Current Status of Organizations Applying Information Technology in Accounting

- Report on final settlement of operating expenses (form No. B01/BCQT) (Appendix 2.11)

- Detailed report on expenditure from the State budget and deductible and retained fees (Appendix F01-01/BCQT) (Appendix 2.12)

- Explanation of the final settlement report (form No. B03/BCQT) (Appendix 2.13)

The accounting software applied at the unit has allowed the preparation of most financial reports in accordance with the provisions of the current accounting regime. The preparation of these reports only requires printing immediately after completing the processing of adjusted and transferred data.

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Financial reports must be prepared in accordance with the prescribed form, fully reflecting the prescribed indicators, must be prepared on time, submitted on time and with complete reports to each recipient.

The figures in the financial statements must be accurate, honest, objective and must be compiled from the figures in the accounting books.

Specifically, the financial reporting system at the Hospital is prepared and submitted as follows:

Prepare and submit quarterly and annual financial reports and submit final settlement reports to Hanoi Department of Health and Tax authorities to coordinate inspection, comparison and adjustment of accounting data related to the unit's operations.

- Reporting period:

Financial reporting period: The Hospital's financial statements are prepared at the end of the annual accounting period.

Period for preparing final settlement report: Final settlement report prepared according to fiscal year is the financial report of the following accounting year after being adjusted, amended and supplemented during the final settlement adjustment period according to the provisions of law.

- Deadline for submission of report:

Deadline for submitting annual reports: Hospitals must submit financial reports and settlement reports to the Department of Health and Tax authorities no later than the end of March of the following year.

In fact, the unit is currently only focusing on preparing financial statements.

according to the requirements of the parent unit. The information provided on the current accounting reporting system of the unit includes two types of information: Information in the field of financial accounting such as assets, liabilities, income, expenses, etc.; Information in the field of management accounting such as comparison between implementation and estimates. However, the information provided at the unit is mainly for superior managers and not for management purposes at the unit, not going into detail about explaining and analyzing the situation of using funds, the situation of revenue and expenditure of the unit.

With the current situation where the state is gradually giving autonomy to hospitals, the requirements for unit reports not only require quality but also quantity to increase to serve the budget settlement and financial reporting of the unit to provide necessary information for the unit's administrators.

In addition, the internal reporting system has not been focused on and has not really met the management requirements of the unit. Although the revenue and expenditure from the unit's sources have been summarized, in-depth analysis of each type of medical service has not been carried out. Moreover, the accountant's understanding of these services is very limited, so evaluating its effectiveness is extremely difficult.

2.3.6. Current status of accounting inspection organization

Accounting inspection is one of the most important tools, ensuring that accounting work in the Hospital is in order, properly implementing the state's economic and financial policies and regimes through accurate and objective control and supervision activities. Timely detecting and preventing limitations and shortcomings in accounting organization, financial management, and combating fraudulent acts that violate financial and accounting regimes.

Based on the subjects participating in accounting inspections, there are currently two types of inspections: Internal inspections and inspections by competent authorities (City Department of Health, Audit, Inspectorate,...)

Internal audit : The hospital has not yet organized a separate accounting audit department and has not established an internal audit department. The accounting audit is mainly

performed by the Chief Accountant. Accounting work usually focuses on the following contents:

One is: Checking the implementation of recording and reflecting on accounting documents, detailed accounting books, general accounting books and financial reports to ensure the accounting regime; regime and policy on asset management and funding sources at the unit.

Second: Check and compare between general accounting and detailed accounting in the process of synthesizing accounting data and information. In each part of the work, the accountant directly checks the accounting documents before performing the next steps of the accounting document circulation process, then checks the detailed accounting entries under his/her management.

Third: Check the quality and effectiveness of the accounting organization, the relationship between the Finance and Accounting Department and other departments, faculties and divisions in the unit.

Inspection by competent authorities: The accounting inspection work at the hospital is also subject to inspection by the competent authority - the Department of Health, the tax authority, and the State Audit Office. The inspection content mainly checks compliance with the provisions of the law on financial accounting such as compliance with the Law, standards, accounting regimes and other legal provisions related to accounting. After each accounting year ends, implementing the provisions of Circular No. 107/2017/TT-BTC dated December 25, 2017 of the Ministry of Finance on regulations on reviewing, appraising, notifying and synthesizing annual financial statements, the Department of Health will establish a team to review annual financial statements to go directly to the unit to inspect the financial implementation and review annual financial statements. (Appendix 2.14).

