MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE ACADEMY OF FINANCE  DO NGOC TRAM IMPROVING ACCOUNTING SYSTEM IN VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES Subject Code : : Accounting 9.34.03.01 SUMMARY OF PhD DISSERTATION HANOI - 2019 THIS DISSERTATION IS IMPLEMENTED IN ACADEMY OF FINANCE SCIENCE INSTRUCTORS: Prof Ngo The Chi, PhD Assoc Prof.Doan Van Anh, PhD Appraiser 1: Appraiser 2: Appraiser 3: This dissertation is defended in Examination Committee in Academy of Finance At: on 2019 Be referred to: - National Library of Vietnam - Library of Academy of Finance LIST OF SCIENCE WORKS WERE PRESENTED BY AUTHOR Do Ngoc Tram (2011), "Promoting the role of accounting information in the process of socialization in public services", Journal of accounting and auditing, No 10/2011 (97), p 32-34 Do Ngoc Tram (2011), "To make public sector accounting information meet the requirements of the "Open and international integration" process, Financial Inspection Magazine , No 110 (8-2011), p 19-20 (coauthor) Do Ngoc Tram (2017), "Discussing the accounting regime of administrative and non-business units using the state budget", Financial Inspection Magazine, No 175 + 176 (1 + 2-2017), p 82-83 Do Ngoc Tram (2017), "Accounting of state budget in the context of financial autonomy and international accounting integration - Application for Vietnamese public vocational training colleges "Research Journal in finance and accounting, No 02/2017 (163), p 25-29 Do Ngoc Tram (2017), "Financial autonomy, convergence of international accounting and requirements of improving the quality of information on the financial reporting system - Application for Vietnamese public vocational training colleges” Journal of Financial and Accounting Studies, No 03/2017 (164), p 38-41 INTRODUCTION 1/ REASON FOR CHOOSING RESEARCH TOPIC Currently, like many Vietnamese public service organizations, accounting system of public vocational training colleges in Vietnam is facing many challenges when the Government changes its management method from input control to output control, attaching the business results to the assigned management head’s responsibilities, new financial management mechanisms in accordance with increasing autonomy and the trend of integration and convergence with international public accounting sector The application of one accounting according to any other accounting system must ensures that the working conditions of the unit are appropriate, providing information to both the government management and all other related parties such as investors, students, families, and society for the common purpose of effective management and investment decisions This becomes critical challenges for accountants of Vietnamese public professional high schools Improving accounting system in Vietnamese public vocational training colleges on the aspect of applying appropriate accounting facilities when determining the accounting objects as well as when receiving and processing supplies accounting information made the author to choose the research topic "Improving accounting system in Vietnamese public vocational training colleges " / RESEARCH OVERVIEW 2.1 / Summary of previous research projects in the same field Research on accounting in public service units - accounting basis Research on accounting in public service units - an experience aspect when applying international public accounting standards Research on public service unit accounting - accounting information aspect and accounting information analysis Some researches on public service unit accounting - organizational aspects of accounting work, accounting use as financial management tools for public service units, etc From the author's review, it is assumed that the researching problems can be inherited as well as the content of the author can be continued to study 2.2 / Gaps of the previous studies Currently, Vietnam lacks empirical studies on the content of financial accounting work on the accounting basis, helps to affirming the accounting base being applied and recommending future improvements to the establishment of the accounting work in accounting in Vietnamese public service units At Vietnamese public vocational training colleges (VPVTC), accountants comply with a common administrative and non-business accounting policy framework issued by the state, on the one hand, failing to fully reflect all activities according to the characteristics of short-term and real vocational training, implemented by work orders from enterprises, sell the accounting services, etc , on the other hand, it has not yet served the demand for accounting information of non-state objects (enterprises link to training, business associates, financial institutions, for debtors, etc.) In a constant movement socio-economic environment with many challenges from international integration trends, state policies must always be changed to fit in Accounting for public vocational training colleges should not only focus on complying policies and information provision for state management but also need to master and actively apply appropriate accounting facilities to accountants to reflect the broader and more diversified financial and economic activities, meet the needs of accurate and effective accounting information in order to serve users inside and outside the colleges There are still gaps of in-depth research on the above mentioned content / RESEARCH OBJECTIVES The general purpose: to systemize the theoretical issues of accounting in public non-profit units on the basis of accounting, using the results of empirical research at Vietnamese public vocational training colleges on the one hand to strengthen the theoretical system on the accounting basis of Vietnamese public service units, on the other hand, propose solutions to improve accounting at Vietnamese public vocational training colleges according to appropriate accounting bases in the near future Detail objectives: (i) Study the factors that govern accounting of public non-business units; Summarize the fundamental theoretical issues about accounting of public non-profit units based on accumulated accounting and cash accounting facilities; Learn the patterns of public service unit accounting content that follow international accepted accounting facilities from which to draw experience for Vietnam (ii) Research on actual survey of accounting contents at VPVTC; Identify the current accounting basis as well as