Information on accounting books and accounting documents to provide consistent information between budget spending units and budget management agencies.
In order to have a suitable information system to provide to managers, the financial reporting system in the administrative unit must be fully designed, in accordance with the requirements for providing information and the current regime, the financial reporting system must ensure a full range of reports to reflect the necessary information on the use of funds from the state budget and must also have full necessary indicators to be able to reflect information from the established accounting system. Only then will the accounting information provided be suitable and useful to users so that users have a basis for making timely and reasonable management decisions in different stages and conditions for each administrative unit. The information system provided by the financial reporting system is one of the important bases for evaluating the effectiveness of using the unit's budget and funds, and is an important legal basis for evaluating the results of implementing the revenue and expenditure estimates and the financial performance of the unit. Therefore, a well-organized financial reporting system will increase the value of information sources serving the financial management decision-making at the unit.
1.3.2.5. Organizing accounting inspection work in administrative and public service units.
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Organizing accounting inspection is one of the important contents of accounting organization. Accounting inspection is to review and monitor based on accounting documents, data in books, accounting reports on arising economic transactions, the correctness of recording, calculation, reflection, and the reasonableness of applied accounting methods.
Accounting audits will improve the efficiency of operations and financial management in administrative units. Through audits, violations of financial accounting policies and regulations can be detected and prevented. Through accounting audits, measures can be proposed to overcome shortcomings in management, especially financial management in administrative units.
Accounting inspection work in administrative units includes two contents:
One is the internal audit work of the accounting department.
Accounting inspection is a part of accounting, usually carried out by a group of accounting staff under the guidance and direction of the chief accountant. Each unit must organize internal accounting inspections to comprehensively inspect all stages of the accounting process, all contents of the accounting organization. The main contents of accounting inspections are to inspect the implementation of accounting methods, inspect accounting documents and records, inspect the preparation and submission of accounting reports, the organization and leadership of accounting, and must specifically inspect the main accounting operations of the unit. In the unit, the head and chief accountant of the unit are responsible for organizing internal accounting inspections, focusing on inspecting affiliated establishments. Although accounting itself has the function of self-inspection through recording and reflecting economic transactions arising through the inherent balance relationships of accounting objects, each unit needs to organize an accounting inspection department in the accounting apparatus structure to specialize in performing accounting inspection work within the unit. Internal inspection work within the unit includes: Pre-inspection, intra-inspection and post-inspection after performing accounting work.
Second , external inspection. This is the inspection work of the parent unit, superior unit, financial agencies or units assigned the responsibility of inspection. This work is often carried out periodically or irregularly when there are signs of abnormalities in financial management and accounting.
The main method of conducting accounting inspection is the reconciliation method: comparing data between documents, accounting books, accounting reports with each other, between data of the unit and other related units.
The order of conducting accounting audits in theory should start from accounting documents, then accounting books and finally accounting reports. But in practice, to ensure the effectiveness and timeliness of accounting audits, people often proceed from accounting reports, then accounting books and finally accounting documents.
To conduct systematic accounting inspections, units must annually develop an accounting inspection plan, which clearly states the departments, tasks to be inspected, scope and requirements to be inspected, time to conduct the inspection, and assign specific responsibilities for performing accounting inspections.
In short, to continuously improve and enhance the quality of accounting organization, units need to organize accounting inspections. To realize the effects of accounting inspections, heads of units need to have a correct understanding of the meaning of accounting inspections, thereby arranging and assigning personnel to perform inspections to ensure honesty and objectivity, contributing to bringing positive benefits to the financial and accounting management of the unit. To improve the quality of accounting inspections, it is necessary to have a consistent legal framework that clearly stipulates the requirements for content, time, and specific inspection methods associated with each specific accounting subject and with the entire accounting work in general.
Inspection and control must be present in all stages of the accounting organization and must be carried out synchronously with the organization of activities of the administrative unit, especially in the stages of the budget collection, expenditure and use of funds. It is necessary to arrange appropriate inspection and control work in terms of both the implementing personnel and the process, methods and forms of inspection. Only then will the effectiveness of financial management always coexist with the effectiveness of accounting work at each unit.
1.4. International experience in organizing accounting in public units in the field of Labor - Social Affairs and lessons for Vietnam.
