{"id":45681,"date":"2022-01-24T15:35:16","date_gmt":"2022-01-24T15:35:16","guid":{"rendered":"https:\/\/essays.homeworkacetutors.com\/2022\/01\/managing-financial-resources-in-health-and-social-care\/"},"modified":"2022-01-24T15:35:16","modified_gmt":"2022-01-24T15:35:16","slug":"managing-financial-resources-in-health-and-social-care","status":"publish","type":"post","link":"https:\/\/www.colapapers.com\/us\/managing-financial-resources-in-health-and-social-care\/","title":{"rendered":"Managing Financial Resources in Health and Social Care"},"content":{"rendered":"
\n

Introduction<\/h2>\n

This
\nreport based on the financial report of CareTech Holdings PLC dated 30
\nSeptember 2016. CareTech Holdings PLC is a Healthcare organisation that
\nprovides two main services namely; <\/p>\n

Adult Services:<\/strong> This includes adult
\nlearning Disabilities (Residential Care, Independent supported living,
\nCommunity support service) and Mental Health (Residential care, Independent
\nsupported living and Community Outreach.<\/p>\n

Children Services:<\/strong> This includes Foster
\nCare (Fostering and family assessment in the home), Young people Residential
\nservices (Residential care of children and young people, education services for
\nchildren and young people) and Learning Services (Pre-employment programmes,
\nDevelopment programmes, Apprenticeship).<\/p>\n

\"\"<\/figure>\n

This
\nreport will explain the principles of costing and business control systems, regulatory
\nrequirements for managing financial resources, budgeting, source of income, the
\nreport explores short falls, the causes of shortfalls and how they can be
\nmanaged. The report will then conclude by identifying data required for
\nfinancial decision making relating to Health and Social Care services and
\nsuggests ways to improve on health and social care services through changes to
\nfinancials systems and processes.<\/p>\n

Explain the principles of costing and business control systems that may be adopted in CareTech Holdings Plc. <\/h4>\n

Costing
\nis an approach to gaging the overall costs that are associated with carrying
\nout a business. It is one of the tools that managers use to ascertain type of
\nexpenses and how much expenses are involved with maintaining the current
\nBusiness model. Principles of costing can be used to plan changes to these
\ncosts if specific changes are implemented.<\/p>\n

According
\nto Online Business Dictionary, Costing is system of computing cost of
\nproduction or cost of running a business by allocating expenditure to various
\nstages of production or operation of an organisation.<\/p>\n

The
\nrole of costing in a business or an organisation includes inventory valuation,
\ncost recording, product\/services pricing and decision making.<\/p>\n

Application
\nof costing principles to the costing and collection processes will permit a
\ntrue and fair view of what it costs to deliver patient care in a care
\norganisation like CareTech. The costing principles offer a sense check to help
\nhealth and Social care Organisations prioritise where to invest effort in
\nimproving costing and decide how much time to invest in that improvement.<\/p>\n

There are six principles of costing approved by the NHS Costing Guidance<\/a> (2013) and these are bind for all care organisations like CareTech Holdings PLC to follow. These principles are shown in the table below<\/p>\n

Principles of NHS Costing enacted from table 3 of Monitor (February 2016)<\/em><\/strong><\/p>\n

\"\"<\/figure>\n

Stakeholder Engagement: <\/strong>A\u00a0stakeholder\u00a0can be any person,
\norganization, contemporaries, or society at large that has a vital interest in a
\nbusiness or its activities. Thus, stakeholders can be internal (Managers,
\nEmployees), External (Government, pressure group) or Connected (Shareholders,
\nClients, Consultants, Financiers) to the business. It can include ownership and
\nproperty interests, legal interests and responsibilities, and ethical rights.
\nA\u00a0legal responsibility\u00a0may
\nbe the duty to pay wages or to honour contracts. An\u00a0ethical right\u00a0may include the
\nright of a service user not to be intentionally harmed by care activities.
\nStakeholders can affect
\na business, be
\naffected by a business or be
\nboth affected by a business and affect a business. CareTech stakeholders
\nmay include carers, consultants, nursing staff, Operational Managers and the public
\nwho have interest in the organization. Hence, engaging these people in defining
\nthe costs will be very appropriate.<\/p>\n

