Managing Financial Resources in Silloth Home Care

MANAGING FINANCIAL
RESOURCES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Principles of costing and business control systems...............................................................1
1.2 Information required to manage financial resources.............................................................2
1.3 Regulatory requirements for managing financial resources..................................................3
1.4 Systems for managing financial resources in Silloth home care...........................................3
TASK 2............................................................................................................................................4
2.1 Sources of income encountered in health and social care.....................................................4
2.2 Factors influence availability of financial resources in H&S...............................................4
2.3 Budget expenditure types in Silloth home care.....................................................................5
2.4 Decision making tools for expenditure in H&S (How decisions about expenditure are
made within entity).....................................................................................................................6
PART 2............................................................................................................................................7
TASK 3............................................................................................................................................7
3.1 Methods to manage financial shortfalls................................................................................7
3.2 Actions taken against suspected fraud..................................................................................7
3.3 Budget monitoring arrangements in organisation.................................................................8
TASK 4............................................................................................................................................8
4.1 Information needed to make financial decisions related to H&S services............................8
4.2 Relationship between health and social care service delivered, cost and expenditure.........9
4.3 Financial consideration impact on patients (an individual using H&S services)..................9
4.4 Ways to improve health and social care service through changes in financial systems and
processes...................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................12

INTRODUCTION
Financial resources of any organisation including cash, liquid and security that are
essential to manage organisation's effectiveness and systematic management of its resources.
The present report is based on understanding financial resources' management for Silloth
Nursing and Residential care home. It is health and social care sector which provide treatment
facility to a million patients to cure their diseases and improving health. In this regard, principle
of costing and business control system as well required information for managing financial
resources can be described. Overall, management system for cost effectiveness and reducing
expenditures are to introduced through this assignment. However, tools and techniques to
manage financial resources and improving economic position by preparing budget is to
expressed. Thus, students are able to understand recommendations for improving health and
social care services with adequate decisions regarding financial transactions through this report.
PART 1
TASK 1
1.1 Principles of costing and business control systems
Costing is a technique of price determination for services provided by Silloth home care
affects productivity and profitability of organisation (Allred and Addams, 2013). For this
purpose, cost is determined on the basis of following principles:
 Cost relates with its cause: Price is determined on the basis of cost incurred on
expenditures on production of services, forecasting market demand, competitiveness etc.
Therefore, cost for producing, medical services to hospital's patients are set on the basis
of expenditures on tools and other facilities utilised in hospitals (Bundy, Shropshire and
Buchholtz, 2013).
 Cost is charged after it is incurred: After investment on operation, incurred cost is
determined as expenditure. Thus, it is principle of Silloth home care that after investment
on producing services, price is set for medical and treatment facilities to entity's facilities
 Cost incurred for business operations in pastime not in consideration to future cost:
Costing is always on the basis of actual incurred expenses which is not linked with future
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operations. Hence, hospital entity sets price on behalf of incurred expenditures in present
time for providing treatment and hospitalisation (Castka and Prajogo, 2013)..
Business control system: There are several systems used for managing and controlling
operations of Silloth home care. It includes inventory control, purchase control, merchandising,
customer tracking, point of sales and so on (Chathoth and et.al., 2014). In this regard, some
control systems can be understood as:
 Inventory control: Inventory control is a process for monitoring over excess of
operations and managing all activities of business entity. It affects liquidity of
organisation as well profitability related to hospitalisation and treatment services of
organisation. It is considered that inventory control system is to prepare strategies for
getting proper satisfaction from service takers of the organisation (Collier and Bienstock,
2015).
 Point of sale: It is one of the essential controlling system where a retail transaction is
finished at a particular place and in a specific time. However, at this point, service taker
pay charge on facilities provided by entity. Afterwards, entity issues receipt for
transaction to present payment on services.
1.2 Information required to manage financial resources
For managing financial resources of Silloth home care, some information is needed for
adequate cost allocation, decision making regarding investment on providing hospital's services
(Dabholkar, 2015). In this way, following information are required for financial management as:
 Accurate accounting information: It is essential to have true and fair accounting
information of last years' operations including investment and return on it. On behalf of
which, further decisions can be made for organisation's functioning and accounting
information. Thus, accounting information are needed for Silloth home care to provide
satisfied treatment services to patients effectively (Daniels and et.al., 2013).
 Audit report information: Audit Reports of organisation show financial and non-
monetary performance of hospital entity should be audited and creating balance for
production of services. Thus, for decision making for Silloth, it is needed to have audited
financial statements including profit and loss account, balance sheet etc (Deng, Kang and
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