CW2.

STRETCH TASK
REFLECTION

5BUSS012W Professional Placement Project Part 2

Nuala Osullivan
Semester 2: 2021/2022

Submitted By:
Blake Cypriano Sebastian Miranda
w1724062

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Table of Contents
Section 1 Introduction .......................................................................................................................... 2
Section 1.1 Introduction ................................................................................................................... 2
Section 1.2 Reflection on Feedback ................................................................................................. 2
Section 2 Selection of the Business Issue ............................................................................................. 3
Section 3 Research Skills ...................................................................................................................... 5
Section 4 Unfamiliar Role or Task ...................................................................................................... 7
Section 5 SMART Goals to bridge the skills gap ............................................................................... 9
References ............................................................................................................................................ 10
Appendices ........................................................................................................................................... 11
Appendix A- Formative Feedback................................................................................................. 11
Appendix B- Business Issue Research ........................................................................................... 11
Appendix C- Research Models ...................................................................................................... 12
Appendix D- Reflection for Unfamiliar Task ............................................................................... 13
Appendix E- Timeline for Unfamiliar Task ................................................................................. 14

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Section 1 Introduction
Section 1.1 Introduction
As a part of the Undergraduate Placement Year, I work as Placement Student assisting the
Management Accounts division on a rotational basis with National Health Service (NHS).
The NHS is England's publicly financed healthcare system that was established in 1948. The
NHS provides services for free which means that individuals do not have to pay for doctor
consultation fees, nursing services, surgical operations, or consumables such as: bandages,
plasters, medications, medical tests, X-Rays, MRI, CT scans and other diagnostic services they
provide as these are primarily funded by general taxation plus a small amount from National
Insurance contributions and is overseen by the Department of Health and Social Care.
As an individual, I believe in the values of the NHS as every decision that we as individuals
decide in the finance department should be committed to prioritising the needs of our patients
by maximising our resources to improve the health and wellbeing of the whole community and
ensuring that nobody is excluded from accessibility of the healthcare resources. I am ecstatic
towards my work placement, knowing that my work would make a positive difference within
the community.
As mentioned above; I work in the Management & Business Accounting division where I assist
with Preparation and dissemination of financial data to enable the organisation to work
efficiently and make effective decisions regarding its future path. Through my experience, I
have prepared monthly finance review reports which requires an individual to identify and
analyse the cost drivers or cost pressures within the division that may impact financial position
of the firm. I have assisted in the preparation of payroll reports and maintained spreadsheets to
assist in ensuring that income and expenditure are recorded accurately. Moreover, I have
assisted in the preparation of general ledger journals such as accruals & prepayments to ensure
that all the accounts are prepared in compliance with the International Accounting Standards
and assisted in the analysis of expenditure, revenue, and activity budgets, to identify variances
and discrepancies, and provides management with back-up information in an appropriate
manner. Furthermore, I have prepared a budget realignment automated report which monitors
and reconciles to main ledger to accurately illustrate the budget movement, which enables the
management and budget holder to identify the cost drivers and where does the budget need to
be allocated to reduce the cost pressure within the NHS.
Section 1.2 Reflection on Feedback
Upon reflection on the feedback from Appendix A, I have understood and taken all the notable
points of my peers into consideration and identified what were my key strengths and
weaknesses during the feedback process for the A4 Plan on the reflection of the stretch task. I
have received positive feedback from my peers; however, they mentioned some essential
feedback that needed to be considered while articulating the report.
In response to the first point, I need to make sure that the SMART goals that I decide need to
be in accordance with the essential skills that needs to be developed based on the stretch task.
Having reviewed the feedback; I have researched the importance of creating SMART goals
which enabled me to gain the essential skills to develop the fundamental knowledge and
foundation of the stretch task. According to Alison Doyle, SMART objectives are well-defined
priorities that can be accomplished in a reasonable amount of time. This form of goal planning
allows you to concentrate your focus and aim your efforts more effectively. She further

