RCM Allocation Models

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3. RCM Allocation Models

3.1 RCM Allocation Summary

3.1.1 Current Allocation Methodology - Summary
REVENUE
Facilities and Administrative (F&A) Recovery

Link to Updated F&A Policy - Approved 12/07

Revenue allocated to units broken down as follows:
82% directly to unit(s) that receives award*
10% to PI named in grant document
5% to VPR
3% to UNH VPR Strategic Funding

Unit, VPR and the Strategic funds allocated on a real-time basis, while PI funds allocated equal to 10% of prior calendar year results.

* - for grants where a PI resides in a unit other than the unit that received the grant, the suggested breakdown of the 82% is as follows (these percentages are subject to negotiation among units):

Research faculty – faculty home unit receives 6% and grant host unit receives 76%
Formula funded faculty – faculty home unit receives 18% and grant host unit receives 64%
Instructional faculty – faculty home unit receives 30% and grant host unit receives 52%

State Appropriations
• ~28% allocated to primary allocation units (PAU's) – these are Agricultural Experiment Station, Cooperative Extension, Marine Program, UNH-Manchester, NHPTV and the IRCC
• ~5% allocated to Library
• ~22% designated for the University Fund which is intended for new initiatives and to stabilize a unit that is critical to the institution but is not in the economic position to achieve a breakeven budget after showing success in entrepreneurial efforts; also used for “hold harmless” funding as a means to balance unit budgets during the transition to RCM and modifications to the budget allocations in the RCM 5-year reviews.
• ~45% allocated to academic and research units based on their share of total weighted faculty salaries (including graduate students and extension faculty). Faculty salaries funded by general funds weighted at 1.0; all others weighted at .5 with the exception of graduate students which remain at 1.0 regardless of funding source.

Other Revenue
• Flows directly to unit that incurs the expenses which generate the revenue.
• Includes auxiliaries, internally designated revenues, gifts, endowment payouts, grants, etc.

Tuition and Financial Aid (net tuition)
Undergraduate Academic Year:
• Net tuition is defined as gross tuition revenue, including overload fees, less institutional (educational and general fund) financial aid
• 2.5% of undergraduate gross tuition allocated to the Library.
• 2.5% of undergraduate gross tuition allocated to Academic Affairs.
• 15% of prior year gross undergraduate tuition revenue generated by non-matriculated students (except CGPS graduate students) taking credit courses taken off the top of total undergraduate gross tuition and allocated to Academic Affairs.
• 100% of the remaining undergraduate net tuition allocated to units based on the proportion of average, weighted credit hours taught:

- Credit hour averaging based on prior two calendar years' activity. This is employed to smooth out the effects of enrollment changes.
- CEPS undergraduate credit hours weighted at 1.5 and COLA at .8 to reflect differential costs of instruction. COLSA, WSBE and SHHS credit hours weighted at 1.0.
- Intercollege (INCO) course credit hours assigned to the RC unit teaching the course.
- Through FY07, exchange programs revenue is credited directly to the program and the related credit hours are excluded from the undergraduate tuition allocation. Beginning in FY08, special program credit hours, including ESL and study away programs, will be added to the credit hour allocation base.
- No distinction made between in-state and out-of-state tuition

• Differential tuition is directly credited to major/home college and is net of the 2.5% Academic Affairs and 2.5% Library adjustments.

Undergraduate Summer:
• 2.5% of summer gross tuition allocated to the Library.
• 2.5% of summer gross tuition allocated to Academic Affairs.
• 15% of prior year gross summer tuition revenue taken off the top of total summer gross tuition and allocated to Academic Affairs.
• 100% of the remaining undergraduate summer tuition revenue allocated to units based on weighted credit hours taught – weightings are 1.5 for CEPS, .8 for COLA and 1.0 for COLSA/WSBE/SHHS.

Graduate Academic Year– non Center for Graduate and Professional Studies:
• 2.5% of graduate gross tuition allocated to the Library.
• 2.5% of graduate gross tuition allocated to Academic Affairs.
• 100% of remaining tuition allocated to school/college where student is matriculated
• Graduate master’s fees, doctoral fees, overload fees and graduate continuing fees follow same methodology as graduate tuition.
• 100% of graduate financial aid (teaching assistantships, graduate scholarships and project assistantships) charged directly to unit where student is enrolled
• Differential tuition is directly credited to major/home college and is net of the 2.5% Academic Affairs and 2.5% Library adjustments.

Graduate Summer -non Center for Graduate & Professional Studies:
• 2.5% of summer gross tuition allocated to the Library.
• 2.5% of summer gross tuition allocated to Academic Affairs.
• 15% of prior year gross summer tuition revenue taken off the top of total summer gross tuition and allocated to Academic Affairs.
• 100% of the remaining graduate summer tuition revenue allocated to units based on unweighted credit hours taught.

Graduate –Center for Graduate and Professional Studies:
• 100% of graduate tuition allocated to school/college of matriculated student
• UNHM receives 10% of gross tuition revenue plus share of overhead expenses (calculated annually)
• Graduate School receives 7% of gross tuition revenue for Center for Professional Studies support.
• Academic Affairs receives 2.5% of gross tuition revenue for Center for Professional Studies support.

Non Credit:
• Academic Affairs receives all non-credit tuition income.

Interest Income
• Revenue allocated to Institutional Administration (Institutional RC unit)

EXPENSE

Personnel
• Direct expensed to unit where employed - salaries, wages AND fringe benefits

Facilities
• Business Affairs Auxiliaries (Housing, Dining, New England Center and Whittemore Center Arena) pay share of facilities services costs based on a contracted rate and agreement with Facilities Services.
• Remaining Facilities Services net costs distributed to all RC units (less Business Affairs Auxiliaries) on the basis of assigned Net Square Footage (NSF).
• NSF is defined as directly assigned space such as offices, classrooms, labs, etc. It does not include common space such as foyers, hallways, bathrooms, stairwells, attics or basements.
• Registrar controlled classroom space assigned to Academic Affairs
• All UNH-Durham units will contribute funding for 10% of the annual institutional R&R budget to support infrastructure and “greater good” projects.
• Exceptions to the Net Square Footage charges:

- Agricultural and Outlying properties pay a reduced NSF rate due to their location and levels of service provided.
- Student Affairs Auxiliaries are exempt from R&R charges because they pay those costs directly.
- UNHM and NHPTV pay a reduced NSF rate because they pay other costs directly (including utilities, maintenance, housekeeping, etc.)

General Assessment
This category of expense includes General Administration (VPFA Office, President’s Office, and support departments), Computing and Information Services (service departments only), Student Affairs (service departments only), the Office for Vice President for Research and Institutional RC unit (institutional revenues and expenditures such as insurance, legal expenses, etc), ½ of the Library budget, and Academic Affairs departments. These costs are allocated to all units based 50% on total adjusted revenues and 50% on total salaries/wages expense.

• Revenues and personnel expenditures are from all current funds (E&G, auxiliary, internally designated, restricted gift and grant funds)
• Adjusted revenues are defined as gross revenues less:

- grant revenues which are designated for subcontracts, financial aid, indirect costs and equipment
- revenues designated for debt service payments
– all funds - general fund financial aid
- university fund allocations
- endowment income
- cost sharing revenues

• Adjusted salary and wages are defined as gross personnel less graduate stipends
• UNHM, Cooperative Extension and NHPTV payroll and revenue are weighted at .5 due to their relatively lower reliance on central services as compared to other units.

Updated General Assessment Review Proposal

3.1.2 RCM Allocation Methodology – Historical View
The following chart outlines the changes to the historical RCM Methodology (FY01-FY06) as a result of the recommendations made in the 5 Year Review in FY06.

