STRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE

ACADEMY OF FINANCE

NGUYEN THI PHUONG ANH

IMPROVING ACCOUNTING WORK ORGANIZATION IN TRADITIONAL MEDICINE HOSPITALS IN HANOI CITY

Faculty: Accounting

Code no.: 9.34.03.01

DOCTORAL THESIS ABSTRACT

HANOI, 2020

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The thesis is accomplished at: ACADEMY OF FINANCE

Scientific Supervisor: Associate Prof. Nguyen Dinh Do

Counter Argument 1: .......................................................................... .........................................................................

Counter Argument 2: ........................................................................... .........................................................................

Counter Argument 3: ........................................................................... .........................................................................

The thesis will be defended at Doctoral Dissertation Assessment Council for

Academic Level,………………Location:.. ..................................... Time: After the publication, the thesis will be stored at: - National Library of Vietnam - Academy of Finance Library

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INTRODUCTION

1. Reasons for choosing the research topic

In the context of a highly progressive global economy, the Vietnamese Party and

Government have made many innovative policies for the health sector's activities to enhance

the operational capacity of the state and economic units. On the one hand, these policies

have created a wide legal corridor for non-business units to promote their autonomy and

self-responsibility to reduce their dependence on the state budget for their activities. As a

result, the health sector in general and the traditional medicine sector in particular have

gained achievements in the areas of inheritance, staff training, scientific research, medical

treatment, medicine production and medicinal production..., making an important

contribution to the cause of caring and protecting the people's health, supporting the national

health and medicine and raising the position of Vietnamese traditional medicine and

pharmacy in the world. The system of traditional medicine has been strengthened, the health

care and examination and treatment network have been upgraded and improved, and the

system of health service provision has been expanded, improving medical ethics,

responsibilities of health workers, improving the effectiveness of medical examination and

treatment.

In particular, the Party and the State have issued many directives and circulars of

agencies, agencies and policy makers to overcome difficulties and exist traditional

Vietnamese medicine in general and in Ha noi in particular: The 4th Resolution of the

Central Committee of the Communist Party of Vietnam VlI "On urgent issues in the care

and protection of people's health", The Conference The 6th Central Committee of the 12th

term issued Resolution No. 20 / NQ-CP dated October 25, 2017 on "Strengthening the

protection and improvement of people's health in the new situation", Decision 1092QĐ /

TTg dated September 2, 2018 on "approving Vietnam's health plan".

In the new financial mechanism, the assignment of autonomy and self-responsibility

in implementing tasks, organizational structure, payroll and finance for public non-business

units in general and for traditional medicine hospitals transmission in Ha noi in particular

has helped hospitals to actively expand activities to increase finance and reduce the burden

on the state budget. Organizing accounting work is a tool for organizing the management,

economical and efficient use of the financial resources of the unit in the direction of such

autonomy, publicity and transparency. At the same time, it helps the ministries and branches

better manage their financial resources and come up with the right policies and strategies to

promote and preserve the long tradition of traditional medicine, contributing to the

expansion of People's health care activities.

Although, the Government issued Decree 16/2015/ ND-CP on February 14, 2015

(ND16/2015) replacing Decree 43/2006 / ND-CP on April 25, 2006 (ND43 / 2006),

regulating the autonomy mechanism for public non-businesss, the activities of public health

service units still comply with Decree 85/2012 / ND-CP dated October 15, 2012 ( Decree

85/2012) is no longer in line with Decree16 / 2015, so the Government needs to issue a new

operating mechanism specifically for the health sector to match the autonomy mechanism,

creating a legal corridor for the public health careers in general and traditional medicine

hospitals in Ha noi in particular are proactively promoting the capacity of high-quality

public service providers for society, expanding medical examination and treatment,

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increased sources collection for the unit. The Ministry of Finance issued Circular 107/2017 /

TT-BTC dated October 10, 2017 (TT107 / 2017), guiding the accounting regime of

administrative and non-business units to reflect quite fully financial and economic

operations arising, at the same time supplementing books, financial statements, settlement

reports more in line with international public standards. However, the application of the

administrative and non-business accounting regime is still inconsistent among traditional

medicine hospitals in Ha noi. In general, the legal framework and legal documents on

accounting and finance also reveal many limitations, affecting the collection, processing

systematize and providing accounting information and accounting reports for managers. The

organization of the completed accounting work will make the management of revenues and

expenditures of the unit more complete. Therefore, the issue of improving and renewing the

organization of accounting work has practical significance to improve the financial

management in hospitals.

Therefore, from the theoretical research and basis on the current situation in

organizing accounting work at Traditional Medicine hospitals in Hanoi, by approaching the

organization of accounting work as well as from the perspective of a science and accounting

information system, the PhD student chose the topic "Improving the accounting organization

of traditional medicine hospitals in Hanoi" to study with the expectation that the thesis will

contribute a part for these hospitals to develop sustainably in the financial autonomy

mechanism and in the development of information technology applications.

2. The research objectives of the thesis

* Overall objectives:

The thesis approaches accounting organization from the perspective of economic

information system, to clarify the organization of accounting work at traditional medicine

hospitals in Ha noi, from which proposals are made to improve the accounting organization

in these hospitals.

* Detail goal:

To arrive at the above general objective, the thesis in turn clarifies the following

specific objectives:

- Firstly, the thesis systematizes and clarifies the basic theory of the organization of

accounting work in public non-business associated with the mechanism of autonomy and

self-responsibility in terms of organizational structure, performance of duties, payroll and

financial management.

- Secondly, the thesis has based on the researches on the theoretical basis and characteristics

of the accounting work organization to choose the most appropriate application to the

accounting organization of traditional medicine hospitals in Ha noi.

- Thirdly, the dissertation investigates and analyzes the situation of organizing accounting

work in traditional medicine hospitals in Ha noi in the condition that the units implement the

mechanism of autonomy and self-responsibility for the organizational structure, performance

of payroll and financial management.

- Fourthly, the thesis assesses the current situation of accounting organization in traditional

medicine hospitals in Ha noi.

- Fifthly, the thesis proposes solutions to improve the organization of accounting work and

organization of accounting work in the conditions of IT application to serve the management

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and operational efficiency of the units according to autonomy mechanism, self-responsibility

for organizational structure, performing payroll tasks, and financial management.

To achieve the above objective, the thesis will focus on clarifying the following research

questions:

1. General theory of the organization of accounting work, characteristics of the organization

of accounting work of public non-business?

2. What does the content of the accounting organization approach to the accounting

organization approach include, "the information system"?

3. Factors affecting the accounting organization of traditional medicine hospitals in general

and in Ha noi in particular?

4. What is the current situation of organizing the accounting work of traditional medicine

hospitals in Hanoi in the past time, meeting the operational and management requirements of

the unit?

5. Solutions to improve the accounting organization of traditional medicine hospitals in Ha

noi to better manage financial work in the conditions of information technology application

and in the current autonomy mechanism ?

3. Research subject and scope

- Research subjects:

The thesis focuses on theoretical and practical research on the organization of accounting

work of traditional medicine hospitals in Hanoi in the context of implementing the autonomy

and self-management mechanism in terms of organization apparatus, task performance,

payroll and financial management. From there, propose suitable solutions to improve the

organization of accounting work of these units. The thesis does not study the organization of

accounting work of public hospitals in general and non-public traditional medicine hospitals

in Ha noi.

- Research scope:

+ Regarding the scope of research space: The thesis conducts research on organizing

accounting work at traditional medicine hospitals in Ha noi.

