Government finance concepts and practices.

• Author: Kinney, Anne Spray
• Position: From the editor

Concepts provide a solid foundation upon which to base practices that can be applied to achieving an organization's mission. However, concepts and practices are not static. As the government environment changes and as governments learn more about how they can affect results, new concepts and practices emerge. One of the key purposes of the GFOA is to keep its members informed of these developments. In this issue of Government Finance Review, we provide some new perspectives on existing practices as well as a look at a number of advances.

Interpreting Local Government Financial Statements provides a guide for using governmental financial reports to evaluate a government's financial condition. Author Stephen J. Gauthier provides an approach for assessing a local government's financial health from three perspectives--near-term financing, financial position, and economic condition--by analyzing various elements of the government's financial statements.

The National Advisory Council on State and Local Budgeting offers guidance to governments for managing their capital assets. Authors Michael A. Pagano and David R. Shock provide an overview of the capital budgeting process in their article, Capital Budgets: The Building Blocks for Government Infrastructure. Aligning capital budget decisions with a capital improvement plan as well as with the operating budget helps ensure the efficient and effective use of government resources.

Today, complex organizations, including governments, depend on technology for their survival and...