Transparent Approach to Costing
The Transparent Approach to Costing (TRAC) was introduced in 2000 and is the standard methodology used by higher education institutions (HEIs) in the UK for costing their activities. It was established as an approach to identifying the full economic costing of all activities to improve the accountability for the use of public funds and inform institutional decision-making.
Governance of TRAC
TRAC is governed through two tiers that cover high level areas of policy and its broader development.
Financial Sustainability Strategy Group
The Financial Sustainability Strategy Group (FSSG) is a high level forum established to consider the strategic, policy, cultural and technical issues around the use and development of TRAC. Further information on the group is available on http://www.hefce.ac.uk/finance/fundinghe/trac/fssg/
In June 2011 the FSSG published a report entitled Assessing the sustainability of higher education institutions. The report describes the findings of a UK-wide study to develop indicators of institutional sustainability.
TRAC Development Group
The TRAC Development Group (TDG) considers developmental issues and supports the use of TRAC in understanding and managing financial sustainability.Further information on the group is available on http://www.hefce.ac.uk/finance/fundinghe/trac/tdg/
TRAC Guidance
Consolidated TRAC guidance is available on the Joint Costing and Pricing Steering Group (JCPSG) website at http://www.jcpsg.ac.uk/guidance/about.htm
Revisions to TRAC Guidance from July 2006
Details of the revisions, including changes to the cost adjustments, are available on the JCPSG website at http://www.jcpsg.ac.uk/guidance/revisions/
TRAC Support Unit
The TRAC Support Unit provides a range of support services for TRAC. Further details of this service can be found on the HEFCE website at http://www.hefce.ac.uk/finance/fundinghe/trac/
Annual TRAC 2009-10
TRAC data is collected annually from HEIs and Circular SFC/34/2010: Transparent Approach to Costing (TRAC) returns for academic year 2009-10 requested this information for 2009-10.
The summary TRAC results for the Scottish HEIs can be found in Scottish sector totals transparency review reporting 0809 [PDF]
The data indicates an overall deficit in the Scottish sector of £154 million (5.54% of income) for 2009-10 compared to a deficit of £180.4 million (6.8% of income) for 2008-09.
The TRAC deficit is calculated on the full economic cost of activities, after adjustments for
infrastructure and for the return on financing and investment (RFI). The infrastructure adjustment, which reflects the full long term costs of maintaining infrastructure in a productive condition, is 2.39% (2008-09 - 2.34%) of total expenditure. The RFI adjustment is to cover rationalisation, updating and development of future productive capacity plus the costs of raising and servicing capital. This adjustment is 4.86% of total expenditure (2008-09 - 5.04%).