Responsibility Centered Management

How do funds flow in RCM?

The model takes into the account the all revenue allocations, the facilities cost and the support costs to come up with a funding change that is applied to the overall College budgets. The amount is a lump sum that is posted directly at the college level. The distribution of funds within the college to the departments will be the responsibility of the Dean’s office. Colleges have been directed to allocate funds within their college in a manner which is consistent with the principles of RCM. In addition to allocating funds based on levels of activity, it is important the college provide subventions between departments and maintain the flexibility to provide for strategic investments within the college.

RCM is not designed to provide direct departmental funding as the changes in funding from year to year can vary greatly and become unmanageable. The need to be able to provide subventions between departments is critical in maintaining stability within the university and the ability to strategically invest is critical to the growth of the institution.