Transcript University of New Hampshire RCM 5 Year Review

University of New Hampshire
Responsibility Center Management Update
Overview
• We strive to have all financial decisions support the goals laid out in
the Academic Plan
• UNH employs a system of shared financial governance with
transparency, accountability and participation being the key
ingredients for success.
• Our management structure requires engagement and financial
expertise at the local level – budgetary (responsibility center) unit
heads and Business Service Center (BSC) Directors (which work in
the budgetary units) are key players.
• All funds approach to financial management is necessary at all
levels of management
• Central offices serve in an oversight, big picture role
Responsibility Center Management (RCM)
• RCM implemented at UNH on July 1, 2001 after three years of
feasibility study
• It was implemented as a tool to help UNH manage its resources
in a manner to meet the goals outlined in the University’s
Academic Plan
• Informs management of financial impact of decisions
• Makes explicit where revenues go and how they are spent
• Promotes accountability at all levels of management
• RCM has been subject to a formal review, recently completed
which has resulted in some changes to the model
• UNH has been approached by many national and international
institutions for advice and consult on this subject
RCM Principles
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It should be as simple as possible to promote easy
comprehension and efficient administration.
It should produce results that are widely perceived as fair
and in keeping with the core values of the institution.
It should encourage behaviors on the part of faculty and
staff that support the institution’s mission and academic
plan.
It should have strong governance and planning mechanisms
in place to ensure that it is wisely used as a tool and does
not become an end in itself.
Budgetary/RC Units
Colleges and Related Service Units
Research and Public Service Units
 College of Life Sciences and
Agriculture
 College of Liberal Arts
 College of Engineering and Physical
Sciences
 Whittemore School of Business and
Economics
 School of Health and Human Services
 UNH – Manchester
 Library
Student and Community Life Units
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Cooperative Extension
Research and Public Service
New Hampshire Public Television
Institute for Earth, Oceans and Space
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Governance, Advancement and
Infrastructure Units
Facilities Services
Computing and Information Services
General Administration
Academic Affairs
Student Affairs
Housing
Hospitality Services
Intercollegiate Athletics
Whittemore Center Arena
Revenue
Resource
Flows at
UNH
- Tuition
- Indirect Cost Recovery
- State Appropriation
Revenue
- Direct Revenue (Grant,
Gift, Sales, Fees, etc.)
Central Budget
Committee
RC Units
- Academic
- Research
- Auxiliary
Direct Expense
- Salaries, Wages & Benefits
- Support
- Debt service
- Incremental funding
decisions
- $750k University Fund
allocation
- Service Unit Advisory Board
subcommittee to review
Service Units if necessary
Institutional Overhead
- Facilities
- CIS
- Student Affairs
- VP Research
- General Admin
- Academic Affairs
RC Unit Resource Flows
• Units receive direct revenues (fees, grants, gifts,
etc) as well as applicable allocated revenues (net
tuition, state appropriations, indirect cost recovery,
Central Budget Committee allocations)
• Units are responsible for direct expenses (salaries,
wages, fringe benefits, support) as well as indirect
expenses (facilities, general and academic
overhead)
• Unspent funds at end of year are allowed to drop to
a unit “reserve”
RCM 5 Review Results - Summary
• RCM has widespread support from the campus community
• RCM should be reviewed in 5 years
• Central strategic initiatives fund has been established and is funded via
assessments to RC units.
• Qualitative and quantitative data suggest that the RCM model has not affected
academic quality, despite widespread perceptions around the University to the
contrary.
• There is concern and some evidence that the model provides insufficient
financial incentives for outreach and engagement activities. Few mechanisms
in place to gather data/facts. Warrants further exploration and attention.
• RCM is perceived as having negatively impacted interdisciplinary
collaboration by creating disincentives for faculty and units to foster
interdisciplinary teaching and research. Few mechanisms in place to gather
data/facts. Warrants further exploration and attention.
• Sufficient unit input exists to central administration for central decisions
• A transitional allocation called the Hold Harmless allocation provided to each
unit, will cease to exist in FY08 and be reallocated in the form of a strategic
investment by the President.
Benefits of RCM
• Improved access to courses
• Strategic and financial planning done at various levels of
institution
• Greater awareness of University and local financial status
• Accountability at all levels of UNH
• Increased reserves
• Increased efficiency and productivity
• Consistent quality of services – resources allocated based on
activity and demand
More Information
• Please go to RCM Website at www.unh.edu/rcm or contact
David Proulx at [email protected]