RCM Project: GenEd Analysis

Honors Managerial Accounting:Dr. Gaffney

Project by Rachael Voluck, Heather O'Donnell, Nate Clark, Christopher Dempsey, and Clinton Tustin

RCM Defined

• Decentralized

• Responsibility to Schools

• Increase in cost effectiveness

• Driver of revenueo Incentives

Current Budgeting System

• Centralized

• Budget changes based off credit hourso Increase or decrease of 1% from prior year

• Time lag between generating revenue and receiving funds

RCM at Temple University

• Decentralized Budget Model (DBM)

• Goal: "To decentralize both the authority and responsibility that has typically been held with revenue decisions at the center of the university."

• Support centers to promote efficiency

• Financial resolution to decreases in state funding

Potential Advantages for GenEd

• Great professors and classes.

• Less turnover of faculty.

• Classes are similar from year to year.

• More classes offered.

Potential Advantages for GenEd

• GenEd remains important.

• RCM combined with GenEd helps keep all schools connected, so all students have similar class experiences.

Potential Disadvantages for GenEd

• In housing of Gen Edo Lower quality classes

• Need Budget Manager

• Deans, President, Provost should collaborate

• Increased responsibility at lower level

Potential Disadvantages for GenEd

• New Deans being introducedo Media and Communicationso Health and Social Worko Science and Techo Library

• Poor funding to common goods

RCM Results in the Past

• Indiana Universityo Perceived as successful for

students and facultyo Despite concerns few

problems surfaced with maintaining common goods

• The University of Michigano Common good academic

units with central budget o Modest results to decline in

use of common goods, not significant

Future Recommendations

• Determine a cost driver

• Require strong support from President/Provost

o Protect the program

o Require foundation courses to be taken in GenEd

• Maintain collegiality of the University

• Build strong, dynamic leadership and mission planning

Conclusion

• Temple needs a transparent, data-driven budget to allocate resources

• Colleges will be taxed for use of standardized GenEd programs

• Exact repercussions for GenEd are still unclear at this time

• No programs will be penalized in the first year of implementation