MS in Accounting Proposal version 11 0 041812_0

MASTERS OF SCIENCE IN ACCOUNTING PROPOSAL Submitted to the PCC of SEBA and GPSEPC of SMC by the Department of Accounting and Graduate Business Programs, School of Economics and Business Administration (SEBA) Contact: Professor Greg Merrill, Chair, Department of Accounting, SEBA Professor Shyam Kamath, Associate Dean for Graduate Business and Global Programs, SEBA Proposed Implementation: Academic Year 2013-14 TABLE OF CONTENTS 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 SIGNATURE PAGE EXECUTIVE SUMMARY Mission and Purpose Target Group Program Structure Learning Goals and Objectives Impact on SEBA and the College Assessment Tools Competitor Analysis Financial and Action Plan Request for Approval 4 4 4 4 5 MISSION AND PURPOSE TARGET GROUP AND PROGRAM DEMAND 10 PROGRAM GENESIS AND STRUCTURE 12 LEARNING GOALS/OBJECTIVES AND LEARNING OUTCOMES 19 IMPACT ON SEBA AND THE COLLEGE 25 ASSESSMENT TOOLS 26 COMPETITOR ANALYSIS 27 ACTION PLAN AND BUDGET 30 10 REQUEST FOR APPROVAL 33 EXECUTIVE SUMMARY 1.1 Mission and Purpose The mission of the Master of Science in Accounting (MSACC) program is to prepare students for professional opportunities in accounting in the public and private sector and to meet the 150-hour educational requirements set by California law It is predicated on the College’s three-fold mission of Lasallian, Catholic and Liberal Arts at an ontological, philosophical, epistemological, practical and empirical level It embodies the five Lasallian principles and connects to the mission of the College as embodied in the Academic Blueprint and the BOS Strategic Plan as well as the Mission, Vision and Strategic Plan of SEBA 1.2 Target Group and Program Demand The target groups for the MSACC program are the undergraduate accounting majors and minors who have graduated from Saint Mary’s College and any other college or university (including from outside the US) 1.3 Program Genesis and Structure The MSACC program has been developed with the input of the accounting department faculty members in SEBA by a specially appointed proposal committee and has been approved by accounting department faculty, the SEBA Dean’s office, the SEBA Administrative Council and the Program Coordination Committee in SEBA It is a 15month program on a quarter system in which students meet two days per week in the evening Students take two courses a quarter starting in the July quarter for a total of ten courses The courses are financial and cost accounting, tax, audit and ethics courses that build on a student’s undergraduate study in accounting 1.4 Learning Goals/Objectives and Learning Outcomes The primary learning goals objectives are in the areas of deepening of critical thinking skills and demonstrating an understanding of accounting principles, theories and concepts; deep understanding of professional responsibilities and ethics; development of communication skills; awareness of the profession and proficiency in technology and information systems The detailed program goals, objectives and traits for outcomes assessment are under finalization in line with similar documents prepared for AACSB and WASC in SEBA for the EMBA and MS-FAIM program (provided in this proposal) 1.5 Impact on SEBA and the College The MSACC program is structured to be a seamless continuation of the undergraduate program in Accounting and we expect the program to have no significant negative impact on SEBA or the College The positive impacts in terms of enrolling additional graduate students, reaching out to a new target student population, meeting state accounting education needs and generating additional revenue and net contribution for SEBA and the College are significant 1.6 Assessment Tools Exams, quizzes, projects, and homework assignments are the primary avenues for assessing the effectiveness of individual courses In addition, the program as a whole will be assessed using a comprehensive end-of-the-program examination and surveys of students, alumni and employers SEBA has substantial experience in the assessment of majors, specializations and courses in accounting and finance in the undergraduate program, the MS-FAIM program and our MBA programs, which experience and assessment tools will be modified to assess the MSACC program 1.7 Competitor Analysis A competitor analysis of the market place indicates that there is significant demand for a MS in Accounting program in the Bay Area both from Saint Mary’s accounting students as well as accounting students from other colleges in the area looking to fulfill the new 150-hour requirement An analysis of competitor programs in the Bay Area reveals that there is no other program currently in existence or planned to meet the new accounting education requirements, though there are two programs with the potential to convert to these requirements One is a Masters in Accounting program at San Jose State University that is currently not compliant with the new requirements but can convert to them Competitive intelligence indicates that another program at Sacramento State University is currently going through the approval process and is targeted at meeting the new accounting education requirements 1.8 Action Plan and Budget A phased timeline and action plan targets for the new accounting program to start in July 2013 The MSACC program provides positive financial results and a positive net contribution to the College in the very first year of operation 1.9 Request for Approval Based on the data and information presented in the proposal, it is requested that provisional approval for the establishment of a Master of Science in Accounting (MSACC) program be granted so that