Report on Manage Financial Resources in Health and Social Care
Added on 2020-06-04
16 Pages5158 Words46 Views
MANAGING FINANCIAL RESOURCESIN HEALTH AND SOCIAL CARE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Principles of costing and business control system................................................................11.2 Information needed to manage financial resources...............................................................21.3 Regulatory requirements for managing financial resources..................................................31.4 System for managing financial resources in a health or care sector.....................................3TASK 2............................................................................................................................................4M2 Select design and apply appropriate methods/ techniques...................................................6TASK 3............................................................................................................................................73.1 How financial shortfalls can be managed.............................................................................73.2 The actions to be taken in the event of suspected fraud........................................................73.3 Evaluate budget monitoring arrangements in health or social care organisation..................8TASK 4............................................................................................................................................84.1 Information required to make financial decision relating to a health and social careservices........................................................................................................................................84.2 Analyse the relationship between a health and social care service delivered costs andexpenditure..................................................................................................................................94.3 How financial consideration impact upon an individual using the health care service......104.4 Advise ways to improve the health and social care service through changes to financialsystem and process....................................................................................................................10D3 critical reflection to evaluate own work and justify valid conclusion.................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONFinancial resources are essential part in organisational context. Concept of financialmanagement has become vast in recent scenario. Business organisation as well as health andsocial care sector also adopting the concept of managing financial resources for bettermanagement. This report is prepared to elaborate that how systems are used to manage financialresources in health and social care (Luo and et. al., 2012.). Role of planning in the managementof health and social care budgets also defined in this context. Importance of monitoring budgetexpenditure in health and social care organisation also illustrated. How systems and processes formanaging financial resources influence health and social care services. Knowledge andunderstanding needed to monitor costs, make predictions evaluate the process of effectivecontrol of resources allocation including shortfalls and make recommendations for expenditure.System and process for managing financial resources influence health and social care services.Silloth nursing and residential care home is chosen organisation subject to manage financialresources.TASK 11.1 Principles of costing and business control systemCost control is one of the essential aspects in organisational context. Cost control systemsbasically help to reduce cost and enhance profitability of organisation.Cost remains associated with cause: There is one single concept is adopted under costsystem that is cost. This is one of the natures which is based upon facts and effectsrelationship. This is also considered as a concept which indicates that cost alwaysrelevant with certain events and transactions. Variations in abnormal cost: This cost is incurred for adjustment of particular purposeand task. Abnormal cost does not remain the part of production and manufacturingprocess. This cost is considered while calculating the cost of the product. Prior period cost not taken into consideration: The costs which remain associated withpast projects and task are not considered in operations and management.Double entry principle: This is known as a concept which tells that every transactionaffects two sections. Cost control and management is based upon double entry system.For example if an organise invest money subject to acquiring assets increase the value of1
assets and decrease cash (Naledi, Barron and Schneider, 2011). This is how double entrysystem helps.Business control system: Controlling, staffing, organising, administration andperformance management are main elements of business control system. This system basicallyused by organisation in order to achieve core competence and perfectness within organisation. Itprovides a path to track the actions and operations subject to set targets and aims. It is alsoconsidered as an evaluation method which helps to analyse performance of employees subject todesired aim and objectives.1.2 Information needed to manage financial resourcesManagement of financial resources is one of the challenging tasks in respect of effectivemanagement and operation of resources. Utilisation of financial resources directly related to costand cost remain directly connected with profitability of organisation. There are some essentialaspects are considered in terms of analysing requirement of financial resources and utilisingthem as their viability. Various informations are needed to manage financial resources such as:Clear and certain accounting data: it is very important for business entity andorganisation in order to attain clear and fair representation of accounting data. Clearinformation helps to demonstrate plans for analysing projects. Transparency builds strongstructure of forecasting and developing strategies. Users and managers be able to sort outthe plans and make effective strategies with the help of transparent and clear information.Risk management content: analysing future risk and uncertainties is prime requirementof organisation subject to managing financial resources efficiently and effectively(Richard and Shea, 2011). Making strategies analysing plans for better forecasting aresome key functional areas subject to risk assessment. Information and data related to riskmanagement. It provides aid in terms of recovering the damage and loss from associatedrisk.Long term and short term forecasting: Lastingness is one of investment plans andstrategies subject to long term and short term forecasting information also remainessential for managing financial resources. For health and social care long term and shortterm forecasting basically depends upon actual information and data of similar tasks. 2
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