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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