Report: Managing Financial Resources in Health and Social Care Sector

This report provides a comprehensive analysis of financial resource management within the health and social care sector, using Silloth Nursing and Residential Care Home as a case study. It delves into the principles of costing, business control systems, and the information essential for effective financial resource management. The report explores regulatory requirements, systems for managing financial resources, and various income sources. It also examines factors influencing financial resource availability and different types of budget expenditures. Furthermore, the report discusses managing financial shortfalls, handling suspected fraud, evaluating budget monitoring, and the impact of financial considerations on service users. Finally, it offers recommendations to improve health and social care services through changes in financial systems and processes, with a critical reflection on the author's own work and conclusions.

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 requirements for managing financial resources..................................................3
1.4 System for managing financial resources in a health or care sector.....................................3
TASK 2............................................................................................................................................4
M2 Select design and apply appropriate methods/ techniques...................................................6
TASK 3............................................................................................................................................7
3.1 How financial shortfalls can be managed.............................................................................7
3.2 The actions to be taken in the event of suspected fraud........................................................7
3.3 Evaluate budget monitoring arrangements in health or social care organisation..................8
TASK 4............................................................................................................................................8
4.1 Information required to make financial decision relating to a health and social care
services........................................................................................................................................8
4.2 Analyse the relationship between a health and social care service delivered costs and
expenditure..................................................................................................................................9
4.3 How financial consideration impact upon an individual using the health care service......10
4.4 Advise ways to improve the health and social care service through changes to financial
system and process....................................................................................................................10
D3 critical reflection to evaluate own work and justify valid conclusion.................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Financial resources are essential part in organisational context. Concept of financial
management has become vast in recent scenario. Business organisation as well as health and
social care sector also adopting the concept of managing financial resources for better
management. This report is prepared to elaborate that how systems are used to manage financial
resources in health and social care (Luo and et. al., 2012.). Role of planning in the management
of health and social care budgets also defined in this context. Importance of monitoring budget
expenditure in health and social care organisation also illustrated. How systems and processes for
managing financial resources influence health and social care services. Knowledge and
understanding needed to monitor costs, make predictions evaluate the process of effective
control of resources allocation including shortfalls and make recommendations for expenditure.
System and process for managing financial resources influence health and social care services.
Silloth nursing and residential care home is chosen organisation subject to manage financial
resources.
TASK 1
1.1 Principles of costing and business control system
Cost control is one of the essential aspects in organisational context. Cost control systems
basically help to reduce cost and enhance profitability of organisation.
 Cost remains associated with cause: There is one single concept is adopted under cost
system that is cost. This is one of the natures which is based upon facts and effects
relationship. This is also considered as a concept which indicates that cost always
relevant with certain events and transactions.
 Variations in abnormal cost: This cost is incurred for adjustment of particular purpose
and task. Abnormal cost does not remain the part of production and manufacturing
process. This cost is considered while calculating the cost of the product.
 Prior period cost not taken into consideration: The costs which remain associated with
past projects and task are not considered in operations and management.
 Double entry principle: This is known as a concept which tells that every transaction
affects two sections. Cost control and management is based upon double entry system.
For example if an organise invest money subject to acquiring assets increase the value of
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assets and decrease cash (Naledi, Barron and Schneider, 2011). This is how double entry
system helps.
Business control system: Controlling, staffing, organising, administration and
performance management are main elements of business control system. This system basically
used by organisation in order to achieve core competence and perfectness within organisation. It
provides a path to track the actions and operations subject to set targets and aims. It is also
considered as an evaluation method which helps to analyse performance of employees subject to
desired aim and objectives.
1.2 Information needed to manage financial resources
Management of financial resources is one of the challenging tasks in respect of effective
management and operation of resources. Utilisation of financial resources directly related to cost
and cost remain directly connected with profitability of organisation. There are some essential
aspects are considered in terms of analysing requirement of financial resources and utilising
them as their viability. Various informations are needed to manage financial resources such as:
 Clear and certain accounting data: it is very important for business entity and
organisation in order to attain clear and fair representation of accounting data. Clear
information helps to demonstrate plans for analysing projects. Transparency builds strong
structure of forecasting and developing strategies. Users and managers be able to sort out
the plans and make effective strategies with the help of transparent and clear information.
