Frequently Asked Questions
If you have any queries that are not answered in the FAQ please contact tracteam@exeter.ac.uk. You may also find the following documents useful:
What is FEC?
Full Economic Costing is a method of costing projects and activities that takes into account all direct and indirect costs, including an element for sustaining the institution over the long term.
What is TRAC?
The Transparent Approach to Costing introduced the financial systems required to support the costing of Teaching, Research and Other activities at the level of the whole institution. The exercise is based on historic data.
TRAC and fEC are both “Costing”. What is the difference?
The differences involve timing, purpose and level of detail.
Why do we need TRAC and FEC?
To become sustainable. The HE sector is becoming more “commercial” in its relationships with its stakeholders and has had to adopt “fuller” internal systems in response.
What is sustainability?
Being able to keep going in the long run. Obviously, knowing the cost of a project is not going to make an institution sustainable. That requires (successful) strategic thinking. But strategic thinking and decision-making depend on good information, and TRAC and fEC are designed to provide part of that information.
Who has to use TRAC and FEC?
- FEC – everyone planning a new project;
- TRAC – senior Management, and the annual HESA Return.
What is the process of “Costing”?
Calculate the FEC cost using the new Project Costing Form (PCF); and then calculate the price.
When did it start?
FEC based costing of projects has been mandatory from 1st August 2005 (New financial year). TRAC “started” in 1999.
What is the Project Costing Form (PCF)?
The PCF superseded other forms. The form is now generated electronically by fEC Project Costing Software.
Things keep changing. Why?
The introduction of FEC is forcing the involvement of stakeholders in the HE sector. Some are better prepared than others. The Research Councils have embraced fEC and are amongst the best prepared, yet they delayed finalising the design of their application form until June 2005.
Does FEC apply to Teaching?
Not yet. The use of fEC in Teaching is no mere rumour and is certain to come. This is likely to require further changes to TRAC/FEC methodology.
Will all academics have to complete timesheets?
No. There will be no more time recording than at present.
