MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE ACADEMY OF FINANCE
LAI VAN TUNG
PERFECTING THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY OFFICER TRAINING SCHOOLS
Major : Finance - Banking Code : 9.34.02.01
SUMMARY OF ECONOMIC DOCTORAL THESIS
HANOI - 2018
The work has been finished at Academy of Finance
Supervisors: 1. Assoc. Prof. Ph.D. Vu Van Tung 2. Assoc. Prof. Ph.D. Le Hung Son
Reviewer 1: ...
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Reviewer 2: ...
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Reviewer 3: ...
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The Thesis will be defended berfore the Thesis Review Board at the Academy level, of Academy of Finance
at ... ....hour.... ...(day)...(month)... . ....(year) 2018
The Thesis can be referred at:
- The National Library
- The Library of Academy of Finance
INTRODUCTION
In the context of limited State Budget spent in the field of National Defense - Security, and complex and difficult tasks of National Defense in the new situation, the financial source invested in military officer training schools cannot meet the true demands. The question here is how to effectively mobilize, create and manage, use different financial resources to meet various training requirements in the immediate and long term. To successfully accomplish this goal, a number of factors, including the need for an appropriate financial management mechanism are required. The topic of “Perfecting the financial management mechanism for military officer training school” selected for further study to complete the financial management for military training schools is objectively important and essential both in terms of theory and practice.
2. Research objectives of the Thesis
From the foundation of theoretical and practical research, the thesis proposes some solutions to improve the financial management mechanism for military officer training schools.
3. Research tasks of the Thesis
- To systematize, contribute to clarifying and supplementing theoretical basis of education and training in the Army and the financial management mechanism for military officer training schools;
- According to the survey results, to analyze and evaluate the current situation of the financial management mechanism for military officer training schools, to withdraw the strengths and limitations or shortcomings and their causes; then to propose a number of measures and recommendations to perfect the financial management mechanism for military officer training schools in the coming future.
4. Research objects and scope of the Thesis 4.1. Research objects of the Thesis
The research objects of the Thesis are a number of theoretical and practical issues on the financial management mechanism for military officer training schools.
4.2. Research scope of the Thesis
- In terms of contents: The Thesis studies different issues on the financial management mechanism for military officer training schools, including: financial source creating mechanism; financial management and use mechanism; asset management mechanism; and financial inspection and control mechanism.
- In terms of space: The Thesis studies the financial management mechanism for different military officer training schools. The financial management mechanism for military officer training schools mentioned in this Thesis is the financial management mechanism in a limited sense, that is to study the financial management mechanism issued by the State only;
such mechanisms developed by the schools are the internal control of each school, and not be covered by this Thesis. The Thesis focuses its research in 10 schools, namely: 07 schools under the Ministry of National Defense and 03 schools under different Army forces.
- In terms of time: The Thesis studies the process of developing and operating the financial management mechanism for military officer training schools, mainly focusing on the current financial management mechanism (which is in place until the time of Thesis defense). The analyzed date for the research are mainly in the period from 2011 to 2016.
5. Research methods of the Thesis
- General method: The Thesis makes use of the methodology of dialectical materialism and historical materialism to study different issues, to ensure comprehensive, systematic, logical and practical results.
- General method: synthesis, analysis, comparison, statistics, logical inference, generalization..
6. New contributions of the Thesis
- Develop the theoretical basis of educational and training activities in military officer training schools and the financial management mechanism for military officer training schools.
- Propose a system of solutions contributing to perfecting the financial management mechanism for military officer training schools in line with training characteristics.
7. Structure of the Thesis
Apart from the introduction, conclusion, diagrams, tables, appendices and references, the Thesis consists of 4 chapters:
Chapter 1: Overview of existing research projects related to the Thesis
Chapter 2: Education and training in the Army and the financial management mechanism for military officer training schools
Chapter 3: Current situation of the financial management mechanism for different military officer training schools.
Chapter 4: Measures to perfect financial management mechanism for military officer training schools.
Chapter 1
OVERVIEW OF EXISTING RESEARCH PROJECTS RELATED TO THE THESIS
1.1. RESEARCH RESULTS RELATED TO THE THESIS TOPIC In recent years, there have been many research topics and works on Education and training, in general and the financial management in the area of Education and training, in particular. Previous studies listed, analyzed in the overview of the financial management mechanism have partly solved the issues related to the financial management mechanism for public education and training institutions.
