Cost accounting and caculating the cost of training services at universities and educational institutions under the ministry of finance

le; education quality; Training time; training industry / group; the structure of the training industry; the size and qualifications of the trainers; regions, areas, districts; mechanisms for management of higher education institutions; infrastructure, equipment, teaching facilities and other factors. 1.2.4.2. Factors affecting the cost accounting and cost of public university training services 1.2.4.2.1. Factors inside the training institution Management organization and administrator's information needs; Scale and structure of university training service activities; organization of the accounting and the capacity of managers, accounting staff and application information technology in accounting 1.2.4.2.2. Factors outside the training institution Legal environment; international integration process and competitive environment 1.3. COST ACCOUNTING CONTENTS AND CACULATION OF COST AT PUBLIC UNIVERSITIES’ TRAINING SERVICES 1.3.1. Object of cost accounting and caculation of cost 1.3.1.1. Cost accounting object Object of cost accounting aimed at the goal of aggregating costs and caculation of cost of higher education services can be: each lesson, each credit, each module, each student, each class, each faculty, each faculty / major, each course or training institution. The object of cost accounting aimed towards budget management goals can be the state budget estimates and list es. 1.3.1.2. Cost subjects The object caculation of cost of public tertiary training services is the service volume, the completed volume of work that requires the caculation of cost and unit cost. Usually, the total cost of public tertiary training services is determined for the whole course, the whole academic year; Unit costs are determined for a timely graduate. 9 1.3.2. Cost accounting method and cost calculation 1.3.2.1. Cost accumulation method Depending on the relationship between the costs of higher education services incurred with the objects that have been identified as each academic year, course,... the accountant applies the direct or indirect method to accumulate costs according to different cost accumulation accounting systems. When allocating indirect costs, the exact level of costs allocated to the objects depends on the choice of the unit's allocation criteria. There are many indirect costing views, namely, the allocation of costs based on the volume-based approach and the allocation that determines the cost on an activity basis. o Indirect cost allocation based on volume o Indirect cost allocation based on activity basis 1.3.2.2. Cost accounting method In terms of the data base to cost calculation, there is the actual cost calculation method, the normal cost method and the standard cost system. Considering the range of data to calculate the cost, there are methods to calculate the total cost calculation; variable cost calculation method. 1.3.3. Cost accounting and cost calculation techniques Cost accounting and cost calculation generally use two techniques including: - Cost accounting and costing by job costing. - Cost accounting and costing by process costing 1.3.4. Collecting, processing, systemizing, providing cost and cost accounting information 1.3.4.1. Cost accounting and cost caculation process 1.3.4.2. Collecting cost accounting and cost caculation information The training institutions actively apply the accounting voucher system in accordance with their own accounting requirements, (may) need to set up (organize) their own voucher system to collect information for their own use. Of management accounting (for example, related information is more detailed and there are indicators on financial accounting documents that have not been collected, or information related to the future...). 1.3.4.3. Processing, systematizing, providing cost and cost accounting information The task of processing, systematizing and providing cost and cost accounting information for training services in public tertiary institutions is accomplished through the combined and flexible application of methods, general accounting tools and techniques such as accounting method, price calculation 10 method, Balance sheet method, techniques for presenting information into comparable tables, presenting information in form of graphs, charts, diagrams,... CONCLUSION OF CHAPTER 1 With an important role of building theoretical framework, chapter 1 of the dissertation has presented three basic contents that underpin the whole study, including: - Systematize, analyze and develop the basic theory of public universities and training services, including clarifying the theory of services, public services, public universities’ training services and public universities under the Ministry of Finance. - Present an overview of cost accounting and cost caculation of public university training services in sequence: basic concepts; identify and classify costs and costs of public university training services; the relationship between the cost and cost of public university training services; factors affecting costs, price and cost accounting, price of public universities’ training services - Systematize, analyze the content of cost accounting and the cost caculation of universities’ training services, in which, focus on detailed contents such as: object clarification, method, collection technique and determine costs, calculate the cost of public university training services; cost accounting processes, cost calculation and task collection, processing, systematization and provision of cost accounting information and cost of university training services. These theoretical issues are the basis for consideration and assessment of the current state of cost accounting and costing of public tertiary training services at public tertiary institutions directly under the Ministry of Finance in the chapter 2, as well as proposing complete solutions in chapter 3 of the dissertation. Chapter 2 CURRENT SITUATION OF COST ACCOUNTING AND COST CALCULATION AT UNIVERSITIES’ TRAINING SERVICES AT THE TRAINING INSTITUTIONS UNDER THE MINISTRY OF FINANCE 2.1. OVERVIEW OF UNIVERSITY TRAINING INSTITUTIONS AND UNIVERSITY TRAINING SERVICES AT THE UNIVERSITIES UNDER THE MINISTRY OF FINANCE 2.1.1. Overview of higher education institutions under to the Ministry of Finance The system of public tertiary training institutions under the Ministry of Finance is an integral part of the national education system, with important contributions to training, improving people's knowledge and fostering talents in the financial sector, effectively serving the industrialization, modernization and 11 international economic integration of the home country throughout the process of its construction and growth. 