CareSouth Group Financial Management

This assignment analyzes the financial management practices of CareSouth Group, a social health care organization. It discusses various budgetary control methods employed by the group and offers recommendations for enhancing their income and expense management. The report also emphasizes the need for NHS to secure additional funding and create a productive work environment to introduce new services and foster growth. Finally, it highlights the importance of measuring the quality of service provided to users.

Managing Financial
Resources in Health and
Social Care

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining the principles of costing and business control system which adopted in
CareSouth Group care home.......................................................................................................1
1.2 Identifying the information needed to manage financial resources for CareSouth Group
care home....................................................................................................................................2
1.3 Explaining the regulatory requirements that need to be satisfied while managing financial
resources in CareSouth Group care home...................................................................................3
1.4 Evaluating the systems which managing the financial resources. .......................................3
D1................................................................................................................................................4
TASK 2............................................................................................................................................4
2.1 Discuss the diverse sources of income available to CareSouth Group in the financial year
2013/2014....................................................................................................................................4
2.2 Analysing the factors that may influence the availability of financial resources in
CareSouth Group. .......................................................................................................................5
M3...............................................................................................................................................5
D2................................................................................................................................................5
2.3 Review different types of budget expenditure in CareSouth Group care home.'..................5
M3 ..............................................................................................................................................6
2.4 Evaluating how decision about expenditure made in CareSouth Group. .................................6
TASK 3............................................................................................................................................6
3.1 assuming there was financial shortfall in CareSouth Group, how this situation could be
managed......................................................................................................................................6
3.2 explain the action plan for financial fraud in CareSouth Group...........................................7
3.3 Evaluate budget monitoring arrangement in CareSouth care home......................................7
TASK 4............................................................................................................................................7
4.1 identifying information required to make decision relation to CareSouth Group................7
4.2 Analyse the relationship between care services delivered and costs and expenditure. ........8
4.3 Evaluate financial consideration or impact on service users.....................................................8

4.4 Recommendation in care service provided by CareSouth Group.........................................9
Feedback-Good work but try to add small bit of your own judgement at the end of each
paragraph. ........................................................................................................................................9
Check grammar and spelling and your assignment are almost 900 words short.............................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management financing has become the most challenging in these days. Every
organisation and business requires the best skilled person to handle the financial management.
Organisation hires the professionals, skilful and talented experts who perform this difficult task.
Private as well as public sector recruit these professionals which is quite strict in the efficient
management of finance. Being the manager of CareSouth Group.
Executive summary
I will discuss on various important aspects which improves the company financial efficiency.
Further, it will discuss on the controlling factors which reduces expenses as well as budget for
the homes. Finance is very essential source for the homes because of little support of partner
organisations. Moreover, it will discuss on the methods or processes that will enhance the
financial system for improving the health and social care services.
TASK 1
1.1 Explaining the principles of costing and business control system which adopted in CareSouth
Group care home.
As a manager in CareSouth Group, it is very imperative for the leader to understand the
financial or principles of costing (Bekaert and Hodrick, 2017). Besides this, it is very essential
process to determine the cost and amount of resources which is needed to give the best
outcomes. For CareSouth Group, principles of costing are useful to determine the total cost of
expenditure. There are six principles given by the National Health care services which must be
adhered by all health care organisations. Some principles of costing are listed below:
Cost is related to its cause: This is the first principle of costing, it defines that cost is
always connected with cause. The figures of the cost is must be analysed. Relationship must be
positive between cost and cause.
Abnormal costs are charged in costing: These costs are those which are incurred by
loss of fire, riot, theft and any accident. Besides this cost is not charged to the production, this
cost distort cost figures and mislead the management for cost control (Blais, 2015).
Past cost is not considered for future costs: In this principle, it refers that past cost is not carried
forward to the future costs because this will occur misleading in future and may lead over
burdened (Boulware and et.al., 2016).
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Keeping of accounts for cost is also based in double entry principles: Cost ledgers or
cost entry will also consider in double entry principles.