1.2. REVIEW ON RESEARCH RESULTS AND ORIENTATIONS 1.2.1. Some values to be acquired
These researches provide the author with a fairly comprehensive and insightful theoretical foundation on Education and training and the financial management mechanism for Education and training institutions as a basis to develop a theoretical basis on the financial management mechanism for military officer training schools.
1.2.2. Issues related to the Thesis which have not been addressed or solved in other studies
- There is no clear analysis of the relationship between the training characteristics of the military schools and the issues that these researches work.
- The components of the the financial management mechanism for public education institution have not been fully analyzed.
- There is no study working on improving the financial management mechanism for military officer training schools.
1.2.3. Research questions
To achieve the research purposes, the Thesis should analyze the theoretical and practical basis in order to answer the following research questions: What are the training characteristics of military officer training schools? How do these characteristics affect the financial management?
What are the components of the financial management mechanism for different military officer training schools? What is the current situation of the financial management mechanism for military officer training schools?
What are the mechanisms to improve the mobilization of financial sources for military officer training schools? How to obtain the strict control and management of the upper levelsand to improve the autonomy, self- responsibility of the schools in financial management at the same time.
Should military schools move toward performance-based budget management? What are obstacles and solutions to overcome these obstacles?
1.2.4. Research orientation of the Thesis
Based on the research overview, and the addressed research gaps and research questions, the Thesis should further clarify the theoretical basis of the financial management mechanism for the military officer training schools; analyzing the current state of the current financial management mechanism for military officer training schools; identifying the results, limitations, and analyzing the causes of these limitations, and shortcomings of the financial management mechanism for the military officer training schools; proposing solutions to perfect the financial management mechanism for the military officer training schools, which are in line with the State financial management mechanism and specific training characteristics of the military officer training schools.
Chapter 2
EDUCATION AND TRAINIGN IN THE ARMY AND THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY
OFFICER TRAINING SCHOOLS 2.1. EDUCATION AND TRAINING IN THE ARMY 2.1.1. Some relevant concepts
2.1.1.1. Education and training 2.1.1.2. Military officer
Military officers are the servicemen serving in the armed forces with the army rank of ensign or higher.
2.1.1.3. Military officer training
Military officer training is an activity of the Army in order to provide a source of commanding officers and professional technicians with sufficient qualities, capabilities and qualifications according to specific training discipline, meeting the requirements of long-term service in the Army.
2.1.1.4. Military officer training schools
Military officer training schools are education and training institutions in the Army which are assigned to train military officers for long-term service in the Army.
2.1.2. The role of education and training in the Army
2.1.2.1. Education and training in the Army contributes to developing a good source of officers with basic knowledge of military science, meeting the requirements of military construction in the new period.
2.1.2.2. Education and training in the Army contributes to educating national defense and security knowledge for senior officers, pupils and students; training the human resources for the industrialization and modernization time.
2.1.3. Characteristics of the military officer training activities 2.1.3.1. Army’s-demand-based training is the primary.
2.1.3.2. Training associated with military activities - the special activities.
2.1.3.3. There is no competition among different schools.
2.1.3.4. Training products are comprehensive.
2.1.3.5. The schools manage the students as the full-time basis.
2.2. THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY OFFICER TRAINING SCHOOLS
2.2.1. The concepts of the financial management mechanism for military officer training schools
The financial management mechanism for military officer training schools is a comprehensive set of principles, methods and measures to develop, distribute, use and control the use of the financial resources for military officer training schools for the purpose of achieving preset goals in education and training.
2.2.2. Some methods of financial management for military officer training schools
2.2.2.1. Financial autonomy and non-autonomy a) Financial autonomy
In case of financial autonomy, schools are able to identify their own revenue sources and ability to cover operating costs from these revenue sources. Financial autonomy allow schools to give their own decisions on different financial issues at different levels.
b) Financial non-autonomy
In case of financial non-autonomy, during the course of operation, all amount of school’s revenue shall be remitted into the State Budget and the
demands of State Budget spendings shall be distributed in the annual State Budge spending plan.
