What is Resource Allocation and why does the University of Edinburgh need it?
A resource allocation model (RAM) is a methodology for determining where resources should be allocated within an organisation. Resources may include financial resources, technological resources and human resources. In the case of University of Edinburgh, the RAM refers to the allocation of financial resources.
Support Groups use resources to provide services to the Colleges, the University as a whole and to students directly. Resources need to be sufficient to meet the operational and strategic goals of the University. The RAM should provide a framework for determining the distribution of income as well as the approach to funding the costs of common provided services. Strategic investment decisions may, of course, impact on the actual allocation in any single year.
One of the key principles of the RA2018 methodology is to include all sources of income - research, teaching and other income - in one resource allocation process for the University of Edinburgh.
Another driver for change is ‘gross accounting’ with the objective of allocating resources and reporting on a gross income and expenditure basis. Resource allocation at the University of Edinburgh is currently confined to the unrestricted sources of income and allocated on a ‘net’ basis to Colleges and Support Groups, reflecting resources allocated after locally-earned income has been deducted.