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 …show more content…
Generally accepted accounting principles include financial and managerial accounting. Financial accounting deals with the external reporting of information to outside organizations and managerial accounting deals with providing information for internal management (Walther, 2010). Financial accounting consists of standardized principles and practices to provide accurate and understandable information to outside organizations. Managerial accounting serves the needs of management. Business managers must plan, organize, and control the organization’s budget which requires special reports produced by managerial accounting services.
The Financial Planning Standards Council requires all organizations to abide by a certain code of ethics. “The Code of Ethics is based on seven Principles - Integrity, Objectivity, Competence, Fairness, Confidentiality, Professionalism and Diligence” (Financial Planning Standards Council, 2011, para. 1-3). Integrity deals with the decision of what is right and just. Objectivity consists of impartialness and honesty. Competence requires a certain level of knowledge and training. Fairness consists of impartialness, honesty, and an ability to resolve conflict. Confidentiality requires trust and confidence