Financial Resource Management in Health and Social Care - Report

This report provides a detailed analysis of financial resource management within the health and social care sector. It begins by explaining the principles of costing and business control systems, identifying the necessary information for managing financial resources, and outlining regulatory requirements. The report then evaluates systems used for managing financial resources within healthcare organizations. Task 2 explores diverse income sources, analyzes factors affecting financial resource availability, reviews budget expenditure types, and evaluates expenditure decisions. Task 3 focuses on managing financial shortfalls, addressing fraud suspicion, and evaluating budget monitoring arrangements. Finally, Task 4 identifies financial decision-making information, analyzes cost-expenditure relationships, evaluates financial impacts on individuals, and suggests methods for improving services through financial system alterations. The report concludes with a synthesis of the key findings and recommendations for effective financial management in the health and social care context.

Managing Financial Resources
in Health and Social Care

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining principle of costing and business control systems...............................................1
1.2 Identifying information required for managing financial resources......................................1
1.3 Explaining regulatory requirements for managing financial resources.................................2
1.4 Evaluating systems for managing financial resources with context of health care
organization..................................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Discussing diverse source of income which might be encountered in social or health care. 3
2.2 Analysing factors which influence availability of financial resources in Shilloth Nursing
and Residential care home..........................................................................................................4
2.3 Reviewing various types of budget expenditure in health and social care organization.......4
2.4 Evaluating decision about expenditure in health and social care organization.....................5
TASK 3............................................................................................................................................5
3.1 Explaining management of financial shortfalls.....................................................................5
3.2 Explaining actions taken in event for suspecting fraud.........................................................6
3.3 Evaluating budget monitoring arrangements.........................................................................6
TASK 4............................................................................................................................................7
4.1 Identifying information required for taking financial decisions............................................7
4.2 Analysing relationship among cost and expenditure and health and social care service
delivered.......................................................................................................................................7
4.3 Evaluating financial considerations which impact on individual with application of health
and social care service.................................................................................................................8
4.4 Suggesting methods for improving health and social care service via alteration to financial
systems and process.....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Managing financial resources in social and health care plays key role in accomplishing
efficiency. The present report will give brief discussion about system should be used for
managing along with function of planning in health and social care services. It will be reflecting
importance of budget expenditure and process for influencing social and health care services.
TASK 1
1.1 Explaining principle of costing and business control systems
Costing is replicated as process of allocating cost to specific element of business which
should be stated as services, department or product unit. For the purpose of developing effective
costing system it must follow six principles which are:
 Consistency: It must be capable to produce similar outcome when it is applied over and
over again (Alles and et.al., 2018).
 Stakeholder management: Silloth Nursing and Residential Care Home must be able for
determining and engagement of stakeholder in costing.
 Transparency: The costing process must be open, frank and honest as well.
 Data accuracy: It must ensure that data which is used in costing system should be
accurate, which is linked to accuracy and consistency in costs.
 Causality and objectivity: The system could be capable for establishing causality
among cost incurred and activities.
 Materiality: the most effective principle for Silloth Nursing and Residential Care Home
to frame costing system along with capability for tracing each cost of activities and
materials.
Business control system is replicated as principle, policies and procedure established for
enabling managers to evaluate and monitor performance of resources of Silloth Nursing and
Residential Care Home. There is presence of various business control system which helps Silloth
Nursing and Residential Care Home to manager its financial resources in better aspect such as
Financial accounting and cost management system (McColl-Kennedy and et.al., 2017).
1.2 Identifying information required for managing financial resources
The Silloth Nursing and Residential Care Home has huge requirement of various kinds of
information for managing its resources in efficient aspect. There is need to get information
related to assets like vehicles building cash at bank or in hand, furniture and fitting etc.
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Generally, this information can be accessible in easier aspect as it is comprises in various
statement. With context of this information, Silloth Nursing and Residential Care Home could
gain better position for purpose of allocating it in effective aspect for accomplishing its
objective. In the similar aspect, information on basis of expenditure and income as it will identify
profitability for managing and tracking expenditure in proper aspect.
The Silloth Nursing and Residential Care Home also requires information on basis of
regulation of financial management in social and health care like taxation. It would directly
enable for managing financial resources in such aspect with compliance of different requirement
and regulation. Every information with need of managing financial resources with availability
through internal resource through financial or cash flow management system through external
environment.
1.3 Explaining regulatory requirements for managing financial resources
There are numerous regulation which Silloth Nursing and Residential Care Home has to
directly comply for managing its financial resources. This particular regulation should be capable
for setting procedure, system and principle which are meant for protecting service user and
ensure about Silloth Nursing and Residential Care Home which fulfils various financial
obligation toward government. The regulatory requirement which Silloth Nursing and
Residential Care home include are :
 Requirement by monitor : Monitor is used to regulate health and social care industry. It
set regulation relating to competition, licensing, prices traffic etc. Silloth nursing and
Residential care have to follow this regulation which are developed by Monitor.
