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Journal of Education for Business
ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20
The Seneca Babcock Business Plan: A Case Study
in Using Service Learning to Meet the AICPA Core
Competencies
Daniel J. Tschopp
To cite this article: Daniel J. Tschopp (2004) The Seneca Babcock Business Plan: A Case Study in Using Service Learning to Meet the AICPA Core Competencies, Journal of Education for Business, 79:5, 261-266, DOI: 10.3200/JOEB.79.5.261-266
To link to this article: http://dx.doi.org/10.3200/JOEB.79.5.261-266
Published online: 07 Aug 2010.
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n 1999, the American Institute of Cer-tified Public Accountants (AICPA) unveiled its “Core Competency Frame-work,” based on its “CPA Vision” regarding the future of the accounting profession. The AICPA describes the framework as a “set of requisite compe-tencies for all students preparing to enter the newly envisioned accounting profes-sion that is positioned higher on the information value chain” (AICPA, 2003). Three categories of competencies make up the framework: functional, technical competencies most closely aligned with the value contributed by accounting professionals; personal, indi-vidual attributes and values; and broad business perspective competencies relat-ing to understandrelat-ing of internal and external business contexts (AICPA, 2003). The framework focuses on com-petencies rather than subject content because of the rapidly changing nature of the industry (Foster & Bolt-Lee, 2002). Experience in these broad-based skills is invaluable to students when they graduate.
Daemen College in Amherst, New York created a service-learning project to help meet these competencies. As part of the accounting department’s learning objectives, each accounting major is required to participate in a high-priority group project that is not part of a course-based, credit-bearing class. In 2003,
seven accounting students were given the task of writing a business plan for the distribution of grant funds for the reha-bilitation of existing owner-occupied property in the Seneca Babcock Com-munity. The project was selected because of the close working relation-ship our college has with the Seneca Babcock Community and because the need for help in the funding process was brought to our department’s attention by community leaders. The use of service-learning projects such as this has increased in accounting programs, pri-marily because there is overlap between the increased competencies demanded by the accounting profession and the educational outcomes of service
learn-ing (Rama, Ravenscroft, Wolcott, & Zlotkowski, 2000).
The Seneca Babcock Community is a neighborhood of approximately 450 households located in South Buffalo, New York. The neighborhood itself is in need of renovation and economic growth. Housing conditions have deteri-orated, and local businesses (restau-rants, grocery stores, health care facili-ties, etc.) have abandoned the neighborhood. The service portion of this project is designed to help the Seneca Babcock Community gain access to grant money and form a plan to distribute the funds to best meet the needs of its people. The learning portion of this project involves addressing the functional, personal, and broad business perspective competencies of the AICPA’s “Core Competency Frame-work.” In this article, I justify the inclu-sion of service learning in accounting programs and discuss the development of a business plan that specifically addresses each of the competencies of the framework.
Why Service Learning?
The trend toward service learning, as opposed to traditional community ser-vice, is a natural progression of height-ened educational goals. Why should a department or instructor require
com-The Seneca Babcock Business Plan:
A Case Study in Using Service
Learning to Meet the AICPA
Core Competencies
DANIEL J. TSCHOPP
Daemen College Amherst, New York
I
ABSTRACT.In this article, the author explains the trend toward service-learning projects in higher education and justifies their use in the field of accounting. He describes a service-learning project that was used to directly address the development of the competencies listed in the Core Com-petency Framework created by the American Institute of Certified Public Accountants (AICPA). The project involves designing a business plan for a local community seeking to request and distribute grant funds for the reha-bilitation of existing owner-occupied property in the area. Components of the service-learning project address all three categories of competencies: functional, personal, and broad busi-ness perspective competencies.
munity service, which provides little educational value, when service learn-ing that benefits the community and educates the student can be performed? In 1998, the W.K. Kellogg Founda-tion began an initiative called Learning in Deed: Making a Difference Through Service-Learning. The Commission encouraged educational institutions and policymakers to adopt service learning, defined as an organized ser-vice activity that addresses identified community needs and provides a broader appreciation of the discipline and awareness of civic responsibility (Bringle & Hatcher, 1995).
