Analysis of Financial Resources in Silloth Nursing and Care Home

This report provides a comprehensive analysis of financial resource management within the context of Silloth Nursing and Residential Care Home. It covers key aspects such as costing principles, business control systems, and the management of financial information. The report examines various income sources for health and social care organizations, including government grants and donations, and discusses factors influencing the availability of financial resources. It explores budget expenditures, including sales, operating, and personal budgets, and analyzes decisions about expenditure within the care home. Furthermore, the report addresses the management of financial shortfalls, fraud detection, and budget monitoring arrangements. It also delves into financial decision-making, the relationship between care service delivery, costs, and expenditure, and the impact of finance on individuals in health and social care. Finally, it suggests improvements in health and social care service delivery through changes in financial systems and processes.

MANAGING
FINANCIAL
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Costing related principles and business control systems related principles.....................1
1.2 Managing financial resources and information required.................................................1
1.3 Managing financial resources and regulation...................................................................2
1.4 Financial resources management in a health or care and a system ................................2
TASK 2............................................................................................................................................2
2.1 Health and social care and its income sources...............................................................2
2.2 Availability of financial resources and factors influence.................................................3
2.3 Budget expenditure and its types in health and social care organizations......................3
2.4 Decisions about expenditure within Silloth Nursing and Residential Care Home..........3
TASK 3............................................................................................................................................4
3.1 Explanation about management of financial shortfalls ..................................................4
3.2 Event of suspected fraud and taking actions....................................................................4
3.3 Arrangements in a health or social care organization related to monitor budget............4
TASK 4............................................................................................................................................5
4.1 Financial decisions of health and social care service and required information ...........5
4.2 Care service delivered, costs and expenditure and relationship among them.................5
4.3 Individual in health and social care service and impact of finance................................5
4.4 Improvement in health and social care service through changes...................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Silloth Nursing and Residential Care Home is one of the best care homes of United
Kingdom. As financial resources are essential for every profitable or non profitable business
organization. Main elements which are considered in analyzing financial resources like costing
and budgeting so that forecasting can be done for future plan to get better results
(Altenburg and Pegels, 2012). In the following report different resources which are foundation
of income in health and social care home will be discussed. There are many factors which plays a
role of game changer in getting availability of economic sources for operating business in the
long term. Some expenditures related to budget are also evaluated or audited in social care
organization like the mentioned care home.
TASK 1
1.1
The term costing includes system and belief for determining the cost of goods and
services. There are six principles of costing and business control system to evaluate cost and
resources so that effective services can be delivered by Silloth Nursing and Residential Care
Home. These principles include stakeholder engagement in which clinical staff, consultants,
nursing staff ,shareholders and non finance staff (Ameen, 2011). They all should involve in
costing process to control any type of waste of resources. Another principle is data accuracy
which includes perfect ratio of input and their consumption. All types of expenditure or figures
like number of patients, period of stay, length of stay are mentioned in general ledger and trial
balance. Some other principles are purchasing and expenditure,budgetary control system,
personnel or staff control.
1.2
Management of financial resources is done by analyzing some essential information. The
in formation is gained through balance sheet which is the final account containing assets and
liabilities of Silloth Nursing and Residential Care Home. This statement can be monthly,
quarterly and yearly. Another information can be attained by cash flow statement in which cash
inflow and outflow is calculated on daily basis. It can be done for one financial year also
containing investment and transactions. Financial resource can be estimated through analyzing
cash from buying or selling some equipment ,cash received from service users or patients rent,
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buying or shares and inventories purchase. Another information which must be evaluated to
manage financial resources in an effective way includes competitive factors,legal requirements
and changes in policy and procedures of the social care organization.
1.3
The process to monitor and control the atmosphere of health and social care by
government or legal authorities is coined as regulation. Main purposes of regulatory
requirements are minimizing financial crime , establishing honesty and equality ,consumer or
service user protection,regular accountability and efficient structure within Silloth Nursing and
Residential Care Home (Aras, Aybars and Kutlu, 2010). There are many regulatory authorities
which play a vital role to mange financial resources in the long term. For example company act
1985 which makes it mandatory fro organization to publish and prepare company account on
yearly basis. Care quality commission makes sure the standard of care tom patients or users.