Regulations on public service units being allowed to hire independent auditors and establish internal audit departments for inspection and control have been mentioned in the State Audit Law and have come into effect but have not been implemented by the Hospital because the legal value of independent audit results is often of little value to State inspection and audit agencies and the costs are expensive.

2.3.7. Current status of information technology application in accounting

In 2006, Hanoi Dermatology Hospital started using MISA accounting software in its accounting organization.

In 2007, we started applying hospital management software that integrates many unified management subsystems such as financial management, operational management, planning, human resource management, pharmaceutical management, etc.

MISA accounting software being applied at the Hospital ensures compliance with accounting software standards and conditions.

The application of IT in general management and financial accounting management has a strong effect in improving the operational capacity of units. Managers can grasp information quickly, accurately, at any time, avoid bureaucracy, immediately adjust errors and adjust activities in a timely manner. Through data and information, managers can make appropriate plans and help the implementation of plans quickly. In addition, the application of IT also helps to simplify administrative procedures, eliminate intermediate activities, create conditions for medical examination and treatment services to be performed quickly and conveniently, while increasing the quality of information of units as well as unifying data for industry management activities.

The application of information technology helps reduce the time spent on paper records, computers have helped reduce writing and tightly manage records and documents; patients coming here are also more secure and less tired because the procedures are no longer as long and complicated as before. For example: The hospital is using hospital management software, all data about drugs (what type, current quantity at the hospital, unit price...) are saved on the management software, so it avoids unsafe and unreasonable prescriptions... In addition, financial accounting management is also tighter, avoiding loss of revenue or uncontrollable situations.

However, the hospital is currently using Misa mimosa software in parallel, which specializes in accounting, and hospital management software to communicate.

communication between medical examination and treatment, hospital fee collection, prescription and electronic invoice issuance. Using two software at the same time will lead to a lack of connection between the sections. Right from the beginning of medical examination and treatment, the hospital fee collection accountant will enter data on the hospital management software to print the receipt, then at the end of the day print the report to transfer to the cash accounting. At this time, the cash accounting will have to compare the report with the total number of receipts and the amount collected with the cashier before entering another hospital fee receipt.

Patients coming for examination will be assigned by the doctor to perform services (if any) and prescribed medication on the hospital management software and electronic value-added invoices will be automatically issued after synthesizing all the services that the patient has used. Due to the characteristics of the hospital, a very large number of value-added invoices are generated every day, however, the hospital management software is not yet connected to the misa accounting software. Every day, the VAT accountant must print a list of collected money with tax separated from the hospital management software for comparison and accounting on the misa accounting software. In addition, both of the above software have not yet integrated the VAT list according to the provisions of Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance on guiding the implementation of a number of articles of the Law on Tax Administration. Output VAT invoices are automatically issued on the hospital management software, but the accounting of revenue and output VAT is performed on the Misa accounting software.

The hospital is a special unit with supplies and goods mainly being chemicals, consumables and drugs. Due to the decentralized management mechanism, the Pharmacy Department is assigned the task of managing the input of these supplies and goods. The Pharmacy Department staff will be the ones to enter the details of each input invoice on the hospital management software to facilitate the doctor's prescription. The Pharmacy Department will then transfer the original VAT invoice to the hospital accounting department. Here, the goods and materials accountant will once again summarize and account for it on the Misa accounting account. At the end of the month, the goods and materials accountant will compare and contrast the two software and request the Pharmacy Department to correct the import form if there are any errors. The lack of connectivity between the two software

as it is now causing some difficulties in the work of accountants.

as well as in the work of managers.

2.4. Evaluation of the current status of accounting organization at Hanoi Dermatology Hospital

2.4.1. Results achieved

In recent years, along with the innovation of financial regimes as well as socio-economic policies, the accounting regime for public service units in general and public hospitals in particular has undergone many changes step by step in line with the general innovation process of society. Although many legal documents are still very new and even not synchronized, with its efforts to overcome them along with timely guidance from the Ministry of Finance, the Ministry of Health and a number of other functional agencies, Hanoi Dermatology Hospital has gradually implemented the new accounting and financial regime effectively, becoming an important stepping stone for the good implementation of professional functions and tasks assigned by the State.