The justification for a service-learning requirement is based on the premise that all objectives cannot be met in the tradi-tional classroom setting. Other disci-plines have implemented service learn-ing successfully in their curricula. However, it is difficult to find good examples of service-learning projects in the field of accounting. Thus, I sought to describe a service-learning project that was used specifically to address the goals of the AICPA core competencies.
Functional Competencies
The functional competencies repre-sent the technical aspects of the frame-work. Accounting educators see a strong relationship between service-learning outcomes and the functional competen-cies (Rama et al., 2000). The functional competencies addressed by this service-learning project include research deci-sion modeling and reporting.
The first task of the project involved identifying the needs of the community. This entailed researching the neighbor-hood itself to learn about the people and their environment. As a first step, the students toured the neighborhood, spending time at the local community center. Understanding one’s environ-ment is crucial in the decision-making process. The students continued their research by developing a community profile based on previously compiled census data that included the population number, age, race, and type of housing of the residents.
To identify the specific needs of the community, the students created and administered a survey to gather data on
the residents’ housing needs. The stu-dents worked through a liaison, Richard Knaub, the executive director of the Center for Sustainable Commu-nities and Civic Engagement, to under-stand better the social and political cli-mate of the area. The survey had the following objectives:
1. Determine the level of interest of those who would like to participate in the grant process.
2. Determine if anyone in the area already provides the services that will be needed.
3. Prioritize the most important needs of the homeowners.
After compiling the survey data, the students entered the decision-modeling phase of the project. Through discus-sions with community leaders and analysis of the survey data, students formed a recommendation:
1. Due to the high response rates from two streets (Peabody Street and Orlando Street) and limited amount of funds, these two streets should be rehabilitated first.
2. The funds should be used to bring the aging homes on these two streets up to code.
By focusing on two particular streets, the students would see the impact of the rehabilitation efforts more clearly. They concluded that their demonstration of a successful restoration process would increase the likelihood of receiving these grants in the future. The results also indicated that they would need to conduct systematically a series of con-secutive annual projects to reach the community goal of restoring the neigh-borhood to its former vitality.
The students reported their conclu-sions by developing a business plan (see Appendix). The business plan was pre-sented to the executive director of the Center for Sustainable Communities and Civic Engagement and other community leaders for analysis. The results of the survey and recommendations were also used in the grant application process.
Personal Competencies
The personal competencies, or the behavioral aspects of the framework
addressed by this project, include pro-fessional demeanor, problem-solving ability, interaction, leadership, commu-nication, and project management.
The personal competencies include elements designed to facilitate the pro-fessional growth of future accountants. Although general, these skills include the necessary characteristics and traits that current employers demand. In developing the framework, the AICPA’s objective was to create competencies for all accounting majors regardless of their future career path (Thomas, 2000). This project gave the students respon-sibility and ownership of their work, allowing them to acquire the skills needed for success. The responsibility assigned to the students allowed them to work together as a group to gather infor-mation objectively, make appropriate judgments, and communicate their con-clusion in a professional manner.
Rama et al. (2000) provided evidence that service learning can help students build the interpersonal skills necessary to succeed (2000). The team concept of this project created an atmosphere con-ducive for learning and growth. The stu-dents had to search out and interact with the appropriate personnel. The project required the students to manage their time and resources to follow the project effectively and efficiently through to completion. Specifically, the students had to coordinate meetings with admin-istrative and community leaders to ask questions and gather information.
Broad Business Perspective Competencies
The broad business perspective com-petencies, which represent the perfor-mance aspects of the framework addressed by this service-learning proj-ect, include strategic critical thinking skills and industry/sector perspective.
The students exercised strategic and critical thinking skills when writing a business plan for the distribution of grant funds for the rehabilitation of existing owner-occupied property in the given community. The skills were enhanced during the needs-assessment phase of the project. After gathering the necessary information from research, surveys, and interviews, the students
were able to identify the strengths and weaknesses of the Seneca Babcock Community and the opportunities and threats that it faced. This entire strategic planning process culminated in the cre-ation of the Seneca Babcock Business Plan (Appendix), which contained the conclusions mentioned earlier.
One day these same students may specialize in a specific industry or sec-tor. The experience obtained in this service-learning project will help them prepare for such an event. Following the objectives of the Core Competency Framework, the students considered both the internal and external business environments of the community in their decision-making process. They researched the history and background of the community just as an auditor would before an engagement. Keeping in line with the goals of the framework, they also considered the economic and political impact that their decisions would have on the community.
