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{{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 outline how {{org_field_name}} prepares, manages, monitors, and reviews financial reports in line with the requirements of the Regulation and Inspection of Social Care (Wales) Act 2016, the Regulated Services (Annual Returns and Registration) (Wales) Regulations 2019, financial governance best practice, and expectations set out by Care Inspectorate Wales (CIW). Accurate and transparent financial reporting is essential for effective management, financial sustainability, accountability to stakeholders, and demonstrating that the care service is operated in a responsible and compliant manner. This policy ensures that the organisation provides complete and timely financial information and supports CIW’s oversight of service viability and quality.

2. Scope

This policy applies to all financial reporting and monitoring processes undertaken by {{org_field_name}}, including monthly, quarterly, and annual internal financial reports, budget reports, income and expenditure statements, and statutory financial submissions to CIW. It applies to the Registered Manager, Responsible Individual, company directors, finance personnel, and any external accountants or auditors engaged by the organisation.

3. Related Policies

This policy should be read in conjunction with:
CHW05 – Statement of Purpose Policy
CHW18 – Risk Management and Assessment Policy
CHW26 – Recruitment, Selection and Retention Policy
CHW27 – Staff Supervision, Training and Development Policy
CHW30 – Equality, Diversity and Inclusion Policy
CHW41 – Managing Service User Finances Policy

4. Policy Statement and Implementation

A. Legal and Regulatory Requirements
{{org_field_name}} recognises its responsibility under the Regulated Services (Annual Returns and Registration) (Wales) Regulations 2019 to submit accurate and timely annual returns to CIW, including detailed financial information that demonstrates the sustainability and governance of the service. Financial reports must evidence that the service has sufficient resources to operate effectively, meet the needs of residents, maintain staffing and facilities, and comply with all legal and regulatory obligations. The Registered Manager ensures that all financial data included in CIW annual returns is complete, reviewed, and submitted by the required deadline.

B. Internal Financial Monitoring and Reporting
The organisation maintains a robust system of internal financial monitoring. Monthly financial reports are prepared and reviewed by the Registered Manager and Responsible Individual to track performance against budget, analyse variances, and monitor the financial health of the service. These reports include:

• Income and expenditure breakdowns
• Cash flow reports
• Budget forecasts
• Staffing and agency costs
• Operational costs and occupancy-related income
• Variance analysis and explanation of any significant changes
  This process enables early identification of financial risks or inefficiencies and supports strategic decision-making to ensure sustainability and quality of care.

C. Budgeting and Forecasting
Each financial year, a detailed budget is prepared, approved by the Responsible Individual or Company Director, and reviewed by the Registered Manager. The budget reflects anticipated income (including commissioned placements, private fees, and grants) and all projected expenditure (staffing, premises, equipment, insurance, training, maintenance, utilities, and administration). Budgets are based on realistic forecasts and include contingency planning. Budget performance is reviewed monthly, with any deviations investigated and addressed promptly to prevent financial instability.

D. Annual Financial Accounts and CIW Submission
At the end of each financial year, {{org_field_name}} prepares annual financial statements which are reviewed and, where appropriate, audited or independently examined in accordance with statutory requirements. These reports are made available to CIW as part of the Annual Return and demonstrate how financial resources have been managed in relation to the purpose of the service. Reports include:

• Statement of financial position (balance sheet)
• Statement of income and expenditure (profit and loss)
• Explanation of financial performance and sustainability
• Details of any loans, funding arrangements, or investments
• Declaration of financial viability by the Responsible Individual
  These submissions are prepared with professional oversight from qualified financial advisors or accountants.

E. Staff Responsibilities and Financial Governance
The Registered Manager is responsible for day-to-day financial oversight, including checking invoices, approving expenditure, and authorising procurement in line with delegated authority. The Responsible Individual has overall responsibility for ensuring financial governance, compliance with statutory obligations, and availability of resources to maintain safe, effective care. Finance staff or administrators involved in report preparation are trained in confidentiality, data security, and reporting standards. Regular internal audits and oversight by the Company Director or appointed external accountant ensure financial integrity and compliance.

F. Data Protection and Confidentiality
All financial data is treated as confidential and managed in accordance with CHW34 – Confidentiality and Data Protection Policy. Financial records are stored securely in digital and/or physical format and are only accessible to authorised personnel. Digital records are backed up routinely and protected with appropriate cyber-security measures. Staff are trained to handle financial information responsibly and to report any breaches or concerns.

G. Risk Management and Financial Contingency
Financial risk is considered as part of the organisation’s broader risk management framework (CHW18). This includes monitoring cash flow, debt management, reliance on key income streams, emergency costs (e.g., outbreaks or repairs), and inflationary pressures. The organisation maintains a contingency reserve to respond to unexpected financial challenges without compromising care. Where risks are identified, mitigation plans are developed and reviewed regularly by the senior leadership team.

H. Transparency and Stakeholder Communication
Where appropriate, financial reports are shared with stakeholders including commissioning bodies, CIW, and the organisation’s board or governance body. This transparency supports confidence in our operational and financial decision-making. Residents and their families are provided with clear information on fees, charges, and funding arrangements through CHW41 – Managing Service User Finances Policy. Questions about financial operations are addressed openly and promptly.

I. Continuous Improvement and Compliance
The financial reporting process is reviewed as part of the organisation’s continuous improvement strategy. Feedback from audits, financial reviews, and CIW inspections is used to improve systems, templates, and training. Any failure to meet reporting obligations or financial governance standards is treated as a serious matter and investigated thoroughly.

5. Policy Review

This policy will be reviewed annually, or sooner if there are changes to legislation, CIW reporting requirements, accounting standards, or organisational needs. The Registered Manager and Company Director are jointly responsible for ensuring the policy remains up to date and is effectively implemented across the service.

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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.