Research and Consulting Incentives Policy

This policy applies to all University academic staff members who are involved in research and consulting activities.

To provide direction and guidance for the distribution of resources arising from research and consulting.

The University requires a policy framework to incentivise Principal Investigators (PI’s) to win grants/contracts and deliver research outcomes which support the University’s research strategy, and to incentivise other parts of the University/UniServices to support that process.

The incentives are intended to:

• recognise that resources need to be shared fairly to incentivise the various parties involved
• generate the resources required to provide continuation for, or investment in, larger research groups and ongoing research activities
• recognise that research should not be an excessive drain (through cross-subsidy) on teaching.

Note - This policy should be read in conjunction with the policy on “Outside Activities Undertaken by Academic Staff”. In particular, academic staff should note the requirement to obtain prior written approval of the academic head for all professional or academic activities undertaken within the scope of that policy.

1. This policy is to be effective with respect to contracts signed on or after 4 April 2018.

2. Contracts signed prior to 4 April 2018 are to be accounted for in accordance with the prior policies and practices.

3. With respect to arrangements in any HoD agreements signed prior to go-live where the contract is not entered into until after 4 April 2018 the distribution is to comply with the terms of the HoD agreement.

4. Research and consulting project resource distributions are to be made consistently across all faculties/Large Scale Research Institutes in accordance with the 6 scenarios outlined below.

Note – please see Research and Consulting Incentives Decision Tree for assistance in determining which project funding scenario to apply.

Research projects

5. In terms of this policy two possible research project funding scenarios may apply:

Scenario R1:

The first scenario to be considered is that in which the PI does not already have his/her salary fully funded (e.g. they are funded through grants and contracts but those grants and contracts do not cover their full salary). In that case, the distribution of resources is to be:

Table 1: Research - PI salary not already fully funded, no buyout

¹ In tables 1-4, overheads are calculated as 115% of academic time included in the budget for the grant or contract.

² Profit is generally only applicable for commercial research projects and consultancy projects.

³ Rules for underspends over $10,000 are set out in the Balances of Research Project Accounts at Project End Policy.

The rationale for the resource distribution in Scenario R1 is that:

• Overhead Recoveries contribute to the costs of local support in faculties and to the faculty contribution to University central costs (e.g. Library, research policy/ethics, IT, HR, scholarships) consistent with the University Overhead Charging Policy.
• The PI time charge (actual cost) is distributed 100% to the department/school to support the salary of the PI.
• Equipment and technical time, and consumables and direct people costs, are expended by the PI to support the direct costs of undertaking the research.

Profit (applicable typically to commercial projects only) and underspend is available to be distributed only after fully satisfying the funder requirements, if any. Funds available in excess of $100 and up to $10,000 to be distributed to the PI (via the Research Development Account) after meeting funder requirements, if any, for investment in enhancing research capability. Surpluses above $10,000 to be split 80% to the PI (via the Research Development Account) and 20% to the relevant faculty administration account.

Note – In some circumstances funder contractual terms require underspends to be spent on an agreed program of work. These funds are not available to be distributed in accordance with the policy as the contractual requirement for the use of these funds has not been met. In these circumstances, a request for internal extension should be sent to ROC. Further guidance on internal extension process can be found on ResearchHub - Internal Extension.

Scenario R2

In the second research scenario, the salary of the PI is already being met from other sources (e.g. the Teaching and Research budget of their academic unit or fully from other research grants and contracts).

With the prior agreement of their academic head, the PI has included in the budget funding for their time that will allow them to be bought out of some of their duties. Here the distribution of resources is to be as per Table 2.

Table 2: Research - PI salary fully funded, bought out of some duties

¹ In tables 1-4, overheads are calculated as 115% of academic time included in the budget for the grant or contract.

² Profit is generally only applicable for commercial research projects and consultancy projects.

³ Rules for underspends over $10,000 are set out in the Balances of Research Project Accounts at Project End Policy.

The distribution in Scenario R2 is the same as in Scenario R1 except that the PI time charge is distributed: 60% to the department/school to support buyout of the academic from some existing duties; and 10% and 30% to the faculty and PI (via the Research Development Account) respectively for investment in enhancing research capability.

