Strategic Finance for Criminal Justice Organizations: 1st Edition (Paperback) book cover

Strategic Finance for Criminal Justice Organizations

1st Edition

By Daniel Adrian Doss, William H. Sumrall III, Don W. Jones

CRC Press

270 pages | 32 B/W Illus.

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Traditionally, the study of financial decision making in law enforcement and criminal justice entities has been approached from the perspective of tax revenues and budgeting that focus only on the past and present. Capital investments of cash flow provide future benefits to all organizations, and among courses in business administration, these notions of long-term financial management are critical to a sound understanding of organizational finance. Strategic Finance for Criminal Justice Organizations examines capital budgeting techniques from a quantitative perspective that targets the strategic future of revenues within the criminal justice and law enforcement sectors.

Explaining capital budgeting concepts through the use of practical examples, this volume discusses:

  • Economics and the use of money as a tool to facilitate the exchange of goods and services
  • Human decision making, impediments to rendering objective decisions, and methods for improving decision objectivity
  • The consequences of making capital budgeting decisions, the concept of risk, and the time value of money
  • The rendering of decisions using the payback time method and the mathematical formula necessary to use it
  • The concept of discounting and decision rules for net present value
  • How to make an internal rate of return financial decision
  • The mathematical formula for the profitability ratio/index method and using it to make financial decisions

In all organizations, it is essential that financial decisions are made through informed insight considering all relevant factors. This volume contributes to improvements of the skills that are required to robustly render beneficial, long-term strategic decisions within the law enforcement and criminal justice environment.


"The book satisfies the academic need to introduce theory while providing relevant real-world application. It provides a logical progression through the world of organizational financial decision-making, and is geared to the non-finance major. It also provides insight into strategic best practices and is adaptable to audiences at the local, regional, and international levels."

—Ernest C. Fields, Ph.D., in Journal of International Students

Table of Contents

Introductory Concepts

The Concept of Money

Formative US Transactions

Nineteenth-Century US Transactions

Contemporary US Transactions

Considerations of the Money Concept

Categorization of Decisions

Chronological and Risk Aspects of Decisions

An Integrative Perspective

Models and Simulations

Black Market Decisions

Legal Market Decisions

Integrative Observations

Capital Budgeting Concepts

Concepts of Decisions

Objective Decisions

Impeding Factors

Group Decisions: Cardinality and Groupthink

Bounded Rationality and Satisficing


Decision Style and Capacity


Countering Impediments

Group Dynamics


Nominal Group Technique

Delphi Technique


Systems Approach

Neural Networks

Scenario and Sensitivity Analysis

Integrative Perspective

Financial Management Decisions

The Attributes of Financial Relationships

Methods of Financing Organizations

Bond Debt

Stock Equity

Loans and Credit


Grant Funding

Goodwill and Charitable Funds

Insurance Policies

Confiscation, Seizure, and Forfeiture of Assets

Value-Added Concepts

Contexts of Prisoner Labor

Contexts of Work-Release Programs

Contexts of Recidivism

Integrative Financial Management

Tools of the Trade: Making a Decision

The Time Value of Money

Concepts of Future Value and Present Value

Future Value

Present Value

Considerations of Rate

Determining the Rate Variable

Determining the Time Variable

Comments Regarding the Time Value of Money

Foundational Understanding

Capital Budgeting Methods

It Is Time for Payback: The Payback Time Method

Payback Time Method

Application of the Payback Time Method

Single Investment Initiative

Mutually Exclusive Investment Initiatives

Multiple Capital Investment Initiatives

Discounted Payback Method

A Present for the Present: The Net Present Value Method

Net Present Value (NPV) Method

Application of the NPV Method

Multiple Capital Investment Initiatives

Accepting Multiple Initiatives

Advanced NPV Considerations

How Do We Rate? With the Internal Rate of Return

Internal Rate of Return (IRR) Method

Application of the IRR Method

Accepting Multiple Initiatives

Advanced IRR Considerations

Chapter Comments and Summary

Red or Black? The Profitability Index Method

Profitability Index (PI) Method

Application of the PI Method

Accepting Multiple Initiatives

Advanced PI Considerations

Putting It All Together! Let’s Make a Decision

Accepting Multiple Initiatives

Advanced Capital Budgeting Considerations

Chapter Comments and Summary

Day and Night Shifts: Integrating the Concepts

Benefit–Cost Ratio Concepts

Leasing versus Purchasing Concepts

Scenario Analysis Concepts

Sensitivity Analysis Concepts

Break-Even Analysis Concepts

Complements, Not Competitors

The Slammer: Concluding Remarks




About the Originator


Daniel Adrian Doss

Livingston, AL, United States of America

Learn more about Daniel Adrian Doss >>

Subject Categories

BISAC Subject Codes/Headings:
LAW / Criminal Law / General
LAW / Forensic Science
POLITICAL SCIENCE / Public Policy / General
SOCIAL SCIENCE / Criminology