How IRM Works
IRM classifies UTSA's divisions and departments as either Revenue Units or Support Units.
Revenue units include UTSA's colleges, as well as auxiliary units that produce revenue (such as Athletics and Housing). Revenue units have a greater ability to influence revenue that is generated for the campus through direct revenue-producing activities, such as delivering instruction, conducting research or providing services.
Support units tend to have little-to-no influence over revenue that is generated for the campus. Support units include central functions that support all campus units, such as Business Affairs, Facilities and Human Resources.
In aggregate, revenue units are responsible for generating enough revenue to cover the costs of the support units.
Whereas UTSA's colleges were traditionally expected to budget only unrestricted direct expenditures, IRM calls for the colleges to budget for revenues and manage to a bottom line (revenues less expenses). In short, colleges are allocated the revenues that they are responsible for generating.
College deans can grow revenues by utilizing various financial levers, such as:
- Increase online enrollment
- Develop stackable certificate programs
- Increase summer term enrollment
- Launch market-driven degree programs
- Increase class fill rates
- Improve student persistence and retention rates
- Generate more sponsored research
- Improve indirect cost recovery rate
- Attract more non-resident students (net student increase)
- Implement differential tuition based on market demand
- Secure new gifts and external sponsorships
Each year, colleges take a strategic approach to budgeting and carefully consider any historical expenditures that are not critical to the mission of the college or institution for potential removal from the budget. The resulting savings present opportunities for new investments.
Some areas revenue units and support units can review for opportunities to reduce costs are:
- Leverage strategic sourcing and preferred vendor programs
- Evaluate administrative spans and layers for efficiencies
- Eliminate non-essential duplicative services in colleges
- Leverage technology to reduce effort to perform tasks
- Consolidate underutilized sections
- Consider early buyout/retirement options
- Outsource non-core functions
- Optimize use of space
- Adequately maintain infrastructure to avoid costlier breakdown from deferred maintenance
- Streamline functions and operations when possible
Strategic Initiative Fund
IRM provides for a Strategic Initiative Fund that supports university-wide priorities, such as student success, research excellence and revenue growth strategies. Revenue units pay a "participation fee" to the Strategic Initiative Fund based on a percentage of their revenues generated.