evaluate, analyze the advantages and disadvantages in financial accounting when following this accounting basis at VPVTC (ii) Proposing solutions to complete the accounting contents at VPVTC on the perspective of applying accounting facilities / RESEARCH QUESTIONS The tasks of this thesis is to study, analyze and evaluate theory and practice to answer the following research questions: Question : What is the basic theory of accounting in public non-profit units based on the accounting basis? Question 2: How changes in accounting base apply to accounting of public service units according to international experience? Question : What is the current status of accounting contents of basic economic activities in VPVTC in the aspect of accounting application taking place? Question : Analyzing and evaluating accounting contents at VPVTC on aspects of accounting application Question : What are the solutions to complete accounting content at VPVTC according to appropriate accounting basis? / SUBJECTS AND SCOPE OF RESEARCH / Research object The thesis focuses on studying accounting contents on the basis of applying accounting facilities in VPVTC under conditions governed by the following factors: financial autonomy mechanism; the process of educational socialization to attract non-state financial investment sources; accounting information requirements must ensure quality for internal management and aim to serve the process of consolidating the national financial statements in the future; requires standardization of accounting in accordance with international public accounting standards to meet the requirements of economic integration and globalization 5.2 / Scope of research: In terms of space: independent Vietnamese public high schools are managed by the Department of Education and Training of provinces or cities (from 2016 onwards) and the Department of Labor, Invalids and Social Affairs (from then on) 2016) In terms of time: the last years were divided into two periods with the 31/12/2017 mark In terms of content: focus on research and financial accounting / RESEARCH PROGRAMS AND METHODS The research process is performed by the author in the following steps: Forming research ideas; Research materials and research reviews; In-depth interviews; Designing questionnaires and selecting samples; Send questionnaires; Summary of survey forms; Evaluation from the survey results; Verifying results through case studies; Research conclusions The author used SPSS20 software to support information processing and summarize survey results with each content in accounting work at units The author performs descriptive statistical steps with questions in each content of the survey In order to verify the investigation results, contributing to affirm the effectiveness of the questionnaire, the authors performed a case study of financial accounting in a few units in the survey sample medicate herself / RESEARCH MEANING In theory: (i) Having generalized the characteristics of public non-profit units, determining the elements of financial accounting for public non-profit units (ii) Having generalized the content of financial accounting of public non-profit units on the basis of accounting, interpreting suitable accounting bases for financial accounting in these units according to the level of funding dependence state budget and sources controlled by the state (iii) Learning the international accepted mold rules for public service delivery units from which to draw experience for Vietnam In practice: (i) Reviewing and evaluating the advantages and disadvantages of financial accounting at the current secondary schools The assessment is set in the context that the factors that govern accounting work in high school are changing (ii) Proposing solutions to improve the financial accounting contents at VPVTC towards the quality of accounting information provided Solutions to focus on perfecting the financial accounting of VPVTC in the direction of separating financial accounting into two systems for processing and providing information from the same input data sources, including financial accounting based on accrued basis and the cash basis (iii) Proposing a solution to complete the legal framework of accounting policies for public service units or for research and training / STRUCTURE OF THE THESIS Chapter 1: Basic theory of accounting in public non-profit units Chapter 2: Current situation of accounting in Vietnamese public vocational training colleges Chapter 3: Solutions to complete accounting in Vietnamese public vocational training colleges CHAPTER BASIC THEORY OF ACCOUNTING IN PUBLIC NON-PROFIT UNITS 1.1 GENERAL CHARACTERISTICS OF PUBLIC NON-PROFIT UNITS MAIN FACTORS AFFECTED TO ACCOUNTING 1.1.1 Operational characteristics and classification of public non-profit units Public non-profit units are organizations established by competent agencies of the State, political organizations and socio-political organizations under the provisions of law, it has legal status and provide public services, serving state management Financial resources to ensure the operation is funded by the state budget or originated from the budget The activities of the unit to serve the society, therefore, the expenditure is not directly reimbursed by economic benefits, but by social efficiency in order to achieve macroeconomic objectives The mode of operation of public non-business units is very diverse, but all have the following basic characteristics: The purpose of non-profit operation is mainly to serve the community's benefits; Creating products that bring common benefits with long-term sustainability for society; Activities associated with and dominated by socioeconomic development programs of the State 1.1.2 Financial resources and financial management in public service units 1.1.2.1 Financial resources of public service units: Financial resources from the state budget Financial resources outside the state budget 1.1.2.2 Management of mobilizing financial resources of public service units: Managing financial resources from the state budget Managing nonstate budget resources 1.1.2.3 Managing and using financial resources of public non-business units 1.1.3 Regulatory regulations on accounting and accounting infrastructure of public non-business units * Regulations on accounting: In order to meet the requirements of economic and financial management, strengthen management of national budget spending control, public asset