the program can be launched by July 2013 MISSION AND PURPOSE The mission of the MS in Accounting (MSACC) program is to prepare students for professional opportunities in accounting in the public and private sector and to meet the 150-hour educational requirement set by the new California law This MSACC program mission is predicated on the School of Economics and Business Administration’s mission: Built upon the Lasallian, Catholic and Liberal Arts traditions of Saint Mary's College, the School of Economics and Business Administration strives to develop business and community leaders with global and responsible perspectives We prepare our graduates to be professionally skilled, culturally aware, socially responsible and ethically principled As teachers, scholars and mentors, we offer students a rigorous, innovative and diverse learning experience by leveraging on our practice-relevant, pedagogical and disciplinebased research SEBA embodies this mission in two strategic foci that encapsulate the guiding principles that drive the development of new programs: “Think Globally Lead Responsibly.” The strategic foci capture the four aspects of a business education in SEBA: A focus on developing global management perspectives and an abiding concern for inculcating responsible business perspectives through a Quadruple Bottom Line approach (People, Ethics, Planet and Profit) in our students and graduates The MSACC program provides a rigorous accounting education while providing participants with global perspectives through an understanding of the International Financial Reporting System (IFRS) that is slowly replacing Generally Accepted Accounting Practices (gap) all over the world It incorporates a focused course on International Accounting (MACC 204) in addition to incorporating international issues in many of the other courses Similarly, the responsible business perspective is embedded through focused courses in Professional Ethics and Responsibilities (MACC 209) and Government and Non-Profit Accounting (GMAN 203) in addition to incorporating these issues in the majority of classes in the program The professional development program sessions (see below) and the master’s colloquium (also below) will also provide opportunities to delve deeply in to these areas History and Rationale of the 150-Hour Requirement Since the 1950s there have been calls by academics and professional accountants for the need for improving accounting education The Carnegie Foundation created the Commission on Standards and Experience for Certified Public Accountants that produced a report in August 1956 favoring the requirement of a graduate degree for accountants At the time, this was a fairly drastic recommendation as only three states, Florida, New Jersey and New York, required CPA candidates to have graduated from college At that time, one of the main reasons given for this change was that the undergraduate accounting curriculum was about to “burst” because of pressure coming from five sources: Students are expected to be more broadly educated in general as well as in the tool areas of management The enormous increase in the amount of authoritative accounting literature that students must learn The American Assembly of Collegiate Schools of Business’ revised sequence of accounting courses, which forced students to take more accounting courses in their junior year The CPA examination has changed from an examination on which knowledge of actual practice situations played an important role in passing the examination to an examination that is much more textbook-oriented and to one based primarily on one’s knowledge of authoritative literature in auditing, accounting, and taxation The increasing presence of the computer in business and society The Commission on Professional Accounting Education argued in favor of legislating the 150-hour requirement Their July 1983 report stated: “The sole purpose of a legislated education requirement is to add to the degree of assurance of competent services provide to the public If the education of CPAs is left to a free market solution, the public cannot be assured that the production of auditing services will be adequate.” The State of California only recently passed the 150 hour requirement The requirement was brought about by one important factor – to make California law compatible with that of other states in the country so as to provide an opportunity for students from California to practice in any state Other factors include: the expansion of client services, the growing application of information technology (electronic data processing), the increase in accounting pronouncements, the recognition of the value of formal education over informal experience, and the desire for the recognition of accounting as a profession at least as demanding as law, engineering and architecture Effective January 1, 2014, SB-819 requires candidates seeking the CPA designation in California to complete 150 hours of college education (undergraduate or graduate) with at least 68 hours in accounting, auditing, business, law, finance or tax subjects with at least 30 of the hours in accounting subjects acceptable to the California State Board of Accountancy In addition, a candidate is required to have 10 semester hours of ethics courses work including a minimum of hours in accounting ethics With these changes, California will conform to the national education standard of 150 credit hours and one year of public accounting experience—in addition to the successful completion of the CPA exam—before the granting of a CPA license For a Saint Mary’s student, this would mean an additional 30 semester hours of graduate study after completing