Data Accuracy<\/strong>: Precise costs can only
\nbe calculated if the data used are accurate. Accurate costing depends on the
\nquality and coverage of the underlying data input.\u00a0 Complex costing exercises, such as reference
\ncosts, Service user-level costing or service-line reporting, need data from
\nmany different sources like accounting data (general ledger, trial balance),
\nservice user-level activity data (admissions, lengths of stay, care plan), staff
\nactivity data (time spent in different service user care settings, carers job
\nplans), care coding etc. This information is classically logged on a variety of
\nsystems, such as the accounting system, patient administration system and so on.
\nAll this information must be gathered for use in the costing process. Good
\nquality and good coverage of the input data are vital to the quality and
\naccuracy of the final costing outputs.<\/p>\n

Transparency<\/strong>: It is imperative to
\nclearly document the costing process. This might include recording all the
\nactivities involved in delivering an element of patient care. Clear
\ndocumentation should identify: data source documents, cost classification, the
\ncause-and-effect relationship between resource costs and activities, any
\nassumptions used for cost allocation and costing procedures used in the costing
\nprocess. It is recommended by Monitor (2016) that health and social
\norganisations such as Caretech should have and keep a costing processes manual
\nspecific to the organisation, that shows in detail all the costing processes the
\norganisation used to produce its costing information. This manual will ensure
\nthe organisation retains costing data and knowledge when costing accountants
\nare changed or replaced. It will also support the reliability of approach in
\nline with costing Principle of Consistency. Transparency will allow CareTech to
\nprepare their financial statements in a way that present the true and fair view
\nof the organisation\u2019s financial position and sustainability.<\/p>\n

Business
\ncontrol system as explained by Anthony and Young (1999), ensure that
\norganisation carries out its strategy; in making sure that resources are
\nobtained and used efficiently. Also,
\nit offers a framework of processes and activities intended to reduce the
\nrisk of error or fraud e.g Budgetary Controls, Bank and Cash Controls,
\nExpenditure and Purchasing Controls, Payroll and Personnel Control, Cost
\nControl, Internal Control and Audit etc.<\/p>\n

Bank and Cash Control:<\/strong> Cash at hand or
\nbank is part of an organisations current (liquid\/ easily assessable) asset. In
\nan organisation, there must be a set limit of amount of cash that should be
\navailable i.e. petty cash and all cash spent or received must be properly
\nrecorded with receipts filed as source document. There should be a segregation
\nof duty with regards to the banking activity of an organisation and necessary
\ncontrols put in place for issuing of cheque and payment runs.<\/p>\n

Internal Control and Audit: <\/strong>The internal audit is a means to provide
\nindependent assurance to management that an organisation\u2019s risk management,
\ngovernance and internal control processes are suitably designed and operating
\neffectively. Internal Control is a
\n<\/em>processwithin an organisation
\nset to provide reasonable guarantee that corporate objectives like reliability
\nand integrity of information, compliance with policies, plans, procedures, laws and
\nregulations, the safeguarding of assets and efficient use of resources are being
\nachieved. Internal
\nControl and Audit allows check and balances within an organisation and prevents
\nor reduces theft and fraud risks.<\/p>\n

Identify the information needed to manage financial resource for CareTech Holdings Plc in financial ending.\u00a0 <\/h4>\n

The
\neffective management of financial resources of any organisation involves informed
\ndecision making which is reliant on precise understanding and interpretation of
\nfinancial data. Management need to have some avenue to gain knowledge of what
\nis happening with respect to their financial resources if they are to make
\ninformed management decisions. Also, the organization is accountable to funding
\npartners as they are expected to report income and revenue, expenditure,
\ninvestment and balance\/profit. <\/p>\n

Information
\nrequired for effective management of financial resources can be grouped into
\ntwo: Business Cost & Income (Balance Sheet, Profit & Loss, Cashflow
\nstatement, Budget, Cost & pricing data, variance analysis etc) and Business
\nEnvironment & External Influences (trend analysis, changes in policies
\netc).\u00a0 <\/p>\n

\"\"<\/figure>\n

Balance Sheet:<\/strong> Also referred to as
\nStatement of Financial Position, is great means to analyse a company\u2019s financial state or position. The\u00a0 analysis of how well a company is performing,
\nhow liquid or solvent and efficient a company is can be reached using the
\nbalance sheet (through the calculation of\u00a0financial ratios<\/a>). Simply put, it gives a full picture of a company\u2019s well-being
\nand health. The balance sheet is created on the core equation:\u00a0Assets =
\nLiabilities + Equity.<\/strong><\/p>\n

