UAccess Symposium March 2016

Who am I? What do I do? Native of Maryland BS, James Madison University MBA, Eller College of Management, University of Arizona ~15 years at UA Assistant Dean, Finance & Administration Responsible for business administration of the College of Engineering (ENGR) Manage all pre-award and post-award administration activities, including supervision of Engineering Research Administration Services (ERAS) Develop and manage ENGR budgets

Questions to be Answered What is RCM and why did the UA choose this model? What is in RCM and what is out? What resources are available to track RCM activity? How will colleges prepare for the Year 2 allocation process?

Has RCM worked at other institutions?

RCM Basics 5 How is an RCM budget different than the our previous budget system? Incremental Activity Based Budgeting Revenue associated with tuition flows to colleges Expenses associated with activity flows to colleges

RCM Guiding Principles Strategic Plan Incentives Minimize Negative Outcomes Balance Transparency Matching Revenues to Associated Costs Simplicity Predictability Adaptability Central Funds Investment Data Risk Communication Leadership Governance 6

Annual Marginal Changes in Funding: State Funds Tuition Administrative Service Charge Indirect Cost Recovery (75%) Central Administration Colleges Budget Base Support Units Budget Base Facilities Cost Budget Marginal Changes to Base Budgets Incremental Budget Process 7

UA Budget - State General Funds - Tuition - Differential Tuition - Program Fees - F&A Recovery (100% less VPR/ORD costs and Research Investments) Colleges -RCM Allocations -Subventions -Sponsored Activity -Course fees -Outreach -Summer Session -Philanthropy -Sales and Service Support Units and Institutional Costs -Subventions -Mandatory Fees -Other Misc. Fees -Philanthropy RCM Budget Process 8 Subventions Auxiliaries Administrative Service Charge Facilities Cost Assessed based on Net Assignable Square Footage Strategic Fund & Support Unit Cost Allocations Allocations Subventions Strategic Investments

RCM Model Revenue Assumptions Undergraduate revenue is pooled and allocated to colleges: 75% SCH / 25% Majors Graduate revenue is allocated by student to colleges: 75% Majors / 25% SCH GIDP Students allocated 100% SCH Graduate allocations are not weighted (as a consequence of being done on a student-by-student basis) F&A Allocated 100% to colleges Less proportionate share of SVPR operations Less proportionate share of Research Investment Fund

RCM Expense Components Support Center Units President’s Office Academic Affairs & Provost University Information and Technology Services (UITS) Human Resources University Libraries Business Affairs (Non-Facility Related) Institutional Support University Insurance Bank Fees Support Center Expense Recovery Office of Research and Discovery (SPS, CRS, Compliance Units) Student Support (Student Affairs, Honors College, Graduate College) Distributed Education (Outreach, UA South, Global Initiatives)

RCM Expense Components Continued Costs Associated with Space Facilities Management Debt Service Utilities Strategic Investment Fund

Incremental BudgetRCM Budget Direct revenues $ 1,000,000 UA budget allocation $ 19,000,000 RCM Allocated revenue $ 16,000,000 Subvention $ 13,000,000 Total revenues $ 20,000,000 $ 30,000,000 Direct expenditures $ 20,000,000 Allocated expenditures $ 10,000,000 Total Expenditures $ 20,000,000 $ 30,000,000 Net $ 0 Transition of Budgets to RCM

RCM Activity Resources