+ Regarding the research content: The thesis focuses on surveying, researching on the

organization of accounting work at traditional medicine hospitals in Ha noi under conditions

of implementing the autonomy and self-responsibility management mechanism on

organizational structure, performing tasks, staffing and financial management on 2 aspects

of financial accounting and management accounting, and at the same time, researching and

surveying on the organization of applying IT in accounting work. The payment for these

units is as follows:

* From the perspective of financial accounting: Surveying and researching the organization

of accounting work in traditional medicine hospitals in Ha noi according to the following

contents: organization of accounting human resources, collection organization data,

organizing data processing, analyzing and providing information, organizing checking

accounting information in the accounting information system, organizing applying IT in

organizing accounting work.

* From the perspective of management accounting: Surveying and researching the

organization of accounting work in traditional medicine hospitals in Ha noi according to 2

contents: cost classification, setting norms and estimates cost.

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+ In terms of research time: The thesis focuses on surveying and collecting documents on

the organization of accounting work in traditional medicine hospitals in Ha noi from 2017 to

the present time.

4. Research Methodology

The thesis uses a combination of qualitative and quantitative methods to clarify specific

research questions. Method details are described as the table below.

Research questions Research methods

1/ General theory of organization of accounting work,

characteristics of the organization of accounting work of

public non-business

Qualitative methods:

summarize, analyze, compare

and contrast

2 / What is the content of the accounting organization's

approach to the organization of accounting work as an

"information system"?

Qualitative methods:

descriptive statistics

3 / Factors affecting the accounting organization of

traditional medicine hospitals in general and in Ha noi in

particular?

Qualitative methods:

descriptive statistics,

comparison, reconciliation,

evaluation

4 / How is the situation of organizing accounting work of

traditional medicine hospitals in Hanoi in the past time,

meeting the operational and management requirements of

the unit?

Quantitative methods:

surveys, interviews,

observations

5 / Solutions to improve the organization of accounting

work of traditional medicine hospitals in Ha noi to better

manage financial work in the conditions of information

technology application and in the current autonomy

mechanism ?

Data analysis methods:

statistics, qualitative analysis,

collation, comparison

5. Scientific and practical significance of the topic

Scientific contributions:

The thesis analyzes, systematizes basic theoretical issues about the organization of

accounting work of public non-business units; These issues are presented quite adequately,

logically, dialectically and is the basis and premise for the study of the main content of the

thesis.

The main content of the thesis is to describe the characteristics of the organization of

operations, the organization of accounting work of traditional medicine hospitals in Ha noi.

This is the basis for analyzing and evaluating the factors affecting the accounting

organization of traditional medicine hospitals in Ha noi.

Practical contributions:

On the basis of the current situation survey, it aims to describe to analyze and assess

the situation of the organization of accounting work at traditional medicine hospitals in Ha

noi in a systematic manner. It also seek information to point out the advantages and

limitations, the cause of the limitations in the organization of accounting work of these

hospitals. Basing on these findings, the thesis has proposed a number of quite

comprehensive solutions to improve the accounting organization at traditional medicine

hospitals in Ha noi:

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+ From the State side: It is necessary to complete the system of legal documents to well

perform the function of guiding, managing and monitoring activities of the organization

working with public non-business units in general, organizing accounting work at traditional

medicine hospitals in Ha noi.

+ On the hospital side: Improving accounting organization, accounting human resource

organization, data collection organization, data processing organization, analysis and

information provision organization, public organization in collaboration accounting in terms

of IT application of traditional medicine hospitals in Ha noi in accordance with the

autonomy mechanism.

6. Overview of research situation related to the thesis.

* Overview of foreign research situation.

In the world, certain authors have researched and published the book "State

accounting and non-profit organizations" (Accounting for Governmental and Nonpofit

Entities_2001) that are Earl R. Wilson, Leon E. Hay or Susan C. Kattelus. The book

contains generally accepted accounting principles, guides on how to record events, how to

prepare financial statements at the end of the period, and further research into hospital

specific activities. , schools, armed forces units. Particularly in the field of health, the author

Louis C. Gallenski analyzed the financial environment of the health sector, providing

guidance on accounting organization on both the contents of financial accounting and

management accounting in the book “ Health Finance - An introduction of Accounting and

Financial Management - 2004 (Healthcare Finance - An introduction of Accounting and

Financial Management - 2004).

Another study in the field of organizing public accounting is the study of Lasse

Oulasvirta, Tampere University in Finland with the title “The ruluctance of a developed

country to choose International Puplic Sector Accounting Standards of the IFAC. A critical

case study” (The indifferences of developed countries in choosing to apply the international

public accounting standards of the International Accounting Federation - Adjusted Case

Studies). In his study, the author pointed out the reason why a typical developed country

such as Finland refuses to apply international public accounting standards in its accounting

organization. The article deals with the application of international public accounting

standards in the organization of accounting work in European countries and especially in

Northern Europe. Through this research, the question for public accounting organizations is

the flexible and rational application of international public accounting standards to each

country.

Research on public accounting by four authors namely Ehsan Rayegan, Mehdi

Parveizi, Kamran Nazari and Mostafa Emami with the title: "Public accounting: Assessment

of theory, objectives and standards" ("Government accounting: An Assessment) of Theory,

Purposes and Standards”) gave a summary of the issues in the accounting practice of public

non-businesss, including the organization of accounting work based on the two principles of

cash accounting. and accrual accounting. The article mentions the role and responsibilities

of the Government in organizing accounting work; innovation program of public finance

management and issues related to the state budget, proposals to expand to promote

accountability in accounting performance related to economic and political obligations as

well as in this study.

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Above are some fairly diverse and abundant studies of foreign authors related to the

organization of public accounting work. Research issues on the theoretical framework in the

organization of accounting work, the effectiveness of the implementation of the accounting

principles, the application of accounting standards in the organization of accounting work,

etc. However, this study of countries with developed economies and is the general study of

public accounting. Therefore, the research gap for specific cases and the application of

organizational principles in the organization of large accounting work, especially in

developing countries, have not been studied specifically for public organizations.

Accounting cooperation in public non-business units in the health sector.

* Overview of domestic research situation.

- The researches on the organization of accounting work in general at state units:

In Vietnam, the Ministry of Finance promulgates the accounting regime of the ANB

unit to guide accounting in the administrative state unit for all industries and fields of

activity. In recent years, there have been many published studies discussing the

improvement of the organization of accounting work in the public non-business unit with

review on certain aspects, the topics mainly mentioned general principles, basic theories of

the organization of accounting work, providing general guidance for a number of specific

units.

The thesis of Dr. Tran Thi Hoa Thom (2011) "Using accounting and auditing tools to

improve the efficiency of financial management at public universities in Vietnam" focuses

on in-depth research on the current situation. using accounting and auditing tools in the

financial management of public universities in Vietnam, proposing solutions to improve

financial management efficiency through the use of accounting and auditing tools in terms of

payment and autonomy mechanism.

The thesis of Dr. Phan Thi Thu Mai (2012) "Completing accounting organization in

order to enhance financial management in the administrative units of Labor, Invalids and

Social Affairs" research on accounting organization accounting and financial management in

administrative and non-business units, the thesis clearly indicates that accounting

organization affects the effectiveness of financial management in the following aspects: the

ability to control and transparency of revenue and expenditure activities from it proposed

solutions on organizational structure, accounting and application of the accrual accounting

base to build an accounting reporting system to enhance financial management in the labor -

war invalids and social affairs sector ".

