Analyzing Financial Resource Management in Health and Social Care

This report provides a detailed analysis of financial resource management within the health and social care sector. It explores the principles of costing and business control systems, identifies the information needed for effective financial management, and explains the regulatory requirements that must be satisfied. The report evaluates systems for managing financial resources, discusses diverse income sources, analyzes factors influencing financial resource availability, reviews different types of budget expenditure, and evaluates expenditure decision-making processes. Furthermore, it emphasizes the importance of monitoring budget expenditure, identifies information required for financial decisions, analyzes the relationship between service delivery, costs, and expenditure, assesses the impact of financial considerations on individuals, and suggests ways to improve health and social care services. The report highlights the critical role of financial planning and management in ensuring the efficient and effective delivery of health and social care.

Unit 14
MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE
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Contents
Task 1........................................................................................................................................................3
LO1: Understand how systems are used to manage financial resources in health and social care..3
1.1Explain the principles of costing and business control systems that may be adopted in Care
South Group care home.......................................................................................................................3
1.2 Identify the information needed to manage the financial resource for Care South Group
care home in 2013/14 financial ending?.............................................................................................4
1.3 Explain the regulatory requirements need to be satisfied while managing financial
resources in Care South Group care home?......................................................................................5
1.4 Evaluate the systems for managing financial resources in CareSouth Group care home......6
Task 2........................................................................................................................................................7
LO2: Understand the role of planning in the management of health and social care budgets........7
2.1 Discuss the diverse sources of income that may be encountered in health and social care.....7
2.2 Analyse the factors that may influence the availability of financial resources in health and
social care organizations......................................................................................................................9
2.3 Review different types of budget expenditure in health and social care organizations.........10
2.4 Evaluate how decisions about expenditure are made within a health or social care
organization........................................................................................................................................11
Task 3......................................................................................................................................................12
LO3: Understand the importance of monitoring budget expenditure in health and social care
organizations..........................................................................................................................................12
LO4: Understand how systems and processes for managing financial resources...........................14
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4.1 Identify information required to make financial decisions relating to a health and social
care service..........................................................................................................................................14
4.2 Analyse the relationship between a health and social care service delivered, costs and
expenditure.........................................................................................................................................15
4.3 Evaluate how financial considerations impact upon an individual using the health and
social care service...............................................................................................................................16
4.4 Suggest ways to improve the health and social care.................................................................17
References...............................................................................................................................................18
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Health and social care system require a lot of planning and financial supply to work efficiently. In this
unit, it is being examined about the financial resource being managed to control the health and social
care. The health issues are rapidly increasing day by day but the services are not that much good that is
why a country has to make the budgeting system in health and social care how it is made and how it is
implemented in actions. In this essay how the management of financial resources are set up is discussed
it evaluated that how the financial decisions do are made and how the budgets are monitored. With the
help of accounting reports, the matter can understand easily.
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Task 1
LO1: Understand how systems are used to manage financial resources in health and social care
In this context, it will be examined the income, budget, forecasting, and expenditures, study the balance
sheet to evaluate current statistic of financial resources for health and social care. It is also being
studied about various regulatory requirements which need to be satisfied while managing financial
resources. Along with the legislative structure who controls the rule and regulation for the health and
social care organization.
1.1Explain the principles of costing and business control systems that may be adopted in Care
South Group care home.
The costing and business control system involves the information regarding costs came to run the
organization, the budget requires for proper functioning, forecasting of the future profit, the income
of the organization after deducting the expenditure, expenditure of all the resources to run the
organization and cost-benefit analysis for making the business decisions (Kovaleva, et. al., 2016).
This is done by the organization by setting up the cost center which is responsible for making the
operational process more efficient. A cost center is not directly contributing to the profit but has the
key role in making a profit. The cost center analyses the records and then evaluate how the whole
operational process could be more efficient. The information of business control system helps for
setting up competitive tendering, analyze the income and expenditure, and evaluate the profit. This
information is quite large and the organizations manage this information by using various
accounting and finance software available in the market (Namazi, 2013). This software gives
accurate information regarding cash flow and helps to make a decision regarding health and social
care.
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1.2 Identify the information needed to manage the financial resource for Care South Group care
home in 2013/14 financial ending?
