Financial Management
           Financial Management
            Financial Management
            Financial Management
                      Fiscal Policy
                      Fiscal Policy
      Sound financial decision-making 
      Sound financial decision-making 
        results from an informed fiscal 
        results from an informed fiscal 
        policy and a solid understanding of 
        policy and a solid understanding of 
        the value of money and the 
        the value of money and the 
        vehicles through which it is 
        vehicles through which it is 
        managed.
        managed.
       
       
                               
     
            Financial Management
            Financial Management
             Financial Management
             Financial Management
     Financial Decisions require consideration of:
     Financial Decisions require consideration of:
    • Projected revenues over the period of 
      Projected revenues over the period of 
      time being considered
      time being considered
    • Projected operating expenditures over 
      Projected operating expenditures over 
      the period being considered
      the period being considered
                               
     
        Financial Management         
         Financial Management         
         Financial Management         
         Financial Management         
                           (cont.)
                           (cont.)
                            (cont.)
                            (cont.)
    • The governmental body’s ability to 
      The governmental body’s ability to 
      acquire financing, now and in the future
      acquire financing, now and in the future
    • Present and future value of money 
      Present and future value of money 
      when applied to the project being 
      when applied to the project being 
      considered.
      considered.
                               
     
           Financial Decision-
           Financial Decision-
                       Making
                       Making
    When making financial decisions for a 
    When making financial decisions for a 
      governmental body, the same rational 
      governmental body, the same rational 
      doesn’t necessarily apply as is used in 
      doesn’t necessarily apply as is used in 
      managing one’s own personal 
      managing one’s own personal 
      finances.
      finances.
    What looks like a “common sense” good 
    What looks like a “common sense” good 
      idea at first may turn out to be a bad 
      idea at first may turn out to be a bad 
      financial decision when worked 
      financial decision when worked 
      through the formulas
      through the formulas
                               
     
           Financial Decision-
           Financial Decision-
                       Making
                       Making
     Performing a Cost/Benefit 
      Performing a Cost/Benefit 
      Analysis is essential to sound 
      Analysis is essential to sound 
      financial decision-making
      financial decision-making
     A critical part of a Cost Benefit 
      A critical part of a Cost Benefit 
      Analysis is determining the value 
      Analysis is determining the value 
      of money over time
      of money over time