INTRODUCTION
Decentralized Budgeting-Responsibility Center Management (RCM)
Vision, Goals, and Principles of RCM
Vision
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Guided by clear strategic plans and priorities and strong academic governance mechanisms, the University community will remain inter-connected and unified, and all units will operate in furtherance of University goals.
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Each budgetary unit at UNH will have its own designated revenue stream.
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Each unit will be responsible for managing its full costs within the limits of its total resources.
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Each unit will benefit directly from its initiatives that increase revenue and/or operating efficiencies.
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The focus of financial management will be on all funds; education and general, internally designated, auxiliary, and restricted funds.
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The University will maintain a central fund (the University Fund) to support the University, reward excellence and uphold the Institution's mission.
Goals
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To enhance resource generation and management effectiveness by placing financial authority & accountability and risk & reward at the appropriate local level.
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To simplify budgetary procedures and decisions by reducing layers of institutional involvement.
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To improve the quality of budget forecasting and financial planning by requiring unit-level plans and monitoring performance against those plans.
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To free the time of institutional leaders from relatively immaterial financial decisions in order that they can focus on strategic financial issues.
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To clarify the financial condition of the University and its units by presenting financial data in clear, consistent, and transparent formats to a wide audience.
Principles
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Strong governance and planning mechanisms must be in place to ensure that the budget model is wisely used as a tool, and does not become an end in itself.
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The budget model should be as simple as possible to promote easy comprehension and efficient administration.
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The budget model should produce results that are widely perceived as fair and in keeping with the core values of the institution.
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The budget model should encourage behaviors on the part of faculty and staff that support the institution’s mission and priorities.
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The budget model should centralize only those activities where institutional consistency is imperative or where there are material economies of scale.
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The budget model should provide for formal input from users into the service levels and costs of central services.