To manage the financial resource for Care South Group care home the organization require a lot of
information for its working this information include business costs came for buying medical
equipment and machinery, cost came to establish the infrastructure, cost came to employ the worker
for administration, core work, management, and security, running cost came for buying consumable
products, income of the organization. The organization also requires funds for proper functioning
which is accumulated through banks and market. The organization has to pay back this fund to the
bank along with the interest. The information about the cost of interest on the debt is also
mandatory to manage the resources. To manage the financial resource the organization has to keep
a check on the sources of the income, various policies set up by the government to control the
health and social care policies, the customer appeal from the organization, another legal
requirement to be fulfilled by the organization and the expenditure of the organization (Hansson, et.
al., 2017). The various expenditures of Care South Group are residential care, interest payable on
bank loans, domiciliary care, interest on pension scheme liabilities and support costs.
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1.3 Explain the regulatory requirements need to be satisfied while managing financial resources
in Care South Group care home?
The government of any country set up some rules and regulation for running the health care sector
those regulations is to be fulfilled by the organizations to satisfy legislative structure (Hansson, et.
al., 2017). These regulations set up the guideline for the working of the organization and if any
organization fails to fulfill the regulation then the regulatory team could take action against the
organization as the regulatory team is responsible for proper implementation of the regulation. The
government first make or modify the law for all the organizations and set up an official team who is
responsible for implementing the law this team is also responsible for generating awareness among
the organizations. The government also set up legislature structure for enforcement of the laws.
This structure gives a verdict about the law abolition by the organization. The organization could
also appeal to courts if any of its rights are violated.
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1.4 Evaluate the systems for managing financial resources in CareSouth Group care home
For the proper function of CareSouth Group, the organization requires a proper managing team to
manage its financial resources. The managing team is responsible for manage the sources of
income; the sources of income for CareSouth group are residential care services, domiciliary care
services, investment income, and some other income. The managing team also manage how the
budget is set up, cost centers, and administration of budget, audit requirement and accountability.
The managing team also control the administrative budget which is detailed information on the
financial plan of any business for an upcoming period (Lakis and Giriunas, 2012).
The various systems that could be used for managing the financial resources are cost control system
used to check the cost of various expenditure, a budgetary control system to manage the budget of
the organization, IT control system for IT solutions, resource management system for managing the
resources and financial control system for financial management (Rajan and Francis, 2013).
There is a decline in the total income of Care South group from the session 2012/13 to the session
2013/14. During this same period, the organization pays back some of its long-term liability but the
current liability has increased by 0.1 million pounds. There is also a declination in the total
expenditure of the organization and the net assets of Care South increases.
The data above shows that the company is investing a lot of money to increase its assets and the
company has also paid back its long-term liabilities due to which the company expenditure on the
interest of loans has decreased significantly and the company gain more money to spend on
infrastructure which increases its fixed assets (Lojanica, 2015).
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Task 2
LO2: Understand the role of planning in the management of health and social care budgets
Health and social care is one which is necessary for a human being first priority should be wellness no
health issues so that everyone can do their work effectively with the greater efficiency for this the
budgeting is an important factor. Examine all the financial consideration of an individual is using the
services of health and social care.
2.1 Discuss the diverse sources of income that may be encountered in health and social care
Health and social care sector has many financial sources available in any organization. An organization
has earned various types of incomes from various sources such as investments earned, rent, and sales
during an accounting year, dividends, and interest on investments and so on (Namazi, 2013). If the
income increases of any organization the liability automatically decreases.
Public – public sources of income are incurred from those which are compulsory and easily paid for
the need of money for care. The public is spending money on health care according to the resources;
population needs and based on priorities of a country. UK public is spending on health more as
compare to the other countries (Hansson, et. al., 2017).
Private- Private Source is helpful in all kind of health systems health insurance, self-contribution in the
commercial decision, funding for health services. Private companies which support health and social
care like expenditure earned by the private companies and the main problem is that the fees are very
high so that all kind of people can’t afford it so that is the reason the budgeting is made under the head
health and social care so all things are done in well-mannered and every person in the country can
afford it (Kovaleva, et. al., 2016).
Voluntary funding- Healthcare is the voluntary services and they are in various parts of education,
welfare etc. in voluntary services to another company’s health security and they also charge for this.
WHO (World Health Organization): It is the organization which is widely famous in all over the
world in this project all the health care issues are resolved by the team on the international basis
(Hansson, et. al., 2017). WHO plays an important role supporting the health issues in many ways like
in financial issues, medical issues, technical issues and other basic issues they control all the diseases
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they used to arrange events in the countries for helping the people who are facing health issues.
(Mirowsky, 2017).
