...Reporting Practices and Ethics Yolanda Jones HCS/405 March 10, 2014 Darlene Tomlinson Page Break Reporting Practices and Ethics The healthcare industry is a rapidly growing segment of the U.S. economy, amounting to over $2.1 trillion annually. Healthcare focuses on diagnosis, treatment, and prevention among other things. Health care makes up one sixth of the U.S. GDP it is the largest source of the nation's public expenditures. With large amounts of revenue going in and out of hospitals and facilities and health care reform accounting can be challenging. To help ensure fair and accurate financial reporting, there are practices and ethical standards that must be followed when accounting for finances in health care. This paper will provide the four elements of financial management and standard accounting principles and ethics. Financial Reporting Practices The Financial Accounting Standards Board was established in 1073. It is the designated organization in the private sector that establishes standards of financial accounting for nongovernmental entities. The standards established are officially recognized as authoritative by the SEC and the American Institute of Certified Public Accountants. The FASB also has accounting standards for health care entities. "The AICPA Health Care Expert Panel developed technical guidance on the application in consolidated financial statements of a recent accounting standards update for health care entities"...
Words: 1309 - Pages: 6
...Reporting Practices and Ethics Meredith Kruse HCS 405 November 9, 20015 Joseph Shin Reporting Practices and Ethics Healthcare organizations are business entities like any other and the finances require detailed management to ensure that the business operates effectively and efficiently. There are specific elements required to measure the financial success of these companies. When exploring the accepted accounting principles, it is crucial that all involved parties understand the business aspect, including the outside stakeholders. When parties are financially invested, it is also expected that the organizations provide a certain transparency and always act in an ethical manner. There are four elements to effective financial management in any organization. These categories are planning, controlling, organizing/directing, and decision making. By following these steps, plans can be carried out and the organization can ensure financial efficiency. Planning is specifically about identifying objectives and the steps necessary to reach the determined goals. Controlling is a more difficult task as it requires management to enforce the plan and keep employees on track to meet deadlines. Organizing and directing is more of a broken down play-by-play of controlling. This step simply takes controlling to a more manageable level and gives management the opportunity to delegate specific tasks. Decision making takes the three previous steps and allows management to see the whole picture...
Words: 971 - Pages: 4
...Reporting Practices and Ethics Financial management for an organization is the key to being successful. With effective financial management it will strengthen the organization and to exceed. The ethics and reporting practices of the organization is also important because staying in line with the accounting principles and ethical standards keeps the organization free of any penalties and creating a bad reputation for the organization. Four elements of financial management The four elements of financial management are planning, monitoring, operations, budgeting and financial analysis. Monitoring is when financial results are being reviewed to make sure resources are being used correctly along with the organizations plan. Governance helps by giving guidance to the organization to make sure they are establishing their obligations. Employees need to know how to use the organization’s software and information they have to help with the data and assisting in analysis when it comes to operations. General accepted accounting principles According to the Office of Financial Government (2012) website “General Accepted Accounting Principles are uniform minimum standards of and guidelines to financial accounting and reporting”. When it comes to governmental accounting the GAAP requires fund accounting. This meaning a governmental unit, such as hospitals, is accounted for through separate funds. General financing ethical standards Ethics is described as a human conduct knowing between...
Words: 320 - Pages: 2
...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...
Words: 872 - Pages: 4
...Reporting Practices and Ethics Tiffany L. Richardson HCS 405 July 18, 2011 Todd Brown Reporting Practices and Ethics Financial Management is a fundamental part to successful healthcare financial planning. Financial decisions are a necessary part of the day to day operations of any type or sized health care facility. These decisions are made in accordance with the facilities fiscal objectives and accounting practices. It is important that the individuals making these decisions follow proper reporting and ethical practices since these decisions affect the future of the entire facility. In order to make finical decisions it is important to understand generally accepted accounting principles, corporate compliance, ethics, fraud and abuse. Generally Accepted Accounting Principles Generally accepted accounting principles are guidelines, objectives and conventions that have been set up over time to dictate how financial statements are prepared and presented (FASAB, 2010). The GAAP includes standards, conventions and the rules in which the facilities accounting department following when summarizing reports and preparing financial statements (Baker & Baker, 2011). Third parties that use these financial reports must then rely on the information to be free from all prejudice and discrepancy without debate. If the information is false then the GAAP standards were not followed and the facility is not in compliance and therefore behaving unethically (All Business, 2011). Facilities...
Words: 1022 - Pages: 5
...Reporting Practices and Ethics Lindsey Petway HCS 405 December 14, 2014 Professor Jennifer Noren Reporting Practices and Ethics Introduction Success comes from effectively implementing the four elements of financial management: planning, controlling, organizing, and decision-making. These four recognized elements allow health care organizations to adjust the inflow and outflow to achieve the most beneficial outcome. A health care organization’s success depends on more than just providing excellent service to patients. One of the most important aspects of any business, including health care, is to stand by their ethical standards. It is vital for health care organizations to conduct their businesses and report finances ethically and in compliance with all laws and regulations. Four Elements of Financial Management Planning is one of the four important parts of managing a company. Planning consists of identifying the best way to achieve the organization's goal. First the manager needs to identify the main objectives needed to reach the goal. Then the manager needs to recognize what steps need to be taken to reach each objective. Essentially, the manager is developing a plan by breaking up one large goal and categorizing it into smaller goals (objectives). These objectives can then be delegated to appropriate teams with steps on how to reach each one. Controlling is another vital element...
