2. Foundation in Financial Management for Irish Health Services Managers
‘Introduction to the Programme’
This is the first in a series of instructional videos on HSELAND to support Self-Directed Blended Learning Programmes. This video is one of five to support the Foundation in Finance Management Programme for Irish Health Services Managers.

3. GM, Corporate HR, Leadership, Education and Development
Foundation in Financial Management Self-Directed Blended Learning Programme (Managerial Accounting)
2015
Tony Liston
GM, Corporate HR, Leadership, Education and Development

4. Self Directed Blended Learning Programme Series – supported through www.hseland.ie
“In its broadest meaning, ’self-directed learning’ describes a process by which individuals take the initiative, with our without the assistance of others, in diagnosing their learning needs, formulating learning goals, identify human and material resources for learning, choosing and implement appropriate learning strategies, and evaluating learning outcomes.”
(Knowles, 1975, p. 18)

5. "Blended Learning (Staker / Horn - May 2012)"
Blended learning is a formal education program in which a student learns at least in part through online delivery of content and instruction with some element of student control over time, place, path or pace.
"Blended Learning (Staker / Horn - May 2012)"
Blended

6. Blended Learning

7. Target Audience for this Programme
All Health Services Managers – particularly:
New Managers/Supervisors……………
Managers who deal with any element of purchasing, procurement or budgetary processes (directly or indirectly)
Managers who wish to deliver value for taxpayer money and be fully compliant.
YOU !

8. Foundation- To be built on (Assumes little or no previous knowledge – Keeping it simple)
Assumes little or no background in Finance or Accounting. New Foundation / Rediscovering old Foundation & building. Tidy up around the edges – re

9. Success factors Willingness to learn & to try out new media
Permission to engage fully
Access to resources
Discipline to commit
Confidence in tutor / facilitator / learning
environment and other learners

10. Introduction Tony Liston (tony.liston@hse.ie)
HSE Corporate HR - General Manager –
Leadership Education & Development.
BA Hons Business & Management, (UU)
PG Advanced Diploma in Education, (UU)
Masters in Business Administration, (UU)
MA Business Research, (UB)
Senior Lecturer Business – Including Financial Accounting
& Management Accounting on University of Ulster
undergraduate programmes
Important thing – Education Qualifications. Business Qualifications. Experience as Lecturer and Experience of the HSE. Programme has already been piloted be it in slightly different format and evaluated. Lessons learned reflected in programme

11. Acknowledgements
Wish to acknowledge support from colleagues within HSE Finance Dept in developing content for this programme ( ).
Ultan O Sullivan, Management Accountant, Finance Dept, HSE West (W)
Elaine Somers, Manager, Financial Planning and Analysis,
Finance Dept, HSE West (NW)
Niamh Thornbury, A/SEO Finance Dept, HSE West (NW)
Alan Moran, Assistant National Director – HSE Internal Audit –
Content Quality Assurance.
Mark Fagan, Assistant National Director, HSE Finance Dublin North East
Quality Assurance & Accreditation
Pat Kenny, National E-Learning Manager
Audrey Kelly, Administration Support HSELAND

12. Financial Management (Management Accounting) Managing Money, Funds, Resources – Public Sector - Taxpayers money managing it on their behalf.
Mixed up terminology - Managing Money, Funds, Resources – Public Sector - Taxpayers money managing it on their behalf.

13. Welcome Introduction Structure of Programme
Rationale, Aims Objectives, Learning Outcomes
Lesson Plan 1 to 5
Module1. Lesson 1

14. 5 Minutes- Write in to text box
Your Name, Job Title, Location
Identify 3 (or more) pieces of learning you are hoping to get from this programme ?

