3.1The ERI measure accounts for 15 percent of the total funds allocated through the PBRF each year. ERI is included as a performance measure in the PBRF on the basis that it provides a good proxy for research quality. The underlying assumption is that external research funders are discriminating in their choice of who to fund, and that they will allocate their limited resources to those they see as undertaking research of a high quality.
3.2ERI is defined as the total research income received by a TEO (and their wholly-owned subsidiaries), excluding income from:
3.4TEOs that participate in the ERI measure submit returns annually to the TEC showing the amount of PBRF-eligible ERI they have earned for the 12 months ending 31 December of the preceding year. A declaration signed by the TEO’s Chief Executive, as well as an independent audit opinion, is provided to the TEC to support each ERI calculation. If the total ERI is less than $200,000, the TEO is permitted to submit its worksheets in lieu of an independent audit opinion.