Conclusion
The AICPA identified these competen-cies to make accounting students adapt-able to today’s ever-changing business environment. Many of these competen-cies are difficult to teach in the tradition-al classroom setting. Albrecht and Sack (2001) concluded that the lack of service learning is one problem currently affect-ing accountaffect-ing education. Not only does this service-learning project allow stu-dents to meet the core competencies, but it also allows them to integrate the skills from all three categories, which is diffi-cult to accomplish in the classroom.
Table 1 provides the rubric used to assess how well the AICPA core com-petencies and departmental require-ments were met. Column 1 contains the AICPA core competencies listed in the framework. Students completed col-umn 2, “How the competency was addressed,” and the instructor complet-ed column 3 by evaluating how well the competency requirement was met on a scale ranging from 0 (not addressed) to 5 (competency completed).
Although this project was designed to address the learning objectives of the accounting department, the rubric in Table 1 easily could be modified for
grading a course-based, credit-bearing class.
There has been an increase in both the effort and success of incorporating service learning into business schools’ curricula (Godfrey, 2000). Service-learning projects afford students “an opportunity to solve problems, deal with messy or incomplete data, and interact with organizational personnel,” all tasks that build skills consistent with the goals of the framework (Gujarathi & McQuade, 2002, p. 68). A project simi-lar to the Seneca Babcock Business Plan
easily can be developed by any account-ing program and may be the most effi-cient and effective way to develop the AICPA core competencies.
REFERENCES
American Institute of Certified Public Accoun-tants (AICPA). (2003). What is the Framework?
Retrieved August, 2003, from http://www. aicpa.org/edu/overview.htm
Albrecht, S., & Sack, R. (2001). The perilous future of accounting education. The CPA Jour-nal, 71, 16–23.
Bringle, R., & Hatcher, J. (1995). A service-learning curriculum for faculty. Michigan Jour-TABLE 1. Assessment of How Well Students Met AICPA Core
Competencies
Competency How the competency was addressed Assessment
Functional competencies
Decision modeling Recommended conclusions for the
distribution of grant funds 4 Risk analysis Addressing political and economic
implications of the conclusion 1 Measurement Needs assessment section of the business
plan 3
Reporting Creation of the business plan 5
Research Interview and survey 5
Leverage technology Not addressed 0
Personal competencies
Professional demeanor Professional demeanor during interviews
and presentation 5
Problem solving and
decision making Coming up with a method for the request
and distribution of grant funds 5 Interaction Meetings with community leaders 4 Leadership Taking responsibility and ownership of
assigned task 4
Communication Development and presentation of the
business plan 5
Project management Completing assigned task on time 5
Leverage technology Not addressed 0
Broad business perspective competencies
Strategic/critical
thinking Seeing business plan 5
Industry/sector
perspective Budgeting aspects 2
International/global
perspective Not addressed 0
Resource management Determining method to distribute grant
funds 4
Legal/regulatory
perspective Code violations were considered a
priority for rehabilitation 2 Marketing/client focus SWOT analysis performed 4
Leverage technology Not addressed 0
Note. Instructor assessed how well students met the core competencies on a scale of 0 (not addressed) to 5 (competency completed). Table is based on AICPA (2003).
nal of Community Service Learning, Fall, 112–122.
Foster, S., & Bolt-Lee, C. (2002). New competen-cies for accounting students. The CPA Journal, 72,68–71.
Godfrey, C. (2002). Service-learning and manage-ment education: A call to action. Journal of Management Inquiry, 8, 262–379.
Gujarathi, M., & McQuade, R. (2002). Service learning: Extending the curriculum. The CPA Journal, 72, 67–69.
Rama, D., Ravenscroft, S., Wolcott, S., & Zlotkowski, E. (2000). Service learning out-comes: Guidelines for educators and researchers. Issues in Accounting Education, 15,657–692.
Thomas, P. (2000). The competency-based pre-professional curriculum: A key component of vision success. Journal of Accountancy, 190,
128–131.
