PA 3003: Nonprofit & Public Financial Management
Humphrey School of Public Affairs, University of Minnesota
Spring 2016, Wednesday, 9:45 to 11:00
BruH 131A, 3 Credits
I. Course Description
This introductory course is designed to equip current and future nonprofit and public
managers with the practical financial management tools and analytical techniques they
need to be successful in their careers. Course work is very applications oriented, with case
studies and real-world exercises used to provide managers with the basic concepts and
collaborative methods they need for team project and budget planning, program analysis,
interpreting financial reports, identifying and resolving organizational performance issues.
PA3003 is a core course in the Nonprofit/Public Track Management Minor in the
Carlson School of Management, and is also open to all students who wish to gain a better
understanding of nonprofit and public financial planning and analysis techniques to
become more effective managers, regardless of their specialty. While not a prerequisite,
students will benefit from some prior coursework in accounting and finance.
A technology-facilitated, flexible learning model is used to effectively equip
students with the hands-on participatory tools they need to compete in the new economy.
Students are provided access to a series of short video lessons that may be completed at
their convenience. Class time is dedicated to direct interaction with the instructor and TA,
as students apply those lessons by solving practical case studies in a small team setting.
This Flipped Classroom approach offers each student flexible access to online
tutorials, which consist of both video lessons and short quizzes. In-class, active learning
sessions reinforce these lessons with problem-solving exercises completed in small
teams, with assistance from the instructor as needed. Online and personal tutorial
assistance is also available as students take responsibility for their learning.
The course format generally covers one topic per week, with methodologies
studied individually at the beginning of the week, practical team-based exercises on
Wednesday and individual graded assignments due on Friday:

Online video lessons and quizzes are completed individually before Tuesday
noon to earn participation points. These background lessons must be completed for
students to productively contribute in team learning activities. With these outside
lectures, the class only meets on Wednesdays.

On Wednesday, students participate in team learning activities, developing
practical skills by collaboratively solving case study exercises related to the topic of
the week. Each small team submits its work online, and selected teams present
their solutions at the end of each class, followed by interactive discussions. This
work is ungraded, but counts toward participation points.

For those students who need tutoring assistance, office hours are available on
Wednesday, Thursday and Friday. Online discussion forums are also available for
students to post questions, and review shared answers from the instructor.

Individually completed graded homework on the same weekly topic is submitted
online each Friday evening. Exercises are similar to those completed during the
Wednesday class, and include both individual and small team assignments.
Student workload involves an average of about 30 to 45 minutes of online videos
per week, a semester total of nine ungraded team exercises completed in class, seven
individually graded homework assignments, two graded team case studies and two
exams, all of which are designed to help students apply the concepts and practical
techniques learned in the course.
The total grade consists of 35 percent individual and team graded assignments,
40 percent midterm and final exams, and 25 percent participation. The participation grade
is determined by on-time, successful completion of the online lessons/quizzes, active
participation in Wednesday ungraded team exercises and punctual attendance. The
midterm and final involve analyses of actual budgets and financial reports. Students are
permitted to use one page (front and back) of whatever notes they wish for the exams.
II. Desired Student Outcomes
1. Understand financial management concepts and techniques as an integral part of
nonprofit and public management,
2. Obtain basic knowledge, terminology and working skills in nonprofit and public
budgeting, accounting and financial management,
3. Develop the capability to perform basic budget and financial analysis of nonprofit
and public organizations, and
4. Improve collaborative problem solving and communication skills in a technology
facilitated environment.
III. Instructors
Co-Instructors and a Teaching Assistant share responsibilities for this class. Ms King
is responsible for the first half of the term (through the Midterm Exam), and Mr Gunyou for
the second half of the term. Ms Winter is responsible for tutoring and all grading:
John Gunyou
952-237-7499
jmgunyou@umn.edu
Office: HHH 138
Hrs: Wed 11am, request
Merrill King
952-939-8253
mking@eminnetonka.com
Office: HHH 138
Hrs: Wed 11am, request
Audra Winter, TA
920-629-2674
winte521@umn.edu
Office: HHH 138
Hrs: Thur 6pm & Fri 9am
IV. Learning Design
A. Learning Methods

Online video lessons and quizzes flexibly available to encourage greater
student participation and comprehension, supplemented by class discussions.

