The paper "Lincolnshire Fire & Rescue Service Performance " is a perfect example of a finance and accounting case study. I have received and assessed the Lincolnshire fire & Rescue Service (LFRS) performance for three years from 2008, 2009 and 2010 budget. All the three years LFRS county council has been performing within the budget limit with no deficit. I have also gone through the audited financial statements, the balance sheets, the income and expenditure statement and cash flow. All of them reflect a fair view of the performance of the council although the cash flow reflected a deficit which needs some improvements. This has reflected sound financial management have been undertaken to ensure the proper flow of an internal process in providing services to the public as is required of them. TABLE OF CONTENTS Introduction 1.0 Setting the operational boundary The main consideration of L FRS 2.0 Calculation of the operational boundary 3.0 Characteristics of LFRS vs.
GMFF 3.1 Major risk areas 3.1.1 Product life cycle 3.1.2 Economic risk 3.1.3 Political risk 3.1.4 Business risk 3.1.5 Financial risk 3.1.6 Physical risk 3.2 High-risk areas with FRS 3.2.1 Credit risk 3.2.2 Liquidity risk 3.2.3 Market risk 188.8.131.52Interest rate risk 184.108.40.206 Price risk 220.127.116.11 Foreign Exchange risk Conclusion References Introduction The report addresses financial management control practices of Lincolnshire Fire and Rescue Authority by analyzing their financial statement as well as discussing major financial risks areas with their impact on the organization operation.
The report shall conclude on the findings as to whether Lincolnshire fire and rescue Authority finance operation shows a fair view and whether the code of practice on the Local Authority Accounting in the United Kingdom as been followed and financial reporting standards to the local authority account has been applied. Financial management policies and procedures of Lincolnshire must ensure that funds are well managed to meet the required needs at minimum costs and risks are reduced ensuring proper investment decisions are made.
The finance manager is supposed to release the report for the public domain. 1.0 Setting the operational boundary For any activity which requires cash expenditure, a budget needs to be drawn for effective management. A budget is normally prepared in advance from the total money expected as income and out of it the total expenses are analyzed and allocated against that income.
The budget has to be authorized by the management for it to be used in the organization. This means that income has to be known in advance and expenditure including capital for investment decisions. An effective budget should have a control system on spending. A budget includes investment decisions which have to be factored in as either capital expenditure or short term investments. One of the control system applied by the Lincolnshire Fire and Rescue Service (LFRS) in their financing operation is the application of a strict budget. By setting an upper limit of the budget LFRS is able to be in control over their spending during the year and remain within the sustainable level of operation.
They are able to make sound investment decisions as well as distributing their resources equitably well. (Terry Lacey2003,p. 152) 1.1 Main consideration of Lincolnshire Fire and Rescue Authority The main consideration or sources of income of the council comes from the following; General grants which accounted for 19%. The effect of this increases the council’ s income. Council taxes which account for 21%, specific grants which account for 49%, charges and other income which account for 11% so income generated is 100%.
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