Report on Financial Resource Planning and Management in Healthcare

This report examines the management of financial resources within Care Tech PLC, a health and social care organization. It delves into the principles of costing, business control systems, and the information necessary for effective financial resource management. The report explores regulatory requirements, including Generally Accepted Accounting Principles (GAAP), and various systems used for managing financial resources. It discusses income sources like profit shares and bank loans, factors influencing financial resource availability such as financial instruments and acquisitions, and different budgeting types including planning and comprehensive budgeting. The report also covers how expenditure decisions are made through cost-benefit analysis and how financial shortfalls can be managed through cash flow management and cost-cutting strategies. The analysis considers various financial risks, technological advancements, and the impact of mergers and acquisitions on resource availability, providing a comprehensive overview of financial planning and management in the healthcare sector.

Running Head: MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 1
Managing Financial Resources in Health and Social Care
Name
Institute

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 2
Managing Financial Resources in Health and Social Care
Background
The goals of Care Tech PLC homes are to offer the services of social care with great
qualities. The existing programs have been providing services to children as well as the adults.
Out of the many quality services, Care Tech PLC homes offer distress nurses, midwives, health
visitors, support staff assisting the usual tasks of daily routines, surgeries, mobile clinics and
schools, day care centers, residential care and nursing homes and ambulances. The focus of Care
Tech PLC is to provide their services with higher quality. Care Tech PLC has been growing over
the years as a health and social care organization, however, with the changing dynamics, there
are new opportunities coming that this organization can tap into by embracing advancements.
This report provides the planning and management of financial resources in the wake of
increasing demands.
This report begins with the pursuit of knowing the procedures of control and costing in
business. It would contain the incomes, budgeting, cost control, benefit analysis of cost,
expenditure, and break even, making of profit, forecasting and some fundamental software for
evaluation of financial information for organization.
Principles of Costing
Cost always has an association with its causes
It is well established that cost has direct proportionality with the cause. The analysis and
collection of the cost figures are commonly conducted according to the type of allocation and the
relationship of cause has an association with it (Arora, 2009).

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 3
Costing has abnormal charge
Abnormal cost is the one that makes up for the loss that is being caused during
occurrence of unfortunate events like theft or riot. The cost of production must not experience an
influence from this cost because it has nothing to do with the abnormal cost. There is a likelihood
of discrepancies appearing in the cost figures, hence misguiding the team of management about
the goals of cost control.
Incurrence followed by charge of cost
Considering the incurred cost means no cost exists and so at the cost center it cannot cater
the charges. For instance, it is occurring when the usual losses are borne through the units where
they have been incurring. The units that still have to pass must not be incurring these losses from
other units.
Contemplating future costs excludes past costs
It is recommended for the financial process that incurred cost in a certain period of time
gets handled in the same period of time. The cost reflecting past any period and postponing to the
future is financially incorrect. The consideration of costs from past in the future may give rise to
many problems in meeting the cost of future. The management is greatly burdened by the costs
of pasts under such situations. However, advertising could be an exception to this principle
where the incurred charges are resourceful.
The principles of double entry can store the cost archives and rest of the costs from
accounts control. Financial accounting also adapts this idea. The use of cost sheets and
statements is needed by costing for meeting the goals of cost ascertainment and control.

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 4
Principles of Business Control Systems
There is an appropriate system placed in this organization like any other organization for
discouraging embezzlement and corruption among the management as well as employees. The
managers’ integrity is a key to maintain the control in the organization from top to bottom of the
staff. Furthermore, the procedures of recruitment also comes under the influence of business
control system to hire only competent employees. Another great aspect of business control
system is the retention of services in long term. The organization provides appropriate
maintenance of records for all the transactions. The record management is a key process that
involves keeping the record managed, protected and a backup is also maintained. The upkeep of
the company’s assets is essence of the entire process that this organization keeps as a high
priority.
Information Needed to Manage Financial Resources
The culmination of the information required in managing the financial resources takes
place from the phenomena of organization fulfilling its requirements. The requirements of any
organization may be varying from auditing like financial activities, managerial activities,
requirements of labor and operational needs. These are the sources of information that dictate the
financial resource allocation. This data can be obtained with the help of consultants’ figures that
are available in the accounts and records that organization maintains such as cash books, income
statements, operational activities, financial statements and budget. The information like working
capital, debts and human capital are marinated by the organization.

