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

Dr. Steven A. Finkler is Professor Emeritus of Public and Health Administration, Accounting, and Financial Management at New York University’s Robert F. Wagner Graduate School of Public Service (NYU Wagner). At NYU Wagner he headed the specialization in health services financial management for more than 20 years. Dr. Finkler is an award-winning teacher, author, and researcher. Among his publications are 31 books, including Financial Management for Nurse Managers and Executives, 5th ed. (with Cheryl Jones and Christine T. Kovner, 2018); Accounting Fundamentals for Health Care Management, 3rd ed. (with Thad Calabrese and David Ward, 2019); and Finance and Accounting for Nonfinancial Managers, 5th ed. (2017). He has also published more than 200 articles in many journals, including Health Services Research, Journal of Public Policy and Management, and Healthcare Financial Management. He received a bachelor of science degree in economics (dual major in accounting and finance), and a master of science degree in accounting from the Wharton School at the University of Pennsylvania, and a master of science degree in economics and doctorate in business administration at Stanford University. Dr. Finkler, who is also a certified public accountant, worked for several years as an auditor with EY (formerly known as Ernst and Young) and was on the faculty of the Wharton School before joining NYU. He is a past member of the executive board of the International Society for Research in Healthcare Financial Management and the editorial board of Health Care Management Review, and he served as treasurer and a member of the board of governors of the Daughters of Israel Geriatric Center. He was the editor of Hospital Cost Management & Accounting for 12 years and is a past member of the National Advisory Council for Nursing Research at the National Institutes of Health. He consults extensively, both around the country and abroad. Daniel L. Smith, PhD, is Associate Dean for the Social Sciences in the College of Arts & Sciences and Associate Professor in the Biden School at the University of Delaware. His research focuses on state government budgeting and financial management and appears in Journal of Policy Analysis and Management, Journal of Public Administration Research and Theory (JPART), Public Administration Review (PAR), Public Budgeting & Finance, and Public Choice, among others. In addition, he has been coeditor of JPART and has served on PAR’s editorial board. Dr. Smith is a past chair of the Association for Budgeting and Financial Management and a former member of the Governmental Accounting Standards Advisory Council. He is a current member of the Commission on Peer Review and Accreditation (COPRA). He earned his doctorate in public administration in the School of Public and International Affairs at the University of Georgia. Thad D. Calabrese, PhD, is associate professor of public and nonprofit financial management at NYU Wagner, and is director of the school’s finance specialization. His research focuses on not-for-profit and government accounting and finance and is published in the Journal of Public Administration Research and Theory, Public Administration Review, Public Budgeting & Finance, Journal of Accounting and Public Policy, Nonprofit and Voluntary Sector Quarterly, National Tax Journal, Public Finance Review, and Nonprofit Management & Leadership (NML), among others. In addition, he has served in several member-elected positions, including Chair of the Association for Budgeting and Financial Management and Treasurer for the Association for Research on Nonprofit Organizations and Voluntary Action. He currently serves on the Governmental Accounting Standards Advisory Council. Prior to entering academia, he worked as a financial manager in the not-for-profit sector and in local government. Robert M. Purtell, PhD, recently retired as a clinical assistant professor of finance and director of the MPA program at the Nelson A. Rockefeller College of Public Affairs and Policy at the University at Albany, State University of New York. Dr. Purtell came to the academy after a long career as a financial manager and executive in the financial services industry. His research interests and publications focus on the valuation of public assets, the measurement and management of risk in public service organizations, and the use of evidence-based management. Dr. Purtell received his Bachelor of Science degree in mathematics from Manhattan College. He also received a Master of Business Administration degree from the Stern School of Business and Master of Philosophy and Doctor of Philosophy degrees from the Robert F. Wagner Graduate School of Public Service, both of which are at New York University.

Part I Introduction: Setting the Stage
Chapter 1: Introduction to Financial Management
Introduction
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
Part II: Planning
Chapter 2: Planning for Success: Budgeting
Introduction
Mission
Strategic Plan
Long-Range Plan
Budgets
Behavioral Aspects of the Budget Process
Summary
Chapter 3: Additional Budgeting Concepts
Introduction
Line-item and Responsibility Center Budgets
Centralization versus Decentralization
Program and Functional Budgets
Budgeting Techniques
Additional Governmental Budgeting Issues
Summary
Chapter 4: Understanding Costs
Introduction
Basic Concepts and Definitions
Cost Behavior
Break-Even Analysis
Cost Measurement
Summary
Chapter 5: Capital Budgeting
Introduction
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
Chapter 6: Long-Term Financing
Introduction
Equity Financing
Long-Term Debt
Summary
Part III: Implementation and Controlling results
Chapter 7: Managing Short-Term Resources and Obligations
Introduction
Working Capital Management
Short-Term Resources
Short-Term Obligations
Summary
Chapter 8: Accountability and Control
Introduction
Management Control Systems
Measures of Performance
Controlling Quality
Variance Analysis
Ethics
Safeguarding Resources
The Form 990
Consequences of Ethical Violations
Summary
Part IV: Reporting Results
Chapter 9: Taking Stock of Where You Are: The Balance Sheet
Introduction
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
Chapter 10: Reporting the Results of Operations: The Activity and Cash Flow Statements
Introduction
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
Chapter 11: Unique Aspects of Accounting for Not-for-Profit and Health Care Organizations
Introduction
Accounting for Not-for-Profit Organizations
Fund Accounting
Depreciation
Donated Goods and Services
Investments
Taxes
Accounting for Healthcare Organizations
Summary
Chapter 12: Unique Aspects of Accounting for State and Local Governments––Part I: The Recording Process
Introduction
Bases of Accounting
Government Fund Accounting
Recording Financial Information
Summary
Chapter 13: Unique Aspects of Accounting for State and Local Governments––Part II: Reporting Financial Results
Introduction
Reporting Financial Information
Summary
Part V: Financial Analysis
Chapter 14: Financial Statement Analysis
Introduction
Financial Statement Review
The Notes that Accompany Financial Statements
Ratio Analysis
Summary
Chapter 15: Financial Condition Analysis
Introduction
Financial Condition Analysis
Financial Statement Analysis versus Financial Condition Analysis
Ratio Analysis
Summary