Research Income Essentials by Moksha Web

Research Income Essentials

Research Income Essentials • Designed to provide “must know” information on research income • Relevant to anyone involved in research or the generation, receipting or coding of research income:

- Researchers - Deans - Associate Deans (Research) - Heads of Department - Centre and Institute Directors - Faculty General Managers - Faculty Research Managers - Department Managers - Research income coordinators - Financial data entry staff - Advancement staff

1. Research Income Essentials In this presentation, we will provide information on: • What is and isn’t research? • What is research income? • Why is it so important to the University? Research Block Grants • What do you need to know? HERDC Research Income collection • What are the problems & how you can help?

What is Research? DIISR uses OECD Definition:

Creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications

It comprises: • Any activity classified as research which is characterised by originality: - should have investigation as a primary objective and - should have the potential to produce results that are sufficiently general for humanity’s stock of knowledge (theoretical and/or practical) to be recognisably increased. - Most higher education research work would qualify as research. • Pure basic research; • Strategic basic research; • Applied research; and • Experimental development

What is Research Support? Activities that support research and meet this definition of research include: • provision of professional, technical, administrative or clerical support and/or assistance to staff directly engaged in research • management of staff who are either directly engaged in research or are providing professional, technical or clerical support or assistance to those staff • activities of students undertaking postgraduate research courses • development of postgraduate research courses • supervision of students undertaking postgraduate research courses.

What is NOT Research? • preparation for teaching • scientific and technical information services • general purpose or routine data collection • standardisation and routine testing • feasibility studies (except into research and experimental development projects) • specialised routine medical care • commercial, legal and administrative aspects of patenting, copyright or licensing activities • routine computer programming, systems work or software maintenance (however research and experimental development into applications software, new programming languages and new operating systems would normally meet the definition of research)

Research Income Essentials Presentation • What is and isn’t research? • What is and isn’t research? • What is research income? • Why is it so important to the University? Research Block Grants • What do you need to know? • What are the problems & how you can help?

What is Research Income? Research income is any income received to undertake or support research activities: • Research grants (including infrastructure grants) • Research contracts & consultancies that meet the definition of research • Clinical trials meeting the definition of research • Travel grants to access a program of research • Bequests & donations for research • Research higher degree scholarships • Income received to support research (eg. development of a postgraduate research course, administrative staff engaged in research, etc)

Why is research income so important to the University? â&#x20AC;˘ Research income is one of the inputs used by the Commonwealth Government to calculate the allocations of research block grants (RBG) to universities.

Block Grants Income ($M)

â&#x20AC;˘ Melbourne is the major recipient of block grants across the university sector.

180 170 160 150 140 130 120 110 100 90 80 2006 Melbourne

2007 Sydney

2008 UQ

2009 UNSW

2010 Monash

What are Research Block Grants (RBG) ? As at 2010, there are seven block grants schemes: Scheme

2010 Funding for UM ($M)

APA – Australian Postgraduate Award

18.2

CTS – Commercialisation Training Scheme

0.6

JRE – Joint Research Engagement (replaced IGS (Institution Grant Scheme) in 2010 )

37.2

IPRS – International Postgraduate Research Scholarship (new in 2009)

2.3

BG – Research Infrastructure Block Grant

30.3

SRE – Sustainable Research Excellence (New in 2010)

10.6

RTS – Research Training Scheme

69.7

Total

168.9

New Schemes In 2010 and Beyond Additional block grant schemes have being introduced progressively in 2010: • SRE – Sustainable Research Excellence: to supplement RIBG to meet the indirect costs of competitive grant research • JRE – Joint Research Engagement: has involved a revision of the IGS formula by: • eliminating competitive grant income; and • encouraging greater collaboration between universities and the business and non-government research sectors (???)

How is the value of block grants determined? • Block grant funding calculations are based on data derived from: - HERDC research income collection - HERDC research publications collection - Research student collection • Each block grant has its own formula

Research Block Grants (RBG) Formulae In 2010, 63% of the total funding received from RBG was based on research income Scheme

RBG Pool Allocation (Weighting) (%) Research Publications

Research Income

RHD Load

RHD

APA – Australian Postgraduate Award (est)

CTS – Commercialisation Training Scheme (est)

JRE – Joint Research Engagement

60 (All except Cat 1)

IPRS – International Postgraduate Research Scholarship (est)

RIBG – Research Infrastructure Block Grant

100 (Cat 1 only)

SRE – Sustainable Research Excellence

100 (Cat 1 only)