As
\nat 30th<\/sup> Sept. 2016, CareTech\u2019s Total Asset is 378,301<\/strong> = Total Liabilities
\n\u00a3226,634<\/strong> + Total Equity \u00a3151,667<\/strong>
\n(all in \u00a3000\u2019s).<\/p>\n

Profit and Loss:<\/strong> This is also known as Income Statement is one of a company\u2019s main financial statements as it shows their profit and loss over a period of time. Profit or Loss is ascertained by deducting all expenses (from operating and non-operating activities) from all revenue (sales of product and services, rent of buildings and equipment, grant,funds, interest earned from investments, dividends from shares held in other companies and donations etc). CareTech generates revenue from five different services: Adult learning siabilities, Mental health, Foster care, Young people residential and learning services with adult learning disabilities as the highest revenue generator.<\/p>\n

\"\"<\/figure>\n

CareTech\u2019s
\nfinancial performance as at 30th<\/sup> September 2016 got better compared
\nto 2015. Revenue increased by almost 20% \u00a3148.9m (2015: \u00a3124.3m), profit after
\ntax grew to almost three times \u00a322.8m (2015: \u00a37.9m).<\/p>\n

Explain the regulatory requirements need to be satisfied while managing financial resources in CareTech Holdings Plc.<\/h4>\n

Managing
\nFinancial resources is key, and companies must meet some statutory requirements
\nrelevant to the type of industry they operate. In the Care industry where
\nCareTech operates, some of the regulators includes:<\/p>\n

Care Quality Commision (CQC)<\/strong> is a
\nnon-departmental public body which regulates all health and social care
\nservices in England to ensure quality and safety of care in hospitals,
\ndentists, care homes etc this body is sponsored by Department of Health and
\nSocial Care.<\/p>\n

Companies House<\/strong>: incorporate and
\ndissolve limited companies, register company information and make it accessible
\nto the public. It is an executive agency sponsored by Department for Business,Energy
\n& Industrial Strategy. \u00a0<\/p>\n

HM revenue and Customs (HMRC): <\/strong>This is
\na non-ministerial arm of the UK Government responsible for the collection of
\ntaxes, payment of some forms of state support and administration of regulatory regimes
\nwhich includes the national minimum wage.<\/p>\n

Companies
\nare liable for different taxes and the commonest one is Corporation Tax, PAYE,
\nVAT, National insurance etc. As at 30th<\/sup> Sept. 2016, CareTech\u2019s
\nCorporation Tax liability as stated in their P&L is \u00a3336,000<\/p>\n

Monitor<\/strong> established as part of NHS
\nImprovements with the core duty of regulating healthcare providers, prices for
\ncare services, address restriction on competition that act against care service
\nuser\u2019s interests, supports the delivery of of integrated services for patients
\nto improve quality and efficiency of care. To support its function, Monitor
\noperates a licensing regime.<\/p>\n

Financial Reporting council (FRC): <\/strong>The
\nFRC promote transparency and integrity in business. These are keystones to
\ngenerating public trust and attracting investment in sustainable, successful
\ncompanies that provide jobs, create prosperity and generate economic growth.
\nThis is done by regulating accountants, auditors and actuaries, and by
\noperating the UK\u2019s corporate governance system. <\/p>\n

CareTech\u2019s
\nFinancial Statement was prepared in accordance International Financial Reporting Standards (IFRS)<\/strong> developed to
\nbring transparency, accountability, and efficiency to financial markets around
\nthe world. Applying IFRS enables CareTech to be transparent in the publish of
\ntheir accounts and allows comparability between other companies that operate in
\nthe same sector as them.<\/p>\n

Evaluate the systems for managing financial resources in CareTech Holdings Plc. <\/h4>\n

In
\nHealth and Social Care industry, managing financial resources is key as it
\nallows management to make informed decision about service users interest and
\ntheir own long-term goals. Systems set by government, management and regulators
\nto manage financial resources in the company and ensure efficient and effective
\nrunning of the organisation includes:<\/p>\n

In
\nan organisation like Caretech, budgets are set by Directors following
\nfundamental principles set to guide public\/private organisations. Budget should
\nbe in alignment with caretech\u2019s roles and responsibilities, full financial
\nimplications of budget should be shown, budget approach must be determined, and
\nall projections must be realistic.<\/p>\n