APPENDIX The Seneca Babcock
Business Plan:
The Plan for the Distribution of Grant Funds for the Rehabilitation of Existing Owner-Occupied Property
Prepared by: Accounting Students Daemen College
4380 Main St. Amherst, NY 14226
Staff
Dr. Richard Knaub Executive Director
Center for Sustainable Communities and Civic Engagement
rknaub@daemen.edu Daniel Tschopp, CPA
Assistant Professor of Accounting Daemen College
dtschopp@daemen.edu
Daemen College Students
Amy Wesoloski, Senior Accounting Major
Tom Dzielski, Senior Accounting Major
Mark Shoemaker, Senior Accounting Major
Shenese Talton, Senior Accounting Major
Monesha Harris, Senior Accounting Major
Tracy Burkardt, Sophomore Account-ing Major
Consuella Harge, Sophomore Business Administration Major
The Seneca Babcock Community
• People: Seneca Babcock Commu-nity Association is an organization of a small group of community-minded people with spirit and dedication to the neighborhood. This organization meets once a month to discuss various topics. • Housing: Numerous income-producing housing opportunities exist within the area. The housing needs ren-ovation, and the income produced from these renovated properties will be put back into the community.
• Business Opportunity: The neigh-borhood itself needs more supermar-kets, drug stores, clothing stores, etc. Many of the residents in this area need these services closer to their homes.
• Community Center: The Seneca Babcock community center provides a place where residents can go to enjoy crafts, weight training, computers, and youth coordination for free.
• Education: The community center offers a very inexpensive preschool pro-gram to develop children at an early age (3 to 4 years) and prepare them for ele-mentary school.
Need
• Access to public transportation systems
• More businesses in the area, including restaurants, laundry mats, grocery stores, and health care facilities • A better residential area for the community
• Increased educational opportuni-ties for the children
Goals
• Satisfy housing code requirements mandated by the city
• Rehabilitation of existing owner-occupied property
• Community revitalization
• Deliver affordable housing and rental property
• Network with a variety of schools, community agencies, and community development corporations for educa-tion, job development, and economic development activities
• Ensure sustainability, organiza-tional health, and the ability to
improve future performance in the community
Sources of Funding
• Fannie Mae Foundation Grant* • Matching contributions from owner-occupied households receiving benefits
*The Fannie Mae Foundation seeks to preserve and increase the supply of afford-able housing for low- and moderate-income renters and homeowners to revitalize neigh-borhoods across the United States. The foundation strives to advance national, regional, and local housing production sys-tems in ways that ensure the development of quality affordable housing that benefits both individual residents and neighborhoods. The foundation does not allocate grant funds toward capital expenditures for affordable housing production (i.e., specific housing development projects) but rather to support successful and/or innovative approaches that address affordable housing challenges and enhance the operations of particularly effec-tive, produceffec-tive, and accountable nonprofit organizations working in the industry.
The Mission
The Center for Sustainable Commu-nities and Civic Engagement partners Daemen College and its students with communities to promote civic responsi-bility that leads to communities that are healthy, safe, and vital and that will remain so for future generations.
• Daemen’s social-work students work with local residents and communi-ty leaders to help address basic social and human services and to help resi-dents receive the government and other assistance that they need and deserve.
• Daemen’s education students work with local schoolchildren, developing after-school recreational and education-al programs and tutoring and mentoring young children to help them grow and develop fully in their education, includ-ing passinclud-ing required tests.
• Daemen’s physician-assistant stu-dents work with local resistu-dents to con-duct a range of health screenings and testing, as well as to create wellness programs to help the community enhance its well-being and become more healthy.
• Daemen’s business and accounting students work with local business and
community leaders to help develop solutions to neighborhood economic and business development challenges, including linking local residents to local businesses and retail establishments.
• Daemen’s government students’ work with local community and gov-ernment leaders to help neighborhoods develop their own community devel-opment plans, and the students also work with local residents to help them more fully participate in the political process and have a larger voice in their community.
Community Demographics
Seneca Babcock Resident Profile*
• Population: 1,320 • Households: 447
* Information obtained from 2000 Census
Needs Assessment
In 2001, the Partnership facilitated a series of community meetings. The con-sensus was reached that the communi-ty’s housing stock is in need of signifi-cant improvement and a series of priorities for neighborhood improve-ment were developed. In 2002, a survey of housing needs was conducted and indicated that a series of consecutive annual projects would need to be con-ducted systematically in order to reach the community’s goal of restoring the neighborhood to its former vitality.