Active learning classroom environment, offering direct interaction with the
instructor as students apply their knowledge by solving practical exercises and
case studies in both individual and small team settings.
B. Assignments
Students are expected to individually complete the weekly three or four video
lessons and quizzes by Tuesday 12:00 noon. Study Guides are provided so students can
take notes during the Online Video Lessons to help answer the associated Quizzes. The
timely completion of these online lessons counts toward individual participation points,
which cumulatively represent 25 percent of the total grade. To receive credit for each quiz,
all questions must be answered correctly, and students only have three attempts to do so.
As a result, it is important that videos be carefully viewed for understanding, and
that students not simply guess repeatedly at the answers. The flexibility provided with
online lessons allows students to work ahead and at times most convenient to their
schedules, and also requires them to accept responsibility for their learning.
Wednesday attendance is mandatory, and students complete ungraded exercises
during class, working collaboratively in small teams of three. Students must complete the
video/quiz lessons to participate on these teams, and selected teams present their
solutions at the end of each class. The purpose of this group work is to cooperatively learn
from each other, so all students are expected to actively engage with their teammates.
This work is ungraded, but counts toward participation points.
There are seven individually completed graded assignments, plus two team case
studies, which together constitute 35 percent of the final grade. Graded assignments are
similar to the ungraded problem sets, and are due online by 9:00 PM Friday. The two team
case studies are completed during Wednesday class, and all students in the group receive
the same grade. All team members are expected to contribute to the overall project by
doing a fair share of the work and helpfully communicating with other team members.
Because the weekly assignments build on and complement each other, students
are strongly encouraged not to fall behind. Should unavoidable conflicts or unanticipated
issues arise, students are responsible for immediately communicating with the instructor
and TA before the assignments are due to ensure they are completed in a timely manner.
No excuse is accepted for tardy notifications, and “extra credit” is not an option.
Midterm and final exams constitute 40 percent of the total grade. The midterm
involves preparation and analysis of a budget, and for the final, analysis of the annual
financial report of an actual nonprofit organization. The midterm and final exams provide
an opportunity for students to demonstrate the financial analytical and communication
skills they have learned.
C. Student Assessment
Rather than simply test rote retention, learning assessments are designed to allow
students to demonstrate proficiency in practical, employable knowledge and experience.
As in the professional world, the course emphasizes a combination of individual and team
problem solving, all of which is graded accordingly. Respective values are:
Video/Quiz Preparation (10 @ 1pt each)
Team Ungraded Assignments (9 @ 1.5pts each)
plus Class Attendance & Participation (1.5pts)
Individual Graded Assignments (7 @ 3pts each)
Team Case Studies (2 @ 7pts each)
Exams (2 @ 20pts each)
Total
10 points
15
21
14
40
100 points
Assignments are expected to be complete, concise and on time. Graded homework
will not be accepted after the deadline without the express permission of the instructor,
which will only be provided for unavoidable or legitimate circumstances. Students are
responsible for immediately notifying the instructor or the TA before class or due dates
when such issues may arise, and for arranging to promptly submit any missed
assignments when due, or as soon as possible thereafter.
Students are encouraged to use the Excel spreadsheet templates and hints
provided on Moodle. Grading levels are:
Grade
Minimum Points
A
AB+
B
BC+
C
CD+
D
DNo Credit
93.3 and above
90.0
86.7
83.3
80.0
76.7
73.3
70.0
66.7
63.3
60.0
less than 60.0
The University of Minnesota grading system utilizes a plus and minus scale based
on a 4.000 cumulative grade point scale in accordance with the following:
A
AB+
B
BC+
C
CD+
D
4.000
3.667
3.333
3.000
2.667
2.333
2.000
1.667
1.333
1.000
Outstanding achievement relative to course requirements
Achievement significantly above course requirements
Achievement that fully meets course requirements
Worthy of credit, even though it fails to meet requirements
An Incomplete may be assigned at the instructor’s discretion if, due to extraordinary
circumstances, the student was unavoidably prevented from finishing the course work. A
written agreement will specify how and when the unfinished work will be completed.
