Financial Management and Resource Allocation: CareSouth Group Report

This report delves into the management of financial resources within the health and social care sector, specifically focusing on CareSouth Group care home. It examines costing principles, business control systems, and the implications of regulatory requirements. The report analyzes diverse income sources, factors affecting financial resources, and various budget expenditures. It also addresses managing financial shortfalls, detecting fraud, and evaluating budget monitoring arrangements. Furthermore, it explores the information required for financial decisions, the relationship between social care and healthcare costs, and the financial considerations impacting service users. Finally, it suggests ways to improve business operations, offering a comprehensive overview of financial management strategies within the context of health and social care.

MANAGING FINANCIAL
RESOURCES IN
HEALTH AND SOCIAL
CARE

TABLE OF CONSENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Determining the principles of costing and business control system needed to be adopted in
CareSouth Group care home........................................................................................................1
1.2 Ascertaining information which are needed to be managed in financial resources...............3
1.3 Implication of regulatory requirement in managing the financial resources.........................4
1.4 Analysing systems for managing financial resources............................................................4
TASK 2............................................................................................................................................4
2.1 Discussing diverse source of income.....................................................................................4
2.2 Identifying the factors which are affecting financial resources.............................................5
2.3 Analysing the various kinds of budget expenditures.............................................................6
2.4 Evaluation of process of decision making.............................................................................6
TASK 3............................................................................................................................................6
3.1 Ways to manage financial shortfall in CareSouth Group care home.....................................6
3.2 Actions related to suspecting occurrence of financial fraud..................................................7
3.3 Evaluating budget monitoring arrangements in CareSouth Group care home.....................8
TASK 4............................................................................................................................................8
4.1 Evaluating information which has been required to make financial decisions.....................8
4.2 Deep insight about relationship between social care and healthcare services delivered,
costs and expenditure...................................................................................................................9
4.3 Financial consideration has impacts on service users............................................................9
4.4 Suggesting ways to improve business operations..................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
To bring the innovative changes in managing the financial resources of the organisation
there is need to have effective planning and management system in the business. In the health
and social care sector there has been influences of various factors which affects the funding as
well as management of costs incurred in the various operating tasks. In the present assessment
there will be analysis based on determining various sources, techniques and methods of financial
control in health and social care industry this will be helpful to CareSouth Group Care home.
This health and care industry mainly incorporated with the operation like treating patients mainly
survived through Alzheimer and Dementia.
TASK 1
1.1 Determining the principles of costing and business control system needed to be adopted in
CareSouth Group care home
There are different sources and techniques which will be fruitful in managing the
business operations as well as financial system in organisation. To analyse the various techniques
and methods the professionals will be helpful as they will have all the information relevant to the
financial requirements in the firm (Drummond, Sculpher and Torrance, 2015). CareSouth Group
care Home will have appropriate control over costs and expenses made during the period as to
perform the business operations which in turn will be effective and helpful to have appropriate
gains and management of resources. Similarly, there are various principles of costs which will be
helpful in managing the business operation such as:
 Cost must have relevant with cause: There must be proper record of the costs and
expenses which were being addressed in the reports. Therefore, to have appropriate cost
management in an industry there is need to have proper evidence and concrete records
which brings the reliability over the funds spend in such activities. The managerial and
accounting professionals of CareSouth Group Care home has been suggested to make
effective changes into operations which in turn will be effective and helpful as to manage
the financials of business.
 Abnormal costs must be charged in costing: there must be consideration of all the
costs, expenses and losses incurred in the business operations (Kelly, 2015). Therefore,
the costs which are relevant with theft, riot, fire and negligence does not have any records
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in the direct costs but these are the losses which were bare by a firm. CareSouth Group
Care home must have records of all the costs which incurred during the period.