Business control system:
Business control is a vital tool used by CareSouth Group in order to ensure the business
activities and complications. Organisation adopts some proactive and reactive control measures
there are given some business control systems such as Purchase and Expenditure, Personnel
control and Budgetary control system. Purchase and expenditure control the wastages in the
business to increase profitability (Cascio, 2018). Besides this, it monitors that all required
products purchased at the best price. Personnel control is the business control in which
CareSouth Group avoid high turnover of employees. CareSouth Group adopts effective training;
retaining techniques to maintain the effective staff and the last Budgetary control system under
this system CareSouth Group adopts productive budgetary control plans. This system helps
CareSouth Group to focus on the business track.
On the basis of above section, it can be analysis that business control systems helps to
adopt discipline in the management system. Moreover, it helps to protect business from
uncertainties and maintained quality among staff members.
1.2 Identifying the information needed to manage financial resources for CareSouth Group care
home.
In order to manage the financial resources of CareSouth Group, manager needs to check
balance sheet, income statement and equity statement, cash flow statement of a particular period.
Balance sheet is the tool to determine the financial position of the company (Chartier, ed., 2014).
CareSouth Group balance sheet outlines the company assets and liabilities which could be
monthly, quarterly or annually. They determine what company owns, owes and shareholders’
investment. Like, CareSouth Group net assets of 2014 was 19.1 million comparatively high in
2013 was 18 million. Fixed assets of the company in 2014 was 26.6 million or in 2013 26.4.
Overall, according to the data results are give positive impression. Income statement also refers
to profit and loss account which is helpful to gather information of financial resources. For
instance, CareSouth Group profit for the year 2014 was £36.2 million or in 2013 £37.1. Besides
this, Cash flow is the record of cash inflow or cash outflow during a financial year. Overall, this
entire information is required to make final report (Drummond et.al., 2015).
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For making financial requirement it must be requires company past data and records to
predict best sources of income and revenue. It helps to analyse company financial resources
which is most required in the organization to full fill the business needs.
1.3 Explaining the regulatory requirements that need to be satisfied while managing financial
resources in CareSouth Group care home.
In regulation to control and monitoring the financial resources. During managing the
financial resources in CareSouth Group, managers need regulatory requirement so that it reduces
the financial crime (Glasby, 2017). CareSouth Group needs to enhance the honesty, equality,
consumer protection, accountability and maintain the integrity within organisational context. In
health care sector, organisation should abide by all legislations, policies and procedures. All
these requirements are necessary regarding financial management. Moreover, they organise the
internal and external audit which help to identify the financial resources. In order to mitigate the
risk factor. They require adopting the tools to manage the commercial risk. CareSouth Group
needs to adopt effective training and session for financial department in order to meet the
objectives. Moreover, in order to meet the financial requirements of the company. Through
satisfying the needs of financial resources company needs to make sure their regulatory
requirements.
1.4 Evaluating the systems which managing the financial resources.
The system of managing the financial resources is very effective and efficient. They help
to manage the effective environment and have power to beat the competitor’s price. Besides, the
process of staff development is also helps to manage the financial resources (Hong, Siegel and
Ferris, 2014). Managing financial resources needs to be effective, cost efficient, creating system
in order to reduce the wastage management. With the help of reducing wastage activity it leads
to increase productivity in CareSouth Group. By the help of advanced systems, company make
new effective environment such as Auditing system, financial accounting, training and
development. Moreover, these evaluating systems help CareSouth Group to create new services
for services users and enhance the new ways to reduce the Dementia issues in the society. There
are some evaluating systems which help in managing the financial resources (Renz and Herman,
eds., 2016.).
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IT system is the most productive and flexible systems which carries all data safe and
secure. This system keeps the data processing, easy storage etc. with the help of information
technology CareSouth Group carries its function in more effective ways such as payment of
customers, electronic file transfer etc. besides, another system is Budgeting this helps CareSouth
Group to prevent over or unwanted wastage. The main objective of this system is to achieve the
budgeting target (Titman, Keown and Martin, 2017).
D1
According to my work as a manager, I need to focus on the technical field in order to
enhance the profitability level of CareSouth Group; this helps to enhance the opportunity for the
company. Drawback is that waste of resources which may lead unnecessary expenses (Torchia,
Calabrò and Morner, 2015). in terms to fail to adopt proper management skills, manager needs to
face loss and project inefficiency in project.
TASK 2
2.1 Discuss the diverse sources of income available to CareSouth Group in the financial year
2013/2014.
