1. Finance and the Administration of Public Funds PP520-01 Instructor: Trebor Negron Unit 3 Seminar 6/3/12 9:00 – 10:00 PM, EST

2. The Key Elements of Public Finance Administration  The key elements necessary to understand and practice public finance administration include a basic comprehension of public organizations and how they function, an understanding of major finance concepts, and a detailed knowledge of particular techniques.

3. Public organizations  Legal constraints  Political circumstances  Public goods  Financial concepts  Particular techniques

4. Bases of Public Finance Administration  Laws provide requirements, authorizations, and prohibitions.  Political circumstances provide general (and on occasion very specific guidance, often through the budgetary process.  Techniques, though they are very basic and available to all public officials, may or may not be used in a given situation.

5. Organizational Arrangements  Established by constitutions, laws, and other policies  Division of responsibilities among public officials generally includes  Overall financial guidance from policymakers  One or more specialized finance offices or agencies  Responsibilities allocated to operating agencies

6. Budgeting vs. Finance Administration  Public budgeting is the process of making decisions about public revenues and expenditures.  Public finance administration concerns the techniques used in dealing with public monies.

7. Public Budgeting  Defined as the planned acquisition and use of resources by public entities, similar to what individuals and households do when making and spending money.  The simply definition obscures the numerous highly complicated and interrelated phenomena that constitute public budgeting.

8. Public Budgeting Process  Preparation or formulation  Submission and approval, policy making, legal enactment, or formal approval  Implementation or execution  Audit and review, audit, audit and evaluation, or review

9. Public Budgeting Stages and Public Finance Administration Techniques StagesTechniques/Areas PreparationForecasting revenues and expenditures, Cost analysis, Capital budgeting, Debt administration, Risk management, Pension administration and other personnel issues, Assessing financial conditions, Economic development and development finance ApprovalPolicymakers look at information developed in preparation stage and revenues ImplementationAccounting, Revenue administration, Expenditure administration, Purchasing, Cash management, and Investment Audit & ReviewAuditing

10. Public Revenues  Revenue Measure  Tax  Base  Base Measurement  Exemption  Deduction  Rate  Revenue Liability  Credit

11. Questions/Concerns?