Positive financial outcomes are achieved through a financial management system that receives, disburses, and accounts for funds consistent with sound financial practices.
Annual financial statements are prepared in accordance with Generally Accepted Accounting Principles.
The organization's financial reporting system is capable of providing information that:
Accounting practices and procedures include:
Interpretation: Please note that these procedures must address cash, checks, and other accounts.
The organization seeks to conserve its fiscal resources by:
Accounting records are kept up-to-date and balanced on a monthly basis, as demonstrated by:
Interpretation: Subsidiary records include, but are not limited to: accounts receivable, accounts payable, and property plant & equipment.
The organization uses the accrual method of accounting, at least at the end of the year.
Oversight and management of the organizationís accounting system require:
Where applicable, the organization makes timely payments to, or provides proof of exemption from, the following taxing authorities:
Interpretation: Maintenance or allowance funds are examples of funds disbursed to service recipients.
NA The organization does not assume fiduciary responsibility for, or disburse client or non-fee-for-service funds to service recipients.
The organization that provides services as a vendor establishes safeguards against over- and under-billing that include:
NA The organization is not a vendor of services.
The organization determines the basis for any denial of coverage or payment under insurance or contractual arrangements and follows up with timely appeals and communication with the service recipient, as applicable.
NA The organization only accepts fee for service clients.
The network management entity:
NA The organization is not a network management entity or is a network management entity that does not manage contracts.
Contracted providers are informed in a timely manner if delays in payment to the network by the purchaser may result in delays in payment to providers.
NA The organization is not a network management entity, or is a network management entity that does not manage contracts.