D. Resources
 Moodle. This course has a U of MN Moodle 2.8 site. All assignments,
including required video lessons, quizzes, power-point presentations,
announcements, discussion forums, grades and homework templates are
posted on this site. Students are strongly encouraged to check the Moodle
site regularly for any course changes.
 Online lessons. Video lessons are available on Moodle. Each weekly topic
includes three or four video lessons that average about nine minutes each.
The lessons are not merely taped lectures, but rather, are designed to
acquaint students with specific topics. Study guides are provided so students
can take notes during the video lessons to help answer the associated
quizzes, which gauge student participation and comprehension.
 Excel worksheets. Students are encouraged to use the Excel spreadsheets
and hints that are provided on Moodle for selected assignments. For those
students not familiar with Excel, YouTube video tutorials and Tip Sheet links
are provided on Moodle. On request, the TA will offer Excel tutoring sessions
early in the term.
 Supplemental Readings. Finkler, Steven A., et al. Financial Management for
Public, Health, and Not-for-Profit Organizations. Pearson. All video lessons
and exercises are provided on Moodle, so supplemental readings in this text
book are optional. The book may be purchased or rented online at:
http://instructors.coursesmart.com or accessed at e-reserves.
E. Assignment Deadlines and Attendance
The flipped classroom model requires that students accept responsibility for their
learning by completing the preparatory video lessons and quizzes before the assigned
deadlines to enable their active and productive participation in the Wednesday team
learning activities. This online flexibility allows students to work ahead and at times most
convenient for their schedules, so the assigned preparatory work must be completed by
the deadlines to receive participation credit. Participation points will be deducted for
absences, repeated tardiness and video/quiz lessons not appropriately completed.
Timely completion of the assigned videos and quizzes ensures that students do not
unfairly receive credit for the Wednesday in-class team participation points when they rely
on other classmates who did complete the assigned background material on time. To that
end, students must successfully complete the assigned video/quiz lessons to productively
participate on the Wednesday team exercises.
To receive participation credit for the background quizzes, all questions must be
answered correctly, and students only have three attempts to do so. As a result, it is
important that videos be carefully viewed for understanding, and that students not simply
guess repeatedly at the answers. This expectation of responsible preparation reflects the
professional world, where any failure to meet assigned deadlines can compromise the
performance of other team members and the organization.
Graded homework will not be accepted after the deadline without the express
permission of the instructor, which will only be provided for unavoidable or legitimate
circumstances. Attendance at all Wednesday active learning sessions is required.
Students are expected to be prepared and be on time so they can actively participate in
team assignments and class discussions. “Extra credit” is not an option in this course.
When unexpected circumstances arise to prevent attendance or completion,
students must notify either the instructor or TA before class and before due dates.
This expectation is similar to that of every employer in the business world. You can not
simply fail to show up; you must let your supervisor know ahead of time, not after the fact.
F. University Policies
Academic Dishonesty will not be tolerated, and the University of Minnesota’s
Student Conduct Code will be strictly applied to ensure an environment that promotes
academic achievement and integrity. Students are expected to do all their own work,
complete all graded assignments by themselves and not discuss or share their work
with others, with the sole exception of the two team case studies and weekly ungraded
problem sets, which are collaboratively completed in teams of three. Students are also
permitted to use one page (front and back) of whatever notes they wish for the midterm
and final exams, and may use but not share a calculator. FAQ on scholastic dishonesty.