- Studies on the organization of accounting work in the health sector:

These dissertations focus on studying the basic theoretical issues on the organization of

accounting work in public non-business units in general and mention some issues on

financial mechanism, organization of accounting work. In the sector of health in particular,

assessing the situation and offering some solutions to improve the organization of

accounting work in the research scope. There are a number of dissertations also mentioning

the application of information technology in perfecting the organization of accounting work

but not yet profound and specific. Their authors also mentioned some contents from the

perspective of management accounting, however, most of the thesis showed that

management accounting in hospitals has not been considered seriously as followed:

The thesis of Dr. Le Kim Ngoc (2009) "Organizing accounting in health facilities with

strengthening financial management of Vietnam's health sector", without analyzing the

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factors affecting the organization of accounting work in public non-business units. The

author has analyzed and assessed the situations on two aspects such as financial management

mechanism and accounting organization in medical facilities in Vietnam and found out

major and existing problem in accounting practice in health facilities with the strengthening

of financial management of Vietnam's health sector at present. Based on these shortcomings,

the author raises the need to improve the accounting organization in Vietnamese health

facilities and outlines three contents that need to improve the accounting organization such

as: accounting system, accounting work, financial management work in accordance with the

conditions of law and other binding conditions in Vietnam. However, the thesis has not

proposed in assessing the status of financial statements analysis and proposed how to

complete it, but also limited the proposals to perfect the system of accounting documents

and refunds to improve the accounting system in the direction of serving international

economy. The recommendations and solutions mainly deal with the financial management

and accounting organization of hospitals under the Ministry of Health and the Department of

Health.

The thesis of Dr. Le Thi Thanh Huong (2012) "Improving the organization of

accounting work in hospitals under the Ministry of Health in Vietnam". The thesis has

analyzed the situation of organizing accounting work in hospitals under the Ministry of

Health, which governs the financial management mechanism and organization of accounting

work in this type of unit. From the theory and practice of the thesis, perfecting the

accounting organization from the perspective of economic and financial (KTTC),

international economics such as BMKT organization, accounting base system, document

system organization, system organization TK system, organization of accounting book

system, estimation of financial activities, system of international economic reporting.

However, the dissertation has not proposed to improve the financial statements system,

analyze and publicize the financial statements, organize the accounting inspection and the

application of informatics to accounting.

The thesis of Dr. Bui Thi Yen Linh (2014) "Organizing accounting work at public

health facilities in Quang Ngai province". The thesis analyzes the factors affecting the

organization of accounting work at public non-business units. However, the thesis has not

proposed a general accounting book system and an organizational structure of the

accounting apparatus for general application to public hospitals and preventive medicine

centers in Quang Ngai province for implementation.

In summary, there are quite a number of studies on health financing and accounting

organization at public non-business units in Vietnam with certain contributions and

significant references for the thesis during the implementation process. However, these

studies have limitations and gaps have not been mentioned in some aspects.

Firstly, the approaching topics on the organization of accounting work from the

perspective of accounting are a profession, a job and the common feature is to only research

theories on some contents of the accounting organization at public non-business units in

general. Meanwhile, the basic theories about the organization of the accounting work as well

as the influencing factors affecting the accounting organization have not any research works

and presented in a comprehensive and systematic manner.

Secondly, the research works only focus on analyzing and assessing the situation,

thereby offering solutions to improve financial management and accounting organization in

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public hospitals in general, not yet. There is a comprehensive study, complete analysis of the

current situation and specific solutions on accounting organization approach based on the

accounting perspective, which is an information system including human resource

organization and data organization. data, organizing data processing, analyzing and

supplying information, organizing information checking and some contents of the

organization of accounting and management in the field of traditional medicine in Ha noi .

Thirdly, these works have not provided specific solutions to complete the organization

of accounting work for traditional medicine hospitals in Ha noi with the content of

organizing human resources for the accounting information system; organize accounting

work on each content in the condition of applying information technology to

comprehensively manage the financial work and organize the accounting work of these

hospitals in the current autonomy mechanism.

* Issues raised need further research

From the results of the overall research, it can be seen that for overseas studies, it is

often focused on the implementation of accounting principles, the application of accounting

standards in the implementation of accounting work or Theories in the organization of

accounting work, ... These studies are conducted in most countries with highly developed

economies and researches in the field of public accounting in general. For domestic studies,

published works often focus only on researching general theories and surveying the reality

of the organization of accounting work in non-business units and non-business units with

revenues belonging to specific ministries.

In this thesis, the author has inherited theoretical studies on the organization of

accounting work in general units and in non-business units in particular in the published

works. However, in this research, the author sets the issue in a new environment, which is

the accounting organization of traditional medicine hospitals in Ha noi, so the author’s

finding is there is still a gap that has not been looked into, specifically as follows:

- These studies approach the theory of accounting work from a traditional viewpoint:

Accounting is a job, a profession including organizing accounting vouchers, accounting

accounts, accounting books. ..., but the author's dissertation approaches the organization of

accounting work according to the new point of view: accounting organization is an

information system that includes accounting human resources organization, collection data

for accounting information systems, data processing organizations, analysis and information

provision organizations, and organization of accounting information inspection.

- There have been no studies on the organization of private accounting in the traditional

medicine industry, specific factors in the operation, management organization, and financial

policies that govern accounting organization of traditional medicine hospitals in Ha noi.

- There are no specific studies on the application of IT directly affecting the organization of

accounting work of traditional medicine hospitals in Ha noi.

- There have been no studies and assessments on the current situation of organization of

accounting work at traditional medicine hospitals in Ha noi, finding out the factors affecting

the organization of accounting work, issues. exist when these hospitals apply a new

accounting regime to account revenues and expenses, when applying the law provisions on

invoices, vouchers, ...; Basing on these findings, I propose appropriate solutions to organize

the accounting work of these hospitals in the current autonomy mechanism.

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Therefore, I decided to choose “Imporving accounting work organization in

traditional mecdicine hospitals in Ha noi” as my research. The thesis will research

intensively on the organization of accounting work in the public non-business, associated

with the autonomy mechanism for task performance, organizational structure, payroll and

finance; the same situation of organizing the accounting work in traditional medicine

hospitals in Ha noi, the advantages and limitations, identifying the causes and influencing

factors to give solutions to overcome and complete organize the accounting work of

traditional medicine hospitals in Ha noi in the autonomy mechanism.

8.2. New contributions of the thesis

About the approach: The author approaches to organize the work from the perspective of

accounting information system.

Regarding the content: The thesis studies the characteristics of the organization of

operations, the organization of accounting work, the factors affecting the organization of

accounting work of traditional medicine hospitals in Hanoi.

About the context: The dissertation studies the accounting work of traditional medicine

hospitals in Hanoi in the context that these units are implementing the autonomy mechanism

to gradually reduce their dependence on the State budget, and the information technology

revolution 4.0.

9. The layout of the thesis

The content of the thesis is divided into 3 chapters in addition to the introduction,

conclusion, list of references and other structural parts.

Chapter 1: General theory of organization of accounting work of public non-business units

Chapter 2: Actual situation of organizing accounting work at traditional medicine hospitals

in Ha noi.

Chapter 3: Solutions to improve the organization of accounting work at traditional medicine

hospitals in Ha noi.

These three chapters have a logical relationship to carry out research objectives.

