Transparent Approach to Costing (TRAC)
TRAC is the methodology used by higher education institutions (HEIs) in the UK for costing their activities. HEFCE has supported the development and implementation of TRAC in HEIs since its inception and seeks to ensure that TRAC is fit for purpose in meeting institutions' and stakeholder needs.
Governance
TRAC is governed through two tiers that cover high-level areas of policy and its broader development. These are:
- Financial Sustainability Strategy Group (FSSG)
The FSSG is a high-level forum established to consider the strategic, policy, cultural and technical issues around the use and development of TRAC. The latest letter from the group's Chair provides an update on the HEFCE Review of TRAC. - TRAC Development Group (TDG)
The group considers developmental issues and supports the use of TRAC in understanding and managing financial sustainability.
In February 2009, the FSSG published a review of the sustainability of learning and teaching. This review examines a broad base of evidence and recommends actions for institutions, the higher education sector, and the Government to assure the sustainability of learning and teaching.
Guidance and validation
A set of consolidated TRAC guidance (issued June 2005) and periodic updates are available on the web-site of the Joint Costing and Pricing Steering Group (JCPSG).
The JCPSG site itemises details of revisions to the Guidance, including changes to the cost adjustments.
We have also put together a validation checklist designed to help institutions consider their TRAC results. It was produced by JM consulting with input from pilot institutions, and has been approved by the UK funding councils.
Validation checklist (April 2006)
[ Download Validation checklist (April 2006) as MS Word 49K | Download Validation checklist (April 2006) as Adobe PDF 32K ]
Support Unit
The TRAC Support Unit provides a range of support services for TRAC. KPMG has now taken over responsibility for running the TRAC Support Unit offering a range of support services
Default cost rates 2011-12
The TRAC dispensation default rates have been announced, to be used when applying to the Research Councils and other public bodies for grants for research projects on a full economic cost basis.
Review of full economic costing for research
In June 2010, a joint task group of Universities UK and the Research Councils UK that was chaired by Sir William Wakeham produced a report on full economic costing for research in higher education.
This report made a series of practical recommendations to funding bodies and universities and colleges. In particular these recommendations looked at the financial sustainability and efficiency and effectiveness of the sector.
Membership of the group included representatives from FSSG and TDG.
Further information on Research Council UK's implementation of the recommendations
Review of TRAC
The 2011 higher education White Paper asked HEFCE to consult with the sector on a proposed streamlining of the Transparent Approach to Costing (TRAC) reporting process. A small review group is meeting to consider the scope and content of the consultation. Details are available to download below.
HEFCE Review of TRAC: terms of reference and scope
[ Download HEFCE Review of TRAC: terms of reference and scope as MS Word 49K | Download HEFCE Review of TRAC: terms of reference and scope as Adobe PDF 32K ]
Further details
Further details and guidance on the TRAC project can be found at the JCPSG web-site.
Last updated 5 December 2011