Reporting Practices and Ethics Paper

There are four basic divisions of financial management one planning, two controlling, three reorganizing and directing and four decision making. The reason for four separate divisions are based on the purpose of each task.

Organizing is a function of arranging people and resources to work towards goals. To achieve those goals in effective and efficient manner it is important to have a good knowledge of the team’s skills. Lack of motivation in the team, fear of undervaluation or poor attitude could fail the goals and on the other hand enthusiasm, motivation and given responsibility can bring successful results in reaching the goals. In other words the company’s objectives can be failed if the wrong person is chosen for the task. Manager is a person who chooses

According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results. A manager performs organizing function with the help of following steps:-

The role of finance in Health Care Systems, Inc. as a regional not-for-profit hospital relates to both the accounting and financial management aspects of the business. Facets of both accounting and financial management are intertwined with maximizing productivity by way of managing and analyzing financial operations to ensure resources are being utilized properly (Gapensiki, 2013). The divulgence of financial reports to managers and investors will aid in the development of plans and budgets for future growth, assess acceptable levels of financial risk, manage contracts appropriately and make decisions related to capital investments allowing the organization to expand service offerings thereby demonstrating greater value in the community. Operating as a not-for-profit entity requires that the hospital operate exclusively in the interest of the public for a charitable purpose. Through understanding who the primary third party payers

Operational planning is used mostly by lower level or front line managers. These are the routine tasks of scheduling, human resource tasks, and daily statistics which are looked at when planning for future staffing and projects. Although these tasks are carried out by lower level management or supervisors, they upper management still has a say in these tasks. The upper level management or leadership team more than likely made those tasks as a part of the employees daily routine; so again, all hands of management play a roll in the operational planning as well.

Financial management is important to any health care facility and can be more difficult in a health care facility versus another industry. According to Gapenski (2006), the functions of financial management include the

The primary objective of accounting is to provide information useful for decision-making (McNair, Olds & Milam, 2013). Financial stability, financial health, and financial performance were, is and will always be a primary focus in healthcare for years to come. In fact, understanding financial performance in any business requires some global or summary measure of economic success (Cleverley, Song and Cleverley, 2010). Therefore, a financially “healthy” organization is one that is producing an operating margin sufficient to finance the current and future capital for its business (Harrison & Montalvo, 2002). Although operating margin is critically important, a healthcare organization should not rely solely on this measure. Therefore, according to Cleverley et al. (2010), a financially successful organization is capable of generating the resources needed to meet its mission. However, in planning for financial stability and health, health care administrators and financial managers need to strategically plan how to address the needs of their organization. The level of resources required by a healthcare organization depends primarily on the range and quantity of health services envisioned in the mission statement (Cleverley et al., 2010). Therefore, financially successful organizations must be capable of generating the amount of funds needed for debt and/or equity to finance the required level of

This week chapter 1 focused on introducing financial management in healthcare organizations. Financial management provides accounting and finance information to assist managers in making decisions to accomplish the organization goals. Accounting is divided into two sections: financial and managerial. Financial accounting is to provide information to external users, such as the government, lenders, insurers etc. Managerial accounting is to provide information to internal users, such as managers. Both accounting methods are very important to healthcare organizations, as they are both needed. The chapter also discusses the six major objectives of healthcare financial management, quality assessments, and ethical theories.

Organizing is identifying what jobs need to be done, and hiring the qualified people to do them.

Therefore, healthcare leaders should be able to understand reporting guidelines to comply with reporting standards and avoid further negative implications for the organization. This paper will discuss the concept of liquidity, excess of revenue over expenses and increase in unrestricted net assets. In addition, it will focus on disclosure of accounting policies in the notes to financial statements. Finally, it will review two articles that overlook reporting disclosure guidelines for Municipal Securities, and the difference between charity care and bad debt reporting.

Financial statements have several key components and specific criteria into them to relay the detailed information for auditors and management. A deeper look into financial statements and the many concepts surrounding them are needed to explain in more detail. It’s also important to recognize the Auditor’s opinion letter, balance sheet, operating statement, statement of changes in net assets, and statement of cash flows and footnotes of their involvement in the process. Relevant accounting articles are a useful supplement to financial statements and how they enhance concepts in the financial statement. The meaningful uses of financial statements for health care organizations are the epitome of current and future success of financial

Organizing deals with the organization of the employees in the workplace. This describes the roles of each employee based on their skills and knowledge to reach

Measurement of Performance: Each level of the organization will regularly compare its progress against the goals. These quality reviews should be held in conjunction

According to Bateman & Snell (2009), Management is a world of action. It is a world that requires timely and appropriate action. It is a world not for the passive but for those who commit to positive accomplishments. Management requires the organization and coordination of the activities related to the running of an organization based on established policies. Historically, organizing involved creating an organization chart by identifying business functions, establishing reporting relationships, and having a personnel department that administered plans, programs, and paperwork. Now and in the future, effective managers will be using new forms of organizing and viewing their people as perhaps their most

Strategic plan is defined as a plan which outlines the firm 's direction for the future and a broad framework of goals and objectives that needs to be achieved in line with this direction. On