Health and social care management Essay

INTRODUCTIONThis endeavor the author will be able to evaluate current system of ruless for managing finances Resources in health and brotherly c ar settings. Therefore will evaluate how financial Decisions are do and the pauperism to monitor ciphers. This will then enable the author to revenue the impact of financial considerations on an individual using health and genial charge portions.Furthermore will provide a core arrest of the range of systems available, and How these are apply in the planning and financial instruction of health and social fretfulness budgets. The unit further will come along understanding the importance of Monitoring budget disbursal and its influence on the provision of health and social disquiet operate.LO.11.1PRINCIPLE OF COSTING AND BUSINES CONTROL SYTEMS compend of current situation against budget and forecast, classification and coding, job priceing, Contract speak toing, authentic cost ascertainment,allocation/apportionmentCOSTING DEFINITION courting it describe as According official terminology the technique and procedure of ascertaining cost. These valuation systems including chief(prenominal) beliefs and system to determine the cost of goods or services. It excessively thequantity of allow used in replacement of goods or services. The income used can be financed or moneys value, Semi VariableSemi rigid damage hail Cost is an amount that has to be paid or given up in order to get something Cost unit of measurement The unit cost is the cost incurred by a company to rear, investment unfaltering and sell one unit of a particular harvest- prison term. Unit cost take on all fixed cost and all variant be A cost center is part of an organization that does not produce aspire profit and adds to the cost of Running a company. Examples of cost centers include Cost target Cost object is often a convergence or department for which cost is accumulated or measured. For example, a product is the cost object for direct materials, direct labor and manufacturing overhead also the factory nutrition department is cost object for the cost of the maintenance employees and the maintenance supplies. Cost benefit abstract Is A cost object is a tangible input for a product manufactured/service provided, like labor or material. For example a cloth manufacturing firm requires someBreak even analysisClassification of cost means, the pigeonholing of be according to their common characteristics. The important Cost behavior The mode a specific cost reacts to changes in activity levels is called cost behavior. be whitethorn stay the same or may change proportionatelyVariable Cost / Product CostVariable costs are the Fixed and Variable cost A cost is fixed if, inside a specified period of time, it does not change in solvent to changes in the level of activity. A variable cost is one that changes in response to changes in the level of activity, it changes in direct proportion to the masses of ac tivity, that is, doubling the level of activity will double the total variable cost total cost over a period of time for the variable inputs. Any increase in the volume of production results in an increase in the variable cost and vice versa. For example, of variable costs is the cost of raw material. Semi-Variable Cost / Semi-Fixed cost These costs are in part fixed and in part variable. For example repair cable car fees. Semi-variable cost includes both a fixed and a variable element. For example, a telephone bill contains a fixed standing charge anda variable charge based on the number of units dialled.A semi-fixed cost or stepped cost is one where the cost remains constant for a range of activity then when the activity increases still further the cost will take a step upward. Break-even Analysis is an expected percentage of most phone line plans, especially for start-up companies. It shows how much revenue you need to mask for both fixed and variable costs and cost benefit a nalysis are frequently used by health and social deal out formation to monitor cost and make finale about expenditures. Cost data are very useful in budget zeal and forecasting for the financial stratum, the Providers use cost data to manage services and improve operational efficiency. Cost data are also used to support the development of pricing and currency design for reimbursement purposes A direct cost is especially noticeable to a set cost object.A cost object is a product, procedure, section, or action for which the health establishment requirements to assess the cost, such(prenominal) as a medical test, a reverence appointment, or a health check process. Indirect costs cannot be traced to an agreed cost purpose not including resorting to some arbitrary mode of assignment. Hand, is directly involved in producing revenues, and, if it is managed well, its revenues exceed its cost and it produces a profit.The vi principles of be areStakeholder engagement Stakeholder enga gement is the process by which an organisation involves people who may be affected by the decision it makes or can influence the implementation of its decision Materiality is in accounting relates to the significance of transaction, balances and errors contained in financial statements. . Consistency For some costing purposes, a consistent approach is required across or within organizations. info accuracy, Accurate costing relies on the quality of the underlying input data. hydrofoil Costing should be transparent and auditableCausality and objectivityImportance of costingCosting help an organisation to manage is company to incur a cost with theexpectation of profit Example A company may have a variety of distinct departments,division,or in operation(p) groups, all(prenominal) with separate responsibilities and each contributing to the overall success of the company.cost centers,for example,such as accounting,auditing,or inventory fake,have costs,but does not grant revenues. A s a result, they do not produce profits.1.2 The information compulsory to manage financial imagerysIs to understand