In countries around the world, the organization of accounting in public units is generally influenced by the state general accounting model, the level of application of international public accounting standards and the accounting basis applied to public sector accounting in that country. This is reflected in the different content of accounting organization, first of all the organization of the accounting apparatus and then the organization of accounting work.
Currently, there are two main models of state accounting in the world: the centralized model and the decentralized model. In each model, different countries apply different accounting bases (Appendix 2.19) and the level of application of international public accounting standards is not the same. The organization of accounting in public units in the field of Labor - Social Affairs in countries around the world is determined by the characteristics of financial and budget management in each country combined with the level of application of international public accounting standards and the applied general accounting model, according to the author's research.
The organization of accounting in public units in the field of Labor - Social Affairs has specific features according to the following models:
In countries that apply the centralized state accounting model and apply international public accounting standards such as in France or the states of the US... In these countries, public units in the field of Labor - Social Affairs, like other fields, comply with financial and budget management regulations as well as regulations on accounting for revenue, expenditure and state budget settlement in the unified general accounting model: The budget is distributed by sector and managed at the central level according to the single treasury account model, accounting work follows the centralized state accounting model. For example, in France, there are no independent accounting units in state agencies and public service units. The accounting records of these units are the responsibility of public accountants under the state treasury system. Thus, public accountants in France both perform budget accounting and accounting for all State activities and record revenues, expenditures, and asset fluctuations in public sector units. Therefore, public units in the field of Labor - Social Affairs do not have a separate accounting apparatus; all work is the responsibility of public accountants under the State Treasury. Units only prepare budget estimates and send them to competent authorities. The funds of each unit do not go to the unit's own treasury account but are transferred to a separate code of the Labor - Social Affairs sector under the Government's only treasury account. The accounting system at these units is designed according to standards and complies with the provisions of the Law, for example: The financial reporting system is usually prepared including reports such as: Balance sheet, Report on operating results, Cash flow statement, Notes to financial statements
In countries that apply a decentralized state accounting model, such as Switzerland, where the state accounting model based on accrual accounting and international public accounting standards has been implemented since 2007, information on all items on the financial statements is based on the same recording principle and is recorded decentralized by administrative units using the budget. Budget-using units are managed on the basis of revenue and expenditure reports and
cash flow statement. In units in the field of Labor - Social Affairs, the work of the accounting organization is carried out as an independent unit. Or in South Africa, this country has implemented the application of the state general accounting model. Public units in the field of Labor - Social Affairs are decentralized in management according to the decentralization in the administrative apparatus including units at the central, provincial and local levels. The budget allocation process is undertaken by the Budget Department, the Internal Affairs Department under the Ministry of Treasury, and will be allocated to the Ministries and units under the central budget. This process is also carried out for units at the provincial and local levels respectively. Based on the assigned limit, the units are proactive and responsible for making payments through their bank accounts. According to the provisions of Section 32.1 of the Public Finance Management Law, within 30 days after the end of each month, the Ministry of Treasury must issue/report to the Government a report reflecting the actual revenue and expenditure of the National Revenue Fund. Budget-using units in general and public units in the field of Labor - Social Affairs in particular operate accounting regimes according to regulations, depending on the specific subject: units under the central government implement adjusted cash accounting, public units implement South Africa's recognized accounting standards and standards according to IPSAS. These units perform independent accounting, on their own systems, prepare reports according to the provisions of the standards and accounting principles prescribed by South Africa. In addition, these units must also prepare additional reports according to a unified form and send them to the General Accountant to summarize the national report.
After preparing reports according to the prescribed forms, the central units send them to the General Accountant to summarize the general report in the form of text and data files in Excel format. Thus, for the reporting information of the units, there are 2 types: (1) reports on the situation of the unit and (2) information according to the general form to summarize the national report for the General Accountant.
Through the practice in some countries around the world on the organization of accounting in the public sector in general and in units in the field of Labor - Social Affairs in particular, the following lessons can be drawn for Vietnam:
Firstly, the organization of accounting in the Labor - Social sector units is closely related to and directly affected by the operating state accounting model, so in order to organize accounting in these units effectively, it is necessary to build a general accounting model based on international public accounting standards that are suitable for the reality in Vietnam.
