Responsibility Center Management
RCM Advisory Committee: Established by President, the RCM Advisory Committee's (RCM-AC) role is to provide recommendations and guidance on revisions to the RCM approach, and to provide a forum for dispute resolution.
Direct Expenditures/Costs: A college's budget currently includes direct expenditures for salaries, other personnel support (OPS), and general operating expenses.
Direct Revenue: Revenue from all E&G sources for USF Tampa (excluding Health), includes:
- General Revenue & Lottery
- Tuition & Fees
- Performance Funding
In Phase 1, using the RCM Incremental Model, these revenues will be budgeted in the usual way. However, a portion of incremental revenue, as compared to E&G revenues in FY 15/16, will be distributed to colleges and support centers based on formula.
Indirect Costs or Support Costs: These are costs associated with university academic and central support units. In Phase 1, using the RCM Incremental Model, these costs will not be assigned to the colleges, but will be budgeted in the usual way.
Responsibility Center (RC): A responsibility center is a college (e.g. College of Arts & Sciences) of the university that is a primary revenue-generating unit. In Phase 1, using the RCM Incremental Model, the colleges will be budgeted in the usual way. In later phases of RCM, they will be budgeted to pay for not only their direct expenditures, but indirect costs as well.
Responsibility Center Management (RCM): The primary goals of RCM are to provide transparency, predictability, and accountability for budgets. This will, in turn, promote fiscal responsibility and efficiency, and allow USF to better its performance metrics and other strategic goals.
RCM at USF will be a phased-in budgeting system that will assign more distributed access to resource decisions for academic colleges and deans. In later phases of RCM, revenue-generating areas will be referred to as "responsibility centers" with revenues and support costs assigned to them. RCM's underlying premise is that the decentralized nature of the model entrusts academic leaders with more control of financial resources, leading to more informed decision-making and better outcomes for the University as a whole.
Phase 1: The RCM Incremental Model will formulaically assign incremental revenues to each RC, with allotments for central management and the support units.
RCM Incremental Model: The RCM Incremental Model is a budgeting method that uses the spirit of the RCM Full Model to formulaically assign incremental revenues to each RC, with allotments for central management and the support units.
Incremental revenues consist of changes in revenue sources from FY 15/16. This includes new general revenue, lottery, performance funds, and tuition. In any given year, for any given college, these increments may be positive or negative.
Resource Management and Analysis (RMA) developed an Excel-based model to calculate the distribution of incremental revenues as follows:
- 10% President's Strategic Investment Fund
- 40% All Support Units as follows:
- 15% for Academic Support Units
- 25% for Central Support Units
- 50% Remainder to Colleges
Strategic Investment Fund/Pool (SIF/SIP): A tax on incremental revenue that is used to fund a cash pool for executive use.
Subvention: Under the RCM Full Model, subvention is the transfer of E&G funds between colleges to support those that require supplemental income to cover their direct and indirect expenses. In Phase 1, subvention will be a topic of conversation in the design of the RCM Full Model, but is not part of the RCM Incremental Model in FY 16/17.
Support Units/Centers (both Central and Academic): Included in support units are the budgets of academic support units, general administration, business operations, libraries, information technology, and facilities.