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2.2 Analyse the factors that may influence the availability of financial resources in health and
social care organizations
There are various factors which influence the availability of financial resources such as:
1. Free health check-ups
2. charitable activities
3. Tax payment and so on.
The change in the financial decisions of the different organizations every organization has different
objectives and goals. When a person decides to do business together it plays a negative impact on
financial resource due to which things may change. It requires money and it directly influences the
health and social care organization (Bowling, 2014).
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2.3 Review different types of budget expenditure in health and social care organizations
Setting up of budgets in the case of social and health care organizations -By setting up of budget
expenditure it is so easy to study about the future goals and objective, financial budget, operational and
sales these are the different types of budgets. In health organizations, many types of budgeting are used
to understandabout the financial condition of the institute. But the budget is made to achieve and
monitor the daily basis activities done in a specific manner but in many countries, they are targeting
higher fees in health sector like the medical fees are increasing (Mason, et. al., 2015).
 Fixed cost and variable cost budget
 Administrative cost budget
 A raw material or material consumed the budget
 Expenditure in marketing budget (Kovaleva, et. al., 2016)

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2.4 Evaluate how decisions about expenditure are made within a health or social care
organization
The determination about the parliament committee and health issues the problem is occurring in the
funding situation in which field the company can invest and how it will directly get implemented and in
return the problem gets solved for this, it is necessary and very beneficial that to make a plan and take a
decision how the work will get done in which field the company has to give funds and how the
situation will be get improved in a positive manner or it may get reduced the problems occurring in the
health and social sector. Taking a decision is a mental exercise and for this, it is necessary to have some
mental capacity one can understand all the information given to them and retain it till the end so that it
may help in taking a decision.
After studying all those reports and analysing about the matter social and health care practices so many
institutions playing very important role in promoting and giving support to healthy living and healthy
food so the health of the country may always stay good and the people in the country can give the
contribution in growing the economic condition of the country. It is also studied about the budgeting in
health and social care is important because with the help of budgeting the decision of income and
expenditure can be determined easily without any complications or it is already decided how much
money can be spent or on which sector (Kovaleva, et. al., 2016).
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Task 3
LO3: Understand the importance of monitoring budget expenditure in health and social care
organizations
This essay explains the importance of budget expenditure to be incurred in the health and social care
organization which is named as Care South Group care group. The information should be based on
the cash flow, spreadsheet data, controlling the costs and training the needs of the essentials of the
organization. The organization also deals with the financial shortfalls which are related to the priorities
of the reserve funds, sources of the alternative external income and most probably the implications for
the individuals within the same service of the health and social care.
3.1 Assuming there was a financial shortfall in CareSouth Group care home; explain how this
situation could be managed?
It is too common fact that the health and social care organizations face a financial shortfall in the
organization and same happened with the organization popularly named as Care South Group care
home. The organization faced a financial shortfall and to get rid of the problem the organization can
adopt a lot of measures like that of there should be the effective and efficient management of the cash
flow by the skilled ones in the organization whether it is inflow or the outflow (Rajan and Francis,
2013). The organization should have a proper analysis of the market strategies and accordingly monitor
and fix the aims and goals of the organization. The organization should also have a view of the sources
of gaining a higher level of profits and income in the organization. It should give its priorities to the
reserve funds and sources of the alternative external income in the organization which would solve the
problem of shortfalls. Also, there should be the optimum utilization of resources in the organization
and it should have the minimum wastage of resources as resources are too beneficial for the Care
South Group to care home (Watkins, et. al., 2017).
Many times, there occurs the problem of financial fraud in the Care South Group care group. But the
organization could use a lot of measures and actions to solve the issue of financial frauds in the
organization. The first and the foremost task which the organization has to do are to identify the risk
factors in the organization. If there would be a clear identification of the risk factor then it would be
easy for the business operator to define the ways to get rid of the issue. Along with this, there should
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the availability of trained and accurate authorities that would help the entrepreneurs in getting out of
the risk factor (Odeyinka, et. al., 2012).
3.2 Explain what action you would take if you suspect occurrence of financial fraud in your
organization?
In order to have proper arrangements of the budgets, there are made a lot of arrangements in the Care
South Group care group. The first and the foremost work of the organization are to prepare the budget
statement for the next financial year so that the decisions could be made accordingly analyzing the
needs and wants of the organization. The company could fix a certain limit of time for the preparation
of the budget in the organization and should ensure that the budget preparation should be completed
within the specified time period. There should not be any delay in order to maintain the efficiency and
effectiveness of the organization. The financial statements of the company should go under a proper
management by the authorities (Rajan and Francis, 2013). Also, an important thing that should be in
consideration that while making the financial statements and preparing the budgets for the current year
there should be proper consideration taken from the previous year's budgetary statement.
