This book is unique in its exclusive and comprehensive focus on the management of public funds. The book emphasizes defining terms, framing concepts, and examines common controversies in the field. The authors begin with a broad introduction to public finance administration. They then cover topics such as: revenue and expenditure; managing cash flow; capital budgets; and the financial components of human resource management. With its unique focus on the management of public funds, the book fills a need for courses in public finance administration by providing a public administration-based approach.
Capital budgeting refers to the efforts by public agencies to develop a financial plan of action directed at the funding of land, improvements, facilities, and equipment for use in the immediate, intermediate, and long-term future. According to Forrester, it is closely tied with many objectives of budgeting and financial management, including debt administration, assessing financial condition, and supporting economic development.1 Budgeting for capital items is most often associated with longevity, high cost, and major impact. Items that have a useful life extending beyond a single year are considered to have longevity and are candidates for capital budgeting. Such items become fixed assets. Also, high-cost physical items that make a substantial impact on an annual budget if funded in any one year are ...