Essays on Financial Management for Merseyside Fire and Rescue Authority Case Study

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The paper "Financial Management for Merseyside Fire and Rescue Authority " is a perfect example of a finance and accounting case study.   Financial management seeks to provide an entity’ s executive authority with raw data on the entity’ s financial position as well as its cash flows and financial risks. Towards effecting sufficient financial management techniques, it is important to identify the basic operations of an entity and the distinctive risks that the entity faces. With this information, financial and risk management measures are undertaken carefully eventually bearing positive results for the entity. With the use of financial statements, the financial manager is able to compare the entity’ s financial performance over the years and develop adequate financial policies aimed at controlling the entity’ s cash flows and monitoring its performance. Executive Summary Merseyside Fire and Rescue Authority has overcome quite a number of financial pressures over the financial year 2008/09 by developing an innovative internal process to improve on its resource efficiency.

Financial pressures have presented the FRS with numerous financial risks that have been managed through its Integrated Risk Management Plan. Through this plan, the authority has decided to reduce its workforce, embrace efficient technologies and avoid compulsory redundancies.

As a result of these developments, the authority recorded key successes in its fire and rescue services management as well as in its overall institutional management. Similar to the private sector, financial management in the public sector ought to be complemented by effective management policies within the entire entity. In the absence of this harmony, counter-productivity is achieved whereby the gains achieved through effective financial management are reduced by poor management policies. Having realised this, the authority’ s management has strived towards ensuring a cohesive operating environment to ensure the growth and development of the FRS. TABLE OF CONTENTS Introduction 1.0 Calculation of the Operational Boundary and Authorised Limits. 2.0 Setting the Operational Boundary 2.1 Main Considerations of Merseyside Fire and Rescue Authority 3.0 Merseyside Fire and Rescue Authority 3.1 Characteristics of the FRS 3.2 High-Risk Areas 3.3 Accommodation of the High Risks in the Accounts Conclusion References Introduction This report seeks to discuss various financial management issues within the Merseyside Fire and Rescue Authority and their impact on the FRS’ s operations.

Towards achieving this objective, the author will utilise both the financial statements provided as well as other scholarly material sourced from the libraries and the internet.

Majority of the data will be gathered from the relevant financial statements that will be compared over a definite period of time. The author will eventually give his conclusion on the state of the FRS’ s financial management measures and advice the senior financial manager accordingly. 1.0 Calculation of the Operational Boundary and Authorised Limits. Through the calculation of the operational boundary, the authority seeks to identify the available funds that can ensure the sustainability of their operations within the financial year.

On the other hand, the authorised limit adjusts the available funds identified as the operational boundary to cater for the upward and downward cash movements incurred during the normal operating activities of the FRS (Operational Boundary, p2).

References

Bergmann, A 2009, Public Sector Fin. Mgmt, New York: FT Prentice Hall.

Christoffersen, PF 2003, Elmnts of Fin. Risk Mgmt, Chicago: Academic Prss.

Deegan, CM 2009, Financial Accounting Theory 3RD Ed, New York: McGraw-Hill.

Elliott, B & Elliott, J 2007, Financial Accounting & Reporting, New York: FT Prentice Hall.

GMFRS 2007, Stmt of Accounts 2007/08

Khan, A & Hildreth, WB 2004, Fin. Mgmt Theory in the Public Sector, Michigan: Greenwood Pub. Grp.

Merseyside Fire & Rescue Auth. 2009, Stmt of Accounts 2008/09.

Operational Boundary

Oneplace 2009, GMFRS Organizational Assessment 2009, Accessed on Jan 4, 2010 from < http://oneplace.direct.gov.uk/infobyarea/region/area/localorganisations/organisation/ pages/default.aspx?region=53&area=423&orgId=1025 >

The Beacon Scheme 2010, Merseyside Fire & Rescue Auth, Accessed on Jan 17, 2010 from < http://www.beacons.idea.gov.uk/idk/core/page.do?pageId=5098717 >

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