Words: 1149 - Pages: 5
...Reporting Practices and Ethics Latarshia Jackson HCS 405 February 19, 2012 Conway Brew Reporting Practices and Ethics The misrepresentation of financial reports for any organization can bring about dire consequences. A financial accounting system provides insight into the company expectations and Many organizations depend on account management that works closely with organization management performance. Having effective management of accounting information, allows an organization to be able to evaluate a company's financial position, make appropriate use of resources, and plan on how to take the company forward in the future. Maintaining a precise and reliable financial statement is very necessary for fair financial reporting. Fair and accurate reporting allows for a company to catch any mistakes, fraud and theft that may be present. This also allows for a company to protect itself from any potential bankruptcy that may be present while also saving the company’s outcome for a potential bright future. If fair and factually account reporting does not happen it can lead to a misstatement of the company’s financial statement. This Paper will discuss the General Accepted Accounting Practices (GAAP) and the financial ethics associated with financial reporting. Financial management can be broken down into four basic elements which include planning, controlling, organizing and directing, and decision making. Although many individuals may stress planning, controlling, and decision...
Words: 1152 - Pages: 5
...Reporting Practices and Ethics Paper There are many components that come with accepted accounting principles of financial reporting practices, and ethical standards in health care finance; such as Corporate compliance, ethics, or even fraud and abuse. There are four elements of financial management. “Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.” (MSG, 2012). These elements include, “Investment decisions includes investment in fixed assets (called as capital budgeting).Investment in current assets are also a part of investment decisions called as working capital decisions. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two: Dividend for shareholders- Dividend and the rate of it has to be decided. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.” (MSG, 2012). “Generally Accepted Accounting Principles (GAAP) refers to rules of accounting used to record and report the financial...
Words: 809 - Pages: 4
...Reporting Practices and Ethics Dennis Becker HCS/405 January 24, 2012 Dr. Johnnie R. Bejarano Reporting Practices and Ethics Any health care worker must make ethical decisions on a daily basis. Acquiring the right tools to help make better ethical decisions may include ethics committees and up-to-date policies and procedures. Companies such as Enron have had a difficult time making these ethical decisions and some within the company have had to pay a hefty price. Adopting a code of ethics and communicating these ethics are a key resource for any company. An internal audit system is another way to help combat fraudulent behavior. Elements of Financial Management There are four main parts or elements of basic financial management. Planning, controlling, organization and directing, and decision making (Baker & Baker. 2011). Planning consists of identifying goals of the organization and detailing the necessary steps to achieve these goals. When planning, an organization might consider historical statistics, patient demographics and must set specific financial goals. Controlling is a way to ensure the performance matches the planning. To see the results of this a financial manager might use comparison of results and flow of information. Organization and directing entails deciding the proper path to utilizing the company’s resources and managing or guiding employees in achieving this goal. Decision making is the ability to make a decision within his or her...
Words: 794 - Pages: 4
...Reporting Practices and Ethics Cassandra Pinkston HCS/405 March 4, 2012 Conway Brew Reporting Practices and Ethics Financial reporting is becoming a major problem within the healthcare organizations and the lack of morals and ethics is behind the problems with unethical financial reporting. Within the healthcare organization one must display morals and ethical standards when making ethical decisions. When reporting finances in healthcare financial managers should practice good ethical decision making by considering ethical principles such as; justice, autonomy and beneficence . The study of healthcare financial management can be so captivating and rewarding if practiced correctly. There are four elements of financial management that has been recognized and if used properly with good ethical business decisions could make financial reporting easy. The four elements of financial management are; planning, controlling, organizing and directing and decision making (Baker, J. J., & Baker, R. W., 2011). Planning is when the financial manager of a company takes the initiative to identify what steps needs to taken to reach the organizations main goal and once the steps have been identified the manager will set out to reach their goals (Baker, J. J., & Baker, R. W, 2011). Once the financial manager have identified the steps that needs to be take he/she must make sure each area of their organization is following that plan and this is considered controlling the plan that has...
