Financial Management assignment
I am going to review the financial statements for your fire authority, the Greater Manchester Fire authority and prepare a report for you, my senior manager. I have done this by critically assessing the operational boundary and the authorised limit proposals for the Fire and Rescue Services, calculating the safety margin of the Operational Boundary to the Authorised Limit and identifying six categories of risk facing the FRS. For each category I have commented on whether the risk has a financial impact on the FRS and if so, whether it has been recognised in the financial statements. At the conclusion I give my opinion as to whether it has been recognised, explaining why I believe that is the correct view.
A sound financial management system is important for an organization to maintain its survival in the market. The success and stability of Greater Manchester Fire Rescue Authority will be determined the ability of the management to manage all the financial resources of the company. To maximise the long term profitability of the company it is important that the management team should minimise the costs incurred in operational and capital investment activities. As such, the company will be able to invest in establishing new fire stations, adopting modern technologies and purchasing better equipment (Smith, 2008).
Characteristics of the Great Manchester Fire Rescue Services
The Greater Manchester Fire Rescue Services is a company that provides fire rescue services to different communities, both urban and rural. According to the website of the according, the company provides fire rescue services to different individuals. “From modern inner city developments to traditional mill towns, Greater Manchester is made up of ten very different districts – Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan” (Manchesterfire, 2011, p. 1). The company has employed a large number of people and there is need to improve its performance so that more citizens can receive the services of the company
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