Managing Financial Resources- Health and Social Care
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Added on 2020-01-28
Managing Financial Resources- Health and Social Care
Added on 2020-01-28
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1...........................................................................................................................................11.1 The principles of costing and business control systems:......................................................11.2 Information needed to manage financial resources: .............................................................21.3 Regulatory requirements for managing financial resources:................................................21.4 Managing financial resources in health care organisation:...................................................2TASK 2............................................................................................................................................32.1 Diverse sources of income in health and social care:...........................................................32.2 Factors influencing the availability of financial resources to the health and social careorganisations:..............................................................................................................................32.3 Types of budget expenditure in health and care organisations:............................................42.4 Expenditure made within the Health and Social care organisations....................................4TASK 3............................................................................................................................................43.1 Managing the financial shortfall...........................................................................................43.2 Action taking during Suspected fraud...................................................................................53.3 Evaluating the Budget monitoring.......................................................................................5TASK 4............................................................................................................................................64.1 Information need for taking the effective financial decisions...............................................64.2 Relation between delivery cost and expenditure in health and social care services.............64.3 Financial consideration give impact on health and social care.............................................74.4 Suggesting the way to improving the financial system and process.....................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9
INTRODUCTIONThe management and usage of the financial resources in the health and social care is ahigh priority matter. As better management of funds will help in developing better and highstandard health and social care for the society (Epstein and Buhovac, 2014). In this report therewill be an overall evaluation of the systems and process which are used in managing the financialresources in health and social care. This will help in understanding how the financial decision aretaken and how we can monitor budgets. Evaluation of the impact which occurs due to thefinancial decision taken to provide health and social services to the society and individuals.Furthermore, this report will allow people to understand what core systems are available andhow these systems provide assistance in financial management of health and social care. It willencourage understanding of monitoring budgets. TASK 11.1 The principles of costing and business control systems:Costing is described as the official terminology to assess and ascertain the cost. Costinginclude a lot of valuation system which helps in determining the value of goods and services(Ahlstrom, Chen and Yeh, 2010). Cost is basically the amount which a person pays to buysomething. Six Principles of costing:Materiality: It deals with Significance of Transaction, Balance and errors.Stakeholder engagement: Involving the stakeholders to implement the decision.Consistency: Same financial approach in all organisation.Data accuracy: Accurate data for control.Transparency: For auditing and monitoringCost efficiency: Better control systems.Business Control system are put in place to control and monitor the business activities. These system allow the auditor in evaluation. There are certain principles of businesscontrol system:Prevention control: Prevent any devastating situation.Security: Providing safe environment to staff.Defective control: Process of determination of inaccuracies.1
Managing control issues: Helps in dealing with compliance issues.1.2 Information needed to manage financial resources: Information is necessary for the management of financial resources in health and socialcare (Lusardi, 2011). The data is collected for the past performance to understand where do theinaccuracies occurred and what the issues were in existence in the financial system. Theinformation which will be gathered regarding the difficulties, variances and crises will help ingetting better cash flow and insolvency advices. A proper information management will help increating a better, transparent, accurate accounting information, short and long term forecast,auditing reports, risk management. Information required here will be about people, equipment,building, consumable item, administration, trends, external influences, costs, legal requirements.The information will make the business system more effective and efficient as theevaluation and monitoring of the system will be done in much easier manner. This will enablethe health and social care in enhancing its services to a high standard which will ultimately helpthe society and people.1.3 Regulatory requirements for managing financial resources:There are many companies which are offering their health and social care services to thesociety. To make sure that all the companies provides a better and effective health and socialcare the legislation and laws are put into the system. The prime task of the legislation and lawsare to make sure that the companies providing health care services do not face bad creditmanagement and the variances/ shortfalls do not hamper their activities (Altenburg and Pegels,2012). Therefore the UK and NHS have formulated a guideline which has to be followed by thecompanies if they want to serve in the health and social care market. They must have to get thecredit licence and have to follow the terms and conditions stated in the health care legislation bythe government and the national health services. The company have to maintain a proper processto keep a updated documentation report of income and expenditure as well as the services.1.4 Managing financial resources in health care organisation:There is high need to manage the financial system of the company, no matter it belongsto which sector. Any health and social care organisation have to maintain a proper financialmanagement system(FMS). The financial management system is made up of tools and processwhich provide effective control, use and allocation of financial resources. It also helps in2
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