Financial Shortfalls and Fraud in Healthcare Sector (HSC)

This report provides an analysis of financial shortfalls and fraud detection within the Healthcare Sector (HSC). It explores key strategies for managing financial shortfalls, including the use of virement, reserve funds, and alternative external income. The report also emphasizes the importance of effective human resource management to reduce staff costs and improve financial outcomes. Furthermore, the report delves into the methods for fraud detection within the HSC, emphasizing the significance of accurate financial reporting, reliability, validity, and sufficiency of financial statements. It also highlights the role of independent auditors and the identification of potential fraud through the analysis of unrecorded transactions and irregularities in the business revenues. The report concludes by referencing relevant literature and summarizing the key takeaways for effective financial management and fraud prevention in the HSC.

MFR in HSC (TASK 3)

Financial shortfalls
Shortfall: Excess of estimated expenditures on revenues is
called financial shortfalls.
 Priorities: Income can be allocated initially to prioritize
operations that gains most importance and there after, unds
will be allocated to other operations.
 Virement: It allows transfer of unspent appropriation to
another within same head so that manager will be able to
move funds without affecting bottom line.
 Reserve funds: This are the total funds that have been kept
aside to meet any unexpected expenditure that may arise in
future. Henceforth, it will assist managers to manage
shortfalls in HSC.

Contd.
 Alternative external income: Through receiving external
incomes through grants, donations, subsidies and subscription
also helps to enlarge revenues and reduce shortfalls.
 Implication for individuals within the service: Managing
human resource in the HSC, is also an effective way to
manage shortfalls as it will lead to reduce staff cost and
results in high surplus

Suspected fraud
Analysis of reported financial information is the best way to
detect fraud in the business.
 Reliability: Reliability can be measured by checking that all
the financial transactions are recorded correctly or not on the
basis of accounting policies and procedure. It is because
financial statement based on inaccurate recordings will
provide misinformation hence, can be helpful for fraud
detection.
 Validity: It is necessary that all the prepared financial
statements exhibit true and fair profitability and financial
position. Transactions must be recorded accurately and
authorization.

Contd.
 Sufficiency: All the business affairs should be properly
summarized in the financial statements. Henceforth, checking of
financial accounts through documents will assist managers to
determine fraud by identification of unrecorded transactions.
 Reporting: After the preparation, it must be audited by an
independent auditor. Henceforth, auditor's qualified report also
help to determine incurred fraud.
 Evidence of fraud: For instance, unrecorded cash income,
embezzlement of business revenues, stock and others, high
goods availability in the warehouse but recorded in less quantity
are the evidence of fraud that helps to determine incurred fraud.

Refrences
Mortimer, K. and et.al., 2015. Improving access to effective care for
people with chronic respiratory symptoms in low and middle income
countries. In BMC Proceedings. BioMed Central Ltd.
Munizza, C. and et.al., 2015. CMHC adherence to National Mental
Health Plan standards in Italy: a survey 30 years after national reform
law. Psychiatric services.
Theologis, A.A. and et.al., 2016. The Economic Impact of Revision
Surgery for Proximal Junctional Failure after Adult Spinal Deformity
Surgery: A Cost Analysis of 57 Operations in A 10-Year Experience at
a Major Deformity Center. Spine.

Thank You!