27759 Accounting and Finance for the Arts

Subject level: Postgraduate

Handbook description

This subject gives students a basic appreciation of the role of financial management in arts administration. Some cultural bodies have difficulty delivering services to the community simply because their management is ill-equipped to balance artistic outputs within available financial resources. Lectures and workshops cover basic financial analysis and reporting, compiling charts of accounts, using personal computers to solve everyday problems and working with boards, committees and funding authorities.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Understand the importance of sound financial management for arts management.
2. Undertake fundamental financial management and reporting tasks.
3. Understand contemporary financial, reporting and accounting standards and recognise the difference between financial and management reporting.
4. Use software programs in analysing and forecasting financial data.
5. Analyse relevant literature in accounting and financial management.

Contribution to graduate profile

Students will gain an appreciation and understanding of the importance of sound financial administration in the arts. Weekly exercises with a heavy emphasis on both cash and accrual accounting will be undertaken as well as spreadsheet work on conventional accounting reporting.

Teaching and learning strategies

Lectures will be followed by workshops and weekly presentations on accounting and financial issues in arts organisations. Specific case studies on arts organisations will illustrate particular challenges facing this industry. Content for this subject will be supported by UTSOnline.

Content

• The financial dimensions of the arts in Australia
• Financial information needs of staff, boards, funding authorities and sponsors; project evaluation and the use of spread-sheets
• Conventional processing and reporting of accounting information with particular emphasis on cash accounting, accrual accounting and cash at bank
• The double-entry book-keeping principle
• Cost and management accounting, budgeting and the managerial process, controlling costs, making difficult and unpopular decisions in times of financial crises
• Taxation legislation relevant to arts management
• Working together to achieve financial goals; conflict resolution
• Devising relevant financial ratios, statistics and indicators for appraising arts organisations
• Face-to-face meeting with prominent arts organisation to discuss financial policies, financial monitoring and decision making.

Assessment

The examination will be conducted under University examination conditions, and hence thoroughly address concerns regarding secure assessment. The examination involves randomised selection from a large item bank each semester, and the re-ordering of responses for questions that are re-used. The presentation is individually assessed by the instructor, thus ensuring consistent grading and protection against plagiarism. Choice in topics encourages independent work for this assessment item.

Recommended text(s)

A student reader will be prepared for this subject.

Indicative references

Anthony, R.N. & Reece, J.S. Accounting Text and Cases. Sydney: Irwin.

Sykes, T. (1994), The Bold Riders. St. Leonards, NSW: Allen & Unwin.