Survey Objectives
• Determine the level of interest of those who would like to participate in the grant process.
• Determine whether anyone in the area already provides the services that will be needed.
• Prioritize the most important needs of the homeowners.
Survey Results
• Responses: 37 • Homeowners: 68%
• Residents willing to contribute an average of 31.25 hours each to the reha-bilitation efforts: 78%
• Residents currently holding a job
that could aid in the restoration of hous-ing in the area (i.e., construction, elec-trical, painting, roofing, landscaping, plumbing, etc.): 42%
• Residents willing to invest/donate financial resources to help restore hous-ing in the area: 25%
• Residents willing to participate in the grant proposal process: 88%
• Residents believing that Seneca Babcock needs affordable energy-efficient housing: 100%
The most pressing housing needs that face the residents (listed in order of importance) and their estimated cost:
1. Windows ($5600 *1) 2. Siding ($6,000–$10,000 *2) 3. Roof (patch job $400, *3a New $9,000 *3b)
4. Exterior doors ($300 *4)
5. Repair concrete driveway/front steps ($500 *5)
6. Plumbing ($325 *6)
7. Interior walls and ceiling ($1000 *7)
* Information obtained from 2000 Census.
Race Distribution
White
Black
Other
2% 3%
95%
Age Distribution
0-24
25-49
50-74
37% 14%
49%
Age Distribution:
Nonfamily Households 15-54
55+
37%
63%
Housing
Family
Nonfamily 400
300
200
100
0
Family Nonfamily
8. Electric ($400 *8) 9. Landscaping ($500 *9) 10. Insulation ($395 *10)
Estimates based on the following: *1 10 windows from American Craftsman “Ander-son Company,” *2 www.siding4u.com, *3a Home Depot, *3b Grand River Roofing Co., *4 2 main entry wooden doors, Lowe’s, *5 unit step, *6 toilet or hot water heater replacement from Norton’s Plumbing, *7 repair/paint ceiling, general contractor, *8 Milan Osusky, General Contractor, *9 Dan Johnson, General Contractor, *10 56 menu rolls from Home Depot.
The Plan
Existing city funding for owner-occupied home restoration is based on the need to bring aging housing stock up to code. The proposed program will provide a 50% match to homeowners wishing to bring their homes up to compliance. Although many residents of the community cannot afford to par-ticipate in the program, Fannie Mae funds may be used to provide the other half of the funding to complete the project. This would allow residents to bring their homes up to code in the first phase of a broader neighborhood redevelopment strategy.
Initial efforts would focus on one or two target streets, which would be
chosen based on the number of home-owners participating, representative housing stock, and availability of funds. The project would focus on cre-ating a critical mass of restored hous-ing stock in a small area that could serve as a rallying point for the rest of the neighborhood. Lessons learned in the restoration of these homes would provide more specific estimates for developing future plans and funding for housing renovation.
Recommendation
A survey was administered in the Seneca Babcock community. This survey dealt with the most common problems found in and around the owner-occupied
homes in the area. The highest response rate came from Peabody Street and Orlando Street. Peabody and Orlando happen to have the greatest number of owner-occupied homes. Because of the limited amount of funds and the high response rates, we have chosen Peabody and Orlando as the areas recommended for rehabilitation. The funds should be used to bring the aging homes up to code. Rehabilitating the homes on Peabody and Orlando will demonstrate that funds are going toward the restoration of homes in the Seneca Babcock area and will increase the likelihood of receiving these grants again in the future. The fol-lowing chart shows how the money will be allocated according to the necessity of the owners/occupants.
Peabody Orlando Watson
Surveys (N= 37) Owner occupied: 4 Owner occupied: 3 Owner occupied: 2
Electric $800 $800 $0
Siding $24,000–$40,000 $6,000–$10,000 $6,000–$10,000
Insulation 395.00 1,185.00 395.00
Roofing — 800.00 400.00
Windows 16,800.00 16,800.00 —
Doors 600.00 300.00 —
Plumbing — 325.00 325.00
Wall ceiling — 1,000.00 1,000.00
Landscaping — 500.00 500.00
Total $42,595–$58,595 $27,710–$31,710 $8,620–$12,620
