Columbia University School of Social Work
 
T7125 Financial Management

Overview and Rationale

This course is designed for students in the Social Administration concentration. The course introduces students to the theory and practice of financial management in nonprofit organizations. Students will develop a beginning working knowledge of the elements, concepts, systems, tools and techniques of financial management. Included are such concepts as accounting, budgeting, resource allocation, problems of fiscal control, fiscal record keeping and reporting, cost analysis, continuation budgeting, and activity-based costing. The course uses financial management software, case examples, a required text, lectures, discussions, and journal articles to assist student learning. Students are expected to use microcomputer-based spreadsheet and word processing software to complete several budget exercises.

Learning Outcomes

In this course, students will learn to . . .

  1. Describe effective management control systems for organizations within the nonprofit sector.
  2. Analyze the financial statements of nonprofit organizations and provide constructive feedback on their financial conditions, financial performance, and fiscal vulnerabilities, as well as be able to make appropriate analogies to the private sector.
  3. Conduct a cost analysis of a nonprofit organization's programs, project, or operation and determine unit costs.
  4. Determine a pricing structure and set fees for nonprofit organization service programs or projects.
  5. Distinguish between financial and performance audits and their differing requirements.
  6. Perform risk and financial management assessments of a nonprofit organization.
  7. Utilize differential costs in making executive-level organization and policy decisions (make or buy, keep or stop, expand or reduce, fund or reject, etc.).
  8. Explain common financial management concepts and terminology.
  9. Differentiate between various types of private giving, government grants, contracts, and cooperative agreements, as well as understand their different uses and requirements.
  10. Identify and mitigate ethical and leadership dilemmas that arise during financial analysis and budgeting processes.

Council on Social Work Education Core Competencies

This course contributes toward mastery of the following core areas of social work competency identified by the Council on Social Work Education.

Social workers . . .

  • Apply social work ethical principles to guide professional practice.
  • Apply critical thinking to inform and communicate professional judgments.
  • Engage in policy practice to advance social and economic well-being, and to deliver effective social work services.
  • Assess individuals, families, groups, organizations, and communities.
  • Intervene with individuals, families, groups, organizations, and communities.

Core Content Themes

  • The Management Control Function
  • Financial Characteristics of Nonprofit Organizations
  • General-Purpose Financial Statements
  • Full-Cost Accounting
  • Measurement and Use of Differential Costs
  • Pricing Decisions
  • The Management Control Environment
  • Programming
  • Program Financial Analysis
  • Operations Budgeting
  • Control of Operations
  • Measurement of Financial Output
  • Financial Reporting
  • Operations Analysis and Program Evaluation
  • Systems Design and Installation