{{org_field_logo}}

{{org_field_name}}

Registration Number: {{org_field_registration_no}}

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Financial Reports Policy

1. Purpose

The purpose of this policy is to ensure {{org_field_name}} operates in a financially responsible, transparent, and sustainable manner through the consistent production, monitoring, and review of accurate financial reports. This supports good governance, regulatory compliance, and the delivery of safe, person-centred services. It also ensures that financial decisions are informed, risk-aware, and in the best interests of both the organisation and the people we support, in accordance with Regulation 17 – Good Governance and Regulation 13 – Financial Position.

2. Scope

This policy applies to the Directors, Registered Manager, finance team, administrative staff, and any external financial advisors or auditors associated with {{org_field_name}}. It includes responsibilities related to preparing, reviewing, and managing financial reports for operational activities, regulatory submissions, budget planning, and performance evaluation.

3. Related Policies

• CH04 – Good Governance Policy
• CH13 – Safeguarding Adults from Abuse and Improper Treatment Policy
• CH17 – Infection Prevention and Control Policy (for cost monitoring)
• CH18 – Risk Management and Assessment Policy
• CH26 – Recruitment, Selection, and Retention Policy (for payroll budgeting)
• CH41 – Managing Service User Finances Policy

4. Policy Statement and Responsibilities

Commitment to Financial Accountability and Transparency
{{org_field_name}} is committed to producing timely, accurate, and meaningful financial reports to support operational oversight and maintain regulatory confidence. These reports ensure that the organisation is financially stable, capable of meeting its obligations, and operating in line with its care objectives. Financial transparency helps build trust with regulators, stakeholders, and the people we support.

Types of Financial Reports Produced
The following reports are produced routinely and reviewed by appropriate personnel:

• Monthly Management Accounts: Include income, expenditure, variances, and narrative commentary
• Cash Flow Reports: Forecast income and outgoings to maintain liquidity and operational stability
• Annual Financial Statements: Prepared in accordance with accounting standards for external audit and submission to regulators
• Budget vs. Actual Reports: To monitor financial performance against annual budgets and respond to variances
• Payroll Reports: To ensure all staff are paid correctly and costs are within forecast
• CQC Financial Viability Reports: To confirm the provider’s ability to meet the financial requirements of the regulated activity
• Ad hoc Reports: Including scenario-based modelling, grant reporting, or Local Authority funding breakdowns

Roles and Responsibilities

• Company Director ({{org_field_company_director_first_name}} {{org_field_company_director_last_name}}): Has ultimate responsibility for financial oversight and ensuring statutory obligations are met
• Registered Manager ({{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}): Supports the monitoring of expenditure and budget usage in line with operational needs
• Finance Administrator (or equivalent role): Maintains records, prepares regular reports, and supports audits
• External Accountant (if applicable): May be contracted to prepare annual accounts or advise on complex matters

Controls and Review Process
Financial reports are:

• Reviewed monthly by senior management and discussed in governance meetings
• Approved by the Company Director before submission to external parties
• Shared in summary form with the Board or equivalent body (if applicable)
• Used to identify early warning signs of financial risk or overspend
• Benchmarked against industry standards and internal targets

Ensuring Data Accuracy
All financial data is entered into secure, GDPR-compliant systems and reconciled against bank statements and payroll systems monthly. Invoices, receipts, contracts, and supporting evidence are retained in accordance with our data protection policy and financial regulations. Double-check procedures are applied to high-value items or complex transactions.

Financial Sustainability and Compliance
In line with Regulation 13 – Financial Position, {{org_field_name}} must remain financially solvent and able to meet current and future obligations. Financial reports are used to:

• Ensure the availability of resources for delivering safe and effective care
• Monitor expenditure linked to staff, equipment, and running costs
• Forecast future income streams and plan for growth or changes in commissioning
• Provide assurance to CQC and funders that the organisation is financially viable

Safeguarding Against Financial Mismanagement
Any anomalies, misuse of funds, or discrepancies in financial reporting are investigated immediately and escalated to the Company Director and Registered Manager. This forms part of our safeguarding approach under Regulation 13 – Safeguarding from Abuse. External audits may be commissioned as part of corrective or preventative measures.

Training and Staff Development
Relevant staff involved in financial processes receive training in:

• Understanding financial reports
• Budget monitoring
• Ethical handling of finances
• Use of finance software and systems
  Training needs are reviewed annually and incorporated into staff development plans.

Communication and Reporting to Stakeholders
Where applicable, financial performance summaries are shared with external stakeholders such as Local Authorities, commissioners, grant bodies, and people we support. Reports are made available in clear formats and tailored for non-finance audiences where appropriate.

Regulatory Reporting and Audit
{{org_field_name}} complies with all financial reporting requirements set out by:

• The Care Quality Commission (CQC)
• Companies House (if applicable)
• HMRC
• Local Authorities and funders
  Annual accounts are submitted on time, and we cooperate fully with financial inspections or audit requests from regulatory bodies.

5. Policy Review

This policy will be reviewed annually or sooner if required due to changes in financial legislation, CQC guidance, or organisational structure. Updates will be disseminated to all relevant staff, and training will be refreshed accordingly to ensure ongoing compliance and financial integrity.

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Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
Copyright © {{current_year}} – {{org_field_name}}. All rights reserved.