Responsibility Center Management was introduced at Clarion University in the Fall of 2011.
The introduction to the manual states, "Responsibility Center Management (RCM) is a form of decentralized financial management that has been successfully used at institutions of higher education for approximately thirty years. The system is designed so that proper incentive and reward, reflecting true cost and benefit, are attached to all management decisions with those same managers being responsible for the impact of decisions made.. . Responsibility Center Budgeting is the application of RCM principles to budgeting and financial management. It has largely replaced incremental budgeting techniques that separate responsibility from budgetary authority and allow resource misallocations to persist. With Responsibility Center Budgeting, decentralized budgeting and financial decisions are made by managers of Responsibility Centers (RCs) who are held accountable for the impact of those decisions. This manual presents guidelines for the implementation of RC financial planning at Clarion University."
