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Characteristics of Operations of Administrative and Career Units



non-budgetary groups. Both groups are also divided into central units and local units.

In addition, according to the author, if considered from the perspective of financial autonomy, administrative units can be divided into two groups:

- Unit implementing financial autonomy

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- Units do not implement financial autonomy.

Thus, with the above classifications, we can determine the location, field of operation and financial mechanism that the unit complies with, the operating model of the unit, thereby determining the scope, nature and characteristics of the economic transactions arising in connection with each specific accounting object in each type of unit. On that basis, we can determine the necessary system of documents used to reflect the arising economic transactions as well as the system of accounts necessary to reflect the objects and accordingly, the accounting system suitable for each type of unit. On the basis of different management requirements in each type of unit, each different budget level can build a financial reporting system that reflects information at different levels about the accounting objects.

Characteristics of Operations of Administrative and Career Units

1.1.2. Characteristics of operations of administrative and career units

The existence of administrative units is an objective necessity associated with the socio-economic development process of the country. Through administrative units, the State provides specific products and services with national orientation and strategy, ensuring the organization and maintenance of socio-economic development tasks of the country are effectively implemented, contributing to the redistribution of social income, implementing public welfare policies, and at the same time supporting industries and business sectors to operate normally, improving people's knowledge, nurturing talents, ensuring human resources, promoting economic development, ensuring the continuous improvement of people's material, spiritual, cultural and health life. The author agrees with other authors that administrative units have four characteristics:

- Administrative and career units operate on the principle of serving society, not for profit.

- Products of administrative units are products that bring common benefits, are sustainable and organically linked to the process of creating material wealth and spiritual values.



social and can be used for many people, many objects on a wide range.

- The activities of administrative units are always closely linked to and governed by the State's socio-economic development programs.

- Administrative units, regardless of their field of operation and whether they have revenue or not, play a very important role in developing the national economy and implementing the State's social policies.

The above characteristics form the basis for identifying administrative units, and the operational characteristics of administrative units that significantly influence the organization of accounting at each administrative unit according to the author include:

The activities of administrative units always reflect the position of the unit in the financial management system of a particular industry. In this system, administrative units can belong to different levels of budget units: Level I budget units (managing units), Level II budget units are subordinate units of Level I budget units and are intermediary units that perform budget management tasks connecting Level I budget units with Level III budget units. Level III budget units are units that directly use the state budget and directly spend funds for assigned activities. Thus, administrative units at different budget unit levels will have different levels of information requirements regarding accounting objects, and even information requirements regarding the same accounting object at different budget unit levels are not the same. On the other hand, budget units at different levels are also subject to financial management decentralization at specific levels. All of these issues determine the system of organizational elements such as vouchers, accounting accounts, accounting books and accounting reports, accounting inspection must be organized appropriately to provide the most useful information for financial management. Moreover, the location of administrative units will indicate the characteristics and quantity of accounting sections and thus determine the volume of accounting work as well as the characteristics of the accounting organization model applied at the unit.

The activities of administrative units are often very diverse. In addition to the main activities of public service, units can participate in implementation activities.



projects, state orders or other business activities. Each activity in an administrative unit is covered by a different source of funding and the number of activities is not the same in all units. This difference creates the characteristics of the economic activities that arise and the characteristics of the objects associated with those activities. This characteristic affects the system of documents, the system of accounts, accounting books and accounting reports that need to be used to reflect information about accounting objects associated with units with different operating characteristics. It is this difference in activities that leads to differences in the volume of accounting work, thereby greatly affecting the determination of the volume and assignment of work, the arrangement of personnel and the development of operating regulations in the accounting apparatus to effectively perform financial management work at the unit.

Administrative units are a part of the system of units of the state management apparatus, so they are always under the control of the State through management tools, especially financial management. These units must be regulated by a certain financial mechanism, and this financial mechanism may not be the same for administrative units in different sectors and fields. That leads to the necessary information from accounting for financial management will also be different. This characteristic requires the accounting apparatus, the system of indicators on vouchers, accounting books, and accounting reports to be built appropriately to meet the requirements of providing appropriate information for management.