Figure 1. Research framework of the thesis

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CHAPTER 1: GENERAL THEORY OF ACCOUNTING ORGANIZATION

FOR PUBLIC NON-BUSINESS UNITS

1.1. Overview of public non-business units

1.1.1. Public non-business concept

1.1.2. Characteristics of public non-business

1.1.3. Classification of public non-business

1.2. Organization of accounting work in public non-business.

1.2.1. General issues about the organization of accounting work of public non-business units

1.1.1.1. Concept of organization accounting work of public non-business units

STUDY GAP

OBJECTIVES AND ISSUES TO

CHAPTER 1: GENERAL THEORETICAL ORGANIZATION OF

ACCOUNTING WORK AT PUBLIC NON-BUSINESS UNIT

CHAPTER 2: CURRENT SITUATION OF ORGANIZATION OF THE ACCOUNTING WORK OF TRADITIONAL HOSPITAL ON HANOI

The process of formation and

Organization of operation, Organization

of financial mechanism

Influential factors

organizations of accounting work

approaching the information system

from the accounting The organization of accounting work approaches from the perspective of accounting is the information system the perspective

Influential factors

2.1 Overview of traditional

medicine hospitals in Hanoi

2.2. Actual situation of

organizing accounting work

in traditional medicine

hospitals in Hanoi

3. Assessing the situation

CHAPTER 3: SOLUTIONS TO COVER THE GAP

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According to the "Accounting Principles Curriculum" of the Finance Academy, "The

organization of accounting work should be understood as a system of constituent elements:

organizing the accounting apparatus, organizing the application of accounting methods,

accounting techniques, organizing the development of accounting regimes, rules,... the

relationship and the impact between these factors with the purpose of ensuring conditions for

maximizing the functions of system of such factors”.

1.1.1.2. Requirements, tasks and meanings of accounting organization of public non-

business units

1.1.1.3. Factors affecting the organization of accounting work of of public non-business

units

The legal environment and financial mechanism of public non-business units

Demand for accounting information in public non-business units.

Financial management mechanism and innovation of financial management mechanism in

public non-business.

1.1.2. Basic content of accounting organization in of public non-business units

There are many views about the content of accounting organization, but according to the

author, the most important accounting information system in the financial and economic

management of a unit. Calculating correctly and adequately the inputs and well organizing

accounting human resources, organizing data, processing data, analyzing, providing

accounting information and checking accounting to serve Management requirements are of

great significance in improving the performance of revenue-earning of public non-business

units. Thus, besides analyzing the needs of society for public services, the accounting

information system is an important tool for of public non-business units to identify their

strengths and develop improvement strategies. Therefore, the author chooses an approach of

organizing accounting work from an accounting perspective as an information system.

Studying the content of the organization of accounting work in of public non-business units

is to identify the main and basic tasks to be conducted when organizing the accounting work.

1.2.2.1 The organization of accounting work approaches from the perspective of accounting

is the information system.

Organizing human resources in accounting information system.

Organizing data collection for accounting information systems.

Organization of data processing for accounting information systems.

Analyzing, providing information of accounting information system.

Organization of accounting inspection.

Organizing accounting work in terms of IT application.

1.2.2.2 Organize the accounting work of public non-business units from the perspective of

management accounting.

In this content, the thesis chooses the approach of organizing the international

economic organization according to the management process associated with the types of

activities that generate revenues and expenditures of a of public non-business unit, this

approach provides the following solutions: useful information of the international economy

for each stage of the management process, serving administrative functions in controlling

each type of activities of a of public non-business unit, including: cost classification, norm

construction and cost estimation.

1.1.3. The situation of applying international public accounting standards in Vietnam.

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CHAPTER 2: CURRENT SITUATION OF ACCOUNTING ORGANIZATION AT

TRADITIONAL MEDICAL HOSPITAL ON HANOI AREA

2.1. Overview of traditional medicine hospitals in Hanoi.

2.1.1. The process of formation and development.

Traditional medicine hospitals in Ha noi, including:

- Hospitals under the Ministry of Health include 3 hospitals: Central Traditional Medicine

Hospital, Central Acupuncture Hospital, Tue Tinh Hospital

- Hospital under the Hanoi Department of Health includes 2 hospitals: Hanoi Traditional

Medicine General Hospital, Ha Dong Traditional Medicine Hospital

- The hospital directly under the Ministry of Public Security includes 1 hospital: The

Ministry of Public Security's Traditional Medicine Hospital

- The hospital under the Ministry of Defense consists of 1 hospital: the Military Traditional

Medicine Institute

2.1.2. Organization of operations.

2.1.3. Organization management apparatus.

2.1.4. Financial management mechanism.

- Content of financial activities: State budget allocations (including regular, irregular);

Revenues from medical examination and treatment with health insurance (including sources

of health insurance and patient payment); Revenues from medical examination and treatment

services and other sources (aids, sponsorships, business cooperation contracts, training,

parking space rentals, canteens, ..., ...

- Content of financial expenditures: State budget allocations; Expenditure by revenues from

medical examination and treatment with health insurance, services and other sources.

2.1.5. Influencial factors.

Legal environment, financial mechanism for traditional medicine hospitals in Ha noi.

Accounting information needs of traditional medicine hospitals in Ha noi.

Financial sources for investment in traditional medicine hospitals in Ha noi.

Financial management mechanism and innovation of financial management mechanism.

2.2. Actual situation of organizing accounting work in traditional medicine hospitals in

Ha noi.

2.2.1. The organization of accounting work approaches from the perspective of accounting

is the information system.

Based on the organizational characteristics as well as the scope of operations and the

decentralized situation of financial management within the unit, as well as the volume,

nature and extent of arising economic operations, the accounting apparatus of the diseases.

Traditional medicine institute in Hanoi operates in a concentrated form (accounting for

71.44%), in a concentrated and dispersed form (accounting for 28.56%).

2.2.1.1. Actual situation of human resources organization in the accounting information

system.

* Organization of the accounting apparatus.

According to the survey results, 100% of traditional medicine hospitals in Hanoi do not

organize separate economic and administrative departments, but are implemented by the

financial and accounting department.

* Personnel organization in the accounting apparatus.

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Accounting workers in these hospitals: graduate with 5%, graduate with 85%, intermediate

with 10%. The qualifications of the accountants are uneven at the units, trained in many

different training facilities, and there are hospitals that use accountants who are not

specialized in the training.

2.2.1.2. Data organization for accounting information systems

*Regarding the content and form of accounting vouchers: Traditional medicine hospitals in

Hanoi comply with the content, method of making and signing accounting vouchers

according to the Accounting Law and Decree No. 174/2016 / ND-CP dated 30 / 12/2016 of

the Government detailing and guiding the implementation of a number of articles of the

Accounting Law and related legal documents.

*About the system of accounting voucher forms: implementing the forms of voucher

templates under the system of compulsory general accounting vouchers that are prescribed

by the accounting regime. The implementation reflects the units' arising economic and

financial operations fully reflected in 4 criteria: labor and wage criteria, including:; criteria

of supplies; monetary criteria include: cash receipt, cash payment slip, cash withdrawal

check, advance proposal, payment proposal, payment request; Fixed asset targets include ex-

warehousing, warehousing, medicine, supplies, ... bills of each department.

Each invoice at traditional medicine hospitals in Hanoi is only issued once when the

patient finishes the treatment, so it does not reflect the right revenue - cost. Because

revenues for subclinical services of patients have been made but the hospital has yet to bill

for these subclinical activities. As a result, hospitals have not complied with the regulations

on the time of billing at Point 2, Article 16 of TT39 / 2014 / TT-BTC dated March 31, 2014.

