Managing Financial Resources in Health and Social Care Essay - 1

Managing Financial Resources in Health and Social Care - Essay Example Be very precise and detailed on the demands you want from each stakeholder, link stakeholders’ interest with your aims, and prioritize. In the BUPA report, they work with the government and other organization to aid in aligning the agenda and long-term policies. BUPA Company should involve all the stakeholders for the proper costing to be enhanced. (Baker 2007,pg.125).  Ã‚   The principle of consistency This principle needs the following of a similar procedure and in case of any change then an explanation to the effect is therefore ideal. BUPA Care Homes should ensure that the auditors follow similar steps in the preparation of the financial statements, without this, any change might make correct interpretation of the financial data impossible (Haldane 2011, pg 134). Principle of Transparency This principle states that for effective costing, it requires openness and honesty visibility in all transactions, ensuring that all information on procurement procedures, opportunities , and processes are well outline and publicized. In BUPA Care Homes, transparency is seen when the Directors read out the annual reports and the audited financial statements (Higgins 2004, pg 118). The materiality concept An item is considered material it affects the decision making process of the users. This is the case when the material is not stated correctly or it is omitted. Materiality concept explains that costing considers the tangibility of an item and the processes involved. In BUPA Care Homes, costing should focus on the tangibility that is attached to the residential homes and the health care service. An error that is too minor to affect anyone’s knowledge of the accounts is immaterial. In the accounts preparation, tangibility and intangibility of an item should be considered, so that resources do not go to waste in the pursuit of further detail. This is usually a very subjective exercise (Field 2007, pg. 105). Objectivity: This principle requires that an accounta nt should work with the view of promoting the aims. They should be showing high levels of neutrality while executing their duties. The accountants not be biased in their operations. This therefore means that they should keep of implementing their personal responses and wishes. They should be straightforward and focused to the facts as the case guarantees. BUPA Company should ensure that the accountants prepare detailed financial statements that are simple and easy to analyze. The accountants should therefore adopt and implement neutral grounds during the analysis of the financial data and statements (Armstrong 2004, pg 46). Causality principle: In many costing exercises, it has always been noted that the cost of payment for any event or service has a relationship with its cause. The nature of the cause therefore is used in the appropriate allocation and budgeting. BUPA should use this principle; do costing after doing proper investigation and coming with the correct findings about t he cause of an occurrence so at to reduce the chances of subjectivity. This is almost similar to the principle of the proximate cause in the cannons of insurance that states clearly that for one to be compensated; the risk that has occurred must relate directly with the property insured. In insurance the compensation cost is usually based on the amount of loss and the premiums paid are based on the nature of the property to be insured (Britton 2007, pg 34). Data accuracy principle The cost of an item is always charged after the