2.2.2.2. Input-based management and performance-based management a) Input-based management
b) Performance-based management
2.2.3. Components of the financial management mechanism for military officer training schools
2.2.3.1. Mechanisms of developing financial sources for schools a) Mechanisms of developing State Budget sources
* Regarding the level of State budget funding for military officer training schools
All military officer training activities in Vietnam are 100%
guaranteed by the State Budget (the Central budget funds via the Ministry of National Defense). This is also the common trend of other countries around the world and in line with the specific characteristics of military occupation.
* Regarding the guarantee methods of State budget funding for military officer training schools
- The State guarantee the budget for the schools.
- The State makes use of the Budget to directly guarantee for learners.
b) Mechanisms of creating non-state-budget financial sources Non-state-budget financial sources.
Non-state-budget financial sources of military officer training schools are developed from: Tuition fees of civil levels and training links;
From different revenue-generating activities according to the characteristics of each school; Contribution and support from organizations, enterprises and individuals; international funding and investment
* Regarding revenue-generating activities of military officer training schools
Currently, the revenue-generating activities of the Army in general and of military officer training schools in particular need to be maintained for the following reasons:
First, some of the revenue-generating activities in the Army are not merely economic, but directly serving the training of soldiers, some of which must be maintained in a manner consistent with the management of soldiers.
Second, economic activities contribute to reducing the burden of State budget expenditures for the Army
Third, economic activities are characterized by taking advantage of redundant power, ensuring savings and avoiding waste
Fourth, some of the school’s revenue-generating activities actively give great supports to professional activities
* Some principles of developing non-state-budget financial sources for military officer training schools
Principle 1: Follow the State regulations and laws; Principle 2:
Developing non-state-budget financial sources from revenue-generating activities of the schools must be completely independent from the State budget; Principle 3: Development of non-state-budget financial sources must be performed in the manner of autonomy and self-responsibility;
Principle 4: Activities to develop non-state-budget financial sources must be fully accounted, publicized and transparent; Principle 5: Fully fulfill all payment obligations to the State budget; Principle 6: Revenue-generating activities must be maintained in a reasonable model.
2.2.3.2. Financial management and use mechanism a) Management and use of the State Budget
Requirements of State budget management and use of different management methods are different:
Regarding the input-based budget management method, all State budget expenditures shall ensure the maintenance of the staff organizational structure according to their assigned functions and tasks, ensuring material infrastructure and other necessary conditions for teaching, studying and scientific research activities.
Regarding the performance-based budget management method, schools focus on the management of achieving the committed results, clarifying the school’s undertakings to meeting the goals that have been committed to its management agency.
b) State budget settlement
Any State budget expenditures can only be settled when they meet the requirements of budget expenditures.
c) Mechanisms of management and use of non-state-budget revenues The management mechanism for non-state-budget revenues must be relatively flexible so that the schools are autonomous and accountable in the management process. At the same time, it is necessary to have a mechanism of binding responsibility; to meet the requirements of publicity and transparency in the development of financial sources and use of non- state budget revenues.
2.2.3.3. Asset management mechanism
The asset management mechanism shall satisfy the following requirements: (i) The use of assets must be reasonable, for right purposes, in accordance with the standards of norms, for capacity maximization and good management and firmly understand and control the asset situation in terms of quantity, quality and value;(ii) to establish and develop a set of standards and norms...
2.2.3.4. Financial supervision and control mechanism a) Self-control mechanism
b) Expenditure control mechanism based on the State budget c) Inspection and examination activities of competent agencies
2.2.4. Roles of the financial management mechanism for military officer training schools
2.2.4.1. Financial management mechanism contributes to developing the financial sources for the school’s operations and performance.
