Towards implementing a full-cost model of accounting at the University of Vienna

Alexander Hammer

Head of Accounting and Finance

Legal Background

• Universities are legal entities in public law since 2004• Large autonomy for universitites • Performance agreements (contracts in public law) between universitites and Federal Government• Funding of universities by Federal Government: allocation of a global budget for a three-year period• Formula-based budget (based on performance indicators such as graduates, third-party funding etc.: 20% of global budget • Yearly performance reports: submission with annual financial statements and based on performance agreements

Financial Management (Universities Act 2002)

• Universities manage their financial affairs in their own name and

for their own account • Federal government not liable for universities’ debts• Large autonomy in financial matters• Accounting system according to Commercial Code (change in accounting principles: switch from government cash accounting to commercial accounting)

Upcoming Issues for Universities

• Separation of teaching and research budgets?• Allocation of teaching budget based on number of students (per capita funding)?• Allocation of research budget based on performance indicators? • Introduction of full-cost models in research projects (EU grants etc.)

Full-cost accounting at the University of Vienna

• Perfect integration with accounting system and existing cost centers• Definition of model in order to allocate overhead costs (personnel costs, rental costs, general and administrative costs etc.)• Definition of model (based on working time) in order to separate teaching and research costs• Certification of full-cost model by European Union planned in 2009