The paper 'Financial Management for Oxfordshire Country Council " is an outstanding example of a finance and accounting case study. Finance has become an important part of management. Every company needs to manage it. It eases the pressure from another department. It helps to take decision accordingly. It helps to build strategies. It also decides the marketing procedure. This is required everywhere. Every decision has money involved in it. Financial management forms an important task. It helps to manage finance. It is important that the Oxfordshire Country Council maintains it. It will help to “ check the inflow and outflow of funds which will be achieved through financial planning, control and decision making” .
(James, 2005) This will help to reduce the burden. Every process needs money. It will help to meet those. Fire and Rescue Service is largely dependent on it. This will remove the constraints. It will ease the pressure. Management will be better. It helps Fire and Rescue Services decide their budget. It helps them to operate under the operational boundary. This makes them procure equipment. It helps them use the latest techniques.
This reduces casualties. Also disclosing information helps. It builds reputation and makes people prefer the company. This dwells in a long relationship. The Fire and Rescue Services on this basis achieves better results. Operational Boundary Operational Boundary is “ calculating both the direct and indirect earnings associated with the operations owned or controlled by the company” . (Mohan, 2003) “ It is calculated after into taking into consideration the inflows and outflows” . This helps to measure the boundary correctly. The operational boundary is “ calculated during the planning process of what needs to be done in the future” .
(Mohan, 2003) It is calculated by “ considering the payments, the provisions and long term which is decided after the capital and revenue receipts” . (Williams, 2003) It is calculated through the following formula Formula Calculating the maturity loans + the loans which will be replaced by payment and newly taken + the fund for capital usage + the revenue balance which is (earned-spend) + the financing required for capital investment + the statutory and voluntary requirements This is ascertained beforehand. The operation boundary helps to calculate the authorised capital. “ It is a certain percentage over and above the operational boundary so that the unexpected expenses which might arise due to unfavourable circumstances are taken care off” .
(Williams, 2003) A rate of 5% is normally set. Consideration for FRS The Fire and Rescue Services considers various factors. This helps them to plan properly. It also helps them to decide whether they will be able to grow. The Oxfordshire County Council needs to consider various factors. They are Look that they “ comply with the rules and code practise” . (Williams, 2003) and Oxfordshire County Council has looked into it. Setting the operational boundary correctly.
This ensures that “ the spending pattern matches the income set for that which is decided in the planning phase so that contingencies don’ t arise” . (Williams, 2003) Seeing that the authorised capital is set correctly. The department sees that “ they set the limits a bit higher so that any expenses which have not been accounted for if it arises is managed in a proper way so that the department is able to meet its expenses easily” . (Williams, 2003) See that the “ changes in the fixed and variable interest rate are accounted for because a change in these interest rate can bring about a change in the estimated expenses so to reduce the chances of a credit crunch it needs to be accounted for” .
(Williams, 2003) The Oxfordshire County Council has accounted for it. It has taken into consideration this. See that the “ both the upper and lower limit is set for the borrowing which will mature as it will help to check the fluctuations and also help to manage the requirement in a better way; thereby strengthening the forecast” (Williams, 2003) Oxfordshire County Council has followed this and is looking to do that. The authority also needs to get “ proper approval from the required authority in relation to the safety of the funds which are invested for more than 364 days by getting a proper process in place” .
(Williams, 2003) Oxfordshire County Council has been considering this and has been accounted.
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