Cindy Bertrand, CPA & Heather Carpenter, MMNA 6/3/2009
Syllabus EDLD503 2009.doc
Course Title: Financial Management for Nonprofit Organizations / EDLD 503 Class Meets:
Pre-Sessions: Mon June 8, 15, 22 6-8pm, Tutorial Sessions: Monday’s 5-5:45pm July 6-Aug 17 Regular Sessions: Mon & Wed, 6-9pm, July 6-August 19, 2009
Faculty: Cindy Bertrand, CPA Office (858) 795-2030, Best Contact email at
cbertrand@cbiz.com Office Hours: Available Mon-Wed-Fri 9:00am-4:00pm At Mayer Hoffman McCann, P.C., 10616 Scripps Summit Court, San Diego, CA 92131 Call or email for appointment Heather Carpenter, 925-984-7705, hcarpenter@sandiego.edu Office Hours: Available Mon-Thursday 10-3 or other times by Appointment. At Caster Family Center for Nonprofit Research, MRH271 Campus Classroom: MRH 211 Summary Description: This course will prepare students to oversee the financial management of nonprofit organizations by focusing on four areas: key financial concepts, financial statement presentation, accounting and reporting, and operational issues – emphasizing the links between accounting staff, program staff, fundraising staff and board of directors. You took a self-assessment test so that we could gauge your level of knowledge and expertise in nonprofit finance. If you received an e-mail from us, you are required to attend the three presessions in June to learn and gain an understanding of the basic nonprofit financial management concepts. Based on your participation and learning during the pre-sessions you may or may not be required to attend a tutorial session. Course Objectives: To provide students with working knowledge of: • Key Financial Concepts (covered during pre-sessions) including: Cash versus accrual basis accounting, funding accounting and internal financial accounting, fixed assets, investment income, gains and losses and endowment funds, contributions, pledges and non-cash contributions. • Financial Statement Presentation including: balance sheets, income statements, cash flow statements, year to-date financial statements, comparative financial statements. • Accounting and Reporting including: cost accounting, selecting an independent auditor, reading audited financial statements, government reporting requirements. • Operations including: the role of the board and treasurer, budgeting, cash flow management, internal controls, investments and profit, communication systems that link program with accounting, capacity building systems for boards and staff. Required Reading: • Management Control in Nonprofit Organizations – Robert N. Anthony, David W. Young, McGraw-Hill Companies, 2002, ISBN-13: 9780072508253 • Streetsmart Financial Basics for Nonprofit Managers, Thomas McLaughlin, Jossey Bass, 2002, ISBN 0-471- 20570-2 • The AICPA Audit Committee Toolkit: Not-For-Profit Organizations – Internal Control: A Tool for the Audit Committee (pgs. 41-53) – on eReserves • Nonprofit Operations Toolkit – on eReserves • Nonprofit Unified Chart of Accounts - http://nccs.urban.org/projects/ucoa.cfm Plagiarizing & Recycling: Copying, plagiarizing, and/or recycling of other works including student projects is not allowed. You must cite your references. Violations will be reported to the University in accordance with University Policies.
Cindy Bertrand, CPA & Heather Carpenter, MMNA 6/3/2009
Syllabus EDLD503 2009.doc
Required Assignments / Grading Criteria: 1) Homework Case Assignments - Approx 20pts Each week you will be assigned a case and be expected to answer the questions to the case. 4 Case studies each worth 5 points. 2) Mid-Term Exam – Take Home Approx 15 pts This will be a take home case study to gauge your understanding of the concepts learned in class and through your case studies. 3) Final Exam - Approx 30 pts This is to test your grasp of the financial concepts, principles, and terms covered in this class and demonstrate your ability to interpret financial information. You will be required to answer multiple choice and short answer questions based on reading, handouts, and lectures. 4) Final Project – With Team, Outline 5, Written Report 15, Presentation 5 =Total 25pts You will work in teams and be required to assess an organization’s internal controls using the concepts and materials learned in class. The project will be graded based on: 1. Outline: due in Class 7 - teams will submit the outline for their internal controls assessment and report to the class the progress they have made to date, as well as any challenges they have had along the way. 2. Report: The project should include a written report in APA format about your assessment of internal controls utilizing AICPA’s Audit Committee ToolkitInternal Control – A Tool for the Audit Committee Handout – and include this completed handout as Appendix A in your report. a. Teams are required to complete all steps and analyze organizational level internal controls as well as choose one area to analyze activity level controls. b. Most reports are 15-30 pages in length. c. Reports must include a 1-2 page reflection paper written by EACH member of the team about the project process. This reflection paper should connect your learning’s of leadership to the project (e.g. how leadership was used working as a team, how leadership was used working with the organization). 3. Presentation - A ten-minute oral presentation. You will present to your classmates as if they were your nonprofit Board or staff, explaining your project research, findings, results and recommendations. You are expected to be comprehensive in your written report but brief, providing an overview in your oral presentation. Do not provide an overview of the organization during your presentation, for we only want to know about the internal controls and your team’s recommendations. You will be graded by your instructor and your classmates 4. Schedule: a. Class 1 – Form Teams and Decide on Organization (This must be an organization in which you have access to its financials as well as information about its financial and operational practices). b. Class 6 — Meet with team on project outline. c. Class 7 – Internal Controls Outline due – teams will submit the outline for their internal controls assessment and report to the class the progress they have made so far as well as any challenges they have had along the way. d. Class 12 - Final Project Report Due and Class Presentation – Hard copy report and 10 minute oral presentation to classmates. 5) Class Attendance & Participation 10pts Attending class and actively participating in class discussion is a course requirement. There are no “excused” absences. If you miss class, see a classmate for handouts, info, or recording. Late Assignments – Loses credit at 20% per day. Homework must be printed and turned in to the instructor. Emailing homework is NOT permitted, unless permission is given in advance by instructor.