REVENUE

Revenue Category	Centralized System – Pre FY01	RCM System – FY01 – FY06	RCM System – FY07 and beyond
Undergraduate Net Tuition	Received by Central Administration and not reallocated	Library receives 2% of net tuition. DCE receives 15% of prior year non matriculated student tuition. Remainder allocated to academic units based on weighted credit hours taught. Averaged over 2 years and weighted based on expense per credit hour. INCO courses assigned to Academic Affairs. Special programs (ESL and study away receive gross tuition directly)	Library receives 2.5% of gross tuition. Academic Affairs receives 2.5% of gross tuition. 15% of prior year non matriculated student tuition allocated to Academic Affairs. Remainder allocated to academic units based on weighted credit hours taught. Averaged over 2 years and weighted based on expense per credit hour. INCO courses assigned to RC unit teaching course. Special program credit hours (ESL and study away programs) added to credit hour allocation base beginning in FY08.
Graduate Net Tuition	Most received by Central Administration and not reallocated. Some designated programs allowed to keep revenues	Library receives 2% of gross tuition. All remaining revenues directed to unit of matriculation. Financial aid the responsibility of unit of matriculation. Intercollege program (MA in Environmental Ed and PHD in NRESS) revenues flow to Graduate School. Administrative costs funded and remainder allocated to unit of instruction based on credit hours taught. Center for Graduate and Professional Studies revenues flow to unit of instruction. 10% allocated to UNHM and 7% allocated to Graduate School. Overhead allocation made to UNHM.	Library receives 2.5% of gross tuition. Academic Affairs receives 2.5% of gross tuition. All remaining revenues directed to unit of matriculation. Financial aid the responsibility of unit of matriculation. Intercollege program (MA in Environmental Ed and PHD in NRESS) revenues flow to Graduate School. Administrative costs funded and remainder allocated to unit of instruction based on credit hours taught. Center for Graduate and Professional Studies revenues flow to unit of instruction. 2.5% allocated to Academic Affairs, 10% allocated to UNHM and 7% allocated to Graduate School. Overhead allocation made to UNHM.
Summer Tuition	Net revenue allocated to units engaging in activity	2% of tuition allocated to Library. 15% of prior year revenues allocated to DCE. Remainder of tuition allocated to units based on weighted credit hours taught. Special programs (Math Institute, ESL, Writing Institute, Washington Internship) receive tuition directly.	2.5% of tuition allocated to Library 2.5% of tuition allocated to Academic Affairs. 15% of prior year revenues allocated to Academic Affairs. Remainder of undergraduate tuition allocated to units based on weighted credit hours taught including special undergraduate programs. Remainder of graduate tuition (including special programs) flows to directly to unit of instruction.
State Appropriations	Appropriation units receive designated share, remainder of revenue received by Central Administration and not reallocated	Program Allocation Units ( PAU’s) units receive designated share approximately 20% to Library 30% to academic and research units based on faculty salaries (excluding graduate students and extension faculty) remainder for hold harmless/strategic funds	PAUs receive designated share ~5% to the Library ~45% to academic and research units based on weighted faculty salaries (including graduate students and extension faculty). Faculty salaries funded by general funds weighted at 1.0. All others weighted at .5 except graduate students which remain at 1.0. Remainder for hold harmless/strategic funds
F&A Recovery New Policy Approved 12/07	13.5% to PI named in grant various percentages to research centers remainder to Central Administration.	13% to PI 66.5% to host unit of grant 18.5% to VP Research 2% to Library Unit share defaults for grants in units other than PI’s home unit: 5% home/62.5% host for research faculty 15% home/52.5% host for split funded faculty 25% home/42.5% host for instructional faculty	10% to PI based on prior calendar year 82% to host unit of grant* 5% to VP Research* 3% to Strategic Fund* Unit share defaults for grants in units other than PI’s home unit: 6% home/76% host for research faculty 18% home/64% host for split funded faculty 30% home/52% host for instructional faculty * Allocated using Real-Time method
Interest Income	Received by Central Administration	Received by Central Administration used to offset USNH costs	No change from RCM System FY01-FY06
Grants	Received by host unit of grant	No change from Centralized System	No change from Centralized System
Gifts	Received by unit designated in gift	No change from Centralized System	No change from Centralized System
Course fees	Received by unit offering course	No change from Centralized System	No change from Centralized System
Student Fees	Received by unit of activity	No change from Centralized System	No change from Centralized System
Auxiliary and other revenue	Received by unit of activity	No change from Centralized System	No change from Centralized System

EXPENSE

Expense Category	Centralized System – Pre FY01	RCM System – FY01 – FY06	RCM System – FY07 and beyond
Salaries and Wages	Funded by unit	No change from Centralized System	No change from RCM System FY01-FY06
Fringe Benefits	Funded by institution	Funded by unit	No change from RCM System FY01-FY06
Travel, Equipment and Supplies	Funded by unit	No change from Centralized System	No change from Centralized System
Facilities Services	Only charged to auxiliary units	Charged to most units based on net square footage occupied. Major auxiliaries pay based on consumption	Same as RCM System FY01-FY06 with the exception that all units share in institutional R&R funding
Institutional Overhead	Only charged to auxiliary units	Academic affairs assessment charged to academic units only. General assessment charged to all units. Both assessments allocated to units based on 50% personnel expenses (all funds) and 50% revenues (all funds). Revenues exclude: Transfers in University fund allocations Revenues for mandatory debt payments Grant revenues that fund equipment, financial aid, subcontracts and indirect cost expenses Endowment income	General assessment charged to all units (academic affairs assessment combined with general assessment) allocated to units based on 50% personnel expenses (all funds) and 50% revenues (all funds). Personnel expenses exclude: Graduate stipends Revenues exclude: Transfers in Financial aid University fund allocations Revenues for mandatory debt payments Grant revenues that fund equipment, financial aid, subcontracts and indirect cost expenses Endowment income
Depreciation	Charged to campus	No change from Centralized System	No change from Centralized System

3.1.3 RCM Accounting Under Banner Finance – Summary
REVENUE
Three revenue categories are allocated to RC units under RCM: Tuition, State Appropriation, and Indirect Cost Revenue (ICR). The VPFA Office budgets the anticipated revenue within each RC unit. Under RCM, UNH continues to record these revenues centrally in the same historical accounts which allows the data needed for USNH reports and historical review (i.e. in-state vs. out-of-state) to be captured. The revenues are allocated periodically by the VPFA office using the following framework, using a unique account that has been set up for each RC unit. This allocation within the unique account nets to zero among UNH and the central accounts have a balance of zero.

Tuition
The following tuition accounts are used:

• 513030 - Undergraduate
• 513020 - Graduate (Interdisciplinary)
• 513010 - Summer- Undergrad-Continuing Ed
• 513015 - Summer Session- Graduate

Unique accounts are used for the Center for Graduate and Professional Studies (CGPS) tuition:

• 510124/511124 Masters Business Administration
• 510126/511126 Masters Public Administration
• 510128/511128 Masters Social Work
• 510130/511130 Masters Public Health
• 510132/511132 CEPS
• 510134/511134 Masters Education
• 510140/511140 Masters Nursing
• 8I1072/8O1072 CGPS Non-Mandatory Transfers In/Out (used for tuition and overhead transfer to UNHM)

RCM distributed Tuition is recorded in central University accounts. The VPFA office distributes tuition periodically via the JV process, to RC units from a central fund org account during the year. Tuition will be allocated in September (Summer Session), November, March, and June but additional adjustments could be made, as information becomes available to update the tuition projections.

State Appropriations (Non Capital)
The following accounts are used:

• 520100 - State Appropriations – Faculty Salaries allocation
• 520130 - State Appropriations – PAU allocation
• University fund allocations:

- 520110 for hold harmless allocations
- 520120 for strategic allocations
- Some university fund allocations may flow through transfer codes when allocating to auxiliary units (8I1054 for hold harmless and 8I1060 for CBC allocations).

• 8I1057 - Non-permanent University Fund allocations

All budgets and actuals will be set up by the VPFA office.

Facilities and Administrative (F&A) Revenue
Facilities and administrative (F&A) revenue is recorded in account 533105 . The original automated recording of F&A revenue occurs in central University accounts. T he VPFA office will allocate real time F&A revenue to the RC units on quarterly basis. As it becomes apparent that actual revenues will vary from budgeted amounts, the university may adjust budgets. Each individual PI who has generated indirect cost recovery during the previous calendar year will have 10% of the related grant(s)' total indirect cost recovery allocated to them in the form of an internally designated account by the Vice President for Research office. Budgets for RC unit share, strategic fund and VP Research initially set at the prior calendar year's actual indirect cost recovery generated. Each unit will then be able to adjust its budget from that level based on historical trends and current information available to units.