the Bachelor’s degree at Saint Mary’s College (approximately 120 semester hours) Saint Mary’s College, like many other colleges and universities in California and across the country, will provide the 30 additional semester hours of graduate study through the granting of a MS in Accounting degree Objectives of the M.S in Accounting Program The specific objectives of the MS in Accounting program are:  Meet the 150-hour educational requirements promulgated by the new California statute SB-819  Develop technical competency in Accounting  Develop effective critical thinking, problem solving and analytical skills  Develop ethical awareness – the ability to recognize and appropriately respond to ethical questions encountered in the practice of accounting  Develop effective oral and written communication skills  Help students pass the CPA Professional exam The students accepted to the MSACC program at Saint Mary’s College will be focused on a career in accounting Accordingly, the program will facilitate and encourage CPA exam preparation for those students who aspire to become a CPA The program will foster professional skills including communication, presentation, interviewing, leadership and analytical competence Students in the MSACC Program will participate in professional development workshops that will provide them with key management skills, capacities and capabilities to enable them to be well-rounded and managerially skilled accounting professionals In the capstone colloquium, student groups will make presentations on current issues in the profession to faculty, outside professionals and regulators Saint Mary’s College Mission and the M.S in Accounting Program Mission The MSACC program fits in well with the threefold mission of Saint Mary’s College of a Lasallian, Catholic and Liberal Arts education Firstly, through the activities of the Accounting Association and programs such as the VITA program that provides free tax help for low-income individuals and families, the Accounting program seeks to create a “Lasallian community” whose members support one another and the less privileged members of our society in line with the Lasallian principles of concern for the poor and social justice, respect for all persons and inclusive community through a high quality education program and community outreach Secondly, the MSACC program is structured to promote ethical behavior and professional conduct in its students Through a specific course in Ethics as well as throughout the program, students are educated and trained to understand and uphold the ethical standards of the profession as well as develop a value system that helps guide their behavior in difficult professional situations This is consistent with the Catholic mission of the College that affirms and fosters the Christian understanding of the human person Finally, the content and pedagogy of the proposed program is consistent with the “liberal learning” mission of Saint Mary’s College The program is focused on developing students’ intellectual skills of analysis, criticism, and synthesis – aspects fundamental to the purposes of a liberal education Each one of these issues is discussed below The Lasallian tradition of the College is embodied in the following approach: -“to create a student-centered educational community whose members support one another with mutual understanding and respect.” A key objective of the new program is its focus on the student-participant SEBA and Graduate Business have always striven to create participant-centered educational programs and learning communities The fruits of this approach have been borne out by the tremendous sense of ownership and belonging that SEBA and Graduate Business program participants have felt for the classes and programs that they have attended (this is based on both formal and informal feedback from Graduate Business program participants) BY adopting the credo of Learn, Network and Serve, our Graduate Business programs have provided a learning community that learns in a collaborative and supportive environment; networks with the internal program and external EMC and business and civic communities through its student advisory bodies and alumni council activities; and serves the local, regional and global community through its community outreach activities and specialized projects and programs such as the Social Services Management (SOSERVMAN) program that was specially cited in President Obama’s Honor Roll of Community Service Institutions selection of Saint Mary’s College among the Top 17 College’s in the country We hope to continue to bring this commitment to building vibrant and life-long educational communities in the MSACC Program that we will be launching The Catholic tradition of the College is outlined by the following: - “to affirm and foster the Christian understanding of the human person which animates the educational mission of the Catholic Church.” The classes in the proposed MSACC Program are based on the fundamental tenet of humanitarianism and the desire to educate the “whole person” We believe that human beings are capable of both pursuing their self interest but also that of compassion for and help of their fellow human beings in an ethical and dignified way as articulated in wise books like Robert Frank’s Passions Within Reason, Adam Smith’s The Theory of Moral Sentiments or James Q Wilson’s The Moral Sense As a result, we have woven in ethical dilemmas and the human dimension in to all the courses in the new program, making sure that all participants understand the moral dimension of their actions, especially as accounting professionals and managers In the classes in the program, students