Person BTEC Level 4 HNC in Health and Social Care Unit14: Managing financial Resources in Health and Social Care
Lecturer Name: Nadia Mandy Student Name: Judith Akidi Student number :16004055
Date Issued Submission date 18/2/2018
Assignment title Managing Financial Resources in Health and Social Care
Introduction: managing financial resources in health and social provide a holistic view of the funding structure in the health and social care sector and to understand the role of health and social care manager in the management of financial resources. The function of management is very important in the case study, the efficiency of planning a recruitment and selecting methods for an organization is to reviewed the right policy.
The principles of possessing business control systems in health and social care is important to determine the cost and amount of resource needed to deliver an effective service.
Business possessing and costing includes income, costs, expenditure, cost benefit analysis, cost control, budget, capital, cost control, forecasting, profit making, breakeven, and software for managing financial information in an organisation. Process costs is an outlay of collective data used. This helps in knowing how much resource is available and also prioritizes resource allocation. There are different types of cost namely: variable cost, direct& indirect cost, fixed cost and semi variable cost.
The principle costing guide that an organisation must adhere to includes objectivity, accuracy of data, consistency, quality, transparency, stakeholders’ engagement and materiality.
In consistency costing must be auditable and transparent information should be clear and clean.
Cost is always related to its because it can be normal or abnormal example of abnormal cost can be in case of fire outbreaks or theft. And usually this cost does not reflect in production activities since its misleading on the objectives of cost controls. Normal costs relate to production or services and it’s charged at costs centres.
1.2 The many unique managing financial resources planning.
Idea is to select broking and insurance companies that are credible and capable with track record of performance. What this means is that we are going to eliminate all those transactions that are not necessary,” According Mr. Lima, Stated. The breakdown of bidder showed and brokers tendered for oil assets; companies tendered for oil assets. this is the NNPC Group Manager, Risk Management The information that is needed to manage the financial resources which helps an organisation meets its requirements are the information from varies management operational and financial. These activities will determine the resources It will require data to be obtained from inventories such as budget, processing financials statements, operational activities, income statements and cash books. Other information that the organisation must maintain are human capital, work.
Some examples of the types of information and their uses
Balance Sheet gives an outline of the company assets, liability and shareholder equity for a particular period, which could be monthly, quarterly or yearly specifying what the silloth Nursing & Residential Care Home care own, owns and shareholder investment. it’s also show at the top, company legal name, title of statement i.e. balances sheet and precise data and time for example 31st march 2008 Income statement also known as profit and loss statement show silloth Nursing ;Residential records of earning and profitability for a specified period of time could be monthly, quarterly and yearly. For was £184,952 acceptance and commitment therapy positive psychology worksheets, values, committed Action
Cash flow statement show records of cash inflow and outflow during a financial year, it includes all financial transaction and investment. this statement is for specific period of time. for examples
List of inflow and outflows of cash for the period it shows whether business generates cash where the cash was spent.
Statement of income and expenditure
It shows the followings: – Incomes: Grant, Fees, Charge, Sales, Interest, Rent
Expenditure: Employed cost, Transport, supplies and Services
Business cost aids possess in the management of financial resources in health care organisation. Examples of some costing will
Staff cost (Wages and salaries, Pension cost)
Medical equipment and appliances cost (Hoist, Buckets, Buckets, Stretcher, Trolley, Wheelchair)
Building cost (Outright purchase or lease – Operating or finance lease
Cost of consumable items (Food, toiletries, Soap, Kerosene, lantern the revenue (income) received depends on the services and business engagement of the health organisation which includes: Normal business activities (Adult Learning Disabilities,
Managing the cash flow process (in-flow and out-flow)
In house Banking and intercompany loans.
Some of the external information that affects the operation of Health and Social care organisations. Example,
Health and social care act 2012
Care policies and procedure
(Access to Records and Files, Business Contingency, Care Needs Assessment Procedures, Data Protection, Development and Training, Environmental Management of Business Premises, Handling Residents’ Money, Gifts and Legacies, Investigation of Financial Irregularities, Monitoring and Accountability Regulatory requirements in managing financial resources
This definition provides for a wide range of personal data, including name, identifiable person who can be directly or indirectly identified in particular by reference to an identifier, reflecting changes in technology and the way organization about people. ** the protection of natural person in relation to processing of personal data is a fundamental right. Article 8(1) of the charter(TFEU) provide that everyone has Regulation widely is defined for government measure and intervention change
In order to ensure a consistent level of protection for natural persons throughout the the union and to prevent regulation can attempt to follow these three strategic principles
Directive 2011/24/EU of the European parliament and of the council of 9march 2011 on the application of patients’ right in cross- border healthcare(o)L88,4.4.2011,45).