A
\nsystem should be in place for good recording and book-keeping to produce financial
\nreport that are published in accordance with current legislation and standards,
\nfor external users through books of accounts and Information technology systems
\n(IT). This system should track financial activities (sales, cost of sales),
\npayments, cost and, management accounts, governance and risk management. Some
\ncommonly used IT Software includes Sage, Oracle, SAP ERP, QuickBooks, Project
\nmanagement systems (Microsoft project, Prince2), Data management and analysis
\nsystem (Microsoft Excel) etc.<\/p>\n

Sources
\nof Revenue (from operating and non-operating activities) should be identified,
\nbudget variations should be prepared to understand where budget is favourable
\nor adverse to companies finance and effective cost management can be done
\nthrough Activity based Costing using appropriate cost pools and cost drivers.<\/p>\n

A
\nsystem such as fixed asset register<\/strong>
\nshould be in place to record cost of asset, date of purchase, depreciation
\nmethod, years of depreciation, amortisation, sale of asset etc. This will also
\nreduce risk of fraud or theft of assets. Also, organisations liabilities must
\nbe well recorded and controlled.<\/p>\n

Checks
\nand balance should be in place for cash management and segregation of duty in
\nterms of issuing checks (account signatories) and payment run.<\/p>\n

Financial
\nresources management should be independently examined by internal and external
\nauditors to ensure that financial statements are prepared to give true and fair
\nview of the organisation<\/p>\n

Discuss the diverse sources of income available to CareTech PLC in the financial year in 2016<\/h4>\n

Income
\nis the earnings a company receives from the sales of its goods and or services,
\nreturns on investments and sales of assets. It is used to fund company\u2019s daily
\nexpenses. CareTech\u2019s main stream of income is from providing high quality
\nsupport and care for individuals who often have complex needs. Adult learning
\ndisabilities service is the highest income generator, generating 57% of the
\ntotal income.<\/p>\n

\"\"<\/figure>\n

CareTech
\nis a big company and raises revenue from sales
\nof share<\/strong> on London Stock exchange, over \u00a381m was realised in 2016 while
\nretained earnings is over \u00a366m and merger reserve over \u00a39m. The company is
\nexposed to long and short-term loans and borrowings as well as shown in their
\nBalance sheet. Long term loans & borrowing as at Sept. 2016 is over \u00a3150m
\ncompared to over \u00a3160m in 2015 and short-term loans & borrowing as at sept.
\n2016 over \u00a36m compared to over \u00a31m in 2015. These borrowing figures shows that
\ncreditors willingness to trust the company with more short-term loan could be
\nbecause of them managing their long-term loans and borrowings well i.e.
\nfulfilling their agreed credit terms with their creditors.<\/p>\n

CareTech
\nBalance sheet shows they have property,
\nplant and equipment<\/strong> worth over \u00a3267m, rent income can be generated from
\nrenting out spare rooms (CareTech raised \u00a330m in Feb.2016 from ground rent to
\nsupport its growth strategy), plant and equipment. Another source of income
\ncould be grant<\/strong> from local
\nauthorities, interests<\/strong> received on
\nbank deposit. <\/p>\n

Caretech\u2019s
\nretained earnings<\/strong> is over \u00a366m and
\nmerger reserve over \u00a39m<\/p>\n

Analyse the factors that may influence the availability of financial resources in CareTech Plc\u00a0 <\/h4>\n

Financial Resources is the fund available to a
\nbusiness for use in carrying out business activities in the form of money (cash
\nand cash equivalents or bank deposit), shares, bonds, debentures, cheques and credit
\nlines. Various factors can influence the availability of financial resources to
\nCareTech, this includes: Type of services provided, size of the organisation,
\ngeographical location, type of business ownership, funding priorities, local
\nauthority policies, local agreements (local authority and care home service
\ncontracts) and so on.<\/p>\n

Geographical
\nLocation<\/strong> and the population
\ncondensation may affect may affect funding availability for instance,
\nindividuals in London (being a capital city) may receive a level of funding
\ncompared to people based in Coventry or Ascot. From the CareTech\u2019s service
\n(Adult learning disabilities) that generated highest revenue 57% in 2016 shows
\nthat CareTech operates in locations where that service is in high demand.<\/p>\n

Type of
\nServices Provided<\/strong>: CareTech delivers
\ninnovative social care on behalf of local authority and health service
\ncommissioners throughout the UK and has a long-established reputation as a provider
\nof high quality and safe services which allows for public funding from
\ngovernment bodies such as NHS and being a public liability company allows it to
\nsell shares in the stock exchange market.<\/p>\n

