Tender Processes and Financial Decisions

This assignment explores the critical aspects of successful tender processes, emphasizing the need for careful preparation to ensure only eligible candidates are selected. It also delves into the significance of robust financial decision-making frameworks used by managers to make informed business choices. The analysis draws upon research and data from sources such as the National Healthcare Safety Network (NHSN) and emphasizes the practical implications of these concepts in real-world scenarios.

MANAGING FINANCE IN THE
PUBLIC SECTOR

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Ways in which NHS is funded and operated..........................................................................3
How organization is operated.................................................................................................3
Information required to report................................................................................................4
TASK 2............................................................................................................................................4
(A) Analyzing of the financial information available and how it meets accountability
requirements...........................................................................................................................4
(B) Ways in which financial monitoring and control are achieved........................................4
(C) Analyzing the financial decision making process by using examples to explain the process
................................................................................................................................................5
TASK 3............................................................................................................................................5
(A) Tender process of NHS....................................................................................................5
(b) Designing criteria and scoring system for the evaluation of tenders and explaining how
this should be used..................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In this report, NHS is taken into consideration as a public organization and it is evaluated
in terms of fund sources and operations. Financial statements of NHS are also evaluated and
comments are done on the financial monitoring and control. At the end of report, tender process
is discussed and scoring system is designed for the organization.
TASK 1
Ways in which NHS is funded and operated
NHS is chiefly funded from national insurance and general taxation amount. Little
amount of fund also comes from care services like optical care, prescriptions and dental care.
There are many sources of funding for the NHS England and tax that people pay is a major
source of finance for this body (Edwards and et.al., 2009). Every year, budget of NHS England is
prepared and amount for same is largely funded by the tax revenue that is largely paid by the
citizens and businesses to the government. From April 2013, NHS budget is largely in the hand
of new body which is NHS England. Acute services and community care are commissioned by
the local budgeting groups that are led by GP. Other sources of income are as follows. Prescription fee- NHS charges prescription fee from patients and its rate is £8.20 but this
rate is different in Scotland, Wales and Northern Ireland. Hence, this is one of major
sources of income for the firm.
 NHS dentistry- NHS dentistry charge is £18.80 for an examination, £50.30 for a filling
and £222.50 for more complex procedures. This is also one of the main sources of getting
fund. Limitation of such funding is that if tax rates will be reduced then NHS will have
less amount of fund. Hence, its service quality will become poor if budget will be
reduced.
How organization is operated
Organization is operated by NHS England board. There are many types of Directors in
NHS like commissioning and operations directorate, strategy directorate, finance directorate and
nursing directorate (Kallen and et.al., 2010). NHS England is divided into different areas like
North region, Middle land and East region, South region and London region etc. Operation
directorate is divided into three parts like NHS interim management and support, NHS
improving quality as well as NHS leadership academy. Hence, it can be said that for different

operations, there are different directorate and NHS is geographically divided into various parts.
There are separate management of NHS established in these geographic areas. Manages of these
NHS division work under mentioned directorate. In this way, entire NHS is operated in England.
Information required to report
NHS needs to report its financial information to the governing bodies or government
(Klevens and et.al., 2007). In case of financial information, data related to all the sources of
income and expenses is necessary to be made available by NHS. Hence, these are the
information that NHS needs to report to the government.
TASK 2
(A) Analyzing of the financial information available and how it meets accountability
requirements
By analyzing financial information, it is identified that NHS expenses are divided into
two categories namely administration and program expenditure. It can be seen from the financial
statement that net administration expenses of NHS has declined in FY 2015 relative to FY 2014.
On the other hand, its net operating expenditure has increased in FY 2015 relative to FY 2014.
Overall expenditure of NHS has increased in FY 2015 relative to FY 2014. From programs NHS
earns good amount of revenue. Hence, it can be said that relative to previous years, expenditure
of NHS has elevated in 2015. Financial position of NHS has also become stronger in FY 2015
relative to FY 2014. NHS is meeting its accountability requirements by providing clear
information about the expenses that it makes in its operations. It runs health care programs time
to time and also focuses to meet administration expenses. All these things are reported in the
annual report and in this way, NHS meets its accountability requirements.
(B) Ways in which financial monitoring and control are achieved
Financial monitoring and control are done in NHS through budgets. NHS receives
budgeted amount from National insurance and general taxation amount. It has to meet all its
expenses within these budgets (Epstein and et.al., 2016). Managers of NHS England monitor
expenses on time and time and make sure that all the expenses are made within determined
boundaries. In this way, they conduct financial monitoring and control. Financial monitoring is
also done by doing audit of NHS accounts. Audit is conducted on the annual basis. On the basis
of audit, it is ensured that no manipulation of money is done at NHS and all the things are going