15. Responses – All expectations articulated by participants (below) appear to be in line with the established programme objectives
Getting overview of managing budgets Week 4-5
Budget management Week 4-5
Gain a better understanding of Financial Regulations. Week 2-3
I am hoping to gain practical skills and knowledge around Management Accounting that will enhance me in my role as a Business Manager. Week 1-5
overview of financial management . Week 1-5
WTE management as a manager as I am new to my role. Week 4-5
Develop an understanding of key Financial Reports. Week 1-5
How to manage a budget, how to read financial data and understand it. Financial and resource forward planning... Week 4-5
I am hoping this course my give me a good overview of Budgets and Budget Management and where I fit into this in the HSE. Week 4-5
greater understanding of financial regulations, managing budgets & resource planning Week 1-5
Delivering the best service possible with the resources and budget available to the directorate Week 1-5
Develop skills that will assist me in my role as Business Manager Week 1-5
General overview of legislative financial responsibilities, how to manage budget, how to plan re resources, Overview on ABF Week 1-5
Manage Budgets, Better understanding of Financial management, Develop an overall competence in interpreting financial reports. Familiarize myself with financial regulations. Week 1-5

16. Structure of Programme
Five (5) Independent Modules (Lessons)
Incorporating (Minimum) Thirty (30) Learning Hours
Programme modules are best taken on a sequential basis.
Each module includes:
1 Hour on line Tutorial
Powerpoint Presentation
E-Learning element
Related resource documents
Participant Reflective Blogs
Related Discussion Forum
Frequently Asked Questions
All resources available on through the
Leadership Development Hub
Programme Accredited and Certified based on satisfactory registration and completion of all assessments.

17. Virtual Classroom Tutor available from 9.30am Formal Class10am to 11am
Tutor available again from 11am to 11.30
Tutor available through e.mail
Tutor comments and support through Blogs and Discussion Forum

18. Rationale
Rationale: In order to perform effectively as a manager within the Irish Health Services a clear understanding of  key financial concepts is required as well as a full understanding of the substance of  HSE Financial Regulations as they apply to each role. In addition managers must be able to interpret financial information in order to make appropriate decisions and take appropriate action as required.

19. Introduction to programme
Aims
On completion of an integrated programme of learning, managers who have fully engaged with the programme will be more confident and competent in their management of Financial Resources

20. Objectives (7)
To introduce the key concepts of Finance (Financial & Management Accounting)
To consider the main types of Financial Reports and Information available in Irish Health Services organisations
To consider the basic controls that should operate in a Health Services organisation and identify the role of the internal and external auditor.
To introduce and explain financial regulation within the HSE
To familiarise managers with the essence of all of the current HSE Financial Regulations
To explain basic costing principles and how good costing information can help with decision making
To develop competence around reading and interpreting budgetary information and undertaking variance analysis.

21. Learning Outcomes - 6 Levels (Bloom’s Taxonomy of Learning)

22. Bloom’s Taxonomy of Learning
Bloom’s Taxonomy is a hierarchy that describes levels of learning. Many students learn
information at the knowledge level; However, these higher levels focus on the ability to understand fundamental concepts, to apply ideas to solve problems, and to think in terms of the discipline.
Knowledge
Memorize and recall information (but with no evidence of understanding)
Comprehension
Understand concepts and be able to describe them in your own words
Application
Use knowledge and understanding to solve problems; transfer abstract or theoretical ideas to practical situations
Analysis
Identify component parts of concepts so organisational structure and relationships may be understood
Synthesis
Put parts together to form new meaning or structure
Evaluation
Make judgments about value of ideas

23. Learning Outcomes
As a result of full engagement with the designed programme of learning participants will be able to:
Clearly understand key financial concepts (K&C)
Identify key HSE Financial Reports (K&C)
Understand the full range of Financial Regulations as they apply within the HSE (K&C&Ap)
Comply with all of the principles of the ‘Purchase to Pay’ and other applicable regulations (K&C&Ap)
Promote and operate basic controls and ensure compliance with all regulation (K&C&Ap)
Understand and apply basic costing and budgetary principles (K&C)
Interpret and use financial data for decision making. (K&C &Ap&An &Syn&Eval)
Reflect and build on their own Learning (K&C & An & Syn & Eval)
Knowledge, Comprehension, Application, Analysis, Synthesis, Evaluation.

