Managing Financial Resources in Health and Social Care Essay

Managing Financial Resources in Health and Social Care - Essay Example The essay presents how various aspects of financial resources should be managed in health and social care. It is the responsibility of the management to ensurethat funding is available to meet the daily needs of the organization. In the cause of events, finance may be needed in order to invest in equipment stocks, pay employees, equipment and cater for sales made on credit. If not well taken care of, sources of finance may end up dry; this may make an institution to be in financial jeopardy. Financial control plays a critical role in helping the business meets its objectives.As a manager, my role is to ensure that all these are achieved. Financial shortfalls arise when an organization cannot pay its bills on time due to lack of cash. As a manager I have been oriented to be proactive about financial shortfalls while upholding an account for contingency all the time. Through review of BUPA’s cash flow for the last six months, the company is capable to determine the cash flow in terms of expenditure and income; this aids the company in reserving cash needed for purposes of expenditure for the subsequent six months. After realizing the company’s assets, the company has a well-planned schedule on how to pay its suppliers to avoid conflicts with respective suppliers. The company also encourages early payments from the customer by offering discounts on such payments; this increases the chances of early cash availability. Payment of suppliers on a scheduled basis helps the company to avoid shortfalls since suppliers get their due especially when the funds are available. Fraud is an obvious threat to organization’s resources and therefore must be a concern to all employers and employees within a specific jurisdiction (Petrucelli 2002). In the event of fraud, managers are expected to set good example by conforming fully to procedures and controls. As a manger, quick action is necessary to avoid any further loss bearing in mind that this is just an al legation and until the outcome of investigation is determined. Movement and preservation of evidence to a safe place or location is vital where practicable. Both internal auditor and director of finance are supposed to be notified. Prompt and vigorous investigation should be carried out; after that, report findings should be forwarded to both internal auditor and director of finance. If possible consult with the appropriate departments concerned or involved. Notification to security agents should be carried out by the manager following consultation with the executives of the BUPA at National Director Level. As some may put it, coming up with a budget may be easy, sticking to it is the hard part. A well planned budget has little no impact without willpower and close monitoring (Amey 1979). A system for recording expenses and producing reports should be in place. As a manger, insisting on regular monitoring reports is way of ensuring that whatever was projected in the budgets is follo wed to the latter. Through monitoring reports, it makes it easy to determine actual spending at a particular period of the month compared to what was projected in the budget. The level of expenditure should be documented and clear reports drawn from them; the concerned departments should be informed so as to get their input on the same. The audit committee should review the reports. After conclusion, there should be immediate action taken