The
\namount of revenue (\u00a3149m) generated in 2016 financial year shows that Caretech
\ncan be classified as a large sized company and the value and amount of the
\nfixed assets they own provides attractive collaterals to obtain loans from
\nlenders and financial institutions. Also, being a large company and making
\nprofit year in and out is one of the strong points of CareTech to convince
\nlenders and creditors of their ability to meet or settle their liabilities in a
\ntimely manner.<\/p>\n

Review different types of budget expenditure in CareTech Plc.<\/h4>\n

A budget estimates the financial outcomes and
\nfinancial position of an organisation or business for one or more future
\nperiods. \u00a0A budget is used for planning and performance measurement
\npurposes, which can involve acquisition of\u00a0fixed
\nassets<\/a>, launching new products, employee
\ntraining, setting up bonus plans, controlling operations, etc. It is a plan
\nthat looks to use and\/or achieve prediction of future outcome i.e. forecast.<\/p>\n

Budgeting is a quantitative or financial plan that
\nrelates to the future. It can be for the whole organisation or departments or functions
\nor resources like cash, labour, materials etc. It is usually for a year or less
\n(Business Analysis, Kaplan 2014, pg 506). <\/p>\n

Purpose of Budgeting<\/strong><\/p>\n

\"\"<\/figure>\n

Master
\nBudget<\/strong> is a comprehensive projection
\nthat brings together the activity budgets for the departments or responsibility
\ncentres within the organisation or business. (Business Analysis, Kaplan 2014,
\npg 509). \u00a0It also includes the
\nfinancial planning, cash-flow forecast and budgeted profit & loss account
\nand\u00a0balance sheet<\/a>\u00a0of the business.<\/p>\n

Master budget involves preparing several functional budgets such as: sales Budget, Production budget, capital
\nasset acquisition budget and cashflow budget<\/strong>. On the completion of these
\nbudgets, budgeted income statement and budgeted balance sheet can be prepared.<\/p>\n

Sales Budget<\/strong>: Budget for future sales can be expressed in terms of revenue and\/or
\nunits of sales. Some of the factors to be considered when preparing sales
\nbudget are market demand estimate, industry analysis, current supply facility,
\nproduction capacity etc.<\/p>\n

Production Budget<\/strong>: This follows on from sales budget because sales volume drives
\nproduction volume. However, production volume varies from sales volume by the
\nset increase or decrease in inventories (finished goods or work in progress).<\/p>\n

Master Budget is advantageous to a business because it serves as
\nmotivation tool to employees as actual performance can be compared with
\nbudgeted performance, an avenue for advance or future planning and a platform
\nfor continuous improvement.\u00a0 However, it
\ncan be rigid and difficult to modify or update as it involves a lot of
\ndepartments.<\/p>\n

An error in preparation of any budget will lead to an error in master
\nbudget. Thus, as a financial manager in Caretech, I must ensure that budgets
\nprepared are feasible, achievable and not over ambitious.<\/p>\n

Evaluate how decisions about expenditure could be made in CareTech Plc.<\/h4>\n

Various
\nthings like Environmental Analysis, Focus on Priorities, Eliminating Emotionalism, Providing Balance, adjusting strategies, built-in growth and
\naccountabilities which should be put into consideration when making decision
\nabout expenditure. Before decisions about expenditure are reached, Caretech
\nmanagers can use strategic analysis tools like SWOT (strength, weakness,
\nopportunities and threats) analysis and PESTLE (political, economic, social,
\ntechnological, legal and environment) to gain understanding of the external influences
\non the organization i.e. environmental analysis.<\/p>\n

Caretech
\nas a healthcare service provider will focus on priorities such as computers
\nwith required \u00a0\u00a0\u00a0updated software,
\nequipment needed for manual handling and safety of service users, personal
\nprotection equipment (PPE) such as gloves and aprons etc. over home staff
\nhaving television and things that won\u2019t enhance the service they provide.<\/p>\n

As a manager in Caretech, I will adopt the cost analysis technique before investing in any project to estimate total cost of the project, project returns, payback period and risk assessment. Expenditure limit should be set regardless of how much return a project will bring to avoid over spending<\/a>, monitor budget and avoid incurring losses in the long run.<\/p>\n

Assuming there was financial shortfall in CareTech PLC; explain how this situation could be managed.\u00a0 <\/h4>\n

A shortfall is an amount by which a financial obligation or liability
\nexceeds the amount of cash that is available. A shortfall can be temporary,
\narising out of a unique set of circumstances, or it can be persistent, in which
\ncase it may indicate poor financial management practices. Notwithstanding the
\nnature of a shortfall, it is a significant cause for alarm \u00a0for any organisation and ought to be corrected
\npromptly whether by short-term loans or\u00a0equity<\/a>\u00a0injections. (Investopedia, 2018).<\/p>\n