2.2.4.2. Financial management mechanism helps the financial management and use of the schools to be more effective
2.2.4.3. Financial management mechanism enhances the supervision of financial management and use
2.3. EVALUATING THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY OFFICER TRAINING SCHOOLS
2.3.1. Validity 2.3.2. Efficiency 2.3.3. Economy 2.3.4. Equality
2.4. SOME FACTORS AFFECTING THE DEVELOPMENT AND OPERATION OF FINANCIAL MANAGEMENT MECHANISM FOR MINITERY OFFICER TRAINING SCHOOLS
2.4.1. Objective factors
2.4.1.1. Socio-economic, national defense, and security environment
2.4.1.2. The process of financial reform in general, public financial reform in particular
2.4.1.3. The Party’s and State’s policies on the Army development, policies on education and training in the Army, orientation of the reorganization of military schools
2.4.2. Subjective factors
2.4.2.1. Awareness of senior managers in the Army
2.4.2.2. Organizational structure, staff capacity and technical facilities
2.5. EXPERIENCES OF THE MINISTRY OF PUBLIC SECURITY IN THE CONSTRUCTION AND DEVELOPMENT OF FINANCIAL MANAGEMENT MECHANISMS FOR UNIVERSITIES
2.5.1. Regarding the reorganization of the system public security schools
2.5.2. Regarding the asset management mechanism
Chapter 3
CURRENT STATUS OF THE FINANCIAL MANAGEMENT MECHANISM FOR MILITARY OFFICER TRAINING SCHOOLS
3.1. OVERVIEW ABOUT MILITARY OFFICER TRAINING SCHOOLS
3.1.1. Current school organizational system in the Army 3.1.2. Training objectives
3.2. CURRENT STATUS OF THE FINANCIAL MANAGEMENT MECHANISM FOR MILITARY OFFICER TRAINING SCHOOLS
3.2.1. Financial source development mechanism
3.2.1.1. Mechanism of developing State budget sources a) Procedures of preparing State budget plans
Step 1: Guiding the preparation of State budget plans and reporting the estimated amount for State budget plan (review number); Step 2:
Preparing State budget estimates of the schools; Step 3: Distributing State budget estimates to the schools.
b) Procedures of preparing State budget plans
According to specific characteristics of each expenditure, State budget estimates for each items are identified based on the following methods:
Method 1: Spending is calculated based on norms, standards, while quantity and time must be committed.
Method 2: Spending is calculated based on performance charges for each specific task and work with the following formula:
Method 3: Spending is calculated based on the performance amount (or estimated performance amount) of the previous year and other changeable factors.
Method 4: Spending is calculated based on estimated cost (total estimate or estimate) and schedule of each project (works, work items) in the planned year.
c) Budget modification and supplement
The high rate of budget deficit reflects the instability in the preparation and allocation of budget estimates, then the “ask-give”
mechanism will be prominent.
3.2.1.2. Mechanisms of creating non-state-budget financial sources a) Tuition fees for civil training programs
b) Other non-state-budget revenues
3.2.2. Financial management and use mechanism 3.2.2.1. Management and use of the State Budget a) Allocation and delivery of State budget estimates
After receipt of annual budget estimates, the schools shall allocate and deliver these annual budget estimates to their belonging agencies and units (if any) according to the following principle: (i) the budget allocated by the upper levels shall not be overpaid; (ii) Estimated allocation should be made on the quarterly basis; (iii) The plan for budget estimate allocation to the agencies and units of lower levels must be sent to the immediate upper level for verification. (iv) shall be finished before 31 December of the previous year.
b) Issue and settlement of State budget spendings b1) Preparation of quarterly spending demands
The professional expenses of the schools in the fourth quarter of 2015 account for from 40% to 60%. Without a proper mechanism, the
concentration of annual spending at the end of the year will reduce the efficiency of spending due to poor control, and the fact that schools try to spend all of allocated budget without serious concerns about the budget use efficiency.
b2) Issue and settlement of expenses
* Issue and delivery of expenses for lower levels
* Settlement of different expenses c) Budget collection
d) Accountants and budget accounting
3.2.2.2. Management of spending and use of non-state-budget revenues
a) Management of spending and use of tuition fees
b) Management of spending and use of distributed income sources b1. Management and use of additional revenue sources
b2. Creation, management and use of unit’s budgets 3.2.2.3. Financial commitment for scientific researches
In general, investment in scientific researches is still relatively modest. Due to limited budgets, the schools mainly spend money on scientific researches at grassroots level, rather than organize studies at Ministry, Sector and State levels.
3.2.3. Asset management mechanism 3.2.3.1. Classification of assets
3.2.3.2. Asset management mechanism
Under the current mechanism, the Department of Finance/Ministry of National Defense is the body to advise and assist the Ministry of National Defense in performing the task of state management of public assets. Schools in the Army have the task of managing, using, protecting and preserving public assets in accordance with their assigned functions and tasks.
