Financial Control and Budgeting

Financial Control and
Budgeting

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
TASK 2......................................................................................................................................7
TASK 3......................................................................................................................................9
CONCLUSION........................................................................................................................14
REFERENCES.........................................................................................................................15

INTRODUCTION
In the planning of financial reports, financial management and budget play a significant
role. It allows the firm to assess its performance, to see the firm's inflows and outflows.
Budgeting provides the previous years’ report which allows administrators to make decisions,
and to solve the issues they have failed to meet in their objective (Zhang, C.Y. and Sussman,
A.B., 2018). Financial monitoring allows managers to handle costs in order to optimize
income. Financial management provides direct power over the company's earnings and
expenditures. Budget reports enables managers to see the progress and take the decisions
required to keep the business growing.
The report is based on a case study of the UK National Health Service on itslegal,control,
budgetingand financial planning. This case study outlines certain issues which enable
management to recognise the challenges facing the National Health Service on their 70th
anniversary. The project report consists detailed information about regulatory framework of
health and social care as well as various kinds of funding options. The further part of report is
based on numerical portion in which BEP is calculated as per given financial information. In
the end of report, various methods of budgetary control are included.
MAIN BODY
TASK 1
a) Challenges faced by NHS and the recent developments.
NHS is aNationalhealth service in Great Britain that allowpatients to receive free and
affordable costs for medical treatment. The national health services may have a
problem of adequatelyand the improvement of the National Health Service by 2023 to
pay an additional 20 billion per annum. The real concern is that this vast sum of money
is spent adequately in the provision of health services for all citizens. Financial
management allows National Health Service administrators to find the best way to use
the assets. In the last 20 years the number of people who die from the attacks has
dropped by 8,390 each year and people dying from cancer by 634, as per the case study
10,385 fewer people died from heart attacks. The overall productivity growth reported
throughout the last 5 years was 1.4 percent annually who dies of other illnesses.

FINANCIAL ENVIRONMENT- NHS is financed almost fully by central taxes. Over
the last 30 years, the changes have centered on ownership problems and have defined
the right balance between state regulation and rewards. This is how to describe the
issue, with the broad and profoundly unpopular global recession five years ago, the
"bazooka" reforms. This will impact to recent developments because due of
availability of enough financial resources they can enhance their services in more
effective manner.
The health issues of people are generally growing elderly, disabled and able body
need for the NHS is rising rapidly. The NHS must manage its financial resources adequately
in order to fulfil demand. The financial management provides the NHS with a mechanism to
track their spending in their support and services (Munge, Kimani and Ngugi, 2016).
 REGULATORY ENVIRONMENT- The healthcare legislation in England includes
two major components: controlling the efficiency and welfare of healthcare facilities
currently being offered by the Care Quality Commission (CQC) and controlling the
health services sector, presently under Oversight control for forming trusts and the
health department.
 LEGAL ENVIRONMENT- the Health and Social Care Act 2012 (c 7) is a United
Kingdom Legislature Statute. It means the broadest reorganization of the English
National Aid Service's system to date. The Secretary for Health, who had held the
post since before the beginning of the NHS in 1948, abolished responsibility for the
welfare of the people.
b) The Usefulness of alternative funding options.
Private Financing Initiates, Money, Financial Dimensions of Agency Collaboration are
the alternate funding mechanisms for NHS. Herein, underneath description of these
alternatives is mentioned in such manner that is as follows:
Private Finance Initiatives (PFI): The Labour government first introduced PFI in
1992 and was strengthened extensively in the 1997-2010. More than 700 clinics,
colleges, jails, etc. were constructed under the PFI system at the end of 2011. This
facilitates the maintenance of public systems such as newacademy schools, hospitals,
council housing, security contracts, prisoners and road upgrades, through private
investors (Guo and Yang, 2018). The private sector supports public sector initiatives
in the private finance program by offering financial resources and enabling them