[PDF] 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 Examining the costing principles and methods of business control system.........................1
1.2 Examining the information required to manage financial resource for CareTech Holdings
PLC in financial ending .............................................................................................................2
1.3 Explain the regulatory requirements for managing financial resources................................1
1.4 Evaluate systems for managing financial resources in a health or care organisation...........1
TASK 2............................................................................................................................................2
2.1 The diverse sources of income that may be encountered in health and social care..............2
2.2 The factors that may influence the availability of financial resources in health and social
care organisations........................................................................................................................3
2.3 Different types of budget expenditure in health and social care organisations.....................3
2.4 How decisions about expenditure are made within a health or social care organisation.....3
TASK 3............................................................................................................................................4
3.1 Assuming there was financial shortfall in care tech, explain how this situation could be
managed......................................................................................................................................4
3.2 What action you would take if you suspect occurrence of financial fraud in organisation. .5
3.3 Evaluate budget monitoring arrangements in care tech plc..................................................5
TASK 4............................................................................................................................................6
4. 1 Identify information required to make financial decision relating to care tech plc ............6
4. 2 Analyse the relationship between care service delivered ....................................................6
4. 3 Evaluate how financial consideration impact upon a service .............................................6
4.4 Suggest ways to improve the care service provided by care tech plc...................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Health and social care can be managed through the financial resources and to manage the
financial resources corporations need a professional person who have knowledge in this field. It
is necessary to provide deep examination of the system which is used in the health care industry
to provide effective financial and resource management. In this report chosen organisation is
CareTech Holding PLC which is a leading UK provider of specialist social care services. This
report is aimed to demonstrate the understanding and knowledge in planning and managing
budget. There are following topics are covered in this report such as: to understand how systems
are used to manage financial resources in health and social care, role and planning and
management to make budgets, importance of monitoring budget expenditure. Apart from this it
also discuss about understand how systems and process for managing financial resources
influence health and social care services.
TASK 1
1.1 Examining the costing principles and methods of business control system
CareTech Holdings PLC termed as a health care group engaging in rendering standard
and valuable services to society or needy persons. This entity presently renders the services over
in 190 countries and serving around 15 million customers across the entire world. As a private
limited company, the integral part of the entity is consider as that the entity operates without the
shareholders so any amount of profit earned by entity is require to use for rendering the health
and social care services and for its more betterment. It formulate specific identified objectives for
business entity. The entity adapts the crucial and effective techniques for betterment of finance
management of entity. For managing the costs, the entity adapts the electronic software and
customised techniques for the purpose of recording their daily business activities. It would be
beneficial for entity to quantify and observe the actual costs incurred by entity during the
accounting period. With the help of effective costing methods, as the entity can invest in new
franchise or can diversify the business and can maximise their revenues as well as profits
(Wheeler and Carey, 2013).
Costing principles: It can be termed as the as one of the integrated policies specialized
only for the accounting purpose. These principles requires that the assets are needed to record at
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their book value, when the time assets are taken. Furthermore, It aid that the assets acquired by
the entity must be recorded at their acquisition cost. Some important principles are:
 Cost is basically associated with its cause: It is observed that the cost are possibly
associated with its to it causes. The actual costs which are incurred and determined
accordance with the nature or resource allocated to the business concern.
 Abnormal costs are evaluated in costing: it refers to the costs incurred due to the
occurrence of the uncertainty or contingency such as loss by fire, riot, theft or any
accidents are considered as the abnormal costs. It is not associated with production or any
other business activities.
 Incurred costs are only to be recorded: the costs which are incurred actually are required
to record and the anticipated or expected costs are not to be recorded.
 Past costs are not taken into consideration: the costs are incurred in past accounting
period are not be recorded in current accounting period as due to the matching concept of
accounting (Hacker and Walker, 2013).
 Keeping accounts for cost which is based on double entry principles: The ledger balance
and cost control accounts must be prepared according to dual entry system.
Business control system: This system is utilize to quantify the cost, income, profit
benefits analysis, expenses, budget etc. which are needed to operates new venture, capital
needed, cost control and other aspects which are related with monitoring the financial data within
organisations.
Methods of business control system:
 Visual control: It pertain of checklists, scorecard and budgets which are beneficiary for
monitoring right things occurring in business entity.
 Procedures control: It comprises with the systematic contribution of two parties in flow
of money, it is effective in case of securing results arises in business entity.
 Embedded control: It is concerned with the all relevant aspects which are associated with
standardised list of contract, automatically backup of patient details and necessary health-
care requirement.
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