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emphasises that SMART goals enables an individual to set an end-objective or goals which
would give them an idea of the appropriate amount of effort and time they need to put in to
reach their desired goal which means that they need to measurable and achievable; when the
end-objective is identified in advance, it is much more efficient to work on it as you will tend
to develop effective time management skills by setting yourself a target date or a timetable or
checklist of tasks that would contribute to achieving your SMART goal. Having an effective
timetable or checklist will enable you to track your progress which help you to stay motivated
and more engaged to achieving your goals.
In response to the second point, I need to make sure that I have a project timeline which will
enable me to plan and identify all priority tasks of the stretch task that needs to be completed
in an appropriate time frame. According to Wayne Greenwood, A project timeline gives an
overview of a project with all the many features such as critical milestones, dependencies,
priority activities, and delivery dates, resulting in an increase in overall productivity. He further
emphasises when developing a project timetable, it will help me to organise work more
efficiently since I must identify all the important components of a project, such as the various
tasks I must complete. Finding out which activities are dependent on other tasks to begin or
conclude is a part of constructing a project timetable. When I have a comprehensive picture of
everything that must be done, I can identify possible problems and minimise obstacles in the
project. This would allow me to better plan for problems and minimise delays.

Section 2 Selection of the Business Issue

create the related resource implications or budget - not only in terms of money, as well as in
terms of staffing, infrastructure, supplies, etc. In the NHS, as part of the yearly planning cycle,
forecasts are commonly generated in reference to the conclusion of the current fiscal year and
the medium to long term (two to five years).
Without financial forecasting and modelling, the business issue that was faced by the NHS was
back in the financial year of 2015/16 which was particularly difficult year for all types of NHS
providers struggled to stay within the resources made accessible to it in terms of both
operational and financial, likely to result in a breach of the Department of Health's expenditure
threshold, resulting the NHS provider sector finishing the year on a deficit of £2.45bn for the
fiscal year ending 31 March 2016. This was £461 million less than the amended plan and £340
million less than the initial plan.

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The challenges faced by the NHS in 2015/16 are well documented and include external factors
such as difficulties involved in hiring permanent health workers and an unprecedented number
of individuals visiting intensive care departments (an increase of 2.9% against 2014/15 levels,
according to NHS Improvement). However, NHS accountants play a critical role in ensuring
that predictions are as clear, precise, and complete as possible, and that the gap between what
is projected and what occurs is favourable and minimal to the organisation.
The main benefit of preparing financial model and forecast is that enables an individual to gain
a better understanding of the business to a greater depth. The financial forecast and
model process requires the firm to consider and identify the factors or cost drivers that
influence the various elements of a business. This also requires NHS to examine the
various changes that may occur internally in the organisation as well as in the external
environment (Juneja, 2020). For instance, according to The King’s Fund Report, while
preparing the financial forecast and model, I need to understand what the cost drivers within
the division Neonatal services which provides services for babies born preterm and full term
that require ongoing specialist care. The report emphasises that the depart of health has reported
that the national total cost of delivering special care in neonatal units was £755 million in
2019/20, representing 17% increase since 2010/11. The demand of Neonatal services is
increasing which has led to the increase in the expenditure but the main reason for the increase
in the expenditure is due to internal factors. However, for the stretch task, I will be conducting
meetings with the budget holders to gain a better understanding of the likely cost pressures that
will impact the cash flow and the financial position of the business in the coming year after
reviewing the historical data from the past 5 years and identifying the trends and which cost
centres are driving the costs within the Neonatal services. (Ruth Robertson, 2017)

growth: financial modelling is critical for businesses trying to expand or start new areas of
growth. It enables them to assess the effectiveness of their marketing and advertising initiatives
and modify funds accordingly. Retail enterprises, on the other hand, may define success by

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increasing sales. To assess sales growth, financial models examine the rise in gross in the most
recent quarter and compare it to the previous quarter.

