University of New Hampshire

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University of New Hampshire

• Responsibility Center Management Update

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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

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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 Universitys 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

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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 institutions
  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.

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Budgetary/RC Units
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• Resource
• Flows at
• UNH

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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

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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.

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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

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More Information

• Please go to RCM Website at www.unh.edu/rcm or
  contact David Proulx at david.proulx_at_unh.edu