managing financial resources

Topics: Generally Accepted Accounting Principles, Economics, Financial statements Pages: 11 (3014 words) Published: November 6, 2014

St. Patrick’s College London

HND Health and Social Care Management

MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE

John Egharevba

CONTENTS PAGE

INTRODUCTION…………………………………………………………….….p.3

LO1 Understand how systems are used to manage financial resources in health and social care 1.1…………………………………………………………………………..………pp.3-4 1.2…………………………………………………………………………………..pp.4-5 1.3..............................................................................................................................pp.5 1.4..............................................................................................................................pp.5-6

LO2 Understand the role of planning in the management of health and social care Budgets 2.1……………………………………………………………………………….….p.6 2.2…………………………………………………………………………………..p.6 2.3…………………………………………………………………………………..p. 7 2.4..............................................................................................................................pp.7-8

LO3 Understand the importance of monitoring budget expenditure in health and social care organisation 3.1…………………………………………………………………………………..p.8 3.2……………………………………………………………………………..……p. 8 3.3…………………………………………………………………………………..p. 9 LO4 Understand how systems and processes for managing financial resources influence Health and social care service 4.1............................................................................................................................p.9 4.2............................................................................................................................p.10 4.3............................................................................................................................p.10 4.4.............................................................................................................................p.10

REFERENCES……………………………………………………………….....p.11

INTRODUCTION
This report is going to be base on a case study of Silloth Nursing and Residential Care Home audited financial statement for the year ended 31 March, 2008 which deals with principles of costing and cost control systems, it will also details how systems are used to manage financial resources in health and social care, the systems and processes for managing financial resources, monitoring budget and expenditure and planning in the management of health and social care.

1.1 The principles of costing and business control systems
In relating to the case study, cost control is the means by which the costs incurred by an organisation are identified, quantified, grouped together in an appropriate manner, and compared with planned limits. This comparison gives management the information they need to know the effects of their operations, and to help them to reach decisions. The amounts incurred in the provision of goods and services is known as costs. An organisation will want to know how much they have spent on goods and services, but first the organisation need to calculate the costs of other things which help to provide for its goods and services, this will help the organisation to know if they are making profit or losing money by calculating the cash inflow. There are different types of cost, the type of cost incurred will vary according to the goods and services being produced/acquired by the organisation. Cost can be classified as either direct or in direct. In relating to the case study, the organisation decided to choose direct and indirect cost. Direct costs are costs which can be traced in full to the product, direct costs are usually identified with goods or services e.g. staff cost, establishment cost, maintenance of patients, domestic etc. Indirect costs are those costs which cannot be directly identified with a particular product e.g. budgeting, purchasing, preparing of payroll etc. Business control systems is the system for monitoring business activities,...

References: Broadbent, M. and Cullen, J. (1993) Managing Financial Resources. Third edition. Oxford: Heinemann.
Coleman, M. and Anderson, L. (2000) Managing Finance and Resources in Education. London: Sage.
Dixon, R. (1993) The Management Task. Third edition. Oxford: Heinemann.
EDEXCEL (2001) Business and Management. London: BPP.
EDEXCEL (2010) Business Essentials. London: BPP.
Mckinney, B., J. (2004) Effective Financial Management in public and Non-profit Agencies. Third edition. Westport: Greenwood.
Parkinson, A. (1997) Managerial Finance: The Institute of Management. Oxford: Heinemann.
Weaver, M. (1998) Resources Management. Oxford: Heinemann.
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