24. Format
Blended
Lesson Plan
Coursework
Assessments

25. Intro to Programme
– Irish Health Services On Line Learning Portal
Leadership Development Hub
Dedicated Learning Resources
E Learning Programme Element
Discussion Forum
Frequently Asked Questions
- Tutor
On Line Assessment
Case Study assessment

26. Classroom Technology – Citrix: Goto Meeting
Tutor in Control – (Can be given over to participant)
Sound VOIP or Telephone
Cameras (Bandwidth issues)
Desktop – Tutor’s
Textbox – Questions, Comment -Private or Shared

27. Structure of Programme
Lesson 1 : Introduction to programme and Overview of Finance in The
Irish Health Services. Accounting – Financial & Management
Lesson 2 : Financial Regulation 1
Lesson 3 : Financial Regulation 2
Lesson 4 : Costing and Budgeting
Lesson 5 : Budgetary Control and Variance Analysis

28. Lesson Plan : Lesson 1 Welcome Introduction
Aims, Objectives Learning Outcomes
Introduction to learning programme delivery & assessment
Intro to elements & resources
Overview of Finance in the Irish Health Services
Accounting: Financial Accounting
Management Accounting
Introduction to HSELAND – Learning Environment & Leadership Development Hub
Intro to Financial Management – e-learning programme
Module 1 : Principles of Financial Management
Module 2: Reporting……………….……………….
Readings

29. Overview of Finance in the Irish Health Services
Government Accounting
Public Expenditure
Health Expenditure and Resourcing
Budgetary Process
Annual Health Service Plan
Finance in the HSE
Finance Reform Programme

30. Accounting
“Accounting is the means by which information about an enterprise is communicated and, thus, is sometimes called the language of business.”
Williams, J., S. Haka, M. Bettner and J. Carcello (2009), Financial Accounting, New York, NY: McGraw-Hill. p 151

31. Language of Business Rules – Structure , Meaning, Interpretation
Fluency, Grammar, Punctuation,
Syntax etc

32. Government Accounting (Public Sector- Ireland)
The Constitution, Legislation and Circulars provide the framework in which the financial information of the Central Government area is to be accounted for and reported on. The Public Financial Procedures (Blue Book) is a comprehensive, though not exhaustive, summary of public financial management.
(Dept of Public Expenditure and Reform)

33. Government Accounting Dept of Public Expenditure and Reform

34. Public Financial Procedures Guide
PFP is a practical guide to assist all officials to gain a better understanding of the public service financial management framework.
It sets out the relevant constitutional, statutory, parliamentary and administrative requirements; emphasises the need for economy, efficiency and effectiveness; and promotes good practice and high standards of propriety.
Throughout the guide, which should be viewed as an authoritative summary, references are provided to relevant source documents and resources where more detailed technical guidance and direction in relation to particular areas can be obtained.
(Resource materials Lesson 1 available on Leadership Development Hub)

35. Reflected in HSE National Financial Regulations
Guidance
Reflected in HSE National Financial Regulations
NFR to NFR )
(Lesson 2 and 3)
‘It is the responsibility of all Budget Holders, managers and staff to ensure that the day-to-day operations and procedures of the organisation comply with the Financial Regulations’.

36. Public Expenditure in Ireland 2015 (Gross Voted)
Current Expenditure 2015: € billion
Social Protection : 39%
Health: 26% (€13.08 billion)
Education: 17%
Justice: 4%
Agriculture: 2%
Jobs Enterprise and Innovation: 1%
Other: 11%

37. Public Expenditure in Ireland 2015 (Gross Voted)
Capital Expenditure 2015 : € 3.5 billion
Public Transport: 9%
Road Transport: 18%
Education: 16%
Health: 11% (€382 million)
Enterprise: 13%
Agriculture: 6%

38. Health Financing in Ireland
Mix of Public and Private
2nd Largest Component of Public Expenditure
(after Social Protection)
Public (Tax & Non Tax Revenue) 80%
Allocated to Minister – Health Vote - DoH&C
HSE – Administers - You Manage it !!!
Balance-Private
Direct Payments (10-15%)
Health Insurance Claims (8-9%) Aviva Health, GloHealth, Laya Healthcare and Vhi.

