Report on Financial Resource Management in Health and Social Care

This report examines financial resource management within the context of healthcare and social care organizations, using the Queen Victoria Foundation as a case study. It explores strategies for managing financial shortfalls, including prioritization, virement, reserve funds, and external income sources. The report also outlines steps to be taken in cases of suspected fraud, emphasizing the importance of thorough investigation, financial information analysis, and proper auditing. Furthermore, it evaluates budget monitoring arrangements, including variance analysis of income, expenses, and costs. The report concludes that effective financial resource management and proactive budgeting are crucial for overcoming financial challenges and ensuring the stability of healthcare organizations.

Managing Financial
Resources In Health and
Social Care

Table of Contents
INTRODUCTION...........................................................................................................................1
LO3..................................................................................................................................................1
3.1Explaining the management of the financial shortfalls..........................................................1
3.2Explaining the steps to be taken in the event of suspected fraud...........................................2
3.3Evaluating the budget monitoring arrangements in the health and the social care
organization. ...............................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Managing the financial resources aims at facilitating an understanding of techniques and
principles of the accountancy to the practicing managers so that they can communicate with
more ease and better understanding can be generated by them. In a health or social care
organization financial resource management refers to the achieving the effectiveness and the
efficiency in the business. Various effective systems are implemented by such companies in
managing its resources. The present report is based on the Queen Victoria foundation,
established in East Grinstead, known as the specialist in reconstructive surgery center.
Furthermore, the study explains the ways in which the financial shortfalls can be managed and
the steps for suspecting the frauds. Budgeting monitoring arrangements of the company are also
discussed in this report.
LO3.
3.1Explaining the management of the financial shortfalls.
Shortfalls in the funds occurs when the liability of the enterprise is due and does not have
the capability to pay off its obligation. Increased cost has to be bear by an organization at the
time of financial shortfall. For example- failure in meeting the repayment of the bank loan can
attract higher penalties and interest payment (Rodrigues and Glendinning, 2015). This affects the
credit rating of the company which in turn results in facing the challenges by the firm in the
future for further investment. Therefore, it is very important for the Queen Victoria to manage its
financial shortfall efficiently and effectively. There are various ways for managing the financial
shortfalls as follows-
Priorities- It means some the aspects are most important for the enterprise and kept as the
priority goal from the another aspects. The three basic financial priorities that are most crucial
for Queen Victoria foundation are keeping aside the living expenses for at least up-to 6 months
in a secure and the liquid account of an organization so that in any emergency this fund can be
used and financial shortfalls need not be faced. Secondly, Establishing the insurance for
replacing the income of the organization so that sufficient savings can be accumulated for
meeting the shortfalls at a specific time period (Sønderstrup-Andersen and Bach, 2018). Thirdly,
Eliminating and avoiding the debt which reflects that high debt may lead to greater obligation on
the firm and at the time of losses it cannot meet its obligation adequately so lower the debt,
company could efficiently manage its financial obligation.
1

Virement- It refers to the process of transferring the amount of money from one fund to
another. In other words it means transferring the money in those funds that are generating more
returns so that financial shortfalls can be managed efficiently.
Reserve funds- Maintaining the appropriate reserves so that any uncertain event or
shortfalls can be met timely. There are various reserve funds that the company can seek for like
cash reserve policy, operating reserve and others (Harlock and et.al., 2018). Cash reserve policy
ensure sufficient availability of the funds which enables the Queen Victoria in managing or
maintaining its financial flexibility and can meet its unanticipated expenses.
Various external income sources- There are several external sources of income such as
property income, capital gain income and others. These sources also assist the firm in managing
its financial shortfalls with a huge return.
Individual implications within service- By taking into consideration the individual
perspective of its patients within the service might help the organization in gaining large
customers which in turn enhance the financial performance of the entity (Ford‐gilboe and et.al.,
2018). This also leads to management of the financial shortfalls.
3.2Explaining the steps to be taken in the event of suspected fraud.
Conducting the deep inquiry for confirming that the fraud exist. Inquiry must include all
the relevant people who were involved in such activities that results in fraud. Carrying the
investigation on their own for getting the facts and then consulting about the facts with the police
so that independent investigation and the culprits can be prosecuted (Katz and et.al., 2018). By
analyzing the financial information for evaluating the reliability and validity in the reporting.
Financial information act as the evidence for suspecting any fraud that is made by the staff of the
Queen Victoria. The financial statements prepared of the company must be reliable in the sense
that same results must be ascertained when it is used consistently and verified by the different
investors and the creditors. This helps in suspecting the fraud easily and appropriately. Proper
auditing of the financial information helps the Queen Victoria in knowing the validity and
accuracy of the statement and are stated in compliance with all the accounting principles
(Entwistle, Cribb and Owens, 2018). By these measure's fraud can be suspected with proper
evidence.
3.3Evaluating the budget monitoring arrangements in the health and the social care organization.
Queen Victoria Hospital Trust Foundation
2

Queen Victoria Budgeting report
Actual results
Budgeted
valuation
Variance
Analysis
Particulars Amount(£) Amount(£) Amount(£)
2018 2018 2018
Operating Income 69928 76852 6924
Operating
Expenses 65495 61245 -4250
Finance cost 1432 1131 -301
Net income 3001 4561 1560
Budgeting monitoring includes 4 stages where in the First stage the actual income, expenses, cost
and the operating sales has been analyzed from the annual reports of the Queen Victoria. After
that the budgeted figures are evaluated of all the factors and in the third stage the variance
analysis between the actual and the budgeted results are made. In the fourth stage the analysis of
the deviation is made so that corrective action can be taken for meeting the gap. From the above
analysis it is interpreted that favorable results in the sales are attained as the budgeted valuation
was higher than the actual results which means lower sales are achieved. Income also shown the
positive results which reflects that the actual income gained is less than the budgeted income so
Company must focus on adapting more opportunities to increase its profits and sales. The
expenses and the cost indicated the adverse analysis which depicts company has efficiently
managed its control over its cost and expenses.
CONCLUSION
From the above report it is concluded that frauds the financial shortfalls are considered as the
major issue or challenges that might faced by the Queen Victoria hospital in managing its
financial resources. However, these measures can be overcome by effective and appropriate
management of the resources. This can also be avoided by proper planning of the process of
budgeting.
3

REFERENCES
Books and journals
Entwistle, V. A., Cribb, A. and Owens, J., 2018. Why health and social care support for people
with long-term conditions should be oriented towards enabling them to live well. Health
care analysis. 26(1). pp.48-65.
Ford‐gilboe, M. and et.al., 2018. How Equity‐Oriented Health Care Affects Health: Key
Mechanisms and Implications for Primary Health Care Practice and Policy. The Milbank
Quarterly. 96(4). pp.635-671.
Harlock, J. and et.al., 2018. Doing more with less in health care: findings from a multi-method
study of decommissioning in the English National Health Service. Journal of Social
Policy. 47(3). pp.543-564.
Katz, A. S. and et.al., 2018. Social impact bonds as a funding method for health and social
programs: potential areas of concern. American journal of public health. 108(2). pp.210-
215.
Rodrigues, R. and Glendinning, C., 2015. Choice, competition and care–developments in
English social care and the impacts on providers and older users of home care
services. Social Policy & Administration.49(5). pp.649-664.
Sønderstrup-Andersen, H.H. and Bach, E., 2018. Managing preventive occupational health and
safety activities in Danish enterprises during a period of financial crisis. Safety
science. 106. pp.294-301.
4