Public Financial and Physical Resource Management (PFPRM) is becoming a core competency critical to a government organization's competitive advantage. Recent studies have shown that organizations with established PFPRM are able to generate millions of dollars in additional savings and have a distinct competitive advantage. Our literature review showed that there is also a lack of a guideline for process capability determination and improvement of PFPRM. On the other hand, after observing benefits in software organizations, The ISO/IEC 15504 is used as a baseline to generate capability/maturity models for different specific domains/sectors. Accordingly, the same approach is utilized in the government domain, and process definition of PFPRM based on the requirements of ISO/IEC 15504 is developed. Therefore, PFPRM can be assessed based on ISO/IEC 15504 to be consistently applied, managed, and controlled across governmental agencies. A case study, including the assessment of an organization's PFPRM capability level is performed. The assessment results are used to develop a road-map for implementing process improvement in the study. The initial findings show the applicability and adequacy of the proposed approach.