Managing Financial Resources and Decisions Assignment

Running Head: MANAGING FINANCIAL RESOURCE DECISION
Managing Financial Resource Decision

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Table of Contents
Introduction................................................................................................................................3
Task 1: Systems are used to manage financial resources in health and social care...................3
1.1 Principles of costing and business control systems..........................................................3
1.2 Information needed to manage financial resources..........................................................4
1.3 Regulatory requirements for managing financial resources.............................................4
1.4 Systems for managing financial resources in a health or care organization.....................5
Task 2: Role of planning in the management of health and social care budgets.......................5
2.1 Diverse sources of income in health and social care........................................................5
2.2 Factors that may influence the availability of financial resources in health and social
care organizations...................................................................................................................6
2.3 Types of budget expenditure in health and social care organizations..............................6
2.4 Decisions about expenditure are made within a health or social care organization.........7
Task 3: Importance of monitoring budget expenditure in health and social care organisations7
3.1 Financial shortfalls can be managed.................................................................................7
3.2 Actions to be taken in the event of suspected fraud.........................................................8
3.3 Budget monitoring arrangements in a health or social care organization........................8
Task 4: Systems and processes for managing financial resources influence health and social
care services...............................................................................................................................9
4.1 Information required to make financial decisions relating to a health and social care
service.....................................................................................................................................9
4.2 Relationship between a health and social care service delivered, costs and expenditure 9
4.3 Financial considerations impact upon an individual using the health and social care
service...................................................................................................................................10

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4.4 Ways to improve the health and social care service through changes to financial
systems and processes..........................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
In the current scenario, it is essential for a manager to improve their understanding regarding
the financial resources. As a result, it would be beneficial to improve the productivity of
organization. In addition, the depth understanding about finance can support the manager to
make an effective decision and increase the growth of health and social sector organization.
This report presents the structure that can be used by health and social sector managers in the
organization. This paper also discusses the role of planning in the social and healthcare
organization. It also explains the importance of monitoring budget expenditure in the health
and social sector organization. This report also represents the structure and procedure for
managing the financial resources in the context of the health and social sector (Smith, 2014).
Task 1: Systems are used to manage financial resources in health and social care
1.1 Principles of costing and business control systems
It is essential for a manager to deeply understand the principle of costing and business control
system to successfully deliver the services. The primary costing principle of Bupa care home
is relied on the Polluter Pays wherein it pays to utilize the collected waste material. The
major principle of the costing is to minimize, recycle and separate the waste. There are
different kinds of cost that are considered in the internal cost such as segregation, packaging,
cost of the supplier, and labor. Besides this, the external cost of Bupa care home is associated
with disposal of wastage by which contractor provides appropriate services to the HCS
(health care services) (Certo, 2015). Bupa care home can consider some significant principles
of a business control system such as security, Prevention control, managing resources, and
defective control. In addition, it can be said that a manager can provide safety and protect the
staff through security control. The preventive control structure includes the separation of
function. The defective control includes the procedure of identifying and controlling the
inaccuracy which will influence the reliability of financial data. Along with this, the business

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control system of Bupa care home is also needed to keep and observe the obedience problem
like rules and regulation that will relate to the healthcare and laws adherence (Kabir, et al.,
2014).
1.2 Information needed to manage financial resources
Bupa care home focuses on past data that can be related to the previous performance,
availability of capital, and lack of resources due to operating the business systematically. At
the same time, BCH can consider the data that is associated with the cash flow management
such as working capital and budgeting to effectively manage the complexity of finance in the
healthcare services (Veselovsky, et al., 2014). There are some factors that can be considered
by BCH to manage the financial resources like full cost recoveries, bad debts, cash flow
models, and working capital management. In addition to this, is also addressed that BCH
ensures the amount that is received by the consumers, government, and non-government
organization to manage the shortage of funds systematically (Brigham, 2014).
1.3 Regulatory requirements for managing financial resources
Social and healthcare area is observed many financial requirements to operate the business
activities in HCA. It also offers some instruction related to the management of financial
resources such as development of the effective system and credit license (Soltani, et al.,
2015). An organization can make the effective system to manage the risk related to the
finance. It can be supportive to successfully manage the shortage of finance in business. The
organization must include the credit license and use of terms and condition which is made by
the UK financial advisory group. Hence, it can be said that such regulatory requirement can
aid the BCH for managing the financial resources (Purce, 2014).
1.4 Systems for managing financial resources in a health or care organization
Bupa care home can use the financial management system to control its financial resources
appropriately. The financial management structure is a combination of tools and techniques

