Financial Management and Accounting in the Public Sector is a very successful text for non-financial majors. In the book Gary Bandy manages to explain the essentials of the financial world in a profound and clear way. It is the standard work for our finance classes. Dr. Tom Overmans, Utrecht University School of Governance The latest edition of this excellent text by Gary Bandy has been updated post-pandemic, with the crisis illustrating just how important it is to have national and local government agencies that have appropriate public financial management systems for financial stewardship, value for money and equity. The book is particularly useful for students of public management/public administration, but is also written with non- financial public managers in mind, to help them understand the financial aspects of their jobs. Laurence Ferry, Head of Department and Professor in Accounting at Durham University (UK) and Senior Distinguished Visiting Fellow at Rutgers University (USA) This is a must read for any public management student. Gary Bandy brings the subject to life through an engaging combination of academic theory and practical application. Dr Ian C Elliott, Associate Professor of Public Leadership and Management, Northumbria Your book is the best resource on this topic and my version of the second edition has been a great reference for many years now. Andrew Kendall, Chief Commercial Officer, Alternative Futures Group Financial Management and Accounting in the Public Sector The importance of public financial management for the health and wellbeing of citizens became dramatically apparent as governments sought to respond to the coronavirus pandemic in 2020. Now, governments and other public sector organizations face the challenge of recovering from the pandemic whilst also seeking to achieve Sustainable Development Goals, with squeezed budgets and ever-increasing demands for public services. Public sector managers are confronted daily with targets and demands that are often set in confusing accounting and financial language. In Financial Management and Accounting in the Public Sector, Gary Bandy employs a clear and concise narrative to introduce the core concepts of public financial management to help those managers to deliver programmes, projects and services that are value for money. As the author puts it, managing public money is an art, not a science. This third edition has been revised and updated throughout, offering: • a structure that is more clearly linked to the stages of the public financial management cycle; • greater coverage of transparency and accountability issues; • a broader view of public procurement to include goods, works and services and effective contract management; and • an increased focus on public spending in the context of a post- COVID environment. With a glossary of terms to help managers understand and be understood by accountants, as well as learning objectives, discussion questions and exercises, this practical textbook will help students of public management and administration to understand the financial and accounting aspects of managing public services. Gary Bandy has been an independent public financial management consultant since 2005. He has advised organizations in the charity sector, education, policing, local government and the private sector. Gary has an MPA from Warwick Business School and has taught public financial management at several universities in the United Kingdom as well as sharing his expertise with civil servants in many places, including Rwanda, South Sudan, Sri Lanka and Kazakhstan. MASTERS IN PUBLIC MANAGEMENT Series Editor: Stephen P. Osborne Providing students and practitioners a series of concise and coordinated learning resources, this series offers an integrated and up-to-date collection of applied textbooks across public management and administration. Books in the series go beyond the “toolkit” or “recipe” format, instead encouraging readers to develop the core managerial skills and critical thinking required to excel in the field. Contracting for Public Services Strategic Management in the Public Carsten Greve Sector Paul Joyce Managing Change and Innovation in Public Service Organizations Performance Management in the Public Stephen P. Osborne and Kerry Brown Sector Wouter van Dooren, Geert Bouckaert and John Halligan Ethics and Management in the Public Sector Strategic Leadership in the Public Alan Lawton, Karin Lasthuizen and Sector Julie Rayner Paul Joyce Managing Local Governments Marketing Management and Designing Management Control Systems Communications in the Public Sector that Deliver Value Martial Pasquier and Jean-Patrick Emanuele Padovani and David W. Young Digital Government Making and Managing Public Policy Managing Public Sector Reform in the Karen Johnston Miller and Digital Era Duncan McTavish Miriam Lips Financial Management and Accounting Research Methods in Public in the Public Sector Administration and Public Management Gary Bandy An Introduction Sandra van Thiel Risk and Crisis Management in the Public Sector Lynn T. Drennan, Allan McConnell and Alistair Stark For more information about this series, please visit: www .routledge .com / Routledge -Masters -in -Public -Management /book -series /PUBMAN Financial Management and Accounting in the Public Sector Third Edition Gary Bandy Designed cover image: © Vadim Sazhniev / Getty Images Third edition published 2023 by Routledge 4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge 605 Third Avenue, New York, NY 10158 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2023 Gary Bandy The right of Gary Bandy to be identified as author of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. First edition published by Routledge 2011 Second edition published by Routledge 2014 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-032-16891-3 (hbk) ISBN: 978-1-032-15730-6 (pbk) ISBN: 978-1-003-25083-8 (ebk) DOI: 10.4324/9781003250838 Typeset in Perpetua and Bell Gothic by Deanta Global Publishing Services, Chennai, India To Charlie, the latest generation. Contents List of Illustrations xi Foreword xiii Preface to the third edition xv About the author xviii Acknowledgements xix Abbreviations xx 1 The context of public financial management 1 2 Public sector budgeting 38 3 Taxation and other sources of income 86 4 Budget execution 134 5 Using financial information to make decisions 176 6 Public procurement 203 7 Measuring performance and value for money 240 8 Accountability and financial reporting 279 9 Audit 332 ix