Selection and Definition

The creation of a decentralized budget model requires UVA’s divisions and departments to be classified as Activity Centers (Colleges/Schools, Auxiliaries, Athletics, and Centers & Institutes) or Service Centers (all remaining units not classified as Activity Centers; primarily institutional “service providers” such as Information Technology or Facilities). In doing so, the resulting income statement depicts each Activity Center’s revenues, direct expenses, and indirect expenses (i.e. allocations of Service Center costs) to illustrate a “fully-costed” bottom line.  The model structure will be updated as necessary to reflect any changes in the University’s organizational structure including, but not limited to: A) creation of new academic units B) the restructuring (and potential renaming) of existing programs C) administrative restructuring.