Individual

Amy Roukie, MBA

HCS/405

Reporting Practices and Ethics

In any financial management system, a variety of accounting and other records is required in order to adequately provide a picture of the financial condition and results of operations of the organization. Health care facilities are required to have an effective financial management system as a condition of receiving federal funds. Federal and state rules and regulations establish financial standards that healthcare facilities are required to meet. These regulations are monitored by The Financial Accounting Standards Board (FASB). The generally accepted accounting principles are standards that determine how accountants establish and set up their reports (Morley). “The law authorizes the Comptroller and The Office of Policy and Management (OPM)” to implement the use of Governmental generally-accepted accounting principles (GAAP), for the state's yearly financial budget and statements.. Management should be held accountable to achieve and sustain an operational system of internal control. A health care facility's internal control plan should include policies and procedures to achieve the company’s objectives. An internal control structure is made up of four elements of financial management (Cummings).

There are four known elements of financial management planning, organizing, directing, controlling, and decision-making. Most experts emphasize using only three of the elements, which are planning, controlling, and decision-making. Many professionals see the other function as apart of the controlling component. Organizing and directing is seen as separate components, because the two are time consuming to perform yet, the steps are necessary to accomplish organizational goals. When using the controlling component, a finance manager should make sure that all departments are adhering to policies and procedures. This can be done by examining recent reports and then, compare them to past...