EXPENSE

There are three expense allocations made to units under RCM: General Assessment, Financial Aid (actually a contra revenue), and Facilities. Each of these expense allocations are recorded by fund and org with a unique Account Code (level 4). Unique Accounts are needed because various reports use “attributes” that are attached to the specific account codes. Should talk about how these are budgeted similar to Revenues

General Assessment and Facilities
The following accounts are used for both budget and actual activity:

• 760100 - General Assessment
• 760125 - Assessment Offsets (General Admin, Student & Academic Services, CIS, Academic Affairs, VPR)
• 760105 - Facilities Allocation
• 760120 and 760122 - Facilities Offsets

At the start of the year the budgeted expense for each RCM assessment is fully encumbered. A monthly adjustment is done (via a JV feed document) to allocate 1/12 of the assessment. For the General Assessment and Facilities allocation, the budgeted amount will equal the cost distributed.

Financial Aid
The budget and actual activity for undergraduate financial aid is recorded in account 722110. Graduate financial aid expenditures are charged directly to school/college financial aid accounts with the exception of intercollege program financial aid which is recorded in account 722105.The following account codes are used:

• 721115 - In state graduate assistantships
• 721120 - Out of state differential - graduate assistantships
• 721130 - Out of state differential - project assistantships
• 721140 - Out of state differential – research assistantships
• 720028 - Graduate scholarships
• 722105 - Intercollege program financial aid

Undergraduate financial aid allocations are made each semester with one additional at year end. Graduate financial aid is posted to the above accounts when processed by Business Services.

3.2 Tuition

The University receives resident and non-resident tuition revenue for undergraduate and graduate credit courses, summer session, and non-credit courses. In addition, some of the schools/colleges charge differential tuition to their majors.

3.2.1 Undergraduate Tuition

3.2.1.1 Undergraduate Academic Year Gross Tuition (Credit Courses)
Undergraduate gross tuition is total revenue from undergraduate credit courses, credit courses (undergraduate and graduate) taken by non matriculated undergraduate and graduate students, and overload fees.

3.2.1.2 Undergraduate Academic Year Net Tuition (Credit Courses)
Undergraduate net tuition is defined as gross tuition less:

2.5% for the Library
2.5% for Academic Affairs
15% of prior completed fiscal year non-matriculated undergraduate and graduate credit course revenue
Financial aid

Undergraduate net tuition is allocated to the instructional unit listing the course based on weighted credit hours averaged over the previous two calendar years to allow the schools/colleges some lead time to adjust resources to correspond with changes in net tuition.

For courses offered in units outside the schools/colleges, the course is cross listed with a school/college and the revenue from such courses flows to the appropriate school/college.
For courses cross listed in two colleges, the revenue flows to the college/school where the student registers for the course.

When allocating undergraduate net tuition, there is no distinction between resident and non-resident tuition. Total undergraduate tuition is allocated based on the total credit hours. The undergraduate allocation formula for net tuition to the schools/colleges is as follows:

Undergraduate credit hours are weighted for the schools/colleges to reflect the cost differentials in instruction. Weightings applied to credit hours for each academic unit are: CEPS: 1.50, COLSA, WSBE, SHHS: 1.0, COLA: .80.
Tuition for the managed and exchange programs is allocated to the appropriate RC unit through the undergraduate tuition model and is assessed financial aid costs. Tuition is weighted at 1.0 for all programs. (Study Away Programs, see 3.2.1.6).

Exceptions:

Tuition revenue for UNH Manchester students taking courses in Durham is allocated to UNH Durham. Tuition revenue for UNH Durham students taking courses in Manchester is allocated to UNH Manchester.
Differential tuition is directly credited to the appropriate school/college.
ROTC credit hours are allocated to Academic Affairs.
In FY09, net tuition for approved study away programs will be allocated to Academic Affairs.

3.2.1.3 Undergraduate Financial Aid
Undergraduate financial aid (also known as institutional aid) is awarded by the Financial Aid Office to undergraduate students taking credit courses. The cost to the general fund is allocated out to the instructional unit based on credit hours averaged over the previous two calendar years. These include: President, Dean, merit, ROTC, athletic, music, and need-based scholarships.

Employee and dependent waivers are funded from the fringe benefit pool. Employees and dependents are considered in-state students for the purposes of tuition. The value of the waiver is reflected as an offset to tuition revenue.

3.2.1.4 Undergraduate Differential Tuition
Differential tuition is an additional tuition charge to certain majors. Differential tuition is directly credited to the appropriate school/college. Differential tuition is allocated after the following adjustments are made:

2.5% for the Library
2.5% for Academic Affairs

3.2.1.5 Undergraduate Intercollege Courses (INCO)
INCO net tuition revenue flows to the unit of instruction through the undergraduate net tuition formula (3.2.1.2).

3.2.1.6 Undergraduate Study Away (FY08)
Managed Programs are administered by a RC unit. Students enroll in UNH courses and are taught by UNH faculty and/or faculty of other institutions. Exchange Programs are programs that swap students between institutions.

Undergraduate net tuition for the managed and exchange programs is allocated to the appropriate RC unit through the undergraduate tuition model. Credit hours are weighted at 1.0 for all programs.

Effective FY09, tuition for approved programs is allocated to Academic Affairs and is assessed financial aid costs. Approved programs are study away programs that have been approved for participation by UNH students and the University awards transfer credit.

3.2.1.7 Discovery Program
The RCM 5-year Review Steering Committee recommended that the Undergraduate Tuition and Financial Aid subcommittee reconvene prior to the Faculty Senate vote to implement the inquiry requirement. The subcommittee will review whether the inquiry courses should receive a credit hour weighting (RCM Premium) that emphasizes the importance of these courses in the undergraduate curriculum.

3.2.1.8 Honors Courses
Honors net tuition revenue flows to the unit of instruction through the undergraduate net tuition formula (3.2.1.2).

3.2.1.9 Summer Session Undergraduate Gross Tuition
Summer session gross tuition is total revenue from undergraduate courses and undergraduate courses taken by non matriculated graduate students. Institutional financial aid is not allocated to students taking summer courses.

3.2.1.10 Summer Session Undergraduate Net Tuition
Summer session undergraduate net tuition is calculated by subtracting the following from the summer undergraduate session gross tuition:

2.5% for the Library
2.5% for Academic Affairs
15% of prior completed summer non-matriculated undergraduate and graduate credit course revenue

When allocating summer session net tuition, there is no distinction between resident and non-resident tuition. Total summer session undergraduate net tuition is allocated based on the current year total summer credit hours. The summer session allocation formula for undergraduate net tuition to the schools/colleges is as follows:

Weightings applied to credit hours for each academic unit are: CEPS: 1.50, COLSA, WSBE, SHHS: 1.0, COLA: .80.
Tuition revenue for the managed and exchange programs is allocated to the appropriate RC unit through the summer session net tuition model with a 1.0 credit hour weighting.

3.2.1.11 Off-Campus Undergraduate Credit Tuition
Tuition generated from undergraduate credit courses offered through the Professional Development and Training Office is allocated to Academic Affairs. Tuition collected for books purchased through the UNH bookstore and on campus housing can be recorded as offsets to gross tuition through a pass through account.

3.2.2 Graduate Tuition

3.2.2.1 Graduate Academic Year Gross Tuition (Credit Courses)
Graduate gross tuition is total tuition and overload fee revenue from matriculated graduate students (resident and non-resident). Non-matriculated graduate students are not included in this allocation - their revenue and related credit hours are factored into the undergraduate net tuition model (See 3.2.1.2).

3.2.2.2 Graduate Academic Year Net Tuition (Credit Courses)
Graduate net tuition is calculated by subtracting from the graduate gross tuition base the following:

2.5% for the Library
2.5% for Academic Affairs

Graduate net tuition is allocated based on the current year revenue and is directly credited to the schools/colleges based on where the student is matriculated.

3.2.2.3 Graduate Financial Aid
Graduate financial aid is awarded by the college/school in the form of graduate student waivers and fellowships expensed to the unit. In addition, the Graduate School may cover the cost of scholarships for strategic initiatives from the University’s general fund.

Employee and dependent waivers are funded from the fringe benefit pool. Employees and dependents are considered in-state students for the purposes of tuition. The value of the waiver is reflected as an offset to tuition revenue.