HMRC as Her Majesty's Revenue and Customs works as a collectors of taxes from business
organizations in United Kingdom.
1.4
In Silloth Nursing and Residential Care Home, there has be an efficient system to
manage financial resources in the long term. Every department of the organization is budgeted
whether it is information technology system or auditing system. Budgeting of these two systems
can avoid over expenditures and encourage personnel to gain desired budgeting targets in time
with accuracy. An audit system is also be used to monitor and investing every single financial
activity to get an useful final reports. Payment system is evaluated to control wastage of money
on unnecessary expenditures on service delivery to users or patients (Carballo and Doménech,
2010). Thus these above crucial small systems are analyzed to create an cost effective system as
a whole.
TASK 2
2.1
Although Silloth Nursing and Residential Care Home has the main purpose to take care
of older people by nursing care services, it needs income for different sources to provide these
facilities to its users. One of the most important sources of income is government grants in which
government provides funds to continue these services fro social welfare. This source ensures
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employment and maintenance of care of older people. Another source of income is donations by
any person within or outside of the organization. Private self funding is another source for
sufficient income. Local authority and primary care trust are also contributing in increasing care
homes and its services fro betterment of society.
2.2
Factors are like game changer in health and social care industry (Epstein and Buhovac,
2014). One of the major factors,economic situation at local as well as national level affects the
availability of financial resources. If there is slowdown in the market then less finance will be
gained from resources. Another factor which has impact on availability of financial resources is
ownership of the organization. If health and social care home is privately owned then less
financial support will be provided like government grant or loan for future. Location of the
Silloth Nursing and Residential Care Home is also another factor which can fluctuate resource
availability .For example if location is far from the city then ,difficulty in carrying resources to
the organization.
2.3
There are many types of budget expenditures in health and social care organizations. One
of these budget expenditures is sales budget in which price of care services is calculated. As the
Silloth Nursing and Residential Care Home is located in good geographical area of United
Kingdom. It leads to accomplish the goal to protect its service users. Another budget expenditure
is operating budget in which services and equipment used in delivering these services are
included to control expenses (Hay, 2010). Another type of budget is personal budget in which
human resource expenditure is analyzed.
2.4
The organisation takes decision about its several expenditures are based on understanding
of business house needs and detailed analysis. It estimates the future expenditure by evaluating
current expenditure on different activities to deliver the best care services to its users in the long
term. Silloth Nursing and Residential Care Home estimates many financial risks which can affect
the future expenditure for patients and equipment. The organization makes sure that its decision
will improve the health of its patients especially old people.
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TASK 3
3.1
Silloth Nursing and Residential Care Home may face some financial shortfalls which can
hinder the operations related to care services for users. Then organization will mange these
situations by identifying and controlling them in time. There are three major methods which are
used like prioritization, Virement, managing cash flow,credit facility management and
controlling all financial resources (Remund, 2010). The organizations prioritize its projects from
most profitable to least profitable. It can lead to more concentration on most viable projects in
future and decrease expenditure in less useful projects. Virement method includes transferring
from one department to other department to minimize wastage of fund.
3.2
Being a well known and large enterprise, Silloth Nursing and Residential Care Home
may find a suspected fraud within the organization. Fraud can include false disclose of annual
financial report to HMRC. In that situation,it can conduct a fraud management control system so
that the fraud can be detected,prevented by appropriate actions. Risk assessment is an effective
method which helps in detecting and preventing risks which may occur and their types. Code of
practice is also implemented and a monitory official is appointed on temporary basis to find any
issue related to fraud or any malpractice by staff (Renz, 2016). Monitory audit and financial
annual records are investigated deeply to manage any suspected fraud.
3.3
Budget monitoring is a method to manage financial resources in an accurate way. Some
of budget monitoring methods are balance sheet,cash flow figures and spread sheets which are
analyzed to identify problem or any type of irregularities in financial aspects. The manager can
check every single entry of inventory and stock to make an effective budget in Silloth Nursing
and Residential Care Home. Budget monitoring arrangements help in detecting and reducing
any kind of mistakes in final accounts like trial balance, profit and loss account and balance
sheet.