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 5
Regulatory Requirements for Managing Financial Resources
The health organizations’ transactions in the US can be regulated by “Health and Social
act 2012”. The principles of formulation are laid down by this act. The contracts of health care
organizations and maintenance of the quality services are regulated by several other regulations
being imposed (Boehler & Randall, 2013). The principles of usually Accepted Accounting are
used as regulatory demands by the Care Tech PLC home in the management of financial
resources. These standards provide the practices and guidelines which are recognized in the area
of accounting at a global scale of standard financial documents like income statements,
statements of cash flow and balance sheets. The financial information reporting of the
organization is bound to follow these standards. In the absence of these principles, the staff of
health care organization would have been capable of exploiting financial information at their
own expense rather than that of company. Following are the activities that gets affected by these
accounting principles:
 Measurements’ recording in regular manner
 Disclosure of information about some activity
 Preparation and summarization of the economic information
 Economic activities’ measurement
 Utilization of the accounting’s conception along with adherence to above principles by
Care Tech PLC are similar to those of giant corporates.
Systems for Managing Financial Resources in Organization
The assessment of the systems meeting their expectations provide their evaluation of
financial resource management in organizations of health care. Through the systems and policies

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 6
of organizational management, CARE TECH PLC had been handling all of the potential risks in
its centers in the form of resource allocating processes meeting all the demands. The staff and
patients of the Care Tech are interested parties in such settings. Adherence to the management
guidelines can be carried out effectively by financial expediency and reduction methods of cost.
Hence, the goals of providing health care to a greater population becomes achievable.
Diverse Sources of Income That May Be Encountered In Health and Social Care
Profit shares from the past years, bank loans that have been secured and dividend are the
sources of incomes for Care Tech PLC. This organization had always remained focused on
increasing each year’s total dividend in parallel with the objective of movements for increasing
the encompassing earnings in each share. During 2015, a development of 5.2% was there, hence
the board proposed the ultimate dividend from 5.9% per share from the previous year.
Factors That May Influence the Availability of Financial Resources
The factors that can be influencing the financial resources’ availabilities are financial
instruments, health and safety, capital, marketing expenditures, operating expenditures and
merger and acquisition. Few years back, the Care Tech PLC acquired the combination of
businesses involving 28 properties through the health care fund of Quercus. Meanwhile, Care
Tech PLC attained acquisition through Roborpugh properties. Previously the acquisition of these
assists were on lease. This is one of the main factor limiting the financial resources of this
institute due to the funds spent in the process (Health, 2012).
The company’s risk of credit endangers the cash equivalent that makes the fund sourcing
from institutions as impossible for the organization. The credit risk’s policies of monitoring and
management may sometimes reduce the likelihood of probable clients receiving the credit due to

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 7
lack of monitoring. Levels are being set on the limit of credit in accordance with the sale values.
Sanctions are being imposed on financiers and investors due to credit risks as there is uncertainty
around the expectancy of getting capital recovered (Bella,2010).
There are several factors that may influence the availability of financial resources for
social and health care at Care Tech PLC. A number of financial risks and payments influence the
availability of resources. The revenue is generated by varying number of resources, however, the
advancement in the technology may increase the costs and leave an impact on the resources’
availability. Risk pooling can prove to be another factor where the risks of financial loss are
equally balanced between the funding bodies.
Different Types of Budget Expenditure
There are three types of budgeting known as planning, problem solving and
comprehensive budgeting that could be considered relevant to an organization providing social
and health care.
Comprehensive type of budgeting could also be referred to as master budgeting as it is
detailed and it is used when limitation exists on the expenditure. Acquisition that occurred few
years back resulted in the reduced income, and there is likelihood of similar situation occurring
again. Hence, it is needed that there is a framework designed for such situations that can make
sure that extra expenditures are being cut off. Furthermore, it can also provide the organization
with an opportunity to have an overview if the spending is in various projects. For comparing the
patterns of spending with the previous years this method of budgeting could be useful.

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 8
Planning budgeting is used by Care Tech PLC when the expansion programs are being
evaluated so that the capital can be set aside for the interests of its shareholders. For preparation
of dividend to proceed to the shareholders, this type of budgeting is being used.
When the control of capital in some parts of the company rises as a challenge, the
problem solving way of budget is put to use by Care tech PLC. The details of this type of
budgeting are more than the comprehensive type (Swayne, 2012).
The different types of budgets that are usually related to this organization include sales
budget, operating budgets and personal budgets. The services and treatments of the organization
are concerned by the operational budget and the goal should be to provide best of these. The
personal budget identify the expenses of the organization itself within the whole year and they
have to be controlled for managing financial resources effectively. Due to the advancement of
technologies, the use of human resources have been greatly influence and hence the
consideration of personal budget is prominent. The actual anticipation of the services being sold
are included in the sales budget.
How Decisions about Expenditure are made
The decision making related to the expenditures of budget involves the analysis of cost
benefit. The essential armory of decision making could be provided to the organization that can
facilitate the equitable and efficient resource allocation in the organizations. The analysis of cost
benefits can provide this organization with the advantages of smoothly running the reasonable
market and tendency to perform in the market where the distribution of income and wealth is
unacceptable.