*Regarding the receipt of accounting vouchers as follows: all accounting documents made

elsewhere are transferred to the Finance and Accounting Department of the hospital for

inspection and processing.

*Checking accounting records and rotation of accounting vouchers: these hospitals are

checked for the clarity, honesty, completeness of the criteria, the factors recorded on the

accounting vouchers, the appropriateness The rationality and legality of the arising

economic and financial operations

According to the survey results show that all hospitals apply accounting software to their

accounting work, so most of the voucher templates are available. Accountants only need to

add documents of necessary business operations.

According to the survey, 100% of these hospitals do not have an Internal Control

Department, checking accounting records is usually done directly by the accounting

department using vouchers to record books and auditing units. For vouchers which have

been recorded in accounting books, mistakes and errors cannot be avoided.

*Classification and arrangement of accounting documents. The accounting documents of

hospitals are classified into 2 types: Original documents (original documents) and general

documents (intermediary documents). Accounting documents include vouchers for purchase

of fixed assets, payment of wages, drugs, medical supplies, chemicals, etc., vouchers

reflecting the recording of hospital fee collection activities: collection of health insurance fee

collection, collection hospital fees for medical services, ...

*Document storage and preservation: Accounting documents are archived and preserved in

accordance with the Government's Decree No. 174/2016 / ND-CP of December 30, 2016.

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The storage and preservation of accounting vouchers of traditional medicine hospitals in

Hanoi are undertaken by the Finance - Accounting Department. According to the survey,

85.72% of these hospitals have archives to preserve documents to ensure compliance with

regulations on archiving and preserving accounting vouchers, only 14.28% do not have

archives. separate documents (Tue Tinh hospital does not have a separate document for

storing documents in the finance and accounting department)

2.2.1.3. Organization of data processing for accounting information systems.

Accounting information of public health clinics in Ha noi after being received will be

classified by group of information as follows:

- Information on the estimation and the situation of the use of funding sources: regular

funding sources, irregular funding sources, hospital fee sources and other sources of

revenue;

- Information on properties, equipment;

- Information on labors, salaries, preferential allowances of the profession such as: direct,

toxic allowance, surgical procedure allowance, ...

- Information on use of drugs, supplies, chemicals, ...

*Organizing the application of accounting forms: Through actual surveys at traditional

medicine hospitals in Hanoi, it is shown that 100% of the accounting system is applied on

computers.

*Accounting accounts:

-Organizing selection and making a list of accounting accounts. Traditional medicine

hospitals in Hanoi use the account system according to Circular No. 10/2017. However,

accounting at traditional medicine hospitals in Ha noi when applying this accounting

account system still has some limitations:

+The opening of details for TK131 has not been unified among hospitals. This will be

difficult when the Ministry of Health collects hospital data. At Tue Tinh Hospital, the name

TK131- Receivables from customers has been kept and the details of each advance account

are opened and details of the advance account are not opened; and Hanoi General Hospital

of Traditional Medicine TK131 detail the advance account TK1311-Receivables from

patients, TK1312-Receivables from health insurance.

+The accounting accounts reflecting the professional prints of these hospitals do not clearly

separate the repository for printing for administrative and non-business activities and the

depot for serving production and business activities, services, and not yet available. There is

no reconciliation to control this activity between departments and rooms.

+ Revenue of short-term training courses is usually collected once when the activity arises,

or the rental of parking space is paid in advance in many installments, the accountant

recognizes the lump sum revenue as soon as the fee is collected, but expenses incurred later.

+ Hospitals have difficulty in recording the accounting books of the fourth quarter KCB

settlement expenses from the social insurance agency because the fourth quarter funding is

often delayed.

- Encrypting detailed accounting accounts.

Traditional medicine hospitals in Hanoi have not done well in encoding detailed accounts,

for example, detailing revenue accounts has not been able to detail each type of revenue

such as revenue of training classes, revenue. parking space for rent, ... The detailed coding of

accounts of raw materials and materials has not yet followed the general standards but

15

depending on the qualifications of each accounting unit, it will lead to inconsistencies in the

detailed coding of accounting accounts.

Bookkeeping system.

The system of accounting books of traditional medicine hospitals in Hanoi is being used

based on management needs to determine a relatively suitable number of books.

2.2.1.4. Analyzing, providing information of accounting information system.

* Providing information on accounting report: Traditional medicine hospitals in Hanoi

submit annual reports to the governing bodies such as the Ministry of Health, the Ministry of

Public Security and the Hanoi Department of Health in April annually, but the financial

statements and financial statements are usually submitted later than the prescribed time.

* Organizing analysis of information and accounting reports:

- For analyzing the situation of implementation of cost estimates: it is assessed both sides

that are efficiency and performance.

- For analyzing the situation of implementation of revenue estimates: use the norms of

revenues and funding sources to evaluate. These targets are monitored in detail from which a

salary and bonus policy is prescribed

2.2.1.5. Organization of accounting inspection.

Most hospitals do not have an internal control department, the checking of accounting

vouchers is usually done directly by the accounting department using vouchers to record

books and auditing units for documents made at accounting entries.

Currently, traditional medicine hospitals in Hanoi are eligible to perform internal audit

according to Decree 05/2019, but according to the survey, no traditional medicine hospitals

in Hanoi have conducted the internal audit.

2.2.1.6. Situations of organizing the application of IT to the organization of accounting

work.

The application of IT to the organization of accounting work of traditional medicine

hospitals in Hanoi has been 100% implemented in hospitals and well implemented the

application of drug prices and automatic service prices by software. The degree of choosing

IT application level in these hospitals is at the automation level of accounting work.

Applying IT in various stages: organizing human resources of accounting information

systems, in organizing data, processing data for information systems, analyzing and

providing information, organizing accounting checks.

2.2.2. Actual situations of organizing the accounting work of traditional medicine hospitals

in Hanoi on the perspective of management accounting.

2.2.2.1. Situations on cost classification.

According to the survey results, 100% of traditional medicine hospitals in Hanoi classify

expenses according to their spending contents, operation characteristics and autonomy to

perform accounting according to the state budget index, regardless of the criteria for

classifying expenses other than those used in management reports.

2.2.2.2. Situations on formulating norms and cost estimates

(1) The reality of setting cost norms

Establishing cost norms is the most important task for traditional medicine hospitals in

Hanoi when hospitals are given autonomy, the survey showed that 100% of these hospitals

all set cost norms and is specified in the internal spending regulations through the annual

staff meeting, after the completed comments will be carried out. The content of specific cost

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norms and construction facilities usually includes a system of quantitative norms and a

system of cost norms (money).

(2) About cost estimation

According to the survey, 100% of these hospitals make estimates based on the past.

Accounting is based on the actual operation results of the previous period and adjusted

according to the expected growth rate and inflation rate to make estimates for the next

period.

2.3. Assessing the situation of organizing the accounting work of traditional medicine

hospitals in Ha noi.

2.3.1. Advantages:

In general, the organization of accounting work at traditional medicine hospitals in Hanoi

has complied with the provisions of the Accounting Law; Vietnamese accounting regime.

Expressed through the application of accounting documents, accounting system, accounting

book system and financial statements system to improve management efficiency. On the

basis of the current accounting regime, the hospitals have guided accounting for their own

accounting in accordance with the requirements and qualifications of the accounting team in

the hospitals.

2.3.2. Defects:

(1). Restricting accounting organization access from the perspective of accounting is the

information system.

* Organizing human resources in the accounting information system.

