Financial Management Essay Example | Topics and Well Written Essays - 2500 words

Financial Management - Essay Example Rents, Charges, Interests and others make up three percent of its funding (Smith, 2008). Of the total fund generated from various sources: seventy percent is spent on Salaries and Wages; twelve percent is provisioned for the employer contribution to the pension fund; another twelve percent is spent on operating expenses and six percent is for Capital Financing Charges (Smith, 2008). Fiscal governance coverage is in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (SORP Committee, 2010). CIPFA Code of Practice dictates that in cases of conflict the legislative requirements shall apply in financial governance (Chartered Institute of Public Finance & Accountancy, 2010). National non-domestic rates account for approximately eighteen percent of the total local authority income (Information Centre Scotish Parliament, 1999). Therefore, only about 9 percent of the National non-domestic rate income of the local authority finances the Fire and Rescue eff orts of local governments. While every district including the two cities of Manchester and Salford only contributes a total of 3.3 percent each to the operational expense of the Fire and Rescue Authority (Smith, 2008). Risk mitigation includes the following: disaster recovery, contingency plan, emergency response, business continuity. Fire and Rescue only covers emergency response. From a financial point of view to invest more than eleven percent for emergency response alone may not maximize the value of money considering the other area of risk mitigation that would include disaster recovery, contingency planning and business continuity. However, risk and security challenges have become increasingly complex because as we plan for protection and face a multitude of threats in a rapidly changing environment, we must expect the unexpected, while staying within our budgets (Purpura, 2008). There is an underlying importance in emergency response that is to prevent the emergency escalatin g into a disaster, then to a catastrophe, then to a tragedy (Alexander, 2002). The key has always been prevention and in this case the prevention of an emergency to escalate into another level. One of the key performance indicators of the Greater Manchester Fire and Rescue A