Managing Financial Resources in Health and Social Care - Assignment

Managing Financial
Resources in Health and
Social Care

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Principles of costing and business control systems...............................................................1
1.2 Information required to manage financial resources.............................................................1
1.3 Regulatory needs to manage financial resources..................................................................2
1.4 Systems to manage financial resources.................................................................................2
TASK 2 ...........................................................................................................................................3
2.1 Different sources of income..................................................................................................3
2.2 Factors influencing availability of financial resources.........................................................3
2.3 Different kinds of budget expenditures.................................................................................4
2.4 Decision making for expenditure..........................................................................................4
TASK 3 ...........................................................................................................................................5
3.1 Management of financial shortfalls.......................................................................................5
3.2 Action taking in the event of suspected fraud.......................................................................5
3.3 Evaluation of budget monitoring arrangements....................................................................6
TASK 4............................................................................................................................................6
4.1 Information essential to take financial decision....................................................................6
4.2 Relation between healthcare services costs and expenditure................................................7
4.3 Impact of financial considerations upon an individual while using care services................7
4.4 Suggest ways to improve the health and social care service through changes to financial
systems and processes.................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Managing financial resources refers to conduct various relevant activities such as sources
of funds, expenditure, cash flow, costing, accountability, auditing, budgetary control, variance
analysis, capital, investment decisions and many more (Aveyard, 2014). It is necessary to utilise
overall financial sources in correct manner to conduct operations in order to fulfil desired goals
of the organisation. The present report is based on Silloth Nursing and Residential Care Home
which provide care to people like Palliative care, Respite care and Convalescent care. This
assignment will focus on principles of costing and financial resources management along with
factors influencing the same. It will also discuss about budget monitoring and relation between
cost & expenditure with health care.
TASK 1
1.1 Principles of costing and business control systems
The principles of costing and business control systems which are utilised by organisations
to manage overall cost of production while conducting operational activities or procedures. It
involves the criteria of carrying out effective actions to control business systems in terms of
avoiding threats and facilitate optimum utilisation of financial resources to gain maximum.
However, the costing have several principles which should be followed by Silloth Nursing and
Residential Care Home while conduct the same in proper manner. It involves the principles of
costing such as including all costs, high quality data, transparent processes, relationship between
activities & resources, materiality, consistent across services and engage clinical & non- clinical
stakeholders (Glasby and Dickinson, 2014).
At the other hand, there are various certain business control systems which are required
adopt by Silloth Nursing and Residential Care Home to prevent abuse, errors, frauds and
mismanagement of funds. It involves effective systems such as Budget & budgetary control,
internal & external audit, bank & cash control, expenditure & purchasing control, software & IT
infrastructure, regulatory framework, forecasting and monitoring.
1.2 Information required to manage financial resources
The information is very important for managing financial resources including data about
sources of funds from where desired capital can be collected for conducting operations in proper
manner. It is necessary to gain correct information about these sources so that required amount of
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funds can be collected as per requirement of business operations in respect of conducting better
outcomes appropriately. However, it includes actual information of income of Silloth Nursing
and Residential Care Home are legacies, fund raising, residential fee, investment income
donations etc. Moreover, it is necessary to gather needed amount of money in health care sector
in respect of conducting medical operational activities for treating diseases to make people
healthy (Kelly, 2015). At the other hand, given organisation can be used by management to
prepare costing, budget, variance analysis and cash flow forecast which provide support to make
correct decisions.
1.3 Regulatory needs to manage financial resources
There are various kinds of rules and regulations are made by regulatory bodies in order to
make sure about proper management of financial resources by considering several factors.
However, it involves fairness, accountability and truthfulness of financial data of an organisation
presented in annual account of the same. In addition to this, Silloth Nursing and Residential Care
Home should follow overall of these regulatory principles and take of care of relevant factors
while managing financial resources appropriately.
At the other hand, the given healthcare organisation is required to pay taxes in correct
manner according to the legal regulations made by authorised agencies. It provide support to
manage financial sources by completing relevant activities truthfully which is beneficial for
business appropriately.
1.4 Systems to manage financial resources
There are various kinds of systems which are utilised by different healthcare
organisations which are suitable for their business in order to manage financial resources in
correct way. It is important to conduct management of funds because it is considered as key
factor for initiating business and run it successfully (Rakodi, 2014). Moreover, it includes
effective system including set of methods, procedures, routine which is organised to conduct
regular activities of operations to generate desired outcomes. In context of Silloth Nursing and
Residential Care Home, they are required to adopt effective system to prepare proper annual
financial statement.
At the other hand, specific system is helpful to conduct management in systematic
manner which have less chances of generating issues and facilitate proper management of
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