Between (6) and Other Innovative Measures to Improve Health and Social Care

The assignment discusses the importance of managing financial resources efficiently for Silloth to grow in the market. It emphasizes the need for proper budget planning, investing in different areas, and providing greater assistance for the management of operations.

MANAGING FINANCIAL
RESOURCES AND
DECISIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
ESSAY........................................................................................................................................1
TASK 2............................................................................................................................................6
3.1 Explaining how the financial shortfalls can be managed......................................................6
3.2 Actions to be taken for suspected fraud................................................................................7
3.3 Determining the budget monitoring arrangement.................................................................7
4.1 Information required for financial decisions.........................................................................7
4.2 Relationship between service delivery, cost & expenditures ...............................................8
4.3 Financial considerations which impacts the individuals used health and social care
services........................................................................................................................................9
4.4 Ways to improving the care services in health and social care.............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In an organization, it is very important for it to manage with there financial resources in
an efficient manner. This will ensure the budgeting and funding of the operations properly. It is
been seen that all the functions performed in the company are directly dependent upon the funds
so as to reach the final results. Moreover, for proper management and running the business in an
efficient manner, they require with sufficient amount of funds to perform there activities. Thus,
it is been seen that there is a requirements of adequate financial management which will ensure
with the adequate amount of funds to achieve the objectives (Brignall and Modell, 2011). Thus,
in this report, the case study of Silloth Nursing and Residential Care Home is taken into
consideration. In this, the focus is on the impression of costs and control done in health and
social care. Further, it is required to determine with the deep examination related to management
of financial resources in Healthcare. Thus, it aims in utilizing the financial resources effectively
and serve with adequate return to the stakeholders. Moreover, the it will include the role of
planning to manage the financial budgets and state with the importance in monitoring and
keeping the record of expenditure.

TASK 1
ESSAY
Principles of costing and business control system
As per the case study provided, principles of costing refers to the determination of
product's cost, obtain knowledge about stakeholders input which mainly include non-financial
staff, attaining with quality data to ensure efficient results. It also involves with the costing of
different material cost, reducing with the subjectivity and must make sure that the cost is highly
transparent and can be audited easily. Further, Silloth need to adopt with the principles in costing
which will help in controlling the business, help the customers to attain proper treatment and
serving with greater returns to the shareholders. Moreover, for cost control refers to the
identification, determine with the quantity, grouped together and proper comparison is made for
it. Thus, it assist in managing with the information which have a greater impact on the operations
of the company and also help them to make the adequate decisions. In addition to this, the
amount which is spend in making the provisions related to the goods and services need to be
determined as it will help in making calculations for the expenditure made by the company
(Baranov, 2015). This will assist in stating that the institution is running into losses or profit by
calculating the cash inflow. Further, there are several types of cost which is been aligned with
different services and cost. It can be either direct cost or indirect cost which help in determining
the expenditure in a proper manner. Further the prior one refers to the cost which is directly
incorporated with the production unit which includes staff cost, maintenance of patients,
establishment cost etc. In contrast to this, indirect cost is the one which is not incurred directly
but highly affects the functioning of the company. It involves with budgeting, preparing a payroll
etc. Further, the business control system is a process of monitoring the activities of business such
as checking the performance level, comparing it with the set goals, analysis the causes behind it,
and taking several steps to overcomes the problems which will assist in achieving the objectives
(O'Riain, Curry and Harth, 2012). This can be done by using different methods such as
benchmarking, expenditure calculation etc. Further, it can be said that it is important for the
organization to take several measures in controlling the cost incurred in it.
Information needed for managing the financial resources
In Silloth health an care, the measures to taken to evaluate with the performance level
related to the strategic goals plays an important role in attaining the information for managing