Promote efficiency, fairness or orderliness
Customers achieve a fair deal.
The regulation standards of all the binding agreements that are made in a health organization which includes, Example some of the contracts have indemnity letters, bailment, pledges, and agency. It also gives the provisions of a breach of contract. The other vital regulation pertains to the issue of quality management
Health and social care organisation should maintain some basic regulatory requirements in order to succeed. the Government’s reforms focus on three key institutional changes:
Frist, a new Financial policy committee (FPC) will be established England, with responsibility for ‘macro -prudes requirements facilitate the organization to function within the standards of the statutory provisions of that particular country example, In the United Kingdom, the health and Social Care Act 2012 established the legislation and codes of practice for managing financial resource
All sector above contributes financial in health and social care organisation
Monitor: Some examples of their roles are,
Understand the way systems are used to manage financial resources (costing, involved)
Systems and process influence health care delivery under taking s should cover a controlling under taking its controlled whereby the controlled
Importance of monitoring budge are the prossced in health and social care organisations (how to manage shortfall, fraud and budget monitoring Audit of Financial Statement of government bodies (including NHS trust organisation)
Reviewing the Value for money (VFM) model in terms of Efficient, Effective and economic use of financial resources
Review internal control systems in Hospitals, GPs, community care and local government.
Make recommendation on process improvement
Advisory work on the review of community care budget and improving care pathway
Providing quality account on Governance structure, systems and processes
Financial Reporting Council (FRC)
The Financial Reporting Council is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment
NHS Litigation Authority (NHS LA)
Managing claims –
Managing claims against the NHS on behalf of our members
They settle justified claims fairly and quickly
Defending unjustified claims robustly, helping to protect NHS resources
They aim to provide indemnity cover directly to independent providers of NHS care from April 2013
Other Non- Financial regulatory bodies are
Care quality commission (CQC)
General medical council (GMC)
Nursing and Midwifery council (NMC)
There must be guidelines and practices that are accepted in the field of accounting internationally in standardising financial documents such as balance sheets, cash flow statements and income statements. An organization follows these principles in reporting its financial information. Absence of these standards can give privileges to an organization staff in divulging financial information at their individual expense and not at the company’s thus affecting its overall credibility to investors and stakeholders.
Principally, the general accepted accounting Principles should follow these activities,
Regulation of the General Accepted Accounting Principles
Preparing and summarizing economic information
Recording measurements at regular intervals
Measuring economic activity
Disclosing information about an activity
Adhere to these standards facilitate financial reporting, likewise financial implications similar to those of big companies requires the utilization of the accounting concept.
Systems for managing financial resources in a health or care organisation
In order to evaluate systems for managing the financial resources in health or care organization it is necessary to assess whether the systems meet the expectations of the clients and those of the organization. Example, In the of case Silloth Nursing and Residential Care Home there must be an organisation management policy or systems that handles potential risks for its health centres in terms of the resource allocation procedures where all the needs of the interested parties are met. The interested parties could be the patients and staff. The organization can have cost reduction methods and financial expediency; however, it must effectively have adhered to the management guidelines in order to achieve its goal of providing social care to a larger section of the population.
2.1 Exchange views of sources income may be encountered in health and social care
There are several ways health and social care finance is obtained, the methods of gaining, and the sources of revenue in health services. Modes of financing include: Third-party payers, public grants, contracts with managed care, government contracts, direct public/government payment for service, philanthropic grants and payments for service, loans, bonds and self-pay.
In the case of Silloth Nursing and Residential Care Home the sources of
Income includes, Donations, Covenants, Annual subscriptions, Legacies, Gifts, fundraising drives, investment income and residential fees.
