A Task Group was created to consider the financial sustainability of research undertaken in universities and other institutions of higher education in the United Kingdom. The UK has a very successful Higher Education sector across all key areas of activity, but it is vital that the sector reinvests for the future and is transparent in the use of public funding so as to ensure the long-term financial sustainability of the sector. The researchers' task has been to assess the state of research funding, to reflect on whether the sector is using the funding to ensure sustainability and whether higher education institutions are efficient and economical in their use of public funding. The Task Group has reviewed the background to the financial status of the UK HE sector, the visibility provided by TRAC (Transparent Approach to Costing) and the role played by the move to funding research projects based on full economic costs. The Task Group confirms the importance of higher education being transparent and effective in the use of public funds and also recognises that the UK has a very successful HE sector across all key areas of activity. The Task Group fully endorse the work of the TRAC Development Group and stresses the need for those at a senior level in institutions to fully engage in this process. The Task Group has considered the pressures on costs and financial sustainability and also the effectiveness and efficiency of UK HEIs. As a result of this review they propose several recommendations which will provide a coherent approach going forwards to enhance and incentivise the optimal and effective use of resources provided through fEC within HEIs. Annexed are: (1) Terms of reference for Task Group; (2) Key messages on TRAC; (3) Trigger Metrics; and (4) Glossary. (Contains 4 figures, 5 tables and 66 footnotes.)