39. Government Current Expenditure
Details of Government Current Expenditure,
€ million
Social Protection 17, , , ,947
Health , , , ,901
Education , , , ,678
Justice , , , ,400
Other , , , ,145
Expenditure Ceiling
Health , , ,359

40. Changes in Health Expenditure
Capital Non-Capital Total
, ,440
, ,162
, ,709
, ,520
, ,078

41. 2016
+ € 900 million compared to 2015
€ billion – Current Expenditure
€ million – Capital Expenditure
Total € billion

42. National Budget Allocations ( Budget)
Budgetary Process
Estimates (Q3 & Q4)
National Budget Allocations ( Budget)
Minister for Health to DoH&C (The Health Vote)
HSE – Present Service Plan (October/November)
Service Plan Approval (November 2015)
Service Plan Publication (November 2015)
Allocation of Service Budgets (January 2016)

43. National Service Plan & Budget 2013
THE FUNDING POSITION
The 2013 gross current voted Estimate for the HSE is €13,404.1m (Table 1). This reflects a net increase of €71.5m(0.54%).(2012-Vote- €13,317m)
This net increase includes new spending and unavoidable pressures of €748m and savings of €721m (Table2).
The reduction required of the HSE in 2013 is €721m which means that the total reduction to the HSE budgets since2008 is €3.3bn (22%).
Staff levels have reduced by over 11,268 WTEs since the peak employment levels in September2007.
To date, cost reductions have been achieved by reducing pay and staff numbers as well as savings in the cost of community drug schemes and procurement.
This year will require further savings in each of these headings.
The financial challenges that the HSE is dealing with in the context of this plan are:
⌐ Hospitals are facing an incoming projected deficit of €271m along with further cost pressures that may arise in 2013.
⌐ Primary Care Schemes have a cost reduction challenge of €383m.
⌐ Community Services do not have a projected incoming deficit but like the hospitals will have to deal with any additional pressures which may arise during the year.

44. Health Services Budget 2014
The gross current voted estimate for the Health Service (including Children and Families) in 2014 is €13.120bn.
Between 2008 and 2013 the Health Service budget has reduced by €3.3bn (22%).
Additional savings totalling €619m
are required in 2014, which will bring the total level of reductions to almost €4bn over 6 years.
See 2014 Service Plan

45. Health Service Budget 2015
The Health Service is to get an extra €635m in 2015.
Prescription charges, emergency department fees and hospital bed charges are to be frozen at current rates.
The extra funding breakdown is €305m in Exchequer funding plus once-off funding of €330m.
The once-off revenue relates to settlement of hospital bills by health insurers and receipts from UK authorities for treatment in Ireland of UK citizens.
Savings of €130m are to be secured in the health budget this year through procurement changes, including less use of agency staff and drug prescribing.

47. Minister for Health
Dr Leo Varadkar
Director General HSE
Mr Tony O Brien

48. Jim Breslin, Secretary General, Dept of Health (2014)

49. Where do you fit in ???

50. New Chief Finance Officer – Mr Stephen Mulvany (2014)
Finance in the HSE
The Office of Finance is responsible for managing the overall accounting, treasury, financial reporting and financial services operations of the Executive. This includes managing internal controls to mitigate risk; creating and presenting financial status and financial condition reports to internal and external parties, ensuring that the official accounting records of the Executives are up-to-date and accurate; safeguarding the assets of the Executives to minimize risk of financial loss; and developing and maintaining robust systems and reporting tools to provide high-quality financial information that supports the Executive’s strategic management initiatives. ( 2014
New Chief Finance Officer – Mr Stephen Mulvany (2014)
See ‘Future Health’ – Financial Reform Page 24

51. Stephen Mulvaney, CFO

52. Internal Audit
"Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."

54. Finance Reform Programme 2013 -2015
Future Health: a Strategic Framework for Reform of the Health Service 2012 – 2015
(Department of Health. November 2012)
Addressing the weaknesses in Financial Management and Cost Containment within the Irish Health Service Executive.
(A Report and Action Plan – PA Consulting Group. September 2012)
Defining Financial Management- A Finance operating Model for Health in Ireland
(Final Report – PA Consulting 30 August 2013)

55. Future Health: A Strategic Framework for Reform of the Health Service 2012-2015
Health Ministers Publish Future Health: A Strategic Framework for Reform of the Health Service
The Minister for Health Dr. James Reilly TD and Ministers of State Kathleen Lynch TD & Alex White TD have today (15 November 2012) published Future Health: A Strategic Framework for Reform of the Health Service
It sets out the main healthcare reforms that will be introduced in the coming years, as key building blocks for the introduction of Universal Health Insurance in Future Health is about prioritising the needs of the patient even as difficult decisions on health financing are made.
Future Health contains a set of specific actions, with timelines, that will prepare the way for Universal Health Insurance.