3.2.2.4 Graduate Differential Tuition
Differential tuition is an additional tuition charge to certain majors. Differential tuition is directly credited to the appropriate school/college. Differential tuition is allocated after the following adjustments are made:

2.5% for the Library
2.5% for Academic Affairs

3.2.2.5 Graduate Intercollege Courses (INCO)
Graduate Intercollege Courses are defined as those that offer a core curriculum that requires the participation of faculty from two or more schools/colleges. Intercollege programs are housed within the Graduate School; thus, for RCM purposes the home unit of intercollege students is the Graduate School.

A Memorandum of Understanding (MOU) is established for each intercollege graduate program between the units involved in the program.
The allocation of all tuition generated by intercollege programs flows to the Graduate School.
Generally, all expenses including financial aid and administrative costs for the program are taken off the top and the remaining tuition revenue is allocated to the school/college based on the proportion of credit hours taught.

3.2.2.6 Center for Graduate and Professional Studies (CGPS)
The Center for Graduate and Professional Studies supports the delivery of UNH graduate curricula to matriculated and non-matriculated students who are pursuing advanced studies in a professional field. Revenue from both matriculated and non-matriculated students taking CGPS is calculated by subtracting the following from gross tuition:

2.5% for Academic Affairs

Revenue is recorded to the appropriate Durham school/college tuition account. Three times per year (fall, spring, and summer) transfers are made by the Vice President for Finance and Administration Office in accordance with the following:

10% of gross tuition to UNHM (for courses offered on the UNHM campus)
7% of gross tuition to Academic Affairs to fund the Center for Graduate and Professional Studies.

These assessments are charged to the Durham units and transferred to the appropriate areas. Assessments are split equally between fall and spring semester.

3.2.2.7 Summer Session Graduate Gross Tuition
Summer session graduate gross tuition is total resident and non-resident revenue from graduate courses taken by matriculated and non-matriculated graduate students.

Exception: non-matriculated students taking courses through the Center for Graduate and Professional Studies (3.2.2.6).

3.2.2.8 Summer Session Graduate Net Tuition
Summer session graduate net tuition is calculated by subtracting the following from the summer session graduate gross tuition:

2.5% for the Library
2.5% for Academic Affairs

Summer session graduate current year net tuition is allocated to the instructional unit based on credit hours and weighted at 1.

3.2.2.9 Graduate Non-Matriculated Students
Tuition revenue from credit courses (undergraduate and graduate) taken by non-matriculated graduate students flows through the Undergraduate tuition model (3.2.1.2).

Exception: non-matriculated students taking courses through the Center for Graduate and Professional Studies (3.2.2.6).

3.2.2.10 Graduate Certificate Programs
Revenue from Graduate Certificate Programs is allocated in the same manner as Graduate Academic Year Net Tuition (see 3.2.2.2).

3.2.2.11 Contracted Off-Campus Graduate Courses
Tuition generated from graduate courses offered through the Professional Development and Training Office is allocated to Academic Affairs. Tuition collected for books purchased through the UNH bookstore and on-campus housing can be recorded as offsets to gross tuition through a pass-through account.

3.2.3 Non-Credit Tuition
Tuition generated from non-credit courses offered through the Professional Development and Training Office is allocated to Academic Affairs.

Exception: WSBE Executive Development Program. Non-credit course revenue generated by a RC unit is allocated directly to the RC unit and subject to general assessment. Tuition collected for books purchased through the UNH bookstore and on-campus housing can be recorded as offsets to gross tuition through a pass-through account.

3.3 State Appropriation Allocation

3.3.1 Allocation Methodology

The University receives revenue from the State of New Hampshire, subject to approval of the State Legislature after review of the USNH Biennial Budget request. Under RCM, the state appropriation revenue is allocated to units as follows:

1. UNH receives a share of the USNH state appropriation allocation. This is calculated as the prior year state appropriation inflated by the % increase from the State.

2. Funding for current year critical needs identified by the Board of Trustees is taken off the top of the University's share. This includes funding for salary increases for Cooperative Extension County and Federal extension faculty*. Other examples of critical needs are new building operating costs and major technology investments. The remaining balance is allocated as follows.

3. Approximately 28% is distributed to Program Appropriation Units (PAU) (Agricultural Experiment Station, Cooperative Extension, Marine Program, UNHM, NHPTV and Consulting Center). For Cooperative Extension, UNHM and NHPTV, the state appropriation allocation includes funds earmarked by the state as well as a balancing adjustment to make the transition from the prior budgeting system (before FY01) to RCM. This amount becomes a permanent revenue stream and is inflated annually at the rate of the general state appropriation increase AFTER current year critical needs funding. Note: For example, the % increase in UNH state appropriations may be 5% but after critical needs, the % increase may only be 4.2%. The PAU allocations are inflated by the 4.2%, not the 5%.

4. 5% to the UNH Library

5. Approximately 22% for the University Fund. For more information, see Section 3.7 University Fund.

6. The remainder, approximately 45%, is allocated to Academic units (Durham based schools/colleges only) and Research units. This is distributed to units on the basis of prior completed fiscal year faculty salaries (includes graduate students and extension faculty) from all funding sources (E&G, auxiliary, internally designated, gift, grant/contract) and are weighted as follows:

Faculty salaries, including extension faculty, funded by E&G funds are weighted at 1.0; salaries from all other funding sources are weighted at .5
Graduate student salaries are weighted at 1.0 for all funding sources
All forms of faculty pay are included (e.g., admin stipends, supplemental pay and other salary expenses in 611*** account codes).
Fringe benefits are EXCLUDED from the calculation base; only direct salary/labor costs are included.

* All salary increases for County and Federal Extension Educators are funded by the University through state appropriations. Each year, the prior year critical need amount is inflated by the salary increase guideline % and added to the Cooperative Extension budget.

3.4 Facilities and Administration Recovery (F&A)

Overview
Facilities and Administration Recovery revenue (F&A) comes to the University through agreements with external sponsors in order to help defray overhead costs resulting from research activities. IDC is allocated directly to the unit that generates the overhead costs in an effort to link IDC to research activity, provide better incentives for conducting research, and make units responsible for their portion of overhead costs. Starting in FY08, the University allocates IDC on a real-time basis, meaning that revenue is allocated as it is generated. PI Fund allocation remains based on prior calendar year activity. Analytical tools and reports will be developed and provided by the VPFA Office in consultation with the RC units to assist units in monitoring IDC recovery and adjusting budgets as necessary. Since the PI share is allocated based on the previous calendar year, fiscal year revenues will exceed or be less than that amount (difference between FY and CY earnings). Any difference between FY and CY earnings will be reallocated to RC units – surpluses and shortfalls.

Link to Updated F&A Policy - Approved 12/07

Allocation Methodology
Indirect Cost Recovery revenue is allocated to RC units as follows:

82% to the RC unit that receives the award
10% to the PI(s) named in the grant document*
5% to the Vice President for Research
3% to the Vice President for Research- Strategic Fund

* The University allocates IDC on a real-time basis, with the exception of PI Funds which receive 10% of the prior calendar year's activity.

For shared (e.g. inter-unit) grants, the 82% will be divided among units through negotiation at the time of the writing of the proposal. The following template has been provided as a default allocation to assist units in dividing the 82%:

• Research Faculty

6% to the Research Faculty member’s home RC unit
76% to the RC unit receiving the award

• Formula Funded Faculty (duties split 50% between research and instruction)

18% to the Faculty member’s home RC unit
64% to the RC unit receiving the award

• Instructional Faculty

30% to the Faculty member’s home unit
52% to the unit receiving the award

Allocation Details
82% to Units: Units conducting research generate overhead costs associated with the research activity. The same units are directly responsible for securing reimbursement for these costs. Therefore, it is logical that units conducting research receive the majority of the indirect cost recovery (82%).

Shared Grants Default Distribution Method: UNH is committed to promoting interdisciplinary research. This distribution of indirect cost revenue recognizes and rewards interdisciplinary collaboration, at the same time attempting to cover the administrative costs where they occur. Percentages attributed to the home units are in recognition of the standard costs of administration associated with faculty members; the larger percentage is directed toward the unit receiving the award, where the main costs will be incurred.

Percentages (shown above) are guidelines and can be negotiated at the proposal stage by units for unique situations. In situations where the F&A return will not comply with the standard default mechanism (shown above), allocation of the 82% must be included on the Office of Sponsored Research “Request for Internal Approval of Grant or Contract Application to External Sponsor (the “yellow sheet”). Copies of the yellow sheet need to be forwarded to the Office of the Vice President for Research (VPR) so adjustments can be made to the allocation of F&A. During the development of a new financial system, an automated distribution system will be developed.