2.1.2. Overview of university training services at training institutions under to the Ministry of Finance - The period of applying the state budget law 1996 and earlier - The period of application of the State budget law 2002 - The period of application of the State budget law 2015 2.1.3. Organizing and managing tertiary training services at training institutions under the Ministry of Finance Public tertiary institutions directly under the Ministry of Finance are multipurpose, multi-service providers. In addition to the main activity of providing university training services, public university training institutions directly under the Ministry of Finance also provide a wide range of services such as training, scientific research,... It can be seen that university training service is the most basic and essential activity of each training institution. Other types of services are developed and come with higher education services. The quantity and quality of these activities are influenced and greatly influenced by the training activities. In addition, the training activity itself in each training institution includes many different levels / training systems such as: associate, in-service, degree,... Public university training institutions have operated, monitored and managed separately these types of services through the organization of focal points such as: Training Management Board in charge of establishment and management, training plan, scientific management board to undertake tasks related to scientific research and journals,... Considering the university training activities alone, the public university training institutions under the Ministry of Finance also assigned their own focal points, which are the student management faculties, in charge of management by each level / system / industry / specialized training. However, these focal points are only responsible for student management (ie training products) in administrative activities, scientific research, literature..., while the actual training service provision process is undertaken by the disciplines. 2.1.4. Characteristics of university training services in economic sector affecting cost accounting and costs of higher education services at training institutions under the Ministry of Finance Public tertiary institutions directly under the Ministry of Finance are all public non-business units providing higher education services in the economic sector. In general, the economic sector tertiary training services have the main characteristics that differ from other higher education majors in that: 12 - Training time, training program, basic knowledge system and complementary knowledge... in economic sector is quite homogeneous. - Class sizes are often not limited as small as basic science training due to low requirements for experiments and expensive equipment. - Average training costs are usually smaller than those in basic science, medicine,... These specific characteristics affect the process of determining costs and calculating cost for public higher education services in specific economic sectors as follows: - The system of basic and complementary knowledge is quite uniform, training programs and training time among majors are equivalent, so the unit cost for each basic knowledge field is determined. It is feasible to calculate service prices among majors - However, it is also because the training process and program are quite homogeneous, making the separation or distribution of common costs among cost objects (such as majors, faculties, classes, or students ) is quite difficult because determining the criteria of allocation is not easy. 2.2. THE CURRENT SITUATION OF COSTS ACCOUNTING AND COST CALCULATION OF UNIVERSITIES’ TRAINING SERVICES AT THE TRAINING INSTITUTIONS UNDER THE MINISTRY OF FINANCE 2.2.1. Current status of legal regulations on cost accounting and cost calculation of public university training services It can be affirmed that there is a legal basis to serve the requirement of determining costs, calculating the cost of education and training services in general, and university training services in particular. 2.2.2. The status of classification of universities’ training service costs and costs 2.2.2.1. The situation of universities’ training service cost classification Particularly in the higher education service activities, since education and training services are removed from the list of fees and charges; subject to the price law; Higher education services are identified by public university training institutions under the Ministry of Finance as production and business activities, so the service costs of higher education services are also identified is the cost of production and business activities. Accordingly, the cost of higher education services of public higher education institutions under the Ministry of Finance is divided according to: (i) funding source, (ii) nature of expenses, (iii ) cost factor, (iv) list of state budget 13 2.2.2.2. The situation of cost classification (tertiary training service) Public tertiary training institutions under the Ministry of Finance have not determined and classified the costs of higher education services. 