European University Association

The European University Association (EUA) represents and supports over 850 institutions of higher education in 47 countries, providing a forum for cooperation and research and development of higher education and research policies.  (European University Association, n.d.)

“The Association’s mandate in the Bologna process, contribution to EU research policy-making and relations with intergovernmental organizations, European institutions and international associations, ensure its capacity to debate issues which are crucial for universities in relation to higher education, research and innovation.”  (European University Association, n.d.)

In 2008, the EUA commissioned a report entitled, Financially sustainable universities:  Towards full costing in European universities.  This report was commissioned based on the experience in the United Kingdom, where their Transparent Approach to Costing  (TRAC) system revealed that the vast majority of research funding in the UK was not covering the full costs of the research being undertaken at UK universities. (European University Association, 2008)

Some of the key findings of the report include two important institutional obstacles to implementing full costing:  resistance towards change as well as resistance towards a managerial approach in universities.  External obstacles identified included the high costs involved as well as a potential strain on institutional resources as well as a risk of systems becoming two complicated.  The report also suggests that activity based costing is a useful method that provides common principles and flexibility; and that different full costing methodologies can lead to the same results. (European University Association, 2008)

The report makes many recommendations, which include the following (not necessarily in order): (1) methodology of full costing should be adapted to the needs of universities; (2) costing systems needs to remain flexible and take account of diverse needs, structures and contexts; (4) national governments should grant universities autonomy to act independently (5) balance the need for accountability with less complexity of the information required in competitive funding schemes.  (European University Association, 2008)

European University Association (n.d.). EUA at a glance. Retrieved October 22, 2011, from http://www.eua.be/about/at-a-glance.aspx

European University Association (2008). Financially sustainable universities:  Towards full costing in European universities. Brussels, Belgium:  Retrieved from http://www.eua.be