Administrative units can operate according to different models, which can be a single-level model or a multi-level model with many affiliated units. In terms of geographical scope, affiliated units can be concentrated in a certain area or dispersed over many different territories. Most of the basic-level budget units (level 3) operate on a narrow and concentrated scale, while the level 1 and level 2 budget units operate on a wide scale (national or provincial scale). This characteristic affects the centralized or dispersed nature of the accounting organization model at administrative units. On the other hand, administrative units often operate in a specific professional field and are directly managed by a corresponding industry, so the operations of these units are not only affected by



direct professional guidance but also influenced by general management hierarchy models including financial management. This characteristic determines the relationship between budget units at all levels when building an accounting organization model.

1.1.3. Management characteristics in administrative units

Although administrative units operate in different fields and are subject to both sectoral and territorial management, in terms of the nature of the operations of administrative units and their relationships in the overall state management activities in general, administrative units are also subject to indirect management and control by many related sectors and fields. An administrative unit, if considered according to its operational characteristics, can belong to one of two groups, a public service unit or a state management agency operating in all different fields according to its assigned functions and tasks, but regardless of the field in which it operates, these units must be subject to the management and control of related units such as: financial management agencies (Ministry of Finance, Department of Finance, Finance Department), the state treasury where the unit opens an account, and above all, the direct superior management agency. According to the author, the relationship between an administrative unit and other functional units in the state management system is shown in diagram 1.1.

Units in other sectors and fields that have coordination relationships in the process of performing tasks also greatly affect the operations of administrative units. All the interwoven coordination in the management of administrative units creates a network of links that are closely linked to each other in the operation of the state management apparatus in general. Therefore, in the scope of a specific administrative unit, the management apparatus must be established appropriately to ensure that the operations of the unit itself and the entire state management system in general take place smoothly. To meet and satisfy the horizontal and vertical relationships in the management system, the functional departments of the departments and offices in the administrative unit must be fully arranged, in accordance with the operational characteristics of the unit in relation to other units. The number of departments in the management apparatus depends on the characteristics, scale of operation and management characteristics of each unit, but according to the theory of management science, the organizational model of the management apparatus in administrative units



A career can be organized according to linear, functional or mixed models. The author argues that regardless of the model the unit is organized according to, it includes interrelated parts (Appendix 1.1).



Administrative and career unit

Managing unit

Financial institution

Local government

Treasury

Diagram 1.1: Relationship between the HCSN unit and other functional agencies

In this model, departments in a unit are under the direct direction of the department head and are under the general management of the unit head. Departments in a unit have a cooperative relationship with each other during the operation process. When the functions and tasks of administrative units are different, the organizational model of the management apparatus is also different and accordingly, the requirements for accounting information serving general management and financial management in particular are also different, so the accounting apparatus and the organization of accounting work must also be organized accordingly. On the other hand, an administrative unit always belongs to a specific industry management system and is subject to the general decentralization of the industry based on the characteristics of its operations, so the contents of the organization of the accounting apparatus such as personnel, organizational model and assignment of tasks at these units are also affected by the management hierarchy model and the position of the unit in the general management system of the industry.

1.1.4. Financial management in administrative units



As analyzed above, administrative units are established and operate on the basis of state budget funds not for profit purposes, but that does not mean that efficiency is not taken into account. On the contrary, in this non-profit field, the requirement for efficiency in the use of financial resources becomes especially important. “Administrative and public service unit finance is the collection and disbursement of money throughout the process of making and implementing the revenue and expenditure estimates of administrative and public service units” [37, p. 6], so according to the author, financial management in these units is essentially the organized and oriented impact of the management subject on the management object in the financial field to mobilize, allocate and use the state budget in a strict and effective manner to achieve the set goals such as creating a stable source of revenue, using state funds for the right purposes, managing and supervising the use of assets at the unit, etc., building regulations on revenue and expenditure management to regulate the use and distribution of state financial resources effectively. Like other management activities, financial management in administrative units also has similar characteristics, but because it is closely linked to the financial sector in administrative units, according to the author, it has some typical characteristics from the following perspectives:

From the perspective of management objects: Management objects are financial revenue and expenditure activities mainly associated with the state budget and other sources, to ensure the implementation of functions and tasks of administrative and non-profit units.

