Perfecting the accounting information system in Vietnamese public universities

Steinbart (2008) in two books of the same name “Accounting Information Systems” presented the most general issues about accounting information systems and how to organize accounting information systems in organizations [33], [46]. Accounting information systems have also been studied by many authors from specific perspectives on financial accounting and management accounting. Author Rushinek (1985) in the publication “Management Accounting Information System” studied how to build management accounting information systems in organizations [47]. Authors Bushman, Chen, Engel and Smith (2003) in the publication “Financial accounting information, organizational complexity and corporate governance systems” studied the influence of organizational structure and ownership on financial accounting information systems [34]. Authors Virginia, Eleni, Dimitrios, and Chrysola (2008) in the publication “The role of financial accounting information in strengthening corporate control mechanisms to alleviate corporate corruption” researched the relationship between financial accounting information, organizational control mechanisms and corruption issues [53].

The accounting information system in educational institutions has also been studied by authors from different aspects. The authors Spathis and Ananiadis (2004) in the publication “The accounting system and resource allocation reform in a public university” studied the reform of the accounting system in universities in Greece [48]. The authors Pettersen and Solstad (2007) in the publication “The role of accounting information in a reforming area: a study of higher education institutions” studied the use of accounting information by senior managers in universities [45]. The authors Jarra, Smith and Dolley (2007) in the publication “Perceptions of preparers and users to accounting change: a case study in an Australian university” studied the application of the activity-based costing model in universities in Australia [43].

In Vietnam, issues of accounting information systems have also been studied by a number of authors. Author Nguyen The Hung (2006) presented the basic contents of how to organize accounting information systems in organizations [13]. A number of theses have also studied accounting information systems from different perspectives.

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each other. Author Nguyen Thanh Qui (2004) researched "building an accounting information system to serve the management of postal and telecommunications businesses". In this thesis, the author mainly researched the management accounting information system and its application to postal and telecommunications businesses [17]. Author Nguyen Thi Minh Huong (2004) discussed "accounting organization in universities under the Ministry of Education and Training" [12]. In this thesis, the author mainly researched the content of accounting organization in compliance with the regulations of the accounting regime in universities, however, the author has not researched how to build an accounting information system in public universities from the perspective of providing information to help universities fulfill their responsibilities and financial autonomy in the new conditions.

Thus, it can be said that in Vietnam, there has not been any research on the accounting information system in public universities in the context of financial management mechanism innovation towards autonomy and self-responsibility. Therefore, the issues that the thesis needs to focus on are perfecting the accounting information system to enhance financial autonomy in public universities in Vietnam, based on research on theoretical models of accounting information systems and experience in building accounting information systems in universities around the world.

3. RESEARCH OBJECTIVES

The research questions posed for the topic include:

i. What are the basic components of the accounting information system in every organization?

ii. What factors does the organization and operation of the accounting information system depend on?

iii. What are the existing problems of accounting information systems in public universities in Vietnam?

iv. What are the solutions to improve the accounting information system in Vietnamese public universities?

Answering the above research questions will help the topic achieve the following objectives:

 Summarize and develop theoretical issues on accounting information systems in organizations.

 Assess the current status of accounting information systems in public universities in Vietnam.

 Propose reasonable solutions to improve the accounting information system to enhance financial autonomy in Vietnamese public universities.

4. OBJECTS AND SCOPE OF RESEARCH

4.1. Research subjects

To achieve the research objectives, the thesis will study the following issues:

- Basic principles of accounting information systems in units.

- The reality of accounting information systems in organizations in some countries around the world and the possibility of applying the experiences of these countries in Vietnam.

- Current status of accounting information systems in public universities in Vietnam.

- Solutions to improve accounting information systems in public universities in Vietnam.

4.2. Scope of research

In the trend of diversifying university activities as well as differentiating universities, the thesis will study large-scale national key universities and groups of medium and small-scale local universities to carry out the research objectives of the topic.

5. RESEARCH METHODS

Qualitative analysis method will be used to analyze the reality of accounting information system in public universities in Vietnam. The analysis of the thesis is based on two basic data sources:

 Secondary data sources:

The thesis studies government documents regulating the operations of public universities, accounting regimes applied in public universities and published research works by domestic and international authors on issues related to the thesis topic.

 Primary data sources:

- The author sent a survey (Appendix 01) to survey the current status of accounting information systems to 98 public universities, and 33 schools responded (33.7%). The data collection process was carried out as follows:

o Step 1: Randomly select 2/3 of the public universities based on the list of public universities announced by the Ministry of Education and Training to send the survey form.

o Step 2 : Develop a survey. The survey includes 65 questions covering issues related to the current status of accounting information systems in public universities in Vietnam. The questions are designed in two forms: multiple-choice questions and open-ended questions.

o Step 3: Send the survey form directly to each school and collect the survey results. The subject of sending the survey form is the chief accountant (or person in charge of accounting) of the schools.

o Step 4: Synthesize information collected from the survey. Data collected from the survey results are synthesized, classified and combined with direct survey data at 3 typical universities to assess the current status of accounting information systems in public universities in Vietnam.