 Risk management content: analysing future risk and uncertainties is prime requirement
of organisation subject to managing financial resources efficiently and effectively
(Richard and Shea, 2011). Making strategies analysing plans for better forecasting are
some key functional areas subject to risk assessment. Information and data related to risk
management. It provides aid in terms of recovering the damage and loss from associated
risk.
 Long term and short term forecasting: Lastingness is one of investment plans and
strategies subject to long term and short term forecasting information also remain
essential for managing financial resources. For health and social care long term and short
term forecasting basically depends upon actual information and data of similar tasks.
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1.3 Regulatory requirements for managing financial resources
There is a particular norms and regulatory forms are required subject to managing
financial resources. Legal structure and regulatory keeps the ethical structure subject to analysing
financial requirement for particular task and projects (Shanks, 2016). There are some essential
aspects also needed to discussed in terms of managing financial resources within health and
social care organisation. A well-structured financial management system is based upon proper
management and effectiveness of financial resources. Best quality and effective health care
services are important aspect with in health and social care organisation.
Regulatory terms and norms are required subject to ethical and legal implementation of
financial resources. It plays vital role in order to met essential requirements to managefinancial
resources within organisation. Not all the essential aspects are considered while analysing
financial requirement. To address the aim and objective of proper utilisation of financial
resources is one of the key requirement of regulatory terms and norms.
There is a proper structure is followed by health and social care sector in terms of
understanding the regulatory and terms which remain associated with financial resources
management. There are some legal norms and policies are discussed as follows subject to Silloth
Nursing and residential care home
 Evaluation and examination of internal and external auditing committee for regulatory
 Accurate lawful and insurance of company which is required to done in effective and
proficient manner.
1.4 System for managing financial resources in a health or care sector
Silloth Nursing and residential care home required to manage financial resources in
effective form to gain effectiveness and profit for better growth and development. proper
management is required to set up a effective system which will assist to manage the financial
resources in desired direction and way.
For better management and operation it is required to analyse the information and data
associated with generating funds from various sources (Singer and et. al., 2011). As per financial
reports of Silloth Nursing and residential care home its financial resources can be bifurcated in
following sections such as:
Donations, legacies and gifts: Organisation is required to analyse the details and
informations in order to manage sundry donations, memoriam, payroll information, patient
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amenities, gifts kinds, and legacies. By this system funds generated from donations can be easily
managed within organisation.
Funds from charity Proper management is required in terms of managing financial
information and details regarding charities, like sea dyke charity, the long cake charity etc. this
will help to manage the flow of funds generated from charities.
Meals, telephone receipts, skills for care: There some other sources also remain
associated with generating income from other activities. Information and records of income
generated from meals, telephone receipts, sundry, skills for care are also need to manage in
proper manner for effective utilisation of financial resources.
Income from fundraising events: some events are also organised by Silloth Nursing and
residential care home to generate funds. It is required to keep records and informations about
funds generated from strawberry cream tea, Christmas sales, dancing events and Christmas Cake
competition.
TASK 2
2.1 Various sources of income that may be encountered health and social care
For any organisation it is required to analyse cost of operations and management in terms
of operating financial and monetary policies (Kringos and et. al., 2013.). some major sources of
finance are discussed below
 Sales of heath care facilities and drugs: This is one of the essential sources of
generating finance from various products and services. Sale of drugs, selling health and
care services subject. There are some produce which are sold by Silloth Nursing and
residential care home such as meals, medicines, healthy food products, health and safety
equipments
 Sales from voluntary organisation: voluntary organisation are considered as support of
assisting organisation which helps to enhance the sales graphs of health and social care
services. Certain share is divided among voluntary organisation for enhancing selling
graph. Some essential aspects are made to organise events and activities for generating
funds.
 Revenues from pharmaceutical products: There are some essential aspects in health
and care organisation. There is a particular sales records maintained by organisation in
order to record sales from pharmaceutical products.
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 Bank loan: This is one of the external sources which is used to generate sources specific
interests rates are made for health care sectors. This is one of the source of generating
funds for better operation and management. Interest expenses are the major expenses
which are paid by health and social care sector (Kirch, Henderson and Dill, 2012).
