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Financial Expenditures

In: Social Issues

Submitted By geo4395
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The four elements of financial management are planning, controlling, organizing and directing, then decision making. Planning allows the financial manager to identify the steps needed to become successful towards accomplishing an organization’s goals. The manager must identify objectives and steps to accomplish the goals. The financial manager then controls each department of the organization. One way to oversee a departments’ progress is by comparing past and current departmental reports. Organizing and directing go hand in hand, but before directing the financial manager must organize and research an organization’s resources. The purpose of evaluating resources, determines how effectively objectives are accomplished.
Directing ensures the effective use of resources and providing supervision. Decision making allows the manager to make intelligent choices about accomplishing the goals of an organization. The generally accepted accounting principles or G.A.A.P. are accepted ways of reporting and recording organizations financial information .They are the rules used to arrange and regulate financial account reporting. G.A.A.P. includes recognition of revenue, balance sheets, and outstanding share amounts. Organizations are required to follow the principles when reporting their financial statements. Professional accountants must abide by ethical standards that standarize the way they conduct business.The Financial Accounting Standards Board, professional accounting and finance organizations determine the ethical standards. Ethical decision making is important when financial executives address a problem or uncertainty relating to competing standards, such as personal, organizational, professional and community values. Health care organizations face ethical problems including patient access and affordability. Pressures to reduce costs, combining health care facilities, and other financial restraints contribute to the growing concern in healthcare organizations. The state of Massachusetts requires the hospitals to file an Annual Financial Report within 100 days of the end of the fiscal year. The report contains the hospital’s 12 month financial accounting. All audit adjustments must be reported, regardless of self initiation or independent audits. Every hospital also includes information on changes in services, and utilization figures for the fourth quarter of the fiscal year, including monthly figures on beds, hospital stays and patient discharges. The utilization figures only reflect activity throughout the fourth quarter of the fiscal year. After submission, the Annual Financial Reports will be under review for a period of 20 days. After the review, period the reports are electronically accessible to the public. During the review, the state shares information with the Attorney General's Office, the Department of Public Health, and other related organizations and agencies, provided that any such entity with which the information is shared shall consent to treat information under the same privacy basis as does the state pursuant to regulations. The Sun Healthcare Group, Inc adopted the General Financial Ethical Standard. The purpose of the Financial Code of Ethics deters improper financial reporting and promotes integrity and ethical conduct. Sun, Inc. discloses complete, fair, efficient, and timely documents to the Security of Exchange or “SEC”. The organization must comply with governmental laws and regulations. The code applies to: the chief executive officer, chief financial officer, chief accounting officer, controller, or any other person performing financial duties. Any person violating the code including the chief executive officer faces disciplinary action including termination. The state of Massachusetts and Sun Healthcare Group, Inc are significant examples when describing the generally accepted accounting principles and general financial ethical standards. The state requires all hospitals to report their Annual Financial Reports. The purpose of reporting accurate information allows hospitals to receive governmental aid. A hospital’s revenue also determines the type of technological advancements that are presented to them. The general financial ethical standards are important when financial officers and personnel prepare reports regarding their organization’s financial standing. Falsifying information is unethical and may result in a healthcare facility loosing valuable shareholders and investors due to unethical conduct, which is detrimental to any organization.

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