Resource Management Model

The term to describe the resource distribution model that was developed and adopted at Iowa State University. The model is an adaptation of responsibility-centered management concept that assigns most revenues to the units responsible for generating the revenue and more fully attributes or allocates costs, including costs associated with central support services and administration, to the revenue generating units.

Resource Responsibility Centers

These are the primary resource units that generate revenue and/or receive funding from outside sources.

Administrative Service Centers

These are the primary resource units that provide central administrative and support services to the university.

Resource Management Fund

Funded entirely from general state education appropriations, the Resource Management Fund is distributed to Resource Responsibility Centers.  The distribution of the RMF may change as a result of changes in general state education appropriations or as a result of a strategic leadership decision. The President, in consultation with the President's Budget Cabinet and University Budget Advisory Committee, makes final decisions on the distribution of the RMF.

Direct Expenses

Expenses that are incurred directly by the resource units.

Allocated Expenses

Expenses associated with Administrative Service Centers are pooled into separate expense pools and allocated to Resource Responsibility Centers based on various allocation proxy measures.