College of Business And Public Affairs
Department of Accounting, Finance, and Economics
Course Number, Section, Semester: Accounting 751,
Section 020, Summer '05
Course Title: Accounting For Nonprofit Entities
Level and Credit: Graduate, 3 credit hours
Instructor: Robert L. Putman
Class Meets: 6:00-9:55 CDT M & W in Room 207 BA Building Martin Campus
Office Location: BA 229B
Telephone Numbers: Office: 731-587-7305 Home: 731-352-5797
Web Page: http://www.utm.edu/~bputman
TEXTBOOK AND OTHER MATERIALS:
Essentials of Accounting for Governmental and Not-for-Profit Entities, 7th ed. by Engstrom and Copley, ISBN 0-07-282037-3
COURSE PURPOSE, GOALS, AND OBJECTIVES:
This course is a study of nonprofit accounting and auditing principles
with emphasis on state and local governmental entities. Nonprofit accounting
has received much attention in the past 15 years due to growth and increasing
complexities of these types of organizations and an increase in public
awareness of the role of official accountability of public funds. During
this same time frame financial accounting standards setting bodies have attempted
to develop models that provide interested users with meaningful financial
information to aid in decision-making endeavors. In this course we will attempt to strike a
balance of the study of fiduciary and accountability responsibilities of
management with their duties of fair financial reporting to the various
interested user parties.
The objectives of this course include--
1) to learn generally accepted governmental and nongovernmental nonprofit financial reporting principles and the similarities to and differences from those of private business enterprises;
2) to learn external financial reporting requirements of nonprofit entities, to include financial statements, notes, and supplementary information, and to become familiar with the organizations responsible for establishment of these standards;
3) to develop an appreciation for the extensive control and compliance requirements of governmental entities; and
4) to develop an understanding of the comprehensive annual financial report requirements of governmental entities.
By taking this course the student should be able—
1. to develop and utilize abilities needed for decision-making of nonprofit entities including conceptual abilities as well as quantitative analytical skills,
2. to enhance skills in communicating governmental and other nonprofit operating ideas and conclusions, verbally, and in written form,
3. to recognize and be able to research the various financial accounting standards authorities for governmental and nonprofit entities, and
4. to develop and/ or enhance skills in leading class discussions of theoretical constructs as well as case analysis situations of governmental and nonprofit entity financial reports.
RELATIONSHIP TO GENERAL EDUCATION GOALS:
In this course the instructor places a great deal of emphasis on contemporary financial accounting standards of government and nonprofit entities, and communication skills that transfer and validate such standards to the users of the resultant information in their decision-making function. Also organization culture, including ethical and moral, related party actions, and consequential social outcomes are evaluated in the course.
Accordingly, one needs quantitative skills (math, physics, and statistics) as well as qualitative skills (social studies, human relations, and psychology) in order to make good decisions based upon available information. Additionally, good communication skills (English, speech, and writing) are necessary for the student to effectively transmit problem solutions to various audiences. Studies in Religion and ethics present students the background necessary to evaluate ethical and moral policies and actions encountered in their assigned cases.
RELATIONSHIP TO MAJOR FIELD GOALS:
This course brings nonprofit accounting into the accounting major’s curriculum as a supplement to previously studied financial accounting standards for business organizations.
COURSE CONTENT; Presented as a separate schedule (See Tentative Schedule)
The course will consist of:
(1) Classroom participation - (50%)
a) reading assigned chapters in the text and
discussion of the chapters in class,
b) end of chapter assignments and discussion of these in class,
c) reading and discussion of articles and other assignments from the readings list, and
d) quizzes that will be announced in advance.
(2) Project - (50%)
Teams of 3-4 of you will be required to research and present a written and verbal report on a topic assigned to you during the first class meeting. The written and verbal presentations are due on the last day of classes (August 10). There will be four such topics assigned during the semester. The four topics are as follows.
Report 1 - State and Local Government Accounting:
Development of current model.
Report 2 - Governmental Colleges and Universities and GASB #35.
Report 3 – Private Hospitals (Non-government) and SFAS #116 and #117
Report 4 - Reporting on Voluntary Health and Welfare Organizations. (In conjunction with Ex 10-3 in text)
You will be responsible for a written report as a team and a verbal report as individuals. The written report will count 80% and the verbal 20% of the total project grade. The written report should be in good business report form with Introductory, Discussion, Summary, and Reference sections. References should be according to a generally accepted format. The body of the report should be typed, double-spaced, and be between 6 - 12 pages. You should also include an appropriate Title Page.
Letter grades will be assigned as follows:
A - 90%-100%
B - 80%-89%
C - 70%-79%
F - Below 70%
Date Text Reading
1 July 13 Introduction, syllabus, etc. None None
Chapter 1 Q & Es 1-2,1-3, 1-4,1-5, 1-6
2 18 Chapter
2 None Q
& Es 2-2,2-3,2-4,2-5
Chapter 3 Q & Es 3-2,3-3
3 July 20 Chapter 4 None Q & Es 4-2,4-3
Chapter 5 Q & Es 5-2,5-3
5 27 Chapter 8 Q & Es 8-2, 8-3
Chapter 9 Q
& Es 9-3,9-4
GASB 35: Government
Colleges and Universities
6 August 1 Chapter 10 Benson and Glazer Q & Es 10-1, 10-2
7 3 Chapter 11 None Q & Es 11-1, 11-2
Chapter 12 Q & Es 12-1, 12-2
8 8 Chapter 13 Aldhizer, Miller & Moraglio Q & Es 13-2,13-3
9 10 Last Class: Team presentations
Putman, R.L. and R.W. Kilgore. (2003). Measuring
With Government Accounting Standards: GASB 34 Has Created Dramatic Changes in
Government Financial Reporting.
Benson, M.L. and A.S. Glazer. (1998). Coping
with NPO Standards - It's Not Difficult.
Journal of Accountancy. September, 67-74.
GASB Reporting Guidance Expanded to Colleges and
Universities. Journal of Accountancy,
March 2000, Pp 26-27 & Official Release of GASB #35 in J of A March 2000,
4. Aldhizer, III, G.R., J.R. Miller and J.F. Moraglio. (1995). Common Attributes of Quality Audits. Journal of Accountancy. January, 79-82.
5. Other readings will be announced later during the progression of the class.