Course Syllabus

Course Description

The public and non-profit sectors play important roles in society. Together, they provide and produce goods and services that are crucial for a well-functioning society. Fulfilling this role requires answers to the following questions: what goods and services will be produced and provided? Who will benefit from these goods and services? Who will pay for these goods and services? How will spending and revenue be recorded? SPEA-V186 explores these questions.

We first explore the budgetary process that governs spending (which goods and services will be financed and who gets them). Next, we discuss the revenue sources that are used to finance the goods and services (who pays). Finally, we study the accounting documents that are used to record financial activities in the public and non-profit sectors. The course uses practical applications including real budgets, tax forms, and accounting documents to convey useful information to students. Comparisons to the for-profit sector are made throughout to emphasize some of the key features of the not-for-profit sectors.

SPEA-V186 sets the stage for your O’Neill degree. As a graduate of O’Neill, we expect every student to have a solid understanding of how revenues are sourced and how expenditures are determined in the public and non-profit sectors. This course is the starting point for acquiring this knowledge, and it plays a critical role in your ability to get through upper level courses.

Learning outcomes:

By the end of the semester students should be able to:

  1. Describe the budgetary process.
  2. Identify and describe the main types of spending functions in the public and non- profit sectors.
  3. Identify, describe and have familiarity with computations related to the main revenue sources in the public and non- profit sectors.
  4. Identify and distinguish between debt and deficit and explain when/why both are a reason for concern.
  5. Identify and read public and non-profit sector financial documents.
  6. Demonstrate an understanding of the basic tools of financial analysis.
  7. Explain the role the federal reserve in the US economy.
  8. Have a working knowledge of how to use spreadsheets.

How much time should you be spending on this class:  If this is a standard 3-credit semester length class, you are expected to spend an average of 6 or more hours outside of class per week on reading, studying, assignments, etc.  If this is a 6- or 8-week 3-credit class, you are expected to spend at least 12 hours outside of class per week on these activities. 

Learning Modules:

Module 1: Institutional Failures and Need for Public/Non-Profit Sectors

  • The Public Sector and Institutional Failures (Week 1)
  • Working of the Federal Reserve System (Week 1)

Module 2: Government Revenues

  • Sound Tax Policy (Week 2)
  • Income Taxes (Week 3)
  • Consumption Taxes (Week 4)
  • Property Taxes, User Fees, Municipal Debt (Week 5)
  • Canons of a good tax (Week 6)
  • Exam 1 (Based on Modules 1 & 2)

Module 3: Government Budgeting in the United States

  • Intro to Public Budgeting (Week 7)
  • Budgeting: Principles, Stages, and Policies (Week 8)
  • Federal, State and Local Budget Processes (Week 9)
  • Federal, State and Local Spending and Spending heads (Week 10)

Module 4: Debt, Deficits and Financial Management

  • Overview of Fiscal and Monetary policies (Debt, Deficits, Interest Rates) (Week 11)
  • Details of Debt Financing (Week 12)
  • Financial Analysis tools: Time value of money, Discounting, Compounding, etc. (Week 13)

Module 5: Public Sector Financial Reporting

  • Financial Reporting and Government Accounting (Week 13 & 15)
  • Financial Statement Analysis (Week 16)
  • Final Exam (Based on Modules 3,4 & 5)

 

Course Materials and Communication

The required reading material for this course will be provided by the instructor, uploaded in the relevant module tabs in the form of slides, pdf documents and other text from relevant sources. Material will be shared at the start of each week showing the content to be covered during the week. However some suggested texts are below to complement the class material.

Suggested Texts:

Public Finance: A Contemporary Application of Theory to Policy by David Hyman (12th Edition). Cengage Learning.

Finkler, Steven, Daniel Smith and Thad Calabrese, Financial Management for Public, Health and not-for-profit Organizations, 6th edition . Thousand Oaks CQ Press/SAGE 2019

Reading Assignments: Additional readings will also be posted on Canvas as needed and will be strongly influenced by current events relevant to the course.

Teaching and Learning methods: The course will be delivered via face-to-face lectures. Your understanding of the course material will be determined via assignments, quizzes, and exams.

Communication: Important announcements are distributed through canvas.  You should check your IU email and canvas regularly.

Course Policies

Policy on use of electronic devices.

You are not permitted to use your cellphone during class unless expressly instructed by your instructor. Laptops and tablets maybe used in class to take notes. The use of electronic devices in class generally leads to negative externalities. For example, your computer might distract other students who would otherwise prefer to focus on the lecture.