Consulting Projects

6. In terms of this policy, one of four possible consulting project funding scenarios may apply each of which result in particular distribution of resources.

Scenario C1

As in scenario R1, the PI does not already have his/her salary fully funded. In that case, the distribution of resources is to be as per Table 3 (which is similar to Table 1):

Table 3: Consulting - PI salary not already fully funded, no buyout

¹ In tables 1-4, overheads are calculated as 115% of academic time included in the budget for the grant or contract. 

² Profit is generally only applicable for commercial research projects and consultancy projects.

³ Rules for underspends over $10,000 are set out in the Balances of Research Project Accounts at Project End Policy.

Scenario C2:

The PI and academic head agree that the PI will be bought out of some activities in order to take on the new consulting activity. This allocation is to be as shown in Table 4, which is similar to Table 2.

Table 4: Consulting – PI salary fully funded, bought out of some duties

¹ In tables 1-4, overheads are calculated as 115% of academic time included in the budget for the grant or contract.

² Profit is generally only applicable for commercial research projects and consultancy projects.

³ Rules for underspends over $10,000 are set out in the Balances of Research Project Accounts at Project End Policy.

In the final two scenarios, the PI takes on the extra consulting activity under the Outside Activities Undertaken by Academic Staff Policy and Procedures.

Because the extra consulting activity is agreed by the academic head to be additional to normal duties, there is no substitution of duties (i.e. buyout). Here a more simple approach to overheads and profit-sharing will be applied with an overhead/profit share charge levied on the total contract price.

Scenario C3:

The PI takes on the extra consulting activity under the Outside Activities Undertaken by Academic Staff Policy and Procedures and elects to have a share of the revenues paid into their Research Development Account.

Because there is no substitution of duties, the PI time funding goes 100% to the Research Development Account of the PI. A charge of 30% of the total contract price will be levied to meet University requirements to meet overhead costs. The allocation is set out in Table 5.

Table 5: Consulting - PI takes on extra consulting activity under Outside Activities Undertaken by Academic Staff Policy and Procedures no substitution of duties and elects to have a share of the revenues paid into their Research Development Account

Scenario C4:

The PI takes on the extra consulting activity under the Outside Activities Undertaken by Academic Staff Policy and Procedures with no substitution of duties and elects to have a share of the revenues paid personally (after normal deduction of tax). Such revenues would typically not be counted as University performance for purposes such as promotion.

Because there is minimal benefit to the University, the share of profit to PI (personal payment) is reduced in favour of the share to the faculty through a 40% rather than 30% overhead rate. This allocation is set out in Table 6.

Table 6: Consulting – PI takes on the extra consulting activity under the Outside Activities Undertaken by Academic Staff Policy and Procedures with no substitution of duties and elects to have a share of the revenues paid personally.

Classification of academic staff on research and consulting projects

7. All academic staff named on research and consulting projects must have their incentive classification recorded on the budget template that is approved by the academic head as part of the budget approval process.  

The following definitions apply to this document:

Academic time / PI time refers to the actual cost before any overheads or multipliers are applied.

Consulting is the utilisation or manipulation of existing knowledge to provide expert advice. The answer to the question may be known or able to be deduced, calculated or otherwise determined from the current state of knowledge.

Research is original, independent investigation undertaken to contribute to knowledge and understanding and, in the case of some disciplines, cultural innovation or aesthetic refinement. Research typically involves inquiry of an experimental or critical nature driven by hypotheses or intellectual positions capable of rigorous assessment by experts in a given discipline.

Staff member refers to an individual employed by the University on a full or part time basis.

University means the University of Auckland and includes all subsidiaries.

Include the following:

• Conflict of interest Policy
• Conflict of Interest Procedures
• Outside Activities Undertaken by Academic Staff Policy and Procedures
• Research Development Accounts Policy
• Research and Consulting Incentives Decision Tree
• Research and Consulting Incentives Policy FAQ's
• Information available on Head of Department (HoD) accounts/ Research development accounts

Owner:  Deputy Vice Chancellor Research
Content manager:  Director Office of Research Strategy and Integrity
Approved by:  Vice-Chancellor
Date approved:  1 September 2022
Review date:  31 July 2027