Implementation of the Resource Management Model

Implementation Overview

After a thorough 20-month review, President Geoffroy decided that Iowa State University will adopt the Resource Management Model. This differs from the university's former budgeting model in that the Resource Management Model:

• More accurately links responsibilities with resource decisions
• Provides decision-makers with more transparent and relevant information
• Provides a more effective way to accomplish the goals of the university's strategic plan
• Rewards units that focus on high quality education, research, and outreach programs

The principles underlying the Resource Management Model include:

• Distributes revenues to the Resource Responsibility Centers that generate the revenues, and in a manner that is transparent, easy to understand, and informed by data
• Allocates central administrative and support service costs to Resource Responsibility Centers that benefit from those services
• Insures a greater role for budget advisory committees that will provide advice for budgeting decisions
• Provides university units with the flexibility to create "Strategic Reserve Funds" to be used for strategic multiple-year initiatives and for managing unexpected fluctuations of revenues or expenses

Implementation of the Resource Management Model will be guided by two groups, both with distinct, yet overlapping tasks and responsibilities. A broad array of advisory resources has been identified and will be drawn upon by both groups. These groups are the Leadership and Transition Team and the Operations Team. Overall responsibility for the implementation lies with Executive Vice President and Provost Betsy Hoffman as directed by President Gregory Geoffroy.

Details on the development of the Resource Management Model, including the reports from the Budget Model Development Group and the Budget Model Review and Implementation Committee, are available online at www.iastate.edu/~budgetmodel.

• Recommendation 37 - State Appropriation Distribution to Support Instruction revised July 9, 2008
• Feedback on Advisory Committee Participants Report, by David Maddox of BearingPoint reviews the role of the advisory committees and summarizes feedback from participants.
• Final Project Status Report
• Glossary for Resource Management Model