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that can be supportive to manage the allocation process and use of the financial resources in
the business. The FMS enables the facilitators of the healthcare to track the expenditure of
organization. The tracking considers some elements like utilities of resources, materials, and
salaries. These items of budget lines are timely recorded due to effectively managing the
financial resources (Stark, 2015). Bupa care home utilized the financial management system
to generate quarterly financial records which will help to evaluate the cost and manages the
financial resources. The financial management structure can support to produce the revenue
and information related to cash flow evaluation and income. In the current scenario, the major
advantage of FMS practice in Bupa care home is to generate the financial records and
compare the information with the cost analysis and predetermined budget to manage the
financial resources (Finkelman, 2015).
Task 2: Role of planning in the management of health and social care budgets
2.1 Diverse sources of income in health and social care
In the social and health care sector, income can be important sources than the other sources
for delivering goods and services to the potential consumers systematically. It can also be
vital for expanding the business in an appropriate manner. The Bupa care home collects
sources by using many sources such as customers, non-government organization, and
corporate entities (Snell, et al., 2015). The taxations, loans, social insurance, and grants are
also the governmental and non-governmental fund sources. These sources are also used by
BCH for collecting the financial sources. In addition, the funds are also collected from
charitable institutions. It is also found that there are three major sources that can generate the
risk at the time of collecting the funds such as private insurance, taxation for patient health
payments.

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2.2 Factors that may influence the availability of financial resources in health and social
care organizations
There are different reasons that may influence the availability of the resources of Bupa care
home services such as financial risk, business corporate payment, and services provides. The
revenue of organization can be gathered by using many sources like community insurance
resources and government agency from individual entities, premiums, and tax (Atkin, et al.,
2014). In the developing countries, most of the healthcare organization faced challenges to
raise their fund due to low level of income, lack of institution, and management capacity. In
addition, it is also analysed that geographical situation of the company can affect the
availability of financial resources through services users sort, availability of funds in that
particular place. Along with this, it is also addressed that Bupa care home can develop the
financial management structure to manage the issues of finance resources (Johnson, 2014).
2.3 Types of budget expenditure in health and social caare organizations
There are many types of budget expenditure which can be considered in the health and social
care organization such as operating, personal, and sales budget. The operating budget is made
by the organization to analyse the goods and services. It can be introduced in the provision
structure at the time of budget period (Ebert, et al., 2014). Besides this, the personal budget
demonstrates the expenditures that are incurred by the organization during the accounting
period. The personal budget may include the labour cost. In the current period, technology is
rapidly changing that can fluctuate the personal budget of the organization. In addition, sales
budget presents the actual sales evaluation of services in an accounting year. The primary
focus of sales budget is associated with the sales expenditure expansion, the price of goods
and services, and revenue of products, which can be incurred at the time of selling the goods
and services (Petty, et al., 2015).

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2.4 Decisions about expenditure are made within a health or social care organization
The procedure of decision making about BCH expenditure relies on the detailed evaluation
and awareness of business community needs. In the healthcare organization, the management
of financial resources can be a major aspect to make an effective decision towards the
expenditure. BHP performs many activities such as estimate financial risk, capabilities of the
project management, make a hypothesis, and evaluation of cost benefits. These activities are
performing for making the appropriate decision in the context of expenditure (Anderson, et
al., 2015).
Task 3: Importance of monitoring budget expenditure in health and social care
organisations
3.1 Financial shortfalls can be managed
The financial shortfall can be the liability of organization that can account for suppressing the
available financial sources in the business. The shortfalls management is relied on the
adequate calculation and determination of the needs that may arise in the upcoming period
(Hunink, et al., 2014). It is also found that Bupa care home manages the shortfalls to
effectively operate the business. Beside this, reduction of expenditure in the operating process
helps the Bupa care home to improve its performance and cover the shortage. BCH make a
strategic plan for evaluating the financial requirements in the upcoming period. The financial
shortfalls are arising in case, the business financial acts of corporate fail to attain least
predetermine target within the timeframes (Somsuk, et al., 2014). The nature of shortfalls can
be temporary or persistent. There are different types of techniques that can be used by the
healthcare services to manage the financial shortfalls such as prioritize, cash flow
management, financial resource management, credit facility management, and Virement. In
addition, Bupa care home can use prioritize method to deal with the financial shortfalls. In
addition, it can also be said that Bupa care home should concentrate on addressing wastage

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rather than the implementation of cost-cutting in the operational process (Laudon, et al.,
2016).
3.2 Actions to be taken in the event of suspected fraud
For handing circumstances related to the scam, BCH should develop the separate research
department that can identify the factors that can create the scam in the working place. The
management department is failing to control the misconducts in the organization as it can
create fraud. Bupa care home can develop a team to detect and evaluate the immoral practices
in the services system. The FRT (fraud report team) of BCH works with the system during
the determination of fraud elements (Wehrmeyer, 2017). The following steps are considered
by FRT of BCH:
 Enquiry of Incident
 Build an effective structure to manage the fraud within the workplace
 Recognition of offenders behind the origination of fraud
 Evaluate of the procedure of incident development in depth and informing the same to
administration team.
 Origination of structure to stop the fraudulent events from the organization
3.3 Budget monitoring arrangements in a health or social care organization
The process of budget monitoring evaluation is the ability of a company that is responsible
for achieving the financial objectives on behalf of the predetermined budget. The budget
monitoring procedure supports BCH to evaluate the significance of their financial activities.
The budget controlling procedure relies on many guidelines that are approved by a financial
advisory group of UK (Petkova, et al., 2014). At the same time, it is also addressed that FAG
support to review and monitor the structure of the organization to improve their performance.
It helps to offer new instruction due to enhancing the efficiency of the business. The
organization should concentrate on the adding value to improve the productivity of the