56. Finance Reform Programme as at February 2014
Phase 1 of the programme is now complete which included the development of new Finance Operating Model (FOM)
Phase 2 began in December A key element is to secure the necessary approval to procure a new financial management system for the health service to underpin the new FOM.

57. ‘Future Health’ – Finance Reforms From Jan 2015
‘The Vote’ returns to the Dept of Health and Children
Programme Based Budgeting
Review of Financial Management Systems
Transforming Funding Model to ‘Money Follows the Patient’ (MFTP)
Move towards system of Universal Health Insurance

58. Activity Based Funding (MFTP) and HPO
New model of funding
Designed to replace existing block grant system
Pays hospitals for the quantity and quality of services they actually provide
ABF being introduced on phased basis.
Phase 1 – Inpatient and daycase activity
Establishment of Healthcare Pricing Office

59. Current operating model for Finance

60. The new operating model for Finance

61. The planning and operational processes that could follow from the MFTP

62. Introduction to Principles of Accounting
Financial Accounting
Management Accounting

63. Accounting
“Accounting is the means by which information about an enterprise is communicated and, thus, is sometimes called the language of business.”
Williams, J., S. Haka, M. Bettner and J. Carcello (2009), Financial Accounting, New York, NY: McGraw-Hill. p 151

64. Accounting-Language of Business
Rules – Structure , Meaning, Interpretation
Fluency, Grammar, Punctuation,
Syntax etc

65. Introduction to Principles of Accounting
Accounting – The provision of Financial
Information
2 Main Branches
Financial Accounting
Cost & Management Accounting

66. Financial V Management Accounting
Financial Accounts
Financial accounts describe the performance of a business entity over a specific period and the state of affairs at the end of that period.  The specific period is often referred to as the "Trading Period" and is usually one year long.  The period-end date as the "Balance Sheet Date“
Public Sector bodies and Companies that are incorporated under the Companies Act 1989 are required by law to prepare and publish financial accounts.  The level of detail required in these accounts reflects the size of the business with smaller companies being required to prepare only brief accounts.
The format of published financial accounts is determined by several different regulatory elements:
·   Company Law
·   Accounting Standards
·   Stock Exchange
Management Accounts
Management accounts are used to help management record, plan and control the activities of a business and to assist in the decision-making process. 
They can be prepared for any period ( daily, weekly, monthly, quarterly) activity, income , expenditure stock
There is no legal requirement to prepare management accounts, although few (if any) well-run businesses can survive without them.
Management accounts can focus on specific areas of a business' activities.  For example, they can provide insights into performance of:
·   Products/Services
·   Separate service locations
·   Departments / divisions

67. Financial Accounting V Management Accounting
Users – External
Focus – Historical
Verifiability
Precision
Whole Organisation
Mandatory
Users – Internal Managers
Focus – Future
Relevance
Timeliness
Segments/Services
As required

68. Financial V Management Accounting
Most financial accounting information is of a monetary nature
By definition, financial accounts present a historic perspective on the financial performance of the business entity
Management
Management accounts usually include a wide variety of non-financial information.  For example, management accounts often include analysis of:
- Employees (number, costs, productivity etc.)
- Sales volumes (units sold etc.)
- Customer transactions (e.g. number of calls received into a call centre)
Hospital – Case mix
Management accounts largely focus on analysing historical performance.  However, they also usually include some forward-looking elements - e.g. a sales budget; cash-flow forecast.