Financial shortfall occurrence can be due to decrease in cash and or
\nrevenue, increase in expenses and unforeseen events. In Caretech, service users
\ncan experience financial shortfall due to inconsistency in social care system
\nmeans testing, long assessment process, inavailability of readily available
\nfunds etc. The current situation in the health care sector in the UK is
\nincreasing demand in the need for health and social care services which also
\nrequires increase in financial resources versus restricted budget leading to
\nlack of enough financial resources to meet increase in demand, hence, financial
\nshortfall. Financial shortfall can lead to late fee charges, finance charges,
\nsever relationships with suppliers and contractors etc. <\/p>\n

Financial shortfalls in Caretech can be managed, controlled or reduced
\nthrough some of the following processes: Priorities, Virement, Reserve Funds,
\ncontrolling in-flow and out-flow of cash (cash flow management), market
\nanalysis, equity injection, credit facility management, negotiating longer
\npayment term with supplier and shorter payment term with customers etc.<\/p>\n

Priorities: <\/strong>In Caretech, Capital Intensive projects or investments should be
\nproperly appraised and only the most important projects should be embarked on
\nwhilst less important ones are forgone to cut unnecessary spending and save
\nother financial resources. <\/p>\n

Cash Flow management: <\/strong>As a manager in Caretech, I must ensure that expenditure does not exceed
\nearnings or revenue, make use of accounting softwares that have built-in
\nreporting features that make cashflow analysis easy. Equity financing (less
\nrisky as money received from investors can only be repaid in the event of the
\nbusiness succeeding) can be introduced where investors become part owners of
\nthe business in exchange for their investment in the business. Also, where
\npossible, arrange longer payment term with creditors and ensure debtors are
\npaying the business on shorter payment term.<\/p>\n

Explain what action you would take if you suspect occurrence of financial fraud in your organisation. <\/h4>\n

Fraud is an act or course of
\ndeception, an intentional concealment, omission, or perversion of truth, to
\ngain unlawful or unfair advantage, induce another to part with some valuable
\nitem or surrender a legal right, or inflict injury in some manner. (Business Dictionary, 2018).<\/p>\n

Fraud Act
\n2006 classifies fraud into abuse of position, false representation and failure
\nto disclose information. Fraud poses a threat to an organisation as Caretech
\nand as negative impact on management, staff and service users. So therefore,
\nthere should be in place a robust fraud management control system to prevent
\nand detect fraud.<\/p>\n

Red flags
\n(signals that suggest fraud or fraudulent act) in caretech may include:
\ntransactions taking place at odd times to odd recipients, frequent changes in
\nbank account, inconsistencies in accounting records, missing source (original)
\ndocuments, missing inventories or physical assets, lack of segregation
\nof duties, an employees on reluctance to take time off work etc.<\/p>\n

Caretech
\nshould have a strong fraud detection policy that outlines procedures set for
\nreporting irregularities and this must be clearly communicated to all staffs
\nand also, this policy should be reviewed at intervals to ensure they are still
\nup-to-date and relevant.<\/p>\n

In
\na situation where a staff is suspected of fraud such as misappropriation of
\nfunds, theft of asset etc; it has to be reported to the appropriate manager who
\nwill in turn investigate further by identifying inherent fraud risk, assess the
\nmateriality of the fraud to the organisation, note details and deal with
\nmatters promptly. Proper investigation should be carried out following the Caretech
\nset procedure and genuine evidence collated. Further action to be taking if
\nemployee is found guilty can include displinary action, referring matters to
\nthe police or both depending on how serious the effect of the crime is.<\/p>\n

As
\na manager in caretech, I will handle the allegation without sentiments or bias,
\nfollow company\u2019s set procedure, take measure to correct risk and set controls
\nthat can prevent future fraud risks such as ensuring no staff is in full
\ncontrol of a process e.g, the same staff in charge of supplier invoices should
\nnot be the one to approve payments, ensure there are more than one signatories
\nto accounts etc.<\/p>\n

Evaluate budget monitoring arrangements in CareTech Plc.<\/h4>\n

Budgetary control is the process of making
\nplans and budgets and then monitoring actual expenses incurred\/income received.
\nIn the event of a variance between actual and budgeted, then proper corrective
\nmeasures should be taken. <\/p>\n

