John and Jill are old students of WLCBMS who have completed their HND in Health and Social Care Management. They are setting up a new dynamic care home in Hounslow. John and Jill contact you to join their team as they remember you had a particular interest in finance. You have a preparatory meeting with some potential investors, one being Hounslow Council. John and Jill ask you to prepare the following points in your report to present to the meeting. TASK 1 Understand how systems are used to manage financial resources in health and social care Explain to the committee the expenditure, budget, capital and potential income for your new dynamic care home. For this part of the report you will need to explain what principles of costing will be used and what would be the most appropriate business control systems to monitor financial information within the home. Identify to the committee which information will be needed in order to manage the financial resources. In this part of the report you should consider your business costs. Explain to the committee what regulatory requirements need to be considered in terms of legislation, codes of practice and policies when managing the financial resources of the care home. In summation of your report, tell the committee your opinion of what would be the best system for evaluating financial resources of your care home. After your meeting with potential investors and the council, you decide to have a meeting with John and Jill to discuss with them some other sources of income. You prepare a PowerPoint presentation to explain your points clearly. TASK 2 Understand the role of planning in the management of health and social care budgets In your meeting with John and Jill discuss the diverse sources of income that may be encountered in health and social care such as public, private, voluntary or national funding. You will need to undertake some research to present your ideas. Looking at the answer for 2.1 analyse the factors that may influence the availability of financial resources in health and social care organisations. You may want to include outsourcing, types of specialised services and inter- agency partnerships. Different types of budget expenditure have different effects within a care home. Review at least 2 different types within your presentation. In your presentation suggest to John and Jill what factors should be taken into consideration when making decisions about the care homes expenditure. You should consider short, medium and long term planning, cost benefit analysis and environmental analysis After your presentation, John and Jill need some clarity on how to monitor the finance of the care home. John and Jill want to maintain as much transparency and accountability as much as possible. To safeguard themselves, John and Jill ask you to include information on what to do when potential fraud is suspected. John and Jill ask you to email them with the information.TASK 3 Understand the importance of monitoring budget expenditure in health and social care organisation Explain to John and how the care homes expenditure can be monitored and how shortfalls can be managed. You may want to include in your email information required for monitoring expenditure such as spreadsheet data, cash flow and controlling costs. As requested by John and Jill, explain to them what actions need to be taken when fraud is suspected when analysing the financial information for reliability, validity and sufficiency. John would like to know how to report evidence of fraud. In an evaluative summary tell John and Jill which budget monitoring arrangements would be the best for their care home. John and Jill have given you full responsibility of the financial management of the care home. They ask you to keep them informed of any high impact decisions and unexpected costs. You are to report back to John and Jill quarterly.TASK 4 Understand how systems and processes for managing financial resources influence health and social care services Identify what information is required to make the financial decisions for the care home. You may want to include in your answer, sources of income, information available and who is responsible for making the decision making. Analyse the relationship between the care home service that is delivered and the costs and expenditure. You may want to include in your answer cost benefit analysis, pricing policies and purchasing arrangements When looking at financial considerations we must also consider the impact on the individual, such as quality and access to service. Evaluate the impact of such considerations. Hounslow council were very impressed by your report. They wanted some input into how to make the care service more efficient within Hounslow. They have asked you for your suggestions on ways to improve the care home service through changes in financial systems and processes.