69. Financial Accounting – Regulated By: Financial Accounting – Involves:
Various business entities formats and reporting requirements (context driven)
Accounting Concepts and Conventions (universal)
Standard Statements of Accounting Practice
Financial Reporting Standards
Internal Financial Regulations
Financial Accounting – Involves:
Tax matters- VAT, PAYE, Levies etc
Payroll - calculation deductions
Banking – Lodgements, Payments, Reconciliation, Facilities.
Bookkeeping - Transactions, Prime documents & records, Journals, Accounts, Ledgers, Trial Balance, Final Accounts, Income and Expenditure, Trading, Profit & Loss, Balance Sheets. Cash Flow Statements, Annual Financial Statements
Controls –Debtors, Creditors, Bank, Cash, Stock
Cash V Accrual model of recording and presentation

70. Financial Reporting Standards (FRS) and Statements of Standard Accounting Practice (SSAP)
Financial Reporting Standards (FRSs) issued by the Accounting Standards Board Accounting standards developed by the ASB are contained in 'Financial Reporting Standards' (FRS’s). Soon after it started its activities, the ASB adopted the standards issued by the ASC, so that they also fall within the legal definition of accounting standards. These are designated 'Statements of Standard Accounting Practice' (SSAPs). Whilst some of the SSAPs have been superseded by FRS’s, some remain in force. 
UK/Irish GAAP: UK and Irish Generally Accepted Accounting Practice. These accounting standards are developed by the ASB and are currently used by the vast majority of business organisations

71. Accounting Concepts and Conventions
In drawing up accounting statements, whether they are external "financial accounts" or internally-focused "management accounts", a clear objective has to be that the accounts fairly reflect the true "substance" of the business and the results of its operation.
The theory of accounting has, therefore, developed the underlying concept of a "true and fair view". The true and fair view is applied in ensuring and assessing whether accounts do indeed portray accurately the business' activities.
To support the application of the "true and fair view", accounting has adopted certain concepts and conventions which help to ensure that accounting information is presented accurately and consistently.
Accounting Conventions
Historical cost convention. This requires transactions to be recorded at the price ruling at the time, and for assets to be valued at their original cost.
Under the "historical cost convention", therefore, no account is taken of changing prices in the economy. (Argument for ‘Fair Value approach’)

72. Accounting Conventions
Monetary measurement Accountants do not account for items unless they can be quantified in monetary terms. Items that are not accounted for (unless someone is prepared to pay something for them) include things like workforce skill, morale, market leadership, brand recognition, quality of management etc.
Separate Entity This convention seeks to ensure that private transactions and matters relating to the owners of a business are segregated from transactions that relate to the business.
Realisation With this convention, accounts recognise transactions (and any profits arising from them) at the point of sale or transfer of legal ownership - rather than just when cash actually changes hands. For example, a company that makes a sale to a customer can recognise that sale when the transaction is legal - at the point of contract. The actual payment due from the customer may not arise until several weeks (or months) later - if the customer has been granted some credit terms.
Materiality An important convention. As we can see from the application of accounting standards and accounting policies, the preparation of accounts involves a high degree of judgement. Where decisions are required about the appropriateness of a particular accounting judgement, the "materiality" convention suggests that this should only be an issue if the judgement is "significant" or "material" to a user of the accounts. The concept of "materiality" is an important issue for auditors of financial accounts.

73. Accounting Concepts
Four important accounting concepts underpin the preparation of any set of accounts:
Going Concern Accountants assume, unless there is evidence to the contrary, that a company is not going broke. This has important implications for the valuation of assets and liabilities.
Consistency Transactions and valuation methods are treated the same way from year to year, or period to period. Users of accounts can, therefore, make more meaningful comparisons of financial performance from year to year. Where accounting policies are changed, companies are required to disclose this fact and explain the impact of any change.
Prudence Profits are not recognised until a sale has been completed. In addition, a cautious view is taken for future problems and costs of the business (the are "provided for" in the accounts" as soon as there is a reasonable chance that such costs will be incurred in the future.
Matching (or "Accruals“ ) Income should be properly "matched" with the expenses of a given accounting period.