on systematically. Hence, by doing audit, financial and accounting system of the organization are
monitored. In order to do financial monitoring in a proper way, managers of NHS must review
budget monthly wise and by doing so, they will be able to make effective control on elevation of
cost. Hence, these are the ways that are adopted for financial monitoring and control in NHS.
(C) Analyzing the financial decision making process by using examples to explain the process
Following are the steps that are followed for analyzing financial decision making process. Information- Before conducting any program for health care services, NHS collects
information about the type of services that they need to provide to the people and cost
that will incur while rendering services (Patel and et.al., 2016). This helps NHS in
deciding whether service expenses are in its budget or not. Decision making- On the basis of evaluating information, NHS identifies possible
changes that may take place in its cash flows. If there will be positive changes in the cash
flows and all expenses will be in budget then NHS will decide to conduct a health care
program. Implementation of decision- After taking decision to launch health care program, same
will be implemented by NHS and in this regard, it will determine amount of expenses for
each activity separately. In this way, NHS will make effective use of cash.
 Results- After successful implementation of activity, NHS will compute actual expenses
that are made during the program (Lyman and et.al., 2015). Same amount will be
compared to the budgeted amount of program. If there will be negative deviation then
managers will take some cost control decisions.
TASK 3
(A) Tender process of NHS
Tender process for NHS is given below.
Assessing quality
 Pre-tender checks- In this stage, those who enter in tender will submit their checks to
NHS (Hidron. and et.al., 2008).
 Finding a tender- NHS will receive a tender with check in this stage.
 Evaluating tender document- After receiving tender from all the candidates, same are
evaluated by the commissioner to eliminate non-eligible candidates.

 Expression of interest- In this stage, commissioner will select some of tenders for
further stages. Expression of interest forms- Relevant forms will be sent to the candidates who have
cleared the stage of assessing quality.
Submission of the pre- qualification questionnaire
 Pre-qualification questionnaire- A questionnaire will be given to the selected
candidates in order to select eligible person who must receive the tender of NHS. Declaration by commissioner- On the basis of above stage, commissioner will declare
an individual name who win a tender in above step.
Invitation to tender
 Responding to invitation to tender- Winner will receive invitation to tender and he may
express his interest in the tender of NHS. Commissioner evaluation of invitation to tender- Commissioner will receive invitation
to tender and he will evaluate same before giving tender to the selected candidate.
Final interview and presentation
 Meeting the commissioner- In this stage, selected candidate will meet commissioner and
discussion will be carried out on tender (Understanding trend evaluation criteria, 2016). Post tender interviews- Before giving tender, final interview of the candidate will be
taken to make sure that tender is giving to the right person.
Contact award
In this stage, tender will be finally given to the selected candidate.
(b) Designing criteria and scoring system for the evaluation of tenders and explaining how this
should be used
Scoring “Non-Price” Criteria
Evaluation procedures is explained below.
1. First of all, some of the non-price criteria will be determined like firm experience and
gentleman capability. Individual scores will be given to each non-price criteria and all will be
added back. Score from 0 (poor) to 10 (excellent) will be given to each criteria.
2. For each non-price criteria, weight will be given to the individual score as per the pre-
determined weightings. Weighted score will be computed by multiplying the weight with
score. Weighted score for tender 1 and criteria 1 will be computed as 9 x 20% = 1.80.

3. In this step, addition of non-price scores for tender will be normalized to 10.
4. In last second step, given formula will be applied to normalise the non-price scores:
= Sum of non-price score for each tender x 10
Highest sum of non-price scores
5. Finally, score will be adjusted for the aggregate weighting of all the non-price criteria to
obtain the overall weighted non-price score.
CONCLUSION
On the basis of above discussion, it has been concluded that tender process must be
cautiously prepared by an organization to make sure that only eligible candidate will get the
same. It has also been evaluated that managers of the firm must use specific process of financial
decision making for taking good business decisions.

REFERENCES
Books & journals
Edwards, J.R. and et.al., 2009. National Healthcare Safety Network (NHSN) report: data
summary for 2006 through 2008, issued December 2009. American journal of infection
control. 37(10). pp.783-805.
Epstein, L. and et.al., 2016. Mucosal Barrier Injury Laboratory-Confirmed Bloodstream
Infections (MBI-LCBI): Descriptive Analysis of Data Reported to National Healthcare
Safety Network (NHSN), 2013. Infection Control & Hospital Epidemiology. 37(01).
pp.2-7.
Hidron, A.I. and et.al., 2008. National Healthcare Safety Network Team; Participating National
Healthcare Safety Network Facilities. NHSN annual update: antimicrobial-resistant
pathogens associated with healthcare-associated infections: annual summary of data
reported to the National Healthcare Safety Network at the Centers for Disease Control
and Prevention, 2006-2007. Infect Control Hosp Epidemiol. 29(11). pp.996-1011.
Kallen, A.J. and et.al., 2010. Multidrug resistance among Gram‐negative pathogens that caused
healthcare‐associated infections reported to the National Healthcare Safety Network,
2006–2008. Infection control and hospital epidemiology. 31(5). pp.528-531.
Klevens, R.M. and et.al., 2007, December. Dialysis Surveillance Report: National Healthcare
Safety Network (NHSN)-data summary for 2006. In Seminars in dialysis. 21(1). pp.24-
28.
Lyman, M. and et.al., 2015, December. 298Catheter-Associated Urinary Tract Infections
Attributed to Yeast Reported to the Centers for Disease Control and Prevention's National
Healthcare Safety Network, 2014. In Open Forum Infectious Diseases (Vol. 2, No. suppl
1, pp. S125-S125). Oxford University Press.
Patel, P.R. and et.al., 2016. Dialysis Event Surveillance Report: National Healthcare Safety
Network data summary, January 2007 through April 2011. American Journal of Infection
Control.
Online
Understanding trend evaluation criteria, 2016. [Online]. Available through: <
http://www.zemaitis-uk.com/tender-evaluation-criteria/>. [Accessed on 21st May 2016].