Section 3 Research Skills

I have implemented the research onion model (Appendix C) which was developed by Saunders
et al. (2012). According to Aleksandras Melnikovas, the model depicts the processes that must
be completed while creating a research plan. Each layer of the onion, when viewed on the
outside, depicts a more thorough level of the research process. The research onion provides an
effective process for developing a research approach. Its use stems from its flexibility to
practically any form of research approach and its capacity to be applied in a range of
circumstances.
In the first layer: Research Philosophy; I believe my research for financial forecasting and
modelling would be inclined towards pragmatism research philosophy where the ontological
assumption suggests that the reality is impacted by external factors and the nature of reality is
complex and can lead to multiple conclusions which is best suited for stretch task as my stretch
task involves projecting the future income and expenditure which may be impacted by external
factors such as amendments in contracts, CCG funding, after effect of Covid-19, etc. The
epistemological assumption of the pragmatism allows to research and enhance on the
knowledge of financial forecasting that would enable me to turn practise in a given context
which would result in finding a solution to the problem and improve the practise and process
which means researching on my stretch task would enable me to practise within the division
so that I can minimise the risk and realign some of the budgets to the right cost centres which
would result in a favourable variance. (D.Crist, 2009)
In the second layer: Research Approach; I have implemented both the inductive and deductive
research approach method because Inductive reasoning, which generates rules and theories
based on observed evidence, is essential for effectively navigating an uncertain future. Due to
the dispersion of the data, inductive models rely on probability-based methodologies including
Budget realignment and scenario planning. Deductive thinking will reinforce the financial
forecast and modelling as it is used to solve issues by presenting precise, backed-up
alternatives. Both the inductive thinking and deductive thinking would result to increase in the
transparency and credibility of the financial forecast and modelling.
In the third layer: Research Strategies; I have utilized experiment strategy which will mean that
I must collect the data from the past 5 years to analyse the cost drivers of the division and based
on the information and decide on where I could realign the budget just to cover up the costs
which will result us to reduce the opportunity cost of the business. Moreover, I must collect the
information from focus group strategy, which means that I would liaise with general managers
of the cost centres to find out if there were any new contracts that would increase our
expenditure or new funding that would increase our income. These two strategies would
complement both deductive and inductive research approaches.
In the fourth layer: Research Choices; I have utilized the mixed methods choices as for financial
accounting research I have to collect both quantitative data; the data of actuals from the past 5
years and qualitative data; to understand the context of the business to a greater depth and this
results in an increase in credibility of the financial forecast and model.

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In the fifth layer: Time Horizons; I have selected the longitudinal time horizon because I would
have to do repeated observations of the stretch task for every month of the new year to compare
my forecasted data to the actual data presented to see whether my forecast was accurate and if
it was not accurate. I would be required to do a report to identify what has driven the forecast
to go incorrect.
In the sixth layer: Techniques and procedures; all of the above layers have enabled me to
conduct my research and which has led me to find all the cost drivers and I have realigned the
unused budgets to that cost centre to reduce the expenditure in the new financial year and I
have also found that COVID-19 outbreak has hampered many of these economic streams and
the trusts anticipates the revenue drop to be spread out over the next few years, with 41% of
trusts expecting the cost to last until 2022/23 and 17% expecting it to last until 2023/24 from
the focus group sessions.

I have implemented “The Covey Time Management Matrix” (Appendix C) as it is relevant and

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Section 4 Unfamiliar Role or Task
My manager has delegated me to assist in the stretch task of preparing a financial forecast and
model for the division which took me by surprise as this task is critically analysed, evaluated,
and validated by the senior finance managers and the business partners of the NHS.

task in Appendix D and E

Financial forecasting is conducted at the end of the financial year. The steps for an effective
financial forecasting are as of the following: the financial forecast must ground with historical
factual data of 5 years which are the actual performance and activity to date. This retrospective
data is then transferred to an excel spreadsheet to analyse the growth rate of Income, Pay and
Non-Pay of each cost centre within the division. The main purpose we calculate the growth
rate to calculate the average growth rate and use it as form of a multiplier to project the financial
position of the business in a year’s time.
The one thing that I would have done differently while approaching this task was to conduct
the meetings and the budget realignments at the commencement of M12 as it was tedious task
to meet the managers of all the cost centres and understand their perspective of cost drivers.
However, I have learnt that financial projection created exclusively by a finance team operating
in isolation from the rest of the organisation lacks credibility as well as organisational context.
At all levels of the organisation, the forecast should be as significant as reporting the monthly
position, and it should be subjected to the same performance measurement rigour. Moreover, I
have also learnt that as a measure of credibility, forecasts should always be reconciled to year-
to-date actual results. As the year unfolds, if you notice substantial variations in either direction,
or a trend of increasing divergence from your projection, you must investigate why and
evaluate whether the forecast needs to be revised.
According to Paritosh Doshi, Following COVID-19, there will most certainly be an increase in
demand for employees with financial modelling expertise. Existing corporate structures and
commercial ethics will change to accommodate a large-scale danger, such as a pandemic. To
achieve this risk adherence, firms will seek highly sensitive and dynamic financial models,
such as COVID-19, that will assist them in retaining resources and minimising losses during
worst-case situations. Financial modelling will be beneficial in enhancing one's profile during
these challenging circumstances. This is because financial forecasting and modelling can assist
businesses in many ways, such as: Acquiring a research-oriented mindset; chartered
accountants are well-trained in accounting and taxation, their approach may become
mechanical. Financial modelling, on the other hand, teaches them to look far beyond financial
statements and helps them build an analytical mentality, which is essential in investment
banking, stock research, and financial analysis. Periodic Review of Performance; The variance
analysis is essential for understanding how a firm is operating. Financial models aid in variance