- The author conducted a direct survey of the current status of accounting information systems at three schools in the first group of five schools to implement financial autonomy: Open University (the first school assigned to implement 100% financial autonomy), National Economics University (representing universities)

public universities in the North) and Ho Chi Minh City University of Economics (representing public universities in the South).

6. CONTRIBUTIONS OF THE THESIS

- In terms of theory, the thesis systematizes and develops theories on accounting information systems in organizations.

- In terms of practical research, the thesis analyzes the current status of accounting information systems in public universities in Vietnam.

- Regarding the applicability of the theoretical model to practice, the thesis proposes solutions to perfect the accounting information system suitable to the operational characteristics, rights and responsibilities of financial autonomy for public universities in Vietnam.

7. THESIS STRUCTURE

In addition to the introduction and conclusion, the thesis is structured into three chapters:

Chapter 1: Theoretical basis of accounting information system in revenue-generating public service units

Chapter 2: Current status of accounting information systems in public universities in Vietnam

Chapter 3: Directions and solutions to perfect the accounting information system in public universities in Vietnam

CHAPTER 1

THEORETICAL BASIS OF ACCOUNTING INFORMATION SYSTEM IN PROFIT-BEARING BUSINESS UNITS

1.1. ROLE AND REQUIREMENTS OF ACCOUNTING INFORMATION SYSTEM IN PROFIT-BEARING BUSINESS UNITS

1.1.1. Concept of accounting information system

From a systems perspective, each organization is a system consisting of interacting parts to achieve the organization's goals. Each organization (large system) often includes many small systems designed to achieve the organization's goals at the highest level. These small systems also set their own goals based on the organization's overall goals. The accounting information system is one of the organization's small systems. "The accounting information system is a system that collects, records, stores and processes data on economic transactions in each organization to provide information to decision makers" [46].

A well-designed accounting system is a “relatively closed” system. A “closed” system is a system that is isolated from its environment and has no outside interference, the environment has no influence on the processes performed in the system, while a “relatively closed” system is a system that interacts with its environment in a predetermined way and controls the influence of the environment on its processes.[33, 68]. The accounting system processes input data into output information products and uses internal control processes to limit the impact of the environment on the organization (Diagram 1.1). The input of the accounting system is economic events (economic transactions). It includes activities that provide goods and services, generate revenue for the organization and activities that incur costs for the organization. The processes in the accounting system record economic transactions in accounting books and summarize them in various types of reports. The output of the accounting system is accounting documents and reports (financial statements and management accounting reports).

Input

 Economic operations

Output

Progress

 Copy

 Record

 Adjust

 Control

 Accounting report

 Accounting documents

Diagram 1.1. Accounting system

1.1.2. Concept and characteristics of revenue-generating public service units

A public service unit is an agency established by the State to carry out certain specialized activities. The basic function of public service units is to provide public services in areas such as education, health, culture, sports, television, research, etc.

In terms of operating costs, public service units include two basic types: non-revenue public service units and revenue public service units. Non-revenue public service units are 100% guaranteed by the state budget for operating costs, allocated according to approved estimates. Revenue public service units are public service units with direct revenue from public service users. These units can self-guarantee part or all of their regular operating costs.

Thus, it can be generalized that a revenue-generating public service unit is an agency established by the State to provide public services and has direct revenue from the users of those public services.

Profitable public service units have the following basic characteristics:

 Revenue-generating public service units operate within the legal framework regulating their professions and professional fields and are subject to regulation by superior management agencies.

 Revenue-generating public service units use public assets as an input factor to create public products and services for users. The depreciation of these assets will constitute the cost of public products and services provided.

 Revenue-generating public service units operate not for profit. The existence of revenue-generating public service units is to demonstrate the role of the state in maintaining and supporting the socio-economic development process. With products and services in health, education, culture, etc., revenue-generating public service units bring common and long-term benefits to society, having direct and indirect impacts on the country's development process.

1.1.3. The role of accounting information systems in revenue-generating public service units

Accounting information systems exist in all organizations, whether they are business units (private companies, partnerships, joint stock companies, etc.) or non-profit organizations (administrative units, public service units). Although accounting systems in different units have different levels of complexity, they are similar in three aspects: each system has a similar structure (human resources and technical means), has a similar process (uses accounting methods), and has a similar purpose (provides information).

Accounting provides information to both external and internal parties to make decisions related to the organization. The parties using accounting information outside the organization include investors, credit providers, tax authorities, financial analysts, state management agencies, etc. For revenue-generating public service units, the main external parties using accounting information are state management agencies. The parties using accounting information inside the organization include managers at all levels. From the perspective of information users, the accounting information system in each organization usually includes two sub-systems: the financial accounting system and the management accounting system. The financial accounting system aims to record, process and report on economic transactions that occurred in the past with the product being financial reports that comply with accounting standards and regimes. The management accounting system aims to collect, process and provide information to managers to perform the functions of planning, implementing plans and controlling the organization's operations.

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