3.2.3.3. Investment in training facilities and equipment for military officer training schools in the period of 2011-2015
3.2.4. Financial supervision and control mechanism 3.2.4.1. Spending control via the State Treasury 3.2.4.2. Spending control of local financial units 3.2.4.3. Spending self-control
3.2.4.4. Inspection, examination and audit activities for schools 3.3. EVALUATING THE CURRENT STATUS OF THE FINANCIAL MANAGEMENT MECHANISM FOR MILITARY OFFICER TRAINING SCHOOLS
3.3.1. Achievements
The current mechanisms of financial source development for the schools are basically synchronous; be in line in terms of time, methods and procedures; facilitating schools to create and develop non-state budget financial sources for spending demands that are currently not satisfied by by the State budget.
3.3.2. Shortcomings
3.3.2.1. In terms of the mechanisms of financial source development for schools
a) Mechanisms of developing State Budget sources
Estimation is only formality; there are some estimating criteria which are roughly based on the number of the previous year with some addition or deduction to have the number of the current year; there is no mechanism for public discussion on budget; there is no strict obligation to make accurate estimates; budget allocation for schools also lacks convincing basis and mainly rely on the agreement and the imposition of upper levels to lower ones which easily lead to the “ask-give” situation of the budget.
b) Mechanisms of creating non-state-budget financial sources
There is no suitable mechanism to encourage schools to actively develop the mobilization of non-budget financial resources; Revenues from scientific researches and technology transfer are still limited and only concentrated in a few schools; There is no clear mechanism for schools to mobilize funding and investment from organizations, individuals, units, and enterprises; contribution to scholarship funds; financial resources from cooperation projects, support from the government, army, foreign military schools.
3.3.2.2. Regarding financial management and use mechanisms a) Management and use of the State Budget
The maintenance of input-based budget spending management mechanism bearing the strict implementation of regimes, criteria and norms has greatly obstructed the efficiency of budget expenditures; Some sectoral expenditure norms of developed by schools are still inadequate and not in line with the reality, not suitable to the capacity of the budget, not towards the autonomy of the schools; Package-based expenditures are applied in a number of contents but they are not really package-based expenditures.
b) Management and use of non-state-budget revenues
The mechanism of allocating expenditure differences from revenue- generating activities still has many shortcomings, the mechanism of management of State budget-originated assets or recipients of State budget-originated wage is unclear.
c) Financial management mechanism for scientific researches
Funding for scientific research activities is limited, and mainly originated from the state budget. Investments in scientific research activities are still spread out, few research works are well invested to produce high quality products. There is no financial mechanism attractive enough to scientists for their devoted researches.
3.3.2.3. Regarding asset management mechanism
Facilities and equipment for schools are still limited which have not keep up with the practical situation of the units; There is no synchronous mechanism for investment in facilities for national and military key schools; The public asset management mechanism has not been finalized, which results in wasteful use of public assets.
3.3.2.4. Financial supervision and control mechanism
Coordination mechanism in expenditure control is still limited, which mainly focuses on post-expenditure examination and control;
The inspection and examination activities have been overlapping in terms of contents; the frequency of inspection, examination and audit activities is high.
3.3.3. Causes of limitations and shortcomings 3.3.3.1. Objective causes
The State’s financial management mechanism is frequently changeable; Military and national defense missions in the recent time have witnessed some big changes, and arising new tasks and requirements;
Military finance is related to various sectors and areas, the completion of the financial management mechanism is quite complicated due to the impacts on different agencies and units; The characteristics of the products of education and training activities in the army are not highly socialized;
Education and training in the Army has had enough conditions and opportunities for international integration; Following are some fundamental elements for the establishment of an effective financial management mechanism: Arranging and streamlining the school system in the Army, developing employment positions, downsizing the staff, etc.
3.3.3.2. Subjective causes
Management agencies in the Army have not really taken the initiative in studying and promulgating the appropriate financial
management mechanism with the characteristics leading to the lack of synchrony in financial management mechanism; Many regulations are no longer appropriate. The coordination between functional agencies of the Ministry of Defense and the schools is not good, the financial management mechanism is almost “one-way” manner. Training products are not highly socialized, some schools operate in a closed manner, which results in psychological hesitation to renovate their management mechanism and policy. A large number of schools and different management organizational leveling have been the obstructions to the validity and efficiency of the management mechanism and autonomy capacity of the schools.