management, improve the quality of accounting and management efficiency in the units public and accounting enterprises in public non-business units must ensure the consistency between accounting and management requirements of the state in general and of units in particular; ensure consistency in the content and method of accounting with the current accounting regimes of the State; ensure conformity with the characteristics of the unit * Accounting infrastructure:Human resources to accounting work Control accounting and pressure on accounting information Other factors such as accounting, professional occupations, accounting and vocational education, management culture, etc 1.1.4 Effect of general characteristics of public non-business units on the application of accounting basis Factors related to operational characteristics, operation management regime, financial policies of public non-profit units are factors affecting the selection of accounting basis of these units 1.2 ROLE, DUTIES AND REQUIREMENTS OF PUBLIC PAYMENT FINANCIAL UNITS 1.2.1 The role of financial accounting public non-business units Accounting of public non-profit units is the accounting of the observance of the state budget at public non- profit units, this is the organization of data information system to manage and control funding sources, the situation of using decisions budgeting, figuring out the management and use of public supplies and assets, the situation of observing the revenue-expenditure estimates and implementing the criteria and norms of revenues and expenditures at the units An accounting system at the completed public service unit will promote the following roles: Serving the macro management of the State; Serving micro management of unit operators; Supporting for other management tools 1.2.2 Duties and requirements of financial accounting of public entities Accounting of public non-profit units must carry out the following main tasks: Recording and reflecting accurately and promptly on assets, materials, capital, the process of forming funding and using funding sources, situation and results of production and business activities at the units To inspect and control the situation of observing the revenue and expenditure estimates; To prepare and submit financial statements on time 1.3 CONTENT OF FINANCIAL ACCOUNTING IN PUBLIC NONPROFIT UNITS 1.3.1 Accounting basis of financial accounting in public non-business units Financial accounting on a cash basis based on the principle of recording all changes in the budget of an accounting unit and eliminating all other fluctuations Cash basis state accounting allows to track the movement of cash flows into expenditures of the budget (including the state budget) The main drawback of cash-based accounting is that it does not identify all the situation of capital and assets Accumulated accounting is the committed accounting ("commitment" associated with all real obligations and benefits arising in the process of conducting transactions and operations of the accounting unit) For the state, full-blown accounting records all transactions when there are legal signs of the state 's financial rights and obligations, regardless of whether or not the money has been received or paid for Modify cash basis or modify accrual basis is the combination of two bases is cash and accrual Here, the accrual basis is applied when recording long term objects are less likely to change in the fiscal year (fixed assets, long-term long term investments, ) and lead to information on the Balance Sheet, the cash basis is used to record short-term objects (monthly interest expenses, monthly business expenses, monthly sales revenue, ) and provide the information of Income statement In recognition of revenue and cost, it is always associated with each type of revenue generation and expenditure activities 1.3.2 Content of financial accounting in public non-profit units 1.3.2.1 Financial accounting of public non-profit units based on cash basis 1.3.2.1.1 Identification - record the measurement of the accounting object a) Determination of accounting objects: Assets include: Money, Non-cash assets Source of asset formation: loans, owners' equity The objects are income / income and expenses / expenses b) Recording and measuring accounting objects: The accounting assumption "going concern" governs the principle of measurement and recognizes the accounting objects If the assumption of "going concern" exists, the value of the established accounting object is determined by the cost principle 1.3.2.1.2 Receiving - processing - providing information of accounting objects a) Receive initial information from accounting documents Each object has a corresponding type of voucher recognizing an increase or decrease of the object 11 2.1.3 Factors controlling financial accounting of public vocational training colleges in Vietnam 2.1.3.1 Operation characteristics The Vietnamese vocational training colleges operates according to the regulations of the vocational training colleges charter (Circular No 54/2011 / the Ministry of Education and Training dated November 15, 2011, effective from December 31, 2011 and the Circular No 47/2016 / Ministry of Labor, Invalids and Social Affairs takes effect from February 15, 2017) 2.1.3.2 Financial management process Estimating revenue and expenditure - Implementing estimates - Settlement 2.1.3.3 Financial and economic activities in Vietnamese vocational training colleges - the factor that governs the selection of accounting basis In order to be compatible with the theoretical study, the practical approach can divide the operation of VPVTC into three areas: financial activities affect the capital structure; investment activities affect the structure of long-term assets; operates other than the above two activities All three areas of this work share the financial nature of creating resources and using resources The recognition of financial and economic activities in the secondary schools will affect the content of financial accounting on a cash basis or on the basis of accumulation in the colleges that the author studied and presented in the following section 2.1.3.4 Organizational characteristics of management apparatus Organization of the VPVTC is based on the charter of the VPVTC, including: Director, the specialized training departments, the faculties that not have specialized training and the subordinate departments, functional departments, training