University Grants Committee: Cost Allocation Guidelines For UGC-funded and non-UGC-funded Activities

University Grants Committee
Cost Allocation Guidelines for UGC-funded

and non-UGC-funded Activities
September 2015

Cost Allocation Guidelines (September 2015)
Table of Contents
Page
1
INTRODUCTION ........................................................................................................... 2
1.1
BACKGROUND ......................................................................................................... 2
1.2
PURPOSE OF THIS DOCUMENT ................................................................................... 2
1.3
DEVELOPMENT OF THIS DOCUMENT ........................................................................... 3
1.4
DOCUMENT STRUCTURE ........................................................................................... 3
1.5
ADMINISTRATION ..................................................................................................... 4
PRINCIPLES AND OVERALL APPROACH OF COST ALLOCATION .......................... 5

2.1
DESIGN PRINCIPLES ................................................................................................. 5
2.2
COST DEFINITIONS ................................................................................................... 6

2.2.1 Institutional Activities ..................................................................................... 6
2.2.2 Cost Items .................................................................................................... 7
2.2.3 Cost Pools .................................................................................................... 7
2.2.4 Cost Objects ................................................................................................. 8
2.3
3
OVERVIEW AND APPROACH OF THE COST ALLOCATION MECHANISM ............................. 10
COST POOLS ............................................................................................................. 11

3.1
ACADEMIC STAFF COST ......................................................................................... 11

3.1.1 Cost identification........................................................................................ 11
3.1.2 Cost allocation process ............................................................................... 12
3.1.3 Illustrative example ..................................................................................... 15
3.2
DEPARTMENTAL PREMISES AND RELATED COST ....................................................... 16

3.2.3 Illustrative example ..................................................................................... 20
3.3
DEPARTMENTAL SHARED COST .............................................................................. 21

3.4
DEPARTMENTAL SHARE OF CENTRAL COST .............................................................. 23

RECOMMENDATIONS FOR NEXT STEPS................................................................. 25
APPENDIX .......................................................................................................................... 27
A.
REFERENCES ........................................................................................................ 27
B.
FAWG REPORT RECOMMENDATIONS ...................................................................... 28
C.
GLOSSARY OF TERMS ............................................................................................ 29
D.
TIMESHEET TEMPLATE (ILLUSTRATIVE) ..................................................................... 31

Introduction
1.1
Background
[1] The University Grants Committee (UGC) is an independent and non-statutory advisory
committee which advises the Government of the Hong Kong Special Administrative Region of
the Peoples Republic of China (the Government) on the funding and strategic development
of the Higher Education (HE) sector in Hong Kong (HK). It established the Financial Affairs
Working Group (FAWG) in 2011 following the assessment of the eight UGC-funded
institutions financial status in 2010 owing to the substantial deficits recorded by the institutions
in the 2008/2009 academic year. The main objective of the FAWG is to obtain a better
understanding of the institutions finances, through review of the financial transparency and
cost charging mechanisms etc. in the UGC-funded institutions with a view to ensuring that UGC
funds are not utilised in funding of non-UGC-funded activities. At present, there are eight
institutions of higher education, collectively referred to as the Institutions which are funded
through the UGC:
City University of Hong Kong (CityU);

Hong Kong Baptist University (HKBU);
Lingnan University (LU);
The Chinese University of Hong Kong (CUHK);
The Education University of Hong Kong (EdUHK) (updated in June 2016);
The Hong Kong Polytechnic University (PolyU);
The Hong Kong University of Science and Technology (HKUST); and
The University of Hong Kong (HKU).
[2] FAWGs findings and recommendations in relation to cost allocation practices and financial
transparency are detailed in their report published in 2013. The recommendations, especially
those that address the appropriateness and consistency of cost allocations, staff cost recovery
practices, overhead charging practices and references to overseas best practices
(Recommendations 1, 2, 4, 5), have led to the development of these Cost Allocation Guidelines
(CAGs). Refer to Appendix B for more details on how each specific recommendation has
been dealt with within the CAGs.
[3] To take forward the implementation of FAWG Report recommendations, the UGC set up the
Financial Affairs Group (FAG) to advise the UGC and oversee the implementation of the
FAWG Report recommendations; and the Financial Affairs Expert Working Group (FAEWG)
under the FAG to advise the FAG on technical matters and to work with the Institutions on the
implementation of recommendations in respect of cost allocation and financial transparency.
1.2
Purpose of this document
[1] The purpose of the CAGs is to provide a set of guidelines for the Institutions to ensure there
is no cross-subsidisation of UGC resources to non-UGC-funded activities. The CAGs define
the principles and the approach to cost allocation across the Institutions by standardising
definitions of key terminology, measurement and application of cost drivers, and processes of
cost allocation. This will then allow the UGC to perform more complete, objective and
consistent analysis of the HE sector year on year.
[2] The guidelines detailed in the subsequent sections represent the basic features that each
institution should demonstrate in their cost allocation models. They serve as inputs to the
design and implementation of their cost allocation mechanism and should improve consistency,
accuracy, and transparency of cost-related information collected by UGC. Moreover, the cost
allocation practices and methods set out in the guidelines are principle-based rather than
rule-based. Considering practicality, the guidelines are not intended to cover the full range of
cost allocation treatments for the multifarious nature of institutional activities. Institutions
should make reasonable judgment on the cost allocation treatments of specific activities based
2

on principles set out in the CAGs when such activities are not specifically listed in the
documents and where necessary, consult professional advice.
[3] Aside from achieving the adequate level of disclosure with regards to the usage of public
funding in the HE sector, the introduction of the CAGs (and any future amendments) provides
valuable management information for both the UGC and the Institutions themselves. This will
be beneficial for decision making and strategic planning for each institution as well as the HE
sector itself.
1.3
Development of this document
[1] In order to create the CAGs and ensure that they are both feasible and suitable for meeting
the cost reporting requirements and objectives for the HK HE sector, various stages of
research, discussions and consultations have transpired. Multiple discussions were held
between the FAG, FAEWG, and the UGC Secretariat to align the objectives and agree on the
scope during the development of the CAGs.
[2] The Institutions aspirations and concerns regarding the new cost allocation mechanism are
important inputs to the development of the CAGs. In order to obtain a more comprehensive
understanding of the existing practices, extensive interviews were conducted with each
institutions Finance Department. Forums were also held with the Institutions to discuss the
approach, key findings and address concerns that arose in the development process.
[3] In developing these guidelines, research was conducted on cost allocation and
activity-based costing (ABC) best practices in HE sectors overseas. Key references were
made in particular to methods applied in the United Kingdom (UK) Transparent Approach to
Costing (TRAC) and HE sectors in other relevant countries (such as United States and
Australia).
[4] Other references used in the development of this document include previous working
papers and reports published for the UGC over the past 10 years. This includes third party
reports on activity based costing, review of approaches to ABC, review on UGCs Common
Data Collection Format (CDCF), overhead recovery practices and the FAWG Report (2013).
A full list of references has been listed at Appendix A.
1.4
Document structure
[1] This document sets out the principles and detailed guidelines of cost allocation for the
Institutions. In particular:
Section 1 details the background and purpose of the document. It also documents the
development of the guidelines themselves
Section 2 provides an overview of the key objectives and principles of cost allocation,
defines the Institutional Activities, the key costing terminology used in the remainder of
the document and a general overview of the cost allocation methods used
Section 3 explains the detailed cost allocation guidelines for each of the cost pools as
defined in Section 2 in order to separate and report by UGC and non-UGC activities
Section 4 outlines recommendations for next steps and future action points noted
during the development of these CAGs
An Appendix is attached to the back of this document

