- Finance Explained
- About us
- Financial operations
- Procurement Services
- Financial regulations and policies
- Capital planning and project authorisation
- Financial planning, management and reporting
- Financial Statements
- Student Finance
- Finance training
- Future Finance
- Professional Services
Frequently Asked Questions
If you have any queries that are not answered in the FAQ please contact firstname.lastname@example.org. You may also find the following documents useful:
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.
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.
The differences involve timing, purpose and level of detail.
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.
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.
- FEC – everyone planning a new project;
- TRAC – senior Management, and the annual HESA Return.
Calculate the FEC cost using the new Project Costing Form (PCF); and then calculate the price.
FEC based costing of projects has been mandatory from 1st August 2005 (New financial year). TRAC “started” in 1999.
The PCF superseded other forms. The form is now generated electronically by fEC Project Costing Software.
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.
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.
No. There will be no more time recording than at present.