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3.3 Evaluate budget monitoring arrangements in CareSouth Group care home.
Along with the availability of the trained officials, it is also important for the employers that they
should also teach their team of employees to deal with the situations of the situations of extreme risks
(Odeyinka, et. al., 2012). They should avoid involving in any of the free camps related to the health
care services in their organisations as many a times these type of health care services are more meant
for the purpose of gaining and collecting information about more and more people in order to fill
various types of forms which would be only beneficial to the private authorities that are operating in
the market and causing to the problem of a lot of frauds in the market.
This report clearly explains the ways and methods how the health care group named as Care South
Group care group handles and monitors different expenses related to the budget system in the
organization. It analyses the effective and proper use of resources in the organization. It also explains
the details regarding making the financial statements and judging the budgetary documentations and
competing with the risk factors in the organization (Odeyinka, et. al., 2012).
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Task 4
LO4: Understand how systems and processes for managing financial resources
The main aim of the managing financial resources is to make understand in clearly about the
management of the financial resource. And also do practicing of non- financial techniques so everyone
can understand easily about the study of accountancy it is used in more practice when colleagues can
communicate about that make things clear in a better way. Financial management includes many types
of decisions like pricing decision, dividend decisions, and investment decisions and so on.
4.1 Identify information required to make financial decisions relating to a health and social care
service
The financial decisions are made when the company has the records and data of all the financial and
non-financial reports. The financial data informs all the transactions done by the company in an
accounting year (Namazi, 2013). And if talk about the health and social care it requires allotting of
money and from which source it is coming in the company it is essential to be considered in the books
of records. It includes medicine costs, maintenance, wages of labor and remunerations to the staff,
equipment’s required for emergency services and etc. The income of the health and social care sector
the income earned by the government, donations were given by the public, some special programmes
and events happened in that sector and the calculation of all these things are required to make financial
decisions (Bowling, 2014).
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4.2 Analyse the relationship between a health and social care service delivered, costs and
expenditure
There is a good bond between the health and social care services delivered or cost and expenditure
(Lojanica, 2015). In health and social services given to the patients it should be nice so that people
come again and also refer their relatives about that the Care South Group care home to focus on the
best services to the patients in this organisation the take care of the patients done in very good manner
like tests, operations, surgeries, medical facility and requirements and other types of equipment
required for the patients need and want. And for all these things cost is an essential requirement it
cannot be done without cost. If the organization cannot expend money on products and services are
required for health and social care sector then it will give a very bad services and the result would be no
more growth in the organization. (Ginter, 2018)
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4.3 Evaluate how financial considerations impact upon an individual using the health and social
care service
Individual considerations depend upon many primary things like the age, employment status, family
income, and members consist of one's family all these things matters because it defines the financial
status of an individual. Every individual has the sight to share tier opinions about the health and care
services and also support it (Odeyinka, et. al., 2012). According to an individual, the health and social
care bring like a choice but it is necessary it also increases the care delivery in the markets who offer
the great deals with great services. It includes that how much an individual has to pay for the services
and how much they get in return it is all based on the choice of an individual.
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4.4 Suggest ways to improve the health and social care.
There are many ways to improve the health and social care services – in health sector the staff
accumulated in the health sector it is necessary that it could be well trained and available and motivated
staff that can handle all the pressure given by the higher authorities and provide care to the needed
patients.
And a special care for the women and children according to world health organization (WHO) they
should have the standard records of each and every patient with the accurate and complete data. Treat
patients nicely in an efficient manner inform them about care services. Cost estimation per patient is
also important to tell the customers according to the fee of an individual it is decided which type of
services are to be given to that patient
The income and expenditure incurred in this work and how it gave the impact on other societies and
organizations. Accounting reports help in the analysis the data clearly and in effectively understandable
by everyone no confusions. The financial reports are necessary to make because it helps in comparing
the work from the past experiences and analysis the feedbacks and work on it. After studying the all the
above matter it is concluded that the financial resources with cost expenditure are the essence of
management of health and social care sector. (Mirowsky, 2017)
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Health and social care system are the groups of organization which are responsible for providing the
health care and social services across the country. In this report, it is mentioned that how health and
social care sector works with the financial support which type of services are to be given to the
customers in the organization Care South Group care home. It reveals the importance that these
expenditures should be monitored at the right time in every organization and especially in those which
deals with the health and social services.
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