 Costs must be charge after it's incurred: There is need to avoid the forecasted costs
which is planned by the managers that tit will be incurred in the future time. Thus, the
costs which are needed to be recorded by the business professionals which must have
incurred during the period that mill required to have appropriate records of all the
transactions. CareSouth Group Care home must records transaction only after completion
of that particular time and costs of the business.
 There should not be influences of past costs: Accounting professionals of CareSouth
Group Care home must make records of the transactions which are mainly incurred in the
current time (Sommers, Gawande and Baicker, 2017). Therefore, the past costs and
expense need not to be considered by them as to plan the future costs. Therefore, the
current requirements and costs will have clear estimations over the funds needed to have
in the business.
Business control system:
To control the operational state within organisation there is need to have better
administration and control environment ion the business premises therefore, there will be
influences of various operational needs and wants which in will be facilitative and beneficial as
to manage the business operations of a Health and Social industry. Moreover, there may be
various business control system which in turn will be fruitful and beneficial to the operational
activities within an industry such as:
Budgetary control system: There is need to have implication of various budgetary
control system which will be efficient enough to manage the costs and funds for the activities.
Budgets are comprises with the past records or the current requirement of funds for the
computation of the activities which brings the cognition to managerial professionals in
determining the future needs for such costs (Joiner and Lusch, 2016). It sets out the limits over
the level of expenditure needed to be made by an activity during the period. Therefore, this will
help in proper utilisation of the resources which in turn will be indicative and helpful to the
managerial professionals.
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Purchasing and expenditure: To succeed the fund circulation in the business there is
need to have proper manage of the activities which in turn will be indicative and helpful to the
managerial professionals as to have effective monitoring over purchases and expenditure. The
professionals need to suggest alternative solution which will be assistive to operations carried in
the business environment.
Personnel control: To control the staff turnover in business which directly impacts over
requirement of funds for facilitating the adequate training and development guidance to them.
However, CareSouth Group Care home need to manage the training and development expenses
among the staff members which will be helpful to them as to have appropriate management of
operations.
1.2 Ascertaining information which are needed to be managed in financial resources
By considering the financial statement of CareSouth Group Care home it has been
identifies here that there are various financial and non financial resources which are needed to be
administered by the business professionals. Therefore, these are the information which in turn
balance the cost allocation, decision making as well as suggest effective cost control in entity
(Macinko and Harris, 2015). Thus, the manages operations which will be helpful in presenting
the higher investment returns.
 Transparent accounting details: This emphasis over the presentation of financial
disclosure at the need of the period needed to be adequate and transparent. Thus, all the
transaction must have clear resources and concrete evidence which brings reliability
among stakeholders to trust the data set. It helps them in decision making as well as
planning for fruitful investments in the business.
 Risk management: There has been reduction in the goodwill of the company as to have
appropriate risk management for effective business plan and risk management. Moreover,
in relation with CareSouth Group Care home there will be risks involved in the
operational practices such as variation in the operating costs, overhead expenses etc.
 Short and long term forecast: To bring the effective controlling over the debts of
business in such period CareSouth Group Care home has been suggested to improve the
current ratio of the business such as paying of the debts as well as receiving the payments
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through debtors (Giles-Corti and Owen, 2016). Therefore, it will improve financial health
of the entity for the long term.
 Audit reports: It requires the appropriate auditing of all the accounts and operations
which held in the business which in turn will be indicative and helpful to the business
professionals as to manage the operations of entity. CareSouth Group Care home needs
regular auditing, inspection and administration of the financials in all operational
departments of business.
1.3 Implication of regulatory requirement in managing the financial resources
To manage financial activities and have proper records of the information which in turn
will be disclosed among stakeholders are needed to have appropriate framework. Therefore,
there are various regulatory authorities which influences as to manage the financial transactions
of the entity.
NHS Commission: The national health security commission is operating as to manage
the operational environment of health and social care industries. Therefore, CareSouth Group
Care home will have effective control over financial plans, operating activities as well as budgets
for the operations. Thus, it indicates that these resources will be served as to have effective
financial controls.
