Accounting for revenue, expenditure and results of activities at Vietnam Academy of Traditional Medicine

INTRODUCTION

1. Urgency of the topic

Academy is an educational institution that was improved from university, established later. Compared to university, academy training is more academic in nature, with a research orientation. University autonomy is a necessary condition to implement advanced management methods to improve and enhance training quality. In Vietnam, the university autonomy mechanism has been recognized in legal documents of the State such as: Article 10 of the University Charter, issued with Decision No. 153/2003/QD-TTg of the Prime Minister, Article 14 of the Law on Higher Education issued in 2005 and in Clause 1, Article 32 of the Law on Higher Education 2012 states: "Higher education institutions are autonomous in activities mainly in the fields of organization and personnel, finance and assets, training, science and technology, international cooperation, and ensuring the quality of higher education. Higher education institutions exercise autonomy at a higher level in accordance with their capacity, ranking results and educational quality assessment results.

In order to encourage low-autonomy units to strive to increase revenue to achieve a higher level of autonomy, the State issued Decree 16/2015/ND-CP dated February 14, 2015, effective from April 6, 2015, replacing Decree 43/2006/ND-CP dated April 25, 2006, regulating the autonomy mechanism of public service units (SNCL). The goal of this Decree is to comprehensively innovate SNCL units, including public universities (UUs); promote the assignment of autonomy and self-responsibility to units in synchronization in terms of task performance, organizational structure, and financial personnel. The innovation of the autonomy mechanism of SNCL units aims to promote career units to rise up and enhance their autonomy at a higher level. The results of the innovation of the operational mechanism of public service units must aim at providing better public service to all classes of people and ensuring that policy beneficiaries and the poor have access to and enjoy basic, essential public services with higher quality and more fairness. The Decree also clearly states the regulations on financial autonomy of public service units at different levels on the principle that the unit

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High autonomy in financial resources means high autonomy in management and use of financial results and vice versa.

Therefore, accounting - as a management tool of universities in the autonomous mechanism is considered the key to success. In addition to promotional activities, improving training quality to attract more students to meet the needs of society, universities need to grasp the necessary and accurate information and data from the accounting department to help the Board of Directors have an accurate view of the financial revenue and expenditure situation of the unit. From there, make appropriate management decisions to improve the training efficiency of the University, and be able to publicize finances to attract more legal capital sources from outside.

Accounting for revenues, expenditures and results of activities is an extremely important content in the accounting work of each SNCL unit in general and of universities in particular. The study aims to provide solutions to improve the accounting for revenues, expenditures and results of activities which have practical significance for accounting work in particular and for the organization, operation and management of universities in general under autonomous conditions. In recent years, the Vietnam Academy of Traditional Medicine has also followed the general trend of moving towards partial autonomy and full autonomy. To be autonomous, the Academy needs information, one of the important channels of information provision is accounting. Therefore, accounting work is of great interest to provide useful information in making management decisions of the Academy. However, due to the frequent changes in accounting and financial policies and regimes, accounting work also needs to be changed and improved to adapt. Based on the above reasons, after the process of studying and researching in practice at the unit, I chose the topic "Accounting for revenue, expenditure and results of activities at the Vietnam Academy of Traditional Medicine" as the topic of my Master's thesis in accounting with the desire to propose some solutions to improve the accounting for revenue, expenditure and results of activities at the Vietnam Academy of Traditional Medicine. To prepare firmly for financial work for the Academy in the roadmap towards complete autonomy.

2. Overview of research situation

In Vietnam, studies on accounting for revenues, expenditures and results of activities in public service units have received much attention and been mentioned in many scientific research topics and master's theses, specifically:

- Master's thesis in economics by Nguyen Thi Khanh (2017) "Accounting for revenue and expenditure activities at sports public service units in Hai Duong city". The thesis outlines the content of accounting for revenue and expenditure activities at sports public service units in Hai Duong city according to 3 types of revenue and expenditure activities: state budget revenue and expenditure, public service revenue and expenditure and production and business revenue and expenditure. Thereby, the thesis has proposed 2 groups of solutions to improve the accounting for revenue and expenditure activities: improving the content of revenue and expenditure activities and improving the accounting for revenue and expenditure activities at sports public service units in Hai Duong city.

