1. 7 Management of Physical and Fiscal Resources Unit 7

2. 7 Learning Objectives List and describe a fire department’s physical resources. Explain the relationship between the type of community served and the fire apparatus needed. Discuss what guidelines should be used for effective management of financial resources. Explain why budgets are necessary in fire department operations. Explain the budgetary process and the use of budgets in justifying funding requests.

3. 7 Introduction Physical resources Uses NFPA standards ISO ratings Managing financial resources – Public money – Other sources of income

4. 7 Physical Resources of the Fire Department Buildings Location and response time Station design Funding Apparatus Rebuilt and specialized apparatus Selection of apparatus based on fire district influences Hazards in the district Equipment and supplies

5. 7 Managing the Physical Resources Ensuring adequacy – Top management – Issues Maintenance – Officers at the company level – Issues Procurement of physical resources Use of physical resources Challenges in the management of physical resources

6. 7 Evaluating the Adequacy and Quality of Physical Resources Determined by fire risk and community fire defense analyses – Evaluations performed by department personnel, private consultants, and insurance grading agencies ISO

7. 7 Summary Physical resources are facilities, apparatus, equipment, and supplies needed for operations. Fire officers make decisions pertaining to all types of new and used equipment. Management of physical resources focuses on ensuring adequacy and maintenance. Guidelines can help ensure high-level performance. Consider guidelines in every decision.

8. 7 Guidelines for Managing Financial Resources Ensure that the department will have the necessary funds and will administer them effectively Funds needed – Fair and equitable compensation to department staff members Funds needed continued – Facility and apparatus maintenance – Needed equipment and supplies – Additional facilities when needed – Additional apparatus – Refurbishing of existing apparatus Issues – Operating budget – Needed facilities, apparatus, and equipment – Purchases at best prices – Correction of wasteful practices

9. 7 Fire Department Budgets Purposes – Guides or forecasts that make planning easier – Communications link, joining the department with the public and officials – Records showing how and how fast available funds are being spent Budgets are management tools. – Personnel costs – Operating expenses – Budgets The expense budget – Also called the operating budget – Spells out expenditures – Asks what department will accomplish – Recurring costs – Estimated receipts

10. 7 Fire Department Budgets Line item system – One expense per line – Disadvantages – Advantages Program budget system – Expenditures for specific activities – Estimate of total expense – Record of money spent – Requires more recordkeeping than a line-item budget Budget worksheets – Guidance for staying within the budget – Show amount budgeted and expenditures – Organized according to the department’s needs

11. 7 Fire Department Budgets The capital budget – Planned expenditures for items used longer than one year – Intention to allocate the specified amount to the listed item – Communities often specify a dollar amount for an item – Funding is spread over a number of years – Do not work like expense budgets – Do not require regular entries into the department’s budget registers – Do not affect evaluation of the department – Priorities change

12. 7 Fire Department Budgets Budgetary justifications – Showing the need for the item – Showing why the requested funds are the best way to satisfy the need – Spending public finds

13. 7 The Budgetary Process Four-part process – Formulation – Transmittal – Approval – Management

14. 7 Summary Most resources purchased with public money. Guideline question Budgets serve many useful purposes. – Guides or forecasts – Communications link – Records of how and how fast funds are spent Budgeting is a four-part process – Formulation, Transmittal, Approval, Management Fire officer’s responsibilities – Input to planning of budget – Understand budgets and process – Answer questions Company and battalion officers have operational responsibilities.