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Financial Management for Public, Health, and Not-for-Profit Organizations
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Financial Management for Public, Health, and Not-for-Profit Organizations

Eighth Edition
February 2025 | 752 pages | CQ Press
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Reflecting recent changes in accounting standards, this Eighth 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. 
 
Preface
 
Case Examples
 
About the Authors
 
Part I Introduction: Setting the Stage
 
1 | Introduction to Financial Management
What Is Financial Management?

 
Public Sector Resource Flows

 
Why Discuss Public, Healthcare, 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

 
 
Part II Planning
 
2 | Planning for Success: Budgeting
Mission

 
Strategic Plan

 
Long-Range Plan

 
Budgets

 
Behavioral Aspects of the Budget Process

 
Summary

 
Key Terms from this Chapter

 
Questions For Discussion

 
Problems

 
 
3 | Additional Budgeting Concepts
Line-Item and Responsibility Center Budgets

 
Centralization Versus Decentralization

 
Program and Functional Budgets

 
Budgeting Techniques

 
Zero-Based Budgeting

 
Forecasting

 
Additional Governmental Budgeting Issues

 
Summary

 
Key Terms from this Chapter

 
Questions For Discussion

 
Problems

 
Appendix 3-A. A Performance Budget Example

 
Appendix 3-B. Forecasting Using Historical Data

 
 
4 | Understanding Costs
Basic Concepts and Definitions

 
Cost Behavior

 
Break-Even Analysis

 
Cost Measurement

 
Summary

 
Key Terms from this Chapter

 
Questions For Discussion

 
Multiple Choice and Fill in the Blank Questions

 
Problems

 
Appendix 4-A. Additional Break-Even Analysis Issues

 
Appendix 4-B. Using Excel to Solve Break-Even Problems

 
 
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 Computer Spreadsheets for Time Value of Money Calculations: Examples

 
Appendix 5-B Using a Financial Calculator for Time Value of Money Calculations

 
 
6 | Long-Term Financing
Equity Financing

 
Long-Term Debt

 
Social Impact Bonds

 
Summary

 
Key Terms from This Chapter

 
Questions for Discussion

 
Exercises (Tvm)

 
Problems

 
 
Part III Implementation and Controlling Results
 
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

 
Appendix 7-A Economic Order Quantity

 
Appendix 7-B Credit Terms

 
 
8 | Accountability and Control
Defining Management Control Systems

 
Measures of Performance

 
Controlling Quality

 
Variance Analysis

 
The Role of Ethics in Financial Management

 
The Form 990

 
Consequences of Ethical Violations

 
Summary

 
Key Terms from This Chapter

 
Questions For Discussion

 
Problems

 
 
Part IV Reporting Results
 
9 | Taking Stock of Where You Are: The Balance Sheet
The Framework for Financial Accounting

 
Generally Accepted Accounting Principles

 
Balance Sheet Elements

 
Assets: A Closer Look

 
Liabilities: A Closer Look

 
Net Assets or Fund Balance: A Closer Look

 
Recording Financial Information

 
Fiscal Years

 
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

 
 
10 | Reporting the Results of Operations: The Activity and Cash Flow Statements
The Purpose of the Activity Statement

 
Rules for Recording Financial Events

 
The Dangers of Estimates

 
The Statement of Cash Flows

 
Interrelationships among Financial Statements

 
Notes to Financial Statements

 
Recording and Reporting Financial Information

 
Summary

 
Key Terms From This Chapter

 
Questions for Discussion

 
Problems

 
Appendix 10-A Sources of Revenue For Governments

 
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

 
 
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

 
Different Organizational Structures

 
Summary

 
Key Terms from This Chapter

 
Questions for Discussion

 
Problems

 
Appendix 11-A Taxation Of Not-For-Profit Entities

 
 
12 | Unique Aspects of Accounting for State and Local Governments—Part I: The Recording Process
Bases of Accounting

 
The Modified Accrual Basis of Accounting in Governments

 
Accrual Basis 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

 
 
13 | Unique Aspects of Accounting for State and Local Governments—Part II: Reporting Financial Results
The Objectives of Financial Reporting for Governments

 
The Governmental Reporting Components

 
Summary

 
Key Terms from this Chapter

 
Questions for Discussion

 
Problem

 
Appendix 13-A Interrelationships Among Government Financial Statements

 
 
Part V Financial Analysis
 
14 | Financial Statement Analysis
Elements and Purpose of the Financial Statement Review

 
Financial Statement Review

 
The Notes That Accompany Financial Statements

 
Ratio Analysis

 
Assessment

 
Summary

 
Key Terms from this Chapter

 
Questions For Discussion

 
Problems

 
 
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

 
 
Glossary
 
Index

Supplements

Instructor Resources
Key features

NEW TO THIS EDITION

  • Recent changes implemented by the Governmental Accounting Standards Board (GASB) reflected in every chapter.
  • Updated case studies and homework problems in both managerial and financial accounting.
  • Expanded coverage of ethical issues, including ethics and governance in public organizations.
  • Streamlined throughout to improve clarity and align topics around clear learning objectives.

KEY FEATURES

  • Written for students with little or no financial management background, the book provides a uniquely comprehensive introduction to the “hard skills” for a non-expert audience.
  • Exercises, problems, case studies, and questions for discussion provide frequent opportunities to apply the skills and principles of financial management.
  • Comprehensive coverage includes cost analysis, budget preparation, budget and variance analysis, management control, and recording and reporting financial information with an emphasis on preparing and analyzing financial statements. 
  • Coverage of the foundational principles of each of the methods introduced in the book includes step-by-step equations, figures, and exhibits that illustrate how to execute financial management in practice.

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