I strongly encourage you to print out the lecture notes and take them to class. You can make your notes on the outline.

Attendance

There is 5% credit for Attendance and a maximum of 3 absences will be excused. Excess of 3 absences would need to be supported by a strong justification with documentary evidence. Furthermore, I have witnessed students more regular with attendance also perform better on the exams and quizzes.

Late Assignments

All assignments must be submitted via Canvas. You may submit your assignment up to 2 hours after it is due. Assignments submitted after this grace period will receive 0.

Make-Up Exams. Make-up exams are only allowed under very extraordinary circumstances and must be supported by documented evidence. The definition of an extraordinary circumstance is solely at the discretion of the instructor.

Grading

Your Final Grade in the Course will be based on:

  1. Lab Session Quizzes: worth 14% of your final grade
  2. Problem Sets: worth 15% of your final grade
  3. Quizzes (Regular): worth 8% of final grade
  4. 2 Exams: worth 45% of final grade
  5. Budget Process Case Study: 6% of the final grade
  6. Financial Analysis and Performance Report Assignment: 7% of final grade
  7. Attendance: 5%

                                                                  

Final Grade Range

>= 97%

97%

> x >= 93%

93%

> x >= 90%

90%

> x >= 87%

87%

> x >= 83%

83%

> x >= 80%

80%

> x >= 77%

77%

> x >= 73%

73%

> x >= 70%

70%

> x >= 67%

67%

> x >= 63%

63%

> x >= 60%

60%> x

Letter Grade

A+

A

A-

B+

B

B-

C+

C

C-

D+

D

D-

F

Modules

The course is organized around 5 modules. You can view the modules in the module section.

Meet your instructor

Email:  bshahrya@iu.edu (please be clear in email subject about what the message is concerning)

Office Hours: Mon and Wed (1:00 pm - 2.30 pm). Please email for meeting appointment during the mentioned office hours and mention the issue needing discussion. Also via zoom meet after email message, in case of emergency. Any hours apart from this may be set for meeting by emailing the instructor.

Office: SPEA A333. Links to an external site.

Student Honor Code  

Introduction 

The O’Neill School takes matters of honesty and integrity seriously.  We expect O’Neill students will, at all times, maintain academic integrity and civil and professional standards of conduct.  

Scope 

O’Neill’s Student Honor Code applies to all courses and programs offered by O’Neill, and to all students who participate in O’Neill classes and programs, regardless of whether students are admitted to O’Neill. Students studying at O’Neill are expected to continue their commitment to ethical behavior in all their endeavors, including, but not limited to, coursework inside and outside of O’Neill, internships, community service, and overseas study.  

O’Neill’s Student Honor Code incorporates IU’s Code of Student Right, Responsibilities, & Conduct and extends to matters of civility and professional conduct, including, expectations about class attendance, punctuality, participation in class, and decorum in class and at other school functions. 

Academic Conduct Requirements   

All students enrolled in O’Neill courses are subject to the academic misconduct provisions found in the IU Code of Student Rights, Responsibilities, & Conduct.   

Academic misconduct is defined as any activity that tends to undermine the academic integrity of the institution. 

The IU Code of Student Rights, Responsibilities, & Conduct lists and defines many types of academic misconduct, including cheating, fabrication, plagiarism, interference, violation of course rules, and facilitating academic dishonesty.  

Civility and Professional Conduct Requirements 

O’Neill requires that all students treat others with mutual respect and behave professionally in the classroom and during all academic and non-academic activities. 

These civility and professional conduct requirements foster an appropriate atmosphere inside and outside the classroom: 

  • Students must regularly attend and be fully prepared for class, including completing readings.  
  • Students must not behave in a way that interrupts or distracts from teaching or learning.  For example, students must be punctual in their arrival to class and be present and attentive for the duration of the class. They must not sleep, do work for another class, or wander in and out of the classroom, pack up, or leave class early (unless an emergency exists). 
  • Students must abide by the course policy regarding use of electronic devices in the classroom, including a requirement that no electronics are allowed or that students are not permitted to use devices for non-class related purposes. 
  • Students must responsibly participate in class activities and during team meetings for course assignments.  
  • Students must attend scheduled meetings with faculty or staff, events for which they have RSVPed, interviews with prospective employers, and student organization meetings.   
  • Students must address faculty members, other students, and others appropriately and with respect, whether in person, in writing, or in electronic communications. 
  • Students must show tolerance and respect for others.  
  • Students must practice respect and responsible stewardship of the physical resources of the school, refraining from destroying or defacing school property, integrating practices of sustainability, and contributing to a clean and orderly physical environment in all buildings, classrooms, offices, and meeting spaces.    
  • Students must comply with the personal misconduct responsibilities within the IU Code of Student Rights, Responsibilities, & Conduct. 