will discuss issues like the evils of insider trading, financial fraud, child labor, worker rights, corruption and bribery, managerial malfeasance and other aspects of unethical behavior In all the classes where such issues are discussed, care will be taken to ensure that all the different types of arguments pro and regarding these issues are understood before arriving at a conclusion The ideal will be to inculcate in each MSACC program participant Socrates’ maxim that the unexamined life is not worth living Finally, the Liberal Arts tradition of the College is captured in the following statement of the College’s mission: - “to probe deeply the mystery of existence by cultivating the ways of knowing and the arts of thinking.” The critical and collaborative approach to learning embodied in the MSACC program reflects a methodological pluralism that is congruent with a multiplicity of epistemological discovery processes A variety of pedagogical and andragogical methods will be used in the classroom such as open-ended projects, cases, role plays, group learning and negotiation exercises including on-line learning tools that allow for the development of alternative and competing theoretical approaches and their application to real-world management situations By the use of discursive discussions, team projects and by asking fundamental and probing questions, the new program will use a collaborative learning framework where program participants learn through multiple theories, empirical evidence and personal narratives from experience Learning is reflective, double-loop and theory of action oriented In doing so, we hope to continue this pattern of exploration and probing of human knowledge and the mystery of existence at Saint Mary’s Congruence with BOS Strategic Plan and Academic Blueprint Further, the MSACC program fits in with the Building on Strengths Strategic Plan and Academic Blueprint of the College and the Strategic Plan of the School of Economics and Business Administration to develop programs that are student focused and prepare students for successful and meaningful professional careers and lives It builds on the strategic Foci of Responsible Business and Global Business Perspectives as adopted by the SEBA faculty in 2011 The design of the program meets the responsible perspectives focus by providing a detailed examination of the ethical and sustainability issues that underlie public accounting as reflect in the courses on Governmental and Non-Profit Accounting (MACC 203), Advanced Auditing and Forensic Accounting (MACC 205), Advanced Legal Issues and Regulatory Framework (MACC 207) and the Professional Ethics and Responsibilities (MACC 209) capstone course experience It will be supported by the careful selection of topics in the Capstone Masters Colloquium and the Professional Development Program (PDP) seminars where topics like Ethical Issue and Practices in Accounting, the Misuse of Accounting, Responsibility Accounting, Accounting for Environment Impacts etc will be offered With regard to the global perspective focus, the Advanced Auditing and Forensic Accounting (MACC 203), the International Accounting (MACC 204) and the Corporate Financial Reporting (MACC 201) courses will consider all aspects of the International Financial Reporting System (IFRS), the global standard that is replacing the U.S centered Generally Accepted Accounting Principles (GAAP) on which most of current U.S accounting is based Global topics will also be considered in the PDP Capstone Masters Colloquium and the PDPD program with topics like Global Negotiations, Cross-cultural Organizational Issues etc 10 Goal 4.0 – Awareness of the Profession and Proficiency in the Assessment and Use of Accounting Information and Technology Each student understands the importance of high quality accounting information and the threats to accounting information reliability and relevance Each student can analyze and evaluate opportunities to leverage technology 4.1 Each student understands the importance and elements of high quality accounting information and the role of technology in domestic and international settings 4.2 Each student understands how to assess and use information ethically and exercise appropriate judgment in domestic and international settings SEBA has developed a detailed set of learning goals, objectives and traits for all its programs, both undergraduate and graduate We are in the process of developing a detailed set of learning goals, objectives and traits as part of the Assurance of Learning (AOL) outcomes assessment process The MSACC Program will have these learning outcomes identified by the end of Summer 2012 in line with Graduate businesses Goals, Objectives and Traits for its general EMBA and specialized MS in Financial Analysis and Investment Management (MS-FAIM) programs as outlines for these two programs below The current Goals, Objectives and Traits for the EMBA program in Graduate Business are as follows: GOAL #1: GRADUATES WILL BE EFFECTIVE BUSINESS ANALYSTS Taught: GMAN 503, 505, 507, 508 (Assessed: GMAN 505, 507, 508) OBJECTIVE #1: Students will be able to apply appropriate functional knowledge to solve business problems Taught: GMAN 503, 505, 507, 508 (Assessed: GMAN 505, 507, 508) TRAIT #1: TRAIT #2: TRAIT #3: Students will be able to apply appropriate financial tools and techniques Taught: GMAN 503, 507 (Assessed: GMAN 507) Students will be able to apply appropriate marketing tools and techniques Taught: GMAN 508 (Assessed: GMAN 508) Students will be able to apply appropriate operations management tools and techniques Taught: GMAN 505 (Assessed: GMAN 505) GOAL #2: GRADUATES WILL BE EFFECTIVE COMMUNICATORS