1.5
Administration
[1] This document encompasses the best fit methods for cost allocation in the HK HE sector at
the time of initial distribution by the UGC. Should there be changes to the objectives and
requirements of reporting, or any significant changes to the HK HE sector, discrepancy
between the CAGs and the Institutions models may develop. In view of such potential
situations arising, review and revision to this document should be performed on a regular basis,
e.g. annually.
[2] For any enquiries regarding specific sections or items in the document, please contact the
document owner for clarification.

Principles and Overall Approach of Cost Allocation
2.1
Design principles
[1] In the design of the CAGs, five key principles have been applied to come up with the overall
framework. To ensure that the reported costing information is of high quality and fit to purpose,
each institution has the responsibility to consider and incorporate these principles when
developing their own individual cost allocation models. The key principles are:
i)
Transparency
The allocation methods defined are designed to encourage transparency. Costs that are
attributed to relevant cost pools should be traceable back to the original source within the
institutions accounting records. The Institutions must maintain the ability to disclose and
explain methods of calculation that resulted in the respective cost-related information upon
request. The cost figures reported are to be traceable to supporting documentation and
reconcilable to the audited consolidated financial statements.
ii)
Consistency
The guidelines should be consistently applied across each of the Institutions. Moreover, upon
the identification of an agreed approach and procedures for the cost allocation model in
accordance with the CAGs, it is expected that each institution would apply the same model
from year to year. The Institutions should also design their cost allocation model to be
consistent with the definitions and approaches set out in the CAGs. This will improve
comparability and allow benchmarking of financial performance both across years for each
institution and within the year amongst the Institutions.
iii)
Fairness and Reasonableness
Cost-related information should be an accurate representation of the actual financial separation

between UGC-funded and non-UGC-funded programmes. The accuracy should be high
enough to provide the UGC and the Institutions and their Councils with the appropriate level of
comfort to present such information to their key internal and external stakeholders. In certain
cases, the allocation of costs will require estimation; and while some can be easily estimated
with a high degree of accuracy, certain costs may require varying degrees of judgement. The
reliability of reporting is based on each cost being calculated with a degree of relevance and
accuracy. Therefore each cost needs to be fair and reasonably stated based on relevant and
available data (e.g. salaries based on time analysis data collected from academic staff).
iv)
Materiality
A cost item (see Section 2.3.1) is generally defined as material if the omission or misstatement
of that cost item could affect the representativeness of financial information reported and hence
any decisions made based on the information. The Institutions should develop their cost
allocation model and focus their efforts to apply robust cost allocation methods to all material
costs. The greater the materiality of the cost item, the more effort that should be made for an
accurate cost allocation, which may results in more complex allocations. The general concept
of applying materiality is to assess whether proper effort and consideration have been applied
based on the importance of the costs. For HK HE in general, the most significant operating
costs are academic staff salaries and premises.
v)
Causality and Relevance
Costs are attributed to activities and allocated to cost objects on the basis of how those cost
pools cause the costs to be incurred. Where it is not possible to attribute costs on a causal
basis, the attribution is on a reasonable basis. In addition, costs captured in these CAGs should
only be costs in relation to Institutional Activities (see Section 2.2). This means total costs of all
direct or indirect resources used in facilitating these activities need to be captured within the
allocated amounts.

2.2
Cost definitions
[1] Definitions and examples of key cost terminology are provided in this section which will be
referred to throughout the remainder of the document.
2.2.1
Institutional Activities
[1] The CAGs are designed to capture expenditures that contribute towards Institutional
Activities, which are defined as activities that consume institution resources (including time).
Table 1 below provides a list of different types of Institutional Activities as defined within the
latest CDCF.
Table 1: Institutional Activities
Main Academic activities

Teaching teaching or preparation of teaching of students on taught programmes
Delivery of teaching:
holding lectures, seminars and tutorials (including remedial classes);
dissertation, project, workshop, laboratory, field work supervision;
placement organisation and visit;
student contact time on educational matters.
Teaching / class preparation:
preparing and updating teaching material for existing/new programmes.
Supervision of Research Postgraduates:
coaching research post graduates students on research methodologies, research progress

and thesis preparation and writing.
Programmes / course planning and development:
conducting programme / course review and preparing new programme / course proposals;
participating in curriculum and teaching methodologies review, planning and development;
timetabling;
preparing prospectuses.
Assessment and examination:
continuous assessment of different forms of student work including dissertation, essays and
projects;
preparation and conduct (including invigilation) of written and oral examinations and the
marking of examination papers;
other forms of scholarly and / or administrative work related to teaching not covered by the
above.
Research and other creative outputs creative work of research and experimental development
undertaken on a systematic basis
conduct of research that are academic research oriented and the production of papers,
reports, conference papers and scholarly books thereof;
conduct of institutional contract research and consultancies;
attending conferences, seminars and society meetings that are research project oriented;
research-oriented academic collaboration with departments within or outside of each

institution;
supervision of research staff (including recruitment of research staff where applicable) and
projects;
6

Main Academic activities
editorship or serving on editorial boards of academic publications;
preparatory work for research grants application;
preparatory work for research assessment and review;
work associated with technology transfer / invention, including patents application;
other creative outputs not mentioned above such as performances, works of art, textbooks,
case studies, scholarly translations, software, and multimedia works.
Other Institutional Activities

