...Financial Statements Review Financial Statements Review The following paper will address the Patton-Fuller Community Hospitals financial statements including the differences between the audited and unaudited financial statements, the effect that revenue sources had on the financial reporting for the hospital and how the hospitals revenue and expenses were grouped for planning and control. When organizations report unaudited financials it is important to realize there may be changes in the audited financial reporting that may occur after an independent review by an outside accounting firm. Additionally it is also important to realize the effect revenue sources can have on financial reporting and the importance of grouping revenue and expenses when implementing internal financial planning and controls. All of the financial information discussed in this paper is important from a financial accounting perspective for external decision makers can evaluate how well the organization has achieved their goals, as well as, a management accounting perspective to provide internal decision makers with financial information to make operational decisions to help them achieve their goals. How Did the Audited and Unaudited Financial Statements Differ? - Stormie There are two types of financial statements, unaudited financial statements are financial statements that are generated based the financial information that has been provided to certified public accountants based on the accuracy of...
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...Course Design Guide HCS/405 Version 5 1 Course Design Guide College of Natural Sciences HCS/405 Version 5 Health Care Financial Accounting Copyright © 2012, 2010, 2007, 2005, 2004, 2002, 1999 by University of Phoenix. All rights reserved. Course Description This course provides an understanding of the general principles of accounting applied in the health care environment. It includes an overview of sources of revenue for various health care entities. The fundamentals of financial planning, cost concepts, capital budgeting, and management analysis are applied in the health care environment. Issues surrounding the development and management of budgets are also examined. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Baker, J. J., & Baker, R. W. (2011). Health care finance: Basic tools for nonfinancial managers (3rd ed.). Sudbury, MA: Jones & Bartlett Publishers. All electronic materials are available on the...
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...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 each area of...
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...Practices and Ethics Paper Jessy Dominique-Clark HCS/405 Health Care Financial Accounting September 24, 2013 Debra Brindley Reporting Practices and Ethics Paper The National Health Care Anti-Fraud Association assess that the economic damages cause by health care fraud is more than ten of billon dollars every year. Financial controlling is difficult, but by using the four fundamentals of monetary management correctly and following the generally accepted accounting principles, revealing the financial position of an organization is not difficult ("The Challenge of Health Care Fraud", 2012). The four fundamentals of monetary management are controlling, decision-making, organizing, and planning. Controlling entails ensuring that every area of the organization is adhering to the plans that have been established. The decision-making process entails making an educated choice. Organizing entails using the organizations resources to successfully carry out the plans that have been established. The process of planning is to compile goals of the organization and then to identify the steps necessary for achieving these goals. The financial management team is accountable for ensuring the reports are up-to-date, and they are accountable for reporting the funds with the principles set forth by the code of ethics and mission statement of the organization. Every organization has the obligation and wants the veracity to release the correct financial position to its stakeholders and to the community...
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...Reporting Practice and Ethics HCS/405 Health Care Financial Accounting June 29, 2015 In order to function properly, every company or organization should have a financial plan in place. Health care organizations are part of the service industry and are no exception and cannot successfully operate without proper financial management. Financial management involves the managing of organizational funds in order to meet organizational goals and plays an important role in helping organizations work more effectively. According to Hicks (n.d.), “within accounting and financial management, there are four key elements recognized. The four elements are: Planning, Controlling, Organizing and Directing and Decision Making.” As with all other organizations, health care organizations must follow general ethical standards of conduct and financial reporting practices known as the General Accepted Accounting Principles (GAAP). The four elements of financial planning are set in place to help the financial process operate properly. The purpose of each of these tasks is as follows: * Planning - helps identify the organizational needs and objectives as well as the steps necessary to meet these needs; * Controlling – involves comparing current and past reports or feedback in order to determine if any area of the organization is ineffective or simply needs help. Controlling also ensures that the plans set in place during the planning process are being followed. * Organizing and directing...
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...Brown HCS/405 July 15, 2012 Michelle L. Thomas Reporting Practices and Ethics The health care environment, in which financial realities and financial ethics play an important role in health services decision making, it is vital that managers at all levels understand the basic concepts of health care finance and how these concepts are used to enhance the financial well-being of the organization. In this paper, we will discuss the four elements of financial management, to include the accepted accounting principles and financial ethical standards. We will provide an example of ethical standards and financial reporting practices. Health Care Financing is a systematic framework for the evaluation of healthcare systems, as well as perform interdisciplinary research focusing on the relationship between economic development and healthcare (Baker & Baker, 2011). Financial Management Health care organizations accommodate services to consumers and also their financial status is also important to providing services. In any organization, financial management is very important toward an organization’s success. Financial management consists of four elements that work toward an organization financial practices and ethical standards (Dye and Sridhar (2008). Four Elements The first two elements of financial management works hand-in- hand are organizing and controlling. Financial managers use four basic financial statements to keep record of the organization’s financial status...
