Managing Financial Resources in Health and Social Care Assignment

Managing Financial Resources in Health and Social Care - Assignment Example Principles of Costing and Business Control Systems May Be Adopted in BUPA The strategy of any company depends on a number of risks and uncertainties. Emphasising this particular concern, BUPA has engaged efficient risk managers who are bestowed with the responsibility to improve the credibility of the organisation in mitigating risks within the business environment. A proper costing requires sources from its stakeholders including the non-financial staff members. In this process, the staff members associated in different fields of operations can also contribute in the accurate computation of effective costing. Thus, staff members from within and outside the finance department must also be engaged, being stakeholders of the company, in order to identify the accuracy and relevancy of costing in the organisation as per the Principle 1 of NHS Approved Costing Guidance 2013 (Monitor, 2013). BUPA must also adopt this approach throughout the organisation in a consistent manner. This approac h will help the organisation to analyze the various accounting method such as cost submission and comparison as per the Principle 2 of NHS Approved Costing Guidance 2013. The costing principle, that is Principle 3, must be very much accurate in terms of its data. BUPA must be conscious of the accuracy of the data such as patient’s data, clinical staff’s performance data and the data of the trial balance or ledger of the organisation. The costing principle of BUPA must be oriented towards the material costs as per the Principle 4 of NHS Approved Costing Guidance 2013. It must focus on the high costs material, accuracy to be required for costing purposes and calculate the expenditure required in the material costs of the organisation. The costing principle must be based on the needs of the patients. In a health care organisation, the needs of the patients must be understood to enable effective costs. This understanding will improve the relation between the health workers and patients and in return create a positive impact on the financial aspect of the organisation following Principle 5 of NHS Approved Costing Guidance 2013. Again as per principle 6 of NHS Approved Costing Guidance 2013, every organisation must adopt a transparent costing system. It provides the organisation with complete assurance and develops the trustworthiness of the resources which will promote the workers with greater service delivery to their patients (Monitor, 2013). 1.2. Main Heads/ Income for BUPA in Last Financial Year The total attributable equity to the holders of the parent company of BUPA Care homes was recorded to be ?333,070,000. The major heads of income for BUPA in the last financial year were the economic capital, operational activities, funding and reserves for financial and taxation expenses. It is worth to be noted in this context that BUPA always maintains a proper capital so that it can be utilised to meet the organisational liabilities in the coming future and thereby preserve the liquidity of the company. Similarly, the other head in the income statement of BUPA can be identified as the funding generated by the company, which signifies the liquidity of BUPA and the availability of funds at any time of requirement. Notably, BUPA prepares its financial statement in accordance with the guidelines prescribed under the International Financial Reporting Standards, which in turn helps to give a true and