- Master's thesis in economics by Tran Thi Lan (2018) " Accounting for revenue and expenditure activities at research institutes under the Ministry of Natural Resources and Environment" . The thesis presented general theories and the current status of accounting for revenue and expenditure activities from the State budget; career; accounting for revenue and expenditure of production and business activities and other activities at research institutes under the Ministry of Natural Resources and Environment in the context of financial autonomy. The thesis pointed out some achievements and remaining problems in accounting for revenue and expenditure activities at research institutes under the Ministry of Natural Resources and Environment and proposed solutions to improve the accounting for revenue and expenditure activities at the surveyed units, namely: improving the identification of revenue and expenditure transactions; improving accounting work. However, due to the source of data, the author has only surveyed units that are currently applying Decision 19/2006/QD-BTC and have not yet switched to implementing Circular 107/2017/TT-BTC.

- Master's thesis in accounting by Nguyen Thi Minh Trang (2019) " Accounting for revenue and expenditure activities at Hanoi University of Natural Resources and Environment" . The thesis presented general theories on accounting for revenue and expenditure activities at natural resources and environment units, thereby analyzing and evaluating the current status of accounting work.

revenue and expenditure activities at Hanoi University of Natural Resources and Environment and propose feasible solutions to improve revenue and expenditure accounting in both financial accounting (KTTC) and management accounting aspects.

In general, the topics have all mentioned the issue of accounting for revenue and expenditure activities at public service units, analyzed and clarified the general theories of accounting for revenue and expenditure activities, pointed out the advantages, shortcomings, causes and solutions to improve the effectiveness of accounting for revenue and expenditure activities for the selected research units. However, there has not been any work that specifically and comprehensively researched and analyzed the revenue and expenditure accounting and results of activities at the Vietnam Academy of Traditional Medicine and Pharmacy in the context of financial autonomy. Therefore, in this study, the author will continue to inherit the works of previous authors on the theoretical basis of accounting for revenue and expenditure activities in public service units and on the basis of surveying secondary data sources on revenue and expenditure accounting and results of activities at the Vietnam Academy of Traditional Medicine and Pharmacy in the context of financial autonomy. Thereby, the author wishes to propose feasible solutions to improve revenue and expenditure accounting and results of activities.

3. Research objectives and tasks

3.1. Research objectives

- Complete accounting of revenue, expenditure and results of activities at Vietnam Academy of Traditional Medicine.

3.2. Research tasks

- Systemize and clarify general theories on accounting for revenue, expenditure and results of activities at SNCL units.

- Study the characteristics of the organizational structure and general characteristics of accounting work. Survey and evaluate the current status of accounting for revenue, expenditure and results of activities at the Vietnam Academy of Traditional Medicine. Thereby, draw out the advantages and disadvantages in accounting for revenue, expenditure and results of activities of the unit.

- From analyzing and evaluating the current status of revenue and expenditure accounting and results of activities at the Vietnam Academy of Traditional Medicine, solutions are proposed to improve revenue and expenditure accounting and results of activities during the process.

financial autonomy

4. Research object and scope

4.1. Research subjects

Research topic on accounting for revenue, expenditure and results of activities of enterprises

SNCL unit.

4.2. Scope of research

- Research space: Vietnam Academy of Traditional Medicine and Pharmacy.

- Research time: The thesis conducts a survey and collects evidence data on revenue and expenditure accounting and results of activities at the surveyed unit in 2019.

- Content: Research on accounting for revenue, expenditure and results of activities at Vietnam Academy of Traditional Medicine.

5. Research methods

Based on the object, scope and objectives of the research, the research method used is as follows:

5.1. Information collection method

The study used two data sources in the research process, which are secondary information and primary information. The method of collecting information for these two data sources is as follows:

5.1.1. Collect secondary data sources

Secondary data sources are available data collected by research, surveys or statistical agencies.

During the research process, secondary data sources mainly serve to study the theoretical basis of accounting for revenue, expenditure and results of activities in SNCL units in general and Vietnam Academy of Traditional Medicine and Pharmacy in particular. Specifically:

- Synthesize legal documents on accounting for public employees, financial management in public employees' units in general and the Vietnam Academy of Traditional Medicine and Pharmacy in particular: Legal documents on accounting; legal documents on financial management; legal documents on educational management for public universities; specialized textbooks of the National Economics University, Academy of Finance, Academy of Banking, University of Commerce....

- Thesis and articles on revenue and expenditure accounting and results of activities at public service units.

5.1.2. Collecting primary data sources

Primary data : Primary data was collected through direct interviews with accountants and managers at the Vietnam Academy of Traditional Medicine.

