Report: Managing Financial Resources in Health & Social Care Context

This report delves into the critical aspects of managing financial resources within the health and social care sector, focusing on the Care South Group. It begins by outlining the fundamental principles of costing and business control systems, emphasizing the importance of SMART objectives, software utilization, and income statement analysis. The report then explores the diverse sources of income for care homes, including patient fees, sales of healthcare facilities, voluntary organizations, government funding, and private health insurance. Factors influencing the availability of financial resources, such as government spending, fiscal policy, social deprivation indices, and private finance, are also examined. Furthermore, the report details different types of budget expenditure, including cost centers, project management budgets, and outsourcing strategies, and discusses the decision-making process regarding expenditures, including cost-benefit analysis and the elimination of emotionalism. The report also addresses the management of financial shortfalls, actions to be taken in cases of suspected fraud, and budget monitoring arrangements. Finally, it covers the information required for financial decisions and explores the relationship between health and social care services, costs, and expenditure, emphasizing how financial considerations impact service users and how financial systems can be improved.

Managing financial resources
in Health and Social care

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Principles of costing and business control system................................................................1
1.2 Information needed to manage financial resources...............................................................2
1.3 Regulatory requirement need to be satisfied while managing financial resources...............2
1.4 & D1 System for managing financial resources...................................................................2
TASK 2............................................................................................................................................3
2.1 Diverse sources of income....................................................................................................3
2.2 Factors that may influence availability of financial resources..............................................4
2.3 & M3 Different type of budget expenditure.........................................................................4
2.4 & D1 Decision about expenditure.........................................................................................5
TASK 3............................................................................................................................................6
3.1 Financial shortfall can be managed.......................................................................................6
3.2 Actions to be taken in the event of suspected fraud..............................................................6
3.3, M1 & D3 Budget monitoring arrangements........................................................................7
TASK 4............................................................................................................................................8
4.1 Information required to make financial decision..................................................................8
4.2 & D2 Relationship between health and social care service delivered, costs and expenditure
.....................................................................................................................................................8
4.3 & M1 Financial considerations impact upon a service user.................................................9
4.4 & D3 Ways to improve HSC services through changes to financial systems and processes
.....................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Financial resources are concern with monetary policy of business in which managers of a
company estimate about investment and expenditure policy in an appropriate frame. It is
essential in health and social care sector to manage finance properly so that better and effective
services lead to get deliver (Nelson and Staggers, 2016). This project is based on managing
financial resources in health and social care context Care South Group whom have to utilise all
kind of money in a suitable manner so that effective and absolute gain become possible. In this
assessment, there will be various systems get evaluated which support in managing financial
resources in health and social care context so that optimum utilisation of resources get done as
well as better and suitable gain get enhance. Moreover, planning play an appropriate and suitable
role in health and social care budget through which chances of better and effective use of money
could be done. Although, all expenses should have to get done in a define frame through which
ultimate response lead to carried down. All these things will going to articulate through this
project by considering health and social care association.
TASK 1
1.1 Principles of costing and business control system
In financial terms, every consideration have some basic principles which need to get
followed up in a better and suitable manner (Cascio, 2018). It is essential in health and social
care organisation to manage their financial resources properly so that better and suitable gain
become possible. In this consideration, costing and business control system need to implement
properly and effectively so that efficient and effective results could be underpin. Thus, several
consideration for Care South Group stated as follow:
 Initially business need to frame such objectives and targets which are specific in nature
and based on define time limit. It is essential to understand SMART acronym through
which cost need to underpin properly as per the investment so that appropriate
management of resources get done
 Business need to use such software which simplifies and stratified effectively about cost
concept so that chances of better and suitable gain become possible.
Along with this, Care South Group have to determine and analyse the income statement properly
through which they lead to facilitate appropriate control on working (Cotlear and et. al., 2015).
Thus, business control system signifies about use of various essential tools properly. Moreover,
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cost benefit analysis will lead to support to underpin that by following and managing resources,
profit will get estimated or not.
1.2 Information needed to manage financial resources
In segment of health and social care, they need proper finance so that they will pay
salaries to staff, buy equipments, beds, medicines and other essential things. Along with, they
have to do effective planning so that entire resources will be used by them effectually. Care
homes will gain income by the patients as they pay fees to access service. Henceforth, if
organisation is using accurate accounting methodologies then they will be able to manage entire
financial resources significantly (Chartier, 2014).
It is essential to manage cost of business in an appropriate manner. This will be
associated with many factors, such as people, management, consumable products, finance and
many more. Along with, it is required to evaluate income statements as this will also affected by
internal and external components, for instance, alterations in policy, competition, legal needs and
many others. By getting all these data and information, superior enable to manage entire
financial resources effectively as well as efficiently.
