ORGANIZING COMMITTEE
3. SOME SOLUTIONS TO ENHANCE FINANCIAL AUTONOMY IN NON-BUSINESS EDUCATION UNITS IN BAC KAN PROVINCE
36 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...
- The facilities at the schools only meet about 54% of the actual needs, especially with the new curriculum, it is necessary to design separate rooms to study subjects. Especially, there is a considerable lack of teaching and learning equipment which has no budget to be allocated for.
The current national target program only allows repair, rather than new construction, but with the current physical condition, it cannot be repaired on the base of thatched cottages.
- Although the units have implemented the classification of expenditures according to regulations, most of the units have not differentiated between the two concepts of expenditure and cost, leading to some limitations in accounting work such as: uncalculated depreciation and inseparated other expenses. Therefore, the units have not been able to calculate the cost of services provided by their units.
- With the characteristics of a difficult mountainous province, it is very difficult to develop public services without using the state budget in the field of education and training in Bac Kan. For public services using the state budget, it is not possible to establish technical and economic norms of these services, and there is no basis to determine the price of education and training services in the province.
- Currently, Bac Kan Provincial People’s Committee has not issued a list of public non-business services using and not using state budget funds for the field of education and training in the area. The latest document on this issue is the Official Dispatch No. 1818/SGD&DT-KHTC dated August 19th, 2021 of the Department of Education and Training explaining the draft proposal to promulgate a list of public services using the state budget in the fields of Education &
Training. This is a significant obstacle in the process of organizing professional activities of public educational non-business units. Accordingly, it directly affects the revenue of a number of units that have the conditions and ability to perform public non-business service activities without using state budget funds.
3. SOME SOLUTIONS TO ENHANCE FINANCIAL AUTONOMY IN NON-BUSINESS EDUCATION UNITS IN BAC KAN
Firstly, strengthen the improvement of legal policies on non-business education units. In particular, it is necessary to further strengthen the autonomy and self-responsibility for non-business education units in terms of tasks, organizational apparatus, staffing and finance. Continue to amend and supplement the law on civil servants and public employees in the direction of promoting decentralization, granting autonomy to the non-business education units, and clearly delineating state management from unit management and public career services supply.
Secondly, build economic and technical norms of non-business education services; criteria and standards for the quality of non-business education services; mechanism for monitoring, evaluating and accrediting the quality of non-business education services; operational efficiency of the non-business education units under the local management.
Thirdly, invest in facilities and people to ensure the quality of educational services. Renovate mechanisms and methods of recruiting, employing and managing public employees (including managerial staffs).
Fourthly, promote the provision of public services according to the market mechanism, and promote the socialization of non-business education services. Accordingly, identify and review the list of non-business education services using state budget funds, other services not using the state budget are priced according to the market mechanism, the unit is entitled to decide the revenues and the guaranteed collection rates to ensure reasonable and cumulative expenses. There should be policies to encourage preferential treatment and equal treatment between public and non-public non-business education units in the provision of community exchange services.
Fifthly, strengthen the accreditation of the quality of non-business education services.
Speed up the completion of quality accreditation for non-business education service providers, encouraging units to participate in quality accreditation according to regional and international standards; Implement the ratings, enhance transparency of information on conditions to ensure quality of non-business education services in order to improve autonomy.
Sixthly, perfect the financial mechanism of the non-business education units. Accordingly, it is necessary to supplement specific regulations on the financial sources of the public non-business units in the direction of clearly separating the revenue from the provision of public administrative services in the list of public administrative services using the state budget and the revenues from the public administrative services which are not on the list of public non-business services funded by the state budget; revenue from production and business activities, joint ventures, associations and other services. Supplement regulations on expenditures from service revenue in the direction that the non-business education units are entitled to autonomously decide recurrent expenditures according to the internal spending regulations/financial regulations and must separately account the expenses direct costs for the provision of prescribed services.
3.2. Strengthen management capacity of governing bodies and financial institutions
With the understanding of autonomy as self-determination, the content of autonomy in non-business education units cannot only include only financial autonomy; Financial autonomy must be associated with autonomy in terms of operations, expertise and tasks and autonomy of the apparatus. In particular, the core issue of autonomy in non-business education units is built on
38 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...
the operation of the unit, with the view that the unit itself is the one who understands itself and its customers to build most optimal operational strategies. At the same time, the governing body and the financial agency do not need/should interfere too deeply in the operation of the unit.
Meanwhile, the relationship between the governing body, the financial agency and the unit is no longer an imperative relationship but changes to an inspection and supervision.
However, autonomy does not mean completely “floating” non-business education units.
Furthermore, autonomy always comes with accountability. Therefore, in order for the autonomy mechanism for the community to be truly effective, in addition to the factors from the unit itself, the policy mechanism, the role of management agencies and financial organizations cannot be denied.
In addition, accountability must include internality (internal entities - employees) and externality (superior agencies and related parties such as: customers - students, parents and community, local agencies,…).
3.3. Strengthen the governance capacity of non-business education units
When there are “necessary” conditions for autonomy such as a legal framework, an open and synchronous policy mechanism, then the conditions “enough” for the successful implementation of autonomy lie in the non-business education units themselves. In other words, the success/failure of the autonomy process in each non-business education unit is clearly demonstrated through governance capacity in general, including financial management and public assets in particular.
Promulgate regulations on management of public finances and assets, clearly defining the authority and responsibility of each department and individual, especially the responsibilities of the leader.
Complete the accounting regime, implement the audit and supervision regime, ensuring the publicity and transparency of the entity’s financial activities.
REFERENCES
1. Government (2016), Decree 116/2016/ND-CP dated July 18, 2016 stipulating policies to support students and high schools in extremely difficult communes and villages
2. Bac Kan Provincial People’s Committee (2021), Decision No. 451/QD-UBND dated April 6, 2021 on the assignment of autonomy and financial responsibility to public non-business units under the Department of Education and Training, period 2021 – 2023.
3. Bac Kan Provincial People’s Committee (2013), Decision No. 2264/QD-UBND dated December 13, 2013 on the assignment of autonomy and financial responsibility to public non-business units under the Department of Education and Training, period 2014 - 2016 4. Bac Kan Department of Finance, Report on the implementation of Decree 43/2006/ND-CP in
years.
PhD. Le Thi Hong Thuy1, PhD. Nguyen Thi Hong Nham2,PhD. Do Thi Thu3
Abstract: This study analyzes the impacts of the business environment on the performance of private enterprises in Vietnam in the period 2010 - 2018. This study used the Cobb-Douglas production function to build an empirical model by using a suitable quantitative method. The study used panel data matching from two data sets including the annual survey on enterprises data set conducting by GSO and the data set on PCI from VCCI. The experimental result with fixed effect shows that: Business environment has improved the performance of private enterprises in Vietnam, driven by the factors: entry costs; access to land; labor training.
Among these, labor training and access to land have the strongest influence. Leadership dynamism and informal costs show the opposite effect on the operating results of private enterprises, showing worrying points in some problems of the business environment in Vietnam, although the business environment has improved a lot, it has not been completely eliminated. This finding confirms the necessity of improving the business environment to promote productivity and performance of private enterprises in Vietnam in the next time.
Keywords: Business environment, performance result, private enterprises.