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TASK 4
4.1
One of the most crucial part of Silloth Nursing and Residential Care Home is financial
decisions to improve service delivery in the long term (Rockey and Collins, 2010). First
information is required related to cash flow statement in which cash receivables and expenses are
to be analyzed. Another information about cost sheet and income statement is also needed to
make strategic decision by manger of health and social care organization. Final accounts are also
required to be monitored at regular basis like profit and loss account. Break even analysis of
care services provided to users especially old people .Thus these all above information is
4.2
Care services of Silloth Nursing and Residential Care Home depend upon many factors.
For example, if quality of services is not up to the mark then appropriate actions for
improvement will be taken. For improvement some expense will be occurred and consequently
increase the cost of services for users in future. The care service should be suitable and well
organized but it is not necessary to spend a lot of money to get maximum service user
satisfaction. So strategic analysis and monitoring is useful to get balanced amount of expenditure
and cost for comfortable atmosphere and best care services.
4.3
Individual or service user is a key part of Silloth Nursing and Residential Care Home. So
there is need to have appropriate financial support to get better service in the long term.
Investment should be made on worker professional development so that they can provide highest
level of care services especially old people which need most of the care and attention (Shim,
Barber and Serido, 2010). Effective finance should be spent on regular monitoring and
supervision for more competent and skilled staff of the organization. Appropriate financial
expenditure can help in sustain adroit human resource or workers to increase quality of care
services and service user can be satisfied with the friendly and positive atmosphere.
4.4
Even in Silloth Nursing and Residential Care Home, there are best care service provided
to its patients and residential. But there is still scope of improvement to get more betterment of
its users through some major changes in financial system and processes. One of the important
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ways to improve service is payment by result in which government transfers the responsibility to
care organizations. So that that can give their best for users and maximum satisfaction can be
achieved. Some reports include changes in charges in NHS which is related to migrants under
migration bill (Simonovic, 2012). These changes can makes it possible to provide services to a
lot more users. Another way to improve is equity and excellence in which new innovative ideas
has been introduced. These innovation in payments are based on performance and results.
CONCLUSION
From the above report it can be concluded that every business organisation even in
health and social care sector, needs to arrange effective resource of income or finance survive in
the long term as well as to provide best services to its users. Company like Silloth Nursing and
Residential Care Home tries to control financial resources c0pnsumptions so that maximum
utilization with minimum quantity of them can be possible. By budgeting and controlling
shortfall of resources can be avoided.
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REFERENCES
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and opportunities.Library Management.32(3). pp.171-182.
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relationship between corporate social responsibility and financial performance in
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Carballo-Penela, A. and Doménech, J.L., 2010. Managing the carbon footprint of products: the
contribution of the method composed of financial statements (MC3).The International
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Epstein, M.J. and Buhovac, A.R., 2014.Making sustainability work: Best practices in managing
and measuring corporate social, environmental, and economic impacts. Berrett-Koehler
Publishers.
Hay, J., 2010. Too good to fail: Managing financial crisis through the moral economy of realty
TV.Journal of Communication Inquiry.34(4). pp.382-402.
Remund, D.L., 2010. Financial literacy explicated: The case for a clearer definition in an
increasingly complex economy.Journal of Consumer Affairs.44(2). pp.276-295.
Renz, D.O., 2016.The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Rockey, S.J. and Collins, F.S., 2010. Managing financial conflict of interest in biomedical
research.JAMA.303(23). pp.2400-2402.
Shim, S., Barber, B.L. and Serido, J., 2010. Financial socialization of first-year college students:
The roles of parents, work, and education.Journal of youth and adolescence.39(12).
pp.1457-1470.
Simonovic, S.P., 2012.Managing water resources: methods and tools for a systems approach.
Routledge.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012.Strategic management of health care
organizations. John Wiley & Sons.
Wilhite, D.A., Sivakumar, M.V. and Pulwarty, R., 2014. Managing drought risk in a changing
climate: The role of national drought policy. Weather and Climate Extremes.3. pp.4-13.
ONLINE
Sarah Brumley,2017. Role of Financial Management in Health Care. [Online]. Available
through:<http://smallbusiness.chron.com/role-financial-management-health-care-
76263.html>. [Assessed on 8th June 2017].
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