the financial resources. The measures involved in this are cash flow, market share, stating the
profit margin and the market position. Thus, the objectives determined in the case study related
to the serving of greater services will be achieved by providing with higher customer
satisfaction, enhancing productivity and the organizational flexibility. Thus, it is important for
the healthcare volunteers to satisfy with the needs of customers or patients to a greater extent.
Further, it is been seen that the demands of the people related to the services are been changing
with the time, so it is important for them to evaluate with the needs and than serve with there
treatment so as to make them more satisfied and comfortable. In addition to this, for managing
with the financial resources in the institution, it is important for them to acquire with the main
source of income which includes the details such as from where the inflows are been coming,
and need to know about the level of employees which will help the company to know about there
workings (James, King and Suryadi, 2011). Thus, it is also required to state the information
regarding the capital expenditure, salaries and wages given to the workers, evaluating with the
resources which help in bringing the sufficient funds for the organization.
Regulatory requirements for managing the financial resources
For managing the resources for the organization, it is highly important to functions are
been under the regulation determined by the government. Further, for this Silloth health and care
needs to register with there firm under company house which will help to comply with the legal
legislations and policies to ensure with the efficient management and fairness of operations in the
company (Geng, Bose and Chen, 2015). Further, this regulatory framework help in maintaining
with several things such as accountability, consumer protection, reduction of financial crime and
the many other norms. Moreover, the government has formulated with health and social care act
2012, which determines with the legislation and the code of practices which gives greater
assistance in managing with the financial resources. Thus, it is important for Silloth to follow
with the norms and policies determined under this act. Further, there is a greater requirement of
the HM revenue and customs which determine with the basis for the formation of financial
statements so as to ensure the determination of taxes and the duties which are to served by the
organization. In UK there is tax authority which is highly responsible for ensuring the money is
available for funding the services which are been served to the customers. Thus, they need to
audit the financial statements so as to ascertain with the causes which hinders the growth of the
company in the industry (Finance and Network, 2013). Moreover, there is a financial reporting

council which is working for the promotion of high quality corporate governance and help in
reporting to foster investment. Further the prior one refers to the cost which is directly
incorporated with the production unit which includes staff cost, maintenance of patients,
establishment cost etc. In contrast to this, indirect cost is the one which is not incurred directly
but highly affects the functioning of the company. It involves with budgeting, preparing a payroll
etc.
Different systems for managing financial system
It is been evaluated that without having an efficient system, Silloth will not be able to
provide with proper medical treatment and care to the patients. Further, this develops with the
need of proper managing of finance for the health and care so as to ensure the functions of the
company are performed effectively (Eckerd, 2015). Moreover, they must keep a proper account
for the expenses of the hospital, ambulance service trust, medicine department etc. so as to make
the maximum use of financial system and serving with greater quality services to the customers.
Further, they develop with the budgets which will involve the funds which are to be investment
for the betterment of the patients. They are been set by the directors or managers of healthcare,
so as to achieve the targets in an effective manner. In addition to this, they are obliged with the
formulation of proper financial accounts so that they can evaluate the results that they are
running into losses or profit. They need to produce with the financial report as per the legislation
and standards which are been set by the legal authority. Further, they need to maintain with both
the book of accounts as well as in the IT system so that they can easily track with the financial
activities performed in the organization. They must have a proper cash management which
means that the amount given by the patients must be kept in the record and they should be given
with the proof for it (Crosby and Henneberry, 2016). Thus, the systems adopted by the institution
need to be monitored and audited on the regular basis as it will help to know about the
performance of the company.
Different sources of income
According to the case study of Sillot, it is been seen that there are several sources of
income which is been acquired by the institution. Further, as it is a nursing home large number of
people are serving with some help for the betterment of the public. Thus, there are many people
who are coming up with the funds for the developing the infrastructure, acquiring with the
resources etc. which may help in providing better services to the customers. Thus, it can be said

that donation plays an important role in providing with the income to the organization. In
addition to this, another means for it is personal income, this is been acquired by Silloth in the
form of treatment money which is been deposited by the patients. This is the core income of the
nursing home. Further, government is also helping out in giving with the funds to the nursing
home which help in increasing the income level of the institution. Thus, with the help of these
grants they can make heavy investments and take efforts to make the services better which can
satisfy the customers to a greater extent. Furthermore, they also organize with several campaigns
which are efficient enough in earning large amount of income from it. They can sell with
different products and goods such as selling tea, chocolates and other things which may help
them in earning greater amount of funds (Brignall and Modell, 2011). Thus, the above
determined are the major means which help Sillot to earn greater income.
Factors that influence the availability of financial resources
It is been evaluated that there are several factors which have greater influence on
acquiring the financial resources for the organization. Firstly, the type of services or products
served by the company. It is a major factors which help to attain the knowledge about the
requirement of the raw materials or other resources which are required for the development of
the final product. Thus, accordingly they will develop with the strategies and policies so as to
formulate with the goods. Secondly, the size of the firm, it is one of the major factor which help
to know the requirement for the finance so as to produce the goods or services. If the company is
small it means that there services will also be at lower level (Baranov, 2015). This help to know
that they will require less amount of funds for them. Thirdly, the funding priorities which are
been established for providing with the funds to the companies. Thus, in this there are several
government authorities which are serving with the funds to the health cares which benefit them
to make there services more efficient. Fourthly, the economic conditions of the country is also an
important factor which have a greater impact on the availability of the financial resources for the
organization. If there is an inflation in the country than the prices for acquiring the funds will be
high which will affect the functioning of the firm to a greater extent.
Different types of budget expenditures
Budget is a development of the plan in terms of monetary which is been prepared for
prior to the performing the task. This is mainly the planned manner of spending the money for
the future. Thus, it is important for the company to develop with the budget so that they can

