August 30, 2011
Reporting Practices and Ethics
Proper, precise, and ethically sound financial management and reporting is required of all healthcare organizations. According to Wisconsin Government (1994), “agencies are required to have an effective financial management system as a condition of receiving federal funds. Federal and state rules and regulations establish several criteria that the financial systems of agencies receiving funds must meet” (Basic Elements of an Effective Financial Management System, para. 1). Throughout this paper a summary of the four elements of financial management will be discussed. A summary of generally acceptable accounting principles and general financial ethical standards will also be addressed. Examples from specific articles that reflect ethical standards of conduct and financial reporting practices along with the significance of each example will be identified and discussed in detail. There are several elements that are involved in financial management. However, there are four key elements that will be discussed throughout this paper. Those elements consist of planning, organizing/directing, controlling, and decision making. Planning requires management to set realistic objectives and devise a plan or course of action to achieve those objectives. It requires managers to be aware of their organizations current financial status as well as their future financial status in order to make sound decisions. There are several types of plans and planning techniques involved in financial management. Strategic planning consists of “analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, often three years or more. Strategic planning generally includes the entire...