...Reporting Practices and Ethical Standards in Health Care Finance Ashley Riggs HCS 405 February 6, 2012 Jay Christensen Reporting Practices and Ethical Standards in Health Care Finance Healthcare managers engage in many important roles to create and sustain successful organizations. Managers must understand the crucial elements of financial management and the generally accepted accounting principles. They must also understand, adhere to, and enforce the general financial ethical standards. Four Elements of Financial Management Planning The first step in financial management is planning. It is the responsibility of the financial manager to first identify the goals of the company. Then it is the financial manager’s responsibility to decide on the appropriate steps that must be taken to accomplish the goals of the company. Controlling The second step in financial management is controlling. During this phase of financial management, it is the responsibility of the financial manager to ensure that each division of the organization is following the plans was decided. Managers should study current reports and compare them with earlier reports. This will help to decide what division of the organization needs the most attention. Organizing and directing The third step in financial management is organizing and directing. During organization, it is the responsibility of the financial manager to decide how to use the resources of the organization most effectively. The resources...
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...Reporting Practices and ethical Standards in Health Care Finances University of Phoenix HCS 405 Health Care Financial Accounting July 11, 2012 Reporting Practices and Ethics The financial management of health care organizations have the obligation to integrate financial reporting practices with ethical standards that directly reflects and affects health care patients, providers, policymakers, and the society. This paper will review articles that reflect ethical standard practices related to health care financial management and will cover the four financial management elements crucial to the health care organization. These four elements of financial management are the generally accepted accounting principles (GAAP), which are the planning, controlling, organizing and directing, and the decision-making (Baker & Baker, 2011). Planning The financial manager determines the short term and long-term objectives of the organization to create plans to meet organization’s objectives. When planning, the goal of the financial manager is to develop and outline strategies, to seek the input of everyone involved in the process and to ensure everyone supports, and understands their role in the execution the plan. Controlling The purposes the financial officers of controlling are to implement the plans, and are executed by organizational standards to avoid overspending the organization’s budget. Additionally, the financial manager oversee that...
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...Ethical Financial Management Dana Doody HCS 405 2 Sep 2014 Working as a financial manager comes with a lot of responsibility; and a lot of standards of practice. Just like physicians and nurses, financial managers of health care organization have a set of rules and ethical guidelines they must follow in their practices. In this paper, I will what the four elements of financial management are. There will also be a summary of generally accepted accounting principles (GAAP) and financial ethical standards. Business’s mist follow these standards in order to comply with federal agencies such as the Financial Accounting Standard Board. I will also provide examples from articles that explain how corporations comply with these standards and deal with fraud or abuse. The four elements of financial management. The key to good financial management is to be well organized and have good finical discipline. Health care is a business and having a good concept of financial management will help those businesses run smoothly. “The healthcare industry is a service industry, its essential business is the delivery of healthcare services.”(Refaat, 2014) Having a good understanding of the elements of financial management can help to explain the financial management of that service industry. The first element is planning, planning helps identify the steps that must be taken in order to accomplish the organizations objectives. The second is controlling, this is in place to help ensure...
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...Reporting Practices and Ethics Paper University of Phoenix HCS/405 Sandra DiPietro Reporting Practices and Ethics Introduction Addressing financial reporting practices and ethical standards in health care finance can be done in various different ways. Either way this component of health care is addressed, it is important for a health care finance element, within an organization, to ensure that this is addressed correctly. A good way to explain and address the ethical standards in health care finance is by explaining the four elements of finance. These four elements include Planning, Controlling, Organizing, and Decision Making. With these four elements, addressing financial reporting practices and ethical standards in health care organizations, can be addressed, and will reflect how organizations accomplish this. Accounting Principles In health care organizations, financial reporting involves financial statements. There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity (U.S. Exchange Commission, 2011). The third part of a cash flow statement shows the cash flow from all financing activities. It is very important for an organization to report their finances, since financial reporting will provide investors with information about the organization’s management. Financial reporting also provides information for...
