RCM

Responsibility Centered Management

What is a Responsibility Centered Unit (RCU)?

 Responsibility Centered Units (RCU) are fundamental components of the RCM system:

  • Under RCM, there are two basic types of RCU: revenue center units and service center units.
  • The primary revenue center units are the colleges, in addition to auxiliary units which earn their own revenues. Nonacademic support units—administration and institutional support groups, student support groups, and facilities costs—are examples of service center units.
  • RCUs are responsible for a particular function or functions within the University and are under the authority of one person (e.g., a Dean or Vice President).
  • Under the RCM model, RCUs are responsible for
    • all financial decisions as well as managing revenues, expenditures, and fund balances
    • developing strategic and financial plans that align with the overall academic and university plans

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