manage with there expenditures in an effective manner. Further, there are several types of
budgets availing in the organization (Samiksha, 2016). Operational budget mainly involves with
the revenues and expenses which are been spend in performing the day to day expenses of the
business. Thus, the cost of the production cost and other overheads which are been invested on
the goods are been compared with the prior determined budget so as to acquire with the
deviations and can make several provisions to overcome them. Furthermore, cash flow budget
efficiently examines with the inflow and outflow of cash which is been acquired on the daily
basis. It highly assist in predicting with the ability of the company to take in more amount of
money than the fund it pays to outsiders. Further, the managers are responsible for monitoring
with the cash flow budgets so as to acknowledge the shortfalls between the expenses and
incomes. In addition to this, capital budget determines the manner in which the business receives
and spends money on capital projects (O'Riain, Curry and Harth, 2012). Managing assets such as
property, buildings, investments and major equipment may have a significant effect on the
financial health of a company, particularly through the peaks and troughs of daily business.
Decisions about expenditures in health and social care
In a company, they need to make several decisions regarding the expenditure made on the
project which involves the funds spend on plant, equipment, research and development and on
other things (James, King and Suryadi, 2011). Thus, it is required by Silloth to take the adequate
decisions after acquiring the need for the capital expenditure which will help them to attain cash
flow for the organization. Thus, for this they need to follow with several steps such as setting up
the priority. In this the company need to identify with the needs where there is a need for
expenditure so that they can make the provisions for the same. Further, in the next step they need
to develop with the strategies related to short term and long term planning so that they can
choose the best option for acquiring the funds from the market. Thus, after this they need to
develop with cost analysis for the field in which the expenditure is to be made (Guthrie, Olson
and Humphrey, 2010). This will help to know the actual requirement of the funds that is required
by the company to make the investment. Further, they will evaluate the potential financial risk so
that they can make the arrangements for it on the prior basis. Thus, it is very important for the
organization to make the decision for the company in proper manner so that they can benefit
them in the longer run.

TASK 2
3.1 Explaining how the financial shortfalls can be managed
It is been seen that there are several ways for managing the inadequacy of finance in firm
where the managers of Silloth nursing home are able to arrange with the activities by making the
investments on the projects which they feel that possess with the ability to develop with more
dividends. The managers can make the contact their suppliers to give extension in date of
payments so that company can make sale of good and services in that duration. This will assist
in making money during this time so that financial shortfall can be met (Geng, Bose and Chen,
2015). Further, next method is to make with requests to the public for making payments through
debit card, credit cards and by cash. Thus, with the means of this facility the organisation can
easily convert the vouchers sent to banks into liquid cash. In addition to this, they have another
alternative of selling off the assets that are of less use for company. This includes selling off
different equipments or vehicles that are obsolete.
3.2 Actions to be taken for suspected fraud
The fraud refers to any act which is been performed intentionally and ultimately results in
attaining loss to one of the member over other's inappropriate gain. Further, it can be done by a
particular individual for the attainment of undue advantages through undertaking money,
property or any other services with assistance to the illegal means (Finance and Network, 2013).
In addition to this, frauds may be of various types which presents following acts:
 Making with the fraud with the false representation of facts
 Fraud by concealing any material facts from other party
 Fraud by making unethical use of power and position
According to the scenario, Silloth nursing care which makes the health and social care
services to become fraud by stating false sales and wrong valuation of assets. The firms can also
give fraud financial reports in which they can conceal fair reporting of financial statements.
3.3 Determining the budget monitoring arrangement
It is been seen that the organization can monitor by using different methods. Further,
budget monitoring should be a periodical and ongoing process. Actual results of sales and
expenditures could be easily obtained from the company’s accounting system. The actuals result
should be compared with the budgeted. Amounts that have variances should be studied and