facilities research, socio-political organizations 2.1.3.5 Characteristics of accounting apparatus The Finance - Accounting Department is one of the functional departments, advising the Principal in the field of financial management, assets, capital sources, funding sources, internal and external funds in accordance with State regulations; directly carry out accounting work to provide economic and financial information to serve inside and outside the VPVTC 2.1.3.6 Accounting legal framework The system of legal documents is a basis for VPVTC to implement the current accounting work Legal documents affecting the surveyed accounting 12 data include: - State Budget Law - Accounting Law - Education Law Professional Education Law - Accounting regime and legal documents other related, etc 2.2 CURRENT SITUATION OF ACCOUNTING IN VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES The study of actual accounting work at vocational training colleges aims to answer the author research questions posed to the current content of financial accounting in the secondary schools The data stated below are based on the calculation results of a survey of the sample of 63 VPVTC of the recent 5-year period and divided into two periods with the demarcation time of 31/12/2017 Counterfeit collection is calculated to the end of June 2018 The schools in the survey sample are quite diverse in terms of education training 4.8%, economy 17.5%, engineering 4.8%, service trade 25.4% ect ensuring data assessing diversity, helping to assess the actual accounting work of high school vocational schools is highly comprehensive 2.2.1 Accounting and accounting principles The reference to the principle of modify cash basis or modify accruals basis can be seen clearly in the accounting basis before December 31, 2017, which is a combination of cash basis and accrual basis The same financial accounting system from receiving - processing to providing information related to accounting objects but cannot be considered as a cash basis or an accrual basis After December 31, 2017, although there are no specific explanations in writing or specific provisions in the accounting regime, but through the accounting instructions of economic activities in administrative and non-business units that VPVTC are adhering, it can be seen that the accounting basis is aimed at separating financial accounting on the basis of full accrual basis and full cash basis This is demonstrated by separating the scope of information to be received - the way of receiving - processing providing the output – the users of the output information The acquisition, processing and provision of information: from an input data source, an information processing system, accountants use double entry bookeeping to reflect the changes of all accounting objects in the accounting period, the output is the financial statements; The accountant uses single entry bookeeping to reflect the changes in accounting objects originating from the state budget or resources controlled by the state and resulting in final settlement reports 13 2.2.2 Financial accounting on cash basis a) Identification - record the measurement of the accounting object a1) Determination of accounting objects: assets (cash or treasury deposits of budget-based banks); state budget or state-controlled funding a2) Recognition and measurement of accounting objects: Asset valuation is based on the total amount of money from the budget to purchase and invest in asset construction in the fiscal year The determination of the source of the state budget fund, or the state-controlled source is based on the total value of actually collected revenue (also called the granted unit) in the fiscal year The amount from the state budget allocated to the school every year is the basis for accounting to calculate the amount spent on teaching and training activities of the schools annually b) Receiving - processing - providing information of accounting objects b1) Receive initial information from accounting documents Normally accounting is based on documents issued by the Treasury which controls the state budget expenditure issued by the school accountant b2) Processing information through accounts * Accounting account: Before 31/12/2017, accountant uses domestic and foreign accounts After 31/12/2017, accountants use off-balance sheet accounts * Reflecting changes in accounting objects into account (book): Before 31/12/ 2017, the accounting applies a clear cash basis when it recognizes the value of newly formed fixed assets in the year of origin from the state budget Specifically, at the time of formation, the accountant shall record the entire value (original price) of fixed assets into the expenditures of the corresponding activities (spending on educational and training activities, expenses for activities assigned or actually assigned by the State, show orders of the state) After 31/12/2017, using only the off-balance sheet system, the application of cash basis is more pronounced when the accountant only reflects on a system of off-balance sheet accounts (008, 009, 018) Based on treasury documents, it shows an increase in the amount of money received from the budget when receiving the decision to assign estimates and reduce money from the state budget when withdrawing the estimates for use b3) Provide information through accounting reports: Before December 31, 2017, the accounting report was collectively referred to as the financial statements, the settlement report used to 14 synthesize the situation of assets, receive and use the state budget, the revenue and expenditure situation and conclusion Operational results of units in the accounting period provide major financial and economic information for the assessment of the situation of the units and serve as a basis for monitoring and operating the units' operations In which, the settlement report is the financial statement of the annual accounting period after it has been amended and supplemented during the adjustment of the settlement according to the provisions of law Therefore, there is no full cash reporting system of accounting in Vietnamese secondary schools After December 31, 2017, most schools' accountants affirmed that the preparation of the Final Accounts is independent of the main financial statements and information sources based only on the number of receiving and withdrawn numbers using funds from the state budget and sources are controlled