2.2.3. The current situation of determining the objects of cost accumulation and calculating the cost of universities’ training services 2.2.3.1. The reality of determining the higher education service expenses All public tertiary training institutions under the Ministry of Finance are complying with the regulations of the administrative and non-business accounting regime issued under Circular 107 as well as regulations on accounting and money management. Accordingly, public tertiary training institutions determine the object that accumulates the cost of higher education services according to the estimate, according to the State budget's list, the accounting object is the account or the whole institution. The common characteristics of the objects of cost accounting in public tertiary training institutions directly under the Ministry of Finance are now aimed at implementing the requirements of the administrative and non-business accounting regime issued under Circular 107, state budget management requirements; but not for the purpose of calculating the cost of university training services. 2.2.3.2. The situation of determining the object of cost caculation for higher education services Subjects to calculate the cost of higher training services have not been specifically established at training institutions. 2.2.4. Current status of cost accounting and cost caculation methods 2.2.4.1. Current status of cost accounting methods Because the public tertiary training institutions affiliated to the Ministry of Finance determine that the subject that accumulates the costs is the entire training institution, so when it is incurred, the actual costs are gathered and recorded for the whole institution. This means that there is no indirect cost allocation in the accounting duties. 2.2.4.2. Actual situation of cost calculation method At public tertiary training institutions under the Ministry of Finance in the period of 2018 - 2019, the accountant will accumulate actual expenses incurred 14 for the entire training institution in accordance with the administrative unit’s accounting systems, but the cost calculation object is not clearly defined. 2.2.5. Collecting, processing, systematizating and providing of accounting information about costs and cost caculation of university training services 2.2.5.1. Current status of the process of cost accounting and cost caculation of training services 2.2.5.2. Actual collection of cost accounting information and costs of university training services (through accounting documents) Public university training institutions under the Ministry of Finance have developed a relatively scientific and reasonable accounting voucher system to facilitate the collection of sufficient and timely information on the financial situation on the basis of bookkeeping. However, the voucher system for cost accounting and the cost of higher education services in particular is still weak. 2.2.5.3. Current situation of processing, systematizing and providing cost and cost accounting information for university training services Account accounting Accounting books Accounting report Public institutions of higher education under the Ministry of Finance only make financial statements as required by Circular 107, products of cost accounting and cost calculation of higher education services such as newspapers, cost reports and price reports have not been formed. Therefore, accounting information on costs and costs of university training services is a huge gap. 2.2.6. The reality of using cost and cost accounting information for university training services to serve unit administration Accounting information of service costs and costs is almost not available, how can it be used to manage the unit? 2.3. DETERMINATION OF EXPENSES AND PRICE OF UNIVERSITY TRAINING INSTITUTIONS UNDER THE MINISTRY OF FINANCE IN THE PERIOD 2018 - 2019 From the content of analyzing the current state of cost accounting and calculating the cost of university training services at training institutions under the Ministry of Finance in the period of 2018 - 2019 (presented in section 2.2), it can be confirmed: 100% of the training institutions affiliated to the Ministry of Finance have not announced the final product of cost accounting and the cost of higher education services are the cost reports, the cost of training services. However, training institutions have sufficient grounds, foundations and 15 conditions to fully determine costs and calculate costs of higher education services. Therefore, in this section, the dissertation is based on actual data of training institutions under the Ministry of Finance to determine costs and calculate the cost of higher education services as follows: - Determine the total cost of training - Determine the training scale based on normative coefficients - Determine the cost of training units / standard students * Limitations in determining training costs based on cost accounting documents of higher education institutions directly under the Ministry of Finance Based on the data obtained from the detailed books of accounts reflecting expenses (154, 611 and 642) at training institutions under the Ministry of Finance, the dissertation presents the steps to determine the total training costs and unit / student training costs converted at 2/4 training institutions under the Ministry of Finance representing 2 groups of institutions with high financial autonomy, piloted according to the Resolution. 77 (University of Finance - Marketing) and group of other training institutions (financial academy). Calculation results are considered suitable for the conditions and characteristics of each training institution. However, this result still has certain limitations, stemming from the limitation of input data sources such as: - Lack of number of cost items - The value of expenses is based on the standard of the state budget, does not reflect the actual cost needs of the training institution and cannot be separated by different cost aggregators. - The identification and classification of costs is not based on the need to calculate the cost of higher education services, only towards compliance with the law. 2.4. ASSESSMENT OF COST ACCOUNTING AND CALCULATION OF COST OF UNIVERSITY TRAINING SERVICES AT THE TRAINING INSTITUTIONS UNDER THE MINISTRY OF FINANCE 2.4.1. Achievements First, there is a policy mechanism for calculating public non-business service prices; The legal document system has been gradually supplemented and completed. Second, the new administrative and non-business accounting regime issued under Circular 107/2017 / TT-BTC has partly met the requirement of accounting for public university training service costs. 