 Requirement of financial reporting council : Silloth Nursing and Residential care while
preparing various financial repost have to comply with the standards provided by IFRS
( international financial reporting standard). IFRS standard are made in order to maintain
accuracy , consistency and transparency (Osborn and et.al., 2017).
 Payment of taxes : The government with the help of taxes collect revenue from individual
and firm to perform its various activities. Shilloth Nursing and residential care is affected
by the tax requirement implemented by the government as it is required to pay different
taxes such as corporate tax, remittance of pay etc.
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1.4 Evaluating systems for managing financial resources with context of health care
organization
System are used to effectively manage the financial resources of the organisation. System
is the set of procedures and policies which provide direction about how things are done in
organisation. For healthcare providers such as Shilloth nursing and residential care, systems are
required for evaluating activities such as financial transaction, medical treatment etc. Shilloth
nursing and Residential care requires system which include :
 Financial accounting system : Financial accounting system assist managers in evaluating
various financial transaction such as income and expenses. Shilloth nursing and
residential care follow financial accounting system to track its various incomes and
expenses in order to know its profit and loss after performing its various activities
(Financial accounting system, 2018).
 Cost control and management system : Cost control system is needed by Shilloth nursing
and residential care home in order to control various unwanted cost which causes
financial deficit for the organisation. Cost control system provides various benefits such
as it helps the firm in identifying cost of particular object, helps in facilitating
competitive pricing etc. cost control system if not properly managed can leads to
ineffectiveness in the firm.
TASK 2
2.1 Discussing diverse source of income which might be encountered in social or health care
 Shilloth nursing and Residential care home in order to attract funds for performing its
various activities. There are number of income sources which are available for a
charitable care homer such as funds raising events include selling of tea, chocolate etc.
 Another source of income include money invested in a project by Shilloth nursing and
residential care home which will generate revenue for the firm. Income sources for
Shilloth nursing and residential care home also include donation, payroll payment,
money paid for care , lottery etc.
 National and local government provide funds to the organisation in order to enhance the
provision of healthy services. These resources can be used to finance different health
projects and provide various health services.
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 Another source of income which is available for Shilloth Nursing and residential care is
fees charged from the clients for delivering their health services.
2.2 Analysing factors which influence availability of financial resources in Shilloth Nursing and
Residential care home
There are various factors which affect the availability of finance in an organisation.
Shilloth Nursing and residential care home is affected by various factors such as :
 Creativity and awareness: Creditworthiness is replicated as future and current ability of
Silloth Nursing and Residential Care Home for accomplishing its financial obligation. In
case organization has past of default with context of financial obligation then it is
difficult for attracting its lenders. However, it has good history then it will attract lender
and donation is efficient aspect.
 Funding policy of government: The Silloth Nursing and Residential Care Home is
under NHS system and government fund them for purpose of offering different quality
services.
 Organization size: It directly influences resources availability as business entity with
large balance sheet could easily secure high loan amount through lender as an base of
asset is individual consideration through lender.
 Reputation: This will attract investor, lender and customer, if there is presence of
positive reputation then organization will easily attract client for accomplishing high
revenue. In the similar aspect, it attracts body investors and equity along with lender like
bank.
2.3 Reviewing various types of budget expenditure in health and social care organization
Budget is replicated as simple estimate of expenditure and income of certain duration.
For Silloth Nursing and Residential Care Home it has various possibilities of type of budget
such as:
 Human resource budget: For every business entity, manpower is replicated as essential
assert. The budget of HR is developed for ensuring about the best manpower. It covers
various cost like payroll, recruitment and selection cost along with training cost.
 Overhead budget: It provides explanation about spending of income to be overcome
each expense or overhead of Silloth Nursing and Residential Care Home (Hansson,
Höög and Nyström, 2017).
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 Marketing and communication budget: Silloth Nursing and Residential Care Home
operates in competitive environment. There is need to communication and to reach its
target customer. This budget will help in allocation of financial resources for recovering
marketing cost like communication and advertising cost of Silloth Nursing and
Residential Care Home.
 Resources budget: For every organization or Silloth Nursing and Residential Care
Home there is huge requirement of resources for effective operation. It would be giving
description about spending of income for acquiring these resources.
2.4 Evaluating decision about expenditure in health and social care organization
The main objective of Silloth Nursing and Residential Care Home is to attain return
about appropriate investment with requirement of conducting analysis for identifying viability
and profitability of these project. This organization would be considering various analysis for
taking decision on basis of expenditure such as:
 Cost benefit analysis is replicated as procedure adopted through Silloth Nursing and
Residential Care Home for evaluating project's total expenditure, payback period, return
on investment along with issues such as analysis of risk prior to investing on particular
project.