Reporting  

Students must abide by the O’Neill Student Honor Code themselves and hold their peers to the same standards. Students should report suspected instances of academic, civility, or professional misconduct to the instructor of the course. Students should report suspected instances of personal misconduct to the IU Office of Student Conduct.  

Use of generative AI (such as ChatGPT) in this class.  Using AI to assist in completing assignments will be allowed only in the following ways: 

  • Use of AI tool must be referenced/cited in submitted work
  • A disclaimer must also be added explaining the manner in which any specific AI tool (ChatGPT, Claude, Gemini, etc.) is used  

All other use of AI is prohibited. You are permitted to use the free version of Grammarly and Microsoft Word’s spelling and grammar tool.   

If you use AI in an unauthorized manner, you will be committing plagiarism* and will be subject to penalties in this class and sanctions by Indiana University.   

WARNING: Submitting any questions, assignments, notes, slides, or other instructor-produced course materials into Generative AI without permission is a violation of the faculty member’s exclusive rights and will be reported to the Dean of Students as academic misconduct.  

Course Materials—Instructor’s Exclusive Rights. 

 The faculty member teaching this course holds the exclusive right to distribute, modify, post, and reproduce course materials, including all written materials, study guides, lectures, assignments, exercises, and exams. While you are permitted to take notes on the online materials and lectures posted for this course for your personal use, you are not permitted to re-post in another forum, upload to AI, distribute, reproduce content from this course, or sell the instructor’s course materials (including notes and study guides) without the express written permission of the faculty member. 

 Violations of this policy will be reported to the Dean of Students as academic misconduct (violation of course rules). Sanctions for academic misconduct may include a failing grade on the assignment for which the notes/study guides are being sold, a reduction in your final course grade, or a failing grade in the course, among other possibilities.  

 Additionally, you should know that selling a faculty member’s course using IU email, or via Canvas may also constitute a violation of IU information technology and IU intellectual property policies; additional consequences may result. 

Additional Information

Counseling and Psychological Services  

For information about services offered to students by CAPS:  http://healthcenter.indiana.edu/counseling/index.shtml 

TimelyCare 

Indiana students have free, 24/7 access to virtual mental health care services with TimelyCare. Students do not need insurance to access TimelyCare services. https://www.iu.edu/mental-health/find-resources/timely-care.html#0 

Religious Accommodation Requests 

The "Request for Accommodation for Religious Observances" form must be submitted by the student to the professor no later than two weeks prior to the anticipated absence.  A separate form must be submitted for each absence and for each course. Faculty do not have to consider accommodations for the purpose of allowing students to travel away from Bloomington for religious observance.  Information about the policy is found here: https://vpfaa.indiana.edu/resources/religious-observances-information.html. 

Accessible Educational Services (formerly Disability Services for Students)  

Securing accommodations for a student with disabilities is a responsibility shared by the student, the instructor, and the AES Office. For information about support services or accommodations available to students with disabilities, and for the procedures to be followed by students and instructors: https://studentlife.indiana.edu/care-advocacy/iub-aes/index.html   

Sexual Harassment   

As your instructor, one of my responsibilities is to help create a safe learning environment on our campus. Title IX and our own Sexual Misconduct policy prohibit sexual misconduct.  If you have experienced sexual misconduct, or know someone who has, the University can help.  

If you are seeking help and would like to talk to someone confidentially, you can make an appointment with: 

  1. The Sexual Assault Crisis Service (SACS) at 812-855-8900 
  1. Counseling and Psychological Services (CAPS) at 812-855-5711 
  1. Confidential Victim Advocates (CVA) at 812-856-2469 
  1. IU Health Center at 812-855-4011 

For more information about available resources:  http://stopsexualviolence.iu.edu/help/index.html. It is also important to know that federal regulations and University policy require me to promptly convey any information about potential sexual misconduct known to me to our campus’ Deputy Title IX Coordinator or IU’s Title IX Coordinator.  In that event, they will work with a small number of others on campus to ensure that appropriate measures are taken and resources are made available to the student who may have been harmed.  Protecting a student’s privacy is of utmost concern, and all involved will only share information with those that need to know to ensure the University can respond and assist.  I encourage you to visit http://stopsexualviolence.iu.edu/help/index.html to learn more. 

IU Culture Centers: https://studentlife.indiana.edu/communities/culture-centers/index.html