Financial Management and Controlling in Nonprofit-Organisations

22M1108

Master

Englisch

5.0

nur Sommersemester

1 Semester

In this module, students learn the key interrelationships of internal and external accounting. Students learn to classify and understand key business decision-making processes and practical approaches to solving problems. The basis for this is initially the ability to understand annual financial statements and annual financial statement analysis, including the balance sheet, income statement, notes, and management report. Building on this, students learn the relevant key figures for evaluating the capital, asset, and earnings situation.

This module also focuses on cost and financial management, and the specifics of controlling in NPOs/NGOs. To this end, students learn the methodological skills required to work with the approaches and tools of cost and financial management and to understand problem-solving processes. Further instruction on the subject is based on the systems of cost element, cost center, and cost unit accounting.

Building on this, the course focuses on the decision-relevant aspects of cost and financial management (including marginal costing). In this context, students also learn about the foundations and challenges of active cost structure management for NPOs and NGOs (in particular, approaches to fixed cost and overhead cost management) as well as key budgeting issues (e.g. budgeting for personnel costs). The “Financial management and controlling in nonprofit organisations” module also covers the principles of risk management. The module topics are explored in depth in case studies from the field of non-university research.

This module is generally designed to teach students the methodological skills required to create a solid foundation for discussing, reflecting on, and applying cost and financial management tools in NPOs. Students are expected to be confident in their use of these tools and able to apply their knowledge in a practical and solution-oriented way.

1. Financial management and budgeting
   1.1 Foundations of financial management
   1.2  Annual financial statements (balance sheet and income statement) as the basis of financial management
   1.3  Assessment of asset and capital structures
   1.4  Analysis of results on the basis of the income statement
   1.5  Key indicators for balance sheet and performance analysis
   1.6  Application, implications, and restrictions for NPOs
2. Foundations of cost and activity accounting
   2.1  Significance, requirements, and conditions
   2.2  Differentiation from private sector application areas
   2.3 Actual, normal, and planned cost accounting, marginal and full costing
3. Cost element accounting
   3.1  Cost elements, recording of costs
   3.2  Imputed costs, variable/fixed costs, direct/overhead costs
4. Cost center accounting
   4.1  Objective, criteria and principles of structuring
   4.2  The operational accounting sheet as the basis for cost center accounting (preliminary and final cost centers)
   4.3  Primary and secondary cost center accounting
   4.4  Internal cost allocation
5. Cost unit accounting
   5.1  Objective and specifics for NPOs
   5.2 Cost allocation principles, methods
   5.3 Product/service and project allocation
6. Advanced systems and special forms (direct costing and multi-level contribution margin accounting)
7. Risk management (principles of risk management in NPOs)

Der Arbeitsaufwand für das Modul umfasst insgesamt 150 Stunden (siehe auch "ECTS-Leistungspunkte und Benotung").

The lecture is combined with case study work and internal workshops. Conceptual basic knowledge and practice-oriented knowledge transfer are equally weighted in the course.

Guest lectures may be added to the curriculum as appropriate.

• Klausur oder
• Referat (mit schriftlicher Ausarbeitung) oder
• Hausarbeit

Written exam: see applicable study regulations
Report: approx. 20-40 minutes with a written paper of about 5 to 10 pages
Written assignment: approx. 20-25 pages

The requirements are specified in the relevant class.

Module on basic knowledge of business tools and methods (tutorial on “Financial management and controlling in nonprofit organisations”)

Students are able to place cost and financial management in the context of business administration and the accounting of NPOs; they also recognize the cross-relationships and areas of overlap with other tools and challenges in the management of NPOs. Students have an overview of the tools and methods of cost and financial management, as well as the features and decision-oriented variants of application offered by the tools.

Based on the functions, levels, and tasks of controlling, students understand how cost and financial management can be expanded or developed into a system of annual planning and budgeting, and recognize the implications for risk management.

Students are able to assess methods and tools of cost and financial management in terms of whether, how, and under which conditions they can be used, and where the particular opportunities and risks lie in relation to the specifics of NPOs. They are able to evaluate controlling tools to determine whether they correspond to the specific requirements and conditions for application in NPOs.

They recognize the connections between specifics of organisations and requirements for controlling.

Students who have successfully completed this module are able to transfer the knowledge gained (approaches, methods, and tools of cost and financial management) to NPOs, and assess the possibilities and limitations of applicability.

Based on the knowledge gained, students are able to develop proposals for the design and implementation of cost and financial management.

Students who have successfully completed this module understand how to transfer methods of cost and financial management to NPOs. They are able to assess problems in a differentiated manner, and evaluate scenarios for deriving cost and financial management measures.

Students who have successfully completed this module are able to evaluate new and innovative approaches to cost and financial management, and to transfer best practices to NPOs and the science system, taking into account the specific conditions.

Students who have successfully completed this module are able to communicate in a reflective manner with stakeholders and stakeholder groups in NPOs on issues of cost and financial management, as well as conduct focused discussions in the relevant institutions.

Students who have successfully completed this module are able to project their knowledge and understanding of methods from the field of cost and financial management onto problems and issues in practice, and to realistically assess and reflect on the possibilities and limitations of the methods and alternative courses of action.

The “Financial Management and Controlling in Nonprofit-Organisations” module from the area of management is linked to the content of the “Process-, Quality-, and Projectmanagement” module.

• Management in Nonprofit-Organisations M.A. (01.09.2024)

• Kleine, Dirk

• Kleine, Dirk