You have been appointed by the new executive director to chair a committee of
agency administrators charged with (1) conducting an inventory of the agency’s
various services and activities, (2) recommending a program structure, and (3) recommending
responsibility center designations for each program. The committee
has completed an inventory of agency services and activities (see the following
list), including the number of clients served and an approximation of annual
expenditures. Based on this inventory, the committee must now make a recommendation
to the executive director on a program structure and the designation of
responsibility centers. As chairman, what will be your committee’s recommendation?
How many programs will be in your program structure? What are they?
What is the rationale for each program? What type of responsibility center designation
(expense, revenue, profit, investment) will you assign to each program?
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