 Substituting emotionalism: With context of decision making related to expenditure,
emotionalism must be avoided. Silloth Nursing and Residential Care Home has set limit
on expenditure against forecasted return on investment for avoiding over spending.
 Strategy of adjusting: It helps in evaluating investment's actual performance for
identifying to set target related to revenue or expenditure for examining financial return
of entire department to identify what is making margin (Exeter and et.al., 2017).
TASK 3
3.1 Explaining management of financial shortfalls
The occurrence of financial shortfall with due of financial obligation or liability of
Silloth Nursing and Residential Care Home. In the similar aspect, there is lack of ability for
repaying it. In simple words, financial shortfall will arise financial activities of this business
entity fails for accomplishing targets which are least expected in particular duration. The nature
of this shortfall is persistent or temporary with determination and management as well. This
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shortfall could be managed could be managed in effective aspect for particular strategic
measures for reducing, managing and eradicating it.
Silloth Nursing and Residential Care Home could be able to seek additional of financial
with context of equity holder or shareholder operation through selling additional share. In the
similar aspect, it could negotiate receipts related to contract or grant revenue. It is replicated as
less costly method for managing shortfall. In the same series, it could sell its product on cash as
compared to credit sale.
3.2 Explaining actions taken in event for suspecting fraud
Fraud is referred as criminal activity for abusing its position, wrong representation for
financial and personal gain. In this case study, it might be related to give post op[erative
convalescence, long and short stay nursing along with residential care. In the similar it should be
on basis of delivering a particular range of services of extensive care with appropriate fee
structure. The fraud could be set is categorised in two categories such as removing asset through
business and false representation of financial statement. The steps could be undertaken for
suspecting fraud like:
 In-depth inquiry for confirming existence as it must be involved for all relevant people
with context of activities which lead to fraud,
 Case would be reported for consulting to police for purpose of independent investigation.
 Silloth Nursing and Residential Care Home would be conducting risk assessment for
understanding and identifying risk areas, kinds of measures and risk could be monitored
and prevention during risk occurrence. With context of assessment procedure and policies
and its code of practice would be communicated inform of various policy statement. The
emplacement training contract and consequences and induction of non-compliance. In the
similar aspect, fraud monitory officer of Silloth Nursing and Residential Care Home will
be nominated for oversee each problem related to fraud, nursing and malpractices and
monetary financial and audit record (DePasquale and et.al., 2017).
3.3 Evaluating budget monitoring arrangements
Budgetary monitoring is referred as process related to measures in Silloth Nursing and
Residential Care Home for monitoring financial activities through appropriate analysis of
financial records to determine irregularities and problems in balance sheet through spreadsheet
manager with capability to track expenses, inventory, stock for discrepancies and error. It helps
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management for solving issues. It comprises four stage such as forecast of income and
expenditure for specific duration, preparation of budget and approval from relevant person,
implementation of actual performance of budget, conducting variance analysis and last is to take
corrective action.
TASK 4
4.1 Identifying information required for taking financial decisions
For Silloth Nursing and Residential Care Home to make financial information in sound
aspect, it has need of timely and accurate information. It could be easily accessed through
analysing various financial statement. There is presence of numerous information which is
necessary to be considered for taking financial decision such as:
 Information on basis of assets: Assets are referred as important component of Silloth
Nursing and Residential Care Home and information on this aspect helps in facilitating
appropriate management. It could be directly accessed with analysis of balance sheet.
 Information on basis of profitability: The organization which is making profit such as
Silloth Nursing and Residential Care Home, it is very significant to have information
related to organization's profitability. Generally, this information could be extracted from
income statement where total income and expenses are listed (Valaitis and et.al., 2017).
 Information on basis of Cash flow: Silloth Nursing and Residential Care Home has
requirement of information on basis of timing related to cash spending and income.
Financial shortfall could be avoided with context of this information. The timing of cash
flow could be extracted through cash flow statement.
4.2 Analysing relationship among cost and expenditure and health and social care service
delivered
There is direct association among cost and expenditure and health and social care
services. For delivering quality service, organization has requirement to invest in equipment,
people and facilities. In simple words, it specifies quality services as increment in investment.
There is also association among services and demand for purpose of cost and services incurred
for delivering specific services. With increment in demand for services, it always gives similar
impact to incurred total expenses by Silloth Nursing and Residential Care Home. On the
contrary, despite this increment, the unit cost is decreased because of economy of scales.
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4.3 Evaluating financial considerations which impact on individual with application of health
and social care service
While taking financial decision there are various financial consideration which are
accounted. It comprises sources of finance to various fund expenses, profitability of services and
priority in expenditure. There particular considerations gives major impact on user of health and
social care services.
