Budgeting for Research Centres and Major Groups, Part 1: Key Concepts

Do you manage the discretionary budget for a large research group or centre? If yes, then you know budgeting can be a challenging yet crucial aspect of your work. ⠀

My most recent Hacking Academia release walks through the theory and practical aspects of budget management for research entities like a centre.

In Part 1, we dive into key concepts that shape how you manage a budget, explore how funding amounts, time spans, and restrictions can affect your decision-making, and discuss ways to respond to unexpected costs. We also delve into the nuances of over and under spending, and the importance of indexing and leveraging your funds.

Whether you’re a seasoned veteran or new to managing large budgets, this video will provide valuable insights and possibly overturn some budgeting wisdom you may have learned as a child.

Stay tuned for Part 2, where I’ll discuss potential spending categories you might consider allocating to a center budget.

As always, I appreciate your engagement and look forward to your comments, questions, and experiences.

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Timestamps are as follows:

 (0:00) Introduction to Budgeting for Centres
 (0:08) Introduction to Discretionary Funding
 (0:30) Discretionary Budgets Enable Many Opportunities
 (0:41) Managing Larger Budgets Can be Daunting
 (0:44) Many People Receive Little Formal Budget Training
 (0:55) These Videos Cover Concepts and Budget Examples
 (1:11) Many Budget Concepts Are Common to Most Contexts
 (1:26) This Video Covers Key Budget Concepts and Issues
 (1:35) Key Factor: Budget Size
 (2:03) Small Budgets Necessitate Co-Funding
 (2:24) Larger Budgets Can Enable Staffing
 (2:40) Large Events and Equipment Purchases
 (2:57) Key Concept: Budget Timeline and Uncertainty
 (3:27) Prioritising Amidst Uncertainty
 (3:54) Ability to Make Future Co-Funding Commitments
 (4:06) The Vital Importance of Indexing
 (4:28) Indexing Example
 (5:03) Volatility in Expenses
 (5:08) Salaries Are Relatively Predictable
 (5:14) More Volatile Expense Categories
 (5:20) Examples: Travel and GPU Costs
 (5:42) Lots of Factors Can Drive Price Volatility
 (5:53) Things Can Get Cheaper Too!
 (6:01) Expenditure Restrictions
 (6:18) Examples of Expenditure Restrictions
 (6:37) Key Concept: Underspending and Overspending
 (6:46) Some People Have Learnt a Tendency to Save and Underspend
 (6:59) Underspending Can Be Counterproductive
 (7:13) Large Overspends Are Of Course Bad
 (7:21) Be Wary of Excessive Hoarding of Funds – They May Disappear
 (7:33) Funding Roll Over Is Not Always Possible
 (7:45) Co-Funding Can Stretch Limited Budgets Further
 (8:03) Example: Partial Funding of Work Travel
 (8:22) Make Sure Funding Schemes Don’t Exacerbate Inequities
 (8:33) Leverage Both External and Internal Co-Funding
 (8:40) Internal Co-Funding Examples: Grants and Equipment
 (8:49) Reality Often Doesn’t Match Budget Plans
 (8:57) The Timing of When Expenses Hit Your Accounts
 (9:10) Example: Equipment Charge Delays
 (9:32) Large Expenses Missing Their Planned Year
 (9:41) Expenses Can Sometimes Be Routed Via Other Accounts
 (10:06) Completely Unexpected Charges
 (10:24) Retaining a Strategic Reserve
 (10:36) Example: Unexpected Strategic Opportunities
 (10:52) A Strategic Reserve Needs Rollover
 (11:04) Recap: Discretionary Budgets Enable Lots of Opportunities
 (11:20) A Steep But Worthwhile Learning Curve
 (11:29) Video Recap and Preview of Part 2