Project Report On Financial Management
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Added on 2020-02-03
Project Report On Financial Management
Added on 2020-02-03
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Table of ContentsINTRODUCTION.....................................................................................................................................3Part 1.....................................................................................................................................................31.1 Explanation of the principles of costing and business control systems......................................31.2 Identification of information needed to manage financial resources.........................................41.3 Explanation of regulatory requirement for managing financial resources..................................41.4 Evaluation of the system for managing financial resources in the health and care organisation..........................................................................................................................................................52.1 Discussion on the various sources of income.............................................................................62.2 Components that can influence the income of the organisation................................................62.3 Explanation of various budget expenditures..............................................................................72.4 Evaluation of the approaches that may be used at various levels of the develop and promote effective team working.....................................................................................................................8PART 2...................................................................................................................................................8a).......................................................................................................................................................83.1 Management of financial shortfalls............................................................................................83.2 What kind of action can be taken in the event of suspected fraud............................................83.3 Budget monitoring system..........................................................................................................94.1 Sources of information...............................................................................................................94.2 Analysis of the relationship between cost and expenditures.....................................................94.3 Evaluation of financial considerations impact upon a service upon a service users.................104.4 Improvement of the company expenditures............................................................................10CONCLUSIONS.....................................................................................................................................10
INTRODUCTIONIn every business organisation, finance is very essential part through which business Activities and function carried out. In the absence of proper finance, corporation cannot survive its business operation. Financial management is a combination of various functions such as planning, directing, organising and controlling of various financial activities. In order to manage the financial activities, finance manager is highly responsible to carried out the practices and planning of finance (Abraham, Deo and Irvine, 2008). The major objective of financial management is to supply maximum return to the owner to the corporation on its investment. The following project report provides the depth understanding about the financialmanagement and also provides the knowledge of how to use the financial in the business organisation so as desired objective can attain within a specific time as well as by sufficient financial resources. In addition to this, various principles of costing and business control system has also addressed in this report. Furthermore, various kinds of budget expenditure and their evaluation has also discussed in the project. In this diverse source of income that may be encountered in health and social carte organisation has also studied. The major objective of this report is to understand the financial management in the context of Silloth Nursing and Residential care home.Part 1a)1.1 Explanation of the principles of costing and business control systemsSilloth Nursing and Residential care home is a nursing of the charity which is developed to the management committee which can have 16 members. The major objective of charity as set out its trust deed are that the home should be used for the purpose of a sanatorium for the use of the native of either of the former countries of Cumberland and Westmorland and other. The Silloth have main aim is to providing post operative convalescence, short and long stay nursing and residential care. In order to attain this objective, faineance manager should have consider the various activities and practices of fiancé through which it can survive smooth functioning. In this manner, management of cost and budgeting is very important (Bachelier, 2011) The cost principle is one of the basis underlying guideline in accounting. It is also known as the historical cost principle. In other word it can be said that the accounting guideline requiring in the account and on the financial statement to be the actual cost rather than the current value. There are four major fundamentalprinciples of costing which have to consider by the finance manager of the Sillloth Nursing and Residential acre home. These principles are as follows-Cost is always related to its cause- According to this principle, the figure of costs are collected and analysed according to the nature and are allocated on the basis of cause relationship.Abnormal costs are charged in costing- A cost incurred to meet the loss by fire, riot and theft is known as abnormal cost. This cost is not charged to production as it has
nothing to do with production part. The normal cost incidental to production or service is charged to cost canters and not the abnormal ones.Cost is charged after it is incurred- If the cost incurred then it is considered no cost and it can not charged to a cost centre. For example, if normal loss or wastage is to be borne by that unit only where loss has incurred (Baker and Powell, 2009) Such kind of loss is not imposed on those units which are yet to pass or which are yet to come for production.Keeping of account for cost is also based on double entry principles- The cost ledger and other cost control accounts are kept on the double entry principles. The same principles is also adopted in financial accounting.Business control systemBusiness control system is a procedure designed and established to check, record, regulate, supervise, authenticate and restrict, the access to an assets, resources or system. In a simple word it can be said that it is a system which gathers and uses information to evaluate the performance of various organisational resources like human, physical, and financial and also the corporation as a whole in light of the business strategies pursued. Business control systemis a technique to assist management for steering an organisational towards its strategic objectives and competitive advantages.1.2 Identification of information needed to manage financial resourcesIn order to manage the financial resources, there is very essential to acquire and collect the information in the organisation. Financial management is more than keeping accounting records. It is an essential part of the organisational management and cannot seen as a separatetask to be left to finance staff or the honorary treasure.(Bennouna and et.al., 2010) The information required in the management of financial resources culminates from the corporation meeting its requirements. Organisational requirement vary from operational activities like auditing. These organisational activities determines the allocation of financial resources for their completions. This kinds of data will be acquired through resultant figures from the inventories maintained by an organisation for instance budget, financial statements, operational activities, income statements, cash books and other cost activities within the organisation. Corporation get their information maintains information such as human capital, working capital and debts.1.3 Explanation of regulatory requirement for managing financial resourcesIn every business organisation, there are some kinds of regulatory body which corporation have to adopt their rules and regulations. These regulatory must apply for guarantee the success of that company. This is very important regulatory body in UK which force all health care settings to provide quality, effective and compassionate health services and ensure that there is constant improvement in healthy care services delivery. It monitors the operation of health and social care setting and regulate the quality of their services. Following are some regulatory body which provide the protection and security to the servicesand practices of healt care organisation-
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