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Resource Management Model

Iowa State University utilizes a decentralized financial management model for the development of its annual operating budgets. The Resource Management Model, a responsibility-centered and incentive-driven approach to financial planning and management, is utilized for the development of the university's General University Fund operating budget.

Background

Due to the dynamic environment in higher public education, budget leaders at Iowa State University worked with the university community to develop an alternative budget model that would be more flexible and responsive to the needs of the university. On Jan. 24, 2007, President Geoffroy decided that Iowa State University will adopt the Resource Management Model, which was developed through a series of university committees with broad feedback from the university community. The historical details on the development and implementation of the Resource Management Model are available upon request.

The successful model should:

incorporate incentives that reward high-quality programs
link funding and costs to the responsibilities and performance of units
distribute revenues in a manner that is transparent and informed by data
attribute the cost of central administrative and support services to units that benefit from those services
engage campus in setting priorities for investing resources
work effectively during years of funding growth and decline
increase flexibility and improve ability to conduct multi-year financial planning

The model should not:

drive decisions, but should inform decisions
create internal competition
create emphasis on quantity over quality
cause priorities to be driven by money
erode institutional culture

The development and implementation of the model is considered successful if:

measurable progress is made on the university's strategic plan
university leadership has adequate resources to make strategic decisions and reward quality
the general quality of the university's academic programs are enhanced, or at least maintained
student enrollment targets are met and tuition revenues are maximized
the university experiences growth in sponsored funding and indirect cost recovery revenue
administrative and support services are provided efficiently while maintaining a high level of quality