Financial Management for Public, Health, and Not-for-Profit Organizations
Sixth Edition
- Steven A. Finkler - New York University, USA
- Daniel L. Smith - University of Delaware, USA
- Thad D. Calabrese - New York University, USA
March 2019 | 632 pages | CQ Press
“No other textbook does a better job of providing public administration students with the financial skills, vocabulary, and knowledge that are necessary for successful careers in government, nonprofit, and health care.”
—David Matkin, University at Albany - SUNY
Reflecting recent changes in accounting standards, this Sixth Edition of Financial Management for Public, Health, and Not-for-Profit Organizations provides a comprehensive yet practical introduction to the financial decision-making and management skills required of students and practitioners in the public, health, and not-for-profit sectors. Assuming that readers have no prior training in financial management, the authors artfully combine the principles, theory, and analytics of accounting and finance. In every chapter, a wide range of exercises, case studies, and problems help students develop strong financial assessment and judgment proficiencies while reinforcing the essential mechanics of accounting.
Instructors, sign in at study.sagepub.com/finkler6e for chapter-specific discussion questions, editable PowerPoint® slides, and more!
—David Matkin, University at Albany - SUNY
Reflecting recent changes in accounting standards, this Sixth Edition of Financial Management for Public, Health, and Not-for-Profit Organizations provides a comprehensive yet practical introduction to the financial decision-making and management skills required of students and practitioners in the public, health, and not-for-profit sectors. Assuming that readers have no prior training in financial management, the authors artfully combine the principles, theory, and analytics of accounting and finance. In every chapter, a wide range of exercises, case studies, and problems help students develop strong financial assessment and judgment proficiencies while reinforcing the essential mechanics of accounting.
Instructors, sign in at study.sagepub.com/finkler6e for chapter-specific discussion questions, editable PowerPoint® slides, and more!
Preface
Case Examples
About the Authors
PART I: INTRODUCTION: SETTING THE STAGE
CHAPTER 1: Introduction to Financial Management
| What Is Financial Management? |
| Public Sector Resource Flows |
| Why Discuss Public, Health Care, and Not-for-Profit in One Book? |
| Why Should Public Service Organizations Worry about Financial Management? |
| Should Public Service Organizations Earn a Profit? |
| Ongoing Case Study |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Appendix 1-A. Fundraising |
| Key Terms from This Appendix |
PART II: PLANNING
CHAPTER 2: Planning for Success: Budgeting
| Mission |
| Strategic Plan |
| Long-Range Plan |
| Budgets |
| Case Study: Special Purpose Budget |
| Behavioral Aspects of the Budget Process |
| Case Study: Developing a Government Budget |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
CHAPTER 3: Additional Budgeting Concepts
| Line-Item and Responsibility Center Budgets |
| Centralization versus Decentralization |
| Program and Functional Budgets |
| Budgeting Techniques |
| Additional Governmental Budgeting Issues |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Appendix 3-A. Performance Budget Example |
| Appendix 3-B. Forecasting Using Historical Data |
| Key Terms from This Appendix |
CHAPTER 4: Understanding Costs
| Basic Concepts and Definitions |
| Cost Behavior |
| Break-Even Analysis |
| Cost Measurement |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Appendix 4-A. Additional Break-Even Analysis Issues |
CHAPTER 5: Capital Budgeting
| Why Do We Need a Separate Capital Budget? |
| Definition of Capital Assets: Theory and Practice |
| Why Do Capital Assets Warrant Special Attention? |
| The Time Value of Money |
| Capital Asset Investment Analysis |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Exercises (TVM) |
| Problems |
| Appendix 5-A. Using a Financial Calculator for Time Value of Money Calculations |
| Appendix 5-B. Using Computer Spreadsheets for Time Value of Money Calculations—Examples |
CHAPTER 6: Long-Term Financing
| Equity Financing |
| Long-Term Debt |
| Social Impact Bonds (SIBs) |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Exercises (TVM) |
