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University of New Hampshire

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

beverly-wilkins
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University of New Hampshire

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  1. University of New Hampshire Responsibility Center Management Update

  2. 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

  3. 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

  4. RCM Principles • 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.

  5. Budgetary/RC Units

  6. Revenue - Tuition - Indirect Cost Recovery - State Appropriation Revenue - Direct Revenue (Grant, Gift, Sales, Fees, etc.) Central Budget RC Units Committee - Academic - Incremental funding - Research decisions - Auxiliary - $750k University Fund allocation - Service Unit Advisory Board subcommittee to review Service Units if necessary Direct Expense Institutional Overhead - Salaries, Wages & Benefits - Facilities - Support - CIS - Debt service - Student Affairs - VP Research - General Admin - Academic Affairs Resource Flows at UNH

  7. 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”

  8. 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.

  9. 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

  10. More Information • Please go to RCM Website at www.unh.edu/rcm or contact David Proulx at david.proulx@unh.edu

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