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analysis by comparing the outcomes of the firm to the budgets. The performance assessment
can be conducted on a regular basis to obtain feedback on business operations. Many advanced
financial models assist organisations in making operational modifications based on variance
analysis to increase overall earnings. Lower financial risks; It aids in the identification of
potential threats. It teaches you how to identify the areas where you spend the most money and
how to cut back on spending in less profitable areas. You can re-allocate these resources to
boost profitability in other areas.

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 Section 5 SMART Goals to bridge the skills gap
SMART Goal Short Term Interim Term Long Term Intended benefits
Financial Financial forecasting requires Financial Forecasting requires Financial Forecasting requires By learning Advanced Skills, it focuses on
Forecasting high level of accounting skills. high level of account skills. I higher level of knowledge and important abilities that are used and
I had dedicated 1 hour per day had dedicated 8 hours for the understanding. I will dedicate appreciated by many enterprises. Taking
for the course of 5 days for courses of 2 weeks to learn 30 hours per month for the Excel training will allow you to build
learning LinkedIn Learning different methods of course of 4 months by equations and supply additional data on
courses: “Excel Data presentation and practising working on a Corporate important corporate operations such as
Analysis: Forecasting” and and developing my Finance Institute certification; project efficiency and financial
“Financial Forecasting and communication skills “Financial Modelling & predictions. You may also develop
Forecasting Financial practically by attending Valuation Analyst” (FMVA) tracking systems for different departments
Statements” which build and meeting with the budget which will enable me to gain and operations by designing spreadsheets
enhance my knowledge of holders and general managers. essential skills and knowledge that offer a clear picture of the information
Financial Forecasting. I have achieved these skills on required to perform different that is input.
Moreover, I will be learning the 15th March 2022. forecasting and modelling
advanced excel. I have techniques not only for the By learning and honing my
achieved this skill on the 28th accounting industry but also communication skills: the capacity to
March 2022. help me gain an insight into effectively communicate has a significant
the banking and financial influence in resolving disputes and
sector. avoiding prospective conflicts from
emerging. The goal is to be cool, make
sure all sides are heard, and come up with
a solution that works for everyone.

By learning the FMVA certification: the

certificate will help you have knowledge
of the best practice using excel, building
models and conducting evaluation
analysis. Having this certification would
enable me to increase my credibility and
employability.