Other Institutional Activities activities that consume institution resources and / or time that are not
teaching or research.
This includes:
public services services to the community that are of professional or general in nature;
consultancy that is contracted to the institution, including time spent on drafting proposals and
supporting bids for consultancy works;
service provided to hospitals by departments of clinical medicine and dentistry;
outside practice that consumes institution resources and time;
institutional administration e.g. internal meetings.
[2] This list of activities under each category are illustrative only and not exhaustive. Any other
appropriate activities should be included within the relevant categories, as assessed by each
institution. In subsequent sections, other specific activities may be defined further under these
main types of activities.
2.2.2
Cost Items
[1] A cost item refers to an expenditure recorded in the financial systems. Each cost item can
represent a charge on a single transaction (e.g. a visiting professors bill payment) or a
combination of transactions (e.g. the monthly electricity bill for a building, which includes
various classrooms and laboratories). All relevant cost items should be examined and assigned
to one of the four cost pools defined below. It should be noted that relevant cost items should
be fully allocated, regardless of whether the fund source allows or prohibits the charging of
overhead amounts.
2.2.3
Cost Pools
[1] In order to facilitate the cost allocation methodology, relevant costs have been segmented
into four key cost pools. The cost pools represent groups of cost items that are similar in nature
and require the same treatment. The four cost pools identified are as follows:
i.
Academic Staff Cost:

These are the staff related costs incurred such as remuneration and benefits of the
academic staff. Refer to Section 3.1 for further details.
ii.
Departmental Premises and Related Cost:

These are defined as all expenditure incurred as a result of usage of physical area in
academic buildings by an academic department. This includes the use of equipment
and furniture which may be found in these locations. Refer to Section 3.2 for further
details.
iii.
Departmental Shared Cost:

These are all other academic department costs not classified as academic staff or
premises and related costs. Refer to Section 3.3 for further details.

iv.
Departmental Share of Central Cost:

This refers to the relevant share of central cost (all expenditures incurred as a result
of central activities) that each department should bear. Central activities are all
those activities performed by the central department (e.g. Finance, HR, Marketing
etc.). Refer to Section 3.4 for further details.
[2] These CAGs do not make use of terminology such as direct and indirect costs as defined
in the CDCF process under the UGC. Instead, the level of interaction (high to low) between the
cost items and cost pools are used as an indicator as to how correlated the cost is to a
UGC-funded programme or project.
[3] The cost pools are broadly segmented in this way to represent their level of direct
interaction with the Institutional Activities defined in Section 2.2.1 above. Figure 1 below
illustrates the level of interaction between each cost pool and Institutional Activities.
Figure 1: Interaction between cost pools and Institutional Activities
[4] As illustrated by the diagram above, Academic Staff Cost and Departmental Premises and
Related Cost are directly related to academic activities as they represent resources (e.g.
teachers and equipment) devoted to specific Institutional Activities. Departmental Shared Cost
facilitates the academic activities through the management of departmental resources (e.g.
administration staff who manage academic staff schedules). Lastly, the central department
supports the functioning of the whole institution and hence each department but have a low
correlation to individual activities. Therefore the central department indirectly supports
Institutional Activities, and each department will be allocated a portion of the overall central
cost.
2.2.4
Cost Objects
[1] Cost allocation involves linking groups of cost items to one or more cost objects. As the key
purpose of the CAGs is to ensure no cross subsidisation of UGC resources to non-UGC-funded
activities, the cost objectives, or objects have been defined as below:
UGC vote: all costs for which the UGC provides funding, whether directly (e.g. for
specified teaching programmes or research projects) or indirectly (e.g. via block
grants). Specifically, please note the treatment of the following activities for the
purpose of the CAGs:

o For research projects funded by Government bureaux / departments other than

UGC and non-governmental organizations (NGOs), which in general do not
allow the charging of faculty principal investigators (PI) costs and overhead
costs to their research projects, these costs should be charged to the UGC
vote.
o For activities (e.g. consultancy, outside practices, clinical service, and
collaborative work) other than self-financed activities conducted under the one
day per week arrangement, the relevant staff costs and overhead costs should
be charged to the UGC vote.
o For donations designated for use in scholarships and bursaries for students
studying in UGC-funded programmes, research activities and capital projects
in which donors / funding agencies do not allow the charging of relevant costs
incurred in administering these activities, the relevant costs incurred in
administering these activities should be charged to the UGC vote.
o For student exchanges / activities, conferences, consultancies and services,
college activities funded by Government bureaux / departments other than
UGC and NGOs, which in general do not allow the charging of staff costs and
overhead costs, the costs incurred should be charged to the UGC vote.
Non-UGC vote: all other events that are not classified as UGC vote. Examples
include self-financed programmes and any other institution-wide costs not funded by
the UGC. Specifically, please note the treatment of the following activities for the
purpose of the CAGs:
o For research projects funded by Government bureaux / departments other than
UGC and NGOs which allow the charging of PI costs and overhead costs to
their research projects, the relevant costs should be charged to the non-UGC
vote.
o For research projects funded by commercial organisations irrespective of
whether the charging of PI costs and overhead costs to research projects are
allowed, the relevant costs should be charged to the non-UGC vote.
o The relevant costs for self-financed activities conducted under the "one day per
week" arrangement should be charged to the non-UGC vote.
o For donations designated for all other activities not covered in UGC vote above,
the costs incurred on administering these activities should be charged to the
non-UGC vote.
o For all other activities funded by Government bureaux / departments other than
UGC and NGOs which in general allow the charging of staff costs and
overhead costs, the costs incurred should be charged to the non-UGC vote.
[2] The costs allocated to these two cost objects respectively represent the ultimate benefits
which are required under UGC reporting that indicate the actual cost of UGC-funded activities
and non-UGC-funded activities in each institution. Non-Institutional Activities are excluded from
the calculation, whether or not they are under UGC Vote or non-UGC Vote.
UGC Vote
Non-UGC Vote
Institutional
Activities
To be addressed
in Section 3 of the
CAGs
To be addressed
in Section 3 of the
CAGs
Non-Institutional
Activities
Excluded from the

calculation
required in CAGs
Excluded from the

calculation
required in CAGs

2.3
Overview and approach of the cost allocation mechanism
[1] The general approach to the cost allocation mechanism is to focus more resources on
recovering the more significant and relevant costs to academic activities. This involves the
splitting of costs at a departmental level, before aggregating the respective departmental costs
at an institutional level for reporting. Furthermore, to maximise efficiency and accuracy, cost
items that can be directly attributed to UGC or non-UGC vote should not be subjected to the
cost allocation procedures. Direct attribution should be performed instead. It should be noted,
however, that there must be valid supporting documentation to justify a direct attribution.
[2] For cost items not directly attributable, a process of cost allocation will be required. Figure 2
below illustrates the approach of the overall allocation steps required in the allocation of costs
from cost pools to cost objects.
Figure 2: Overview of cost allocation mechanism
[3] The allocation process is summarised as follows:

Step 1: Allocate cost items to relevant cost pools in accordance with definitions in Section 2.2.
Step 2a: Activity based costing methodologies are used to split Academic Staff Cost and
bookable facilities under Departmental Premises and Related Cost.
Step 2b: Various cost drivers are used to allocate non-bookable premises under Departmental
Premises and Related Cost, Departmental Shared Cost and Departmental Share of Central
Cost to the two cost objects.
[4] For details regarding the cost allocation guidelines for treatment of cost items in each cost
pools, refer to Section 3.
10