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...Reporting Practices and Ethics Mia Moseley HCS/405 David Catoe August 25, 2014 According to Hicks (n.d.), “An accounting department plays an enormous role within the medical office. As the backbone of the organization, the accounting department allows the organization to operate at its fullest potential. Without an accounting department, it would be impossible for any type of organization to operate in a cost effective manner” (The Role of Accounting in the Medical Office). Reporting Practices and Ethics Financial reporting and ethical standards in health care allow organizations to operate at their fullest potential. The standards are determined and set by the Financial Accounting Standards Board. In this paper we will define the elements of financial management, the generally accepted accounting principles and ethical standards. We will review a couple of articles and discuss their reporting practices and ethical standards. The Four Elements of Financial Management “Health care service delivery is a business. The concept of financial management assists in balancing the inflows and outflows that are a part of the business” (Mohamed, n.d.). There are four elements of financial management. They are planning, controlling, organizing, and decision making. These four elements all rely on the other and are necessary for successful business practice. Planning Planning is where the organization’s objectives, needs, and goals are identified and steps...
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...find information from articles that address financial reporting practices and ethical standards in health care finance. The paper will also address financial management of health care organizations in detail. In this paper there are several summaries that address the four elements of financial management as well as summaries that address acceptable accounting principles and general financial ethical standards. The paper also gives detailed examples from the articles that reflect ethical standards of conduct and financial reporting. Financial reporting practices In many cases management are not trained to detect fraud and will not feel the need to question further about the possibilities. They will sign off on the findings without real concerns. Some of the major findings are sometime found later on, and by that time the situation may be very serious. The hire-up may penalize management for not recognizing the problem earlier. For example from the article the managers pointed the finger on the auditors and did not take on any of the responsibility for the overlook. Baker (2007), “When questioned about why it took so long for these problems to come to light, management's response was 'well the external auditors signed the accounts and internal auditing said everything was all right,'" Durant says (para. 5). Ethical standards in health care finance Managers and staff member responsible for financial reporting are required to do their jobs and do it with the understanding...
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...Reporting Practices and Ethics Paper Holly Polk HCS/405 Sandra DiPietro April 9,2012 Reporting Practices and Ethics Financial management helps health care organization's to assist in balancing the inflows and outflows that are part of the business. There are about four recognized elements of financial management which are planning, controlling, organizing and directing, and decision making. Planning help the financial manager identify the steps that must be taken to complete objectives for their organization. Controlling helps the financial manager make sure that each area of their organization is following the plans that have been set before them. Organizing helps financial manager to decide how best to use resources and also how to effectively carry out plans that have been established. Lastly decision making helps financial manager to make choices among available option's (Baker, Baker,2011). Generally Accepted Accounting Principles or ( GAAP) is a set of procedures, standards, and principles that a organization can all agree on in order to report their financial data. The GAAP has several components but we will only name the most important like debt, inventory cost, long-term and short- term investment, taxation, profits, stockholder's equity, revenues and sales, and goodwill and other intangibles. The GAAP is a very great way for organization to report the data and it is also the most consistent way to display data. The GAAP make it easier for companies to...
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...Reporting Practices and Ethics Paper Ruby Anderson HCS/405 12/15/14 Jennifer Noren Reporting Practices and Ethics Paper Financial reporting practices and ethical Standards in health care Generally accepted accounting principles are shaped by economic and political forces. It follows increased world-wide integration of both markets and politics. Since most market and political forces are driven by reductions in communication and information processing costs makes them remain local for foreseeable future thus making it unclear on how much coverage should actually occur. There is some evidence on which build an assessment of the advantages and disadvantages of uniform accounting rules within a country, let alone internationally. “A deeper concern is that there inevitably will be substantial differences among countries in implementation of IFRS, which now risk being concealed by a veneer of uniformity. The notion that uniform standards alone will produce uniform financial reporting seems naive” (Taylor and Francis online, 2006). Fraud and abuse in health care is unfortunate but also common. Although there is not a precise measure of fraud or abuse it does still exist and can cost tax payers billions of dollars while putting welfare and beneficiaries at risk. According to (Department of Health and Human Services, 2014) Medicare fraud and abuse increases the strain on the Medicare trust fund, where the impact of those losses and risks magnify as Medicare continues to grow...
