1. Session 11: Finance Function
Introduction to AIIMS
Session 11: Finance Function
This session provides and an overview of the Investigation function, the role of the Investigation Officer, and the structure and role of the Investigation Function.
Reference:
AIIMS Manual 2017

2. This session will cover the following topics
Scope of the Finance Function. Role of the Finance Officer. Structure of the Finance Function. Units within the Finance Function. Key information flows for the Finance Function.
Topics covered in this session:
Scope of the Finance Function in Victoria
Role of the Finance Officer
Structure of the Finance Function
Units within the Finance Function

3. AIIMS allows for either a Finance Unit or a Finance Function
Finance tasks can:
be undertaken by a Finance Unit within the Logistics Function; or
if necessary, a Finance Function can be established in its own right.
Finance tasks will generally be undertaken by an Finance Unit within the Logistics Function, however, the Incident Controller may determine that the complexity, scale or nature of the incident requires that Finance should be established as a Function in its own right. If this occurs the responsibilities of the Finance Unit move to the Finance Function in the incident management structure and there will be no longer be a Finance Unit in the Logistics Function.
Bearing in mind that AIMS is a flexible system, the complexity, size or duration of an incident may mean that Finance tasks are unable to be performed by an Finance Unit within the Logistics Function. The Incident Controller may determine that Finance tasks should be carried out by establishing an Finance Function in the Incident Management Structure.
Reference:
AIIMS Manual 2017

4. The Finance Function has a defined scope
The function provides support to the incident through the management of:
contracts and procurement;
account payments and accounting records;
compensation and insurance payments; and
time records for employees and contractors deployed at the incident.
The Finance Function provides support for control of the incident through the management of:
Contracts and procurement
Account payments and accounting records
Compensation and insurance payments
Time records for employees and contractors deployed at the incident
Reference:
AIIMS Manual 2017

5. The key responsibilities of a Finance Function include the following
Maintain records of personnel shift times. Procure and manage contracts and equipment records. Manage compensation and insurance claims. Collect, collate and analyse costs of the incident. Establish and manage a Finance Function in line with the size and complexity of the incident.
FINANCE
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
Key responsibilities of the Finance Function include:
Maintain records of personnel shift times
Procure and manage contracts and equipment records
Manage compensation and insurance claims
Collect, collate and analyse costs of the incident
Establish and manage a Finance Function in line with the size and complexity of the incident
Reference:
AIIMS Manual 2017

6. The responsibilities of the Finance Officer are clearly defined
9/22/2019
The responsibilities of the Finance Officer are clearly defined
Providing a safe working environment for Finance Function personnel. Obtain a briefing from the Incident Controller. Overseeing all financial management and record keeping. Overseeing the management of insurance and compensation claims for the incident.
The Finance Officer will:
Provide a safe working environment for Finance personnel
Obtain a briefing from the Incident Controller
Oversee all financial management and record keeping
Oversee the management of insurance and compensation claims for the incident
Reference:
AIIMS Manual 2017 5

7. A Finance Function can be structured to include four units
Each of which has defined responsibilities.
FINANCE
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
The Finance Officer establishes and manages the Finance Function.
Tasks may be delegated to units within the Finance Function such as:
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
Reference:
AIIMS Manual 2017

8. An Accounts Unit will have specific tasks
Responsible for:
accounts for purchases of supplies and hire of equipment; and
management of contracts.
FINANCE
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
The Accounts Unit is responsible for:
Accounts for purchases of supplies and hire of equipment
Management of contracts
The unit will work closely with Supply and Facilities in the Logistics Function.
Processing of accounts will follow the conventions and operating procedures of the relevant organisation.
Reference:
AIIMS Manual 2017

9. A Compensation and Insurance Unit may be established
Responsible for:
all personnel compensation claims;
insurance claims for personal effects, equipment and vehicles; and
reporting to agencies on these issues.
FINANCE
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
The Compensation and Insurance Unit is responsible for:
Maintaining oversight and management of all personnel compensation claims
Management of all insurance claims for personal effects, equipment and vehicles
Reporting to agencies on these issues
Personnel may suffer injury, their personal property may be lost or damaged and vehicles or equipment may be damaged or destroyed. Most organisations have their own procedures in place for such events and legislation and policy determine the actions to be taken.
Note: Current arrangements in Victoria have Compensation and Insurance handled by a separate department within the agencies. The Finance Unit does not manage it.
Reference:
AIIMS Manual 2017

10. A Financial Monitoring Unit may be needed
Responsible for:
collection of cost data;
performing cost effective analysis; and
providing cost estimates for the incident.
FINANCE
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
The Financial Monitoring Unit is responsible for:
Collection of cost data
Performing cost effective analysis
Providing cost estimates for the incident
Expert financial personnel may be required to perform this task.
Due to budgetary constraints and economic pressures, it is very likely that cost-conscious agencies will be required to maintain detailed financial records of incident operating costs.
Reference:
AIIMS Manual 2017

11. The Time-keeping Unit can be established to record incident deployments
Responsible for:
accurately recording times and duration of personnel deployments; and
keeping track of contractor hours.
FINANCE
Accounts
Compensation & Insurance
Financial Monitoring
Time Keeping
The Time-keeping Unit is responsible for:
Accurately recording times and duration of personnel deployments
Keeping track of contractor hours
In protracted incidents the number of employees and contract staff can be quite significant.
Time keepers are required to accurately record times and duration of deployments in line with agency policy and workplace agreements.
This is also important in the management of fatigue in collaboration with the Safety Advisor
Reference:
AIIMS Manual 2017

12. Key information flows are essential for the Finance Function
The Finance Function has essential links between the Incident Management Team and day-to-day agency tasks as well as monitoring the financial management aspects of incident response.
Finance establishes critical relationships with suppliers of services and materials within the communities affected by emergency incidents, and must be sensitive to the capabilities and needs of those communities in sourcing supplies for the incident.
Reference:
AIIMS Manual 2017

13. In summary, we looked at these details of the AIIMS Finance Function
Scope of the Finance Function. Role of the Finance Officer. Structure of the Finance Function. Units within the Finance Function. Key information flows for the Finance Function.
Review the content of this session:
Scope of the Finance Function
Role of the Finance Officer
Structure of the Finance Function
Units within the Finance Function
Key information flows for the Finance Function
Suggested questions:
What is the role of the Finance Function in AIIMS?
Who is responsible for managing the Finance Function and how is this position established?
What determines the structure of the Finance Function?
What are the key information flows for the Finance Function?