Human resources in BMKT at traditional medicine hospitals in Ha noi have not fully

exploited the professional skills capacity of accounting workers, have not built a job position

suitable to their professional titles.

The recruitment of accounting labor contracts through document review, through

acquaintances introduced, not widely recruited, so it is impossible to accurately assess the

capacity and professional qualifications of the labor contract Math, there is not much

competition in recruiting accounting contracts.

* Data organization for accounting information systems.

The initial information collection process was not timely, delayed, and many shortcomings

led to errors in organizing the data for the accounting information system.

+ Presently, traditional medicine hospitals in Hanoi only issue one time invoice when the

patient finishes the treatment, the medical examination and hospital discharge. As such,

these hospitals have not properly implemented the time of issuing invoices in accordance

with the provisions of Circular 39/2014 / TT-BTC on sales invoices and service provision.

+ The organization of accounting vouchers has many shortcomings such as information on

dates, amounts in words,... have not been fully filled in the accounting vouchers.

+ There are many shortcomings in the payment of hospital fee payment of insurance

patients, the wrong amount of use of drugs, medical supplies, ... leading to difficulties in

paying hospital fees to the agency. Health Insurance.

+ These hospitals have not yet developed a healthcare code for each patient to track patient

information for life.

+ Hospital fee receipts have not divided hospitalization premiums and voluntary hospital

fees on the same exposure to inpatient payments. As a result, it is difficult to accurately

separate the revenues and costs of each activity.

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Moreover, many fixed assets are used at the same time for both non-business and service

activities. Therefore, the accountant cannot correctly allocate the depreciation value of fixed

assets to the origin of fixed assets.

+ Many hospitals still lack documents to compare expenses for medicines, blood, fluids,

chemicals, consumable materials to patients. So at the time of payment, the patient is unclear

what drugs he or she has been treated for, how they cost, ...

The preservation is still due to the accounting of the self-preservation part, the archives are

not scientific, not systematic. Some archives that have expired are not yet destroyed.

* Organizing data processing in accounting information systems.

Since 2018, traditional medicine hospitals in Hanoi have applied the accounting regime

according to Circular 107, accounting has applied the system of accounts which has not been

consistent with the content, organizing accounting and applying the regime in the unit.

Sometimes it is still subjective of each person working in different parts.

- About the organization of the accounting account system.

+ Accounting information in the process of receiving and processing via the accounting

account system has not been consistent. The hospital fee advance by patients is accounted by

the hospitals in account 131- Receivables from customers. The details of TK131 have not

been unified among traditional medicine hospitals.

+ Traditional medicine hospitals have specific characteristics in using traditional medicines

to treat patients. In order to achieve a high efficiency in treatment, some hospitals have

prepared their own traditional medicines, but at present, accountants are still confused and

there is no consensus in using accounts to reflect the preparation process. Traditional

medicines lead to difficulty in calculating post-dosage drug prices and are not yet

responsible for calculating the rate of drug loss during the preparation process.

+ Traditional medicine hospitals in Hanoi conduct training courses for short-term

professional certificates, this revenue is collected once at the beginning of the period and is

recorded by the accountant as the right turnover at that period, because the cost of this

training activity usually lasts for the following accounting periods; or rental of car park

premises upfront for many accounting periods. Thus, the recognition of this revenue is not

true of the time of recording revenue and expenses.

+ In the hospital, patients often do not have treatment at the end of the course, do not pay for

hospital discharge, cause financial losses, the accountant has not agreed with the accounting

method and has not opened a separate account to monitor the hospital fee This loss for each

patient object. This loss is often used by hospitals to help offset costs.

+ These hospitals have not set up a specific fund (the fund to support the poor) to help

patients in difficult circumstances. The support for poor patients is mainly from the Welfare

Fund.

+ Traditional medicine hospitals have not yet agreed to set a detailed code of raw material

accounts and have not yet coded drugs to comply with the regulations of the Ministry of

Health so it has not created a synchronization in the medicine management system of the

whole health sector .

- About the organization of the accounting book system Accounting books, when printed,

sometimes lack the date of recording, signatures of book makers or chief accountants and

heads of units; Many documents are not stamped.

+ About the detailed accounting book.

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In addition to using the right type of general accounting books according to the State's

regulations, the system of detailed books at these hospitals has not been fully opened and

detailed, such as detailed book of corporate income tax and value added tax, detailed book

of revenue, detailed record of hospital fee voluntarily

* Analyzing and providing information of the accounting information system. The provision

of financial information of traditional medicine hospitals in Hanoi through the financial

statements and financial statements system. The Ministry of Health relies on the size of the

hospital to submit financial statements that are appropriate for each unit, but hospitals

usually submit it later than the prescribed time.

- Regarding the organization of information analysis: these hospitals have only used

comparative methods and ratios to analyze the content on the financial statements, not using

many other methods.

* Organizing the accounting inspection. These hospitals have not established regular

inspection plans and internal inspection departments, accounting checks usually focus on the

initial information collection and processing stage, only at the perspective of comparing

documents in accounting at the beginning stage, checking the process of setting up the

financial statements, financial statements, checking responsibilities, work results of the

accounting apparatus; Check asset management policies and use of hospital resources.

Traditional medicine hospitals have not yet performed internal audit in accordance with the

provisions of Decree 05/2015 / ND-CP of January 22, 2019.

* Organize application of IT in accounting information system.

+ Accountants are not really proficient in all accounting practice in computer software, as

well as features on hospital management software,... so the implementation of accounting

reports Payment is limited.

+ The computer system used for organizing accounting work has been out of date.

+ This software has not been exploited to use all features such as using automatic

prescriptions, electronic medical records,...

+ There is no connection to update accounting data from hospital management software into

insurance software.

+ The bank has not yet made payment for medical examination and treatment.

+ Not yet fully used the features of accounting software in analyzing and providing

accounting information.

+ The IT application has not been well implemented in the organization of accounting

inspection due to the limited qualifications of people doing accounting inspection.

(2). Restricting the organization of accounting work from a management accounting

perspective.

Despite achieving certain successes, the introduction of management accounting as a

management tool and part of the accounting information system in traditional medicine

hospitals in Hanoi remains fragmented, small, even executives as well as accounting

practitioners are not aware and aware of this.

First: About operating cost classification.

Hospitals have just ceased at cost classification according to the economic content in

accordance with the state budget index for recurrent and non-recurrent expenditures,

originating from the state budget. However, for the service production and business

activities, the cost classification is not applied according to the economic content of the

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expenditure according to the control requirements of each hospital and the cost classification

criteria have not yet been classified. by function and by activity level. In order to use cost

information by activity level, mixed costs must be separated into variable and fee variables.

Second: About the method of determining costs

The cost of operation is determined by the method of determining the cost by process, per

patient. The process cost determination only collects direct costs (cost of medicine,

consumable medical supplies, remuneration, outside doctors, etc.) and a number of identified

expenses according to the norm (bandage, gauze, ....). Many expenses cannot be determined

or allocated to each patient. Accounting of the collection of costs, calculating the cost of

curative care services as required by the unrealized expenditure items, it is difficult to

properly assess the effectiveness of medical examination and treatment activities as required.

Third: About setting cost norms

Regarding the norm making department: mainly functional sections such as the general

planning department, the research department have not had the effective participation of the

accounting department. The construction of cost norms that are of particular interest to all

hospitals has developed internal spending rules. Most of the regular duties were quantified

and unit prices.

Fourth: Regarding construction of cost estimates

Regarding estimation department: mainly accounting department, not much reference from

other functional departments.