by the state is a manifestation of cash-based reporting 2.2 Financial accounting on an accrual basis a) Identification - record the measurement of the accounting object a1) Identify the accounting objects: Objects are types of assets; objects are payable; objects are funding sources, funds, capital sources; The object is revenue / revenue, expenses / expenses a2) Recording and measuring accounting objects: Accountants measure accounting objects according to separate regulations for each subject According to the sample survey results based on the knowledge of the accounting contents before 31-12-2017, it shows that the accounting measures the accounting objects according to specific regulations for each partner and inconsistent in the principle of calculating prices According to the sample survey results based on the understanding of accounting contents after December 31, 2017, it shows many obvious changes when measuring and recording the accounting objects in the direction of respecting the principle of accumulating establishments like original price, implementation, matching, etc.s b) Receiving - processing - providing information of accounting objects b1) Receive initial information from accounting documents: Based on the understanding of accounting contents before December 31, 2017, 95.2% observed in the form of accounting vouchers to record each increase and decrease of accounting objects at the time of arising and refunding and not dependent on collection and payment Based on the 15 understanding of accounting contents after December 31, 2017, the observations in the survey form identify the receipt of initial information via accounting vouchers in categories: documents of compulsory type and vouchers designed by yourself The accounting voucher system being applied by schools is not only used as a basis for accountants to reflect the receipt and use of state budget but is a common basis for accountants to record changes of all subjects whether or not related to the state budget b2) Processing information through accounts (books): * Accounts (accounting book): The account system is unique, whereby all occurrences with or without state budget are reflected on accounts with the same principles There are 85.7% of schools in the survey sample claiming their account system closely follows the accounting objects including both monetary and non-monetary, but only 11.1% of units in the sample affirm that separate on monetary and non-monetary object tracking accounts Pursuant to a sample survey based on information content knowledge in the fields of accounting at Vietnamese secondary schools after 31/12/2017, using the account system is extended, detailed and specified than the types certain account in the table from categories to 9, divided according to financial situation, reflect the situation of assets, liabilities, capital sources, revenue, costs, surplus (deficit) of units in the accounting period * Reflecting changes in accounting objects into account (book) According to survey results based on knowledge of accounting contents before December 31, 2017, the phenomenon of processing information of many schools depends on the viewpoints and qualifications of accounting, management requirements as well as the work packages There are 80.9% observations in the survey sample confirming that at the same time, it reflects the information about changes in the accounting objects for the financial situation of the entire unit and for the situation of receiving and using the state budget in together with the system of in-house accounts when transactions related to the state arise When recording the accounting objects in both monetary and non-monetary 77.8% of the observations in the sample selected according to the guidelines of house rules water and only 9.5% observed in the sample used the principle of implementation and relevance while still 12.7% of observers in the sample said that the principle of real collection was applied - actually With the knowledge of accounting contents 16 after 31/12/2017, t The observed weight in the sample confirms the simultaneous recognition of information on changes in accounting objects for the financial situation of the entire unit and for the situation of receiving and using the state budget in the same account system In the table, when transactions related to the State budget arise, the value is reduced to 12.7% But when recording the accounting objects in both monetary and nonmonetary 66.7% of the observations in the sample selected according to the guidelines of the state regulations, 28.6% observed in the sample used the principle implementation and relevance, and there are 4.8% observations in the sample that apply the principle of real revenue - really Specifically: Recognizing arising related to assets Recognizing arising related resources Recording occurring revenue and expenses b3) Provide information through accounting reports: Based on the understanding of accounting contents before December 31, 2017, the accounting system of accounting provides accounting information based on the combination of accrual basis and cash basis, in other words newspapers School accountants' statements were not based on the principles of full cumulative basis, 41.3% of observation in the sample that the report was based on the principle of real revenue - incomplete expenditure, and 38.1% of observations in the sample suggested that the report was based on implementation principles and appropriate but incomplete principles Based on the understanding of accounting contents after 3/12/2017, 60.1% of the observations in the sample suggest that the general principle of accounting reporting is the implementation principle, inadequate fit and 39.9% of the observations in the sample suggest that the accounting report complies with the implementation principle, fully consistent 2.3 EVALUATION OF THE SITUATION OF ACCOUNTING SITUATION IN VIETNAMESE PUBLIC VOCATIONAL TRANING COLLEGES 2.3.1 Achievements The survey results show that the secondary schools have fully complied with the regulations on financial regulations from the collection of revenues, expenditures, receipt and use of revenue sources and settlement of those 17 sources, and proper application Current administrative and administrative accounting regime 2.3.2 Limitations 2.3.2.1 Restrictions of accounting basis awareness and corresponding principles in accounting work The knowledge of the