2.2 Factors that may influence the availability of financial resources
Various types of factors remain associated with the financial resources management and
assigning the roles and responsibilities of users. These factors not affect the process of financial
management but also affect the nature of financial resources availability. Not all the aspects are
covered in order to effective management and organising finance departments. Availability of
financial resources remains depended on effective and efficient manner subject to analyse
financial availability for addressing and assessing liabilities and roles of financial resources.
Goodwill and image plays vital role subject to getting loans and credits from financial
institutions. This is also one of the essential aspect which impact the image and visibility of
organisation. Banks and financial institutions provides loans and credit policies on the basis of
financial performance and management of organisation.
some sensitive and important informations are provided by health and social care
industries. It is not required that all the pharmaceutical products and equipments are sold within
and outside the organisation. It depends upon organisation's short terms and long terms aim and
objectives. specific aspects are defined in order to achieve core competence within financial
management.
Interest rates which are made for repayment and interest charges are also one of the
influencing factors which impact the process of managing financial resources. Negotiate regional
allocation ability also affect the nature of managing financial resources.
2.3 Various type of budget expenditure in health and social care organisation
Budgets are prepared in order to determine future income and expenditure for future
events and tasks (Kakuma and et. al., 2011). This helps to understand and analyse future funds
and monetary requirement for addressing task and project requirements. It is essential for Silloth
Nursing and Residential Care Home to make budgets for forecasted income and expenditure.
There are some essential factors which remain essential subject to making budgets such as
relevant information and data for accurate and forecast. Various types of budgets are reared by
health and social care industries such as:
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 Operating budget: These are the budgets which are prepare in order to determine
budgeted income and expenditure which remain associated with operations and
administration activities of health care and social sector. It ensures the future
possibilities of income and expenditure for further task and projects. Income and
expenditure records are maintained for specific purpose to enhance sustainability of
effective financial management. Operational budget basically
 Capital expenditure budget: This is also one of the essential aspect to evaluate the
expenditure and income which are related to capital expenditure. These are considered
more effective and ascendant to maximising profitability of organisation. This helps to
understand the dynamics and durability of financial resources for future substance.
 Marketing expense budget: all the expenditure and income which remain associated
with the management and operation of marketing activities. Marketing budgets are
prepared on the basis of last year's actual information and records subject to income and
expenditure.
2.4 How decisions about expenditures are made with in a health care organisation
Decision-making is a process which helps to resolve the issues and plans which remain
associated with financial planning and strategic analysis of financial performance of
organisation. This helps to analyse the associated risk and opportunities subject to financial
resources. Decisions in health and social care industry assist managers to determine best
financial options for sustainable growth and development.
M1 Identify and apply strategies to find appropriate solutions
Effective strategies and plans are subjected to identify the factors and management which
remain associated with managing financial resources. Financial analysis of future task and
project are also some essential aspects which remain linked with appropriate strategies subject to
financial solutions (Hunter, 2016). Providing appropriate strategies such as analytical strategies,
evaluation strategies and producing financial statements for particular events and activities are
essential to sort out the plans and strategies.
M2 Select design and apply appropriate methods/ techniques
Good management and organising effective strategies for effective work activities are
which helps in managing financial resources for better management and operation. Taking
responsibility subject to addressing tasks and projects are also beneficial for self-development
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and financial resources are some essential. It helps to understand the essential aspects in order to
determine the variations in methods and techniques. Cost accounting system is also one of the
effective techniques and method subject to managing cost of operations.
D1 Effective thinking has taken place in unfamiliar context
This also one of the core aspect which helps to understand unfamiliar and irrelevant
aspects which remain associated with financial resources. This helps to demonstrate the
dimensions and aspect of effective management of financial resources. Creative and innovative
thinking subject to preparing financial plans for optimum utilisation remain essential for better
management of financial resources (Ginter, 2018). Convergent thinking assists conjunction and
bifurcating the process of managing financial process for effective management and operation.