10% to PI’s: In order to provide incentive for research and scholarly progress and seed funds for new projects, 10% of the prior calendar years F&A recovery should be directed to principal investigators.

The 10% return (approximate, as the percentage has varied) is an existing form of RCM. Started in 1984, this sharing of revenue by the central administration has clearly been a success. An argument can be made that this policy has encouraged the dramatic growth in externally supported research. The return represents an incentive that already succeeds at the individual level. It is a pure and direct form of incentive. PI’s see the reward for effort -- they receive funds when they produce, and they do not receive funds when they fail to produce. Faculty have stated that this small but significant and tangible reward is an added incentive to their research and scholarship mission.

At UNH, the return to PI’s is sometimes the only significant “seed” money available to explore new research concepts and to develop data for proposals in new areas (especially as resources at the dean/VP level have dwindled). As one PI stated, it is “how the next grant is gotten.” Faculty also feel that “they are not stealing from their department’s or college’s meager resources” when they can use these funds instead.

5% to the Vice President for Research: The Office of the Vice President for Research will receive 5% of the F&A return. This distribution is intended to accomplish two things:

1. To defray the majority of the costs of administering sponsored programs (primarily the administrative functions of the VPR and the Office of Sponsored Research);
2. To provide the VPR a discretionary fund for new initiatives, equipment cost sharing (match), participation in start-up for new faculty, repair of broken equipment, and replacement due to theft, etc.

3% to the Vice President for Research- Strategic Fund to enhance Research and scholarship and Graduate Education. See 3.4.1

Facilities and Administrative Distribution in the RCM System

Allocation Schedule

• PI distributions will be made at the beginning of the fiscal year equal to 10 percent of the prior calendar year actual.

• On a quarterly basis, the VPFA and VP Research Office will calculate and allocate funding to RC units equal to 82% of their actual fiscal year indirect cost generated at that point in time. The basis for allocation (reports) will be provided to RC units.

• On a quarterly basis, the VPFA and VP Research Office will calculate and allocate funding to the VP Research Office equal to 8% (5% for the VP Research Office and 3% for the Research Strategic Fund) of the total University indirect cost recovery generated to date.

New Research Centers
When significant indirect cost revenue is anticipated to be generated by a new research center, a current year budget could be established. This would require approval from both the VPR and the VPFA. Since this process would be used only when a new organization is “guaranteed” to generate significant indirect cost revenue, this process should be rarely used (and not for individual PI’s). The amount of funding should be agreed to by the VPR and the responsible Dean/Director. In these cases, funding would come from budgeted F&A recovery revenue by taking the amount off the top of the total budget and distributing the remainder to RC units based on % of calendar year return. This would only be a one to two-year funding solution for new centers. After the one or two year start up period, the research center's share of calendar year grant activity will provide the basis for funding to the RC unit.

10% to PI's
Each individual PI who has generated F&A recovery during the previous calendar year will have 10% of the related grant(s)' total F&A recovery allocated to them in the form of an internally designated account by the Vice President for Research office. Please note: in keeping with past practice, PI return amounts of less than $25 will not be returned to the PI and will be held centrally due to the administrative cost of processing those transactions.

PI current year shares and remaining account balances of F&A recovery for faculty that have left the University will revert to the RC unit. Shares for PI's that involved multiple units (i.e. CEPS faculty with grants in EOS) will distributed to each unit via the prescribed percentages for shared grants as described in the first section of this document.

3.4.1 Vice President for Research Strategic Fund

Application of 3% of Indirect Cost Recovery To Enhance Research/Scholarship and Graduate Education
One result of the recent RCM review was the transfer of 3% of F&A from Principal Investigators to a central pool to enhance research and graduate education. At the final meeting of the Central Budget Committee (CBC) on changes in RCM, President Hart directed the VP for Research (VPR) to develop a process for determining the best use of these funds.

An open, competitive process is established that allows faculty groups and programs to apply for these funds without significant constraints as to what kinds of strategic investments would be preferred or excluded. This competition would occur each year, with funding available for up to 2-3 years, if required by the strategy proposed. The focus of the competition would be to enhance the quality of research and scholarship with a strong emphasis on graduate student recruitment, retention and training. This program will allow the University to test a range of ideas related to enhancing graduate education in relation to faculty inquiry.

3.5 Facilities Services Allocation

One of the goals of RCM is to develop a plan that fairly allocates facilities costs to all Responsibility Centers. This benefits the University by requiring Responsibility Centers to include the cost of space in their decision making process. UNH Facilities Services functions as the primary provider of facilities management. UNH is better served by one service provider for each type of service currently offered by Facilities Services; however, this provider must provide competitive rates for services.

Facilities Services is comprised of the following major operations:

• Facilities Administration Overhead
• Renewal and Replacement (R&R) (General R&R and Greater Good projects)
• Municipal Services (Fire Department)
• Utilities (energy production, water, sewer)
• Maintenance (trades and contracts)
• Housekeeping
• Grounds and Roads

In general, net facilities services costs are charged to units on a net square foot basis (NSF). The rate charged on the NSF basis is calculated by taking the net costs of the above operations divided by total net square footage for the University (as defined below). This option provides the most simple and, equitable method of charging facilities costs to RCM units. Certain units are not charged on a full net square foot basis as noted above due to their location, size and type of operation- these include UNH-Manchester, NHPTV, Business Affairs and Student Affairs Auxiliaries and Farm and Outlying Properties.

3.5.1 Allocation Methodology

Facilities Services Defined

• Facilities Administration Overhead includes facilities administration, campus planning, design and construction, general operations, stockroom inventory and associated personnel attrition.
• Renewal and Replacement. The institutional R&R budget is allocated annually by SARRC (Space Allocation Renewal and Replacement Committee) to academic, administrative and research units for renovations and repairs to buildings and grounds. The Auxiliary operations, including student affairs auxiliaries and business affairs auxiliaries contribute toward 10% of the annual R&R budget based on their NSF to go towards projects considered the greater good of the institution (including Master Planning, Water and Sewer system upgrades, and other general infrastructure repairs). SARRC will provide an annual summary of R&R Greater Good projects funded each fiscal year.
• Municipal Services include costs for the Fire Department and solid waste removal.
• Utilities include water and sewer costs, and energy production and purchases for the UNH Co-Generation plant.
• Maintenance costs include both contractual agreements with outside contractors (sprinkler systems, elevators) and trade personnel and expenses (painters, plumbers, carpenters, electricians).
• Housekeeping costs include housekeeping staff and supplies as well as outside contracted services.
• Grounds and Roads costs include personnel costs, materials, and equipment.

Net Square Foot Defined
Net square footage equals gross square footage (total building space including walls and roof) less common areas such as halls, bathrooms, stairways, and foyers, as documented in the UNH space management system. If the space is inhabited by a person, functional storage, lab, classroom, or other use, or is usable space that is only accessible through another charged room (ex: a closet inside an office), it is calculated in the net square foot base. (see Space Management under RCM below).

NSF Rate Components
General/Core buildings are allocated the full NSF rate. Properties with special NSF rates assigned to them receive limited services due to their location and/or unique arrangement for self service. Properties subject to NSF rates and the components for which costs will be allocated are marked by X.