accounting principles and principles being used in the unit is not focused on the vocational secondary schools, which is reflected in the sample survey results on the basis of the contents and the objects of accounting on the understanding of the content of implementation accounting both before and after 31/12/2017 mentioned above This restriction will hinder the future when the trend of using accounting standards as a measure for accounting units to implement the content of accounting work instead of the detailed and specific instructions as currently in 2.3.2.2 Limitations in the application of accounting facilities and corresponding principles when determining and measuring accounting objects Accounting of many schools has not identified what the specific cash-based accounting objects are, when learning the signs in the recognition of accounting objects, it is money and cash equivalents as well as the objects non-cash and cash equivalents (liabilities, inventory assets, long-term assets ) both in sample surveys and case studies In applying the cumulative basis when reflecting the financial situation as well as the overall operating results of the whole unit, the identification and measurement of the subjects have not been considered by the schools in terms of nature and yet Be sure to apply the correct principle to note This restriction is even more evident when the accountant recognizes new subjects in the context of an innovative financial management mechanism, the school's activities are diversified 2.3.2.3 Limitations in the application of accounting facilities and corresponding principles when receiving - processing - providing accounting information - Regarding initial information acquisition: Although before December 31, 2017 or after December 31, 2017, accountants always focus on documents related to monetary items and attached to the budget from the state budget - Regarding accounting information processing: There is no separation between accounts reflecting monetary and non-monetary objects, including a system of specialized accounts that monitor the source of the state budget or 18 state-controlled sources It is still possible to reflect the arising object in the wrong account According to the sample survey as well as understanding the information processing model of school accountants in the previous period or after 31/12/2017, the recognition of arising transactions has not focused on the nature of the transaction, or difficulties Which often meet the content of revenue recognition in the right nature, at the right time and record the cost of generating revenue and income on the principle of matching revenue, income generated, etc - Related to providing accounting information: The application of cash facilities when setting up information on this reporting system is incomplete, typically with information associated with non-monetary items The provision of financial information of the school to external audiences such as investors, affiliates, etc has not been focused, mainly reporting accounting and submitting to the financial planning department of the host serving for settlement, or submitting to the State Treasury for checking and comparing the amount of temporarily paid, actual withdrawal, actual expenses, etc 2.3.3 Causes of limitations 2.3.3.1 The weaknesses in accounting infrastructure of public professional high schools The existing problems in accounting come from either the level of understanding or the loose management of the internal control of the school The problems in accounting probably is due to subjective intention of the unit manager The coordination between other departments and the accounting department is not strict enough, leading to the delay in checking and documenting, causing difficult to use vouchers to account In addition to the limited and quality of accounting staff, the awareness of managers in particular and officials and lecturers in general about autonomy in both operation and finance and counter-accountants The operation of the unit under this mechanism is also incomplete 2.3.3.2 Inadequacies in the legal framework for accounting for public professional high schools In general, the accounting regime still focuses on serving the needs of the state budget management in the budget beneficiaries while the financial mechanism directs the units to reduce their dependence on the state budget or in another words beside units using the state budget, there are also units that not use the state budget The regulations on accounting regime have not 19 yet promoted professionalism in accounting work when the Accounting Law allows units to hire accountants and chief accountants but in the regulations on the next regime, there is no legal responsibility Accountants of accounting service providers on vouchers, accounting books and accounting reports 2.3.3.3 Shortcomings in operational mechanism and financial management mechanism for public professional high schools On the objective side, the mechanisms and policies of the state lack of synchronization On the subjective side, awareness of managers in particular and officials and lecturers in general about financial autonomy is incomplete CONCLUSION OF CHAPTER The second chapter shows an overview of the high school system in Vietnam, in which focuses on researching high schools that directly managed by the Department of Education and Training / Department of Labor, Invalids and Social Affairs of the provinces (cities) The author conducts empirical research through descriptive statistical methods and case studies on accounting work at vocational secondary schools according to the perspective of using cash accounting facilities and accrued accounting bases Corresponding accounting principles from receiving and processing to information provision Based on the situation, the author has evaluated both advantages and shortcomings in accounting work, and also specifically analyzed the causes of existence CHAPTER SOLUTIONS TO IMPROVE THE ACCOUNTING IN VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES 3.1 ORIENTATION FOR DEVELOPING VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES Promote socialization and diversity of resources for the development of vocational education, expand professional skills training for employees, etc Create unity in state management agencies on vocational education, avoid cross-sectional situation; at the same time coordinate with relevant