Financial Management For Public Health And Not
For Profit Organizations
7th Edition by Steven A Finkler
All Chapters 1-15 Complete
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,TABLE OF CONTENTg g
PartgI:gIntroduction:gSettinggthegStage
Chapter 1: Introduction to Financial Management
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PartgII:gPlanning
Chapter 2: Planning for Success: Budgeting
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Chapter 3: Additional Budgeting Concepts
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Chapter 4: Understanding Costs
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Chapter 5: Capital Budgeting
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Chapter 6: Long-Term Financing
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PartgIII:gImplementationgandgControllinggResults
Chapter 7: Managing Short-Term Resources and Obligations
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Chapter 8: Accountability and Control
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PartgIV:gReportinggResults
Chapter 9: Taking Stock of Where You Are: The Balance Sheet
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Chapter 10: Reporting the Results of Operations: The Activity and Cash F
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low Statements
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Chapter 11: Unique Aspects of Accounting for Not-for-Profit and Health-
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Care Organizations
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Chapter 12: Unique Aspects of Accounting for State and Local Governme
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nts—Part I: The Recording Process
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Chapter 13: Unique Aspects of Accounting for State and Local Governme
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nts—Part II: Reporting Financial Results
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PartgV:gFinancialgAnalysis
Chapter 14: Financial Statement Analysis
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Chapter 15: Financial Condition Analysis
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Instructor’sgManualg forgFinancialg Managementg forgPublic,gHealth,g andgNot-for-
Profitg Organizations1,g2E
, INTRODUCTION
Chapter 1 g
TO
FINANCIAL MA
g g
NAGEMENT
Questions for Discussion
g g
1-
1.g Financialgmanagementg isg theg subsetg ofg managementg thatg focusesg onggeneratingg financialginformatio
ng thatg cang improveg decisions.g Theg decisionsg areg orientedg towardg achievingg theg variousg goalsg ofg th
eg organizationgwhilegmaintaininggag satisfactorygfinancialgsituation.gFinancialgmanagementg encompasse
sg thegbroadgareasgofgaccountinggandgfinance.
1-2.g Ing proprietary,g org for-
profit,g organizations,g ang underlyingg goalg isg tog maximizeg theg wealthg ofg theg ownersgofgthegorganizati
on.
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3.g Ing publicg serviceg organizations,g decisionsg areg orientedg towardg achievingg theg variousg goalsg ofg th
eg organizationgwhilegmaintaininggagsatisfactorygfinancialgsituation.
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4.g Accountingg isg ag systemgforg keepingg trackg ofg theg financialgstatusg ofg ang organizationgandg theg financia
lg resultsg ofg itsg activities.g Itg hasg ofteng beeng referredg tog asg theg languageg ofg business.g Theg vocabulary
g usedgbygaccountinggisgtheglanguagegofgnonbusinessgorganizationsgasgwell.