1.3 Regulatory requirement need to be satisfied while managing financial resources
In sector of health and social care, it is must for manager to avoid unnecessary things
which will harm patients. Many authorities will prepare develop some regulations or rules in this
context (Torchia, Calabrò and Morner, 2015). One of them is known as Care Quality
Commission, which aid to investigate that Care South Group is accomplishing their work as per
set standards or not. If there is any problem is identified then, it is require to make persons more
aware. Therefore, individuals will choose best firm for health services.
Rather than this, there is an accounting standard GAAP, which help HSC to record
financial data in an effective manner. As a result, organisation will prepare fair and transparent
books of accounts. Henceforth, it is required for superior to do each and everything in a ethical
manner.
1.4 & D1 System for managing financial resources
There are some steps which need to be follow to by care home so that they will be able to
manage financial resources effectually.
Source of Income: To manage resources it is mandatory that management must consider
all areas from where finance are coming in Care South Grout (Hong, Siegel and Ferris, 2014).
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How Budgets are set: This is a second step in which finance head finds all patterns along
with tools and techniques that are to be used for setting budget in effective manner so that it can
give better results to firm and also increases appropriateness of handling patients and other
peoples like care home members.
Administration of budgets: This phase includes that where elements of budget could be
put to enhance service quality herewith improvising profitability of firm by not touching capacity
of current equipments.
Cost Centres: This heading addresses those areas where health and social group is
presenting more focus so that they could b e reduced without affecting productivity.
Accountabilities: Managers pay attention of feasibility of budget by setting standards or
by comparing current budget from previous (Macinko and Harris, 2015).
Audit Requirements: This sections audit requirements which means what are the
segments and headings that can be reduced so that expenditure could be diminished.
TASK 2
2.1 Diverse sources of income
There are various kinds of sources which are related to Care South group care home's
income which use by them so that they will be able to meet their operating expenditures
Sale of drugs and other health care facilities: Organisation will maximize profits through
selling those facilities which are connected with health care. It will assist them in improvisation
of revenues so that they will give salary to staff members and in addition buy extra items which
will be used by them in health care sector.
Voluntary organisation: There are many charity firms which will cater finance to an
enterprise in term of donation. Care South group will utilize this amount as an income source and
therefore, they will be able to pay entire expenditure, purchase requisite equipment and extra
facilities associated with health care (Mossialos and et. al., 2015).
National and local government will provide some fund to care home and thus, they will
improve the health service provisions. Finance will be used by Care South group in their
distinctive projects.
Private health insurance is also considered as an income source and this will be acquired
by the firm if patients are getting medical aid and amount is paid by the insurance organisations.
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Henceforth, it is a significant income source as insurance firm is providing their services to their
users.
Hence, it has been examined that income of Care South group is enhancing so that they
will be able to buy essential equipment for them (Maier, Meyer and Steinbereithner, 2016).
2.2 Factors that may influence availability of financial resources
Many elements will provide impact to the availability of financial resources which are
stated as beneath:
Government spending: Regulatory bodies will cater finance to care homes so that they
will provide services proficiently. Budget for this is associated with their profits as well as
expenses and this will alter each year.
Fiscal policy: It is formulated by ministry body and as indicated by this, amount will be
assigned to care homes as per their expenditures and profits of state. It will aid to help
enhancement and development to regime.
Social deprivation index: It portrays circumstance of an individual which will developed
because of some social activities. It is much wide aspect so that it will affect highly to
availability of financial resources. There are some deprived area of United Kingdom will gain
attention of large part of government determination, such as tendering, Thanet, Blackpool etc.
Private finance: Rather than regulatory body, there are some private fund source which
will render finance to Care South group (Weaver and et. al., 2014).
There are some finding sources which are sated as follow. Donation through various
businessmen, will give finance to care home through contact their owner. Acquirement of fund
through agent, who will acquire finance for NPOs.
2.3 & M3 Different type of budget expenditure
There are several kinds of budget which will implement for expenses of Care South
group, discussed as beneath:
Cost Centre: This kind of division exists in an enterprise so that efficiency of items will
get enhanced. Henceforth, this will either in a direct or indirect manner help care home in
improvisation of profits. For instance: research and development. In simple words, profit centres
help an organisation to increase their revenues like manufacturing unit (Mittal and Griskevicius,
2016).
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Project management budgets: As indicated by this, activities are needed to be decided by
the manager for group and they will attain coveted targets within certain period of time. This will
comprise some essential factors which are stated as follow. The base cost estimate defines
estimation of cost of distinctive expenses. Contingency portrays assigning fund to determined
risk. Management reserve is developed for occurrence if any uncertain case. It needs to be
formulated according to the risk element. If there is high risk then, there will be more amount in
this.