With context of considering sources of finance to fund the expenditure, availability
sources gives major impact service in direct or indirect aspect. For example, Silloth Nursing and
Residential Care Home might choose for funding its expenses through increment in prices for
particular services. In simple words, the service user has need of high prices for accomplishing
incurred cost in serving.
Mostly, availability of financial resources are always scares for funding whole activity of
Silloth Nursing and Residential Care Home. It signifies that funding could be performed of basis
of priority. It is considered as very logical for funding program or project which will directly
benefit the huge population such as organization along with service user. The Silloth Nursing
and Residential Care Home has presence of revenue producing stream which would make sense
to business entity. A service which is creating loss might be closed and offers essential and
crucial service to its customer. The margin of various revenue stream and services helps to
identify the availability of services. In the similar aspect, some service might easily accessible
and might not because of inability to make the best margin for business entity (Tanner, Ward and
Ray, 2018).
4.4 Suggesting methods for improving health and social care service via alteration to financial
systems and process
In Silloth Nursing and Residential Care Home, financial system and process could be
understood and helps business entity for making transformation to system and on similar aspect,
it will improve effectiveness and quality of service. There are various methods which improves
quality of social and health care such as Benefit cap, Equity and Excellence, Payment by results
and to liberate NHS (National health service).
 Payment by Results (PBR): The government policy with context of this model, helps in
transferring responsibility and risk through government to different healthcare providers.
In the similar aspect, healthcare providers are motivated for purpose of improving
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services and to attain excellent money value. With the outcome of PBR system, Silloth
Nursing and Residential Care Home would ensure about services given to desired result
and requirement about standards, So users will obtain value for money along with service
satisfactions.
The different directives have been offered for purpose of charging NHS
management on basis of charges related to overseas visitor with application of NHS
service and exemption for these criteria. These process and regulation would directly help
government for purpose of creating extra revenue for government with context of projects
related to finance and to improve social and health care (Watkins and et.al., 2017).
 Excellence and equity, Liberating national health service: The equity for excellence
has vast fundamental alteration nationwide in NHS for purpose till creation. It had
extracted innovative reform and ideas for encouraging innovation and to pay its providers
as per outcome and performance. In the similar aspect, it also encourages pharmaceutical
organization through payment of value of new drug as they patent and produce system of
secure payment for users of service. As Silloth Nursing and Residential Care Home
would be capable for accomplishing criteria for payment and grants for outcome and
performance as it would endeavour to give excellence and good service by providing
value for money, dignity, promoting staff right for choice along with conducive and safe
environment (Stoddart and Evans, 2017).
CONCLUSION
From the above report it had been concluded that financial resources should be managed
in health and social care. It had shown that transparency, data accuracy and stakeholder
management is very important as principle of costing and business control system. In this report
it had been articulated that health and care services should be improved with various methods
such as payment by results and liberating national health service.
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REFERENCES
Books and Journals
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business process controls: A pilot implementation of a continuous auditing system at
Siemens. In Continuous Auditing: Theory and Application (pp. 219-246). Emerald
Publishing Limited.
DePasquale, N. and et.al., 2017. The psychosocial implications of managing work and family
caregiving roles: Gender differences among information technology professionals. Journal
of family issues. 38(11). pp.1495-1519.
Exeter, D. J., and et.al., 2017. The New Zealand Indices of Multiple Deprivation (IMD): A new
suite of indicators for social and health research in Aotearoa, New Zealand. PloS
one. 12(8). p.e0181260.
Hansson, J., Höög, E. and Nyström, M., 2017. Action research for multi-level facilitation of
improvement in health and social care: Development of a change facilitation approach for
a local R&D unit. Action Research. 15(4). pp.339-356.
McColl-Kennedy, J. R., and et.al., 2017. How do you feel today? Managing patient emotions
during health care experiences to enhance well-being. Journal of Business Research. 79.
pp.247-259.
Osborn, R., and et.al., 2017. Older Americans were sicker and faced more financial barriers to
health care than counterparts in other countries. Health Affairs. 36(12). pp.2123-2132.
Stoddart, G. L. and Evans, R. G., 2017. Producing health, consuming health care. In Why are
some people healthy and others not? (pp. 27-64). Routledge.
Tanner, D., Ward, L. and Ray, M., 2018. ‘Paying our own way’: Application of the capability
approach to explore older people’s experiences of self-funding social care. Critical Social
Policy. 38(2). pp.262-282.
Valaitis, R. K., and et.al., 2017. Implementation and maintenance of patient navigation programs
linking primary care with community-based health and social services: a scoping literature
review. BMC health services research. 17(1). p.116.
Watkins, J., and et.al., 2017. Effects of health and social care spending constraints on mortality
in England: a time trend analysis. BMJ open. 7(11). p.e017722.
ONLINE
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Financial accounting system. 2018. [Online]. Available through
<https://drexel.edu/comptroller/general-accounting/accounting-structure/financial-
accounting-system-overview/>
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