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 9
In depth analysis of the demands of services from stake holders and their understanding
relates to the decision making of final resources’ spending. In the process of decision making,
effective management of the financial resources is a fundamental aspect. The current expenses
could be monitored to facilitate the estimation of future expenditures and hence effective
management of financial resources could be carried out. With the help of operational and
strategic planning, the values getting added to the services in line with expenses could be
considered for Tech Care PLC. Estimating several financial risks, project managing abilities and
calculations of the cost benefits could be considered among another aspects that can control the
process of decision making.
How Financial Shortfalls Can Be Managed
For managing the deficiencies in financial resources, the cash flow can be managed in an
effective manner, while the budgetary system is being developed in better ways than before. The
patterns of spending by different departments can be monitored by the company with the help of
management integrity, meanwhile impeding strict actions upon finding the senseless spending by
the staff of organization. Such issue would be confronted by policy of acquisition by Care Tech
PLC because it will be reducing the cash flows. The organization can accomplish financial health
by the management of cash flow being optimized (Bella, 2010).
The Actions to be taken in the Event of Suspected Fraud
There is an “Act of Accountability and Portability” for health insurance that can handle
with the cases of frauds in health care organizations. Fraudulent is penalized by legislation as it
is a federal crime, by a charges of panel code that can lead to the imprisonment term of 10 years
or so. The culprits are supposed to be reported to the responsible authorities of government.

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 10
Fraud in health care is a criminal offence that leaves impact not only on the offended individuals
but also on the institutions of government because the health care regulations have been violated
in such cases that halts the maintenance of healthier populations. The monitoring system has to
be effective enough to prevent such incidents of fraudulent being an important institution of
health care (Kolb, 2010). The various regulating bodies includes HMRC for tax regulation, Care
quality commission (CQC) for maintaining the quality and litigation authority of NHS.
Budget Monitoring Arrangements in a Health or Social Care Organization
The monitoring of budget deals with the efficient strategy imposition and planning, hence
can cater the organizations’ expectations. Forecasting of cash flow comes under budget
monitoring (Kolb, 2010). The important parts of the processes involve:
 Making sure the monitoring system of the internal budget are letting the targets being
accomplished
 A coordinated process dictating the revision of internal budgets
 The gaps in the estimates of budget are managed by organization with the help of
information forecast that has been provided
 Provisions of internal budget are improved and reviewed with the help of timely and
accurate monitoring of the processes associated with budgeting
 The areas of improvements are identified.
The organizations’ performance can be tracked through budget monitoring with the
development projects and capital expenditures. Regular reporting of the projects that are
currently running can offer important information about the impacts that activities of project may
leave in present or the coming future (Tilak, 2003).

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Information required to make Financial Decisions Relating to a Health and Social Care
Service
Records maintained by the financial department of organization along with cashbooks,
income statements and financial statements are used by financial controllers at Care Tech PLC.
Prior to any decision making for avoiding of overstating records, statements and losses, a sound
understanding is needed by financial controller because incorrect information could be given by
them that brings negative consequences for entire organization. In addition to the maintaining of
financial accounts by the department of finance, the human resource department can be keeping
additional information about the work force. Furthermore, management is required to maintain
records related to the patients at Care Tech PLC. For example, types of diagnosis and infections,
the methods and date of diagnosis being administrated etc. Such collection of information could
be used for decision making for recording the events and incidents that are recurring such as
certain patients, diagnosis and diseases (Johnshon, 2006).
Relationship between a Health and Social Care Service Delivered, Costs and Expenditure
An association exists between the services of social care and health care in the context of
expenditures and costs. The information being followed can analyze the services of health care in
the light of information obtained from the staff, and the expenditures that are related to them.
A correlation exists between the services offered in every year by the organization and
the number of its employees, because there has been a significant rise in the patients and
employees turn out. This can lead to the increasing costs that organization has to bear for
accommodating the greater number of patients along with the needed services. With the passage
of time, in association with financial statements organization illustrates prominent growth as

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE 12
there are expanding capacities for services, merger acquisition, various departments and higher
generation of revenues (Arora, 2009).
How Financial Considerations Impact Upon an Individual Using the Health and Social
Care Service
Affordability of an individual in terms of his income, standard of life, and the costs
related to the delivery of health care services, the extent to which he is serious and the kind of
disease leave an impact on the financial consideration of that individual. There may be
unavailability of equipment in some rare cases which also counts as a financial consideration in
this context. If the services are being made expensive, it would become difficult for those to have
an access to them even in the time of need due to lack of financial resources. So, for maintaining
appropriate and accessible services to the patients, the financial considerations of individuals as
well as organization become equally relevant (Kolb, 2010).
Ways to Improve the Health and Social Care Service through Changes to Financial
Systems and Processes
At Care Tech PLC, the social and health care services could be improved in a number of
ways when taken in the context of financial process and system. Foremost requirement from the
organization is that it makes sure the principles of general accounting are being maintained along
with the legislation that is needed to deal with the financial process and system. The accuracy
and effectiveness of the procedures and systems must be maintained so that the situations, where
data or information gets misinterpreted could be avoided. Furthermore, the control system has to
be employed in effective and efficient manner to improve the compliance with principles.
Though, the changes that have been made must deal with the needs of patients without creating