Report on Managing Finance in Public Sector
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Added on 2019-12-03
Report on Managing Finance in Public Sector
Added on 2019-12-03
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MANAGING FINANCE INPUBLIC SECTOR
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Analysis of different organizations in the public sector...................................................11.2 Accountability of public sector managers in relation to finance......................................21.3 Analysis of financial information reported for different public sector organizations......4TASK 2............................................................................................................................................52.1 Analysis of available financial information and evaluation of the same for decisionmaking....................................................................................................................................52.2 Areas to be monitored and way to do this........................................................................72.3 Financial decisions and techniques to support them........................................................8TASK 3..........................................................................................................................................113.1 Process by which project are put out to tender...............................................................113.2 Ways in which tenders are evaluated and suitable suppliers are selected......................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONNHS is a government organization which is providing medical services to the sickpeople. This organization is playing a vital role in the elimination of diseases in UK. This reportis prepared on managing finance in public sector. In this report, government organizations areanalyzed and structure of NHS is discussed in detail. Further, in this report, accountability ofmanagers in public sector firms is discussed in detail. With respect to finance, budgets andproject evaluation techniques are discussed in detail in this report. Further, ways are proposedthat can be used for identifying appropriate discount rate for computing present value of theproject. At the end of the report, ways that are used for applying for tender are discussed indetail. Furthermore, some of the factors are discussed that must be followed in order to selectright supplier for passing the tender.TASK 11.1 Analysis of different organizations in the public sectorPublic sectors refer to an organization that is owned by the government and entireinvestment is made by the regulatory bodies itself. Usually, these firms are governmentdepartments and they have their own system of accounting. Government also runs some of thecompanies specifically in those areas in which entry of private firms are prohibited. These areasmay be atomic energy etc. Organizations operating in such industry are fully owned by theregulatory bodies. There is a great difference between public and private sector organizations.The main difference comes in case of ownership. Public companies are owned by governmentwhereas private firms are owned by an individual or group of people. The second differencecomes on profit. In case of public organizations, main aim is to do welfare of general public. Butin case of private companies, major objective is to earn profit (Flynn, 2007). Private firms arefocusing on growing their business at a rapid rate and their efficiency is also very high. On theother hand, public organization’s efficiency level is very low and they follow a detailedprocedure to perform any activity. NHS is one of the UK’s largest and most popular serviceproviders in health care sector. In order to understand the working of NHS, it is necessary tounderstand its structure (Bovaird and Löffler, 2009). Main components of its organizationalstructure are primary care, specialized services, offender health care, armed forces health careand immunization screening of young children. Through these components, it is providing varied1
services to its customers. Through immunization services, it identifies that whether youngchildren are capable to fight with their diseases or not. On the other hand, it also looks after thehealth of army personnel and ensures that they remain healthy forever. Under specializedservices, it is providing unique services to the patients that are suffering from specific disease.Primary care is another segment in which NHS is operating and under this segment, firm isproviding primary care services to the patients. Hence, NHS as a government organization isplaying a prominent role in keeping people of UK healthy. 1.3 Analysis of financial information reported for different public sector organizationsIn many nations, corruption has a strong grip on the public sector organizations. In thesenations, every year, many cases regarding corruption in government departments are identified.Thus, government in these nations is using each and every measure that helps them in theidentification of manipulation in money if it has happened in any public sector firm. In financialinformation, plenty of data about public sector organization is made available and along withthis, its revenue receipt is also shown in the financial statements. In these financial reports,financial and non financial information is also disclosed (Farneti and Guthrie, 2009). Afterpreparation of report, it is communicated to the top authorities which may be single or multiplein their nature. These financial information snapshots are also printed in reports from the houseof parliament and audit commission. Hence, in this way, fully fledged control is maintained onthe government organization by parliament and regulatory authorities. Further, informationprovided in financial reporting is also audited by some specific authority in order to ensure thatmoney is not manipulated by the employees that are working in the specific department. Hence,these measures certainly help in ensuring that in an organization, operations are performed fairlywithout any manipulation (Finkler, 2005). With the passage of time, government requires tointroduce some new things in order to ensure that if any corruption will be done in thegovernment department, it will be identified and strong actions will be taken against culprit assoon as possible.NHSTable1: Financial performance indicator that are reported to top authorities20142015Percentage change in 2015Administration operating revenue1372691413782.99%2
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