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)

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?

1801701601501401301201101009080

2006 2007 2008 2009 2010

Melbourne Sydney UQ UNSW Monash

Blo

ck G

rant

s In

com

e ($

M)

Why is research income so important to the University?

• Research income is one of the inputs used by the Commonwealth Government to calculate the allocations of research block grants (RBG) to universities.

• Melbourne is the major recipient of block grants across the university sector.

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 Re-search 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) FormulaeIn 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)

10 40 - 50

CTS – Commercialisation Training Scheme (est)

10 40 - 50

JRE – Joint Research Engagement 10 60 (All except

Cat 1)

30 -

IPRS – International Postgraduate Research Scholarship (est)

10 40 - 50

RIBG – Research Infrastructure Block Grant

100 (Cat 1 only)

- -

SRE – Sustainable Research Excellence

100 (Cat 1 only)

- -

RTS – Research Training Scheme 168.9 40 - 50

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

4. JRE 2010 $321.1M

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

Other Universities JRE Pool basedon Res Income: $168.9M 88%

1. JRE 2010: $321.1M

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

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

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

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

OtherUniversities$1,358.0M 88%

Melbourne$191.5M 12%

Res Inc PoolMelb: $23.8M(12% of$192.7M)

Res Pub Pool:All Universities: $32.1M

RHD Load PoolAll Universities: $96.3M

Res Inc PoolOther Universities:$168.9M

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

4. JRE 2010 $321.1M

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

Other Universities JRE Pool basedon Res Income: $168.9M 88%

1. JRE 2010: $321.1M

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

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

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

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

OtherUniversities$1,358.0M 88%

Melbourne$191.5M 12%

Res Inc PoolMelb: $23.8M(12% of$192.7M)

Res Pub Pool:All Universities: $32.1M

RHD Load PoolAll Universities: $96.3M

Res Inc PoolOther Universities:$168.9M

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

4. JRE 2010 $321.1M

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

Other Universities JRE Pool basedon Res Income: $168.9M 88%

1. JRE 2010: $321.1M

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

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

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

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

OtherUniversities$1,358.0M 88%

Melbourne$191.5M 12%

Res Inc PoolMelb: $23.8M(12% of$192.7M)

Res Pub Pool:All Universities: $32.1M

RHD Load PoolAll Universities: $96.3M

Res Inc PoolOther Universities:$168.9M

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

4. JRE 2010 $321.1M

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

Other Universities JRE Pool basedon Res Income: $168.9M 88%

1. JRE 2010: $321.1M

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

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

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

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

OtherUniversities$1,358.0M 88%

Melbourne$191.5M 12%

Res Inc PoolMelb: $23.8M(12% of$192.7M)

Res Pub Pool:All Universities: $32.1M

RHD Load PoolAll Universities: $96.3M

Res Inc PoolOther Universities:$168.9M

Example: JRE calculations for the $321M allocated in 2010

30% RHD Load, 10% Research Publications and 60% Research Income

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)Melbourne Avg Non Cat 1 Research Income ($191.5M)

= $23.8M$191.5M

=12.4¢/$

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?• Sponsor must apply to DIISR (not UM)

• 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