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References
Bajaj, 2021. 5 Reasons why Chartered Accountants should learn Financial Modelling.
[Online]
Available at: https://www.bajajfinserv.in/insights/5-reasons-why-cas-should-learn-financial-
modelling
[Accessed 29 April 2022].
Convey, S. R., 2017. Four Generations of Time Management . In: K. Shelton & B. Asahina,
eds. The Seven Habits of Highly Effective People. New York: Infographics, pp. 118-123.
D.Crist, J., 2009. Pragmatic Action Research With 2 Vulnerable Populations. Family &
Community Health, 32(4), pp. 320-329.
Doyle, A., 2021. What Are SMART Goals?. [Online]
Available at: https://www.thebalancecareers.com/what-are-smart-goals-5197217
[Accessed 26 April 2022].
Goel, A., 2022. Why should Chartered Accountants learn Financial Modeling?. [Online]
Available at: https://www.gccfintax.com/about_us.asp
[Accessed 29 April 2022].
Juneja, P., 2020. Financial Modelling: Advantages and Limitations. [Online]
Available at: https://managementstudyguide.com/financial-modelling-advantages-and-
limitations.htm
[Accessed 27 April 2022].
NHS, 2021. A reckoning: the continuing cost of Covid-19, London: NHS Confederation.
Ruth Robertson, L. W. A. C., 2017. How are they affecting Patient Care. In: K. O’Neill, ed.
Understanding NHS Financial Pressures. London: The King’s Fund, pp. 74-91.
Saunders, M., 2012. Understanding Research Philosophies and Approaches. In: A. Thornhill,
ed. Research Methods for Business Students. Harlow: Pearson Prentice Hall, pp. 126-140.
Vaidya, D., 2021. Financial Modeling Benefits. [Online]
Available at: https://www.wallstreetmojo.com/financial-modeling-benefits/
[Accessed 29 April 2022].
Wendy Thompson, S. B. D. P., 2016. Financial Forecasting In the NHS, London: HFMA.
Appendices
Appendix A- Formative Feedback
Najma Shirwac:
Blake, you have planned out your structure well. You have also questioned your ideas. This
will help you write critically. I would suggest adding more theory and citations of your
research. Also, do not forget to insert a project timeline.
Rustam Mustafali:
There is a structure, and the bullet points show the paragraph analysis. I would add smart
Goals grid to section 5 and give examples about the stretch task.
Jean Carrasco Mallma:
Blake, your A4 plan structure is clear and concise. Nevertheless, I would recommend you add
the models you will use and how they connect to each section. Please do not dot forget
adding your smart goals (use dates and numbers).
Appendix B- Business Issue Research
1. Wendy Thompson, S. B. D. P., 2016. Financial Forecasting In the NHS, London:
HFMA.
2. NHS, 2021. A reckoning: the continuing cost of Covid-19, London: NHS
Confederation.
3. Ruth Robertson, L. W. A. C., 2017. How are they affecting Patient Care. In: K. O’Neill,
ed. Understanding NHS Financial Pressures. London: The King’s Fund, pp. 74-91.
Appendix C- Research Models
Appendix D- Reflection for Unfamiliar Task
•Data collections; This is the first and the most important step of financial forecasting and modelling that is to collect a historical data of 5 years for all the cost centres within the
division which can be quite time consuming as this data needs to be articulated from a different software and as time goes by there will be new transactions taking place, so the data
would need to be updated frequently; to mitigate this problem, I would use the automated excel data tool-pivot table to summarise all transactions that can act as a visual aid for the
Step 1. Data Collections
(Time Frame- 4 days)
use to make better decisions and judgments such as identifying which of the cost centres have been driving the costs or the revenue for financial position of the division.

•The second step is to study retrospective data of how well or bad the cost centre has performed in the past few years and the data also reflects what the account code is driving the
cost; based on the data we assess whether there are anomalies in the data that has caused it to be a cost driver. For instance, there were some account codes that were
overspending against the budget as there is no budget allocated to them which caused it to be the cost driver for the division. This issue can be mitigated and controlled as I conduct
Step 2. Data reflection a budget realignment for the division which allows me to reallocate the budget to the account codes where it is needed to be the most and can reduce the cost pressure for the
Time Frame (4 days) business in the following month.

•The third step is to learn about the business and looking into the unforeseen events that can be potential cost pressure for the business. Quantitative forecasting techniques can
Step 3. Communicating with
Internal Members of Staff
Time Frame (3 days)
produce accurate predictions using past data, unforeseen events can never be attained and are impossible to anticipate. These components can fluctuate intrinsically, putting the
forecast and potentially the business at risk. To mitigate this issue, I would be required to collaborate and communicate well with general managers and few colleagues who have
experience with preparation of financial forecast and modelling which can assist me in improving my forecasting what-if scenarios and achieving my goals for accurate forecasting.
My manager suggested me when obtaining data from various cost centres becomes challenging, individuals are prone to relying on projections of guesswork. Quantitative analysis is
not sufficed as I need to consult with different general managers begin so that I can learn about the external pressures that may be amendments in national tariff rates & contracts
and I can learn about the essential data such as activity run rate for financial modelling. Moreover, I also investigate the NHS confederation papers to look at how covid-19 has
impacted all the NHS trusts and how it can still impact on the finances of the NHS.

•The fourth step is after looking at both the quantitative and the qualitative data, I would proceed in making the necessary budget realignments to mitigate some of the cost pressures
and based on the meetings with I would increase the percentage of the account code for certain cost centre where they have made a reasonable determination that they would have
a higher expenditure than usual compared to the previous years. After making final decision on the multiplier, we proceed to use it to project the Income, Pay and Non-Pay for the
Step 4. Budget Realignment
Time Frame (3 days)
new financial year.

•The fifth step which is the final step is to review against the actuals because forecasting is an iterative process, thus time must be spent 'closing the loop' to assess prediction
quality. This entails frequently comparing actual revenue and spending to what was forecasted and planned, then explaining any variances to the finance and performance committee
Step 5. Preapre and Finish
Financial Forecast and
(or similar) and the governing body or board.
Modelling

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Appendix E- Timeline for Unfamiliar Task

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