Basis of cost estimation: The estimation based on the State's norms has not been changed in

many years, so the estimation levels of some items are no longer suitable to the reality, not

flexible yet. . This affects the timely decision making of the administrator.

Regarding the process of estimating: In these hospitals, the estimation is carried out in the

order from the department / department and the final decision-maker is the hospital leader.

With this process, the budget estimator tends to make unsuitable estimates with the actual

ability to achieve, the cost estimates are higher or lower than the actual costs. Accordingly,

the difference between revenues and expenditures will achieve the results as estimated. This

reduces the control of estimation information.

2.3.3. Causes of limiting the organization of accounting work in traditional medicine

hospitals in Hanoi.

Objective reasons

Firstly, the State's legal policies are not complete.

Secondly, the mechanism of autonomy and self-responsibility for organizational structure

and finance can lead to the organization of the accounting system according to the

subjectivity of the hospital.

Thirdly, Awareness of socialization is not sufficient.

Subjective reasons.

Firstly, the qualifications of the personnel engaged in accounting work are limited and

uneven.

Secondly, the coordination between the accounting department and other departments in the

institute is still not scientific, leading to the inadequate timely rotation, checking and

processing of documents and much delay.

Third, internal spending regulations have not been fully effective.

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Fourthly, the work of accounting and internal audit has not been focused on, so that the

examination is still formal and perfunctory, not promoting the effectiveness of inspection

and auditing.

Fifth, there is no encouragement the effective application of IT in the organization of

accounting work.

Sixthly, the accounting management system has not been paid due attention yet.

CHAPTER 3: IMPORVING THE ACCOUNTING ORGANIZATION OF THE

TRADITIONAL MEDICINE HOSPITALS IN HANOI

3.1. Development orientations, requirements to improve the accounting organization of

traditional medicine hospitals in Ha noi.

3.1.1. Orientation for development of traditional medicine hospitals in Ha noi.

3.1.2. Principles of perfecting the organization of accounting work at traditional medicine

hospitals in Ha noi

3.2. Some solutions to improve the accounting organization of traditional medicine

hospitals in Ha noi.

3.2.1. Perfecting the accounting organization, approaching from the perspective of

accounting is the information system.

3.2.1.1. Improve the organization of human resources in the accounting information system.

- Determine the BMKT function and tasks of each accounting practice section.

- The need to use accounting personnel should be based on the actual workload of the

hospital, along with professional qualifications and job requirements in each accounting

section.

- Accounting organization should pay attention to financial accounting organization

combined with management accounting in the unit.

3.2.1.2. Complete data organization for the accounting information system.

- Firstly, the organization builds uniformly the list of accounting vouchers and accounting

voucher forms. Complete the system of vouchers applied at the unit under the guidance of

the current accounting regime, supplement a number of voucher forms as a basis for

accounting a number of arising accounting objects in the unit.

- Secondly, complete the organization of accounting documents about: the time of issuing

hospital bill payment, information, hospital fee payment documents, other payment

documents such as surgical, surgical bill payment sheets, techniques, calculation and

distribution of the value of depreciation, depreciation of fixed assets, vouchers of payment of

expenses for drugs, blood, fluids, chemicals, consumable supplies for patients.

- Thirdly, check accounting records.

+ Develop a method to classify and arrange documents in a logical way.

+ Need to classify and encode accounting vouchers in order to organize according to the

types of vouchers, meeting the data collection of each accounting practice section.

+ Need to review the information on vouchers, in addition to ensuring the legality of

documents, also ensure the compatibility between the information on vouchers and the

actual business arising of each responsible department in the hospital. .

- Fourthly, organize the rotation of accounting vouchers.

+ Clear assignment and development of a process of rotating scientific vouchers, suitable to

the characteristics, operational scale and organization of the unit.

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+ Specifying the time limit for the rotation of written documents within the hospital as in the

case of exporting using medicine supplies, synchronous combination of solutions on the

detailed account design, the delivery notes will be transferred. for the accounting department

to record the book right after the export operation has arisen.

- Fifth, organize the preservation and archiving of accounting records.

+ Developing regulations on management, use and preservation of accounting documents,

which clearly define responsibilities and rights for each department and each accountant.

+ Storing accounting vouchers and accounting documents into archives for 12 months from

the end of the annual accounting period or the end of accounting jobs. The legal

representative of the accounting unit is responsible for organizing the preservation and

archiving of accounting documents.

+ Destroying overdue vouchers and accounting documents which must be archived

according to regulations.

3.2.1.3. Improve the organization of data processing for accounting information systems.

Traditional medicine hospitals must record assets, liabilities, net assets, turnover and

expenses according to the accrual accounting principle: Accordingly, all of the hospital's

economic and financial operations related to assets , liabilities, net assets, revenues and

expenses must be recorded in accounting books at the time of arising, not on the basis of

actual collection or actual payment of cash or cash equivalents.

The recording of revenue and expenses for medical examination and treatment must

be compatible with each other. Hospitals must follow the appropriate principle, that is, when

recognizing a revenue, a corresponding cost associated with that revenue must be recorded.

Costs corresponding to turnover include expenses of the period in which revenue is

generated and expenses of previous periods or expenses payable but related to the turnover

of that period.

Recognition of revenue from medical examination and treatment: Not recognized at

the end of the accounting period with regard to patients who are continuing medical

examination and treatment at the end of the accounting period; (ii) For the revenue from

payment of the health insurance fund for patients who are entitled at the end of the

accounting period, it has not been recognized or not fully recorded the unpaid social

insurance agency due to concerns of the unapproved part when making final settlement. .

Improving the organization of the technical design system to use, such as completing

accounting for hospital fees with patients, completing material accounts, accounting of

revenue sources, completing the time of revenue recognition and accounting revenue

sources, finalizing the accounting for transferring revenues to funds, completing the

organization of detailed coding of accounts, perfecting the organization of the accounting

document system.

3.2.1.4. Perfecting the organization of analysis and provision of information of the

accounting information system.

- Upgrading the provision of information: improving the time of preparation and submission

of the financial statements, improving the financial statements explanation, improving the

publicity of the financial statements.

- Perfecting the organization of financial statement analysis: an independent financial

analysis department which is an accounting department and its employees must understand

the finance and have experience in financial work; The analysis of financial statements

22

needs to be more detailed and considered in a broader perspective such as analyzing the

efficiency of using the funds, the volatility of assets, etc.

3.2.1.5. Perfecting the organization of accounting inspection.

The inspection is only effective when the leader in charge of accounting clearly determines

the purpose and tasks of the financial and accounting inspection. Select the form of self-

examination to suit the organizational characteristics of the unit. Unit testing format can be

selected by time or scope of work. Determine the content and method of implementation.

Internal audit must be performed in accordance with Article 9, Section 1 of Decree 05/2019 /

ND-CP dated January 22, 2019 on internal audit.

3.2.1.6. Improving the application of IT to the organization of accounting work.

3.2.2. Improving the organization of accounting work from the perspective of management

accounting.

- Solutions to cost classification: Classify costs according to the relationship of costs with

activity level, cost classification according to the ability to charge expenses into medical

expense bearers of medical examination and treatment services.

- Solutions on norm construction and cost estimation.

3.3. Conditions for implementation of perfect solutions.

- There is a must comply with the Accounting Law as well as legal documents, regulations

of the State, and have access to international practices.

- There is a must ensure the consistency between financial information and information on

the use of budget funds in the system of revenue-generating administrative and non-business

units.