RTS – Research Training Scheme

168.9

2. Avg Non C1 Research Income for 07-08: $1,549.5M 1. JRE 2010: $321.1M

RES Pub Pool: 10% of $321M: $32.1M

RHD LoadPool: 30% of$321.1M: $96.3M

1. JRE 2010: $321.1M

Example: JRE calculations for the $321M allocated in 2010 Melbourne RES Pub12% Pool: $191.5M 10% of $321M: $32.1M OtherUniversities $1,358.0M 88%

30% RHD Load, 10% Research Publications and 60% RHD LoadPool: Research Income 30% of$321.1M: $96.3M

Res Inc Pool: 60% of $321.1M: $192.7M

1. $321.1M 2.JRE Avg 2010: Non C1 Research Income for 07-08: $1,549.5M RES Pub Pool: 10% of $321M: $32.1M

RHD LoadPool: Melbourne 30% of$321.1M: $96.3M $191.5M 12% Res Inc Pool: 60% of OtherUniversities $321.1M: $1,358.0M$192.7M 88%

Res Inc Pool: 60% of $321.1M: $192.7M

3. JRE 2010 - $192.7M Research Income pool Allocation 2. Avg Non C1 Research Income for 07-08: $1,549.5M Melb JRE Pool based on Res Income:$23.8M (12% of $192.7M)

Other Universities JRE Pool based on Res Income: Melbourne $168.9M $191.5M88% 12% OtherUniversities $1,358.0M 88%

2. Avg Non C1 Research Income for 3. JRE $1,549.5M 2010 - $192.7M 07-08: Research Income pool Allocation

JRE2010 2010$321.1M - $192.7M 4.3.JRE Research Income Res Inc Pool poolUniversities: Allocation Other

Melb JRE Pool based on Res Melbourne Income:$23.8M $191.5M 12% (12% of $192.7M)

Res Inc Pool Melb$23.8M JRE Pool Melb: based (12% of on Res Income:$23.8M $192.7M) (12% of $192.7M)

OtherUniversities Other Universities $1,358.0M 88% JRE Pool based on Res Income: $168.9M 88%

Res Pub Pool: Other Universities All Universities: $32.1M JRE Pool based on Res Income: RHD Load Pool $168.9M 88% $96.3M All Universities:

$168.9M

3. JRE 2010 - $192.7M Research Income pool Allocation 4. JRE 2010 $321.1M

Cents per Dollars Calculations – JRE example • In 2010, JRE allocations to UM was $37.2M • Of this $37.2M, $23.8M was based on research Income (see previous slides) • The Average Non Cat 1 Research Income for UOM used for the JRE calculation (2007 & 2008) was $191.5M • ¢/$ Calculations for the University: Melbourne JRE Research Income Pool ($23.8M) = $23.8M =12.4¢/$ Melbourne Avg Non Cat 1 Research Income ($191.5M) $191.5M €

Where does the money go? • Over 90% of IGS, RTS and RIBG funds were allocated to faculties in 2008 ($122.1M out of $130.4M (93.7%) in 2008) • Faculty allocations are based on their share of the Student, Income and Publication collections • Each faculty has its own formula to distribute block grants funding to its departments

Collecting Research Income: HERDC Collection (Higher Education Research Data Collection)

• The HERDC is undertaken annually by all universities to collect research income and research publications data for the Commonwealth Government (DIISR). • These data are used by DIISR to calculate the allocation of Research Block Grants. • Melbourne Research coordinates the HERDC Publications Collection. • Melbourne Research and Finance & Planning coordinate the HERDC Research Income Collection.

Research Income Collection Income Categories • Category 1: Australian Competitive Grants (must be listed on the ACGR) • Category 2: Other Public Sector Research Income • Category 3: Industry and other Research Income • Category 4: CRC Research Income

How can a scheme be listed on the ACGR? â&#x20AC;˘ Sponsor must apply to DIISR (not UM) â&#x20AC;˘ Grant scheme must meet following conditions: 1. Must be provided on a nationally competitive basis 2. Must be nationally advertised and available to higher education providers 3. Must have a well-defined mechanism for competition and selection by a well qualified panel 4. Fund must be provided via direct transfers to higher education providers 5. Grants in-kind are not eligible (eg. use of facilities) 6. Scholarships are not eligible 7. Infrastructure funds are not eligible 8. Sponsor must be able to provide funding data to DIISR 9. Non-Commonwealth funds must be at least $200K/year