the role of planning in the precaution of health and social give care budgets also the importance of monitoring budget expenditure. Such as transparent and Accurate accounting Information, risk watchfulness, inadequate and long term Forecasts, audit report.Information1 Need is business costs, people, equipment, finance, buildings, consumable items, administration Income streams styluss and foreign influences, e.g. changes in policy, competitive factors, legal requirements.1.3Regulatory requirements decree and codes of practice, audit, accountability, policies. administrations sources of income, how budgets are set, administration of budgets, cost centers, accountabilities, Audit requirements Information business costs people, equipment, finance, buildings, consumable items, administration Income streams trends and external influenceschanges in policy, competit ive factors, legal requirements.1.4 System for managing financeIs a plan, assuring that resources are obtained and used effectively, efficiently in the accomplishment of the organizations goals. Therefore, it focuses on programs and responsibility center and it is a total encompasses of all aspects of a firms operation and commonly built around a financial and accounting structure need cardinal types of information for management assure planned date such as, budgets, standards, and projections) andactual data.Budgetary control systemCost control systemFinancial control systemInternal control and audit endeavour resource management systemIT control systemsImportance of business control systemLO2 ROLE OF PLANNING IN THE MANAGEMENT OF CARE tech BUDGETCare tech annual reportFinancial look backwardThe Group has repeated the good progress of recent years in 2013 The UK market Group has go along to be progressive and has made boost progress during the year. The underlying operating profit remains strong at 23.2m compared with 21.7m last year.Transaction on 28 August 2013 to acquire two property portfolio businesses, leading to an annual rent saving Of 4.4m.Income Statement2013 2012m m GrowthRevenue 114.3 114.1 0.2%Gross profit 45.6 45.3Administrative expenses (19.2) (20.4) cardinal EBITDA 26.4 24.9 6.0%Underlying EBITDA margin 23.1%, 21.8%Depreciation (3.1) (3.1)Share-based payment charge (0.1) (0.1)Underlying operating profit 23.2 21.7 6.9%Net financial expenses (5.7) (5.0)Underlying profit before tax 17.5 16.7Taxation (3.4) (3.4)Effective tax rate 20.0%, 20.0%Underlying profit for the year 14.1 13.3Weighted average number of diluted shares (millions) 51.3 50.4 Underlying diluted dough per share 27.43 26.47Full year dividend per share 7.00p 6.50pRevenueRevenue of 114.3m (2012 114.1m) was 0.2% higher(prenominal) than in 2012. In the established Adult Learning Disabilities segment we continued to experience high levels of occupancy2.1 Diverse sources of income 2.2 Factors that may influence the accessibility of financial resources 2.3 Types of budget expenditure2.4 Decisions about expenditureTASK 3 IMPORTANCE OF MONITORING BUDGET EXPENDITURE IN CARE technical school3.1 Managing financial shortfalls3.2 Financial boloney actions3.3 Budget monitoring arrangementsLO.4 INFLUENCE OF SYSTEMS AND PROCESSES ON CARE TECH SERVICES 4.1 Information required in fashioning financial decisionsDifferent types of information are needed by decision makers reckoning upon the stage of operation they are in. The decision involved can be Quantitative or qualitative. Judgments regarding movements in succeeding(a) share prices, likely future dividend payments and management efficiency. Ratios to determine management efficiency. Data to compare the market trend and future estimates.4.2 Relationship betwixt care service delivered and costs and expenditure 4.3 Impact of financial considerations on a service user4.4 astir(p) care services through changes in fi nancial systems and processesBottom of have.Of fraud.4 Understand how systems and processes for managing financial resources influence health and social Care services Financial decisions responsibility for decision making, information available, sources of income, prioritiesThe relationship between service delivery, costs and expenditure cost-benefit, pricing policies, purchasing Arrangements. Impact on individuals quality of service, access to service. Recommendations options available, supporting evidence, information to be presented for discussion by financial decision makers. Information about the business environment and external influences Good understanding Of the business cost by health care managers will aid the management of financial resources in health care organisation. The information includes Staff cost (Wages and salaries, Pension cost) Medical equipment and appliances cost (Hoist, Buckets, Buckets, Stretcher, Trolley, Wheelchair) Cost (Outright purchase or rental Operating or finance lease Cost of consumable items (Food, toiletries, Soap, Kerosene, lanternAdministrative cost and Professional fees The revenue (income) receives depend on the service and business engagement of the health organisation which includes modal(prenominal) business activities such as (Adult Learning Disabilities, Mental Health, Young pot Residential Services, Foster Care rents and service charges from social housing lettings and leasehold management revenue grant, tax support contribution.The Regulatory bodyThey are alot of regulatory required for satisfying while managing financial resources, but in this essay the author will mention a few such as, Care tech holding PLC in 2013 financial ending. Care Quality Commission,health care Sector Regulator Monitor, NHS Commissioning Board,1. Important to monitor to avoid fraud and eororWhat is Importance of costing in HSC1.2Intoduce by defining business control systemsIdentify and explain the different business controls sy stems in BULLETS (Budgetary control system, Cost control system, Financial control system, Internal control and audit, Enterprise resource management system, IT control systems) Conclude with the importance of business control systems.