Essays on Lancashire Fire and Rescue Service Financial Management Case Study

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The paper "Lancashire Fire and Rescue Service Financial Management" is a perfect example of a finance and accounting case study.   The Lancashire fire and rescue service is part of the Lancashire County Council also known as Lancaster county council is located at the most rural of North West England where agriculture is the major economic activity. Lancashire County is a major tourist attraction centers by its rich heritage and the university. The Comprehensive Performance Assessment for Fire and Rescue Authorities was introduced in 2005. This gives the organizational ratings for the councils and fire and rescue authorities.

These ratings took into account the staff training, budget management and the service delivery to the community, for safer and fire occurrence prevention (Financial Management Notes, 2009). The Lancashire fire and rescue service was started to secure a safer community for the community around the county of Lancashire. Due to the better link with the other towns like Greater Manchester, North and West Yorkshire and Cambria, there is economic prosperity and quality environmental making it a better place for residence thus the significant population growth. The Lancashire fire and rescue service needs to improve its service delivery for the future population growth thus delivering effective and excellent service to the community. As part of the priority to provide a safer place for people to live, Lancashire fire and rescue services need to partner well with other local departments like the police, courts and local schools in providing education about the safety of either roads or fire prevention methods consequently making the county a safe place to live in.

This will go in for more exposed people and those who are at most risk of harm.

Lancashire fire and rescue service will commit itself in meeting the needs of its sundry neighbourhood and is distributed without segregation (The Operational Boundary, 2008). This paper covers comprehensively the financial report for Lancashire Fire and Rescue Authority in England in which specifically it explains how the safety margins are compared with the operational boundaries versus the authorized limits in 2006 – 2007 through to 2009 – 2010 financial years. It also includes the risks factor that affects the council in its daily operational services. Operational boundary and the authorized limit proposals The Fire and Rescue Centre has a well designed operational boundary and authorization limit proposal which has been well calculated.

This proposal is estimated to serve the requirements of the FRC across the financial years as stipulated. It has an overhead provision which is below and over the operational boundary that basically allows for unusual cash movements within the expenditure period. According to Statement of Accounts, (2009) it is therefore recommended that a 5% rate be allowed to cater to the unusual cash movements above and below the authorized limits. The operational boundaries that have been proposed are estimated in million Euros as per the figures indicated.

Any current or recurrent expenditure is herein covered. In order to ensure that the cash flows are well managed, we do follow a systematic and comprehensive financial management protocol that was constitutionally established by the board of directors in the previous 2000 annual meetings. Hence the management techniques include the use of sound financial discipline system. With this discipline, it allows the management staff to adhere to the regulated treasury management statement that has its branches in managing cash flows and money borrowings.

This system has since been followed in our budget proposal and is, therefore, being followed unless otherwise directed. According to Rachellewms, (2009) the prudential code ensures that certain aspects of treasury management policy are well determined and is a subject to this proposal. These indicators include the interest rates exposures, maturity structures of borrowing funds, the total principal sums to be invested for over a year and the treasury management code of practice.

References

Borokhovich,K. Bricker,R. Simkins, B. 2004. ‘Financial Management's Success as an Academic Journal’. Financial Management. Vol. 13, No.4, pp. 25-38

Doukas, J, 2004, ‘Financial Management’, Multinational Financial Management, Vol. 2, No. 13, pp. 34-49

Harris, P & Mongiello, M. 2005. ‘Elements Of Financial Risk Management’, Accounting And Financial Management, Vol. 23, No. 6, pp. 35-50

Financial Management Notes, 2009, ‘Fire and Rescue Service Management Foundation Stage’

Rachellewms, P, 2009, Using Financial Management Functions in Decision Making Process. Available From: <>

Simon, G, 2003, International Leasing: Its Financial and Accounting Application, Preston, University of Central Lancashire

Statement of Accounts, 2009, ‘Lancashire Combined Fire Authority Statement of Accounts 2008/09’

Thachappilly, G, 2009, Business Financial Management Fundamentals, Available from: http://business-financial-planning.suite101.com/article.cfm/business_financial_management_fundamentals

The Operational Boundary, 2008, ‘Lancashire Fire and Rescue Service’

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