting and providing for service unit budgets involves several steps. The first is to agree the level of the budget for each activity. This is founded on an activity-based analysis, looking carefully at the costs that need to be incurred in order to deliver a particular level of service. The budgets are scrutinised by a working group. Once service budgets have been settled, the next step is to take account of the direct allocations of resources made to services. In the case of a number of services, these directly attributable or directly earned allocations comprise a significant proportion of the relevant budget. A contribution to services budgets is also taken from a top-slice on the total University income. The final step is to calculate the proportion of the agreed service budgets which cannot be met by direct allocations or the top slice, and then to provide funds for these through an infrastructure charge levied on total divisional income. This formulaic charge is based on a number of factors which are designed, in very broad terms, to represent proxies of usage of particular services. The principal drivers being used currently are student load, staff load, and area occupied or maintained. IA more detailed description of the Oxford RAM can be accessed from http://www.admin.ox.ac.uk/pra/rgw.shtml. Veronica Wood > At QMUC, we are currently reviewing our resource allocation model and > together with wanting to introduce drivers which better incentivise and > promote growth, we want to review how overheads are treated and specifically > how to allocate resources to and across support areas (currently they are > allocated a proportion based on historical cost totally approx. 40% of total > income). > > Any comments on how successfully other institutions have handled this would > be appreciated. > With thanks. > > Ilona Mair > Head > Strategic Planning & Policy Unit > Queen Margaret University College > Ph: 0131 317 3290 > email: [log in to unmask]