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Financial Control and Budgeting

Added on - 23 Nov 2020

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Financial Control andBudgeting
INTRODUCTIONThe term financial control refers to a system of tracing or assessing the resources directed toan organization for carrying on the business operations and thus measuring, evaluating andmonitoring resources implemented to determine the progress of business organisation. Financialcontrol helps in checking report accuracy so as to eliminate fraud, error or misstatements ofinformation if any, with the purpose of protecting the physical as well as intangible resources ofthe organization. Furthermore, report has cover challenges & recent developments faced byNHS. It has also explained alternative funding options available with health and social careservice organisation. The agency theory, corporate Governance and accountability issues facedby health and social care organisation has been explained. Budgeting is a process of makingfuture plans for assessing future expected revenue and expenses form business operations of anorganization. It estimates about future events by considering internal and external factors of theorganization. Budgeting function includes planning of business activities, developing businessstrategies etc. By using various budgeting approaches, profits can be increased within givenbusiness environment.MAIN BODYTASK 1a. The recent developments with regards to the legal, financial and regulatory environment ofhealth and social careThe NHS is a national health service which is a largest health and social care in the UKproviding the care services. There are various problems faced by NHS during their 70thanniversary. These problems consist of providing better care to more people with less money.The reforms for solving these problems consist of the legal environment of health and socialcare. There have been various development in health and social care has their have beensignificant technologies which have been emerged such as artificial intelligence, genomic andpersonalised medicine(Atanelishvili and, 2017). Also, there are some apps and deviceswhich assist people to manage chronic illness themselves.Moreover, there are various laws and legislation which are being made in order to protectthe people and provide them better care services. Such as Health and Social Care act, 2012 which
provide understanding about the health inequalities and include specified duties for the healthbodies (Rogulenko and, 2016). This Act also brought changes for local authorities onpublic health functions. NHS is funded through central government. With the recentdevelopment the NHS is able to solve these problems which assist in providing better services tothe patients.The health and social care require funding for their operations which is provided throughcentral taxation to the NHS. The health and social have to follow the regulations of the qualityand safety of care offered by health care provider. So there have been development in the legalenvironment of NHS as there have been developed laws such as health and social care 2014. Theregulation followed properly are monitored by care quality commission and department of health(Burtonshaw-Gunn, 2017). Also, the financial environment of the health and social care isimproving as there are may trust and other organisation investing in the NHS for improving thequality of services provided by NHS.b. Usefulness of alternatives funding optionsThe organisation can use alternative funding options for performing its key operationsand provide better services to the patients. The following are the alternative funding options :Private finance initiative :It is the way of financing the public sector project throughthe private sector. The government authority make payment to the private company. Itreduces the burden of government to finance the public project. The government providethe private company with the amount with interest. The NHS in order to get the fundscan use the private finance initiative which assist in building long term relationship withthe private company and getting the funds for their projects.Resources :It means using the resources for getting the funds which assist in providingthe funds for the operations through use of resources of organisation. These resourceswhich act as funding option for the health and social care does not involve interest ratesand thus it is the easy source of funding.Agency partnership :It is the firm that does not hold the decision making in thecompany but holds and share or profit. NHS can use the funding from the agency partnersfor performing their duties and operation and fulfilled the requirement of capital throughthe agency partnership. It is useful source of alternative funding for the NHS becausethese agencies are under their control can the NHS have control over their operations.
Outsourcing :It is business practice in which the company hires another company forperforming tasks, operations, for providing services etc. Outsourcing assist in reducingthe cost for the firm. NHS through use of Outsourcing is able to provide better services tothe patients by hiring the individual for outsourcing which reduces the cost for the healthand social care and are able to reach to large number of people.Tendering :It means using the tenders for providing health and social care services andagreeing to the details of contract. In health and social sectors tendering assist in invitingthe health and social care providers to provide their services to the people which assist inreducing the cost for the health and social sector and assist in reaching to the largenumber of people.NHS can use the alternative financing options for funding its operations which assist inreducing their cost and are able to provide better care services to the patients and satisfy themthrough their better care services. This options are used as funding options because this optionsassist in reducing the cost of the company and are able to provide better services to the patients.c. The key stakeholders within the social sector and the way of communication with thestakeholdersStakeholders are those individuals which have their interest in the firm's operations.Followings are the various stakeholders which are involved in Health and Social sector :Commissioners :The commissioner are those which provide funds in the health andsocial sector for performing various operations.Patients :These are customers in the health and social care which are provided with thecare services.Collaborators :This are the companies and individuals in the health and social sectorwith which the organisation collaborate in order to provide care services (Di Francescoand Alford, 2016).Contributors :This are the organisation and individuals with which the health and socialcare providers work to deliver their services.Channels or media :The media play a key role in promoting the services and capturingthe news regrading the improvement in the health and social sector. It assists in reachingthe market and customers.
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