Financial Statements Review
Patton-Fuller Community Hospital completed and distributed financial statements to its stakeholders. It is the responsibility of the Chief Financial Officer (CFO) and management staff to review each report in order to make wise financial decisions for the future success of the institution. When reviewing these reports, it is imperative to understand three vital aspects. Firstly, when looking at the annual report, the CFO should understand the differences between audited and unaudited financial statements. The second aspect to consider when reviewing financial statements is the effect revenue sources will have on financial reporting. The third aspect that should be appreciated is how the hospital 's revenues and expenses are grouped for planning and control purposes. The following discussion will look deeper into each aspect and highlight areas for the CFO and management staff consider.
The Differences between Audited and Unaudited Reports
The first aspect the CFO and management staff should comprehend is the difference between audited and unaudited reports. Audited financial reports are reviewed and adjusted for accuracy and compliance according …show more content…
The CFO over-estimated the budget by $18,856 in 2009 due to the fiscal numbers demonstrated in the 2008 statement. The statement reflects revenue from the number of patients seen minus inventory and bad debt. By over-estimating the budget, Patton-Fuller Community Hospital can negatively affect its financial reporting. By negatively reflecting its financial reporting, the hospital may not receive financial backing from investors or obtain the necessary financing to purchase new equipment to maintain a state-of-the-art status. Additionally, the hospital may not receive loans to move ahead with building expansions or add new community services due to higher-than-normal interest
Patton-Fuller Community Hospital completed and distributed financial statements to its stakeholders. It is the responsibility of the Chief Financial Officer (CFO) and management staff to review each report in order to make wise financial decisions for the future success of the institution. When reviewing these reports, it is imperative to understand three vital aspects. Firstly, when looking at the annual report, the CFO should understand the differences between audited and unaudited financial statements. The second aspect to consider when reviewing financial statements is the effect revenue sources will have on financial reporting. The third aspect that should be appreciated is how the hospital 's revenues and expenses are grouped for planning and control purposes. The following discussion will look deeper into each aspect and highlight areas for the CFO and management staff consider.
The Differences between Audited and Unaudited Reports
The first aspect the CFO and management staff should comprehend is the difference between audited and unaudited reports. Audited financial reports are reviewed and adjusted for accuracy and compliance according …show more content…
The CFO over-estimated the budget by $18,856 in 2009 due to the fiscal numbers demonstrated in the 2008 statement. The statement reflects revenue from the number of patients seen minus inventory and bad debt. By over-estimating the budget, Patton-Fuller Community Hospital can negatively affect its financial reporting. By negatively reflecting its financial reporting, the hospital may not receive financial backing from investors or obtain the necessary financing to purchase new equipment to maintain a state-of-the-art status. Additionally, the hospital may not receive loans to move ahead with building expansions or add new community services due to higher-than-normal interest