Awarding Excellence in Public Finance.

• Author: Esser, Jeffrey L.

The term "best practice" is a contemporary buzzword in public finance, as well as within the entire realm of businesses and organizations. Governments and businesses everywhere want to learn about best practices, use them, and in some cases, institutionalize and automate them. But precisely what does the term best practice infer and what are its implications for government?

The GFOA has a long history of being an information clearinghouse for public financial management. In fact, this is one of our stated roles--to "enhance and promote the professional management of government financial resources by identifying, developing and advancing fiscal strategies, policies and practices for the public benefit." The development of recommended practices is one of the best ways that GFOA has for raising the standards of the public finance profession and improving the financial management of state and local government. GFOA's standing committees in specific topical areas are charged with the task of developing these recommended practices within their areas of expertise.

Recommended practices are ideas that have been tested and are appropriate for many different entities. They are based on actual applications from the real world of public finance, meaning that the collective knowledge of those with extensive and diverse experience has resulted in their formulation. Each recommended practice is designed to identify enhanced techniques and furnish information about effective strategies for state and local government practitioners.

By contrast, this issue of Government Finance Review focuses on best practices. Unlike recommended practices, best practices have not yet been proven on a large-scale. They generally are considered more experimental and recognize the latest innovations in the field.

GFOA's Awards for Excellence in Government Finance Program recognizes these best practices in the field of government finance. The awards are chosen by independent chief financial officers and technology experts and recognize contributions to the practice of government finance that exemplify outstanding financial management. The award criteria stresses practical, documented work that offers leadership to the profession and promotes improved public finance. The main factors that judges are asked to consider when selecting award winners are innovation and replicability.

All of the winning jurisdictions demonstrated an ability to think outside the box, take risks, and go...