Category Archives: Academics

classes, degree planning, academic workshops, CPA exam planning and preparation

Reality Check

BackpackStudents entering the tMPA program who did not major in accounting for their undergrad are asked to attend class for a 5-week summer session in order to get up to speed for fall courses. At first blush, it sounds somewhat hard to believe: take two accounting classes and catch up to students who took two years’ worth of accounting. Not only have these summer courses taught me more than I thought possible in this short amount of time, but also they have revealed the intentions of the program and the expectations of the students.

Having taken a couple of summer courses in undergrad, I expected Financial Accounting and Introduction to Taxation to follow a similar, relaxed pace. Boy, was I wrong! They are much more grueling than even my toughest undergraduate courses. Truly, I am glad to have found my study group so quickly (thanks to the MPA-sponsored pizza party the week prior to class) because we have had 4 tests in the past 4 weeks and are preparing for 2 more tests and 2 projects over the upcoming week. Thankfully, we’ll have a couple of days off before Orientation starts, and then we get to meet the rest of our class.

While dealing with the blistering pace of summer courses, however, I’ve realized I am not here to make easy A’s. In fact, I’m not at this program to check a box and take 30 hours. I chose the Texas MPA because I have only one year to get the best education I can. Additionally, it gives me the chance to recruit with top firms, work alongside the smartest students, and learn from a superb faculty. If such an opportunity means late nights and early mornings, then I will take those gladly because I know many people would gladly trade places with me right now.

Summer Classes are Here

Summer SchoolWe are two weeks into the second semester of summer courses and time has been flying by. Between both of my classes, I have already read 13 textbook chapters this semester—McCombs professors do not mess around! This past week was especially busy between our Financial Accounting exam on Wednesday and our Introduction to Taxation exam on Friday (there was a bit of a sleep deprivation epidemic going around). Everyone in the program has at least some experience with Financial (Introduction to Financial Accounting is one of the program prerequisites, plus we were sent that whopper of a self-study packet I mentioned in my previous post), so some material is familiar there, but Tax is different because it is completely new to most of us. I definitely find tax interesting and I think it is wise for this class to be scheduled first thing so students can have time to feel out whether or not the tax track is something they would like to pursue. I know there are a few people in the class heavily considering it.

Both Brian Lendecky (Financial) and Terri Holbrook (Tax) have been great professors so far. They know summer courses are intense, so they make an effort to keep things fun and interesting. On Tuesday, Brian showed us a few methods for compiling a Statement of Cash Flows, one of which employed the formula: △Cash = △Liabilities + △Shareholder’s Equity – △Non-Cash Assets (a derivation of the standard accounting equation Assets = Liabilities + Shareholder’s Equity). Each time we would use the formula, he would call on a student to solve the equation and ask something along the lines of “What is 0 + 0 – 20,000?” The student would answer (always correctly of course), and then Brain would say “#1 accounting program in the country right here.” We laughed every time…or at least I did. Who knew Accounting could be so entertaining?

Ethics – Fundamental Attribution Error

When we read the stories about Enron, HealthSouth, and other accounting scandals, what is usually mentioned is the malicious intent of the executives to perpetrate a fraud. This is because “bad people do bad things,” right? Although the stories are instructive of how things can go wrong in an organization and how it can affect those involved, it is easy to forget about how we are all susceptible to the same temptations.

The fundamental attribution error is the human tendency to attribute the cause of these wrongdoings to the character of the individual who committed them. It’s called an error because, overwhelmingly, human behavior is determined more by environment than inherent personality traits. This error of perception works both ways, too: when something goes right, we tend to think that it was due to our virtues and/or skills rather than external factors (sheer luck, a good supporting staff who helped along the way, or a stock-market generally on an uptick). This, combined with the fact that people tend to rate their ethical inclinations higher than they actually are, is a troublesome sign for working professionals in just about every field. A fraud can begin with an innocent mistake, and continue because the perpetrator needs to cover it up. Of course, this is because they do not believe themselves to be a bad person.

However, being aware of the problem is an important step toward preventing future unethical behavior. That accountants spend a great deal of time thinking about internal control perhaps serves as a tribute to this way of thinking. We restrict access and separate duties of employees in a manner that reflects the notion that environmental factors are strong determinants of behavior. Surely these companies do not go around hiring bad people all the time so that they feel the need to exercise constant vigilance. These employees go along with it without feeling as though they are distrusted because the company thinks they are bad people and thus likely to steal from them. It is an unfortunate fact of life, but you can put an otherwise good person in a position where they can commit fraud without oversight or control, and you will run the risk of a fraud occurring.Thumbnail_FundamentalAttributionError_01_21_14_Version_01-1024x576

For more about the psychological aspects of ethics, see Ethical Decision Making: More Needed Than Good Intentions and the Ethics Unwrapped Series, both by Robert Prentice, McCombs School of Business.

Bill Powers and the University of Texas

Large_university-of-texas_seal_rgb(199-91-18)Despite having arrived in Texas only one year ago, I have been paying attention to the controversy surrounding the university’s President, Bill Powers, for some time. It has made national news and recently culminated in his announcement of resignation in 2015. The issue has many facets, not least of which is what the fundamental purpose of the university should be. The University of Texas is a world-class research institution and the flagship university of the state of Texas, but some argue that increasing tuition costs are cheating students out of a low-cost education.