Outsourcing: This is much associated with procedure of business or any agreement which
is done by external agency. Therefore, public services defines, give control of firm to another
association who is earning revenues effectually. There are many functions which will be
outsourced by Care South-
Provide training to staff or nurses through medical experts. It will help association to
deduct unwanted expenditures (Bloom and et. al., 2015).
There are some specialist professional which will assist care home to decrease entire cost.
2.4 & D1 Decision about expenditure
Fundamental purpose of each and every kind of company is to gain appropriate return of
their investments. In context of Care South group, they need to do some examination so that they
will identify profits as well as viability of these sort of projects. For above stated aim, they need
to consider some factors which will help them to take judgement in relation to expenses. This
will comprise: priority, environment evaluation, cost benefits, accountabilities, adjusting
strategies, emotionalism and many others.
Cost benefit analysis is considered as a process which will be adopt by Care South group
and they will be able to analyse entire expenses connected with project. Along with, they will
examine pay back period, return on investment etc. before doing investment (Patel and et. al.,
2016).
Emotionalism need to be eliminated at the time of decision making procedure in relation
to expenditure. It is must for care homes to decide limit for expenses; as a result, they will be
able to avoid extra disbursements. This will assist firm to evaluate and control budget timely;
thus, they will attain desired objectives which help them into their survival of longer duration.
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Adjusting strategy is significant for an affiliation as this will help them to examine
investment's actual performance. Therefore, they will see that decided goals are meaningful or
not.
In 2013/14 their expenditure is £5.2 in Domiciliary care, £2.9 in Support cost, £.08
interest pay on back loan, £1.1 extra cost, £0.2 Interest on pension.
TASK 3
3.1 Financial shortfall can be managed
As stated by Bohmer (2016), Financial shortfall will occur if company is not able to
accomplish their entire activities or targets within certain period of time. This will be persistent
or temporary in nature. Therefore, it is required for care home to determine and manage it in an
appropriate manner.
In context of Care South group, they have to manage it effectually and for this, they will
utilize some measures. This will be priority, manage cash flow, credit facility, Virement, control
financial resources and many others.
It is necessary for manager to prioritise each and every thing in a systematic manner. This
will help them to identifying profits as well as viability of such sort of project. Therefore, they
will concentrate more on this so that they will attain coveted targets timely and obviate shortfall.
Rather than this, care home will utilize procedure of Virement into intrinsic environment; thus,
they will transfer finance from division (Virement, 2018).
To reduce shortfall in firm, manager needs to handle each type circumstances adequately.
It is required for them to use available resources significantly. They need to analyse market so
that they will manage expenses (Entwistle, Cribb and Owens, 2018). Along with, it is required
for them to make proper control over credits, drafts, liability as it helps them to maintain
revenues. Company will take loans for short period of time so that they will make their equity
much stronger. It is essential for them to manage inflow as well as outflow of cash.
3.2 Actions to be taken in the event of suspected fraud
Fraud is considered as a deliberate act which is committed to acquire unfair profit. For
instance of company is not disclosing their financial statements to HMRC then, there will be
circumstances of fraud over there. To detect it, many kinds of actions will be taken by an
enterprise.
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Fraud detection and investigation, it is essential for firm to identify fact in relation to
fraud and for this, they will conduct examination and identify those people who are involved into
this type of activity. Before this, it is must for them to determine loss of finance which is done
and what is the main reason behind it. Moreover, proper information need to be acquired before
taking any sort of judicial action. This all need to be done by an expert and after that financial
statements need to be observed (Hastings and et. al., 2015).
Instead of this, if fraudulent activity is committed by any staff member of company then,
it is required for superior to take support from any professional person and requisite steps need to
taken to sort out issue effectually. Along with, firm also needs to investigate entirely so that theu
will take appropriate action for that person. If nature of fraud is material then legal action need to
be taken but if it is immaterial them it is needed to determine those people who are included into
this as it provides loss to affiliation.
3.3, M1 & D3 Budget monitoring arrangements
According to Sweeney, Danaher and McColl-Kennedy (2015), budget monitoring
process is using by Care South Group so that they will be able to monitor entire financial
exercises of an enterprise. For this, they will examine financial records as it aids to find out
issues as well as irregularity in balance sheet. With assistance of spread sheet, superior will
easily analyse overall stock, expenditures, errors and so forth. This will aid administrative
department to sort out these troubles.
To manage financial resources in an appropriate manner, manager needs to monitor
budget. For above stated aim, employer will utilize data from spreadsheet, figures of cash flow,
examine progress, determine plan as well as issues.
Apart from this, manager will conduct audit i.e. internal and in addition external.
Therefore, they will formulate books of accounts as per laws and standards. With aid of intrinsic
audit manager will able to reduce or deduct unwanted errors or mistakes from financial accounts.