Cost Pools
[1] This section describes, in detail, the cost allocation guidelines for the treatment of cost
items classified under each of the four cost pools.
3.1
Academic Staff Cost
3.1.1
Cost identification
[1] Academic staff costs are staff related costs incurred such as remuneration and benefits.
Academic staff comprise of staff members from the academic departments, whose main
functions of employment are teaching and / or research. They hold academic titles such as
Professor, Reader, Lecturer, Research Assistant, Research Officer, etc. Academic Staff Cost
also include those staff costs associated with academic supporting staff, such as Instructors,
Demonstrators and technical research staff (e.g. Senior / Junior Technical Research Staff).
These titles are aligned with those defined within the latest CDCF. Also taken from the CDCF
the relevant cost items should include:
i)
Salary:
Salary is the monetary benefit or basic payment made by the institution to the
academic staff, as agreed within their individual employment contract.
ii) Superannuation, gratuities and Mandatory Provident Fund:

This includes the employers contribution to academic staffs pension plans.
iii) Housing benefit:
Housing benefits are benefits in relation to accommodation for academic staff. These
include private tenancy allowances, leased quarters, home purchase allowances, rates
and government rent (on non-surplus quarters), and other housing benefits.
iv) Fringe benefits other than housing:
These cover all other benefits that academic staff are entitled to but not related to
housing. These can include education allowances, medical and dental benefits,
passages, etc.
v) Other staff related expenditures:
Any other cost items that meet the definition of Academic Staff Cost. These include:
-
Hospital Authority (HA) equivalent term relevant to clinical academic staff; and
Other miscellaneous expenses in connection to staff.
[2] Each academic staff should be identified as one of the three cost sub-categories listed
below by reference to the activities on which their time was spent throughout the reporting
period. The identification must be supported by sufficient supporting documentation (e.g.
booking system or time analysis data) and evidences (e.g. principal contract of employment)
which are verifiable on a periodic basis.
1. UGC-funded staff
UGC-funded staff are defined as academic staff that work solely on UGC-funded
Institutional Activities. They do not work on any non-UGC-funded activities or on
mix-funded activities such as co-teaching courses. This includes staff that work
full-time on UGC-funded Institutional Activities but may work on non-UGC-funded
Institutional Activities within their own personal time.
2. Non-UGC-funded staff
Non-UGC-funded staff are defined as academic staff that work solely on
non-UGC-funded Institutional Activities. They do not work on any UGC-funded
activities or mix-funded activities such as co-teaching courses.
11

3. In-load staff
In-load staff are those who work on both UGC-funded Institutional Activities and
non-UGC-funded Institutional Activities and / or co-teaching courses. Commercial
research activities are classified as non-UGC-funded activities, any staff that work only
on UGC-funded projects / programmes but still conducts commercial research
activities would be categorised in this cost sub-category.
[3] The costs under the cost sub-categories of UGC-funded staff and non-UGC-funded staff
should be allocated directly to UGC and non-UGC vote respectively. The costs for in-load staff
require allocation to the academic staff activities using time spent as cost drivers and then to
UGC / non-UGC vote. When allocating costs, the gross amount of staff costs should be used in
any such calculations, that is, there should be no netting off of amounts of staff costs
associated with non-Institutional Activities. Figure 3 below highlights the key steps in the cost
allocation process.
Figure 3: Academic Staff Cost allocation process
[4] The allocation process is outlined in more details below in Section 3.1.2.
3.1.2
Cost allocation process
[1] The allocation basis for all academic staff-related costs is time spent by activities, based on
actual hours. Once it has been determined that UGC-funded staff and non-UGC-funded staff
spend all their time solely on either UGC-funded activities or non-UGC-funded activities
respectively, they may be exempted from the time allocation collection process involving
detailed time analysis, at the discretion of each individual Institution. The academic staffs time
spent on academic activities for in-load staff however, will need to be identified first through a
time allocation collection process in order to allocate academic staff costs to UGC and
non-UGC vote. The time allocation collection process is based on statistical sampling of actual
hours spent on specific activities by staff across a sample of weeks.
[2] The sample taken should be acceptable as a representation of all academic departments
and grades / types of staff. Through the use of a statistician, the results should be to an
acceptable level of statistical accuracy, based on sample size and response rate. The design of
the collection process should be overseen by a statistician, as should the review of results to
ensure that they are statistically sound and representative of the institution as a whole.
12

[3] For academic staff costs, the allocation steps are summarised as follows:
Step 1: Allocate staff cost to Institutional Activities based on actual time analysis,
i.e. actual hours spent on each activity
Step 2: Allocate costs from Institutional Activities to UGC / non-UGC vote
Step 1: Allocate staff cost to Institutional Activities based on time analysis

[i] The percentage used in staff cost allocation is determined based on time analysis using
a statistical approach. The analysis involves allocating staff costs by grade to individual
teaching programmes, research projects or other Institutional Activities using time spent as
a percentage of total working time, which excludes the time spent on non-Institutional
Activities(see table 2 below).
Process for time analysis
[ii] Figure 4 below illustrates the process for time analysis. Details of each step are
discussed further below.
Figure 4: Time analysis
- Step 1a:
A representative sample of academic staff should be selected to complete the time
analysis survey. The analysis of staff should be performed by grades. The sample
should be proportional to the grade mix for each academic department. As a minimum
requirement, this process should be completed at least three times throughout the
whole year, with each survey covering a period of 2 weeks, recording the actual time
spent on each activity in standard intervals (e.g. 60 minutes). The actual sample
selected at each Institution should be agreed with a statistician to ensure it is
sufficiently representative year on year. Throughout the academic year, there will be
varying periods of activity for each grade of staff. The sample used should ensure that
any time spent within the periods of selection are representative of the full year and
take into account considerations such as examinations and holidays which may affect
the overall outcomes based on the sampling methodology.
- Step 1b:
Each sampled academic staff is required to complete and submit a time analysis
survey for the actual hours spent on each Institutional Activity listed in Table 1. For
illustrative examples of the time analysis surveys, please see Appendix D for reference.
For ease of data management, each teaching programme and research project should
13

have a standardised programme or project code. Other Institutional Activities' should

have designated codes.
- Step 1c:
Collate time analysis surveys for each staff grade and calculate the total working time
(i.e. excluding non-Institutional Activities). Convert the total academic time spent on
each academic staff activity in hours to a percentage of total working time.
- Step 1d:
Allocate staff cost of each relevant grade to the Institutional Activities based on the
percentages calculated in Step 1c. These should then be aggregated to arrive at the
total academic cost per activity.
[iii] Non-institutional Activities performed by staff are to be identified in the time analysis
survey so they can be removed from the calculation of total working time percentages.
Table 2 below provides a list of examples of non-Institutional Activities.
Table 2: Non-Institutional Activities
Non-Institutional Activities
Non-Institutional Activities activities that do not consume the actual resources of the
institution performed by staff. These may include:
holidays;
sick leave;
private paid consultancies conducted in private time;
non-professional work;
private time.
[iv] An illustrative example around time analysis is detailed below in Section 3.1.3.