Words: 975 - Pages: 4
...Reporting Practices and Ethics In financial management there are four components that include: 1.) planning; 2.) controlling; 3.) directing and organizing; and 4.) making decisions are (jblearning, 2010) tools enabling managers to identify and accomplish objectives, ensure plans are followed, ensure an effective use of resources, and make informed choices (Baker & Baker, 2011). The generally accepted accounting principles are the uniform least possible guidelines to and standards of financial reporting (Office of Financial Management, 2001). General financial ethical standards, determined by the Financial Accounting Standards Board, are standards that are general and determine the way accountants in the United States conduct and format reports (Morley, 2014). Abuse and fraud account for as much as 15 percent in annual expenditures in health care in the United States (Rudman, 2009). Independence, integrity, and objectivity make up the three components of ethics (Gallup, 2014). The four components of financial management are: first.) planning; second.) controlling; third.) directing and organizing; and fourth.) making decisions. In summarizing the components of financial management; in the area of planning the steps are identified by the manager to be taken in accomplishing objectives of the organization. In the area of controlling, the manager ensures areas of the organization are following the established plans. One method utilized is studying current reports comparing...
Words: 993 - Pages: 4
...Reporting Practices and Ethics Krystal Jackson Septemnber 10, 2012 HCS/405 Diana Schilling Large companies need the attention of investors, creditors, and banks to continue to be profitable. The information that these entities receive is product of the generally accepted accounting principles (GAAP) that are practiced by companies to create and release their annual finances. The financial statements allow the outside entities to judge the economic health of the company and from this decide if investments and larger lines of credit are wise. In the United States the Security and Exchange Commission enforce the GAAP although it is not actual law. The GAAP can be broken down into three sections which are assumptions, principles, and constraints. There are four assumptions declare that’s the business is a "separate entity" from its expenses and personal expenses are kept separate. The assumptions also discuss the form of currently that will be used in financial reporting as well as time periods that will be recorded in said statements. There are basic principles that are cost, revenues, principle, and disclosure and these principles require that the business reports what money is spent when something is acquired, and when it is earned and documented. The statements must be matched to the reported revenue and all information to make decisions on the company's finances must be disclosed. Lastly there are four constraints: objectivity, materiality...
Words: 896 - Pages: 4
...Reporting Practices and Ethics Starla Edwards Health Care Financial Accounting/HCS 405 October 17, 2011 Marjorie Romano Reporting Practices and Ethics Financial practices and ethics can play an important part of any organization including the health care environment. In order for the health care organization to be successful one must adopt an efficient financial practice and possess ethical standards. The management of finances for a health care organization may be a challenge for managers. This is why the health care manager will follow four basic elements for financial management. The basic elements include planning, controlling, organizing and directing, and decision making (Baker & Baker, 2011). Health care organizations have accounting principles generally acceptable and will comply with the financial practice and the practice of ethics to avoid fraud or abuse of the reporting practices. Elements of Financial Management Financial management has four basic elements, which assist the manager in making effective decisions for the health care organization. The first element of financial management is planning. The financial manager needs to identify the steps that he or she needs to take to accomplish the goals of the organization. However, first the manager must determine what the goal is for the organization and at that time determine what steps to follow to achieve the goal. The next element is controlling; a plan is in place that each area of the organization...
Words: 858 - Pages: 4
...Reporting Practices and Ethics Monika Kaloyanova HCS/405 August 31st 2015 Professor Joe Gazdik Introduction There are a lot of important parts in health care organizations but what sticks out the most is financial management. Financial management needs to be taken seriously and everything has to be done accurately because there are consequences if errors occur and the organization cannot function properly. It also helps to see the profit and loss that the organization is having and to see what changes need to be done to fix anything. Four elements in financial management In financial management, there are four elements that are vital to any company and those are planning, organizing and directing, leading, and decision making “…by regularly following the four-step control process, managers can make their department more effective and productive”. Lombardi, D. J., Schermerhorn, J.R., & Kramer, B. (2007.) Planning is important because the manager identifies the steps so that the organizations plans/objectives can be accomplished. Controlling is an important element as well because it makes sure that the plans are followed. The financial manager makes sure that the units/areas of the organization are following the plans that were built. There is a way you can do that and that is to compare reports from earlier times. Organizing and directing helps in financial management because the manager uses the organization to make sure that the plans have been established. The...
Words: 859 - Pages: 4
...Reporting Practices and Ethics Jennifer Randall HCS/405 November 15, 2011 St. John Sturton, MBA, CMRP Reporting Practices and Ethics Hospitals and evolving healthcare organizations face an intimidating financial situation in today’s healthcare atmosphere. “Decreasing revenues, increasing costs, and high consumer expectations present a complex challenge for healthcare administrators and medical directors who must not only manage in today’s climate, but also position their organizations for tomorrow’s storms” (Gale Group, 2004, p. 2). This paper will summarize the four elements of financial management; summarize generally accepted accounting principles and general financial ethical standards; and provide examples from articles that reflect ethical standards of conduct and financial reporting practices. Four Financial Management Elements Planning, controlling, organizing and directing, and decision making are the four elements of financial management. The purpose of planning is for the financial manager to identify the objectives and identify the steps required to achieve those objectives. The purpose of controlling is for the financial manager to review and compare current reports against previous data to ensure the plans, set by the organization, are being followed properly and efficiently. The purpose of organizing and directing is for the financial manager to ensure effective resource use and provide daily supervision. Lastly, the purpose of decision...
Words: 737 - Pages: 3
