Trent University today announced its intention to introduce a new approach to budget planning called Responsibility Centred Management (RCM) in 2014/15, following through on a recommendation from the 2012 Trent University Academic Plan and Board approval as one of the President’s goals for the current year.
RCM is an approach to budgeting that emphasizes transparency, a clear account of the costs and revenue associated with the University’s different operations, and incentives to encourage activities that will improve the financial strength of the University. In the long run, the model aims to improve financial sustainability by emphasizing Trent University’s strengths in teaching, research and services; and by supporting selected opportunities and innovations.
“As Board chair, I am very supportive of the RCM model and am pleased to see that President Groarke and the senior administration are moving ahead with its introduction this year,” said Bryan Davies, chair of the Board of Governors. “While RCM will be a gradual process which will take several years to realize its full implementation, I am optimistic that this model will be key to shaping a sustainable financial future for Trent, affirming and securing the University’s unique place in the Canadian university landscape.”
The RCM approach to budgeting being implemented by the University has three key components:
- an attempt to track the University’s revenues and expenditures in a way that makes it clear how and where revenue is generated and costs are incurred;
- budget adjustments made to promote revenue growth and support efficiencies that reduce costs; and
- change funds for academic program and operational initiatives that support the strategic goals of the University.
Budget adjustments that stem from the implementation of RCM will allow the University’s budget to evolve in a way that makes Trent University operations more fiscally sustainable. RCM will be implemented in a way that is sensitive to the institution’s fiscal realities, its contractual obligations and the complexities of achieving a sustainable budget and keeping Trent fiscally strong in the long term.
“There has been significant discussion regarding Responsibility Centred Management. We are committed to budget decisions that are made in an evidenced based way that will continue to draw on Trent’s distinct strengths,” said Dr. Leo Groarke, president and vice-chancellor of Trent University. “RCM is intended to push and pull us in a direction that will make us better able to achieve our academic objectives over time.”
“We are already seeing great interest and enthusiasm for the RCM model among division and department heads at Trent,” added Steven Pillar, vice-president finance and administration. “This is an opportunity for Trent to evolve in a financially sustainable way and in a manner that is fully transparent so that people understand the benefits of this approach over the long term.”
In launching RCM, the University has established a website where all department heads, deans, faculty and staff can learn more about the model.
For more information, please contact:
Marilyn Burns, executive director, marketing & communications, recruitment & admissions, Trent University, 705-748-1011 x6184 or email@example.com