Learning Resources

Abstract: As colleges and universities plan efforts to improve financial reporting and analysis, which often entail making costly investments in new systems and tools, they should first evaluate whether to redesign the institution’s chart of accounts. The chart of accounts is the DNA of financial reports and is used to track financial activity across the institution. This article proposes a planning, evaluation, and design process for a new chart of accounts and identifies key considerations for leaders undertaking this effort.

Abstract: This article presents a range of approaches for linking budgeting to planning. After briefly discussing the natures of planning and budgeting, it presents four conceptual categories of ways to link the two. The article defines these as structural, adaptive-incremental, devolved, and holistic/advanced. No one approach will be correct for all institutions. Even where there is a system in place to link planning and budgeting, this is unlikely to be enough unless there is firm, skilled, aligned, and distributed leadership to keep the system on track toward institutional goals.

Abstract: After its first application nearly 40 years ago, responsibility center budgeting/responsibility center management (RCB/RCM) is now in place at nearly 70 major North American universities. An unstudied fact is that despite its popularity RCB/RCM is rarely deployed to its fullest extent. Instead, it usually exists in parallel with conventional planning and budget models. This study asks why, instead of fully implementing RCB/RCM, universities have chosen to apply it partially. The study finds multiple explanations. On the revenue side, some universities hold back a portion of income to create funds that are used to underwrite institution-wide strategies or subsidize mission-central academic programs that cannot be fiscally sustained under RCB/RCM. In other cases, revenue is held back to fund shared “public utility” services, while in still others the practice of holding back revenue for allocation by some other means is due to difficulty in drawing a functional line between the “academic” and the “non-academic.” On the cost side, some universities have limited the application of RCB/RCM in order to limit market behavior and forestall “fragmentation” (Burke 2007). The study points to several problems in both the practice and theory of RCB/RCM. For example, models meant in theory to complement RCB/RCM may in practice compete with it or promote monopolistic behavior.

Abstract: Looking for tools to help make your next planning or campus project easier? SCUP’s Resource & Budget Planning Advisory Group generated practical analyses of and insights toward tools and processes that can help you today and with projects to come. Integrated Resource and Budget Planning at Colleges and Universities is the culmination of several years of discussions, face-to-face roundtables, conference calls, and virtual meetings. There is a bit of opinion and some original research, but this publication is mostly very practical descriptions, analysis, and insights into tools and processes. We hope you find it to be informative, interesting, and useful. Each chapter will give you a tool that was crafted by experienced, on-campus peer-practitioners.