Managing Budgets on RCUK Projects
Following a successful application, the budget figures in an RCUK offer letter will reflect the figures applied for, plus indexation. (less Wakeham reduction for Indirect Costs)
The set up on CUFS is as follows:
100% of the Directly Incurred (DI) budgets are provided, usually in Task 1
100% of the Directly Allocated (DA) budgets are provided, in Task 100
The funding shortfall of 20% is added as a negative 'University Funded' budget in Task 100, offsetting the DA costs that are split Chest : Department in the ratio set out in the Income Allocation Policy.
If the total DA budget cannot meet the 20% funding shortfall, then any loss is to be met by the Department.
The Task 100 budget cannot be charged against; expenditure is charged automatically at month end, pro rata based on project duration.
The intention for the DI budget is that funds should broadly be used in the manner in which they were applied for, though flexibility is allowed:
Transfers of Funds between Fund Headings (Virement)
It is permitted to transfer funds between budget headings, within and between Directly Incurred costs and Exceptions.
This excludes any budget held for Equipment; transfers into or out of this heading - from both DI costs or from exceptions - is not permissible.
Funds can only be transferred and used to meet the cost of activity or activities that meet the agreed aims and objectives of the project.
Award holders do not to seek formal approval for a transfer of funds between eligible headings, though it should be noted that the Research Councils reserve the right to query any expenditure declared in the Final Expenditure Statement at the conclusion of the project.
Changes to 'Staff Costs'
It is the responsibility of the Research Organisation to manage the resources on the grant, including the staff, and the Research Council need not be consulted if staffing levels on the grant are changed.
However, a proportionate reduction should be made in the value of Estates, Indirect Costs and Infrastructure Technicians (where applicable) claimed by the Research Organisation in the following circumstances:
1. a post that attracts these costs is not filled.
2. a staff member who attracts these costs leaves more than six months before the end of the period for which the post was funded and is either not replaced, or is replaced by a category of staff that does not attract the costs e.g. project student or technician.
Whilst flexibility is given in utilising project funds, the following points should be noted:
1. Under no circumstances may Directly Incurred and Exceptions funds be used to meet costs on any other grant or activity.
2. Directly Incurred and Exceptions funds cannot be used to meet the costs of an activity that will take place beyond the end date of the award, even where the cost of that activity is charged prior to the end date.
3. Equipment purchased in the final six months of an award is ineligible, unless prior written approval from the Research Council is obtained.