[i] For Main Academic Activities (see Table 1) that are either 100% UGC-funded, or 100%
non-UGC-funded, associated costs should be directly allocated to either UGC or
non-UGC vote accordingly.
[ii] For teaching programmes taken by both students of UGC-funded programmes and
non-UGC-funded programmes (often referred to as co-teaching), the associated
academic staff costs should be allocated to the UGC vote and non-UGC vote based on
the number of registered students from UGC-funded programmes and non-UGC-funded
programmes for that course, assuming that their loading of time are the same or
predominantly similar. If not, then the Full Time Equivalent or FTE of the student number
for UGC and non-UGC-funded programmes should be used.
[iii] Costs associated with Other Institutional Activities are allocated to UGC vote or
non-UGC vote on a case by case basis, depending on the nature of the activity.
14

Table 3: Treatment for other Institutional Activities
Allocation basis and methods
Public services
By fund source - 100% to UGC vote
Consultancy*
Allocate based on fund source
Service provided to hospitals /

clinical service*
Outside practice*
Institutional administration*
Allocate based on the allocation ratio for time spent by

academic staff
*Please refer to treatments for specific institutional activities as mentioned in Section 2.2.4.
3.1.3
Illustrative example
[1] This illustrative example is based on collected time data that covers a week for two
professors. The time spent on each activity reported on the time analysis surveys for each
professor should be consolidated in order to identify the total hours spent on each activity. The
total academic time spent on UGC-funded and non-UGC-funded activities (identified as part of
Step 2) can then be converted into percentages of total working time.
Example 1: Academic staff time analysis
Category
Professor
A
Professor
B
Total No.
of hours
Total %
share
TP A*
UGC
8%
RP B*
UGC
20
20
19%
TP C*
UGC
12
15
27
25%
TP D*
Non-UGC
30
30
28%
RP E*
Non-UGC
16
16
15%
Consultancy work
Non-UGC
5%
43
65
108
100%
Total working time
Total share of
cost
UGC: 52%
Non-UGC:
48%
* includes all hours spent on administration, preparation and other scholarly activities in relation to the programme or
research project
15

3.2
Departmental Premises and Related Cost
3.2.1
Cost identification
[1] Departmental Premises and Related Cost is defined as all expenditure incurred as a result
of the usage of a physical area by an academic department. The following cost items are highly
correlated to the degree and nature of usage of physical area, hence both UGC-funded and
non-UGC-funded activities should bear their respective portion of such costs. The relevant cost
items should include:
i) Repairs and maintenance:
This covers expenditure incurred to keep departmental premises at a reasonable
operational condition. This includes replacement cost of equipment parts, maintenance
of existing systems and payments to external workers.
ii) Utilities:
This covers recurrent expenditure incurred by energy consumption (e.g. fuel, gas and
electricity), water and sewerage.
iii)Rates and Government rent:
Rates are expenses paid to the HK Government on properties, usually charged at a
percentage of the rental value of a property. Government rents are paid by the
Institutions for the right to hold and occupy land held by the Government for a specific
period of time.
iv)Depreciation of buildings:
Depreciation is a type of expenditure that represents the portion of a building that is
deemed to have been deteriorated, consumed or expired during the concerned time
period. Depreciation spans across the economic life of each individual building.
v) Other cost of servicing the buildings:
This includes:
-
Insurance expense in relation to building or equipment

Costs of cleaning (e.g. salaries, wages and materials, and / or payments for
contract cleaning)
Cost of portering and security services
[2] Due to differences in nature of the Institutions and their various coding structures, this list of
items is neither definitive nor exhaustive. Should there be any other cost items that fall under
the definition of Departmental Premises and Related Cost; such cost items should be included
in the cost allocation process.
[3] This section does not cover premises and related costs relating to the central department,
as the relevant cost items listed above should have already been clearly segregated between
academic departments and the central department through the use of cost centres within the
financial systems. If this is not the case, a separate step within the cost allocation framework
will be required to split the premises and related costs between academic departments and the
central department.
[4] For relevant cost items relating to the premises and related costs owned by the central
department refer to Section 3.4.
[5] Figure 5 below outlines the steps required to allocate costs to different types of premises,
then to the various Institutional Activities, and subsequently to the UGC or non-UGC vote cost
objects.
16

Figure 5: Departmental Premises and Related Cost allocation process
[6] Each detailed allocation step is further discussed in Section 3.2.2 below.
3.2.2
[1] The cost items that can be associated directly with either UGC or non-UGC vote (e.g.
maintenance cost for a building solely dedicated to self-financed activities) should be directly
attributed to that cost object. For the other cost items, the step-by-step cost allocation process
should be followed.
[2] The following steps provide detailed guidance on how to allocate costs that are not directly
attributable:
Step 1: Allocate costs to premises types by location

Step 2a: Allocate bookable premises and related costs to Institutional Activities
Step 2b: Allocate non-bookable premises and related costs to UGC and
non-UGC vote via appropriate driver/s
Step 1: Allocate costs to premises types

[i] All premises related cost items are allocated to premises types by location. Premises
types refer to the standard categorisation of each physical area, e.g. Classroom,
Laboratories, Lecture Halls, etc. The individual premises types may differ between the
Institutions.
[ii] For cost items that correspond to multiple premises types, e.g. an electricity bill for an
entire building, the expenditure should be allocated across the different premises types
using the most appropriate allocation driver (e.g. floor area by individual location). In some
cases, the Estates Office may have other records on specific cost items such as property
management records of repairs and maintenance conducted by the property technicians. If
the data is readily available in the format required, and the monetary amount is material, a
more specific allocation methodology could be applied to such cost items. This specific
allocation methodology may involve allocating the costs to each type of premises using
more suitable drivers such as property technician man-hours spent at each specific
premises type. The Institutions should consider the level of materiality and additional
administrative effort before pursuing other options.
17