74. Accounting Information
Key Characteristics of Accounting Information
There is general agreement that, before it can be regarded as useful in satisfying the needs of various user groups, accounting information should satisfy the following criteria:
What it means for the preparation of accounting information
Understandability This implies the expression, with clarity, of accounting information in such a way that it will be understandable to users - who are generally assumed to have a reasonable knowledge of business and economic activities
Relevance This implies that, to be useful, accounting information must assist a user to form, confirm or maybe revise a view - usually in the context of making a decision (e.g. should I invest, should I lend money to this business? Should I work for this business?)
Consistency This implies consistent treatment of similar items and application of accounting policies
Comparability This implies the ability for users to be able to compare similar companies in the same industry group and to make comparisons of performance over time. Much of the work that goes into setting accounting standards is based around the need for comparability.
Reliability This implies that the accounting information that is presented is truthful, accurate, complete (nothing significant missed out) and capable of being verified (e.g. by a potential investor).
Objectivity This implies that accounting information is prepared and reported in a "neutral" way. In other words, it is not biased towards a particular user group or vested interest

75. Accounting Information Systems
An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.
HSE Currently operates several different Health Boards Legacy Systems – Moving to singular system.

76. Cash Versus Accrual Accounting
Under the cash basis of accounting Revenues are reported on the income statement in the period in which the cash is received from customers. 2. Expenses are reported on the income statement when the cash is paid out Under the accrual basis of accounting Revenues are reported on the income statement when they are earned---which often occurs before the cash is received from the customers. 2. Expenses are reported on the income statement in the period when they occur or when they expire---which is often in a period different from when the payment is made.

77. Management Accounting
Takes information from a variety of sources:
Internal Environment - Accounting Information System and External Environment Sources.
Cost Accountant- Costs of raw materials , labour and overheads
Cost Behaviour, Cost Classification, Cost
Allocation & Appropriation
Management Accountant prepares reports for decision makers
Managers use Management Accounting information (reports)
to inform on their service’s current performance,
to make decisions and take appropriate action
to develop appropriate plans for the future

78. Managers – Not Accountants
Accountants – Professionals
Use as Internal Consultants
Know their role and level in the organisation
Learn to talk their language
Use terminology correctly
Seek advice & clarification
Manager – Decision Maker

79. Managers – Busy People

80. Managerial Accounting – Implications for HS Managers
Daily
Governance (transparency, participation, responsiveness, oversight, accountability and predictability)
Compliance – Procurement, Payments, Calculations, Wages, Petty cash etc.- Financial Regulations
Financial Planning & Control
Cost Behaviour
Budgetary Planning
Budgetary Control
Behavioural Aspects of Budgeting
Cost – Volume – Breakeven - Profit – Analysis – Business Case.
Price Determination
Analysis of Financial Reports and Statements
Measuring Financial Performance/Service Performance
Apply Ethical Standards to………..Decision Making
(Lesson 2 to 5)
Occasional (In consultation with Finance Dept Experts)
Sources of Finance
Investment Appraisal – Short , Medium & Long
Portfolio analysis
Disposals, Acquisitions & Mergers
Treasury Management
Etc

81. Virtual Tour www.hseland.ie Logging On Leadership Development Hub
Finance Module Resources
E Learning Programmes

82. Writing Reflections

83. To do for Next Tuesday October 27th
Register on Register in Leadership Development Hub. Start Blog
1. Take e-learning programme – Introduction to Finance Management
Module 1 Principles of Financial Management (60 mins)
2 Reporting (30 mins)
2. Review Powerpoint Presentation from Oct 20th and explore supporting learning materials for Lesson 1
3. Reflections in blog: Programme, learning

84. Required and Recommended Readings Lesson 1
Future Health – A Strategic Framework for Reform of the Health Service 2012 – 2015 (P 23-29)
Addressing the weaknesses in Financial Management and Cost Containment within the Irish Health Service Executive.
(A Report and Action Plan – PA Consulting Group. September 2012)
Defining Financial Management- A Finance operating Model for Health in Ireland
(Final Report – PA Consulting 30 August 2013)
Money Follows the Patient – Policy Paper on Hospital Financing
Money Follows the Patient – FAQ’s
Activity Based Funding – Minister’s Speech and Implementation Plan
Public Financial Procedures Guide
HSE National Service Plans 2014 and 2015
Recommended
DRG’s and ABF for Coders October 2012
Clinical Coding Services Pty Ltd
Memo’s: S. Mulvaney re Structures
Revised Estimates Public Expenditure Final
Comprehensive Expenditure Report 2012 to 2014 (Pg 28 to 31)

85. Feedback & Questions Live with tutor and Chat box to 11.30
Blogs and Discussion Forum

86. See you next time in Lesson 2