| Term |
Description |
| Accounting Policies |
Accounting policies define the process whereby transactions and other events are reflected in financial statements. For example, an accounting policy for a particular type of expenditure may specify whether an asset or a loss is to be recognised; the basis on which it is to be measured; and where in the revenue account or balance sheet it is to be presented. Accounting policies do not include estimation techniques. |
| Asset |
An asset is anything that is owned by the Authority that has a value (such as land, property, operational and non-operational equipment, money, furniture and items held in store). |
| Bad Debt |
Money owed to NFRS that is unlikely to be paid. |
| Best Value |
Statutory obligation to make proper arrangements to secure continuous improvement, having regard to a combination of efficiency, effectiveness and economy. |
| Budget |
Sum of money allocated for a particular purpose. |
| Budgetary Control |
The process of ensuring actual expenditure and income does not exceed the budget available and taking corrective action where variances are identified. |
| Budget Monitoring |
The process of reviewing actual expenditure or income against the sum allocated for the year enabling action to be taken to reallocate budgets to or from other budget lines in a timely manner where variances are found. |
| Capital Expenditure |
Money spent to either acquire or improve an asset owned by the Authority which has a life of greater than 1 year or money awarded to a third party towards an asset owned by them (i.e. Revenue Expenditure Funded by Capital Under Statute). |
| Capital Programme |
NFRS’s capital expenditure plans for the next few years. The Capital Programme will show the anticipated cost, usually on a scheme-by-scheme basis, and how it intends to finance this. |
| CIPFA |
The Chartered Institute of Public Finance and Accountancy. This body is responsible for interpreting accounting standards and recommending working practices to be followed by all local authorities. |
| Commitments |
A commitment arises when an order is raised to purchase goods or services but the goods or services have not yet been received. |
| Contract |
A contract for the execution of works or the supply of goods, materials or services (except services of a professional or technical nature). |
| Earmarked Reserve |
Money allocated for a specific purpose which will be spent in a future year. |
| Financial Regulations, Procedures and Standing Orders |
A written code of procedures approved by the Authority, intended to provide a framework for proper financial management. Financial Regulations, Procedures and Standing Orders set out rules on accounting, audit, administrative procedures and budgeting systems. |
| Financial Year |
Is the accounting year that runs from 1 April to 31 March. |
| Fixed Asset |
An asset intended to be held for a period of more than one year (e.g. building, vehicle and equipment). |
| Forecast |
A prediction of spend for future months / years. |
| General Ledger |
The general ledger is the main accounting record of the Authority. It is a library of financial transactions. |
| Grants |
Income received by NFRS to support the undertaking of services or to support the Capital Programme. Grants may have terms and conditions to adhere to reduce any risk of clawback. |
| Internal Control |
The system of control devised by management to help ensure NFRS’s objectives are achieved in a manner which promotes economical, efficient and effective use of resources and that the assets and interests are safeguarded. |
| Lease |
An asset not owned by the Authority but which the Authority has an agreement to use in providing its day-to-day services in return for a regular cash payment. |
| Medium Term Financial Plan |
A financial plan outlining the NFRS’s spending plans and forecast resources over the next 3 years. |
| Money Laundering |
The term used where an individual uses legal payment routes to pass off income earned from illegal activities or to avoid the payment of Government taxes. |
| NFRS |
Nottingham Fire & Rescue Services |
| Overspend |
This is where the actual expenditure exceeds the budget for the same period. |
| Provisions |
An amount set aside by NFRS to meet a known item of expenditure but for which the actual timing and amount of the payment is not known. |
| Revenue Expenditure |
Expenditure incurred by NFRS on a day-to-day basis in the provision of services to the public (i.e. not Capital Expenditure). |
| Statement of Accounts |
Public Bodies are required to produce an annual Statement of Accounts which show how the Authority has spent its money and what resources and reserves it has available. The Statement of Accounts includes NFRS’s statutory income and expenditure account, its balance sheet and a cash flow statement. |
| Treasury Management |
The term used to describe the Authority’s management of its cash, investments and borrowing requirements. |
| Underspend |
This is where the budget exceeds the actual expenditure for the same period. |
| Unearmarked Reserve |
Money set aside for future policy initiatives. |
| Value Added Tax (VAT) |
Tax levied on goods and services. |
| Variation |
A variation is an increase or decrease in a budget after the budget has been approved at the start of the year. |
| Virement |
A switch of resources (i.e. budget) between Cost Centres or budget lines within a Cost Centre. |