Allocating university administrative costs in a responsibility-centered management (RCM) model / Marvin L. Bouillon, Jerold J. Morgan, Kenneth A. Smith, Clemense Ehoff Jr.

Format:

Book

Author/Creator:

Bouillon, Marvin L., author.

Morgan, Jerold J., author.

Smith, Kenneth A., author.

Ehoff, Clemense, author.

Series:

SAGE Business cases.

SAGE Business cases

Language:

English

Subjects (All):

Fees, Administrative--Case studies.

Fees, Administrative.

Physical Description:

1 online resource.

Place of Publication:

London : Institute of Management Accountants, 2021.

Summary:

Last Friday, Harold (Harry) Edwards, president of Regional State University (RSU), met with Provost Sandy Barry and the deans of RSU's four academic colleges: Arts and Humanities, Business, Education, and Sciences. The meeting was held to discuss a new responsibility-centered management (RCM) budget model that t Vice President of Finance Gordon Moffitt has been working on for the past couple of years.When Moffitt was hired as vice president of finance in the autumn of 2019, President Edwards asked him to develop a new budget model using RCM principles. No formal university committee was created to work with Moffitt, but he assigned the task to a couple of individuals on his staff. President Edwards favored the RCM model at his previous university and wanted to keep RCM at RSU simple. He wanted to allocate all revenues to each college using student credit hours (SCH) and the number of majors and apportion administrative costs to each of the four colleges as a percent of revenues.RCM is a combination of policies and practices that link decision making directly to the related financial ramifications. The RCM budget model prescribes precisely how revenues and costs are shared among responsibility centers, allowing decision makers to be rewarded for sound financial decisions that benefit the entire university. In theory, each college receives its tuition fees and a portion of the government subsidies based on a prescribed formula. Each college must pay for its direct expenses and a part of the university's general operations or administration costs from these revenues. Tuition fees and state subsidies are generally allocated based on SCH and the number of majors.

Notes:

Originally Published InBouillon, M.L., Morgan, J.J., & Smith, K.A., & Ehoff, C. (2021). Allocating University Administrative Costs in a Responsibility-Centered Management (RCM) Model. IMA Education Case Journal, 14(2), Article 3.

Description based on XML content.

ISBN:

1-5297-9615-6

9781529796155

OCLC:

1289627320