The Recurrent (R) fund

The University's recurrent operating budget is primarily funded from the Commonwealth Department of Education, Employment and Workplace Relations (DEEWR) through the payment of an "operating grant". The operating grant is made under the Higher Education Support Act 2003 and comprises various components including the Commonwealth Grant Scheme (CGS), the Higher Education Contribution Scheme (HECS) and National Institutes Funding.

A substantial amount of the funding provided to ANU from the Commonwealth is won through national competitive grant schemes, including the Institutional Grants Scheme (IGS), Research Training Scheme (RTS) and Research Infrastructure Block Grant (RIBG).

Institutional Grants Scheme (IGS)

The broad purpose of the Institutional Grants Scheme is to maintain and strengthen Australia's knowledge base and research capabilities. The IGS was first allocated in 2002 and is based on performance, comprising:

  • research income - weighted at 60 per cent;
  • Commonwealth-funded research student load - weighted at 30 percent; and,
  • research publications - weighted at 10 per cent.

Research Training Scheme (RTS)

The Research Training Scheme was introduced in 2001 to enhance the quality of research training in Australia. 2002 was the first year in which RTS formula-based funding mechanism applied. RTS funding is allocated according to three elements:

  • all higher degree research (HDR) student completions - weighted at 50 per cent;
  • total research income - weighted at 40 per cent; and,
  • research publications - weighted at 10 per cent.

Research Infrastructure Block Grant (RIBG)

The Research Infrastructure Block Grant is a component of the Higher Education Program, which is used to support research and research training activities. Allocation of RIBG is also formula-driven with allocations reflecting the relative success of each institution (and constituent areas) in attracting competitive research funds.

Other recurrent fund revenue

Other elements of the University's recurrent revenue base include investment income, central overhead contributions from special purpose funds and full fee paying students, other student contributions rents received from commercial tenancies, general income arising from sales of goods and services, and other income.

The University's recurrent funding is held in the R Fund, which is a distinct and separate segment of the University's General Ledger.

Recurrent expenditure

The recurrent expenditure is also held in this fund and is summarised into the following classifications for internal reporting:

  • Salaries and related costs
  • Equipment - capital
  • Equipment - non-capital
  • Scholars expenses
  • Other expenses
  • Travel, field and survey
  • Expendable research materials
  • Contingency

Transfers of R fund monies to Q funds

The University's position on recurrent (R) to special purpose fund (Q) transfers is they should not occur. This position stems from a "decree" by the Director of Finance & Business Services, rather than being included in a particular ANU policy or procedure. In general when such transfers occur it indicates a School/department is potentially overfunded and does not require that portion of the recurrent allocation, in which case appropriate information would be passed to the Office of the Vice-Chancellor.