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. The model was designed to:

  • Provide a more effective way to accomplish the goals of the university's strategic plan
  • Reward units that focus on high quality education, research, and outreach programs
  • Provide a more accurate link between responsibilities and resource decisions
  • Provide decision-makers with more transparent and relevant information

The principles underlying the Resource Management Model include:

  • Builds in incentives that support university objectives and strategies
  • Distributes revenues to units that generate the revenues, and in a manner that is transparent and easy to understand
  • Allocates central administrative and support service costs to revenue-generating units that benefit from those services
  • Engages campus constituents in the university's financial planning process and financial resource allocation decisions