External Funded Research

The policy will be implemented in such a way as to ensure that the cost of accepting grants and contracts from external sources are recovered, and to ensure that the University secures an adequate return on its investment of academic expertise and infrastructural support services.

The Policy sets out:

• the principles to be applied to the budgeting for full costs;
• the pricing policy by which those costs should be recharged to the client;
• the basis on which income is to be allocated to the University;
• the internal controls over expenditure which are essential to avoid subsidization from other University resources.

Prior to submission or acceptance, all proposals and awards for either extramural or intramural support must be reviewed and approved by the Research Steering Committee and authorized by AVCAA. (See Faculty Handbook – Procedures of Research Grant), Grant Application Form

Costing

The budgeted costs of research projects must be calculated accurately to arrive at the full cost, and controlled in terms of the accounting principles below. Direct costs fall under two categories:

• Marginal: those which generate additional cash outflow (e.g. contract staff, consumables, travel, student support, consultancy and commission fees).
• Attributable: those which utilize existing resources (e. g permanent, contract or temporary staff funded from approved establishment budgets, and School consumables and facilities not otherwise accounted for).

A detailed analysis of such costs forms part of this policy document:

See (Research project budget worksheet)

Pricing

The price quoted to sponsors and/or clients for short-range applied research must at least cover the full cost of the project. The University should not subsidize commissioned work of immediate commercial value to the sponsor.

If the research is long range, and if the University has funds available to do so, it may itself propose a larger program, jointly funded with the sponsoring body. In this case the relative contributions in financial terms of each partner should be clearly established at the onset, so that these can be reflected in levels of royalty payments from the licensing and exploitation of any patent or other intellectual property. In this case the Overhead Recovery charge may be included as a University (part or full as deemed appropriate) contribution to the funding.

In negotiating the cost of the project, and specifically any basis for adjustment to the assessed full cost, two principles will be taken into account:

• that the price should be what the market will bear;
• that it may be in the University’s interests to adjust the price in order to acquire benefits which will contribute to future academic endeavor. For example, grants and/or contracts which will support work which has academic relevance, secure student sponsorship(s), secure Intellectual Property Rights, secure University ownership of equipment, and secure an introductory contract which is expected to lead to further contracts.

The University should seek, when selling unique expertise, to charge a premium in excess of full costs for short-term commissioned research. The AVCAA will advise on the setting of the price and will authorize the University acceptance.

NB

Pricing decisions can often be complex in nature and a range of different factors, not just costs need to be taken into account. Thus to make effective pricing decisions the HBM e-University may have to obtain additional information about markets, customers and competitors and to thoroughly analyze that data.

When the University is competing for research contracts it may not know the price that its competitors will propose. In this market the University must attempt a best guess of what the competitors will charge. Additionally, and importantly, the University must ensure that its offer accounts for any difference in price by differentiating its research from that of the competitor; otherwise the market will decide on the lowest price.

Internal Control of Contract Funding

Faculty and Staff members may not conclude negotiations on the terms of a contract without the authorization of the AR Deanship, and approval of SR Committee. It is advisable therefore that the draft contract be circulated to the above mentioned for comments and possible amendment early in the negotiation process.

The allocation of income received and disbursements made will be monitored by the Finance Office and will be controlled by way of a dedicated cost diagram for each project. Disbursement authorization is subject to the Financial Policy and Procedures relative to the Authorization of Payments.

The calculation of direct costs (both marginal and attributable) must make stipulation for known and/or anticipated pay awards. The University will not meet any shortfalls arising from inadequate provision for salary increases and/or any other additional costs.

Internal Funded Research for Faculty and Staff

Research Funds for Faculty and Staff are allocated by the HBM e-University in attempt to generate new opportunities for research ideas and interests which will benefit the individuals, the University and its wider society. Therefore, the University itself acts as a sponsor in its capacity as administrator of intra-University programs under its auspices which award funds on a competitive basis for research projects. (See Faculty Handbook – Procedures of Research Grant); Grant Application Form

Prior to submission or acceptance, all proposals and awards for either extramural or intramural support must be reviewed and approved by the Scientific Research Steering Committee. (See Faculty Handbook-Faculty Research Grant Program)

Assessment of Internal Funded Research

• Proposal demonstrates intellectual merit; that is knowledge of the relevant literature and theoretical base for the research and proposes a strategy with a high probability for success to produce new knowledge on TQM and/or e-learning with strong relevance to the HBM e-University’s core business and its constituencies.
• Proposal has the potential to provide framework for improving the overall research potential and scholarly contributions in the field of TQM, University e-learning, and/or e-Health management as well as broaden the theoretical perspective of both fields.
• Proposal has presented strategies for evaluating the usefulness of the findings and strategies for disseminating them locally, regionally and/or internationally.

• direct costs,
• indirect costs of the project comprising of the following:
• research time x payroll costs for University funded academic (teaching and research)
• cost of research facilities and administrative support services (e.g. academic services, general University services, utilities, buildings and grounds, other support and equipment), and research graduate learner (where applicable) on the project.

NB

University Policy stipulate a minimum rate and an optimum figure, having regard to the commercial nature of any arrangements, if any, and the benefits of the project to the University core business of research, research training and education. Commercially oriented research where the University is the principal beneficiary in terms, for example, of intellectual property rights, will normally be priced at the higher rate.

This policy will be subject to review after two years of implementation.