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...Abstract Within the accounting profession there are many complex ethical issues that must be dealt with quite often. It is important that the people working within the industry provide high quality financial statements and always pay close attention to ethical concerns that may arise. Since ethics is such a major concern in the accounting industry, a rules based system is in place for enforcing ethical concerns. There are many regulating bodies that exist that enforce many highly detailed regulations that people within the industry must follow at all times. Throughout history there have been several major accounting scandals that have been followed by new regulation to ensure that these problems do not come up again. CLERP 9 and the Sarbanes-Oxley Act are just a couple of acts that have caused significant changes to the accounting world in recent times. This paper will look at some of the different issues that accountants face as well as some of the regulations that seek to end unethical behavior. Ethical Standards in Accounting Introduction The accounting industry is an always changing and constantly growing industry. Accounting plays a vital role in society and business and up until recently accounting was considered to have some of the highest standards for ethical and moral conduct in business. In recent years there have been many high profile business failures caused by the unethical behavior or accountants and accounting firms. Since some major companies, like Enron...
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...Reporting Practices and Ethics Kathleen Hyatt HCS/405 March 23, 2015 Sherida Douglass Reporting Practices and Ethics In medicinal services association. Monetary practices and morals were thought to be the essential for social insurance authoritative achievement. The monetary and moral practices were supported by social insurance associations for supporting their statement of purpose and it was to guarantee the consistence and precision of human services budgetary articulations. The health awareness monetary practices and morals had the four sorts of budgetary administration for making understanding to medicinal services administrator. It would likewise give the noteworthiness of tests of moral models and budgetary reporting practices Four elements of Financial Management The four element of financial management in health care organization were to be planning, controlling, organizing and directing as well as decision making. Planning was to be component of money related administration which was character the venture for the achievement of hierarchical targets. The chief of medicinal services association must be recognized the objectives before accomplishing the social insurance objectives. The controlling was to be the second component of budgetary administration which was to guarantee the arrangement for accomplishing the health awareness objectives However, these components could distinguish that whether the picked arrangement was best or not...
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...Reporting and Ethical Practices HCS 405 June 24, 2014 Reporting and Ethical Practices Financial and accounting professionals must follow the ethical standards that regulate the type of business they conduct, who they conduct business with, and how they use their skills to conduct their business. These ethical standards are defined by professional finance organizations and the Financial Accounting Standards Board. This article will discuss reporting and ethical practices for any financial and accounting organization. It will include a summary of generally acceptable accounting principles and general financial ethical standards, as well as, summarize the four elements of financial management. This article will conclude by discussing researched articles on financial reporting practices, ethical standards, and financial management within the health care organization. Generally Accepted Accounting Principles (GAAP) and Financial Ethical Standards According to "Business News Daily" (2014), “Generally Accepted Accounting Principles (GAAP) is a combination of guidelines, comprehensive rules, and generally accepted standard practices utilized throughout the accounting industry to prepare and standardize financial statements, such as balance sheets, income statements, and cash flow statements” (Generally Accepted Accounting Principles (GAAP): Standards & Rules for Accountants). In 1999, the American Institute of Certified Public Accountants (AICPA) designated the...