Appropriate use of course materials. Students are encouraged to make liberal
and effective use of the universally available YouTube videos and PowerPoints provided
for this class; these resources are the equivalent of traditional textbooks. However, broadly
disseminating transcript-like notes or accepting compensation for taking and distributing
such notes undermines intellectual property rights, and violates the shared norms and
standards of the academic community. Similarly, personal electronic devices may not be
used in the classroom without the explicit permission of the instructor.
Stress Management. Students may experience a range of issues that can cause
barriers to learning, such as strained relationships, increased anxiety, alcohol and drug
problems, feeling down, difficulty concentrating or lack of motivation. These mental health
concerns may lead to diminished academic performance, so please be sure to let the
instructor or TA know if and when such issues arise. A broad range of confidential mental
health services is available to assist students with these and other concerns. Counselors
are also available through the Humphrey Student Services office at 612-624-3800 to help
students address immediate concerns.
Safe and respectful environment. The University of Minnesota provides equal
access to and opportunity in its programs and facilities, without regard to race, color,
creed, religion, national origin, gender, age, marital status, disability, public assistance
status, veteran status, sexual orientation, gender identity, or gender expression. The
University is also committed to providing a safe and respectful environment free of sexual
harassment. Such conduct interferes with students’ performance by creating an
intimidating, hostile, and offensive academic environment, and will not be tolerated.
V. Course Outline
1-20 (Wed) Introduction
Course procedures and expectations, management context.
Complete video lessons & quizzes before first class:
1-1 Online Lesson Overview
1-2 Financial Management
1-26 (Tue) Budget Planning
Budget planning process and methodologies.
Complete video lessons & quizzes (1pt):
2-1 Budget Process
2-2 Operating Budgets
2-3 Capital & Cash Budgets
2-4 Accounting Practices
1-27 (Wed) Ungraded Assignment 1: 1-1, 1-2 (1.5pt)
1-29 (Fri) Graded Assignment A Due: A-1(1pt), A-2(2pt)
2-2 (Tues) Budget Concepts
Types of budgets, nonprofit issues and forecasting.
Complete video lessons & quizzes (1pt):
3-1 Types of Budgets
3-2 Flexible Budgets
3-3 Performance Budgets
3-4 Budget Issues
3-5 Forecasting
2-3 (Wed) Team Ungraded Assignment 2: 2-1, 2-2 (1.5pt)
2-5 (Fri)
Individual Graded Assignment B Due: B-1(1.5pt), B-2(1.5pt)
2-9 (Tue)
Cost Analysis
Budget costing concepts and breakeven analysis.
Complete video lessons & quizzes (1pt):
4-1 Direct & Indirect Costs
4-2 Fixed & Variable Costs
4-3 Average & Marginal Costs
4-4 Breakeven Analysis
2-10 (Wed) Team Ungraded Assignment 3: 3-1, 3-2 (1.5pt)
2-12 (Fri) Individual Graded Assignment C Due: C-1(1pt), C-2(2pt)
2-16 (Tue) Capital & Cash
Capital programming and working capital management.
Complete video lessons & quizzes (1pt):
5-1 Capital Planning
5-2 Time Value of Money
7-1 Cash Management
2-17 (Wed) Team Ungraded Assignment 4: 4-1, 4-2, 4-3 (1.5pt)
2-19 (Fri) Individual Graded Assignment D Due: D-1(1pt), D-2(1pt), D-3(1pt)
2-23 (Tue) Financial Control
Internal control and variance analysis.
Complete video lessons & quizzes (1pt):
8-1 Internal Controls
8-2 Balanced Scorecard
8-3 Variance Analysis
2-24 (Wed) Team Ungraded Assignment 5: 5-1, 5-2, 5-3 (1.5pt)
3-1 (Tue)
Team Case Study I
Complete video lesson:
R-1 Midterm review (Chapters 2-8)
3-2 (Wed) Team Case Study I Due In-class (7pt)
3-9 (Wed) Midterm Exam (20pt)
3-14 to 18 SPRING BREAK – no class
3-23 (Wed) In-Class Exercise on Public Finance (no preparation required)
3-29 (Tue) Balance Sheets
Statements of financial position.
