fECfECFull Economic Costing of Full Economic Costing of

Research (and Teaching and Research (and Teaching and Administrative) FacilitiesAdministrative) Facilities

Why calculate, account for, and charge the fEC of Why calculate, account for, and charge the fEC of space/facilities?space/facilities?

1.1. To eliminate cross-subsidisationTo eliminate cross-subsidisation

If premises-related costs are calculated asIf premises-related costs are calculated asUCL premises-related expenditure (£)UCL premises-related expenditure (£) = £/m = £/m²²

Total floor area (mTotal floor area (m²)²)andand

less than this is charged to/recovered from research sponsors = less than this is charged to/recovered from research sponsors = cross subsidy from another area of UCL’s business.cross subsidy from another area of UCL’s business.

research sponsors are charged for facilities at a research sponsors are charged for facilities at a flatflat rate, i.e. some rate, i.e. some space is over charged (e.g. storage, offices, etc.) and some is space is over charged (e.g. storage, offices, etc.) and some is undercharged (e.g. laboratories) this results in the charge for lower undercharged (e.g. laboratories) this results in the charge for lower cost facilities cross-subsidising higher cost facilitiescost facilities cross-subsidising higher cost facilities

Why calculate, account for, and charge the fEC of Why calculate, account for, and charge the fEC of space/facilities?space/facilities?

2.2. ToTo achieve sustainabilityachieve sustainability

In the current (2004-2005) financial year the premises budget is £5.5 In the current (2004-2005) financial year the premises budget is £5.5 million million lessless than what was estimated to be necessary for the proper than what was estimated to be necessary for the proper upkeep of the estate (not including what is needed to address the upkeep of the estate (not including what is needed to address the accumulated backlog of maintenance).accumulated backlog of maintenance).

The Estates and Facilities budget The Estates and Facilities budget does notdoes not include a provision for such include a provision for such items of capital expenditure as the replacement of furniture and fittings items of capital expenditure as the replacement of furniture and fittings (e.g. laboratory benching, etc.) or the cost of meeting evolving and (e.g. laboratory benching, etc.) or the cost of meeting evolving and increasing legislative requirements, or to meet the cost of updating increasing legislative requirements, or to meet the cost of updating facilities.facilities.

The objective is ultimately to ensure that what is spent and financially provided The objective is ultimately to ensure that what is spent and financially provided for is what is needed adequately to run and maintain the facilities.for is what is needed adequately to run and maintain the facilities.

Why calculate, account for, and charge the fEC of Why calculate, account for, and charge the fEC of space/facilities?space/facilities?

3.3. The fEC calculation must therefore include:The fEC calculation must therefore include:

The amount actually spent on premises The amount actually spent on premises plusplus

an addition (a so-called “infrastructure adjustment”) to make good the an addition (a so-called “infrastructure adjustment”) to make good the difference between what is spent and what ought to be spent and provided difference between what is spent and what ought to be spent and provided for.for.

A banded costing mechanism which reflects the fact that there are A banded costing mechanism which reflects the fact that there are significant differences in the cost of servicing and maintaining different significant differences in the cost of servicing and maintaining different types of spacetypes of space

4. The cost differentials4. The cost differentials

Band 1Band 1 StorageStorage

Do not include in this category specialized storage Do not include in this category specialized storage (e.g. cold rooms, closed access library storage) (e.g. cold rooms, closed access library storage) which is part of one of the following categories.which is part of one of the following categories.

0.750.75

Band 2Band 2 Naturally ventilated officesNaturally ventilated offices 1.01.0

Band 3Band 3 Air conditioned officesAir conditioned offices 1.31.3

Band 4Band 4 Cold RoomsCold Rooms

Seminar roomsSeminar rooms

Lecture TheatresLecture Theatres

Libraries and directly related book storageLibraries and directly related book storage

Catering areas/serveries (please include related Catering areas/serveries (please include related kitchens in band 5)kitchens in band 5)

Workshops (mechanical, electrical, electronic etc.)Workshops (mechanical, electrical, electronic etc.)

1.51.5

Band 5Band 5 Dry and wet laboratories with no, low, or medium Dry and wet laboratories with no, low, or medium containment requirements (e.g. ACDP containment requirements (e.g. ACDP containment levels 1 and 2)containment levels 1 and 2)

Equipment roomsEquipment rooms

Freezer banks/storesFreezer banks/stores

Wash-up facilitiesWash-up facilities

Kitchens/food preparation areasKitchens/food preparation areas

2.12.1

Band 6Band 6 Clean RoomsClean Rooms 3.03.0

Band 7Band 7 Biological Services facilitiesBiological Services facilities 3.53.5

Band 8Band 8 High Containment (e.g. ACDP category 3)High Containment (e.g. ACDP category 3)

LaboratoriesLaboratories

3.73.7