short question

HFMA Certification

Disbursement Functions

Disbursement Function Ø Functional focus:

2 areas: 2) Purchasing: - Requisitions - Authorizations - Procurement - Verification/approval - Payment processing/posting

Disbursement Function

Payroll: Ø  Ensures authorized wages are paid Ø  May capture independent contract work

fees Ø  Collaborate with AP in issuing 1099s

Disbursement Function

Payroll – Over view Ø Salaries and wages Ø Labor related expenses Ø Professional fees and salary expenses

excluded from payroll processing

Disbursement Functions

All managers have payroll related responsibilities:

Ø Ensuring that an employee is present and working for each position and for every shift required for that position.

Ø Ensuring required positions are properly staffed but not overstaffed.

Disbursement Function

FTE’s Ø An employee (annualized) Ø A position (staffed)

Disbursement Function

Purchasing Ø  The planning and control of the functions

supporting the complete cycle (flow) of materials

Disbursement Function

Materials Management: –  Includes these functions:

•  (1) identification of products, •  (2) cataloging of inventory, •  (3) standardization of similar

products used throughout the organization,

•  (4) need determination, •  (5) scheduling orders,

•  (6) procurement (ordering),

•  (7) inspection of the product received for defects/damage,

•  (8) quality control, •  (9) packaging products in

usable quantities, •  (10) storage, •  (11) inventory control, •  (12) distribution, and •  (13) disposal.1

Source: Adapted from (1) http://www.businessdictionary.com/definition/materials-management.html

Disbursement Function

Materials/supplies monitoring: Ø Inventory Ø Demands for services Ø Ordering behaviors Ø Department changes in suppliers or

ordering patterns

Disbursement Function