Taught: GMAN 502 (Assessed: GMAN 502) OBJECTIVE #1: Students will be able to produce business writing that meets professional standards Taught: GMAN 502 (Assessed: GMAN 502) TRAIT #1: Students will be able to demonstrate written proficiency with the mechanics of English grammar, syntax, and usage, as well as with the principles of conciseness 22 TRAIT #2: Students will be able to formulate informative and persuasive written documents OBJECTIVE #2: Students will be able to deliver a professional oral presentation Taught: GMAN 502 (Assessed: GMAN 502) TRAIT #1: TRAIT #2: Students will be able to demonstrate oral proficiency with the mechanics of English grammar, syntax, and usage, as well as with the principles of conciseness Students will be able to formulate informative and persuasive oral arguments GOAL #3: GRADUATES WILL BE EFFECTIVE AND RESPONSIBLE LEADERS Taught: GMAN 501, 510 and 511 (Assessed: GMAN 501 and GMAN 511) OBJECTIVE #1: Students will be able to understand and apply techniques to build trust, motivation, and commitment among individuals and groups Taught: GMAN 501 (Assessed: GMAN 501) TRAIT #1: TRAIT #2: TRAIT #3: TRAIT #4: Students will be able to use goal setting and reinforcement theory to improve motivation Students will be able to use empowerment (participation, training, feedback and job redesign) to increase employee trust and commitment Students will be able to analyze situations to determine which “influence strategies” would be most effective Students will be able to use both analytic and creative problem solving techniques OBJECTIVE #2: Students will be able to understand and apply methods and models to build organizations that act responsibly and ethically Taught: GMAN 510 and 511 (Assessed: GMAN 511) TRAIT #1: Students will be able to develop reasonable resolutions of ethical dilemmas in organizations, including strategies that consider issues of role, responsibility, and effectiveness in responding to possible or actual ethical problems GOAL #4: GRADUATES WILL BE GLOBAL STRATEGIC DECISION MAKERS Taught: GMAN 501, 503, 504, 505, 506, 507, 508, 513, 512 (Assessed: GMAN 512) OBJECTIVE #1: Students will be able to develop business strategies that serve the long-term interests of a firm or major division of a firm Taught: GMAN 501, 503, 504, 505, 506, 507, 508, 513, 512 (Assessed: GMAN 512) 23 TRAIT #1: TRAIT #2: TRAIT #3: Students will be able to conduct external analysis of industry, competitive, and macro-environmental forces Students will be able to perform internal analysis of firm resources and capabilities Students will be able to formulate global business strategies and implementation plans Similarly, the goals, objectives and traits of the more specialized and similar to the MSACC program Masters of Science in Financial Analysis and Management (MS-FAIM) program are as follows: GOAL #1: STUDENTS WILL HAVE THE KNOWLEDGE AND SKILLS TO SELECT AND EMPLOY BASE LEVEL TOOLS FOR FINANCIAL ANALYSIS Taught: FAIM 601, 602, 603, 604 (Assessed: FAIM 604) OBJECTIVE #1: Students will be able to use time value of money methodology Taught: FAIM 604 (Assessed: FAIM 604) TRAIT #1: A student determines cash flows, and applies the appropriate time value of money methodology to a cash flow stream OBJECTIVE #2: Students will be able to determine the cost of capital Taught: FAIM 604 (Assessed: FAIM 604) TRAIT #1: A student determines the cost of capital for a firm, given its capital structure GOAL #2: STUDENTS WILL HAVE THE KNOWLEDGE AND SKILLS TO ANALYZE COMPANIES FOR INVESTMENT PURPOSES Taught: FAIM 601, 602, 603, 604, 605 (Assessed: FAIM 605) OBJECTIVE #1: Students will be able to adjust financial statements for valuation purposes Taught: FAIM 601-605 (Assessed: FAIM 605) TRAIT #1: Students will be able to determine all financial statement items that are important for valuation purposes and that require adjustment TRAIT #2: Students will be able to adjust all financial statement items that are important for valuation purposes and that require adjustment OBJECTIVE #2: Students will be able to use adjusted financial statements to produce a sound valuation of a company Taught: FAIM 601-605 (Assessed: FAIM 605) TRAIT #1: Students will be able to select one or more appropriate valuation models for a given target firm 24 TRAIT #2: Students will be able to determine all relevant cash flows (i.e size and timing) based on the valuation model(s) selected TRAIT #3: Students will be able to develop a reasonable valuation for a target firm, provide reasonable justification (supporting logic) for the valuation, and provide a justifiable investment recommendation [e.g Buy, Sell, Hold] GOAL #3: STUDENTS WILL HAVE THE KNOWLEDGE AND SKILLS TO DEVELOP PORTFOLIO STRATEGIES FOR INDIVIDUAL AND INSTITUTIONAL INVESTORS Taught: FAIM 601-610 (Assessed: FAIM 610) OBJECTIVE #1: Students will be able to develop investment policy statements for institutional and individual investors Taught: FAIM 601-610 (Assessed: FAIM 610) TRAIT #1: Students will be able to include and correctly label all key components of an Investment Policy Statement: Objectives [Assessed Risk Tolerance – Willingness & Ability – and Required Return] and Constraints [Liquidity, Unique, Time Horizon(s), Taxes, and Expected Regulatory] TRAIT #2: Students will be able to list and accurately calculate size and timing of all liquidity items including large, one-time liquidity needs and on-going periodic liquidity needs TRAIT #3: Students will be able to provide adequate responses for each Objective – Required Return, Willingness to Take Risk, Ability To Take Risk, Assessed Risk Tolerance – and all Constraints – Liquidity, Unique, Time Horizon(s), Taxes, and Expected