Complete video lessons & quizzes (1pt):
10-1 Financial Position
10-2 Assets
10-3 Liabilities & Net Assets
12-1a Nonprofit Statements
10-4 Recording Transactions
3-30 (Wed) Team Ungraded Assignment 6: 6-1 (1.5pt)
4-1 (Fri)
Individual Graded Assignment E Due: E-1(3pt)
4-5 (Tue)
Reporting Results
Activity and cash flow statements.
Complete video lessons & quizzes (1pt):
11-1 Activity Statements
12-1b Nonprofit Statements
11-2 Cash Flow Statements
11-3 Recording Transactions
4-6 (Wed) Team Ungraded Assignment 7: 7-1 (1.5pt)
4-8 (Fri)
Individual Graded Assignment F Due: F-1 (3pt)
4-12 (Tue) Government
Financial statements for government organizations.
Complete video lessons & quizzes (1pt):
12-2 Fund Accounting
13-1 Government Statements
13-2 Modified Accrual
4-13 (Wed) Team Ungraded Assignment 8: 8-1 (1.5pt)
4-15 (Fri) Individual Graded Assignment G Due: G-1(3pts)
4-19 (Tue) Statement Analysis
Analyzing financial statements and ratios.
Complete video lessons & quizzes (1pt):
15-1 Reviewing Statements
15-2 Reviewing Notes
15-3 Common Size Ratios
15-4 Other Ratios
4-20 (Wed) Team Ungraded Assignment 9: 9-1 (1.5pt)
4-26 (Tue) Team Case Study II
Complete video lesson & quiz (1pt):
12-3 Healthcare Statements
4-27 (Wed) Team Case Study II Due In-Class (7pt)
5-3 (Tue)
Final Exam Review
Complete video lesson:
R-2 Final review (Chapters 10-15)
5-4 (Wed) Final Exam (20 pt)
John Gunyou, Co-Instructor
Education:
U.S. Air Force Academy
University of California (UCLA)
University of Colorado
B.S.
Economics
M.A.
Economics
M.P.A. Finance
Public sector: Three Rivers Park Board Chair, Met Council TAB Board, Minnetonka City
Manager, Minnesota Commissioner of Finance, Minneapolis Finance Director, Minnesota
Office of Technology Executive Director, Denver Regional COG Economist.
Nonprofit & Private sectors: State Arts Board Treasurer, MPR Chief Administrative
Officer, Jungle Theater Board, Onvoy Internet President, Omni Investments President,
BBC Financial Consulting Partner, Hamline University Assistant Professor.
Interests: Wife Kim, four daughters & one son (25 to 37), one grandson, hiking, biking,
camping, writing, carpentry, all sports.
Merrill King, Co-Instructor
Education:
Princeton University
University of Texas
B.A.
Political Science
M.P.A. LBJ School of Public Affairs
Experience: City of Minnetonka Finance Director & Treasurer, Minnesota Executive
Budget Officer, Texas Parks & Wildlife Budget Manager, Travis County Texas Budget
Analyst, Texas Governor’s Office Budget Analyst, City of Dallas Financial Analyst.
Professional: Government Finance Officers Association (GFOA) Budgeting & Fiscal
Policy Committee Chair, Women’s Public Finance Network Chair.
Interests: Two adult sons
Audra Winter, Teaching Assistant
Education:
High school: Manitowoc, WI Lutheran High School
College: Completing final year in Carlson School of Management,
Double major in Public & Nonprofit Management and Finance
Employment: Finance & Administration Intern at the Smithsonian's National Zoo in
Washington, D.C.; Intern at Manitowoc County Domestic Violence Center; Purchasing
Intern at Formrite Companies, Manitowoc, WI; Tour Guide/Visitor Services at Wisconsin
Maritime Museum.
Interests: Track & Field, playing piano, adventuring, family and friends.