Further categorisation of premises types

[iii] All premises types should be broadly classified into two types: bookable or
non-bookable. A bookable area refers to a physical area of which the rights to occupy and
use is subject to a documented reservation through a universal booking system. Any area
that does not fall under the definition of a bookable area is classed as a non-bookable area.
Examples of bookable premises and non-bookable premises are listed in Example 2 below.
Example 2: Premises types
Premises Types
Bookable
Non-bookable
Student-facing
Non-studentfacing
Premises
Classrooms
Laboratories
Lecture Halls
Meeting Rooms
Special Equipment
Common Areas
Study Area
Storage Capacities
Departmental Libraries
Green Houses
Printing Rooms
Escalators
Elevators
Department Offices
Department Pantries
Toilets
[iv] For bookable premises, refer to Step 2a and Step 3 for further details on the allocation.
For non-bookable premises, refer to Step 2b for cost allocation procedures.
Step 2a: Allocate bookable premises and related costs to Institutional Activities
[i] Costs associated with bookable premises should be further allocated to the Institutional
Activities using booked time as an allocation driver. In addition to the list of Institutional
Activities defined in Section 2.2, two other illustrative activities specifically related to
premises usage are shown in Table 4 below:
Table 4: Other premise-related activities
External activities
External activities events organised by third parties outside of the institution. This
includes a variety of activities. Examples of such include:
Public Lectures
Research projects not conducted by the institution
Corporate recruitment events
Conferences
Idle time
Idle time periods of time when the premise is available but are not booked.
e.g. if bookable hours per day is 12 hours and total booked time is 7 hours, then 5 hours are
considered Idle time.
[ii] The record of usage should be tracked through a reservation in the booking system,
whether paper-based or through an online system. The Institutions should ensure booking
parties to specify which Institutional Activity the bookings relate to. The use of standardised
teaching programme codes and research project codes to facilitate referencing is strongly
encouraged.
18

[iii] The share of cost of each activity should be determined by the proportion of booked
time spent on each activity, i.e. if 5% of the total available booking time for classroom A is
booked under Teaching Programme 1, then Teaching Programme 1 should bear 5% of
total costs allocated to classroom A. Example 3 below illustrates how the cost allocation
could be performed in practice.
Example 3: Allocation of booked time Illustrative
Lecture Hall 2 (LH2)
February
bookings
Booked Times
(Hrs)
Share of LH2 Cost
BBA Law Y1
lecture
Mathematics
Y3 seminar
External
events
Idle
100
40%
90
36%
10
4%
50
20%
Total
250
100%
Step 2b: Allocate non-bookable premises and related costs to UGC / non-UGC vote
[i] Due to the practical difficulties in measuring the actual usage for non-bookable premises,
proxies should be used to allocate cost to UGC or non-UGC vote.
[ii] Two suggested proxies that could be reliably measured and relevant to the
consumption or usage of premises are:
a. Student headcount registered in UGC-funded programmes and non-UGC-funded
programmes
b. Number of UGC-funded programmes and non-UGC-funded programmes
[iii] To determine the appropriate driver, non-bookable premises are classified into two
general categories: Student-facing and non-student-facing premises. Refer to Example 2
above for an illustrative example on how these may be defined within an institution.
Selected drivers for allocations should be based on actual figures obtained for the year.
Where these may vary throughout the year (e.g. number of UGC-funded students may
differ from month to month), these should be based on an average of appropriate periods
(e.g. monthly), which are representative of the actual figures throughout the time period to
be allocated. Additional adjustments may be required to recognise variables, such as
access to premises, on a case by case basis.
[iv] Student-facing premises: relative usage is related to the number of students for
each academic department using the premise; hence the allocation ratio should be
determined by the following suggested ratio:
Number of UGC-funded students : Number of non-UGC-funded students
[v] Non-student-facing premises: relative usage is generally not related to the number
of students using the premise but according to the effort to administer the programmes per
academic department, hence the allocation ratio should be determined by the following
suggested ratio:
Number of UGC-funded programmes : Number of non-UGC-funded programmes
Step 3: Allocate cost from Institutional Activities to UGC and non-UGC votes
[i] For Main Academic Activities (refer to Table 1) that are either 100% UGC-funded or
100% non-UGC-funded, associated costs should be directly allocated to either UGC or
non-UGC vote accordingly.
19

[ii] For teaching programmes taken by both students of UGC-funded programmes and
non-UGC-funded programmes (often referred to as co-teaching), the associated
Departmental Premises and Related Costs should be allocated to the UGC vote and
non-UGC vote based on the number of registered students from UGC-funded programmes
and non-UGC-funded programmes for that course.
[iii] Costs associated with Other Institutional Activities should be allocated to UGC vote or
non-UGC vote on a case by case basis, depending on the specific nature of the activity.
Suggested methods are summarised in Table 5 below:
Table 5: Treatment of Activities
Activities
Treatment
Main Academic Activities
By fund source
3.2.3
Public services
By fund source - 100% to UGC vote
Consultancy
Service provided to
hospitals / clinical service
Outside practice
Institutional administration
Allocate based on the allocation ratio for time spent by

academic staff
External events
Attribute to non-UGC vote
Idle time
Attribute directly to UGC vote or non-UGC vote based on

the source of funding of the building
Illustrative example
[1] Consider costs specifically assigned to two buildings: a building solely used for
non-UGC-funded programmes (non-UGC building), and a building used for both UGC-funded
and non-UGC-funded programmes (Building A). Example 4 below illustrates the overall
allocation process for these cost items.
Example 4: Illustrative example for Departmental Premises and Related Cost
Note: the percentages should be calculated according to the methods described in Step 1, Step 2a and Step 2b.
20

3.3
Departmental Shared Cost
3.3.1
Cost identification
[1] Departmental shared costs are all other academic department costs not classified as either
academic staff or premises and related costs. They typically represent expenditures incurred in
the functional support of each academic department. Relevant cost items include
non-academic staff costs (i.e. the administrative, clerical and technical staff costs within
academic departments), IT systems, senior management (e.g. Faculty Dean), marketing /
advertising, office supplies, etc.
[2] Figure 6 below outlines the allocation steps required to allocate Departmental Shared Costs
to UGC and non-UGC vote.
Figure 6: Departmental Shared Cost allocation process
[3] Details of the allocation process are discussed below in Section 3.3.2.
3.3.2
[1] By the general nature of these cost items in relation to the cost objects, it is difficult to
directly allocate the support costs to either the UGC and non-UGC vote, thus these support
costs should be allocated based on relevant drivers. The suitability of the cost driver for
allocating each cost item should be considered on a case-by-case basis, balancing the total
value or materiality of each against the effort required to allocate the cost items.
[2] As suggested in Step 2b of Section 3.2.2, relevant cost drivers identified may include:
a. Student headcount registered in UGC-funded and non-UGC-funded programmes
b. Number of UGC-funded and non-UGC-funded programmes
c. Time spent by Academic staff / Academic staff headcount
[3] For cost items that tend to be driven by student headcount, the associated costs items
should be allocated to the UGC vote and non-UGC vote based on the ratio:
Number of UGC-funded students : Number of non-UGC-funded students
[4] For cost items that are deemed more suitable to be shared evenly across the different
activities conducted in the academic department, the associated costs items should be
allocated to the UGC vote and non-UGC vote based on the ratio:
Number of UGC-funded programmes : Number of non-UGC-funded programmes
21

