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The University of Edinburgh Resource Allocation Model

The University of Edinburgh Resource Allocation Model. The Role of RAM. The Resource Allocation Model is a tool to inform, and be informed by, strategic and operational decisions. RAM. Principles of RAM. Income is attributed where earned Allocations based on strategic drivers/goals

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The University of Edinburgh Resource Allocation Model

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  1. The University of Edinburgh Resource Allocation Model

  2. The Role of RAM • The Resource Allocation Model is a tool to inform, and be informed by, strategic and operational decisions RAM

  3. Principles of RAM • Income is attributed where earned • Allocations based on strategicdrivers/goals • Recognition that support occurs at many levels of the organisation across Colleges and Support Groups

  4. Principles of RAM • An efficiency mechanism has been built in to the model in order to encourage efficiency gains & strategic decision making without negatively impacting on effectiveness and responsiveness • Forecasted Income will be used with a validation factor of +/- 3% accuracy to encourage forecasting accuracy over time • Where practical and appropriate, RAM drivers will be reflected in TAG

  5. Principles of RAM CHSS CSE CMVM ISG CSG USG Allocation Income Attribution MINUS Surplus Contribution Surplus Restricted attributed income College/SG Budget Strategic Fund Contribution Strategic Allocation in Planning Round Universal Activity SG Budget College/SG Budget University Services Unit Specific Services SG Budget CHSS Allocated Budget CSE Allocated Budget CMVM Allocated Budget ISG Allocated Budget CSG Allocated Budget USG Allocated Budget Produces Allocated Budgets

  6. Principles of RAM Universal Activity • Activity that has no logical driver • Largely not related to size and shape of organisation • Examples include GaSP, Court, Compliance functions University Services • Services provided across the University • Drivers are largely similar across all areas, although services may be tailored to meet varying needs • Example includes Student Recruitment & Admissions Unit Specific Services • Services unique to specific units • Drivers are understood • Example includes 24 hour security

  7. Surplus Annual Deposits Cumulative Reserves Annual Withdrawals General Reserve Fund Annual Surplus Contribution Capital Expenditure Budget In-year Savings Draw-down Includes Local Reserves Managed Assets

  8. Estates Investment Budget Building Program Capital Expenditure Budget Estates Investment Budget Restricted attributed income Strategic Fund Contribution

  9. Proposed RAM Process • It is expected that RAM will be iterative Discussion and negotiation during planning round

  10. Service Expectations • Service expectations should be set priorto Resource Allocation • It is expected that they remain high level Service Expectation Statements • These should be monitoredthroughout the period • Service requirements should be reviewed regularly in consultation with service providers • This falls outside the scope of the RAM project Monitoring Cycle

  11. Assumptions Made • Cost and allocation drivers will be used to encourage efficient use of space, staff and resources • Efficiency targets will be set at appropriate levels to maintain responsiveness to changes in need and environment • Using efficiency targets can be used to smooth the transition process and encourage better understanding of true cost of service / activity requirements • “Monopoly Money” has been used in the model (i.e. the figures in the model are a fiction)

  12. Prototype Overview

  13. Strategic Summary Sheet

  14. Strategic Decisions

  15. Contribution to Surplus

  16. Contribution to Strategic Fund

  17. Strategic Decisions

  18. Gross Income Attribution

  19. Unrestricted Income Attribution

  20. Restricted Income Attribution

  21. SG & Corporate Budgets

  22. Support Group Indirect Cost Contributions Cost Drivers Forecast Data Contribution Calculations Contribution Rates SG Budget Line Contribution Rates (Universal Activity & University Services) Forecast Data Unit Specific Services Support Group Budgets

  23. Support Group Contribution Rates

  24. Support Group Contribution Rates

  25. Support Group Budget Lines

  26. Support Group Budget Lines

  27. Budget Allocation

  28. RAM Tabs

  29. RAM Tabs

  30. Next Steps

  31. Feedback • Does the model reflect the outcomes you envisaged? • The Support Group budgets in the model are built up by changes to service requirements of internal customers. Does that meet your expectations? • Provision will need to be made for pre-negotiation of these changes.

  32. Thank you Do you have any immediate questions?

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