agencies to develop decrees to guide in detail the implementation of the Law on Vocational Education Develop a set of criteria for assessing technical norms 20 of job positions of workers and the demand for professional qualifications, etc 3.2 PRINCIPLES OF COMPLETING ACCOUNTING IN VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES The perfect accounting must respect the principles: - Based on existing characteristics and conditions in the schools as well as future development directions of the industry - Based on the regulations of financial management, budget, development orientation of public sector, the principles of accounting in public non-profit units and based on international public accounting standards in accordance with practical conditions in Vietnam - Meeting the information needs of diverse, timely, honest, managers and financial control objectives of the state - Meeting efficiency and saving goals 3.3 SOLUTIONS TO COMPLETE ACCOUNTING IN VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES 3.3.1 Group of solutions to complete financial accounting on cash basis 3.3.1.1 Increase the awareness of accountants on the framework of cash accounting and the accompanying principles The cash basis is used for accounting to track changes in resources which are either money or cash equivalents with state budget or funds controlled by the state Help to receive, process and provide information for national budget control The system of basic principles comes from: principles of actual revenue, actual spending, principle of original price 3.3.1.2 Complete the identification of accounting objects and ways of measuring and measuring specific audiences to comply with cash Objects include: Money, Source, Temporary payment, Temporary collection, Payment 3.3.1.3 Complete the set of accounting accounts reflecting the objects of accounting for compliance with cash basis Accounting accounts system reflecting the above-mentioned subjects, including: Cash Account, Resources Accounts, Receivable Accounts, Advance, Temporary Spending Account, Spending Account 3.3.1.4 Complete the way of reflecting transactions into accounting accounts by double recording method to easily recognize account 21 reciprocal and help reconcile when consolidating the financial statements of state accounting State budget source is allocated to units and expenditures from the state budget shall be monitored separately and accounted immediately when the revenue and expenditure operation arises to ensure the data reflects truthfully, serving the budget settlement objectives from government Receiving funds and using state budget funds are recognized when they are actually occurred 3.3.2 Group of solutions to complete financial accounting on the accrual basis 3.3.2.1 Increase the awareness of accountants on the cumulative accounting framework and accompanying principles The accompanying basic principles include: original price principles, implementation principles, compliance principles 3.3.2.2 Add and improve the content of determining and measuring uniform accounting objects according to the set of accrual basis Specifically, add the rooftop of assets (Cost of production work in progress, prepaid expenses, etc.), liabilities (unrealized Revenue, Provisions, etc.), sources of funds, revenues / cost / result determination 3.3.2.3 Complete accounting documents to comply with accrual basis When the service provision of the secondary school complies with the Price Law, it is necessary to issue a training service invoice, along with other school production and business bill, in the future, electronic invoices can be used Accountants should supplement documents to list the volume of work performed in each subject according to each training system and each job (lecture time, examination according to the training system, type of training) 3.3.2.4 Complete accounting accounts reflecting the accounting objects complying with accrual basis Additional accounts reflect assets, liabilities, funds, income, costs, determine results + Property account: additional account "Reserve for loss of assets"; Detailed account of account "Unfinished production and business costs" + Accounts of liabilities: Add content to the account "Unearned revenue", supplement the "Payable provision " and "Special Fund" accounts + Source account, fund: Additional detailed account "Other funds" in the general account "Funds" to separate sources received from the state budget or outside the state budget 22 + Income accounts, costs, determine the results: forming "Revenue from the non-state budget" and "Revenue from the state budget" accounts opened in detail according to each activity With the Account "Governmental Operating Expenses" or "General Operating Expenses" account, it is necessary to open details according to the item or cost factor instead of the regular and irregular details as currently, because of the tracking According to regular or infrequent expenditures, only one part of the activity will be monitored 3.3.2.5 Complete the way of reflecting transactions into accounting accounts in compliance with accrual basis The accreditation of accrual accounting method will cover all transactions arising irrespective of whether the transaction is originally from the state budget Specifically, with the accounting parts: assets, liabilities, funds, income, costs, determine results, etc 3.3.2.6 Complete accounting report to comply with accrual basis The financial reporting system is set up by all vocational secondary schools regardless of the degree of dependence on the state budget, specifically: - Report on the financial situation: indicates the financial condition of each school at a specific time (the end of the accounting year), namely the types of assets and sources of asset formation at the time of reporting The report has a two-part structure: Assets and Resources - Report on the results of activities: reflecting the results of activities carried out by the school, including training activities, project program implementation, state orders, business activities, finance and other activities - Monetary circulation report: determining the cash inflow, cash-out items in the reporting year and cash balance at the date of the report, to provide information about changes in money and equivalent money at the unit; Money sources and purposes of usage At the same time, the Cash Flow Statement will show the balance between the cash flow