GAAP: these are the accounting principles which were universally accepted and helpful
for performing accounting activities in an industry (Medway and Wong, 2015). Managers at
CareSouth Group Care home will have positive revenue generation as they can become able to
serve the adequate analysis over the business operations.
1.4 Analysing systems for managing financial resources
There has been several techniques which comprises with systematic management of
financial resources in organisation. However, among such variations there has been favourable
techniques which will help effective and quality control over accounting operations. Therefore, it
will be suggested to the managerial professionals as to manage tools, investment operations as
well as it reduces the returns of firm.
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TASK 2
2.1 Discussing diverse source of income
By considering there sourced of finance there can be various effective and accurate
sources through which CareSouth Group Care home can generate incomes (Hansson, Höög and
Nyström, 2017). Thus, to meet the initial requirement for operating the organisation there will be
various such as:
Share capital: CareSouth Group Care home will generate the effective among of funds
through the share capital which will be beneficial in having investment from the investors
available in the market. Thus, it can be said that there will be fruitful gains to the business
professionals as to have effective control over the market value which will bring appropriate
probability to them.
Governmental grants: These are the welfare authorities which helps in bringing the
funds to the health and social care organisations. Therefore, the motive of CareSouth Group Care
home is to serve the most effective and helpful services among the consumers and patients as to
have appropriate health benefits. They will have governmental grants and gifts which will be
helpful to them.
Donations: These are the most helpful source as there is no need to make payment of any
return over the operations. Therefore, with influences of the donors the firm will have effective
for growth in the capital collection as well as fund managements.
Loan: Through this source CareSouth Group Care home will have appropriate revenue
generations and gains as they will apply for the loan in the bank in consideration of the fixed
asset. It will charge them interest of installation payments which will be helpful in managing the
operational needs as well as business operations.
2.2 Identifying the factors which are affecting financial resources
There are various elements which influences funding of business which in turn will be
effective as to manage the financial operations in the business (Jones and Hall, 2018). CareSouth
Group Care home has to analyse such factors which will be beneficial such as:
Social Deprivation Index: There has been a variation in the individual needs and wants.
Therefore, in the health and social care sectors there are huge differences in the level of demands
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of patients. Thus, every patient needs suitable drugs relevant with their diseases and tolerance
power of their body. Thus, to consider all the patients there is need to have availability of large
numbers of drugs for their betterment and comfort.
Project priority: To improve the health and care sector UK government has planned
various operations and planning which will be helpful to manage the projects. Therefore, in order
to meet such requirements there will be effective control over the operations and management of
funds.
Private funding: In order to perform the welfare operations there are various
organisations which makes investment in the business. Therefore, there is need to have effective
control over the operational requirements as well as donations which made by businesses.
2.3 Analysing the various kinds of budget expenditures
These are the expenses which in turn required the attention of professionals as to manage
the costs incurred as well as outflows of businesses (Drummond, Sculpher and Torrance, 2015).
Moreover, these can be analysed as follows:
Capital Assets: The capital assets of the business which are mainly relevant with revenue
generated by organisation, cash flows and operating objective of the entity.
Raw material: The cost of raw material usually varies in all the department which in turn
will have positive as well as negative impacts over the operations. Thus, it influences the
business with changes in the resources.
Direct Labour: the expenditure which are usually incurred over the labour, employees of
professionals such allowance, salaries etc. these will be a major capital expenditure of business.
Taxes: the taxes incurred on the import, export and various operations of the entity which
are needed to be payable by the firm.
2.4 Evaluation of process of decision making
In order to improve the financial health of the organisation there is need to assess all the
transactional activities of the firm which will be managed and operated by business as to reach
the concrete solution of any issues. Therefore, it comprises with the process such as collection of
data, analysing it, suggesting the fruitful changes and then positive implication of the data set.
