RCM at Penn
Responsibility Center Management (RCM)
Penn adopted Responsibility Center Management as our management model in 1974. Under this model, all Schools and Responsibility Centers are responsible for managing their direct revenue and expense. Schools, Resource Centers, and Auxiliaries are expected to incorporate into their budgets an appropriate allocated share of the cost of central administrative services. Administrative centers are expected to maintain budget balance based on their receipt of a portion of these Allocated Cost Charges.
The RCM model documents our common agreement as to how we will aggregate funds and object codes in budgets and financial reports, and how we will measure operating performance and changes in financial position.
Penn adopted Responsibility Center Management as our management model in 1974. Under this model, all Schools and Responsibility Centers are responsible for managing their direct revenue and expense. Schools, Resource Centers, and Auxiliaries are expected to incorporate into their budgets an appropriate allocated share of the cost of central administrative services. Administrative centers are expected to maintain budget balance based on their receipt of a portion of these Allocated Cost Charges.
The RCM model documents our common agreement as to how we will aggregate funds and object codes in budgets and financial reports, and how we will measure operating performance and changes in financial position.