2.2 Analyse the factors that may influence the availability of financial resources in health and social care organisations
In the year ended 2008, the organization was able to invest acquire assets to run the facility example, equipment like Diagnostic beds and also operation cost like paying employees. These asset acquisitions were through funds donated to the organisation.
2.3 Review different types of budget expenditure in health and social care organisations
HR Management Key Skill: Organisation HR management requires an orderly approach. Organised files, strong time management skill, and personal efficiency are key to HR effectiveness. You’re dealing with people, s lives careers here on a typical HR professional will deal with an employee’s issue an intermittent leave and a recruiting strategy for a hard -to fill job
HR Management Key Skill: Discrete and Ethical, HR professionals are the conscience of the company, as well as keepers of confidential information. As you serve the needs of top management, be sure that policies and regulations are followed. Expenditure is accounted on accruals basis for Silloth Nursing and Residential Care Home Where the expenditure relates to a specific project according to the Donors it is shown as restricted expenditure. Comprehensive budgeting An organisation caries out comprehensive budgeting its detailed, and its utilization is when there is a limitation on spending, it helps the organization in having a financial overview of the way the organization spends it capital concerning its projects. This type of budgets will issue comparable spending patterns over theyears. Planning budgetingSilloth Nursing and Residential Care Home through its programs utilizes this kind of budgeting to set aside capital for investments. This budget works for this purpose as it has a category inclusion that allows the organization to designate capital for a desired goal.
2.4 Decisions about expenditure are made within a health or social care organisation
When start a business, you must have clear vision of purpose and goal cost -benefit analysis in making its expenditure decisions will help to challenge in organisation by professionals indicated that obtaining human capital and optimising human capital investments and talent management
Organisation and Management structure
The financial obligations of an organisation have to be met. When a financial obligation creates a situation in which there are not enough funds to cover the obligation it is considered a shortfall. A shortfall may be unexpected as a result of a current situation, or it can be a predicted event that will occur in the future. Shortfalls can be a temporary or long-term situation.
Examples of Financial Shortfalls
Temporary or short-term shortfall arises out of a unique set of circumstances.
Example, Silloth Nursing and Residential Care Home, financial shortfall was identify It is important that Health care fraud is handled seriously since it is a severe criminal offense that affects not only the concerned individual but also the government. Not only does it surpass the objective of health care services, but also that of maintaining a healthy population.
the key principles used to identify and manage shortfalls
3.1 Explain how financial shortfalls can be managed.
According to Becker (2012), Financial shortfall arises when the business financial activities of an organization fail to meet least expected targets within specific timeframes. Whatever the management can be achieved through better management of the cash flow of and establishment and reserve funds, organization and development of effective budgetary systems. Management integrity is necessary and it requires monitoring of the spending patterns of the various departments in an organization. It also requires that serious actions be taken against reckless spending by the staff of the organization. Example in Silloth Nursing and Residential Care Home, the acquisition policy would address some issue as the cash flow would be reduced. Optimization of the cash flow management would aid the organization in achieving financial health.
CASH FLOW BUDGET; identify cash requirement is to run day by day operation at silloth home care interruption, this will provide the management
3.2 Explain the actions to be taken in the event of suspected fraud
This is the information provider fraud team are responsible for investigating allegation of fraud by solicitors ,barristers and third party experts carrying out legal aid work content , client investigations the special investigation unit (SIU) investigate client eligibility for both civil and criminal legal aid case are referred to us for a number of reasons in line with SIU’ referral criteria’.