Budget monitoring is therefore an integral aspect
\nof the budgetary control process. It\u2019s main purpose in health and social care
\nservice providing organisation like Caretech is to ensure that total revenue
\nand expenditure budget for a period is strictly followed. This process aims at improving
\nthe success and efficiency of
\nfinancial resources management
\nthrough evaluation of actual result against approved budget; thus, creating a
\nguide for current and future decision making that provides managers with the
\nessential information required for a more accountable performance. In return, managers
\nprovide feedback about underlying reasons for variance in budget and actions
\nplanned to control variance.<\/p>\n

Budget monitoring tools includes: cash flow
\nfigures, usage of spreadsheet data and cost control training for managers.<\/p>\n

Adrian
\nWaite (2010) concluded in his briefing paper that Budgetary Control and
\nMonitoring are achieved through linking budgets to business plans, preparing
\nmanagement accounts, having effective financial regulations and standing orders
\nand allowing appropriate virement to take place. <\/p>\n

Therfore, as a manager in Caretech, it is
\nvery important that budget monitoring reports are produced on a monthly or
\nquarterly basis; this report should include variance analysis that compares
\nactual revenue and expenditure against the budgeted revenue and expenditure for
\nthe period. Where variance result is adverse, corrective actions should be
\ntaken to find out the reason for that, impact of the result on the business and
\nhow it can be controlled for future budgets. I must also ensure that company budgets
\nare realistic and feasible in line with current market prices.<\/p>\n

Identify information required to make financial decisions relating to CareTech Plc.<\/h4>\n

In
\nan organisation like CareTech, decision making takes place daily and at all
\nlevels and these decisions are imperative for the achievement of organisational
\ngoals. <\/p>\n

The
\nboard of directors and senior management may make tactical decisions about long
\nand short-term investments, how to finance investments, distribution of profit
\nto investors (dividends) and how much profit should be retained in the
\nbusiness. The Board of directors are the highest governing body of an
\norganisationthat makes tactical decision about investmentand direction of
\norganisation\u2019s future expansion. This includes executive directors<\/strong>, non-executive
\ndirectors<\/strong> and independent directors.
\n<\/strong><\/p>\n

\"\"<\/figure>\n

Managers<\/strong> on the other hand, make
\nstrategic decisions on to run their department to contribute effectively and
\nachieve business goals. Examples Chief Nursing officer, Chief medical officer,
\nGeneral managers (Finance, Qualiy Control, Public relations, Human Resources)
\netc.<\/p>\n

Employees<\/strong> make decisions on how to
\ncarry out their duties in the best interest of the company. This includes
\nNurses, Accountants, Carers, Administrators, Cleaner, hospitality staffs etc.<\/p>\n

The
\nmanagement is faced with several decisions to make which includes Capital
\ninvestment, company performance and risk management decision; to make these
\ndecisions, information such as cost, pricing, income, type of services to
\noffer, location, new strategy development etc are needed for easier decision
\nmaking. Also, each decision requires different techniques and tools.<\/p>\n

\"\"<\/figure>\n

Cashflow
\nanalysis allows managers in Caretech to understand the cash movement (inflow
\n& outflow) in the business and how much is available for future
\ninvestments. Performance analysis gives understanding of departments or area of
\nbusiness that is underperforming. To make good decisions, management need to be
\nwell informed, have good understanding of and be able to interpret financial
\ndata from the financial statements, cashflow, sales and purchase ledger, budget
\nand inventory. <\/p>\n

Analyse the relationship between care service delivered and \u2018costs and expenditure\u2019. <\/h4>\n

The
\ngeneral assumption is that having more money equals getting the best value but
\nin health and social care, this is not always the case. Therefore, service
\nusers\u2019 need to be aware and encouraged to combine data and cost when selecting
\nhealth providers and plans.<\/p>\n

Research
\nshow that spending more money may not certainly give a better quality of care.
\n(Appleby-Kingsfund); nevertheless, how quality is measured depends on
\nindividual.<\/p>\n

In
\nhealthcare setting like Caretech, quality<\/strong>
\ncan be defined as the degree
\nto which a health care service or product meets or surpasses anticipated result.<\/p>\n

As
\nidentified by National Health performance committee, a care service is
\nclassified as a quality care if it is accessible, effective, appropriate, safe,
\nefficient, responsive, sustainable, capable and continuous.<\/p>\n