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...Reporting Practices and Ethics Paper Bryan Luther HCS/405 April 30, 2012 Janine Lewis Reporting Practices and Ethics Paper Financial Management is important in all portions of health care financial planning. Numerous financial decisions are made on a day-to-day basis from all the accounting records and business dealings that occur. Chief financial officers make decisions according to the organization’s fiscal objectives or by using generally accepted accounting principles. Many sources have divided the elements or principles of financial management up into different 10 principles. Baker (2011), on the other hand, identifies four basic principles that are crucial to health care organizations reporting practices: planning, controlling, organizing/directing, and decision making. Initial planning requires financial managers to know the short term and long term objectives of their organization and to create plans for meeting those objectives. Planning is more than the higher management of a health care facility deciding what it wants to accomplish. Effective planners define strategies when planning and seek the input of everyone involved in the process. This ensures everyone supports the plan and understands their roles in executing the plan (Baker & Baker, 2011). To control the finances, the manager guarantees that every part of the organization is following the strategy of the corporation and all of the information has been established. To do this the manager will...
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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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...Christine Crumity HCS 405 Module R4 October 10, 2011 Barbara Archer Reporting Practices and Ethics Reporting practices and ethics are the seams of health care accounting and management. It is important that the principles and practices are adhered to in order for the organization to continue operating. Health care is an organization which thrives on care and safety along with stability. It is management’s responsibility to ensure that not only care criteria are met, but financial obligations also. It is important to remember that the health organization not only serves the client, but family also when care, finance, and ethics are at hand. The function of management is to report fairly and accurately on all financial statements and obligations. Management is the key competency when it comes to ensuring that the strength of the organization is strong and all reporting practices are legal. Management will be the obligator to report to not only other management members, but the CEO or Chief Financial officer also. Management has the ability to keep staff stable, knowing that jobs are secure to financial statements or operational costs are not an issue in the health care organization they are currently employed in. If management respect their practices and obligations to report all finances fairly and accurately the organization can continue operating successfully. Management is the leaders in consistent and accurate reporting of financial statement for with...
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...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 must follow. The financial manager must...
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...Paper HCS/405 December 12, 2011 Professor Ethics Paper When we talk about financial planning we have to take step back, look at the whole picture, and understand how it begins. Financial Management is the key essential in an organization when you plan financially. Financial Management is the building blocks for all accounting records and business transactions that occur. We cannot forget that decisions are based on the organizations fiscal objectives others are based on general accounting principles. So to better understand you must ask the question of “Is the financial management of the organization strong and how is the financial reporting records validity”? When we think of financial management we have to start with the basic framework of any accounting structure and that would be the generally accepted accounting principles (GAAP) is the hierarchy of accounting standards. As we look at these accounting standards, the GAAP has a long list that follows such as; standards, conventions and the rules of the organizations accounting follows when during summarizing all transactions for the financial statement. Then we have what is known as the third parties these should be free of any type of bias and inconsistency without debate or the GAAP standards will follow. With any organization the “general accepted accounting principles are guidelines precisely, are a group objectives and conventions that have been set up permanently over time to set how financial statements...
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...Reporting Practices and Ethics Nicole Anderson HCS/405 March 16, 2015 Joe Gazdik Reporting Practices and Ethics According to The Chron, Generally Accepted Accounting Principles (GAAP) are accounting standards used in the United States that allow the recording and reporting of financial information in a uniform manner (2015). As a benefit Companies can ease the burden of comparing financial statements by using GAAP. GAAP also aids in health care to establish creditworthiness of the business or organization and earn a rating of financial strength. GAAP allows business to use actual accounting. By using GAAP companies can report outstanding revenue. A company has the ability to show an acquisition or money that is guaranteed but not yet received, such as a government grant, which provides a higher net worth than if the cash accounting method were used. Monies defaulted by clients or patients is may not be included. This process is called a contra asset and is reported as a realizable value. According to the National Law Review, with the increased focus by the Obama Administration on financial crimes, health care fraud, and corporate fraud, corporate compliance and ethics programs have never been more important (2010). This article discusses the importance of effective corporate compliance programs and ethics programs. These Guidelines will help permit reductions of a subsequent sentence, culpability score, for organizations that have shown to have effective compliance...
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...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 Federal Accounting Standards...
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...Brandee Robinson HCS 405 Week 2 July 27,2015 Instructor Financial management and stability is a very important factor of every health care facility. Financial planning needs to be taken into account very accurate and deal with care as well as seriousness. It is important to keep everything that involves finances in a company recorded properly in order for it to function properly watching every move a company make financially. By doing this it will help to keep track of how a company is doing whether its good or bad. The financial planning also helps give the finance department a look inside the company to see where their money is going as to see and if they are have gained profits or suffered from a lost. From this information being provided a company can then decide if changes need to be made in order to avoid any more loss from within the company. Accounting in any company is the vital part of an organization. It is very important to have a good accounting team in the finance team. Why, because the finances is what runs the business, and without the tracking and upkeep of funding, a company cannot run properly. According to "Healthcare Financing And Accounting " (2015), “the great thing about working in accounting is that everybody counts”. This information pretty much states and says that it doesn’t matter what part of a health care facility you may work in, all employees are a vital part of the day. Financial management involves handling routine financial operations, such...
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...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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