Therefore, it will be effective and adequate as to management the operations of entity.
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TASK 3
3.1 Ways to manage financial shortfall in CareSouth Group care home
A Financial shortfall is determined as an expletive to any of the business entity as it will make
any business to become non existent from the market. Financial shortfall puts major obstacles on
the activities of business such as all operational activities might be disrupted due to this and
because of this reason every company wants to take precaution before its too late, or they have to
overcome from this situation as soon as it is possible (Joiner and Lusch, 2016). For dealing with
this type of situation in very efficient and effective manner CareSouth group care home can pick
out these practices:
 Work should be in cost which has been estimated
 Fund from government
 Divestment
Estimated cost: They should operate their activities within the cost which has been
estimated early so this will lead to substitute all additional cost which has been burden from the
organization.
Fund from government: A Financial shortfall can be overcome by taking grants from
the government so this will lead to regenerate all activities related to business of this company.
Divestment: CareSouth should stop operating in those services which requires huge cash
so this will concentrate on the service where it is earning more margin and it will be having
ability to rid off the situation of financial shortfall.
3.2 Actions related to suspecting occurrence of financial fraud
In the present scenario, many of the business organisations have to face a very extreme
situation in market because of some activities which are forbidden by law of its some
organization. As these activities are usually related to harassment, fraud or any of illegal
activities (Kelly, 2015). So these activities can be totally reduced, eliminated or even substituted
by taking actions which are very strict and not in favour of person who made it for ruining the
intangible asset i.e. goodwill of the organisation. If all these situations are present in CareSouth
then it should adopt the following pattern:
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 Collecting information and evidence: the primary and most important thing should be
done is that before acting on any circumstance, first evidence and all related information
should be gathered and which all will be also indicating towards reason behind the fraud
which has been done and judgement should be sound about the original culprit.
 Role of internal auditor and external auditor: The fraud has been suspected could be
solved by putting an investigation which should be in form of team which must include
internal and external auditors so this will be giving a whole picture and it will lead to
absence of biases while judging the outcome.
 Termination of that person: The most suitable action one should take after prompt
identification of the person who has been involved in fraud should be terminated as soon
as possible of its association with the business organisation. Further, to it all legal actions
will be implemented.
3.3 Evaluating budget monitoring arrangements in CareSouth Group care home
Budget monitoring can be refereed as controlling and reviewing activities which are
related to business on the perspective of activities which are planned. Usually each and every
organisation prepares budget, because it tends to measure actual performance or financial
performance and stability of the business with some key indicators which are determined at the
time when goals and objectives of the organisation has been set (Giles-Corti and Owen, 2016). In
the budget monitoring process, the goals which has been quantifiable and even identified of
CareSouth will be easily monitored and checked for ensuring each and every activity of the
organisation are performed in very planned manner. In this budgeting process, both external and
internal auditor keeps a proper track on the overall performance of the organisation and after
tracking performance it has been matched by an actual outcome which are in line on the basis of
some key indicators and not any single action has been placed but if there are various deviations
between standard and actual corrective actions which are properly implemented on immediate
basis for attaining business goals with the effectiveness and efficiency created by auditors.
TASK 4
4.1 Evaluating information which has been required to make financial decisions
The Financial decisions which will be made according to the management when they
have perfect non financial and financial information and records. Usually financial information
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indicates the financial transactions or activities which are made in specific time period according
to the business entity. The manager of CareSouth must have ability to draw and interpret
financial decisions by doing a proper analysis of management accounts which is included in all
financial accounts which are also affected along with specific particular time period from the
activities which are related to business. Along with this, proper evaluation of income and
expenditure budget, goals on the basis of long term and short term of the organisation, report on
the basis of customer satisfaction, regular provisions on the basis on delivering service and every
report of government will also help in determining information which is enough for drawing the
financial decision.