						Outlying Properties
	GENERAL / CORE Bldgs	STUDENT AFFAIRS AUX	UNHM	NHPTV	FARM & AG SPACE	JACKSON LAB	KINGMAN FARM HOUSE & LAB	BROWNE CENTER	MARINE LAB	121 TECH DRIVE	BUSINESS AFFAIRS
FACILITIES OVERHEAD	X	X	X	X	X	X	X	X	X	X	X
R&R GENERAL FUNDING	X	*()**				X	X
R&R GREATER GOOD	X	X		X							X
MUNICIPAL SERVICES	X	X		X	X	X	X	X			X
ENERGY PRODUCTION	X	X		X	X
WATER & SEWER	X	X		X	X						X
MAINTENANCE CONTRACTS	X	X
MAINTENANCE & TRADES	X	X				X	X
Grounds & Roads	x	x				x
Housekeeping	x	x				x	x
Other Trade Services	x	x				x

• Student Affairs Auxiliaries are responsible for funding their own renewal and renewal projects and are not subject to the square footage charges imposed on non-auxiliary units for R&R projects, with the exception of the Field House pool (*) which is included in this rate. All other costs components are built into the NSF rate.
• UNH Manchester incurs direct costs for utilities, maintenance and housekeeping, grounds and roads, and renewal and replacement. Thus, UNH Manchester is allocated net costs of Facilities Administration Overhead only.
• NHPTV is charged a net square foot rate for facilities overhead, municipal services, energy production and water and sewer costs. Other direct costs for general renewal and replacement, maintenance contracts, housekeeping, trade services and grounds and roads are paid directly by NHPTV.
• Farm and Agriculture properties will be charged a reduced rate based on services provided by facilities including a reduced energy cost based on historical usage.
• Outlying Properties incur direct charges for utilities and other services. Many of these properties are totally excluded from the Facilities Services cost per square foot calculation. Such properties include the NHPTV tower in Littleton, NH and the Institute on Disabilities office in Concord, NH. Other properties, based on location and services provided by Facilities Services are assessed a NSF rate accordingly.
• Business Affairs Auxiliary operations have been permitted to negotiate rates and service levels with Facilities Services separately. With the exception of Facilities Overhead, R&R Greater Good projects, Municipal Services and Water and Sewer which are based on a formulaic rate per net square foot; all other costs are billed monthly based on actual consumption of services. The negotiated budget is set at the beginning of the year and charges are made by Facilities Services against that budget during the year.

Facilities Services Calculation by RC Unit
Components of the Facilities budget and resulting rate components must be made transparent to the consumers of space. This is the methodology of how Facilities Services net expenses are distributed to RC units.

• Determine if space changes have been made and calculate the NSF applicable for each cost component. An “X” in the chart below defines cost components and property types that are included in the Net Square Feet rate calculation.
• Divide cost component values by NSF amount. For example, if the net cost to recover for Facilities Overhead is $3.5 Million and the total Net Square Feet applied to that cost component is 1.8 Million square feet: 3.5M ÷ 1.8M = $1.94 per square foot charge for that Facilities Overhead component.
• Recalculate rate using this methodology for each cost component and property type (General/Core, Student Affairs Auxiliaries, Outlying Properties, etc).
• Negotiate billing rates with Business Affairs auxiliaries based on projected labor hours and costs associated with the work to be performed.

Classrooms
The majority of classrooms are controlled by the Registrar’s Office. A small number of labs or large conference rooms are controlled at the Academic Unit level. Maintaining classrooms centrally provides for scheduling flexibility at the campus level. Net facilities costs for classrooms controlled by the Registrar’s Office will be allocated to the Registrar’s Office based on the square footage of those classrooms. Charges for classrooms or laboratories under the control of a specific RC unit will be levied directly against that unit.

Quality of Space
The University has refrained from subjectively rating the quality of space. One could argue that a "poor" space should receive a discount on the cost per square foot charge or, conversely, that it should be charged additionally for requiring more maintenance and electricity than newer, more efficient spaces. To avoid this ambiguity and the debate about "quality," we have chosen to simplify the model by averaging facilities costs across all square feet regardless of quality. Equitable, efficient, and manageable, this approach should be used in conjunction with decentralized budgeting. Space that is deemed by facilities services to be uninhabitable due to structural, space limitations or other extreme situations are excluded from the net square feet base on a case by case basis.

Changes in Space Ownership
See Chapter: "3.5.2 Space Management"

Changes in Space Usage
Any significant changes in space usage must be approved by SARRC prior to the change. An example would be conversion of a classroom to a laboratory.

Space Rental/Leasing
Under RCM, each RC unit is charged for its share of the costs of physical space. While these units are responsible for managing their assigned space in cooperation as needed with the Facilities Division, they are not owners of the space. Hence, units are not permitted to lease, rent, or otherwise provide their assigned space to other RC units or outside agencies. The Space Allocation/R&R Committee (SARRC) is the University governance body charged with assigning space, on both a temporary and/or permanent basis. Requests for changes in space allocation should be endorsed by the President or appropriate Vice President and forwarded to SARRC for review and approval.

Level of Service Provided
Facilities Services has issued a summary of "standard" services to be provided to RC units for the square footage allocation. Any services provided to a RC unit per its request that are not listed as "standard" by Facilities Services will be charged to the unit based on a negotiated rate reviewed by the Central Budget Committee and approved by the UNH President.

Renewal and Replacement
Funding for Renewal and Replacement projects is the responsibility of the Space Allocation Renewal and Replacement Committee (SARRC). Units support the Renewal and Replacement fund in either a full support or partial support basis. Business Affairs, Student Affairs and a select other units provide partial support for projects deemed to be of the greater good of the campus.

Renewal to Buildings, associated NSF and Swing Space.
During Renewal phases to buildings, occupants may need to vacate temporarily and reside in facilities swing space. The net square feet will be fixed during the renewal based on the occupancy prior to the renovations. RC Units will be charged for the space they occupied prior to the renewal, will not be charged for the swing space they occupy, and only when they return to the space will the net square feet be adjusted, based on the renewed square feet.

Central Budget Committee
The Central Budget Committee (CBC) representing users from each major unit group (deans, directors, faculty and staff) will assure that the Facilities budget and cost allocation method are equitable and feasible. Reviews will be done on a periodic basis. Each year Facilities Services must present its budget to the CBC using the normal rate of inflation per cost category and outline any incremental increases exceeding this rate.

3.5.2 Space Management

Because RCM attaches a cost to each net square foot (NSF) of space, it is anticipated that some units may want to consider relinquishing space while others may want to consider acquiring space. All units must adhere to the following procedures regarding changes in space to ensure that the space file reflects current RC unit control and that negotiations and disputes are properly resolved:
The space file Net Square Footage at January 31st of any given year will be used as the basis for the Facilities Services allocation to all units under RCM for the following fiscal year. An annual reconciliation of space should be completed no later than that date. Any changes after that date will not be reflected in the annual facilities assessment budget calculations (see re-assignment of space below).

THE SPACE ALLOCATION, RENEWAL AND REPLACEMENT COMMITTEE (SARRC) SPACE TRANSFER PROCESS
Introduction
According to the charter of the Space Allocation, Repairs and Renovation Committee (SARRC), this committee has “ultimate responsibility for” (among other things):

1. Approving the allocation of space in all University buildings
2. Approving changes in the use of University lands and buildings

Transfer of space between “functional units” is an important mechanism for ensuring the efficient utilization of this resource. It has been the history of SARRC, and remains the expectation of the University, that most space transfers will result from plans that are agreeable to all parties. However, when contrasting proposals for the use of space arise, a well-defined and open process for reviewing and deciding among alternatives is essential to ensure fairness and full participation by all parties.
As stated in the Charter, “reassignments of space contained within a functional unit, and any attendant costs, are ordinarily the responsibility of the administrator of that unit.” Thus the process described here pertains only to requests to transfer space between “functional units” on campus. Under the current decentralized financial system, (Responsibility Center Management, or RCM) functional units are equivalent to RC units.

Process
Proposals to reassign space on campus can be of two types:

A) The two units involved may be in agreement about the transfer, or
B) The units may disagree

Under the first condition, the proposal may be brought to SARRC as a simple listing of the spaces involved. SARRC will review the request and may ask for staff analysis of impacts, followed by committee decision.

Under the second condition, requests for transfer of space between RC units will begin with a proposal submitted to SARRC by the unit proposing to acquire the space in question. This proposal should contain:

1) A detailed description of the space(s) involved (e.g. building name and room numbers)
2) A full description of the proposed uses for those spaces
3) A description of the relevance of the transfer to University goals, as described in the Academic Plan and the Campus Master Plan
4) A quantitative and programmatic justification that space is needed by the receiving unit, and that the transfer will increase the efficiency of utilization and quality of programs; this justification should reference the unit’s three-year space utilization and needs plan
5) A projected budget for the costs of occupying and renovating the space, including the source of funds to be used for such expenses and the estimated on-going facilities charges for the acquired space

Prior to submitting a proposal to SARRC, the proposing unit must share its proposal with the unit to which the space is currently assigned. The affected units are expected to engage in good faith discussions intended to resolve the issues, resulting in a voluntary agreement. If a voluntary agreement is still not possible, the affected unit has the right to submit its request to maintain the status quo (or to submit a counter-proposal) to SARRC. This response should be submitted to SARRC within 45 days of receiving initial notification from the proposing unit.