In health and care organisation, income sources are very much important and necessary,
in order to serve the best services to the customers or service users. Health care organisation
must expand its business activities in order to more growth. This helps to motivate the employees
in order to serve better services to the customers. Like, NHS collects their funding from
government. CareSouth Group income sources of 2013/2014 coming 16% from Domiciliary
Care, 81% from Residential Care or 3% from all other income (Wager, Lee and Glaser, 2017).
Overall, income of the CareSouth Group in 2013/2014 was £36.2 million. Income is the essential
source through which company manage their expenditure and all other expenses. CareSouth
Group takes their income source from these sources. Diverse source of income which is available
for the CareSouth group can easily adopt for their extra income. Moreover, it is the great
opportunity for the company to make better productive work. In other way it also helps to take
care about new income which is more productive and efficient. It will more productive and
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impression which makes another better work and impressive impression on company group.
Diverse income is the additional income which is productive for the company.
As according to the situation CareSouth needs to adopt some productive task for making
good skills and creates new some specific work. Along with that, they needs to enhance their
investors for their own development.
2.2 Analysing the factors that may influence the availability of financial resources in CareSouth
Group.
Every organisation and their environment objectives are different. Each health care
organisation has different policies and treatment services for the patients. For example,
CareSouth Group works with Alzheimer's society with the purpose of Dementia friendly projects
or organise Dementia awareness tea party etc. this is the overall objectives of the company
(Cascio, 2018). All these factor influence the availability of funds. CareSouth Group focus on
the Dementia patient’s private companies are not liable to entitle for government grants.
CareSouth Group arranges their funds availability from private institution, loans, voluntary
organisation. On the other side, financial availability is also influence by the staff training and
development session in order to enhance the skills or knowledge to assist patients. Along with
that, another influential factors are economic, legal and technological factors which may
influence the financial availability.
Financial resources might be get affect the overall business activities that provides the
best effective process making work. Very most clear thing that exchange the better things. Apart
from that, it makes the better changes. Moreover, these things and better objective goals, apart
from that, it makes that changes and that affect business organisation. Financial factors influence
office activities. This affect availability of resources and better objective goals.
M2
As per the findings CareSouth Group competitively CareSouth Group achieve less
income in 2013/14 as compare with 2012/13 36.2 million and 37.1 million respectively.
Company needs to look upon the wastage of funds (Hong, Siegel and Ferris, 2014). In order to
enhance their more income and energetic behaviour company needs to adopt more services in
order to fulfil service users needs and wants. Moreover, as per the down income CareSouth
group needs to acquire some new productive work and techniques. Besides, they also needs to
adopt some more channels through which they earn some more profit.
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D2
Being a manager in CareSouth Group care home, it is the responsivity of mine to take
steps in order to manage the financial resources and collect the best sources of funds to
implement the effective services.
2.3 Review different types of budget expenditure in CareSouth Group care home.'
Budget is the planning and forecasting plan in which company set the expenses in within
some important areas. It is based on the project turnover, revenue, resource amounts. Budget
plan is successful when at the end of financial year revenues are more than expenditure or
expenditure is less than income (Renz and Herman, eds., 2016.). Balancing budget is the position
in which income is equal to the expenditure. Moreover, budget is very helpful for the CareSouth
Group to encourage the manager, control on the resources and take step for achieving the budget
target in effective manner. This helps to reduce the waste and maintain the profitability. There
are some types of budget listing below:
Operational budget: Operational budget is focus on the operational activities or day to
day activity of the CareSouth Group. For CareSouth Group, it is important to manage the day to
day operation and maintain the availability of finance.
Cash Flow Budget: Cash flow statement guides about the cash inflow or cash outflow.
This budget helps CareSouth Group to take steps to control the cash outflow.
Capital Budget: capital budget aids to show the availability of capital for investments. It
must be according to the requirement (Titman, Keown and Martin, 2017).
M3
As per the above discussion, it can be concluded all budget types are equally useful for
CareSouth Group to make better performance. According to my prospective it has been said that,
budget are the overall, cost document under which all things are mentioned according to needs
and wants. Apart from that, company should needs to identify the cost according to needs and
wants and always perform better effective growth.
