ERIC Number: ED445620
Record Type: Non-Journal
Publication Date: 1999
Reference Count: N/A
A Primer on Responsibility Centre Budgeting and Responsibility Centre Management. Professional File, Winter 1999, Number 17.
Lang, Daniel W.
This monograph is a "how-to" manual on responsibility center budgeting (RCB) and responsibility center management (RCM) in the context of Canadian and U.S. institutions. It explains how RCB/RCM works in practice and discusses some of the problems encountered in implementing this strategy at a number of Canadian and U.S. universities. The paper reviews the basic elements of RCB/RCM, which includes the calculation of all revenue generated by an academic unit, recalibrated periodically to ensure the reliability of cost information; the advantages of RCB/RCM in exposing costs that are often known but not recognized; the problems and disadvantages of RCB/RCM, including an institution's assumption that it has more knowledge of costs than it actually does have; how to install and costs of RCB/RCM, noting the need for a long-term commitment to the principles of RCB/RCM and a long-term understanding of markets and program costs; and the relationship of RCB/RCM to institutional plans and mission statements. In concluding the paper some RCB/RCM do's and don'ts are offered, along with a brief discussion of the future of RCB/RCM. A series of charts on central overhead model methodology, as well as financial worksheets are included. (Contains 36 book/journal references and 23 institutional reports on RCB/RCM.) (CH)
Descriptors: Accountability, Administrator Responsibility, Cost Effectiveness, Educational Finance, Evaluation Methods, Financial Audits, Financial Policy, Foreign Countries, Higher Education, Income, Institutional Administration, Money Management, Performance Based Assessment, Resource Allocation, Responsibility, Risk Management, Strategic Planning
Canadian Society for the Study of Higher Education, University of Manitoba, 220 Sinnot Building, 70 Dysart Road, Winnepeg, Manitoba R3T 2N2, Canada.
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Canadian Society for the Study of Higher Education.
Identifiers - Location: Canada