Upon receipt of a proposal and any response from the affected unit, SARRC will commission an independent analysis of the utilization of the spaces described and the financial and programmatic impact of the transfer on both units.
Upon completion of this analysis, the Vice President(s) responsible for the units involved will meet with the Deans and/or Directors and attempt to resolve any disagreements arising from the proposed transfer. If agreement is reached, the process described for condition A) above will be followed

If agreement cannot be reached, SARRC will review all available information relating to the current and proposed use of the spaces involved. Voting members of the committee will decide, by simple majority, whether all, some, or none of the spaces will be transferred.

If a contested transfer is approved by SARRC, any change in space assignment will take place no sooner than 6 months, and normally no later than 9 months, after the date of approval.

All contested transfers will be reviewed for renewal or reassignment by SAARC three years after the date of the move.

Re-assignment of Space (see http://www.unh.edu/budget/spacetransferform.doc):
1) Units will be able to give up space at any point during the year and receive financial relief after SARRC approval if there is another unit willing to acquire the space. Once SARRC gives its approval, expenses will shift from one unit to the other. This transfer of expenses will be negotiated and processed at the BSC level; the current facilities allocation will not be modified. 2) Units will be able to give up “usable” space (space that can realistically be used by another unit) when there are no units identified to acquire the space, subject to SARRC approval. In these cases, the unit would receive reduced NSF costs in the following fiscal year. Unassigned space changes must be submitted to SARRC by January 31 for cost reduction consideration for the following year. All costs for unassigned space will be absorbed by all units through the NSF rate as the costs to maintain that space remains. 3) In the event SARRC must obtain space from units for purposes of Facilities “swing” space (space needed on a temporary or permanent basis to accommodate construction projects), the unit providing the space would reduce its net square footage costs for that period of time. The process of Re-Assigning space is as follows:

1. RC units wishing to relinquish/acquire space must contact the Facilities Business Service Center and provide a complete description of the space they intend to relinquish or specifying the amount of space (NSF) required and the type of space (lab, office, etc.) desired. A unit relinquishing space may have identified a potential new user of the space.
2. The Facilities Business Service Center will forward the details of the request to SARRC which will review and consider the request for approval. SARRC will evaluate requests based on condition of, potential use of, and access to the space.
3. If approved by SARRC, Facilities Business Service Center will be notified and will update the space file to reflect the change (effective the following fiscal year- see General information above).
4. Facilities Business Service Center will notify the RC unit of the change.
5. If not approved by SARRC, Facilities Business Service Center will be notified of the reasons why and in turn notify the RC unit.

Acquiring New Space:
From time to time, new square footage will be added to the campus. Minor square footage additions will follow the procedures outlined above for existing space. This section is applicable for capital projects (construction of new buildings or major expansions/renovations). The following procedures apply to new space:
1. SARR is responsible for space assignments in the new building. Space assignments must be communicated to Facilities Business Service Center.
2. Facilities Business Service Center is responsible for measurements and drawings for the new space. The characteristics of the new space will be recorded in the space file database once all measurements are confirmed.
3. The space file Net Square Footage at January 31st of any given year will be used as the basis for the Facilities Services allocation to all units under RCM for the following fiscal year. New space is added after this point will not be added to the allocation base until the following fiscal year. New space will not be added to the allocation base until the square footage can be reasonably estimated.
4. There are incremental costs that will be incurred by Facilities Services to maintain the new space - utilities, maintenance and housekeeping. To the extent they can be forecasted, they should be built into the facilities fiscal year budget.
5. All costs associated with "swing space" is assigned to Facilities Services and are reallocated to the RC units using the NSF and billing methodologies. This is because use of this space is not permanent and units should only be charged directly for "permanent" use of space.
6. In addition, the following must be considered by a unit when evaluating the creation of new space:

• If construction of a new building is State-funded, the University will include in its request to the State funding for incremental Operations and Maintenance (O&M) costs. The Central Budget Committee will determine the adjustment (increase) in the RC units' permanent University Fund allocation necessary to offset incremental increases in the RC unit's Facilities Services allocation.
• If construction of a new building is from private gifts, the institution can not and should not accept the gift unless the RC unit is certain that there is sufficient funding identified for the incremental O&M costs.
• If construction of a new building is from HEHFA bonds, O&M costs should be covered through a corresponding increase in student fees or charge-out rates to external users.

7. In the case of auxiliary buildings, auxiliary operations are expected to cover the annual operating costs from their operating budgets on year 1 of occupancy. Funding may come from increased mandatory fees or rates as well as reductions in other areas. All other buildings will be phased in for the occupying unit(s) according to the following schedule:

• Year 1: No NSF charges for the incremental NSF
• Year 2: One-Quarter the total NSF charges for the incremental NSF
• Year 3: One-Half the total NSF charges for the incremental NSF
• Year 4: Three-Quarters the total NSF charges for the incremental NSF
• Year 5 and beyond: Unit is fully responsible for 100% of the total NSF charges for the incremental NSF.

3.5.2.1 Space Transfer Request Form
A template was developed to organize and route all appropriate information for a Space Transfer provided to SARRC (the Space Allocation, Repairs and Renovations Committee) per UNH Property Policy: http://usnholpm.unh.edu/UNH/VI.Prop/F.htm. Operation and Maintenance of Property

1. The Space Allocation, Repairs and Renovations Committee Space Transfer Process
1.2 Process. Proposals to reassign space on campus can be of two types:
1.2.1 (A) the two units involved may be in agreement about the transfer, or (B) the units may disagree.
1.2.1.1 Under the first condition (A), the proposal may be brought to SARRC as a simple listing of the spaces involved. SARRC will review the request and may ask for staff analysis of impacts, followed by committee decision.

Steps to Complete the Space Transfer Request Form
1. Open the Space template form located at http://www.unh.edu/budget/spacetransferform.doc.
2. Either the current owner or the new owner of the space may initiate the Space Transfer Request Form.
3. The initiating BSC/RC Unit Department completes the following sections:

3.1. Header Information

• Current Date (date initiated)
• Building and room number(s) associated with the move
• Current net square footage assigned to the space
• Expected data of transfer

3.2. RC Unit Information

• Department occupying (or receiving) the space & department contact information. If a unit wishes to give up space with no known receiver, enter “Facilities / Campus Planning” in the Receiver of Space field.
• RC Unit/BSC contact information
• Acceptance of space transfer (are all the parties involved in agreement?)
• Additional comments concerning the transfer
• RC Unit head approval (Yes/No) and name of RC Unit head
• VP associated with the RC Unit (enables an FYI to be sent prior to SARRC meeting regarding the transfer)

3.3. Select File, then “SAVE AS” to save the request document. 3.4. Send an email the other BSC / RC Unit Department involved and attach the saved request form to the email. If there is no known receiver, send the email to Campus Planning [david.clark@unh.edu].

4. Upon receipt of the email and attached request form, the other BSC / RC Unit:

• Reviews section 3.1 and completes section 3.2
• Select File, then “SAVE AS” to save the request document
• Send an email to Campus Planning [david.clark@unh.edu] and the VPFA office [brian.mehr@unh.edu and/or tracy.boyle@unh.edu] and attach the saved request form to the email, including any additional backup information pertinent to the move.

5. Campus Planning / Facilities Services receives the request and:

• Reviews with Facilities Design and Construction the space being transferred to assure all pertinent information is proved to SARRC.
• Confirms the exact Net Assignable Square Feet will via the space database.
• Emails the final saved template to ALL parties involved, including Department, BSC, RC Unit Head, and VP, including the anticipated SARRC meeting date at which the request will be presented.

6. SARRC reviews the transfer and provides decision of the space transfer.
7. Once the SARRC decision is completed, the VPFA office will notify all parties involved of the decision and the process involving the RCM accounting of the transfer.

3.5.3 Service Level Agreement - Facilities Services

Facilities Services have developed documents to help provide RC Units and understanding of the services they offer as part of the base NSF rate vs. incremental services. Currently under development are specific RC Unit SLA’s that will provide more detailed information pertaining to their space.
Facilities Service Level Agreement

3.6 General Overhead Assessment under RCM

3.6.1. Summary
The General Assessment proceeds cover the expenditures of central service offices. Please see 3.6.2 for a summary of central services funded via the general assessment.