- There is a need to ensure the appropriateness of the characteristics of traditional medicine

hospitals.

- There is a must be consistent with the regulations on the autonomy mechanism of public

non-business, according to the development orientation of the health sector in general and

the traditional medicine industry in particular, pioneering traditional medicine hospitals in

Ha noi .

3.3.1. On the side of the State and regulatory agencies.

- First: Improving policies and mechanisms for traditional medicine hospitals.

+ For the Ministry of Finance: It is necessary to promulgate specific guidelines on the

autonomy mechanism for the health sector in general and traditional medicine hospitals in

particular in accordance with Decree 16/2015 / ND-CP. The State should promulgate

specific documents guiding the implementation of socialization in the health field on capital

mobilization policies, preferential policies, tax policies, rates, and time of capital recovery of

investors. ... strengthen cooperation with foreign partners in the field of health, especially

traditional medicine and pharmacy.

+ For the Ministry of Health: The Ministry of Health shall coordinate with units to set up a

price bracket for on-demand medical examination and treatment services, service prices at

establishments conducting joint-venture socialization, link of the unit

The Ministry of Health should coordinate with the Vietnam Social Insurance agency to

continue speeding up the roadmap and soon complete the correct and full calculation of

costs in the price of medical services, and at the same time ensure the rights of patients.

+ For social insurance agency: The social insurance agency needs to assign appropriate cost

estimates for medical examination and treatment with health insurance. The social insurance

23

agency needs to make advance payment and settlement of expenses of medical examination

and treatment with the health insurance for the medical examination and treatment facilities

in accordance with the provisions of the Health Insurance Law and the legal documents

implemented under the Law.

- Second: Improving the legal framework on accounting

The State needs to improve the legal framework system to conform to the trend of

international economic integration to ensure adequate, systematic, standardized and

comparable financial information. At the same time, building a legal framework on the

accounting regime to ensure that the accounting work is carried out in accordance with the

law, with consistency in the whole health sector in general and traditional medicine hospitals

in particular.

It is necessary to study and improve to ensure the rationality, feasibility and

consistency of the accounting system, forms of vouchers, accounting books, and financial

and accounting reports suitable to the IT development conditions. Currently, in line with

international public accounting standards.

The application of IT in hospitals and health care facilities is a management policy of

the medical industry that still has many problems when hospitals want automation. Besides,

there are difficulties in capital, especially public hospitals are constrained in spending and it

is not easy to find budgets to implement informatics projects. Therefore, the authorities need

to invest a stable source of funding for hospitals to implement the application of IT to

connect between hospitals and functional agencies such as the Ministry of Finance, the

Ministry of Health, and Medical Insurance. International, Taxes, ...

3.3.2. On the traditional medicine hospitals in Ha noi.

Traditional medicine hospitals in Ha noi shall base themselves on the operation scale

and characteristics to organize accounting work suitable to the scale and type of operation,

suitable to the financial regime, maximizing promotion. Multi-effect resources.

Traditional medicine hospitals in Ha noi should develop internal spending rules in

accordance with the autonomy mechanism and the documents guiding the current spending

norms of the Ministry of Finance.

Improve the quality of accounting human resources to ensure quantity and quality.

Traditional medicine hospitals in Ha noi ought to strengthen financial management

capacity for managed subjects and carry out the appointment of the chief accountant in

accordance with the law.

Traditional medicine hospitals in Ha noi also need to recognize the importance of

management accounting in the financial management of the unit. Since then, building a

competent management accounting organization organization to collect, process and provide

management accounting information in a timely manner, helping leaders make the right

decisions suitable in their development orientation.

Based on Decree 05/2019 ND-CP dated January 22, 2019, these hospitals to perform

internal audits to help control the their accounting work in accordance with regulations.

These hospitals have to strengthen IT applications in financial management in

hospitals. Promote IT application with building and linking the software "Hospital

Management", "Patient Management" and "Accounting" software, etc.

24

CONCLUSION

Accounting organization in public non-business units is crucial in planning the

strategies for developing financial sources; at the same time, they need to help the Board of

Directors and ministries to have the right orientation in managing and using financial

resources, expanding and developing the size of the unit. Therefore, the completion of

accounting organization of public hospitals in general and traditional medicine hospitals in

Ha noi in particular is indispensable, consistent with the trend and orientation of economic

development of our country. Because of these, the author chose the research topic:

"Improving the organization of accounting work in traditional medicine hospitals in Ha

noi", the thesis has solved the following issues:

Firstly, the thesis has summarized and presented in a comprehensive and systematic

manner the concept, classification, operating characteristics and financial management

mechanisms in public non-business units, clearly identifying the influential factors affecting

the organization of accounting activities of public non-business.

Secondly, the accounting information system is an important tool for public non-

business units to identify their strengths and build a long-term development strategy.

Accordingly, the content of the accounting organization is approached by the author on two

angles: accounting organization approaching from the accounting perspective is the

information system and organization of accounting work from the perspective of

management accounting. The author stated that accounting access organization in terms of

information system includes human resource organization for information system, data

collection organization, data processing organization, distribution organization, analyzing

and providing information, organizing the accounting inspection and the application of

information technology in the organization of accounting work; The thesis chooses the

approach of organizing management accounting work according to the management process

associated with the types of activities that generate revenues and expenditures of a public

non-business, this approach is provided useful information of management accounting for

each stage of the management process, serving the management function in controlling each

type of activity of a public non-business.

Thirdly, the thesis presented an overview of the system of traditional medicine

hospitals in Ha noi on the organization of operation, management apparatus, financial

management mechanism and factors affecting accounting the organization of traditional

medicine hospitals in Hanoi.

Fourthly, through studying the situation of organizing accounting work in traditional

medicine hospitals in Ha noi by qualitative research methods including statistics,

description, analysis, comparison, and comparison, projection, .. and quantitative methods

include: surveys, interviews, observations, ... from which data analysis methods are used to

assess the advantages, limitations and basic causes of real that situation for these hospitals.

Fifthly, the thesis proposes solutions and implementation conditions to improve the

organization of accounting work of Traditional Medicine hospitals in Hanoi. The author is

particularly interested in solutions on policies such as autonomy mechanism, fee conversion

mechanism of health service units, agreed guidance on the implementation of the circular on

accounting regime. In general, the health sector and traditional medicine hospitals in

particular so that these hospitals can develop sustainably in the current autonomy

mechanism.

1

LIST OF WORKS PUBLISHED BY THE AUTHOR

RELATING TO THE THESIS

I. Scientific works: 1. Nguyen Thi Phuong Anh (2019), "Organizing accounting work at public traditional medicine hospitals", Journal of Finance, (No. 704, May 2019), pp.129-131. 2. Nguyen Thi Phuong Anh (2019), "Factors affecting financial management at public traditional medicine hospitals", Journal of Finance, (No. 700, March 2019), p.45-47. 3. Nguyen Thi Phuong Anh (2019), "Improving the efficiency of financial autonomy at public traditional medicine hospitals", Journal of Finance, (No. 698 + 699, February 2019), p. 223-225. 4. Nguyen Thi Phuong Anh (2015), "Finalizing corrective entries at the acquisition date when the right to control is achieved through multi-investments in Vietnamese economic groups", Journal of Finance - Accounting Research, (No. 10_147 / 2015), p. 23. 5. Nguyen Thi Phuong Anh (2012), "Improving the organization of accounting work at Tue Tinh Hospital", Academy of Finance, Master's thesis.