Regulatory items OBJECTIVE #2: Students will be able to develop an appropriate portfolio for a given investor and market conditions Taught: FAIM 601-610 (Assessed: FAIM 610) TRAIT #1: Students will be able to identify key decision information relative to the current portfolio, the investor/portfolio owner and his/her requirements, and Capital Market (economic/investment) conditions TRAIT #2: Students will be able to develop and/or select one or more portfolios that are a) available and b) meet the key portfolio selection criteria Students identify the optimal portfolio(s) if two or more portfolios meet the key criteria GOAL 4: STUDENTS WILL HAVE THE KNOWLEDGE TO OPERATE ETHICALLY AS INVESTMENT MANAGEMENT PROFESSIONALS Taught: FAIM 611 (Assessed: FAIM 611) 25 OBJECTIVE #1: Students will be able to understand and apply ethical standards in the investment profession Taught: FAIM 611 (Assessed: FAIM 611) TRAIT #1: Students will be able to Identify and state the elements of the CFA Institute Code of Ethics, given an outline of the Code with selected key terms omitted; students are able to complete the missing terms to construct the six elements of the Code TRAIT #2: Students will be able to identify and state the Standards and Subheadings: given an outline of the seven Standards and their 22 subheadings with nearly all of the key terms missing, students are able to complete the 74 missing terms to construct the seven Standards and 22 sub-headings TRAIT #3: Students will be able to accurately apply the Code and the Standards to ethics case studies The detailed goals, objectives and traits that are being developed for the MSACC program focus on the goals identified at the beginning of this section and incorporate all the best features of the assessment goals, objectives and traits of the other graduate programs in SEBA but specifically tailored to the MSACC program Given SEBA’s extensive experience and implementation expertise in this area, the assessment goals, objectives and trait measurements of the program will all be in line with WASC, AACSB and internal College requirements 26 IMPACT ON SEBA AND THE COLLEGE The MSACC program builds on existing programs and resources at the College and SEBA The program is structured to be a seamless continuation of the undergraduate program in accounting In fact, we expect the majority of accounting majors and minors to apply for the MS program in accounting We not expect the MSACC program to have any major or minor negative impact on other programs at the College Every year a small number (not exceeding five) of undergraduate accounting majors and minors apply to our graduate business programs, primarily the Professional MBA and FAIM programs We expect a few of these students to apply to the MSACC program rather than the MBA or FAIM program Since we expect to hold the MS classes off-campus, the new degree program will not require class room facilities on campus Further, most off-campus students tend to use the library resources remotely rather than on campus An additional accounting faculty member will be required to be hired once the program has been launched and provides incremental net revenues and contributions to SEBA and the College The MSACC program is likely to have major positive impacts for SEBA and the College First, the MSACC program will increase graduate student enrollments in SEBA and the College with positive networking, program diversification and revenue impacts Second, the MSACC program will reach a new target segment of students, undergraduate accounting majors and minors from Saint Mary’s College and other Bay Area/regional institutions that are currently not targeted in a focused manner Third, the new program will meet imperative state and regional accounting professional and education needs by meeting the state accounting education requirements driven by SB-819 Last but not least, the new program will generate significant incremental net revenues and incremental net cash flow contributions to SEBA and the College 27 ASSESSMENT TOOLS The following assessment tools will be used to evaluate the educational effectiveness of the program with regard to the learning goals and objectives identified in Section above and the program design described in Section above Exams, quizzes, projects and homework assignments will be the primary avenues for assessing the effectiveness of the pedagogy and instruction of individual courses in the program Clear minimum standards will be set by the Department of Accounting and the faculty member teaching the course at the beginning of the quarter and students’ performance on these exams and projects will be measured against these minimum standards A comprehensive end-of-program examination will be used to determine the extent to which the MS program as a whole meets the learning goals and objectives set in section five (5) above Student surveys will be taken at the end of each course as well as the end of the program to determine the extent to which the learning outcomes have been met In addition, we will take a survey of employers to assess how well our graduates are meeting their expectations It is to be noted that the Accounting Department and SEBA have extensive experience in the assessment of its accounting and other courses in the undergraduate, EMBA, PMBA and MS-FAIM programs for AACSB and WASC accreditation purposes This experience and know-how will be applied to comprehensively assessing the MSACC program It is planned that the MSACC program will be reviewed externally once established and will conduct periodic reviews as required by the Program Review Committee and GPSEPC 28 COMPETITOR ANALYSIS Figure provides a comparison