Previously, the work of the hospital Board of Directors was only concerned with managing professional work. Now, when given autonomy in terms of organization, staffing, and finance, the hospital Board of Directors must be responsible for generating revenue for the unit, enhancing responsibility for asset management, and harmoniously resolving the issue of income distribution to improve the lives of staff and workers...

Accordingly, the responsibility of the Finance and Accounting Department has also been raised to meet the requirements of being an advisory department for the hospital's Board of Directors. Since applying the new financial management mechanism according to Decree 60/2021/ND-CP dated June 21, 2021 of the Government, the revenue structure at Hanoi Dermatology Hospital has changed significantly towards enhancing the autonomy of units instead of waiting and depending on the State budget.

In addition, the Hospital has gradually built up the awareness of saving, using funds effectively, and fighting against embezzlement and waste. The Hospital's internal spending regulations have been issued, and many positive solutions have been applied to save unnecessary expenses.

The transition to the new financial management mechanism further demonstrates the importance of organizing accounting work at Hanoi Dermatology Hospital. The hospital has based on the scale, characteristics of operations and management requirements to choose a suitable organizational model of the accounting apparatus, comprehensively implementing the new accounting regime in all accounting departments, along with the strong application of information technology in organizing accounting work. The hospital's financial accounting department has gradually adapted to the new financial management mechanism. The departments in the department have initially operated smoothly, gradually adapting to the high intensity and dynamism brought by the new mechanism.

* About accounting organization

The organization of the accounting department at Hanoi Dermatology Hospital is generally uniform and has a clear division of specialized tasks: Cash accounting, payment; Revenue accounting; Expenditure accounting; Accounting for payment of health insurance medical expenses... Dividing into separate accounting sections like this has helped accountants avoid overlap, each person is more autonomous in their accounting section and is responsible for the assigned accounting section. When needing data, the chief accountant or general accountant can immediately ask the accountant in the corresponding accounting section, avoiding overlap and duplication. Meeting the needs of periodic reporting and monitoring the activities of the leaders of Hanoi Dermatology Hospital.

In addition, the application of the centralized accounting model by Hanoi Dermatology Hospital facilitates the direct inspection and control of arising economic transactions and the decentralization of economic, financial management and internal economic accounting. The inspection and direction of economic activities in affiliated units and departments are quick and timely.

* About the accounting voucher system

The hospital has based on the general regulations on the system of documents applicable to public service units of the Accounting Law and the current accounting regime to organize the application of the accounting document system and perform initial recording of economic transactions arising in accordance with the specific characteristics of its unit. In addition, in

During the operation, the Hospital has added necessary accounting documents to record arising transactions.

* About the account system

The hospital has proactively researched and applied a fairly reasonable accounting system and complied with the accounting regime. The accounting accounts have fully met the requirements for management and expenditure control while satisfying the requirements for management and use of the unit's funds. In addition, the hospital has activated the opening of level 2 and level 3 accounting accounts to account for detailed revenues and expenditures in accordance with the conditions, characteristics and management requirements of its unit.

* About the accounting system

The hospital has applied the accounting system in the form of Bookkeeping vouchers suitable to the characteristics of the unit. Thereby meeting the requirements for systematizing accounting information from accounting vouchers reflected according to each accounting object, according to each accounting voucher reflected according to each accounting object, according to each financial economic expenditure to promptly serve management and contribute to promoting the effective operation of the unit. The assignment of keeping and recording accounting books is performed by accountants according to each assigned accounting task. The hospital has opened a relatively complete accounting books for accounting, meeting the needs of preparing financial statements.

Using accounting software in accounting work at Hanoi Dermatology Hospital has greatly reduced the work of recording accounting books, saving time, saving human resources, and achieving high accuracy because the amount of work required to record accounting books is very large.

* About the reporting system

All financial reports and settlement reports are fully prepared by the Hospital, in accordance with the form prescribed in Circular 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance.

* About inspection work

Self-auditing of accounting is carried out regularly every year.