Responsibility Center Management

FAQs

  1. Will RCM involve changes to how my area receives its budget?

    • Not really.  Distribution will follow the same process, and the timing is reflected in the Budget Calendar.

  2. How does the initial phase-in of RCM differ from the subsequent phases?

    • USF will be phasing in its implementation of RCM over the next 2 fiscal years.  The first phase will be limited to E&G sources of funds.  Only incremental revenue will be distributed via a modified RCM budget model.

    • Phase 2 will incorporate research indirect costs (F&A) in the enhanced RCM budget model, and is scheduled for implementation beginning in FY 18 (July, 2017)

    • In FY 19 it is expected that all revenues associated with E&G and F&A will flow through the customized RCM model.

  3. What are the initial parameters of the incremental RCM model?

    • Incremental E&G funding(new General Revenue, Lottery, Performance Funds, and Tuition) distributed as follows:

      • Strategic Initiatives (as determined annually)

      • 10% President's Strategic Fund

      • 40% All Support Units (based on current cost of these units)

        • 15% for Academic Support Unit

        • 25% for Central Support Unit

      • 50% Remainder to Colleges

  4. Does the Strategic Fund include a reserve?

    • The Strategic Investment Fund are amounts set aside for the President to invest as needed and, as such, are not reserves.  The RCM incremental model will make provisions for reserves to be held for contingencies and statutory requirements.

  5. What will happen to RCs that run deficits?

    • Deficits are serious matters given our fiduciary requirements as a state entity.  The Subvention workgroup is determining how to accommodate deficits in future phases of RCM.  All areas will have the same level of accountability and budgetary controls that are currently in place.

  6. How will support centers deal with cost increases?

    • Under Phase 1 of RCM, the amounts allocated to the Academic Support and Central Support Units will be distributed by their respective Senior VP priorities.  In the next phase, there will be an annual budget review process that will allow support centers to make recommendations for priority budget increases funded from the incremental RCM model amounts.

  7. What happens to business unit funding when USF revenue decreases?  When it increases?

    • As it is today, any reductions or increases in either state appropriations or tuition may result in budget impacts to all areas of the university.  The RCM incremental model will be used to calculate the shared impact of incremental revenue changes.

  8. How will RC revenue be distributed to central and academic support centers?

    • In Phase 1 of RCM, all business units budgets will be locked based on FY 15/16 budgets.  Incremental RCM revenue will be available to central and academic support centers based upon the percentages outlined in the incremental RCM model.

  9. What reporting/forecasting tools will be available to support units and RCs?

    • Tools are being developed.  Underlying data is being disbursed on a periodic basis.

  10. Will rate control fluctuate? 

    • Current processes associated with rate will be maintained.  The state still requires the university to submit this information 3 times a year.

  11. Will there be an RCM evaluation system?

    • The Advisory Committee has formed to monitor the implementation of RCM and advise the stakeholders as needed.