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5.g Accountingg isg subdividedg intog twog majorg areas:g managerialg accountingg andg financialg accounting
.g Managerialg accountingg relatesg tog generatingg anyg financialg informationg thatg managersg cang useg to
g improveg theg futureg resultsg ofg theg organization.g Thisg includesg techniquesg designedg tog generateg any
g financialgdatag thatg mightg helpg managersg makeg moreg effectiveg decisions.g Majorg aspectsg ofgmanagerial
g accountingg relateg tog makinggfinancialgplansg forg thegorganization,g implementingg thoseg plans,g andg then
g workingg tog ensureg thatg theg plansg areg achieved.g Someg examplesg ofg managerialg accountingg include
g preparingg annualg operatingg budgets,g generatingg informationg forg useg ing makingg majorg investment
g decisions,g andg providingg theg datag neededg tog decideg whetherg tog buyg org leaseg ag majorg pieceg ofg
equipment.g Financialg accountingg providesg retrospectiveg information.g Asg eventsg thatg haveg financialg i
mplicationsgoccurg theygaregrecordedg bygtheg financialgaccountinggsystem.g Fromgtimegtog timeg(usuallyg m
onthly,g quarterly,g org annually),g theg recordedg datagaregsummarizedgandgreportedgtog interestedgusers.g Th
eg usersg includeg bothg internalg managersg andg peopleg outsideg theg organization.g Thoseg outsidersg incl
udeg thoseg whog haveg lentg org mightg lendg moneyg tog theg organizationg (creditors),g thoseg whog mightg sellg t
hingsg tog theg organizationg (calledg suppliersg org vendors),g andg otherg interestedg parties.g Theseg intere
stedg partiesgmaygincludegthosegwithgagparticularg interestg ingpublicgservicegorganizations,g suchgasg regula
tors,g legislators,g andg citizens.g Financialg reportsg provideg informationg ong theg financialg statusg ofg theg org
anizationgatg agspecificg pointg ingtime,g asg wellgasgreportinggthegpastg resultsgofgthegorganization‘sg operatio
nsg(i.e.,ghowgwellgitghasgdonegfromgagfinancialgviewpoint).
, Chapterg3:g Additionalg BudgetinggConcepts 3-2
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6.g Financeg focusesgong thegalternativeg sourcesgandgusesgofg theg organization‘sg financialg resources.g O
btainingg fundsg wheng neededg fromgappropriateg sourcesg andg theg deploymentg ofgresourcesg withingtheg or
ganizationg fallg underg thisg heading.g Ing addition,g financeg involvesg theg financialg marketsg (suchg asg st
ockgandgbondgmarkets)gthatgprovidegagmeansgtog generatinggfundsgforgorganizations.
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7.g Yes.g Achievingg theg goalsg ofg theg organizationg requiresg financialg planning.g Financialg manageme
ntg providesg informationg forg managersg tog useg ing makingg theirg decisions.g Itg helpsg managersg byg provid
ingg informationg ong theg likelyg financialg impactg ofg eachg proposedg alternative.g Itg alsog providesg inform
ationgaboutgfinancialgstability,gefficiency,gandgeffectiveness.
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8.g Clearly,g weg mightg expectg someg publicg serviceg organizationsg thatg areg proprietary,gsuchg asg som
eg hospitals,g tog earngprofits.g Butg whatg aboutg otherg publicg serviceg organizationsg suchgasg charities?gThe
yg shouldg makeg ag profitg asg well.g Profitsg provideg ag safetyg marging againstg unexpectedg costs,g provid
eg resourcesgtogreplacegbuildingsgandgequipment,g andgtog expandgandgimprovegservices.
1-9.gg Federalggovernmentg(seegtextgFigureg1-1)
◼ Individualgincomegtaxes
◼ Socialginsurancegtaxes
◼ Corporategincomegtax
Stategandglocalggovernmentg(seegtextg Figureg1-4)
◼ Salesgandggrossgreceiptsgtax
◼ Federalggovernment
◼ Propertygtaxes
◼ Individualgincomegtaxes
Healthgsectorg(seegtextg Figureg1-6)
◼ Privateginsurance
◼ Medicare
◼ Medicaid
◼ Otherg governmentg programs
Not-for-profitgsectorg(seegtext)
◼ Privategpaymentsgforggoodsgandgservices
◼ Governmentgpaymentsgforg goodsgandgservices
◼ Donations
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10.gFederalggovernmentg spendingg exceededg $6g trillionging2020g andgstateg andg localggovernmentg spendi
ngg wasg moreg thang $3g trilliong ing 2018.g Ing contrast,g theg GDPg wasg $21g trillionging 2020.g Forg moreg upg to
g dateg information,g examineg theg statisticalg tablesg ofg theg mostg recentg Economicg Reportg ofg theg Preside
nt,g whichgisgavailablegonline.
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11.gTheg reportedg surplusg includesg bothg ong andg offg budgetg items.g Socialg securityg taxesg representg angof