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Model Structure

The creation of a decentralized budget model requires Drexel’s divisions and departments to be classified as either Primary Units (Colleges/Schools, Drexel Network, Auxiliaries, and Centers & Institutes) or Administrative and Support (A&S) Units (all remaining units not classified as Primary Units, primarily institutional “service providers” such as Enrollment Management or Facilities).

Primary Units

Primary Units consist of Academic Units (including Network programs), Centers & Institutes, Athletics and Auxiliaries. These units are often referred to as “responsibility centers” under RCM or incentive-based models, and are characterized by their ability to generate revenues through various activities. Among other characteristics, Primary Units tend to share the following features:

  • Ability to influence revenue generation
  • Cover direct costs with generated revenue
  • Fully-allocated administrative (central) costs
  • Accountable for performance, retaining both surpluses and losses

Administrative & Support Units

Administrative & Support Units represent the remaining, non-revenue generating units classified within the model. Each unit’s costs are allocated to the Primary Units based on a common cost driver which best reflects a Primary Unit’s relative consumption of services provided by the respective A&S unit. A&S units are defined in correlation with the organizational structure and respective management responsibilities of the University. Among other characteristics, Administrative & Support Units tend to share the following features:

  • Limited-to-no ability to influence revenue
  • Provide services and/or support to Colleges, Schools, Centers & Institutes, and Auxiliaries
  • Accountable for optimal service levels and fiscal performance
  • Encouraged to justify funding levels through benchmarking