Cindy Bertrand, CPA & Heather Carpenter, MMNA 6/3/2009
Syllabus EDLD503 2009.doc
Curriculum th
June 8 : Pre-session 1 Nonprofit Financial Concepts th
June 15 : Pre-session 2 Financial Statements nd
June 22 : Pre-session 3 Review th
July 6 Class 1: Operations and Internal Controls Readings due: Anthony, Chapter 1; McLaughlin Chapters 17, 18; Nonprofit Operations Toolkit; The AICPA Audit Committee Toolkit: Not-For-Profit Organizations – Internal Control: A Tool for the Audit Committee In class: -Operations • 10 Nonprofit Operations Success Steps • Insurance • Risk Management • Banking -Internal Controls • Selecting an Accountant • Segregation of Duties • Filing/Record Keeping and Expenses -Form Teams for Class Project July 8th Class 2: Operations and Internal Controls In class: -Operations and Internal Controls Cont. -Case Analysis 1-1 Hamilton Hospital – due 7/15 July 13th Class 3: Financial Analysis Readings due: Anthony Chapters 3 and 4; McLaughlin Chapter 5 In class: - Financial Statement Analysis • Use key ratios covered in McLaughlin (current ratio, quick ratio, reserve ratio, fundraising return ratio) • Resources • Cash Flow Liquidity/Capital • Budget vs. Actual • Activity by Funding Source • Investments July 15th Class 4: Financial Analysis Homework due: Case Analysis 1-1 Hamilton Hospital In class: -Financial Statement Analysis Cont. -Case Analysis 3-2 The Athenaein School – due 7/22 July 20th Class 5: Form 990 & Review and Audits -Readings due: Anthony Chapter 11, Guidestar, McLaughlin Chapter 8 In class: -Overview of the new form 990 -Reviews and Audits
Cindy Bertrand, CPA & Heather Carpenter, MMNA 6/3/2009
Syllabus EDLD503 2009.doc
nd
July 22 Class 6: Reviews and Audits Homework due: Case Analysis 3-2 The Athenaein School In class: -CPA Panel -Meet with group -Case Analysis 11-1 Hospital San Pedro – due 7/29 th
July 27 Class 7: More Accounting Standards -Readings due: Anthony Chapters 5 and 6 -Homework due: 5 Questions for ED panel about internal controls. Group Outline In class: -Accounting for: • Fiscal Sponsorship or Affiliated Organizations • Review Cost Accounting Including Employee Time Tracking th
July 29 Class 8: More Accounting Standards Homework due: Case Analysis 11-1 Hospital San Pedro In class: -ED Panel -Handout Take Home Midterm: Case Analysis 4-4 Menotomy Home Health Services – due 8/3 August 3rd Class 9 Midterm due: Case Analysis 4-4 Menotomy Home Health Services In class: -Go over midterm -Team Meetings August 5th: Class 10 Pricing and Profit & Accounting for Contributions Readings due: Anthony Chapter 7, McLaughlin Chapters 13, 14 In class: -Pricing -Profit -Capitalization and Deprecation -Accounting for: • InKind Contributions • Review Reporting for Restricted and Unrestricted Contributions • Other Fundraising Activities -Case Analysis 10-2 Urban Arts Institute due 8/17 Aug 10th Class 11 Financial Planning Readings due: Anthony Chapter 10, McLaughlin Chapters 11, 12 In class: -Creating an Organizational Budget • Budget Planning • Estimating Costs o Staff Costs o Program Specific Costs o Admin Costs o Fundraising Costs o Common or Shared Costs o Cost Allocation • Forecasting Income o Cash Flow Projection • Board Approval
Cindy Bertrand, CPA & Heather Carpenter, MMNA 6/3/2009
Syllabus EDLD503 2009.doc
th
August 12 Class 12 Presentations Homework due: Team Class Project Report and Presentation In class: -Students present final projects, 10 minutes each. Present as if you were presenting to your nonprofit management or Board of Directors. Allow for questions and answers from classmates. Attendance is mandatory. th
August 17 Class 13 Financial Planning Homework due: Case Analysis 10-2 Urban Arts Institute In class: Review th
August 19 Final Exam -Attendance is mandatory