[5] For cost items that tend to be driven by time spent by academic staff, the Institutions should
utilise the allocation ratio for time spent by academic staff calculated in Example 1 in Section
3.1 to allocate the associated cost.
[6] A list of suggested allocation drivers is provided in Example 5 below. The Institutions should
leverage their detailed knowledge on the nature of the costs within their own Chart of Accounts
to derive the most appropriate allocation driver for that cost item. Selected drivers for
allocations should be based on actual figures obtained for the year. Where these may vary
throughout the year e.g. staff headcount may differ from month to month, these should be
based on an average of appropriate periods e.g. monthly, which are representative of the
actual figures throughout the time period to be allocated. Additional adjustments may be
required to recognise variables on a case by case basis.
Example 5: Suggested cost drivers
Cost Items
Suggested Cost Drivers
Support Staff Cost
Time spent by Academic Staff / Academic

Staff headcount
IT systems

Staff headcount
Senior Management
Number of Programmes
Marketing / Advertisement
Student headcount
Office Supplies

Staff headcount
22

3.4
Departmental Share of Central Cost
3.4.1
Cost identification
[1] Unlike the departmental cost components described in Section 3.1 to 3.3, central costs are
not directly associated to specific academic departments. Central costs are defined as all
expenditure incurred as a result of central activities. These are activities performed by the
central department which may include:
i) Management and general includes Presidents and Senior Administrators
Offices, Finance, Human Resources, Estates, etc.
ii) Academic support includes central computing / IT systems, central libraries and
other academic services
iii) Student and General Education Services includes marketing / promotion and
student admissions
iv) Institutional premises relevant to central departments - includes student
premises and amenities
[2] This list is comparable to the list of Central Expenditure set forth within the CDCF. The main
distinction is that expenditures on institutional premises borne by academic departments are
separately recorded under Section 3.2 Departmental Premises and Related Cost.
[3] Figure 7 below outlines the steps required to allocate central cost to academic departments,
before allocating to UGC and non-UGC vote.
Figure 7: Departmental Share of Central Cost allocation process
[4] Details of each allocation step are discussed below in Section 3.4.2.
3.4.2
[1] The following steps provide detailed guidance on how to allocate costs that are not directly
attributable:
Step 1: Allocate central cost to academic departments

Step 2: Allocate Departmental Share of Central Cost to UGC and non-UGC vote
23

Step 1: Allocate Central Cost to academic departments

[i] Since central costs facilitate the functioning of the academic departments and
contributes to the welfare of students, each academic department should bear an
appropriate portion of the total central cost. This allocation should be performed using
appropriate cost drivers such as number of students or programmes for each academic
department. The use of number of student per department as a cost driver can be
illustrated in Example 6 below:
Example 6: Allocating Central Cost to academic departments using number of students
HR department Cost
Departments
# of students
Share of HR cost
per department
Mathematics
60
15%
Economics
160
40%
Medicine
80
20%
Law
100
25%
Total
400
100%
[ii] Each institution should determine which cost driver to use and how the values of such
cost drivers are determined. Once determined, these should be consistently applied year
on year.
Step 2: Allocate Departmental Share of Central Cost to UGC and non-UGC vote
[i] Once the relevant share of central cost has been allocated to specific departments, this
cost should be allocated to UGC and non-UGC vote using relevant cost drivers. Since this
cost is not directly associated with any specific departmental activity, the apportionment is
best represented by how the actual departmental cost pools are shared. The suggested
driver to use in this allocation would be the actual percentage share of the three
departmental cost pools (i.e. Academic Staff Cost, Departmental Premises and Related
Cost and Departmental Shared Cost). An illustrative example is displayed in Example 7
below:
Example 7: Determination of ratio to split Departmental Share of Central Cost Illustrative
Mathematics Department
Cost Pools
University of [XYZ]
UGC Vote
(HKD millions)
Non-UGC Vote
(HKD millions)
Academic Staff Cost
3,200
1,800
Departmental Premises and

Related Cost
1,800
1,000
Departmental Shared Cost
1,400
800
Total
6,400
3,600
% split applied to
Departmental Share of
Central Cost
64%
36%
[ii] Under this cost allocation mechanism, the allocation for the departmental cost should
be performed before the treatment of Departmental Share of Central Cost.
24

Recommendations for Next Steps
[1] This section describes a list of suggested actions that should be considered by each
institution in order to maximise the effectiveness and efficiency of initial implementation and
ongoing annual application of the CAGs.
Table 6: Considerations for implementation
1.
Aspects
Action Points
People
Review resource requirements
Each Head of Department should assess the level of staff

commitment required for the various tasks required by the CAGs. The
department should determine whether current resources are sufficient
and allocate resources in the most efficient manner.
Assess skills requirement and design formal staff trainings
Specific technical knowledge may be required for this exercise (e.g.

sampling techniques for time analysis). It is essential to ensure all
working units have a clear understanding of the cost allocation
exercise. Training materials and workshops should be considered if
deemed necessary by the Institutions.
Define roles and responsibilities
Designated individuals should be deemed responsible for each key

activity within the cost allocation process. A suitable degree of
supervision and monitoring should also be included in the design of
the process.
2.
Process
Perform cost identification
Departments should ensure that each cost item from the Chart of
Accounts are mapped to the four cost pools in accordance with
definitions set out in Section 3 of this document.
Develop data collection procedures
Process of collecting staff time information should be designed and

communicated to each department. This includes designing a
user-friendly timesheet which includes all required data, establishing
a process for timesheet submission and ensuring the sampling
methodology is adequate to meet requirements.
Coordinate with any other parties (e.g. the Estates Office) to

determine efficient procedures for extracting data to facilitate cost
allocation exercise.
Standardise activities
During design and implementation, the various activities within the

process should be agreed and adopted by all departments across
each institution to ensure consistency. Initial surveying and
continuous annual review and update are expected to be required.
Determine appropriate cost drivers
The determination and calculation of different cost drivers (e.g.

student ratios, programme ratios) should be applied consistently
across departments within each institution. This includes the source
of the data itself (e.g. use of year-end actual figures or monthly
average figures for student numbers)
25

