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Implementing the Plan

Formulating the Plan

In its 2021 RCM Review Committee Report, the committee responsible for the university’s inaugural five-year review of the RCM budget model made 37 recommendations focused on improving alignment between budget and finance processes and university priorities, strengthening support for interdisciplinary collaboration, and introducing a greater sense of clarity about how the budget works and transparency about how budget-related decisions are made at the university. 

In the time since the completion of the RCM review, a team comprised primarily of staff members from University Finance and Administration and the Office of University Strategy have worked, in collaboration with leaders from across central admininstration and Chancellor-led units, to develop a strategy for addressing the issues and challenges identified by the RCM Five-Year Review Committee through their recommendations.

The result of these efforts is a four-part implementation plan, inclusive of the following work streams: 

  • This work stream includes the RCM Five-Year Review Committee’s recommendations related to aligning the budget model with university priorities, including Rutgers’ commitments to its public mission, interdisciplinary collaboration, and academic excellence across all disciplines. 

    Through this work stream, the recommendations become actionable:

    • Create clear funding distribution mechanisms 
    • Establish incentives for academic excellence 
    • Reserve funding for student support 
    • Encourage interdisciplinary collaboration 
    • Communicate leadership priorities 
    Continue to the work stream page for additional information.

  • This work stream responds to the RCM Five-Year Review Committee’s recommendations that relate to enhancing clarity, transparency, the mechanisms for input on the budget and the budget process, as well as the timing and structure of the university’s annual budget process.

    The budget process and adjoining committee work to:

    • Improve effectiveness of advisory model
    • Synchronize advisory process with budget cycle
    • Provide greater stability in financial planning
    • Develop framework for tuition split review
    Continue to the work stream page for additional information.

  • This work stream captures the RCM Five-Year Review Committee’s recommendations about ways to improve communication, education, and training, from calls for specific, targeted training for those with budget responsibility and tailored tools and templates to facilitate activities with complex budgetary components to requests for regular, universitywide communication by leadership about budget priorities and related decision-making criteria.

    Through communication and education, enhancements will be made to:

    • Revise current terminology 
    • Create educational infrastructure for RCM
    • Provide debt portfolio details
    • Increase transparency about debt service
    • Establish a catalog of services for support units
    • Create effective mechanisms for input
    • Improve understanding of the budget model
    Continue to the work stream page for additional information.

  • This work stream addresses recommendations made by the RCM 5-Year Review Committee that relate to the underlying assumptions and quantitative measures that are incorporated into the university’s budget model. This includes assessment of the recommendations, feasibility studies, the identification of potential solutions, and where necessary, financial modeling to evaluate the impact of proposed changes.

    Cost allocation recommendations aim to:

    • Ensure Research Administration support costs include proportional grant expenditures and Facilities and Administration rates
    • Exclude training grant expense from cost allocation
    • Exclude equipment grant expenditures without acquisition costs or ongoing support requirements
    Continue to the work stream page for additional information.

The committee’s report offers a candid and direct summary of the challenges associated with the budget model. More important, it offers pragmatic, actionable recommendations for improving RCM at Rutgers.

Jonathan Holloway

President and University Professor

Rutgers, The State University of New Jersey

 

2021 RCM Review Committee Report

The RCM Review Committee submitted a report on their findings to President Jonathan Holloway on June 11, 2021. 

Learn about the review process and view the Committee's report

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