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...Financial Reporting Practices and Ethical Standards Paper Ebony Washington HCS - 405 05/02/2011 Donna Pearson Financial Reporting Practices and Ethical Standards Paper Financial reporting is a process that been under a great deal of problems. It is one of the most important functions that an organization has to pay close attention to; it requires a higher code of ethical behavior. Ethical standards are a set principal that promotes values such as trust, good behavior fairness, and kindness in an organization. Financial management involves ethical standards as well reporting practices in health care. Organizations have to report financial data fairly and factually. Not reporting financial planning can cost the organization money that will affect the investor’s patients, and employees. In my article I will discuss the four elements of financial management, explain the generally acceptable accounting principals and general financial ethical standards. I will also give examples form the articles read that reflects ethical standards of conduct and financial reporting practices. The four elements of financial management are: controlling, planning, organizing and directing, and decision making. The four elements are based on the purpose of each task. Planning is the systematic process of making ethical decisions about the goals the organization will pursue. The manger has to ensure that enough funding is available at the right time to meet the needs of the business...
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...Financial Reporting and Ethical Standards Debra Castagnetta HCS/405 November 7, 2011 Todd Brown Financial Reporting Practices and Ethical Standard In health care finance keeping financial documents have become more detailed and the need for accuracy has increased and many guidelines have been established to ensure there are competencies, and ethical standards are upheld in financial management in health care organizations (Paul, 2008). The Four Elements of Financial Management Health care organizations and other organizations require an array of management actions to operate effectively (Baker & Baker, 2010). To accomplish these actions the four elements of financial management must take place. The financial manager must identifies the objectives and steps through planning, the financial manager must ensure that the organization follow the plan by using the controlling element, the financial manager must organize and direct by deciding how to use the resources of the organization, and provide daily supervision (Baker & Baker, 2010). In addition, the financial manager must make informed choice through the element of decision- making (Baker & Baker, 2010). The General Accepted Accounting Practices In order to have guidelines in the principles of accounting, it is a mandatory requirement that health care organizations and other organizations use the General Accepted Accounting Principles, also known as the GAAP (Paul, 2008). The General Accepted...
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...Reporting Practices and Ethics Paper Angela Blanks HCS/405 February 12, 2014 Mary Scalf Reporting Practices and Ethics Paper Revenue is important to keep track of to pay expenses and invest back into the business to maintain state of the art technology. Reporting revenue correctly and honestly is management and owners responsibility. Abuse of the system and fraud committed by dishonest practices the government has set up standards of reporting income and expenses. The function of the generally accepted accounting principle is that all companies report revenue using the same methods. Using the four elements of financial management, planning, controlling, organizing, and decision making, businesses can be successful. Using ethical standards of honesty, an organization can expect to remain in business. Generally accepted accounting principles (GAAP) is the standard that determines how accountants conduct reports (Kennan, 2014). The function of the GAAP is to ensure that companies have the same methods of reporting financial information. The GAAP applies to all financial statements issued to the public for investors to understand how the company is reporting income and expenses (Kennan, 2014). The financial accounting standard boards (FASB) created the GAAP that define the ethical standard practices of companies (Reeves, 2014). Maintaining high ethical standards accountants must maintain confidentiality when reporting financial reports. Accountants must enter accurate...
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...Reporting Practices and Ethics Your Name University of Phoenix Health Care Financial Accounting HCS/405 Ashonta Tharps May 26, 2012 Reporting Practices and Ethics Revenue’s and expenses of any organization require the four main elements of financial management. These elements are planning, controlling, organizing and directing, as well as decision making. The reporting practices of the financial department has improved over the years with new and improved principles and general financial ethical standards being put into place. This paper will give the reader a better understanding of the four elements of financial management, acceptable accounting principles, and financial ethical standards. Any organization will have a Chief Financial Officer. These management personnel will follow these four basic elements to manage the financial process of the organization they work for. The first step is to plan the objectives of the organization and each step needed to complete their goals. The planning process is important to how the financial manager will keep track of money spent on projects and how they are accomplished. The controlling process is used to manage each step in the planning process to make sure the projects are on target and budget for completion. Managers use past reports to help them figure out what areas of the organization are in need of assistance and what the issues are. They are also used to determine what kind of assistance is needed or if...
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