Managing Financial Resources Example

Managing Financial Resources Example Managing Financial Resources â€" Coursework Example > 4.2 The relationship between care service delivered and ‘Costs and expenditure’114.4 The following are some ways through which CareTech PLC could improve the health and social care services through changes in its financial systems and processes13Conclusion: 13References: 15Introduction: Health and care organization could either be publicly or privately owned. Depending on the form of ownership, the organizations may attract revenue from various sources. While publicly owned health and care institutions may attract funding from the government, the privately owned organizations mainly attract funding from the services they offer to the patients or customers. Regardless of the source of income, prudent financial management is vital for these organizations in a bid to ensure they are able to run effectively and efficiently without having to run into financial difficulties. This would ensure they continue to give quality services to their customers at all times. In addition, where there is prudential management of financial resources, the organization can quickly recover from any financial shortfalls it may be encountering. This call for putting in place various financial management plicies including auditing and internal controls that will help the organization better manage its resources. In addition, this will prevent fraud from occurring. This paper looks at financial management at CareTech PLC within an aim of analyzing its strengths while suggesting areas of improvement. CareTech Holdings PLC1.1The principles of costing and business control systems that may be adopted in CareTech Holdings PLC CareTech ought to use the approved guidance which recommends the costing approaches to be used by health and care service providers. Thus, in their costing processes, CareTech ought to employ the following principles; Engagement of stakeholders- in its costing processes, CareTech should involve all the concerned stakeholders including those in the finance departme nt and other non â€"finance departments in a bid to ensure all input factors are considered in determining cost (Monitor (2013). The costing approach that CareTech chooses to adopt should be applied consistently within and across the organization to ensure consistency. The costing system at CareTech should ensure high level of data accuracy as accurate costing will depend on the quality of the underlying input data. There should be materiality in CareTech costing system implying that its costing efforts ought to focus on material costs and activity (Scott, S2014). CareTech ought to observe causality and objectivity in their costing activities. This would be for the purpose of eliminating or minimizing subjectivity in costing. CareTech ought to observe transparency in their costing activities. Furthermore, they should adhere to relevant accounting principles to ensure their costing is auditable. CareTech should also ensure it adopts business control systems that enable it carry out its strategy through efficiency obtainment and allocation of resources while minimizing chances of error and fraud. In this regard, CareTech should put in place the following business control systems; Budgetary controls with annual budgets that have realistic estimates of income and expenditure in a bid to ensure expenditures stick to the planed limitsThere should be bank and cash controls ensuring all money receipts are recorded and safeguard against theft or loss and appropriately bankedAdopt expenditure and purchasing controls with procedures for authorization and related controls for ensuring that only the required goods are ordered while purchases are sought at the best prices and all relevant transactions recorded to ensure transparency (Kevin, 2014)There should be payroll and personnel controls to ensure proper authorization of salary and related statutory payments including PAYE to safeguard against theft or fraud. 1.2 Information needed for managing financial resources for CareTech