Analysis of Care Home Expenditure, Fraud Detection and Prevention

This report delves into the financial management of care homes, specifically focusing on expenditure monitoring and fraud prevention. It outlines various methods for monitoring expenditures, including the use of spreadsheets, cash flow statements, and rigorous bookkeeping to identify and rectify financial shortfalls. Furthermore, the report addresses the crucial aspect of fraud detection, emphasizing the role of auditing in uncovering unethical practices and financial discrepancies. The report provides a detailed examination of the steps involved in identifying and addressing fraudulent activities, including the implementation of disciplinary measures. The referenced sources provide a comprehensive overview of financial resource management, planning, and the implications of accounting practices within the context of human resources and logistical business continuity.

TASK 3

3.1 Different ways to monitor care home expenditures
and shortfalls
John and Jill home care can adopt various measures to monitor it
expenditures for a financial year of the organization. Some of
these ways are described below briefly:
 Monitoring process will start with identification of deviation
to manage the shortfalls occurred in its expenditure.
 Then, the verification of expenses can be evaluated by
checking records maintained in spreadsheet software of the
company.
 Enterprise needs to consider vouchers and bills granted to it to
confirm the actual expenses incurred by them.

Conti...
 John and Jill can effectively mange and scrutinize the defects
and errors generated during various business dealings
through books of accounts.
 Also, the usage of cash flow statement will deeply describe
all receipts and expenditures of the organization that clarifies
the actual scenario of its overall profitability.
 Through cash flow statement, the accountant or the manger
is able to compare their expenses in the current year with
regards to the previous year outgo.

Conti...
 With the help of these records including vouchers, bills,
spreadsheets, book keeping entries and cash flow statement
the company is able to derive its downfalls or drawbacks.
These loopholes can be rectified by framing effective
strategies and policies to control their expenses.
 The care home needs to assess and monitor its expenses
regularly to attain profit maximization of the firm. These
periodical assessment should be performed in each and every
department of John and Jill company to make control over
the unnecessary expenditure.

3.2 Actions required to implement at the time of fraud
in the organization
 During any unlawful or unfair business activity the situation
of chaos and financial loss is created among John and Jill
business environment. These unethical frauds can be
monitors and rescued through stringent auditing system.
 Auditing is a process through which official inspection and
verification of transactions made in company's accounts.
 The business records and accounts are scrutinized and
evaluated to clarify at what place unlawful practice was
performed.
 Through this assessment the care home is able to fair view
the financial performance of the company.

Conti...
 One instance can explain the role of auditing to identify any
fraud in the business. Like an accountant intentionally
records that the petrol expenses were entered at a higher
value in comparison of the actual expenses accrued.
 As the book of accounts will be audited and rechecked again
by another accountant this default or unethical error will be
identified and evaluated by the original petrol bills.
 The balanced and transparent investigation of book of
accounts is necessary to identify this fraud and in addition
take various preventive measure to rescue such situations
again in the future.

Conti...
 Now, after identification of the fraud, John and Jill under its
jurisdiction will order punishment to the respective person.
The judgement will be communicated and documented
among the authorities and the fraudster. The punishment can
be in the form of termination or suspension order
implemented as soon as possible.

REFERENCES
Broadbent, M. and Cullen, J., 2012. Managing Financial Resources.
3rd ed. Routledge.
Overton, H. R., 2007. An Empirical Study of Financial Planning
Theory and Practice. ProQuest.
Ojha, D. and et.al., 2013. Impact of logistical business continuity
planning on operational capabilities and financial performance.
International Journal of Logistics Management. 24(2). pp.180–209.
Theeke, H. and Mitchell, J., B., 2008. Financial implications of
accounting for human resources using a liability model. Journal of
Human Resource Costing & Accounting. 12(2). pp.124-137.