Show me the money! New CQC financial statement
“Show me the money!” say the CQC
Just when you thought you had a handle on all the new changes the CQC keep sending our way in social care, they send out another one to make sure we’re still paying attention.
A couple of weeks ago, it was announced in the Provider Newsletter that as of the 12th February, providers will be required to provide a statement of financial viability, put together by a financial specialist.
Did you miss that?
Should you be worried? Not if you have taken good care of your business planning with regards to your financials. It’s a sad reflection on the current state of the sector, that greater focus is being placed on the financial robustness of companies. With a good business plan in operation, you will have considered the capital in your business and looked into the practicalities of resourcing the service you provide into the future – and if this is indeed the case, you have done your utmost to protect yourself. In difficult economic times, when social care businesses are operating under great pressure, it’s really important that you are able to demonstrate viability to the CQC.
The CQC say that a statement of financial viability can be drawn up by a specialist – this may be an accountant, financial services firm or bank. Regulation 13 of CQC regulations is at the heart of this new focus – it isn’t a new rule, having been in place since 2009. However, there’s never really been any formalised enforcement of this regulation, something the CQC are now changing.
Whether it’s due to pressure from Local Authorities who risk getting burned when companies fail, or some other reasoning that’s triggering this move, it is essential if you are a care provider, to have this financial statement in place.
Within the regular registration process, it is normal for Inspectors to request to see details of a company’s financial position – so this isn’t really that much of a change in approach. However, in the past these enquiries formed part of the set-up process, to ensure compliance with all the necessary regulations. You can’t help feeling that this increased layer of assurance required by the CQC, is indicative of the rocky state a lot of companies find themselves in right now. In any event, if you haven’t already, make sure you have the necessary financial paperwork in place that accurately reflects the status of your company.
Here at Insequa, we specialise in a range of products and services designed to make life easier for social care providers. From tender writing, to policies and compliance software, right through to CQC support and bespoke newsletters, we have your needs covered. Call us now for a friendly chat about how we can help you out – 0115 896 3999.