Sure, if we could have it both ways we would provide every student with a top education for pennies. The fact is that tuition costs are soaring everywhere, not just UT, and declining state funding is part of the cause for the increase. Another reason commonly cited, again not just at UT, is the increasing administrative burden on university budgets. That said, the idea that college education should be cheaper to make it more accessible to students sounds like a positive notion on its face, but the side-effects could result in consequences antithetical to the stated goals of its proponents.

The Board of Regents has accused UT of wasting too much money on “ivory tower research” that does not result in much benefit to the public or students. The solution? Force professors to teach more classes and do less research so that fewer professors would be required to be on the payroll. Some unfortunate side-effects of that policy would be that the best professors would leave for other universities that do allow for research opportunities, leaving students with fewer professors that have extensive knowledge of current research in their fields. This is not to say that professors who do not engage in research are inferior, but an important part of a college education, particularly in technical fields, is learning about the forefront of progress. Another side effect would be found in rankings, which are dependent in part on the volume and quality of research. UT has numerous highly-ranked programs that would suffer in several ways. This would also result in employers of UT graduates that frequently recruit here because of the prestige of the academic programs becoming less inclined to do so.

Additionally, many of those students who come from out of state (or out of country, for that matter) would cease to come to Texas if not for the prestige and opportunity offered here. These are the students who pay the most in tuition, and whose absence would be well-noticed on UT’s “bottom line.” The brain-gain that Texas enjoys from these students coming from all over the world ripples through the state’s economy as they graduate and become employed in high-tech industries, which are attracted to the state because of its well-educated labor pool.

Further, what about the Texas residents seeking a world-class education? If UT’s education were cheapened, would they remain in-state at a public university? Not likely – top performers will seek their next best opportunity, and if that involves going to another state and paying top tuition rates there, they will do so.

If Texas is in need of more accessible college education for its citizens, why provide it at the expense of another group of its citizens and the economy at-large? Would it not be easier to convert, say, Austin Community College into a 4-year university? Is UT the only university in the state that is capable of providing what these reformers seek? They could also more effectively achieve their goal by attacking the administrative cost of the university, rather than sacrificing academic excellence in order to lower tuition. Of course, this would not necessarily make education at UT more accessible, but definitely less burdensome since colleges typically do not compete on tuition rates due to the fact that many students take on loans.

The bottom line is that UT has spent decades growing through investment to become one of the top universities in the country. That legacy should not be discarded so quickly. I agree with the Regents that we should do what we can to reduce tuition, but they should be more prudent in their actions and make sure that they do not sabotage their own goals by ignoring side effects that could potentially subvert those goals.

New to Austin and Ready to Go

IMG_8515Hello to the UT MPA blogosphere! My name is Olivia and I am currently gearing up to start my tMPA experience in about a week.  First…some information about my background. My undergraduate degree is in Fine Arts, so my path to the UT MPA is a bit atypical. Though I was strong in math in high school and started off in Engineering as a college freshman, I quickly discovered the dark rooms on UPenn’s campus and fell hard for photography. When I graduated with my bachelors, I headed out to San Francisco on a whim and soon found myself at a 9-5 desk job that included a sprinkling of Accounts Payable. Yearning for more, I signed up for an evening Financial Accounting class. That class quickly spiraled into more coursework that inspired me to  research graduate programs.

Two years and four months after that first Financial Accounting class, I am thrilled to be writing on this blog, which was akin to a bible for me throughout my application process. I moved to Austin just under a month ago, and so far I am loving it. Truthfully, a lot of my time has gone to setting up my apartment, brushing up my resume, and most significantly, hunkering down and making my way through a 243 page learning resource that the MPA office mailed out to those of us enrolled in Financial Accounting this summer called “Solid Footing.” I just finished it and must admit, I feel like a master of debits and credits. Hard work aside, I have had some time to explore the city. Some of my favorite experiences have been: meditating in The Color Inside, eating at Kin and Comfort (unique and delicious Thai/Southern fusion), lingering on Rainey Street (especially on a weekend afternoon), exploring The Ransom Center (their WWI exhibit is incredible), seeing Obvious Child at Violet Crown (the theater has a modern design, reserved seating, and tasty food), relaxing on Spider House’s patio, and tubing on the Guadalupe River. High on my to-do list are the Umlaf Museum and Sculpture Garden, Lady Bird Johnson Wildflower Center, the Baylor Street Art Wall, and ziplining on Lake Travis at night. Between all of the festivals, museums and galleries, restaurants, parks, and historical landmarks, I don’t think I will run out of things to do in Austin anytime soon.

Though I could easily occupy my time with non-academic, non-career pursuits, there is work to be done! I came to Austin for UT’s MPA program of course, and things will kick off for me this summer with ACC 381 – Financial Accounting with Brian Lendecky and ACC 380K.11 – Introduction to Taxation with Terri Holbrook. This is a pretty typical summer schedule for those entering the tMPA, unless you come to UT with academic waivers. After 5 weeks of those courses, we have a week of orientation. The orientation schedule was recently published and it is a jam-packed week including a faculty lunch, an Academic Advising presentation, a career panel, an etiquette dinner and finally, a two and a half hour career fair. Five days later, fall classes officially start. There really won’t be a break for most MPAs as BA 285T – Financial Management with Ramesh Rao starts during orientation week, before the start of most Fall classes.

I’m ready. Are you?