Second, the application of international public accounting standards or the issuance of national public accounting standards has many effects, especially in enhancing transparency in the Government's budget expenditure activities. Therefore, the application in Vietnam is necessary, this is also the basis for gradually perfecting the legal framework in the organization of accounting in administrative units of the Labor - Invalids and Social Affairs sector.
Third, the system of legal regulations on accounting vouchers, accounting accounts, accounting books and financial reports is flexibly regulated in the general legal framework (according to public accounting standards and the Law) and specifically applied depending on the practice at the grassroots unit.
Fourth, it is necessary to innovate the public financial management system appropriately, apply information technology in accounting and budget management at administrative units at all levels, and strengthen training and develop qualified human resources to meet the requirements of international integration.
Fifth, through international experience, to increase initiative in using financial resources and reduce the burden on the national budget, the granting of extensive financial autonomy to public service units needs to be implemented synchronously at all levels and sectors.
Thus, with lessons learned from the experiences of countries around the world and practical conditions in Vietnam, it is possible to develop specific orientations and measures in perfecting accounting in the public sector of Vietnam in general and from there, it can be applied to units in the Labor - Invalids and Social Affairs sector in particular.
Chapter 1 Conclusion
Chapter 1 of the thesis has outlined the basic theoretical issues of accounting organization in administrative units. Starting from studying the general issues of administrative units and financial management in administrative units, combined with studying the principles and bases of accounting organization, the author has focused on studying the contents of accounting organization with strengthening financial management in administrative units, including:
- Accounting organization: with this content, the author delves into the model of accounting organization for each level of different budgeting units on accounting labor organization and builds operating regulations for accounting apparatus in administrative units.
- Organizing accounting work is the second content that the author mentions very specifically in the chapter, including the following contents: organizing the accounting voucher system, organizing the accounting account system, organizing the accounting book system, organizing the financial reporting system and organizing accounting inspection work.
All the contents of accounting organization mentioned in the chapter are studied by the author from two perspectives: building a legal framework and applying it in units from different points of view. In particular, these contents are also considered from the perspectives when accounting becomes a type of service and when administrative units are in a state accounting model.
At the same time, in chapter 1, the thesis also clearly analyzes international experiences in organizing accounting in the field of Labor - Social Affairs and draws lessons for Vietnam.
Chapter 1 of the thesis also mentions the accounting bases and the influence on the organization of accounting in administrative units.
These basic theoretical contents are the basis for the study of the current situation in chapter 2.
CHAPTER 2
CURRENT STATUS OF ORGANIZATION OF ACCOUNTING IN ADMINISTRATIVE UNITS IN THE LABOR - WAR INVALIDS AND SOCIAL AFFAIRS SECTOR
2.1. Overview of administrative units and financial management at administrative units of the Labor - Invalids and Social Affairs sector
2.1.1. Characteristics of operations and management at administrative units of the Labor - Invalids and Social Affairs sector
The Ministry of Labor, War Invalids and Social Affairs is a Government agency, performing the function of state management in the fields of: employment, vocational training, labor, wages, social insurance, labor safety, meritorious people, social protection, child protection and care, gender equality, prevention and combat of social evils nationwide, state management of public services in the fields managed by the Ministry. The administrative units of the Labor, War Invalids and Social Affairs sector are established from specialized organizations of the Ministry of Labor, War Invalids and Social Affairs or from practical requirements of the sector. Although originating from different specific requirements, the administrative units of the Labor, War Invalids and Social Affairs sector are established with the primary purpose of bringing the guidance and instructions of the Ministry of Labor, War Invalids and Social Affairs closer to social life and performing other functions as prescribed.
To ensure the effective operation of administrative units of the Labor - Invalids and Social Affairs sector, fulfilling assigned functions and tasks, the management apparatus of the Labor - Invalids and Social Affairs sector must be organized reasonably to meet the needs of management and information provision. Through surveys at administrative units of the Labor - Invalids and Social Affairs sector according to the survey sample structure as in Appendix 2.1, survey sample, in-depth interviews in Appendix 2.2 and 2.3, according to the survey results in Appendix 2.4, the management apparatus of