Symposium April 2015 Agenda General overview of RCM Overview of the model and UA budget composition 2 General Overview of RCM 3 RCM Basics How is an RCM budget different than the current budget system ID: 509780
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Slide1
UAccess
Symposium
April 2015Slide2
Agenda
General overview of RCM
Overview of the model and UA budget composition
2Slide3
General Overview of RCM
3Slide4
RCM Basics
How is an RCM budget different than the current budget system?
Incremental
Activity Based Budgeting
Revenue associated with tuition flows to colleges
Expenses associated with activity flows to colleges
4Slide5
The Fundamentals of
RCM
Most importantly:
Decision making should incentivize higher quality
programs
, innovation, flexibility, efficiency,
and equitable
resource allocation
.
As measured through mission-driven metrics: Completion rates, degrees awarded, time to degree, faculty and student productivity, student placements, etc.
Values
Success of College Management under RCM is evaluated here
5Slide6
Guiding
Principles
Strategic PlanIncentivesMinimize Negative OutcomesBalance RCUs & UA
Transparency
Matching Revenues to Associated Costs
Simplicity
Predictability
Adaptability
Central Funds InvestmentDataRisk Communication Leadership6GovernanceSlide7
What is an RCU?
Responsibility Center Units are either:
Revenue Units
or
Support
Center Units
Revenue Units
Colleges
Auxiliary UnitsSlide8
What is an RCU?
Responsibility Center Units are either:
Revenue Units or
Support Center Units
Support Center Units
Research and Public Service
Administration
Student Support
FacilitiesSlide9
Overview of the
RCM Model
and UA/College Budget Composition
9Slide10
Annual Marginal Changes in Funding
:
State Funds
Tuition
Administrative Service Charge
Indirect Cost Recovery (75%)
Central Administration
Colleges Budget Base
Support Units Budget Base
Facilities Cost Budget
Marginal Changes to Base
BudgetsCurrent Incremental Budget
Process
10Slide11
UA Budget
- State General Funds
- Tuition
- Differential Tuition
- Program Fees
- F&A Recovery
(100% less VPR/ORD costs and Research Investments)
Colleges
-RCM Allocations
-Subventions
-Sponsored Activity-Course fees-Outreach-Summer Session-Philanthropy-Sales and ServiceSupport Units and Institutional Costs-Subventions-Mandatory Fees-Other Misc. Fees-Auxiliaries-PhilanthropyRCM Budget Process
Subventions
Auxiliaries
Administrative Service Charge
Facilities
Cost Assessed based on Net Assignable Square Footage
Strategic Fund & Support Unit Cost Allocations
Allocations
Subventions
Strategic Investments
11Slide12
College Revenue
RCM Allocation
Undergraduate Tuition
Graduate Tuition
Differential Tuition
Program Fees
Revenue associated with Sponsored Activity:
F&A (ICR)
Subvention
Direct Revenue
Summer SessionOutreach College/AI&SSPhilanthropySales & ServiceAuxiliariesSlide13
"Old" Budget System
Direct revenues
$ 1,000,000
UA budget allocation
$ 19,000,000
RCM Allocated revenue
Subvention
Total revenues
$ 20,000,000
Direct expenditures
$ 20,000,000
Allocated expenditures
Total Expenditures
$ 20,000,000
Net
$
0
Transition of Budgets to RCM
13
"Old" Budget System
RCM
Direct revenues
$ 1,000,000
$ 1,000,000
UA budget allocation
$ 19,000,000
RCM Allocated revenue
$ 16,000,000
Subvention
$ 13,000,000
Total revenues
$ 20,000,000
$ 30,000,000
Direct expenditures
$ 20,000,000
$ 20,000,000
Allocated expenditures
$ 10,000,000
Total Expenditures
$ 20,000,000
$ 30,000,000
Net
$
0
$
0 Slide14
Model Assumptions: Revenue
Undergraduate revenue is pooled and allocated to colleges: 75% SCH / 25% Majors
Graduate revenue is allocated by student to colleges: 75% Majors / 25% SCH
GIDP Students allocated 100% SCH
Graduate allocations are not weighted (as a consequence of being done on a student-by-student basis)
F&A Allocated 100% to colleges
Less proportionate share of SVPR operations
Less proportionate share of Research Investment FundSlide15
RCM Revenue Components
15Slide16
RCM Revenue Allocations
16Slide17
Expense
Components
Support Center Units
President’s Office
Academic Affairs & Provost
University Information and Technology Services (UITS)
Human Resources
University Libraries
Business Affairs (Non-Facility Related)
Institutional Support
University InsuranceBank FeesCosts associated with Support Centers & Institutional Support
Office of Research and Discovery (SPS, CRS, Compliance Units)
Student
Support (Student Affairs, Honors College, Graduate College)Distributed Education (Outreach, UA South, Global Initiatives)Slide18
Expense Components Continued
Cost
Associated with Space
Facilities
Management
Strategic Investment FundSlide19
RCM Expense Components
19Slide20
RCM Expense Allocation
20Slide21
College Budget Composition: ENGR
21Slide22
College Budget Composition: EDUC
22Slide23
http://rcm.arizona.edu
23