Finance in the public sector
public/nonprofit finance: budgeting and appropriations, fund accounting, cost-effectiveness and outcomes, grants, and constraints on spending.
Public sector and nonprofit finance operates under a different logic than corporate finance: the goal is mission delivery and stewardship, not profit maximization. This block builds fluency in how governments, agencies and nonprofits budget, account for, and report on resources entrusted to them by taxpayers, donors and grantors. You will learn fund accounting, budget cycles, and the metrics funders and auditors actually check, from indirect cost rates to bond ratings. You will also learn the regulatory frameworks (GASB, FASB, OMB Uniform Guidance) and the due-diligence questions that distinguish a well-run public entity or nonprofit from a mismanaged one, so you can read financial statements, budgets and audits with confidence in this sector.
What you'll master
- Read and interpret government and nonprofit financial statements, including fund accounting and net asset classifications
- Calculate and benchmark key ratios such as program efficiency, overhead/indirect cost rate, days cash on hand, and debt service coverage
- Evaluate a government budget or nonprofit grant proposal for fiscal soundness and compliance with funder requirements
- Identify red flags in audits, 990 filings, and single audits that signal financial or governance risk