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business. There are different factors that are considered by company such as comment
specifications, provision of simple, graphs, transparent language, colour, and upcoming
issues (Greene, et al., 2015). All these factors are used to monitor budget procedure of Bupa
care home. The budget monitoring team evaluates the future need regarding financial
resources as it will help to monitor the budget structure. At the same time, the adjustment of
capital is relied on the structure of budget control.
Task 4: Systems and processes for managing financial resources influence health and
social care services
4.1 Information required to make financial decisions relating to a health and social care
service
The decision making process is relied on the management of financial activity and evaluation
of the future financial resource requirement of a corporate. The financial data can be a
significant tool for pooling the adequate information and interpretation (Bryce, 2017). It will
be also effective to make a financial decision in social and healthcare sector. There are many
financial data that are prepared by Bupa care home such as annual report, cash flow
statements, cost sheet, income statements, break-even analysis of the service, and profit and
loss.(Heizer, 2016).
4.2 Relationship between a health and social care service delivered, costs and
expenditure
Bupa care home concentrates on developing the service structure that is related to the
provision. It provides optimum satisfaction level with the greatest quality of services to the
consumers (Epstein, et al., 2014). A huge amount of expenses in the social and healthcare
sector spends on the patients that are suffering from the complicated situation and terminal
illness since long term. It is also addressed that the social and health care organization can
save approximately $2.4 billion by offering the quality services to consumers. In case, social

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and health care organization prevents the unnecessary admission then the expense of firm can
be reduced. The major barrier to the cost reduction of health and social care is connected to
the technical resources. The organizations ideally have to maintain the fluctuation of cost and
expenditure due to attracting a large number of consumers. The capital can be an effective
element to upgrade the product and service quality. At the same time, it can also be said that
technology is a factor that can positively as well as negatively affect the cost and expenditure
of the social and healthcare organization (Finkler, et al., 2016).
4.3 Financial considerations impact upon an individual using the health and social care
service
UK healthcare system is addressed that over the last five years, the problem of cost
management has increased in the health and social care sector. Since, the quality of service
being changed and enhanced hence the social and health care sector organizations faced
issues related to the expenditure and cost.
The enhancement in the cost and expenditure can influence the purchase cost of the final
customers (Sitek, et al., 2015). It is also stated that the cost and structure are usually under
the control. In the health and social sector, the techniques are rapidly changed that can create
complexity to manage the financial services of the firm. The major modification in the
consumer behaviour can influence the social healthcare organizations. A large number of
private sector organizations are focusing on the improvement of service by including massive
cost. It can also increase the services of social and health care. The enhancement in the
expenditure of health care services can increase the expectation of consumers about product
and service quality (McKinney, 2015).

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4.4 Ways to improve the health and social care service through changes to financial
systems and processes
The Bupa care home can create understanding about their financial structure that will support
to make changes in the system. It will also help to enhance the effectiveness and quality of
the services. The financial structure depicted the interrelationship between the processes and
system of financial institutions. There are some factors that are considered by financial
institutions such as creditors, banks, Shareholders, company house, accounting bodies,
budgets, finance management, and financial statements (Massingham, 2014). The following
methods are supportive to improve the quality of health and social care:
PBR (Payment by outcomes):
The PBR (payment by result) method can be effective to transfer the accountability and risk
from the government to the health and social service workers. It also motivates the healthcare
workers for enhancing their services and meeting effective value for capital. The rules and
regulations of the government can be supportive in generating the revenue by enhancing the
finance projects and increasing the social and health care (Marshall, 2016).
Equity and Excellence: Liberating the NHS
The equity and excellence is the modern method that can be used by BCH to improve the
health and social service by changing the financial system and structure.
It supports to make new ideas, improvement in the innovation, and pay to the service
provider on behalf of the performance and result (Sharma, et al., 2014). It also encourages to
the pharmaceutical organization by paying a huge amount of money for producing new
medicine and creates secure payment structure for its services users. In addition, it can also
be said that BCH will offer the outstanding services by offering value for money, fair
environment, promote staff right to choice, and dignity. At the same time, it is also addressed

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that these services are effective to overcome issues of financial structure appropriately (Hill,
et al., 2014).
Conclusion
From the above discussion, it can be concluded that finance can be an important element for
operating the business appropriately. A manager of a company can need to improve their
understanding of the utilization of financial resources to take competitive benefit in long-
term. It can also be concluded that effective finance structure can be supportive to gain the
productivity of the organization. Finally, it can also be summarized that budget monitoring
and planning can be imperative to overcome the issues related to finance shortage in the
health and social care.

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