D2 Responsibility for managing an organising activities
Various roles and responsibilities are bifurcated and classified in respect of achieving the
task requirements with better financial management (Ahnquist, Wamala and Lindstrom, 2012). It
is also one of the major aspects for users to understand roles and responsibilities in managing and
organising activities subject to managing financial resources for better and effective
management. Users remain responsible for recording and maintaining financial records and
information in well-organised manner for better completion of tasks and projects.
TASK 3
3.1 How financial shortfalls can be managed
Financial shortfalls are considered as financial obligations whether personal or business,
need to be met. Financial obligations help to manage and create situation subject to procurement
of funds and allocation of financial resources for better management and operation. Financial
shortfalls indicate reduction of flows and slow growth and development rate of finance sector in
market (Genet and et. al., 2011). This is known as one of the critical situations for business and
organisation in terms of managing financial resources for effective management. These can be
found in various forms and remain responsible for unexpected and negative results. This is
basically associated with shortfalls in respect of financial resources.
The nature of financial shortfalls may be short term and long term. It is not important that
if once shortfalls have occurred then it will not occur in future. There are possibilities that effect
may consist for long term or short-term duration. Various types of financial shortfalls are found
such as cash shortfalls, budgets for their day-to-day living expenses, etc. Financial and better
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forecasting plans helps to sort out the associated risk and analytical factors which impact the
financial performance of organisation.
3.2 actions to be taken in the event of suspected fraud
It is not important that organisation be able to control financial risk every time. some
internal aspects also affects the financial and operational performance of organisation. Financial
shortfalls challenges are also some cost and financial performance elements which create barriers
and complexities to attain core competence. Fraud is considers unlawful and unethical act which
affect the financial performance and credibility of organisation. Fraud is considered as a remote
possibility of happening risks and uncertainties subject to devoting the form of efficient financial
management. For any organisation fraud is a major problem which decrease the financial graph
and goodwill of organisation (Fotaki, 2011).
There are chances that fraud can take place within Silloth Nursing and Residential Care
Home. Some possible causes and changes can also impact the image and good will or
organization. Fraud in respect of misrepresentation of financial reports, theft of inventors, lose of
pharmaceutical products are also some type of frauds which impact organization by financially
and by goodwill perspective. Adequate legal and regulatory structure may prevent the fraud
activities and may help organization to maintain the flow of financial resources.
3.3 Evaluate budget monitoring arrangements in health or social care organisation
Monitoring and performance management is one of the essential aspect which helps to
reduce the conflicts and issues which remain associated with financial management. Various
type of performance and monitoring tools are used to analyse the project requirement and needs.
It is require to manage the flow of monitor the financial records and performance of organisation
in terms of better effectiveness of task requirements. some essential aspects are considered in
order to align task and projects to get competitive advantages.
Silloth Nursing and Residential care home need to monitor the following aspects such as
analysing sources of funds, capital commitments, financial resources, restricted funds like, sea
Dyke fund, Doris foster fund, and Dr. hutton legacy, employee remuneration, analysing
categories and resources of funds which can be expended within organisational context also
evaluated in this context. It is required to keep individual records and information related to
voluntary income, activities for generating funds, income from charitable trusts,etc.. A
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categorised structure of presenting financial performance will also help to manage financial
resources in effective manner.
TASK 4
4.1 Information required to make financial decisions relating to a health and social care services
There are different types of services provided by health and social care sector so
management took initiative steps in order to perform different types of function within the
organisation in proper manner. Management needs to implement different strategies and policies
in order to attain goals and objectives of organisation. These strategies aids in performing
different types of activities in effective manner (Chartier, 2014). These strategies aid to
accomplish different operations which are related to health care sector. There are different
informations which are concerned with Care Home which are handled by the top level of
management. it helps in determining various types of decision making process. Decision making
processes is the systematic approach which occurs at regular period in Care Home. There are
some important documents such as:
 Cash-flows statements
 Cost sheet
 Income and expenses
 Beep analysis
Decision which is related about the performance of Care Home services which are concerned
with the investor in order to attain huge level of profit and expected investment. Form their
investment capitals. Management needs to determine the risk in order to take effective decision
to determine the ability about the organisation that it is capable to handle the risk or not. These
decision impact the working procedure of the health care sector in order to attain the
effectiveness in performing different types of activities of organisation. It leads to provide better
quality of work to the people as per their requirement.