| Problems |
PART III: IMPLEMENTATION AND CONTROLLING RESULTS
CHAPTER 7: Managing Short-Term Resources and Obligations
| Working Capital Management |
| Short-Term Resources |
| Short-Term Obligations |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Case Study: The Case of the Missing Check |
| Appendix 7-A. Economic Order Quantity |
| Key Terms from This Appendix |
| Appendix 7-B. Credit Terms |
CHAPTER 8: Accountability and Control
| Management Control Systems |
| Measures of Performance |
| Controlling Quality |
| Variance Analysis |
| Ethics |
| Safeguarding Resources |
| The Form 990 |
| Consequences of Ethical Violations |
| Summary |
| Key Term from This Chapter |
| Questions for Discussion |
| Problems |
PART IV: REPORTING RESULTS
CHAPTER 9: Taking Stock of Where You Are: The Balance Sheet
| The Framework for Financial Accounting |
| Generally Accepted Accounting Principles |
| International Financial Reporting Standards |
| Fiscal Years |
| Balance Sheet Elements |
| Assets: A Closer Look |
| Liabilities: A Closer Look |
| Net Assets or Fund Balance: A Closer Look |
| Recording Financial Information |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Appendix 9-A. The Recording Process: Debits and Credits |
| Appendix 9-B. Using Dollar Signs and Underlines in Accounting |
CHAPTER 10: Reporting the Results of Operations: The Activity and Cash Flow Statements
| The Activity Statement |
| The Statement of Cash Flows |
| Interrelationships among Financial Statements |
| Notes to Financial Statements |
| Recording and Reporting Financial Information |
| Starting from Scratch |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Appendix 10-A. Sources of Revenue for Governments |
| Key Terms from This Appendix |
| Appendix 10-B. Accelerated Depreciation Methods |
| Appendix 10-C. Inventory Valuation Methods |
| Appendix 10-D. The Recording Process: Debits and Credits |
| Appendix 10-E. The Accounting Cycle |
CHAPTER 11: Unique Aspects of Accounting for Not-for-Profit and Health-Care Organizations
| Accounting for Not-for-Profit Organizations |
| Fund Accounting |
| Depreciation |
| Donated Goods and Services |
| Investments |
| Taxes |
| Accounting for Health-Care Organizations |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Case Study: Individual Rehabilitation Services (IRS) |
| Appendix 11-A. Taxation of Not-for-Profit Entities |
CHAPTER 12: Unique Aspects of Accounting for State and Local Governments—Part I: The Recording Process
| Bases of Accounting |
| Government Fund Accounting |
| Recording Financial Information |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Appendix 12-A. The Recording Process: Debits and Credits |
CHAPTER 13: Unique Aspects of Accounting for State and Local Governments—Part II: Reporting Financial Results
| Reporting Financial Information |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problem |
| Appendix 13-A. Interrelationships among Government Financial Statements |
PART V: FINANCIAL ANALYSIS
CHAPTER 14: Financial Statement Analysis
| Financial Statement Review |
| The Notes That Accompany Financial Statements |
| Ratio Analysis |
| Assessment |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
CHAPTER 15: Financial Condition Analysis
| Financial Condition Analysis |
| Financial Statement Analysis versus Financial Condition Analysis |
| Ratio Analysis |
| Summary |
| Key Terms from This Chapter |
| Questions for Discussion |
| Problems |
| Appendix 15-A. Bond Ratings |
| Key Terms from This Appendix |
Glossary
Index
Supplements
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“No other textbook does a better job of providing public administration students with the financial skills, vocabulary, and knowledge that are necessary for successful careers in government, nonprofit, and health care.”
University at Albany - SUNY
“[Financial Management is] a great text for the non-accountant looking to learn the nuts and bolts of nonprofit financial management.”
University of Wisconsin–Milwaukee
“This text provides broad coverage of governmental and nonprofit financial management in a practical, easy-to-understand, and skills-oriented approach perfect for MPA and MPP students.”
Georgia State University
Sample Materials & Chapters
Chapter 1: Introduction to Financial Management
Chapter 3: Line-Item and Responsibility Center Budgets