reasons should be sought. A report should be prepared containing the budgeted and actual figures
with the reasons of the variances by the financial department and a meeting should be held with
the main departmental heads or the people concerned. Once the meeting is concluded and if the
budgets needs to be changed to reflect the current operating environment changes, it has to be
done so after careful evaluation. The budgets should be realistic, be motivating and drive
performance. These consideration should be looked into when preparing budgets. Furthermore,
effective budget monitoring entails regular scrutiny, making comparison of what was forecasted
and what is actually happening in the company (Epstein and Buhovac, 2014).
4.1 Information required for financial decisions
At Silloth Nursing & Residential Home care, financial analysts and experts have to make
number of financial decisions. Therefore, they needs to analyze and evaluate information from
wide range of resources such as profitability statement, cashbooks, receipts and payments a/c,
inventory records and many others. They use all these above information to measure the level of
income through rendering of quality services. P&L statement is mainly used to find out that
whether company has earned significant profit or not through their operations. With the effective
analysis of annual accounts, they identify reasons for poor performance or loss and make
appropriate decisions & formulate strategies to overcome financial consequences. In addition,
they also use other departmental reports like HR reports, patient records, investment in research
& development (R&D) to introduce new vaccination & medicines for the public (Eckerd, 2015).
From the records of the patient, they analyze various infectious diseases, adopted treatment
methods & other essential information. It will enable Sillot Nursing Care’s policymaker to find
out innovative ways and frame better strategies to adopt new treatment facilities for the public to
reduce the spread of diseases and derive success.
4.2 Relationship between service delivery, cost & expenditures
The main target of health and service providers is to cure patients from various diseases
so as to improve their life standards and make their life healthier. Being an HSC rendering
organization, Silloth Nursing and Residential Care Home targeted at delivering best health care
services to cure patients. The effectiveness of service delivery causes a direct impact to the
satisfaction level of the people to get cure from various diseases through proper vaccination.
HSC can incur number of costs can be categorised into two, fixed as well as variable costs. Fixed
cost has no relationship with the delivery of services for instance, expenses incurred in relation to

purchase of equipments, rent of the building, administrators salaries and many others (Czarnitzki
and Hottenrott, 2011). Moreover, expenses incurred on training to train nursing and health care
staff also are the part of fixed cost. In contrast to this, variable costs have direct relationship with
the activity volume or delivery of process. For instance, expenses made by Silloth Nursing &
Residential home on purchase of drugs, vaccination, consumables are the types of variable costs.
The higher the quality of vaccination improves the service delivery effectiveness and renders
greater value to the patients to improve their life.
On the contrary, several expenses that business incurred are of mixed nature, both the
fixed & variable, also called semi-variable/semi-fixed. For instance, in the HSC firm, staff hired
on contract basis like vaccinators for an especial campaign is a type of semi-variable cost. On the
basis of this, it becomes clear that expenditures incurred for delivery of cure services to the
public are called direct cost and aims at rendering quality services to the public. Unlike this,
expenditures that are not related to the service delivery process are known as fixed cost (Crosby
and Henneberry, 2016). Thus, as the volume of service delivery goes up, direct expenditures
increases results in high variable cost or vice-versa.
4.3 Financial considerations which impacts the individuals used health and social care services
Financial considerations impact a service user in many ways. One such aspect is the
financial consideration on staff. They are discussed below:
Cost of Staff training, method of training and mode of training i.e. e-learning or
workshops. Considerations on whether to spend or not to spend on suitable staff training will
affect the service user. The service user will get quality care if the management invest in good
training. If the management does not invest in good training then the individuals would not
receive quality care as the staff is incompetent and not capable enough in the basic functions as
well.
Cost for Strict recruitment process. The financial considerations on the amount of expenditure
allocated for the recruitment and selection process (Brignall and Modell, 2011). Strict
recruitment would provide staff that is suitable for the job. The lack of it would put the quality of
care at a risk.
Adequate staff wages due to the for an acceptable -Staff ratio to the individuals considerations on
amount of staff wage expenditure and the need for staffing levels according to the individual
needs. If enough staff is provided; then personal centred approaches can be implemented. Lack

of enough staff ratio could lead to institutional abuse and the lack of accessibility of required
services
4.4 Ways to improving the care services in health and social care
Payment by Results – The local authorities could appoint an officer to come and verify
the results or outcome. Example, the officer could interview the patients.
NHS charging overseas visitors – Silloth could charge a higher price for foreigners who seek
care in their homes.
Benefit cap – Silloth could lobby the government on getting a higher benefit cap from the
patients before the local authority steps in. Obtaining fees from the patients could enable the firm
avoid the stringent control imposed by the local authorities (Baranov, 2015).
Funding support and other innovative measures to improve health and social care – Silloth could
organize funding campaigns to raise awareness among the younger generation to contribute for
Silloth homes.
Equity and Excellence: liberating the NHS;
Pay drug companies according to the value of new medicines,
to promote innovation
Money will follow the patient through transparent, comprehensive and stable payment systems
Providers will be paid according to their performance
CONCLUSION
From the above report, it can be articulated that it is important for Silloth to manage with
the financial resources in an efficient manner as it will help the company to grow in the market.
Thus, it is also crucial for the company to make proper budget plan so that they can manage with
the activities in a proper manner. Moreover, they must invest in different areas so as to provide
with greater assistance for the management of the operations in an efficient manner.

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