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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

Sixth Edition


January 2019 | 640 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!
 
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 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  
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: 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  
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-A 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 Terms from This Appendix  
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 Report 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  
Interrelationship 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 Healthcare Organizations
Accounting for Not-for-Profit Organizations  
Fund Accounting  
Depreciation  
Donated Goods and Services  
Investments  
Taxes  
Accounting for Healthcare 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  
Problems  
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

Instructors Resource Site

Calling all instructors!

It’s easy to log on to SAGE’s password-protected Instructor Resources Site for complete and protected access to all text-specific Instructor Resources. Simply provide your institutional information for verification, and within 72 hours you’ll be able to use your log-in information for any SAGE title!

Password-protected Instructor Resources include the following:

  • Solutions to end-of-chapter questions include detailed solutions in both Word and Excel format.
  • Editable, chapter-specific Microsoft® PowerPoint® slides offer you complete flexibility in easily creating a multimedia presentation for your course. Highlight essential content, features, and artwork from the book.
  • Cases Studies challenge students to identify and apply the concepts that are illustrated in each case. The cases are designed for instructors to extend questions to students, initiate class discussion, assign as homework, or conduct an in-class exercise.
  • Excel templates for selected chapter problems may be provided to students as an aid to solving problems. Most templates simply provide a format for solving the problem, while some retain the relevant Excel formulas. Files may be edited as desired by the instructor.  
  • Tables and figures from the book are provided for your courses.

“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

“[Financial Management is] a great text for the non-accountant looking to learn the nuts and bolts of nonprofit financial management.” 

Daniel Gordon Neely
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.” 

Ross Rubenstein
Georgia State University
Key features

NEW TO THIS EDITION: 

  • Recent changes implemented by both the Financial Accounting Standards Board and the Governmental Accounting Standards Board reflected in every chapter.
  • Updated online case studies in both managerial and financial accounting 
  • Expanded and updated homework problems at the end of each chapter 
  • The full suite of online Instructor’s Resources that have been expanded, updated, and revised.

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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Hardcover
ISBN: 9781506396811
$130.00