Updated General Assessment Review Proposal

The General Assessment is charged to all RC units that are not supported by the assessment. 50% of the amount needed is charged based on total adjusted personnel expenses* and 50% of the amount needed is charged based on total adjusted revenues* in accordance with the RCM 5 year review approved recommendations. Adjusted personnel expenses and total adjusted revenues are calculated using all current funds (general, internally designated, auxiliary, gift and grant funds) and are based on the prior completed fiscal year’s actual results (e.g., FY07 budget based on FY05 actual results). Endowment and plant funds are excluded from the revenue and expense base.

The assessment rates remain constant each year, unless adjusted by the President upon review and recommendation by the Central Budget Committee. Assessment allocations are built into unit budgets as an expense. Actual allocations to units are expensed monthly in the amount of 1/12 of the total unit budgeted amount.

* Adjusted revenues = Gross revenue from all funds less:

• Transfers in
• Endowment income (payouts)
• General Fund undergraduate financial Aid
• Central Budget Committee strategic allocations
• Hold Harmless revenue
• Cost sharing activity
• Amount related to mandatory debt repayments
• Amounts related to grant expenses for financial aid (both undergraduate and graduate), equipment, subcontracts and indirect costs as this is roughly the base for the indirect cost calculation

*Adjusted Personnel = Gross salary/wages and fringe paid by the unit from all funds less:

• Graduate Stipends

3.6.2 Allocation
All units pay the assessment, based on a % of total adjusted revenue and a % of adjusted personnel (salaries, wages, fringe) expense. This assessment is calculated on the previous completed fiscal year results (e.g., FY07 budget is based on FY05 actual current fund revenue & expenses).

NHPTV and Cooperative Extension's revenue and personnel base are weighted at .5 to reflect the level of expenditures paid directly from their budget that reduces their consumption of Durham based services. UNHM’s revenue and personnel base is weighted at .3 due to their direct cost of overhead.

Offices funded by the general overhead assessment include, but are not limited to:

Academic Affairs

Provost’s Office
Registrar & Admissions Office
Office of Financial Aid
Affirmative Action & Commissions
Graduate School & Continuing Education
Outreach Education

President’s Office

Alumni Affairs
University Communications & Marketing
Editorial & Creative Services

VP Finance and Administration

Human Resources
Budget Office

VP Research

Office of Sponsored Research
Environmental Health & Safety
Office of Intellectual Property

VP Student Affairs

Police, Security & Dispatch Services
Multicultural Center
Judicial Programs
SHARRP

Computer & Information Services

Academic Technology
Client Services & Telecom
Enterprise Computing

Library
Mail Services
Institutional Expenses

USNH Operations Support
Central Budget Committee Strategic Fund
Legal Expenses
General Insurance

3.6.3 Rate Increase
The assessment rates normally stay constant from year to year. The growth in revenue and personnel expense in the RC units will allow for funding growth in central budgets in a manner that is consistent with the growth in the University. The Central Budget Committee reviews the assessment rates on a periodic basis and recommends adjustments to the President if circumstances warrant a change in rates.

3.6.4 Budget Process

October/November, the total dollars that the general assessment will generate will be calculated based on the prior completed fiscal year financial results and the established assessment rates.

November-January, each administrative unit funded by the general assessment must prepare a preliminary budget projection based on the prior fiscal year budget and increased by the budget guidelines. In January the Central Budget Committee will review the general assessment budgets to determine if a surplus/deficit exists within the administrative units. The result of this deliberation may be that a result in an adjustment to the rate charged to revenue and personnel.

By January 31 st, any changes to the RC unit fund attribute must be complete. A snapshot of the RC unit revenues and expenses will be taken for the prior completed fiscal year and will be the base for the general assessment calculation. VPFA will make the report available at http://www.unh.edu/budget/budgetreports.htm.

February/March, the Central Budget Committee reviews and the President approves the budgets funded by the general assessment.

3.6.5 Student Fee Auxiliaries
Due to the timing of the student fee process, which begins in November, the General Assessment rates charged to auxiliaries will be the previous year’s rate (Budget Process #1 above). In the rare case when the Central Budget Committee reviews and the President approves an adjustment in the rates, a decision will be made by the President as to how it will affect the Student Fee process, based on the timing/extent of the adjustment in the rate.

3.7 University Fund
The University Fund equals approximately 22% of the total State Appropriation received by the University of New Hampshire, including all related PAU’s (see attached chart). The University Fund has two components:

1. A "balancing adjustment" or “hold harmless” allocated to Units at the onset of RCM and after the RCM review to bring Units into RCM in a "revenue neutral" budget position (no better or worse off than under the old budget system).
2. A fund used for strategic funding during the first 5 years of RCM. The Central Budget Committee will manage this fund. Future strategic funds will be allocated from the General Assessment and not by State Appropriation revenue.

3.7.1 Hold Harmless
The hold harmless allocation for each unit will be removed beginning in FY08. The revenue will then be reallocated to units based on a plan approved by the President. Please see hold harmless plan on 3.7.2

3.7.2 Hold Harmless Review

Updated Hold Harmless Review Recomendation

FROM: J. Bonnie Newman, Interim President
SUBJECT: Hold Harmless Review Process
DATE: November 15, 2006

In March, 2006 President Ann Weaver Hart wrote to the UNH community announcing the implementation of recommendations from the RCM Review Steering Committee. In that letter she stated, “ My view of the ‘hold harmless’ allocation is that, while it helped make the transition from our prior budget system in FY2001, the allocations were not strategic. During FY2007, I will be engaging the President’s Cabinet, Central Budget Committee, individual units, and others in a process to remove the hold harmless allocation for each unit and reallocate funds in a deliberate and strategic manner for FY2008 and beyond. This approach is a much more thoughtful one than using a formula and one that will ensure that our resources and mission-related goals are aligned”

After many discussions with affected parties, I have decided on the following next steps which build on President Hart’s experience and thinking while incorporating the input and suggestions of the Cabinet, Deans’ Council and the Central Budget Committee. I believe this process, while not addressing the concerns or desires of all, is a fair, thorough and measured approach appropriate to the importance of this task to UNH.

The attachment to this memo is a master sheet that summarizes each unit’s current hold harmless allocation, the unit’s total FY2007 primary funds budget, the unit’s FY2008 targeted reduction in hold harmless, and for the schools and colleges the anticipated redistribution via faculty salary level, plus the number of years each unit is asked to plan for total hold harmless elimination.

Hold Harmless Review Process and Unit Participation
Between now and February 1, 2007 all units, except as described below, shall submit a report, describing in detail how they will absorb their targeted reduction in hold harmless for FY2008.

Between May 1, 2007 and June 30, 2007 each unit, except as described below, shall submit a report, describing in detail how they would eliminate the remainder of their hold harmless within the designated timetable attached to this memo. The plan should address potential changes in services, pricing, new revenue alternatives, reductions in expenses through economies and efficiencies and use of reserves as a bridge to budget balance.

Between July 1, 2007 and September 30, 2007, the President’s Cabinet and Central Budget Committee will review each unit’s reports and the impacts of these hold harmless reductions. Both groups will be asked to make recommendations to accept the impacts and planned changes, or, modify them by a permanent subvention at some level in certain instances where the unit’s service is deemed sufficiently aligned with the UNH core mission of academics, research or service to the community. Additionally, the Cabinet and Central Budget Committee will evaluate the advantages and disadvantages of the reallocation of funds using the RCM faculty salaries formula or other mixed models of strategic allocation.

By November 1, 2007, the president will make decisions on the pace of hold harmless reduction for each unit and the reallocation process for FY2009 and beyond.

Assistant Vice President David Proulx will coordinate VPFA staff support to units in preparing and submitting their reports. You should submit your report to the President with a copy to David’s office.

Exceptions
The schools and colleges will be receiving additional funds in FY2008 and beyond. For that reason they do not need to discuss absorbing hold harmless reductions. They are asked to summarize the key strategic investments that will now be possible in FY2008 by virtue of the targeted increase in their budgets as shown for their unit on the sheet for FY2008.

The hold harmless review for Athletics will be deferred for two years because of the restructuring of Athletics announced in Spring, 2006.

The hold harmless review for the New England Center will be deferred for two years as that unit is involved in a study with the Whittemore School regarding a possible conversion to academic use. If that use

RCM Manual Table Of Contents

RCM Allocation Models

RCM Manual
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