16 Third, the public tertiary training institutions directly under the Ministry of Finance all have their own accounting apparatuses, ensuring the content of accounting work. In addition, these training institutions also use the same internal accounting software of the Ministry of Finance (built by FPT Corporation), so they have many advantages in checking, comparing, or reporting. Detailed data to the governing body is the Ministry of Finance. Fourth, public tertiary training institutions have actively organized to set cost standards for each activity, through the development of internal spending regulations, regularly adjusting and supplementing on the basis of updating. State regime and financial capacity of each unit. 2.4.2. Limitations 2.4.2.1. Limited cost identification and classification Public tertiary training institutions under to the Ministry of Finance only focus on recording expenses actually incurred as required by financial accounting, according to the regulations of the administrative and non-business accounting regime issued under the Circular 107; not towards the content of controlling and managing the internal service costs of the unit. 2.4.2.2. Limitations in accumulating the cost and cost caculation The service costs in general and the university training service costs in particular are not determined. 2.4.2.3. Limitations in applying cost accounting methods and cost caculation This can be considered as a consequence of the two limitations (identification, cost classification and objects of cost accumulation, cost calculation) analyzed above. Limitations in applying cost accounting methods The training institutions only use the method of directly aggregating actual arising costs for the whole training institution, without the content of indirect cost allocation in the accounting duties. Accordingly, the accountant cannot provide information about the cost of training services, serving to calculate the cost of training services. Limitations in applying cost accounting method The theory of price shows many methods and techniques of costing accounting, however, these contents have not been applied in public university training institutions under the Ministry of Finance in 2018 - 2020. 2.4.2.4. Limitations in the construction and implementation of cost accounting and cost caculation processes The cost accounting process is simple, does not serve a price target. 17 2.4.2.5. Limited in collecting, processing, systematizing and providing cost and cost accounting information Not aiming at cost accounting and service costing purposes. 2.4.2.6. Limited work in cost estimation and price volatility analysis New training institutions only make cost estimates as required by the budget cycle, for all activities that receive funding from the state budget. Not paying attention to the construction of cost estimates for training services, in order to build a basis for calculating costs and costs of training services. 2.4.2.7. Limitations on analysis and use of information in cost management 2.4.2.8. Limitations in identifying training products The basic concepts to determine service charges such as finished products, defective products, and unfinished products have not been identified. 2.4.2.9. Limitations in determining the conversion coefficient to standardize, serve as a basis for determining costs and prices of training services - Uniform products and services for higher education: for different products such as full-time students, associate, in-service,, high quality - Expense items such as: standard teaching hours (hours of practice, time of scientific research, hours of instruction for practice,...); or teacher conversion coefficient ( trainee, lecturer, main lecturer, reporter,...) 2.4.3. The cause of the restriction 2.4.3.1. Inadequacies in the financial and accounting management mechanism The regulation of tuition fee ceiling in Decree 86/2015 is causing training institutions to lose their motivation in cost management and cost of training services, especially with self-sufficient training institutions owner is not high. 2.4.3.2. The need for information on cost accounting and higher education service costs is not clear 2.4.3.3. The lackluster role of management accounting 2.4.3.4. Accounting techniques are not suitable CONCLUSION OF CHAPTER 2 Derived from the overview of public higher education institutions under the Ministry of Finance and overview of higher education services at these institutions, combined with the theoretical background of chapter 1, Chapter 2 of the dissertation has clarified the "picture" of the current situation of cost accounting and cost calculation of higher education services at training 18 institutions under the Ministry of Finance in the period from 2018 to the first quarter of 2020 ( mainly in the period of 2018 - 2019) on the basis of actual accounting survey at public tertiary training institutions directly under the Ministry of Finance, according to the basic contents of cost accounting and calculation of translation costs university training services such as: - Actual status of cost and price identification and classification - Current situation of determining cost-gathering subjects and price- calculating subjects - Current status of cost accounting methods and cost calculation - Collection, processing, systematization and provision of cost accounting information - Current situation of using cost and cost accounting information for administration Thereby, as a basis for reviewing a