Cost <\/strong>can either be the amount paid to
\nreceive a product \/service or amount incurred to make a product and or deliver
\na service while the economic cost that a business incurs through its operations
\nto generate revenue are referred to as expenses.<\/p>\n

Other
\nfactors aside cost that influence quality of care includes dedication and
\neffort of staffs, staff supervision and support, improved staff training in
\nrelevant areas, user contribution in care package etc.<\/p>\n

Although
\ncost and quality are interwoven, for cost to lead to improve quality care; as a
\nmanager in Caretech, I must ensure that clients\u2019 needs are well understood
\n& documented, pay attention to staff development and training through
\nregular performance evaluation, the availability of necessary equipment
\nrequired, that there is adequate staff supervision and monitoring.<\/p>\n

Evaluate how financial considerations impact upon a service user.<\/h4>\n

Financial
\nconsideration (or economic indices) in the health and social sector like
\nCaretech are the factors that influence the kind and level of access and
\nsupport an individual gets from the health system. These indices are set by: The
\ncentral government (eligibility, mean testing etc.), the individual health
\norganisational (total quality management, competence of staffs etc.) and by the
\nindividual themselves (affordable private care etc.).<\/p>\n

To
\nobtain services from the central government, individuals are assessed to know
\ntheir needs and evaluate risks of independence. When individual need for care
\nis ascertain, then the government decides if individual is eligible for support
\nfrom social care and their priority category. Fair Access to care services
\n(FCAS) guides the eligibility criteria which has four bands \u2013 critical,
\nsubstantial, moderate and low. An individual need assessed to be substantial
\ngives room for individual to be allocated social care services. However,
\ninadequate funding has led to the introduction of thresholds.<\/p>\n

As
\na manager in CareTech, I must ensure that care is person centred and that ensure
\nthat our staff are competent and have access necessary training.<\/p>\n

Suggest ways to improve the care service provided by CareTech Plc. through changes to its financial systems and processes.<\/h4>\n

In CareTech plc, understanding the financial
\nsystem and process will assist the organisation to make changes to the system
\nand improve quality and effectiveness of service.<\/p>\n

Gurusamy (2008) explain that financial
\nsystem is made up of inter-relationship between all financial institutions and
\ntheir process, e.g. shareholders, creditors, banks, accounting bodies etc.<\/p>\n

The
\nfollowing are the recommended ways of improving the quality of health and
\nsocial care, payment by results,\u00a0benefit cap, identifying overseas
\nvisitors and charging them accordingly, Equity and Excellence; liberating the NHS
\netc.\u00a0Payment by results is a government\u00a0policy\u00a0that\u00a0transfers\u00a0the\u00a0risk\u00a0and
\nresponsibility\u00a0from\u00a0the government to the healthcare providers. It
\nmotivates healthcare providers to improve\u00a0their services to attain
\nexcellent value for money. Because of the PRB systems, Caretech will ensure
\nthat all\u00a0services\u00a0provided meet required standards and anticipated results,
\nuser get value for money and satisfactions with the service.<\/p>\n

As
\na manager in Caretech, I would train an existing staff instead of recruiting a
\nnew one to reduce cost and retain skilled and experienced staff.<\/p>\n

Conclusion<\/h3>\n

Financial
\nsystems should be used effectively by organisations to avoid financial short
\nfall and to carry out informed decision about the organisation, hence, improved
\nstandard, enough cashflow and tactical investments.<\/p>\n

References<\/h3>\n

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NHS
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\naccessed 03\/08\/18<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Introduction This report based on the financial report of CareTech Holdings PLC dated 30 September 2016. CareTech Holdings PLC is a Healthcare organisation that provides two main services namely; Adult Services: This includes adult learning Disabilities (Residential Care, Independent supported living, Community support service) and Mental Health (Residential care, Independent supported living and Community Outreach. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8513,8512,8396],"tags":[5676,5686,5780,5294,5674,5677,5678,6403,4639],"class_list":["post-45681","post","type-post","status-publish","format-standard","hentry","category-do-my-homework-management-examples","category-management-examples","category-paper-writing-service","tag-1500-words-assessment-task","tag-ace-homework-tutors","tag-assignment-homework-help-answers","tag-bishops-writing-bureau","tag-create-a-2-4-page-resource","tag-create-powerpoint-include-harvard-referencing","tag-i-need-completed-essay-in-300-400-words","tag-write-a-3-5pg-paper","tag-write-a-page-assignment"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/45681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=45681"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/45681\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=45681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=45681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=45681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}