of our MS in Accounting program with current programs provided by other schools and universities in the Bay Area Figure Competitor Analysis – SMC MS in Accounting versus Competition University/Program Name Program Details Saint Mary’s College of Part-time CA months MS in Accounting Admission Requirements - 15 4-year Bachelor degree with a major or minor in Accounting Min GPA = 2.75 San Jose State University Full-time - 13 4-year Bachelor MS in Accountancy months Degree (any major) Start Date - May Min GPA = 2.5 GMAT > 525 TOEFL >263 California State Full-time - 18 4-year Bachelor University, months degree (any major) Sacramento Part-time - Complex Index MS in Accountancy Between 18 and 36 Criteria for admission, (online Only) months but, Min GPA = 2.5 Min GMAT = 500 Golden Gate University Full-time - 12 4-year Bachelor Master of Accountancy months degree (any major) Evening – Own Unconditional pace Admission if Bachelor Cyber Campus – degree GPA >3.0 Own pace No GMAT requirement San Francisco State Full-time - 12 4-year Bachelor University months degree (any major) MS in Accountancy Part-time - Flexible Min GPA = 3.0 Average GMAT = 590 29 Tuition/Fees $36,000 (FAIM – 15 month tuition) $10,170 + Fees of $4,700 Fees - $515/unit Total = 30 semester units Total Tuition = $15,450 Fees - $2,340 (per unit course) Program Requirements = 36 units Total Tuition = $28,080 California resident (part-time) - $9,609 California resident (full-time) - $11,258 Non-California resident (part-time) $20,769 Non-California resident (full-time) $22,418 It can be seen from Figure that there are only other master’s programs in accounting in the Bay Area – the programs at San Jose State University; California State University, Sacramento, Golden Gate University and San Francisco State University Only two of these programs are structured to be easily converted to an MS in Accounting program that can meet the new California Accounting requirements, those at San Jose State and Sacramento State While there are no plans known to us in SEBA about San Jose State changing its program to accord with the directive in SB-819, our competitive intelligence tells us that the new online program at Sacramento State (CSUS) is currently undergoing approval for launch sometime this year or early next year What is significant about the likely competitors is the low price (ranging from $14,870 for SJSU to $28,080 for CSUS) for their program offerings In order to attract students at the considerably high price of $36,000, we have designed a program with solid differentiators (discussed below) and with exceptional high-touch service compared to our potential competitors Our part-time offering with the flexible hybrid classes during the busy year-end closing and tax seasons and the other differentiators (below) would make the crucial difference The Saint Mary’s Difference or the main differentiators of the MSACC program can be summarized as follows:          15-month accelerated program Structured to allow and encourage students to take and pass all four parts of the CPA during their participation in the MSACC program Curriculum is designed to complement preparation for the CPA exam Hybrid classes during the audit and tax busy seasons will provide students convenience and flexibility and will be a unique competitive advantage of the SMC program because of our distinctive competence in hybrid program delivery The Masters Colloquium will provide ample opportunities for students to conduct and present research on current events and interact with professionals and regulators while developing their professional and networking skills and contacts Students have the opportunity to attend Professional Development Program Seminars that build their capability and competency as well-rounded accounting professionals Flexibility in quarterly format and 2-day a week evening schedule with hybrid classes during the busy season enables program participants to work full-time while earning their MS in Accounting degree High quality Lasallian teaching by qualified faculty Meet the Firm’s night and Alumni events to encourage networking among professional accounting firms and corporations Classes in San Francisco financial district – convenient for working professionals 30 The possible threats to the MSACC program in a very competitive Bay Area professional education can be summarized as follows:  Unable to hire full-time accounting faculty  Current faculty not interested or not allowed to overload to teach in the MS program  Significant competition from many AACSB accredited schools in the Bay area  Expensive compared to programs offered by state universities 31 ACTION PLAN AND BUDGET We will aggressively market our program not only to our own undergraduates but also to undergraduates graduating from other institutions We hope to send flyers and posters to these other schools and in some cases even visit schools to make a pitch for our MSACC program As discussed in Section above on Target Group and Program Demand, Figure provides a summary of the potential demand for an MS in Accounting or a fifth year of study beyond the 4-year undergraduate program As we can see from the study, we expect a total potential demand of 645 students per year in the Bay Area for a MS in Accounting program If we focus only on attracting Saint Mary’s students for the MS program, we expect about 29 students to apply for the MS program We believe we can attract at least another 10-15 students from other undergraduate accounting programs in the Bay Area Based on the opportunity to establish a focused and high-demand program targeted at a soon to be underserved target student due to the change in California