Research Income – Potential for inclusion of Joint Venture Income.docVIP

Research Income – Potential for inclusion of Joint Venture Income.doc

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Research Income – Potential for inclusion of Joint Venture Income

DEST HERDC Research Income (2006 Collection) – Potential for inclusion of Joint Venture Income Background The commonwealth Department of Education, Science Training (DEST) uses the Higher Education Research Data Collection (HERDC) to measure university research income. The HERDC research income figures are used as the principal determinant of research block grants allocated back to universities. This year, DEST have modified the HERDC rules by opening up the possibility of including earnings from Joint Ventures in university’s research income returns. Joint Venture Income Eligibility The rules surrounding the inclusion of JV income are set out below. There must be a formal JV Contractual Agreement stipulating the notional distribution of income between the venturers. The evidence to support the university’s notional share of JV income can take the form of: a contract between the venturers or minutes of discussions between the venturers or an agreement incorporated in the articles or other by-laws of the joint venture. The income does not have to come through the University’s financial system to be included. However, strict evidence (as described above) is required to substantiate the claim of JV income. The only income that can be claimed is that provided by sources external to the JV. That is, contributions by the venturers themselves cannot be claimed. The JV agreement and documentation stipulating the share of funds must be retained by the University and be submitted to DEST upon request. If universities make a false or misleading claim with regard to JV income, they risk losing all the income within that category of their HERDC submission. This would have severe implications for the block grant allocations that HERDC informs. DEST Guidelines: The following material has been extracted directly from the HERDC specification as provided by DEST. Note, HEP = Higher Education Provider. Definitions: Joint Venture A joint venture is a contractual arrangement whereby tw

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