Hold assets abroad
Have access to income or capital apparently owned by other
Have business interests with complex finances
Fraud investigations allegations of potential fraud against LAA are looked into by SIU in accordance with Fraud Act 2006. Work is carried out in partnership with other government agencies most commonly the DWP.Fraud is a serious crime if detected reporting the culprits be charges. It is important that Health care fraud handled seriously since it is a severe criminal offense that affects not only the concerned individual but also the government. Not only does it surpass the objective of health care services, but also that of maintaining;
Criminal Fraud VS civil Fraud :what’s different from each other Fraud is a crime that many people equate with theft but there is a distinction there is also a distinction between criminal fraud and civil fraud .less the different counts when we talk of “fraud” we normally associate it with theft or stealing they have their own similarities ,but it’s important to be aware of distinction of particular
Criminal Fraud: federal prosecutors, state prosecutor and local prosecutor are the ones that can bring the case to case to court as a criminal Fraud. they have to prove that the people involved did intend to commit the fraud and gain from the miscegenation. common example of criminal fraud includes counteracting bank fraud. embezzlement, bankruptcy
Fraud has also occurred if the victim has suffered damage due to mesmerisation meanwhile, the general difference between criminal and civil fraud is the nature of who is pursuing the legal misrepresentation
Climate Fraud and corruption the simple truth is our government is lying about climate change to push a green try runny based on Agenda 21/2030
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3.3 Evaluate budget monitoring arrangements in a health or social care organisation
Budget monitoring procedure are measures put in place by organisation like care Tech to monitor all financial activities of the organisation, by analysis the financial record to identify problem and balance sheet, from the spread sheet manager are able to check all inventories, expenses, stock for error and discrepancies. In turn help the management resolve those issues (Cox andFardon,2007). Monitoring budget is an effective way of managing financial resource. managers can use the spreadsheet data and cash flow figures,
Evaluate progress, identify problem organisation and plan. Also help Revising of the internal budget through a well-coordinated process
Provisioning forecast information to enable the organization to manage gaps within budget estimates.
It is important to note that, budget monitoring tracks the performance of the organization in various areas Example,
Tracks the performance projects, allowing corrective action to be taken by management in order to address the matter.
Public Sector Financial management ,3rd Edition by H coombs and D.Ejenkins
2002.chapter4. pp. 125-142. Management of financial guide of business fiancé for the non-specialists by David cox and Michael Fardon 2007. pp.312.332.
4.1 Identify information required to make financial decisions relating to a health and social care service
Silloth Nursing and Residential Care Home, financial controllers use financial statements, income statements, cashbooks, inventories maintained in financial departments in the organization. Financial controllers require sound understanding before making any decisions to avoid making losses and to avoid overstating statements and inventories as they may give the wrong information, which may in turn affect the entire organization. Despite financial department maintaining financial records, other departments like human resources department maintain information relating to employees, for instance, the number of employees, their addresses, and their respective departments. In addition, Silloth Nursing and Residential Care Home, the management should maintain information that regards patients, for instance, the type of infection, method of diagnosis administered, date and other relevant information. This type of information helps in decision-making and highlights the reoccurrence of certain infections, diagnosis, and patients
4.2 Analyse the relationship between a health and social care service delivered, costs and expenditure
An association exists between health care and social care services delivered in terms of costs, and expenditure. It’s important to analyse information on health care services provided by the employees and their related costs and expenditures.The number of employees correlates with the services offered by the organization with each year showing a considerable increase by the number of employees and patients’ turnout. This however increases the cost and expenditure at the organization to counter the excess number of patients and services they require.
4.3 Evaluate how financial considerations impact upon an individual using the health and social care service
Financial considerations that may influence an individual using Silloth Nursing and Residential Care Home services include affordability, individual’s income, the level of seriousness and type of the disease, living standards and the associated costs of service delivery at the hospitals. Other factors may include the availability of appropriate equipment of conduction various diagnostic procedures to patients with various disease. Expensive service delivery may block individuals who cannot afford the services offered by the organizations. Therefore, both organizational and individual financial considerations play a significant role of maintaining proper and affordable services
4.4 Suggest ways to improve the health and social care service through changes to financial systems and processes.
In order to improve health care and social care services at Silloth Nursing and Residential Care Home in relation to financial systems and processes.
The organization should maintain the general accounting principles and the required legislation to handle its financial systems and process.
The systems and procedures should be accurate and effective to avoid cases of misrepresentation of data and information with the organization.
The organization should employ effective and efficient control systems. However, the changes employed by the organization should cater for the patient’s needs without difficulties to serve more patients with minimal time and accuracy.
The organization should improve on their modes of data collection and storage. The organization can improve this by employing software that helps collects relevant data and storage. This is important especially in cases of reoccurrence of a disease or treatment in addition to ease of retrieving vital information regarding a particular patient or any other need that requires investigations. With the advanced technology, many organizations are now using advanced ways of collecting and storing data and other control systems that help the organization to run more effectively and efficiently