generated in the period with the money spent in the period and will show the effectiveness of financial management in the school, especially in terms of financial autonomy - Explanation to the financial statements report comprises of additional explanatory information or detailed analysis of the items presented in the Financial report, Report of operating results, cash flow statements as 23 well provides information about items that not meet the criteria presented in the above reports and other required information 3.4 CONDITIONS FOR IMPLEMENTING SOLUTIONS TO COMPLETE ACCOUNTING IN VIETNAMESE PUBLIC VOCATIONAL TRAINING COLLEGES 3.4.1 About the Vietnamese public vocational training colleges In order to be able to implement the above solutions, it is necessary to first innovate in thinking and in the way of making decisions of high school leaders The leaders of the vocational schools must recognize the importance of the accounting information system in the management of the school's finance, especially in the condition of cutting state budget funding towards total autonomy; The vocational schools must spend a reasonable budget for investing in accounting work with accounting staff and hardware systems, accounting software suitable to the requirements of the job The school should proactively catch up with the wave of educational socialization, actively access domestic and foreign investment resources for education and training 3.4.2 About the State and society As a public service unit, the reform of operations in general and accounting work in particular in vocational secondary schools depends heavily on the state management mechanism, the solutions to complete accounting are only possible if receive strong support from state management departments, which are direct management department and financial department The Government and the Ministry of Education and Training, the Ministry of Labor, War Invalids and Social Affairs, the Department of Education and Training, the Department of Labor, Invalids and Social Affairs, etc should raise the socialization of education in vocational training at the High School The Government and the Ministry of Finance need to improve the financial mechanism for public professional high schools The Ministry of Finance needs to build a system of Vietnamese public accounting standards Other support work CONCLUSION OF CHAPTER In chapter 3, the author has proposed solutions to complete the financial accounting content in high schools Complete solutions are in line with the 24 orientation of developing Vietnamese vocational secondary schools and the trend of reforming state financial management and conferences with international accounting Specifically: Completing the content of accounting work based on the delimitation of accounting work into financial accounting on the basis of accruals and financial accounting on cash basis In each solution group, it is from awareness of accounting base, accounting principles to applying that principle in determining accounting objects, applying in receiving, processing and providing information Clearly state the conditions for implementing effective solutions in terms of schools as well as state and social management departments FINAL REMARKS In order to integrate into international environment, Vietnam must reform the national education system through policies to promote socialization of education, diversify training activities, give more proactive rights in financial management to schools More than ever, the demand for authentic and effective accounting information becomes essential for managers inside and outside the organization, investors and related stakeholders with the schools Currently, vocational training colleges - an important part of the national education system - are implementing accounting contents and providing accounting information that does not meet the information requirements of users, and is not appropriate with the trend of converging international public accounting, the research "Improving accounting in Vietnamese public vocational training colleges" has contributed practically both in theory and practice In theory, the thesis generalizes the operational characteristics of public non-business units, thereby determining the factors that govern accounting of public non-profit units; a general study of the contents of accounting of public non-profit units according to accounting bases, interpreting suitable accounting bases for financial accounting and budget accounting Learn the international accepted mold rules for public sector accounting from which to draw experience for Vietnam Practicality, through a practical survey of accounting work content at Vietnamese vocational training colleges, the thesis has reviewed and evaluated, analyzed the advantages and disadvantages in accounting work at the current secondary schools From the results of the practical survey, the 25 thesis proposes solutions to improve the financial accounting contents at Vietnamese vocational secondary schools towards honest and reasonable accounting information to help managers and investors put the most effective analysis and decision Thereby increasing investment attraction of the domestic and foreign private sector in order to develop educational and vocational training activities in the environment of socialization and globalization education The research results of the thesis contribute to strengthening the theoretical basis of accounting work, and the authors hope to complete solutions can be applied to the actual accounting work of public vocational training colleges in Vietnam Although the author has worked very hard and put much efforts on the research, the thesis will not avoid the limitations and defects, the author would like to receive the attention and constructive comments from the scientists and readers ... Prof.Doan Van Anh, PhD Appraiser 1: Appraiser 2: Appraiser 3: This dissertation is defended in Examination Committee in Academy of Finance At: on 2019 Be referred to: - National Library of Vietnam -... in Vietnam There are many differences between the accounting of Vietnamese public non-business units and the similar accounting system of countries around the world The accountants of Vietnamese... not been focused, mainly reporting accounting and submitting to the financial planning department of the host serving for settlement, or submitting to the State Treasury for checking and comparing