5.2. Methods of data synthesis, analysis and processing

The data obtained from collection, observation, and interview are used by the author using methods such as induction, interpretation, comparison, and statistical methods to analyze theoretical and practical issues. On that basis, evaluate and draw conclusions, thereby providing appropriate and feasible solutions.

6. Contributions of the research topic

In theory: The thesis has presented a comprehensive and systematic way of accounting for revenue, expenditure and results of activities in public service units.

In practice: The thesis has generally described the characteristics of activities affecting the accounting of revenues, expenditures and results of activities at the Vietnam Academy of Traditional Medicine. Reflecting the current situation of accounting for revenues, expenditures and results of activities from the perspective of financial accounting, pointing out the advantages and limitations in accounting for revenues, expenditures and results at the Vietnam Academy of Traditional Medicine in the process of implementing financial autonomy. Thereby, proposing specific solutions to improve the accounting of revenues, expenditures and results of activities, ensuring conformity with the characteristics of activities, financial management and accounting mechanisms of the Vietnam Academy of Traditional Medicine, and at the same time anticipating changes in the near future when switching to a model of complete financial autonomy.

7. Thesis structure

The thesis content is structured in 3 chapters:

Chapter 1: Theoretical basis of accounting for revenue, expenditure and results of activities in public service units

Chapter 2: Current status of accounting for revenue, expenditure and results of activities at Vietnam Academy of Traditional Medicine

Chapter 3: Completing the accounting of revenue, expenditure and results of activities at the Vietnam Academy of Traditional Medicine

Chapter 1

THEORETICAL BASIS OF ACCOUNTING FOR REVENUE, EXPENDITURE AND RESULTS OF ACTIVITIES IN PUBLIC SERVICE UNITS

1.1. Overview of public service units

1.1.1. Concept of public service unit

According to the Law on Public Employees No. 58/2010/QH12 issued by the National Assembly on November 15, 2010 and officially effective from January 1, 2012, Article 9 of the law stipulates: "A public service unit is an organization established by a competent State agency, a political organization, or a socio-political organization in accordance with the provisions of law, with legal status, providing public services, and serving state management" [14, p.3].

According to Decree No. 16/2015/ND-CP issued by the Government on February 14, 2015, Article 2 of the Decree stipulates: "Public service units are units established by competent state agencies in accordance with the provisions of law, have legal status, operate to provide public social services and services to maintain the normal operation of the national economic sector" [4, p.1] .

According to Decree No. 85/2012/ND-CP issued by the Government on October 15, 2012, Article 2 of the Decree stipulates: “A public health service unit is an organization established and managed by a competent state agency in accordance with the provisions of law, with legal status, seal, account and accounting apparatus organization in accordance with the provisions of the law on accounting to perform the task of providing public services or serving state management in specialized health fields such as: Preventive medicine; medical examination and treatment; nursing and rehabilitation; medical examination, forensic medicine, forensic psychiatry; traditional medicine; testing of pharmaceuticals, cosmetics, medical equipment; food safety and hygiene; population - family planning; reproductive health; health education and communication” [5, p.1] .

A public service unit is a unit established by a competent state agency, has legal status, its own seal and account, and serves

State management functions or providing public services in sectors and fields as prescribed by law such as health, education and training, science and technology, etc. Public service units operate according to the principle of serving society, not for profit, serving essential common needs and interests, providing products that bring common, long-term and sustainable benefits to society.

1.1.2. Characteristics of public service units

Characteristics of public service units

Carry out the tasks assigned by the Party and State

Self-establish revenue and expenditure estimates, expenditures must comply with state regulations.

Expenditures covered in part or entirely by State-funded funds

The purpose of operation is not for profit, mainly serving the community's interests.

Products that bring sustainable, long-term benefits to society

Activities are closely linked to and governed by the State's socio-economic development program.

The SNCL unit is a part of the system of units of the State management apparatus, so it is always under the control of the State through management tools, especially financial management. Because the cost is from the State budget, the SNCL unit must make its own revenue and expenditure estimates, and the expenditure must comply with the State's standard norms, as prescribed by law.

Diagram 1.1. Characteristics of public service units

Source: Author's synthesis

1.1.3. Classification of public service units

Depending on the viewpoint, approach or due to the requirements of state management and different criteria, SNCL units can be classified in different ways.

(* ) According to the field of operation, SNCL units are divided into:

Accounting for revenue, expenditure and results of activities at Vietnam Academy of Traditional Medicine - 2

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