4.2 Deep insight about relationship between social care and healthcare services delivered, costs
and expenditure
Any of the organization which has ability for establishing its strong presence in the
market when it also understands the requirement and needs of the stakeholders and these can be
fulfilled when any organisation works on the fair and transparent policy according to the
behaviour with its stakeholders, this policy will be constructing a perfect brand image of the
organisations on the basis of mind of stakeholders which consists of owners, manger, employees,
strategic alliance, government, supplier, media, society, customers, shareholders, regulators etc
(Medway and Wong, 2015). Along with this cost, service delivery, expenditure will be so
efficient and effective when the organisation will be adopting a costing and pricing strategy
which is fully benefited for both of the organizations and even for its customers.
4.3 Financial consideration has impacts on service users
To improve financial consideration in the operations there is need to make changes in
operational activities such as improving the costing, budgeting techniques in CareSouth. On the
side managing expenses such as salaries, overheads and purchases will have positive impacts
over rising the economic conditions of firm.
4.4 Suggesting ways to improve business operations
There is need to implicate various changes and alternative solution to the business
activities. Therefore, there are various costs which generally incurred in the business operations
which in turn needed to be managed by the professionals as to make effective changes into
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operations. Professionals at CareSouth have been suggested as to make necessary improvements
in the operational activities of the business.
CONCLUSION
On the basis of above report it will be suggest to the managerial professionals of
CareSouth that they must take up necessary improvements in operational activities of their
business. There are different components which impacts subsidizing of business which thus will
be successful as to deal with the budgetary activities in the business. Keeping in mind the end
goal to enhance the money related strength of the association there is have to evaluate all the
value-based exercises of the firm which will be overseen and worked by business as to achieve
the solid arrangement of any issues. In this way, it involves with the procedure, for example,
accumulation of information, dissecting it, recommending the productive changes and afterward
positive ramifications of the informational index. Consequently, it will be viable and sufficient as
to administration the tasks of substance
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REFERENCES
Books and Journals
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2015. Methods for the economic evaluation of health care programmes. Oxford university
press.
Giles-Corti, B., Vernez-Moudon, A., Reis, R., Turrell, G., Dannenberg, A.L., Badland, H.,
Foster, S., Lowe, M., Sallis, J.F., Stevenson, M. and Owen, N., 2016. City planning and
population health: a global challenge. The lancet, 388(10062), pp.2912-2924.
Hansson, J., Höög, E. and Nyström, M., 2017. Action research for multi-level facilitation of
improvement in health and social care: Development of a change facilitation approach for
a local R&D unit. Action Research, 15(4), pp.339-356.
Joiner, K. and Lusch, R., 2016. Evolving to a new service-dominant logic for health
care. Innovation and Entrepreneurship in Health.
Jones, C. and Hall, K., 2018. Developments in Services for Elderly People: Managing the
Changes. In Management, Social Work and Change (pp. 57-72). Routledge.
Kelly, A., 2015. The enterprise culture and the welfare state: restructuring the management of the
health and personal social services. In Deciphering the Enterprise Culture (Routledge
Revivals) (pp. 146-171). Routledge.
Macinko, J. and Harris, M.J., 2015. Brazil's family health strategy—delivering community-based
primary care in a universal health system. New England Journal of Medicine, 372(23),
pp.2177-2181.
Medway, M., Tong, A., Craig, J.C., Kim, S., Mackie, F., McTaggart, S., Walker, A. and Wong,
G., 2015. Parental perspectives on the financial impact of caring for a child with
CKD. American Journal of Kidney Diseases, 65(3), pp.384-393.
Sommers, B.D., Gawande, A.A. and Baicker, K., 2017. Health insurance coverage and health—
what the recent evidence tells us.
Sweeney, J.C., Danaher, T.S. and McColl-Kennedy, J.R., 2015. Customer effort in value
cocreation activities: improving quality of life and behavioral intentions of health care
customers. Journal of Service Research, 18(3), pp.318-335.
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