Thus, if any kind of fraud is taking place in firm then, this will be identified easily. But if, they
are organising external audit then, superior will easily identify that finance is using by people
appropriate or not (Garg and et. al., 2015).
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TASK 4
4.1 Information required to make financial decision
In various types of companies judgement regarding investment, success, guidance and
growth is taking by management, board of directors, managers and so on. For this, they will
consult with superior of each department. It has been examined that decision will be associated
with examination of information as well as data which is acquired through budget, stock,
financial records, sales ledger and in addition cash flow (Nelson and Staggers, 2016). Along
with, some element, such as investment's pay back period need to be taken into under
consideration.
Manager of an organisation needs to take decision for business on daily basis. In context
of Care South Group, judgement is take by top level authority and to make it more effective they
take support of profit and loss accounts, budget, cash flow, stock and spreadsheet. Many times
administrative division take decision for all level and this will comprise capital performance,
capital investment and in addition risk management.
If judgement is associated with company's performance manager needs to consider return
on investment and profits of firm. Rather than this, it is must for superior to manage risk
proficiently so that they will formulate some strategies for this purpose (Cascio, 2018).
4.2 & D2 Relationship between health and social care service delivered, costs and expenditure
It is must to consider some requisite elements like environment, comfort, safety, external
exercises for patients while determining care quality for users. It is must for manager to render
best quality of services to individuals to satisfy their requirements effectually. Along with, this
has to be improved time to time because it aids to enhance its effectiveness.
As stated by Cotlear and et. al. (2015) lots of expenses will be done by company on
equipments, but there is not guarantee that staff will render best quality to their users. Therefore,
it is required for superior to determine those difficulties which is influencing clients and for this,
they will consult with them. Along with, employer has to examine working performance of
employees and appraise them accordingly. It works as a motivation for them and they will use
resources significantly. It is not much easy for an enterprise to find out organisational cost
against results as well as service quality.
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It has been examined that cost as well as expenses will cater positive influence on the
service quality. This is essential that, care administration should proficient, well organised,
comprehensible, continuous, suitable, safe, effective and in addition responsive (Chartier, 2014).
Superior of firm needs to be comprehend requirement of customers, training and
development for staff members, requirement for equipments, examine and control services. If
this is much qualitative then this will provide maximum satisfaction to users.
4.3 & M1 Financial considerations impact upon a service user
This will provide huge affect on services which are associated with health care. It will
cater influence to quality of service. Like if financial condition of organisation is effective then
they will give best services to their users (Torchia, Calabrò and Morner, 2015). As Care South
Group is much able to pay adequate amount for this. But if they are not having appropriate
resources then this will affect their quality, because they will not buy best equipments as well as
facilities.
Rather than this, if financial circumstances of an enterprise is best then, they will provide
good pay to their staff members. Along with, to improve working efficiency training will be
given to them. On the contrary of this, if income is less then this will cater affect to level of
staffing and their services.
If affiliation is having less consideration then, it is must for them to decrease services
which is offering by them to society (Hong, Siegel and Ferris, 2014). Along with, they will not
be able to cater sufficient salaries to employees. If company has requisite amount of fund then,
they will easily purchase necessary equipments for them which will help them to give maximum
satisfaction to service users.
4.4 & D3 Ways to improve HSC services through changes to financial systems and processes
Care South group is a care home and it is required for them to comprehend financial
procedure as well as system as this assists firm to modify working system. Similar to this, they
have to enhance quality and appropriateness of services.
As said by Macinko and Harris (2015), financial scheme is collaboration of various kinds
of finance institute and along with their procedures. There are some examples related to this,
banks, finance management, creditors, cash flow, stakeholders and many others. Henceforth,
there are certain ways which help to enhance HSC's quality, such as payment by results, equity
and excellence, benefits cap and so forth.
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Payment by results (PBR) is a model under which entire responsibilities as well as risk
will be transfer from regulatory body to provider of health care. It works as a motivation for
them as they will enhance their service quality. Along with, proper standard will be followed by
them to acquire positive results. It will aid to render maximum satisfaction to users.
Equity and excellence brought new thoughts to motivate innovation, pay provider as per
their outcomes or performance. In context of Care South group, they are providing best services
to their users which help them to accomplish their needs and wants. Along with, they are
promoting safe and secure surrounding to patients (Mossialos and et. al., 2015).
CONCLUSION
It get concluded from the project that health and social care need more and more money
which have to get invested in a suitable manner. All financial resources need to manage properly
so that better and effective working get promoted. Although, every association have to
implement appropriate and suitable system through like costing etc. so that efficient gain could
become possible. Moreover, before any project, there is a need to plan each and every activity
effectively. In this consideration budgeting play an important role through which all targets get
accomplish properly. Although, all expenditure and investment need to monitor out properly in
health and social care association through which ultimate and positive response lead to derive in
a suitable manner.
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