Chapter 4
SOLUTIONS TO PERFECT THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY OFFICER TRAINING SCHOOLS
4.1. THE CONTROL VIEWPOINTS AND DEVELOPMENT OBJECTIVES OF MILITARY EDUCATION AND TRAINING
4.1.1. Viewpoints of the 12th session of the 6th Central Congress on rearrangement and reorganization of public non-business units
4.1.2. Guiding viewpoints and strategic objectives on education and training in the Army as of 2020 and in the next coming years
4.1.2.1. Guiding viewpoints on the development of the education and training in the Army
a) Strictly follow the Party’s viewpoints and policies as well as the State’s policies and laws, to satisfy the requirements and tasks of developing the Army and protecting the Homeland in the new situation.
b) Education and training in the Army shall develop in the direction of standardization, modernization and integration with the national education system.
c) Education and training in the Army must be of high quality and effective to actively contribute to the development of national human resources
d) Bringing the education and training in the Army step-by-step to the development of advanced level with national traditions and martial arts of Vietnam
4.1.2.2. Strategic objectives on the development of the education and training in the Army
a) General objectives
To comprehensively renovate, make fundamental and firm changes in the quality, efficiency of education, training and scientific research.
b) Specific objectives
To train staff at strategic level; To train staff at the campaign level;
To train tactical-level officials and local military cadres; Postgraduate training; To train non-commissioned officers, technical and professional personnel; and international students training.
4.2. ORIENTATION TO PERFECT THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY OFFICER TRAINING SCHOOLS
4.2.1. Perfecting the financial management mechanism for military officer training schools shall strictly follow the training objectives and requirements
4.2.2. Perfecting the financial management mechanism for military officer training schools shall be along with remarkable breakthroughs in the organization, staffing and renewal of training programs and processes.
4.2.3. Perfecting the financial management mechanism for military officer training schools shall aim to control the training quality, and in line with the performance results
4.2.4. Perfecting the financial management mechanism shall ensure to bring into full play the capacity and intelligence of the lecturers and educational administrators
4.3. SOLUTIONS TO PERFECT THE FINANCIAL MANAGEMENT MECHANISM FOR MINITARY OFFICER TRAINING SCHOOLS
4.3.1. Group of measures for financial source development mechanism for the schools
4.3.1.1. To establish the mechanisms for State budget estimation and allocation which are more practical
* To improve the current 3-step estimation procedures into 4-step ones as follows:
Step 1: The schools prepare their budget increase/decrease demands to submit to the upper levels
Step 2: The upper levels guide to prepare the estimation and send the budget estimation revision to the schools
Step 3: The schools prepare the detailed estimation and submit to the intermediate upper level
Step 4: The upper level send the official estimation to the schools
* To reform the method of estimation, complete renewal from input- based estimation to performance-based estimation
4.3.1.2. To promote the increase of non-state-budget revenues from training and scientific research activities
Firstly, to allow schools to develop their own plans or measures for their operation, production, economic activity and their self-responsibility for the effectiveness of economic activities proposed by the schools;
Secondly, to facilitate the mobilization of capital from other non-budget sources to organize and invest in expanding economic activities;Thirdly,
the Ministry of National Defense should have a mechanism for funding support for the revenue-generating activities of the schools; Fourthly, it is necessary to develop mechanisms to promote the mobilization of other financial sources
4.3.2. Group of measures for financial management and use mechanisms
4.3.2.1. To identify appropriate management practices for each type of funding, and promote the school’s autonomy in spending
4.3.2.2. To step by step apply the performance-based budget management mechanism
a) Contents of performance-based budget management in the financial management and use by military training schools
b) The conditions (contents) of performance-based budget management applications of military training schools
Firstly, the output of the schools must be clearly determined;
Secondly, it is necessary to develop the output measurement system;
Thirdly, school budgets must be developed and managed in the medium to long term;
c) Factors promoting the reform of performance-based management mechanism for the schools
d) Factors challenging the reform of performance-based management mechanism which need to be overcome
4.3.2.3. To build a system of technical and economic norms for education and training in each specialized area
a) To build a system of technical and economic norms
b) To determine the number of learners and students for each specialized area
4.3.3. Perfecting financial management mechanism for scientific researches
Firstly, to diversify funding sources for scientific researches.
