It costs money to receive money
As a researcher, it is important that you remember to keep sustainable growth in mind when writing applications for funding. This was emphasised by Dean Anne-Mette Hvas in advance of the introduction of a new model for contributions to the financing of the Central Administration at Health.
Researchers will need to get used to thinking in a new way when it comes to applications for funding.
This is necessary because at AU and therefore also at Health, we have adopted a new model for how the departments will contribute to the funding of the University’s joint administration. The change is particularly important for researchers applying for external funding, says Dean Anne-Mette Hvas.
“In future, the departments will contribute to AU’s shared administrative costs in proportion to the funds received. That means that as a researcher, you will have to think in a new way when you apply for external funding. It has become more important than ever that you apply for funding for the many follow-on expenses involved in research,” she says.
Now is the time to ensure that we have enough in the future
The Dean stresses that it is important that all of the faculty’s researchers are aware of the necessity of applying for funding for derived expenses. Otherwise, there is a risk that basic research funding at the department will to a greater extent than today be used to cover the derived costs in connection with large grants.
“At Health, we’re working with sustainable growth – understood in the sense that we must collectively ensure that we can afford to receive funding,” says Anne-Mette Hvas.
A future increase in revenue is the basis for the rate that Health will pay from 2025 onwards.
“That means that now is the time for us to ensure we will have enough money to pay for the Central Administration in future. We can do this if all researchers take responsibility for writing applications that include the best possible coverage of the project-related costs,” she emphasises.
Answers to the most important questions:
How can you ensure that your funding application (sufficiently) covers derived costs?
- You can do this by closely examining your funding application and finding the areas where you can apply for coverage. If you need to use a scanner in your project, for example, make sure you obtain the costs for it – even if you are normally able to borrow the scanner free of charge. Remember also to note the cost of, for example, laboratory technicians/bioanalysts, licences and administrative support, the use of core facilities, etc.
Where can you obtain assistance?
- At Health, both the departments and the individual researchers can seek help from Health Finance and the Research Support Office, who are ready with advice and ideas for coverage, bench fees, etc.
What is the background?
- For a number of years now, Aarhus University’s revenues have been becoming increasingly dependent on external funding from foundations. But it costs both AU and Health money to receive money, as the funding grants do not sufficiently cover all the items required to run a university, such as IT licences, research support, the payroll unit, IT infrastructure, access to the Royal Danish Library, etc.
- The senior management team at the University has therefore decided that, as of 2024, the faculties will contribute to the University’s joint costs at a fixed percentage of the respective faculties’ revenues – currently fixed at 12.4%, falling to 12.2% in 2025 and then 12.0% in 2026 and 2027.
What will be the consequences for my department?
- That will depend on the department’s future revenue. At Health, we have decided that all departments must contribute to a funding model that complies with AU’s overall principles. Each department will contribute to AU’s Central Administration in direct continuation of the trend in the department’s revenue – at 12.4%, falling to 12.0% in 2026 and 2027. This means that departments with rising revenue – which is primarily obtained through increased external funding – will have to pay more in their contributions. Departments with declining revenue will pay less in their contributions.
- Revenue includes income from teaching and basic research funding (Finance Act funding), external projects and sales revenues (including public sector consultancy). From 2024 on, the departments will receive compensation corresponding to their contribution in 2024, and they must therefore only pay 12.4% of the increased turnover, with effect from 2025.
What will happen in the area in the future?
- There is a lot being done at both local and national level to ensure that AU and the other Danish universities can have sustainable growth. Working groups have been set up under the auspices of AU Finance with the participation of AU Research, who are working, inter alia, on full cost calculations, a coverage catalogue, system support, pricing principles, etc.
- AU aims to cover the full actual costs of research, but this requires that the foundations will accept this significant change. At the moment, there is much to suggest that the largest foundations will agree to fees that put the universities in a better position than at present. However, the fees will still not cover 100% of the actual costs associated with carrying out an externally funded project.