4.2 Analyse the relationship between a health and social care service delivered costs and
expenditure
There is strong relation between the service and cost which are responsible for impact on
different factor. Accountability is the approach to provide effective quality of service at
reasonable cost. It will motivate the employees who are involve in delivery of service in health
care sector (Cascio, 2018). There should be transparency in performing different types of work
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by this organisation can consider the trust of stakeholder. Organisation put its best effort in order
to provide different types of facilities to perform different types of activities in effective manner.
It leads to create effective environment in order to perform different types of operation of
organisation which comfort to the patient.
The manager of Silloth Nursing and residential care implement some change in order to
provide various type of facilities in effective manner. The management needs to consider
different key factor which are liable to affect the different service of organisation. The
management of organisation needs to perform various types of activities which helps to attain the
goals and objectives of organisation. Management expend different types of service in order to
assist the patient in proper manner (Boulware And et. al., 2016). It should implement different
types of safety measure to the patient in order to provide security of services. These efforts aids
to retain long term relationship with the patient which helps to achieve target of the
organisation.
4.3 How financial consideration impact upon an individual using the health care service
Financial consideration and emoluments are the essential aspects which impact upon
financial performance of organisation. individual aspects and concepts are adopted by
organisations in order to achieve core competence and effective evaluation methods. Ethical and
lawful consideration is paid to employees in respect of work delivered by them within the
organisation. As per financial information and data provided in respect of Silloth Nursing and
Residential care home employee’s remuneration is categorised in following four categories such
as Wages and salaries, social securities, medical officer, CRB expenses and other staff members.
All these categorise are bifurcated in terms of staff costs which remain associated with managing
financial resources.
Trustee remuneration and expenses are also one of the overhead which is need to
organised by organisation. As per this head no any kind of remuneration directly and indirectly
withdraws for repayment of salaries and wages. There is particular legal form is required subject
to utilising resources. This remain essential subject to paid or payables for the year to any trustee
and any third person.
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4.4 Advise ways to improve the health and social care service through changes to financial
system and process
It is require to manage and operate the financial resources of Silloth Nursing and
Residential Care home also helps to understand the importance of effective financial
management (Almalki, FitzGerald and Clark, 2011). Financial performance of an organisation
depends upon accurate record of financial information for better effectiveness of financial
resources. It is required to classify and bifurcate the financial information subject to analysing
revenue structure for assigning task requirements and norms for better management.
There are some useful tools need to adopt by organisation in order to manage financial
requirement. As per financial performance analysis some crucial points come across that
organisation need to classify the income categories in two ways such as monetary and non-
monetary incomes. It is required to prepare financial plans for specific capital and revenue tasks
and projects. Risk management is also one of the aspects in order to determine strategies in
respect of future financial plans. Risk assessment remains centralised in following ways such as
annual review of the risks and the charity and establishment of system and procedure to mitigate
those risks subject to plans.
M3 Appropriate structure and approach and findings
Structure for managing financial resources for better completion and accomplishment of
tasks is most important aspect in health and social care industry. This not only assist managers to
analyse the cost aspects nut also helps to compare the outcomes with desired aim and objective
of organisation. It make an optimum requirement of financial resources for effective
management and operation (Financial Management Resources, 2017).
D3 critical reflection to evaluate own work and justify valid conclusion
As per above analyse of financial structure and position of Silloth Nursing and home care
sectors I found various effective and essential aspect subject to financial management. As per my
perspective optimum utilisation of financial resources depends upon proper analysation and
evaluation of financial requirement within health and social care organisation. Proper legal
structure and regulatory reforms also need to follow along with effective management.
CONCLUSION
This context is prepared to analyse and understand the system of managing financial
resources in health and social care organisation. Role of planning in the management of health
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and social care budgets are also illustrated in health and social care context. Importance of
monitoring budget expenditure in health and social care organisation also defined in this context.
How system and process for managing financial resources influence heath and social care
services also elaborated in health and care organisation.
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Financial Management Resources. 2017. [Online]. Available through:
<http://www.minnesotanonprofits.org/nonprofit-resources/financial-management/financial-
managment-resources-overview>.
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