accounting education requirements and the opportunity to increase enrollments in our graduate programs at Saint Mary’s College, we have targeted an action plan for establishing the ASACC program in Graduate Business that has the implementation time-line outlined in Figure The program is targeted for launch in July 2013 based on this time-line Figure Implementation Action Plan Timeline for MSACC Program ACTION/TASK DUE DATE RESPONSIBLE INDIVIDUAL(S) December 12, 2011 – January 20, 2012 Suneel Udpa and Greg Merrill January 20, 2012 – February 10, 2012 Greg Merrill Accounting Department Meeting February 7, 2012 Greg Merrill Refine the Proposal February 13, 2012 Suneel Udpa and Greg Merrill Prepare Library Review Report March 5, 2012 Sharon Radcliff Present “MS Accounting Program” Proposal to the SEBA PCC Committee March 5, 2012 Greg Merrill and Shyam Kamath Finalize the Proposal March 6, 2012 Suneel Udpa, Greg Merrill and Shyam Kamath Send the Proposal to the GPSEPC March 7, 2012 Shyam K & Greg Merrill Present MS Accounting Program Proposal at the GPSEPC meeting March 21, 2012 Shyam Kamath and Greg Merrill Present MS Accounting Proposal at the April 19, 2012 Shyam Kamath and Greg Develop “MS Accounting Program” Proposal Solicit feedback from SEBA accounting faculty (UG and GR) 32 Academic Senate meeting Obtain GPSEPC and Academic Senate Approvals for MSACC Program Merrill Latest by April 20, 2012 Shyam Kamath and Greg Merrill Assign and Complete Detailed Course Outlines and Course Assessment Tools by SEBA Accounting Department faculty May 15, 2012 Greg Merrill (and Suneel Udpa) Finalization of Program Delivery Details, Venue Commitments and faculty Teaching Schedules July 15, 2012 Greg Merrill and Shyam Kamath Preparation of Program Marketing and Recruitment Materials September 15, 2012 Shyam Kamath and Greg Merrill with Jackie Williams Finalization of Recruitment Campaign October 15, 2012 Shyam Kamath and Holly Dalton Launch of Recruitment Campaign November 1, 2012 Shyam Kamath and Holly Dalton Completion of First Round of Rolling Admissions of Students January 31, 2013 Holly Dalton Completion of Second Round of Rolling Admissions of Students March 15, 2013 Holly Dalton May 15, 2013 Holly Dalton July 2, 2013 Greg Merrill and Shyam Kamath October 15, 2014 - December 15, 2014 Greg Merrill, Suneel Udpa and Shyam Kamath October 15, 2015 Greg Merrill and Shyam Kamath Completion of Final Round of Rolling Admissions of Students Launch of 1st Cohort of MSACC Program Completion of 1st Cycle of MSACC Program Review of 1st Cycle of MSACC Program Submission of MSACC Program Review for Final Approval by GPSEPC and Senate As noted in the time-line above, the MSACC will be brought back to the GPSEPC and Academic Senate for final approval in October 2015 This approval will be obtained a full year after the program has run through a full cycle of classes and assessment of the outcomes Based on these demand projections, the MSACC program is expected to break even in the very first year of operation and meet the 30% contribution to the College by the third year of 33 operation based on very conservative enrollment assumptions The summary budget for the program is shown in Figure below Figure Pro-forma 3-Year Budget for the MSACC Program # in class Revenue Tuition Direct Costs Faculty and Staff Costs Operating Expenses (incl Marketing) Total Direct Cost Year 15 Year 20 $432,000 $626,400 $705,600 $256,520 $277,480 $277,480 $154,500 $178,500 $172,500 $411,020 $455,980 $449,980 $20,980 Contribution Margin Percentage 4.86% Contribution 10 Year 18 $170,420 $255,620 27.21% 36.23% REQUEST FOR APPROVAL We have presented a detailed proposal for a new Masters of Science in Accounting (MSACC) program in the School of Economics and Business Administration at Saint Mary’s College This new program is based on the new accounting education requirements that have been promulgated by the State of California where would-be professional accountants studying for the Certified Public Accountant (CPA) qualification 34 will be required to an additional 30 semester hours (40 quarter hours) of study beyond the average 120 semester hours of study that most undergraduate degree programs require SB-819 will require a minimum of 150 semester hours of undergraduate study with at least 68 hours in accounting, auditing, business, law, finance or tax subjects with at least 30 of the hours in accounting subjects acceptable to the California State Board of Accountancy This proposal has presented a clear and cogent plan of action covering the areas of mission and purpose; target group and program demand; program structure; learning goals and objectives; impact on SEBA and the College; assessment tools; competitor analysis; and financial and action plan in accordance with the SMC guidelines for program review Based on the comprehensive information and data presented in this proposal, it is requested that provisional approval be given to establish the MSACC program in the School of Economics and Business Administration at Saint Mary’s College 35 ... Year 20 $432 ,00 0 $626, 400 $ 705 , 600 $256,5 20 $277,4 80 $277,4 80 $154, 500 $178, 500 $172, 500 $ 411, 02 0 $455,9 80 $449,9 80 $ 20, 9 80 Contribution Margin Percentage 4.86% Contribution 10 Year 18 $1 70, 4 20 $255,6 20. .. not-for-profit accounting principles Professional research skills are emphasized in this course MACC 204 – International Accounting The course examines the international dimensions of accounting including... Goal 1 .0 - Critical Thinking in Accounting and Understanding of Accounting Principles, Theories and Concepts Each student develops a deeper knowledge and understanding of accounting principles,