2.4 Evaluating how decision about expenditure made in CareSouth Group.
The main aim of CareSouth Group is to achieve the good investment returns by providing
effective services to the CareSouth Group needs for conducting some analysis to determine the
profitability in the company (Torchia, Calabrò and Morner, 2015). CareSouth Group expenditure
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plan is made on the basis of cost analysis to evaluate along with that, the financial expenditure
plan made on the basis of expenditure during the whole financial year. For example, CareSouth
Group overall expenditure in year 2013/14 was 33.1 comparatively in 2012/13 was 34. 8. They
incurred less expenditure in residential care as compared to 2012/13. Evaluation is the best
approach to make better decision making approach. This process helps to full fill service user
needs. Moreover, another factor which influence productive work. Moreover, this is the process
of working through company also take corrective action plan.
As according the scenario company requires the most essential part of the company in
order to make best target plans and approaches for their best performance.
TASK 3
3.1 assuming there was financial shortfall in CareSouth Group, how this situation could be
managed.
Financial shortfall arises when company fails to meet the objectives of specific targets.
There must be proper analysing to determine the actual issues. For managing the shortfalls
effectively, CareSouth Group needs to adopt some strategic ideas to reduce the conflicts (Renz
and Herman, eds., 2016.). Such as controlling financial resources, manage the cash flow process.
Credit facility management etc. Priority is the measure tool to reduce the shortfalls, gives priority
to those areas in which requirement is more. Virement is another measure tool which used
internally by the organisation to transfer the funds from departments (Renz and Herman, eds.,
2016). To manage financial growth or company stability CareSouth group requires to make
better decision making process. Besides, they also need to acquire the best impressive manner to
take care the needs of organisation. CareSouth also needs to adopt better techniques and
strategies to make productive growth.
3.2 explain the action plan for financial fraud in CareSouth Group
In order to safe the financial fraud being the manager it is the responsibility to committed
for unfair gain. CareSouth Group needs to follow the rules and regulation of HMRC in order to
safe the environment from fraud or loss. Action plan for financial fraud.
Prevention: CareSouth Group need to be conduct some plans in order to safe the future risk.
Monitor the execution plan to ensure the productivity. Follows all regulations and legislation of
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government. Give training and development to employees, avoid unnecessary wastage of funds.
Abide all contract and agreements etc.
Detection: Detection means remove ineffective activities from the organisation and implement
the new plans of effectiveness (Hong, Siegel and Ferris, 2014). This process helps the company
to focus on the core activities.
On the basis of given action plan above company needs to implement this process into
their daily activities. It helps to stable the growth and better decision making approach. Action
plan must be required in the company to review the self position in the market. To reduce
financial fraud. Manager requires to adopt some actions to protect company fraud.
3.3 Evaluate budget monitoring arrangement in CareSouth care home.
Budget monitoring procedures are needed to be measured to put all financial activities on
correct position. Budget monitoring evaluating plan needs to determine the issues and problems
in balance sheet. Being a manager in it is the responsibility to is able to check all inventories,
expenses stock for error (Renz and Herman, eds., 2016).
On the basis of my identification it has bee proved that business organisation needs to
acquire the best effective sources to arrange and adopt effective monitoring plan to make sure
better planning. All the departments are required to monitor actual activity to planned activity to
control their expenditure to ensure that it is in line with available funds. All the departments
should review the difference between actual and budgeted expenditure. In order to take the better
opportunity and growth. Budget monitoring process is like to build the new better opportunity
which brings new celebration and idea oriented task which helps to maintained better financial
resources.
TASK 4
4.1 identifying information required to make decision relation to CareSouth Group.
Decision making process is the biggest process which is taken by the higher authorities.
All the major policy making and strategic decision organised by the top level management,
senior management after the discussion with departmental heads. Top level management takes
all required decision making approach. For example, decision related to capital investment,
company performance and risk management in CareSouth Group is taken by the top faculties.
All required information. Moreover, another decision related to the risk management like how to
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control the ineffective risk etc (Glasby, 2017). To make better decision making manager requires
to collect actual functioning and company strength and weaknesses which is more productive
and efficient. It makes good ideas and fulfilling the business objectives. Such as current
situation, objectives methods which service providers adopt etc. as per the own judgement it has
been say that there are lots of information required to make proper decision making process.