From the perspective of the management subject: The financial management subject in administrative units is the agencies and departments specializing in financial management. The tasks of these subjects are decentralized according to each management object, and at the same time receive the tasks assigned by the central and local levels.

From the perspective of management mechanism: Financial management mechanism is a combination of the general management mechanism of the State with a separate mechanism suitable for each type of administrative unit, each activity associated with the existence and development of each administrative unit such as: mechanism for creating funding sources, mechanism for distributing and using funding sources, mechanism for inspection and supervision. Financial management mechanism for



Administrative units will have a great influence on the construction of a legal framework system for documents, accounts, accounting books and appropriate accounting reports.

The operational goal of administrative units is to serve the common interest, the finance of administrative units is public finance, so financial management in administrative units must ensure the following basic requirements:

- Unify and strictly comply with current State policies and regimes: Through strict compliance with policies and regimes, the State clearly demonstrates unified and fair management of administrative units. This requirement requires that the legal framework system on documents, accounts and accounting books as well as accounting reports must be built in accordance with the State's financial and management policies and mechanisms, and at the same time be suitable for application at units on the basis of unity between units in the same field.

- Ensuring effectiveness: The effectiveness of financial management in administrative units brings significant economic and social benefits. From a social perspective, good financial management will lead to a series of positive effects in other management tasks, thanks to which not only the State but also the people can enjoy effective public services and quality, ensuring well the assigned political tasks. To ensure effectiveness in financial management, accounting organization must be implemented so that: Information provided on accounting objects must be complete and timely, on the other hand, there must be sufficient detailed information necessary to be able to determine the indicators for comparing effectiveness, from which managers can propose measures to manage and effectively use the state budget.

- Publicity and transparency: This is a very basic requirement for financial management in administrative units. Publicity and transparency here must be implemented right from the first stages of the process of establishing, implementing and settling the budget, and must be deployed from the grassroots unit to the higher management agencies. To do this, the accounting data provided must be clear, fully reflecting the contents according to the requirements of financial management. To do so, in each content of the accounting organization, it is necessary to clearly identify the management requirements of each subject, from which to build



The indicators on documents and accounting books must be appropriate and clear so that the information summarized and reflected on the accounting report must be clear and complete.

- Proper management decentralization: The process of management decentralization must follow an appropriate roadmap, must be carefully prepared, cautious, suitable to the specific situation and capacity of each administrative unit. This decentralization must create conditions to minimize overlaps in management work but still promote the autonomy and self-responsibility of administrative units and ensure the principles of unified management of the State, democratic centralism, publicity, transparency, ensuring the interests of the State, the rights and obligations of organizations and individuals according to the provisions of law.

To achieve the set goals in financial management, it is necessary to flexibly use management tools such as regulations, financial mechanisms, systems of standards, and norms in state budget revenue and expenditure specific to each industry and each field. These tools are flexibly used in all stages of financial management, including:

- Prepare and implement revenue and expenditure estimates for each source of funding in accordance with regulations and in accordance with the characteristics of each unit.

- Manage and use revenues (career revenues, fees and other revenues), capital and assets of the unit in accordance with current regulations.

- Manage spending according to budget and internal spending regulations of each unit.

- Establish and use funds according to current financial regulations.

According to the author, the above contents are clearly shown through the work steps in the budget management cycle at the units and are summarized in diagram 1.2:

Based on the functions and tasks assigned by competent authorities, the tasks of the planning year, and the current financial expenditure regime. Based on the results of career activities, the financial revenue and expenditure situation of the previous year, administrative and career units prepare revenue and expenditure estimates for the planning year.

Based on the State budget revenue and expenditure estimates assigned by competent authorities, the Ministry in charge (for central administrative units) and the local competent agency (for local administrative units) shall prepare an allocation plan and send it to the financial agency.

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