Secondly, it is important to develop specific financial management mechanisms for scientific researches. Thirdly, there must be a mechanism for material encouragement for researchers. Fourthly, there must be an investment mechanism that facilitates the research results to be implemented
4.3.4. Perfecting financial management mechanism for revenue- generating activities
Firstly, to perform full and transparent accounting of revenues and expenditures of economic activities. Secondly, to overcome some remaining inadequacies in the result distribution of revenue-generating activities. Thirdly, to develop a flexible mechanism of financial resource spending resulted from revenue-generating activities.
4.3.5. To improve the capacity of the internal control system, enhance transparency and publicity in financial management
4.3.5.1. To improve internal control capacity
The internal control system must be complete to meet the following requirements: Ensure that the budget is well implemented as planned; The internal control system must be able to assess the effectiveness of the activities and seek to improve that efficiency; There must be detailed, reliable documentation that forms the basis of managerial budget decisions;
4.3.5.2. To enhance the transparency and publicity in financial management
To promote the financial publicity along with the responsibility for information confidentiality
4.4. SOME RECOMMENDATIONS
4.4.1. To transform the military officer training schools into public non-business units to implement financial autonomy
It is determined for 02 periods: 1st period (up to 2020) and 2nd period (from 2021 onwards)
4.4.2. To reorganize the military school system in a streamlined direction
To reorganize 22 current schools into 06 military officer training academies.
4.4.3. To downsize the staff and renovate personnel management of schools; and to strengthen the treatment policy with teachers
4.4.4. To create a transparent and healthy economic and financial environment in order to strengthen financial supervision for the budget spending units
CONCLUSION
Some fundamental and important results of the Thesis are:
Firstly, the Thesis systematizes the theoretical basis of education and training in the Army and the financial management mechanism for military officer training schools; In particular, the characteristics of the military officer training activities (the main training subject) are emphasized as the prerequisite for orienting the improvement of the financial management mechanism. The Thesis also analyzes the components of the financial management mechanism, including: Financial source creating mechanism;
financial management and use mechanism; asset management mechanism;
and financial inspection and control mechanism.
Secondly, the Thesis clarifies the current situation of the financial management mechanism of in military officer training schools, analyzes the advantages, limitations, inadequacies and causes of these limitations, inadequacies of the current financial management mechanism.
Thirdly, the Thesis proposes 05 solutions and groups of measures in both immediate and long term in order to perfect the mechanism of financial management for military officer training schools in accordance with the State financial management mechanism, and in association with the military characteristics.
Fourthly, the Thesis also proposes 04 measures to perfect the financial management mechanism for military officer training schools.
With the study results, the author would like to contribute to the enrichment and deepening of the theory of the financial management mechanism for military officer training schools and other related issues, and at the same time, the mentioned methods and measures shall contribute to the improvement of the financial management mechanism for military officer training schools./.
LIST OF PUBLISHED RESEARCH WORKS OF THE AUTHOR RELATED TO THE THESIS
1. Lai Van Tung (2012), “Management of Production Costs and Product - Service Prices in revenue-generating activities in current military estimation units”, Journal of Scientific Research in Logistics, No.
43(70).
2. Lai Van Tung (2014), “Exchange of result distribution of revenue- generating activities in current military estimation units”, Journal of Scientific Research in Financial Accounting, No. 04(129)
3. Lai Van Tung (2015), “A number of new contents in accounting regimes of estimation units issued in 2015”, Journal of Military Finance, No. 06(229).
4. Lai Van Tung (2017), “Financial mechanism to promote scientific research in military schools," Journal of Financial Investigation, No. 177.
5. Lai Van Tung (2017), “How to improve non-state-budget revenue sources in military officer training schools”, Journal of Finance, session 2, September (665)
6. Lai Van Tung (2017), “Streamlining the system of military schools, Conditions to implement the Financial Autonomy Mechanism”, Journal of Military Finance, No. 6(241).
7. Lai Van Tung (2018), “What’s new in the 2017 non-business accounting regime - implemented in the Army”, Journal of Military Finance, No. 4(245).