4.2 Analyse the relationship between care services delivered and costs and expenditure.
In order to ensure the quality of care services needs to require a proper monitoring such
as safety needs of conducive environment. Service user happiness and comfort. Relationship
between the care services and cost benefits must be positive and effective. Pricing policies must
be according to the service users this showing the positive relationship between care services.
This maintenance is very important to manage the cost and expenditure. Besides another
department in the CareSouth Group which affected cost and expenditure is purchase department,
manager has duty to manage the all required material while purchasing (Renz and Herman, eds.,
2016).
Cost and expenditure both are the major resources of the organisation to make productive
changes. On the basis of analysis it has bee proved that, if company provides better services they
need to invest more on the development.
4.3 Evaluate financial consideration or impact on service users.
Based on the financial operational reviews of CareSouth Group, company needs to invest
good amount in order to maintain the quality staff. Like on employees or on staff give them
quality training in order to reduce employee turnover. This helps to enhance the motivation or
reduce the employee retention. This will give good impact on the services of users. They
enhance the treatment and satisfaction level of patient (Boulware and et.al., 2016).
Financial resources is very much required for the development of company structure. It
also helps to increase company losses and maintained good quality staff.
Finance is the backbone for the organisation. It helps to arrange different resources and
requirement to arrange better task for the organisation needs. Financial consideration helps to
arrange new sources and better objectives to full fill the company all requirement. For that
CareSouth needs to arrange more capital to full fill the better opportunity and growth.
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4.4 Recommendation in care service provided by CareSouth Group
As per the overall assignment, according to my views, CareSouth Group needs to
enhance their expenditure policy in order to meet the budget plan. Moreover, financial planning
of the company also based on the objectives. This is the good impact on the overall outcomes of
The company and helps to enhance the services of users (Glasby, 2017).
Along with that is also explains the importance aspect of the financial sector. It also
explains the importance of better management planning. CareSouth group is the organisation
which provides better supportive and effective management growth. Moreover, it will be the best
approachable and target market growth which provides all health care services to the services
users. It is the No profit organisation which works for providing services to needed persons. It
also provides various facilities by different ways such as from aunties, uncles, foster care,
residential care, disability services and family connections. In order to remove social cause
company also needs to acquire best services to remove social implications.
CONCLUSION
From the above report, it has been summarised that financial managing resources plays
very important role in the social health care organisation. CareSouth Group has been taken into
action in the whole report. Being a manager in the organisation, this discussed the types of
budgetary control and other different aspects of CareSouth Group. Overall, CareSouth Group
needs to maintain productive methods to manage their income and expenses.
Recommendation
NHS needs to acquire more fundings from different sources of income to introduce new
health care services. Moreover, it also requires making productive work environment to
introduce new services and growth. Moreover, another major steps has to taken by the company
is that, to measure the working quality provided to the service users.
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REFERENCES
Books and Journals:
Bekaert, G. and Hodrick, R., 2017. International financial management. Cambridge University
Press.
Blais, K., 2015. Professional nursing practice: Concepts and perspectives. Pearson.
Boulware, L. E. and et.al., 2016. Race and trust in the health care system. Public health reports.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Chartier, Y. ed., 2014. Safe management of wastes from health-care activities. World Health
Organization.
Drummond, M. F. and et.al., 2015. Methods for the economic evaluation of health care
programmes. Oxford university press.
Glasby, J., 2017. Understanding health and social care. Policy Press.
Hong, C. S., Siegel, A. L. and Ferris, T. G., 2014. Caring for high-need, high-cost patients: what
makes for a successful care management program. Issue Brief (Commonw Fund). 19(1).
p.9.
Renz, D. O. and Herman, R. D. eds., 2016. The Jossey-Bass handbook of nonprofit leadership
and management. John Wiley & Sons.
Titman, S., Keown, A. J. and Martin, J. D., 2017. Financial management: Principles and
applications. Pearson.
Torchia, M., Calabrò, A. and Morner, M., 2015. Public–private partnerships in the health care
sector: a systematic review of the literature. Public Management Review. 17(2). pp.236-
261.
Wager, K. A., Lee, F. W. and Glaser, J. P., 2017. Health care information systems: a practical
approach for health care management. John Wiley & Sons.
Online:
Important fundamental principles of costing. 2012. [Online]. Available through:
<http://www.preservearticles.com/2012051932672/5-important-fundamental-principles-of-
costing.html>.
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