Managing Financial Resources in Health and Social Care

Unit - 14 Managing Financial Resources
in Health and Social Care
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Table of Contents
EXECUTIVE SUMMARY............................................................................................ 4
INTRODUCTION.........................................................................................................5
TASK 1........................................................................................................................6
1.1 PRINCIPLES OF COSTING AND BUSINESS CONTROL SYSTEMS..............6
1.2 INFORMATION NEEDED TO MANAGE FINANCIAL RESOURCES................8
1.3 THE REGULATORY REQUIREMENTS FOR MANAGING FINANCIAL
RESOURCES..........................................................................................................9
1.4 SYSTEMS FOR MANAGING FINANCIAL RESOURCES IN A HEALTH OR
CARE ORGANISATION........................................................................................10
TASK 2......................................................................................................................11
2.1 THE DIVERSE SOURCES OF INCOME THAT MAY BE ENCOUNTERED IN
HEALTH AND SOCIAL CARE...............................................................................11
2.2 FACTORS THAT MAY INFLUENCE THE AVAILABILITY OF FINANCIAL
RESOURCES IN HEALTH AND SOCIAL CARE ORGANISATIONS....................12
2.3 DIFFERENT TYPES OF BUDGET EXPENDITURE IN HEALTH AND SOCIAL
CARE ORGANISATIONS......................................................................................14
2.4 DECISIONS ABOUT EXPENDITURE ARE MADE WITHIN A HEALTH OR
SOCIAL CARE ORGANISATION..........................................................................15
TASK 3......................................................................................................................16
3.1 HOW FINANCIAL SHORTFALLS CAN BE MANAGED..................................16
3.2 THE ACTIONS TO BE TAKEN IN THE EVENT OF SUSPECTED FRAUD....17
3.3 BUDGET MONITORING ARRANGEMENTS IN A HEALTH OR SOCIAL CARE
ORGANISATION...................................................................................................18
TASK 4......................................................................................................................19
4.1 INFORMATION REQUIRED TO MAKE FINANCIAL DECISIONS RELATING
TO A HEALTH AND SOCIAL CARE SERVICE.....................................................19
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4.2 THE RELATIONSHIP BETWEEN A HEALTH AND SOCIAL CARE SERVICE
DELIVERED, COSTS AND EXPENDITURE.........................................................20
4.3 HOW FINANCIAL CONSIDERATIONS IMPACT UPON AN INDIVIDUAL
USING THE HEALTH AND SOCIAL CARE SERVICE..........................................21
4.4 WAYS TO IMPROVE THE HEALTH AND SOCIAL CARE SERVICE
THROUGH CHANGES TO FINANCIAL SYSTEMS AND PROCESSES..............22
CONCLUSION.......................................................................................................... 23
REFERENCES..........................................................................................................24
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EXECUTIVE SUMMARY
In this assignment, an understanding has been gathered on the systems that are
used in the Health and Social care to manage effectively the financial resources and
the role of planning which is also essential. The significance of the monitoring and
planning the budget expenditure has also been discussed that has helped the
managers of Care Tech Holdings PLC to a great extent. This report has thus helped
in generating the basic understanding and insights about the planning the budget in
a home and has helped in making relevant recommendations for the are Tech
Holdings Plc.
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INTRODUCTION
In this report in context to the financial report of CareTech Holdings Plc will be
undertaken of the year ending 2016 which will cover the aspects of the financial
resources management in the HSC sector. CareTech Holdings Plc renders high-
quality support and the health care for the individual with the complex needs that
aims to ensure the quality of life of the service users. It renders services like children
services, adult services, young people residential services and many more.
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TASK 1
1.1 PRINCIPLES OF COSTING AND BUSINESS CONTROL SYSTEMS
Costing is an essential system for an organisation that is the element for the control
system and helps in determining the costs of the production that will be determined
in context to the services and the products (White, 2010). According to NHS, there
are six costing principles that are undertaken and should be implemented by the
HSC organisations like that of CareTech Holdings Plc.
Consistency
Through the consistency principle, the expectation of the different stakeholders are
met effectively and the quality of services are also enhanced. This is a principle that
focuses on ensuring the consistency approach in every department and units of
organisations which will help in measuring the cost (White, 2010).
Materiality
According to this principle of costing in HSC, the organisations should accurately
record all the material procurements ad the cost related matters and activities so that
right cost can be calculated.
Data accuracy
According to the principle of data accuracy, CareTech shall calculate the right cost
by recording the different data properly and maintain effective recording system that
will include the time spent y the clinical staff, journal entries, ledgers, trial balance
and the staying period of patients as well. This will allow effective decision making
and will help in accurate data recording (Drummond, et al. 2015).
Stakeholder engagement
This is another principle of costing which is undertaken by Care Tech Holdings Plc
that estimates the cost of the non-financial department such as the non-clinical staff
and the clinical staff and includes them all in cost estimation.
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