Government finance concepts and practices.(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 success. Planning, organizing, developing, and implementing technological improvements can be difficult and expensive. New technologies do not always result in the full range of expected benefits. In We're All in IT Together: Aligning Technology with Business through IT Governance, Shayne Kavanagh and Matt Suppert discuss an IT governance structure that helps to optimize a government's technology investments by aligning them with operational efficiency

Few governments exist without Web sites, and the GFOA recommends that every government publish its financial documents on the Web. In Using the Web to Increase Transparency and Accountability, Patricia A. Phillips and Bernard Abey describe the award-winning Web site of Virginia Beach, Virginia, and how it provides city financial information to its citizens in an easily accessible format.

Recent changes in the auditing world will affect all jurisdictions as they work with their auditors. How New Standards for Auditors Will Likely Affect the Governments They Audit explains what you need to be aware of as your auditors implement a set of 10 new pronouncements from the Auditing Standards Board of the American Institute of Certified Public Accountants.

Anne Spray Kinney

Editor in Chief

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