3.
Aspects
Action Points
Technology
Assess requirements for implementation
IT Department should assess whether the current IT infrastructure

can support the requirements of the CAGs after discussions with
department staff. System enhancements should be considered if
necessary.
Automate allocation process
Certain steps in the CAGs could be automated to maximise the

efficiency of performing the cost allocations (e.g. collation of time
analysis data from academic staff could potentially be performed by
HR system). The possibilities of automation of the cost allocation
processes should be considered throughout the design phase.
4.
Project
Management
Designate Project Management Office
A Project Management Office with a designated Project Manager

should be set up to facilitate the implementation of the CAGs. It
should oversee the progress and coordinate the actions of different
working parties.
Establish communication channels
Effective communication channels should be set up amongst

departments within each institution, between the Institutions and with
the UGC. This would allow for a sharing of experience or enquiries
regarding the design or implementation of the CAGs amongst the
stakeholders.
5.
Governance
Establish adequate governance structure for CAGs
The cost allocation process should be overseen and governed by a

designated body within the institution to promote accuracy and
relevancy of the report figures. This includes clearly defining the roles
and responsibilities of all users within the process.
Design review mechanism
The effectiveness and accuracy of the CAGs should be reviewed at

least annually. The Institutions should continue to update and
mandate their practice to achieve the objectives of the allocation.
26

Appendix
A.
References
[1] Below is a list of specific documents that were used as a reference during the development
of the CAGs:
Common Data Collection Format (CDCF) Data Collection for Academic Year
2013/2014 Guidance Notes University Grants Committee
Financial Affairs Working Group Report (2013) University Grants Committee
Transparent Approach to Costing (TRAC) Guidance J M Consulting Ltd
27

B.
FAWG Report recommendations
[1] The following table reconciles the recommendations related to cost allocation practices from
the FAWG Report to the treatment as found in the CAGs.
Table 7: FAWG recommendations
Recommendations from FAWG Report
Section Ref
Recommendation 1:
The FAWG recommends as a matter of general principle that:
(a) costs should be allocated to both the UGC vote and the
non-UGC vote using appropriate and consistent methods such that
the amounts charged to the UGC-funded activities are calculated
using the same methodology as that used to calculate the cost of
overheads to be charged to the non-UGC-funded activities.
Refer to Section 3 for

consistent cost
allocation basis and
process
(b) indirect overheads charged to non-UGC-funded research

projects and all other self-financed activities be charged on exactly
the same basis.
Recommendation 4:
The FAWG recommends that the Institutions re-examine their
practices concerning staff cost recovery along the principles set
out in the report to move towards the requirement of full staff cost
recovery. The staff benefits, the costs of research and other
scholarly activities should be taken into account when calculating
the charge to self-financed programmes. The charge for the time
spent by UGC-funded faculty to teach self-financed programmes
should be reviewed, and if necessary, recalculated on an annual
basis in light of any change to the pay scale of academic staff.
Recommendation 5:
The FAWG recommends that the Institutions amend their
overhead charging practices to recognise that the cost of buildings
is a direct cost to be charged to a self-financed programme.
Refer to Section 3.1 for

Academic Staff Cost
allocation
Refer to Section 3.2 for

Departmental Premises
and Related Cost
allocation, which cover
the depreciation of
buildings
28

C.
Glossary of terms
Table 8: Definitions of key terminologies
Terminology
Definition
Academic Staff
staff members from the academic departments, whose main

functions of employment are teaching and / or research
Academic Staff Cost
staff related costs incurred as remuneration and benefits of the

academic staff
Bookable area
a physical area of which the rights to occupy and use is subject to a

documented reservation through a universal booking system
Booked time
actual time recorded for usage of a specific physical area in the

booking system
Central activities
activities performed by the central department
Central cost
all expenditure incurred as a result of central activities
Common areas
all those areas which are available for use to all students and staff
e.g. lift lobby, corridors, bathrooms, etc.
Cost drivers
factors with units of measure that drive the cost of an activity
Cost items
an expenditure recorded in the financial systems
Cost objects
cost objectives in which costs items are allocated to
Cost pools
groups of cost items that are similar in nature and require the same
cost allocation treatment
Co-teaching courses
courses that are taken by students of both UGC-funded

programmes and non-UGC-funded programmes
Departmental Share of
Central Cost
relevant share of central cost that each department should bear
Departmental Shared
Cost
all other academic department costs not classified as either

academic staff or premises and related costs
Departmental
Premises and Related
Cost
all expenditure incurred as a result of usage of physical area in

academic buildings by an academic department
External activities
events organised by third parties outside of the Institutions
Idle time
periods of the available booking times in which a bookable area are

not booked
staff who work on both UGC-funded Institutional Activities and
non-UGC-funded Institutional Activities and / or co-teaching
courses. Commercial research activities are classified as
non-UGC-funded activities, any staff that work only on
UGC-funded projects / programmes but still conduct commercial
research activities would be categorised in this cost sub-category
In-load staff
Institutional Activities
activities that consume institution resources and / or time
Non-bookable area
any area that does not fall under the definition of a bookable area
Non-Institutional
Activities
activities that do not consume the actual resources of the institution

performed by staff
Non-student-facing
premises
premises not subject to usage by students
Non-UGC vote
all other costs that are not classified as UGC Vote
29

Terminology
Definition
Non-UGC-funded Staff
academic staff that work solely on non-UGC-funded Institutional

Activities. They do not work on any UGC-funded activities or
mix-funded activities such as co-teaching courses
Outside practice
participation in academic activities outside of the Institutions

curriculum
Premises types
standard categorisation of each physical area
Student-facing
premises
premises subject to usage by students
UGC vote
all costs for which UGC provides funding
UGC-funded Staff
academic staff that work solely on UGC-funded Institutional

Activities. They do not work on any non-UGC-funded activities or
on mix-funded activities such as co-teaching courses. This
includes staff that work full-time on UGC-funded Institutional
Activities but may work on non-UGC-funded Institutional Activities
within their own personal time
Working time
the time spent on Institutional Activities
30
Date:
Other Institutional
Activities
Signed by supervisor as correct.
Consultancy Project for Government

xxx
xxx
xxx
xxx
xxx
xxx
CP
##
##
##
##
##
##
Projects/
programmes
Activities
Day 1
Section B
Day 2
Day 3
Week 1
Day 4
3. This hours can be recorded up to one decimal place.
Day 5
Day 2
Day 3
Week 2
Reference code
TP##
Teaching programs
RP##
Research project
CP ##
Consultation projects
Day 1
2. Section B, indicate hours worked on each activities within the appropriate day
Date:
Mathematics Year 1- Statistics

Physics Department - Research
xxx
xxx
xxx
xxx
TP01
RP01
##
##
##
##
Note:
Day 4
Total Hours
Day 5
###
##
##
##
##
##
##
##
##
##
##
##
##
##
##
##
Total
Hours
Worked
1. Section A, fill in the activity codes and name of the activities where actual time was spent during the selected 2 week time frame. Institutions may insert the time for non-institutional activities as appropriate.
Signed by staff member as a correct record of attendance.
Name
Code
Period: dd/mm/yyyy - dd/mm/yyyy

<Staff Name>
Senior Professionsal
Level 4
Institutional
Activity
Section A
SP
4
T1
D.
Week
Staff Name
Staff Role
Pay Band
Sample Timesheet Template 1

Timesheet template (Illustrative)
31

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