Tổ chức hạch toán kế toán tại các đơn vị sự nghiệp công lập thuộc tổng cục địa chất và khoáng sản việt namastract

CHAPTER 1
INTRODUCTION TO THE STUDY
1.1

The rationale of the study

Accounting is one of the effective management tools that are used by the public
service agencies to manage assets, the process of receiving, using and settling funds. For
accounting to become an effective management tool in these agencies, the scientific and
suitable accounting is one of the effective state management tools that enable public
service agencies to utilize the funds.
In recent years, the state accounting system in general and in public service
agencies in particular has experienced many innovations and adjustment in accordance
with the reforms of economic and financial management. However, the task of
accounting in public service agencies in general and in other organizations of the
General Department of Geology and Minerals of Vietnam had some shortcomings in
recording and the task of managing fixed assets faced much confusion, the accounting
apparatus in some organizations did not suit the characteristics, size and condition. The
system of accounts, ledgers and reports as well as the implementation of information
technology failed to meet the managerial requirements. The inadequacies in the task of
accounting in public service agencies greatly affected the management of finance and the
quality of public service.
Based on these theories and practices, the author investigated and decided to
choose the research: “The task of accounting records in the public service agencies
under the General Department of Geology and Minerals of Vietnam”
1.2

The purposes of the study

information system in the public service agencies of the General Department of Geology
and Minerals of Vietnam.

1.4

Objects and scope of the study

1.4.1. Objects of the study
The dissertation focuses on studying the theoretical and practical basis on the task
of accounting record in the public service agencies of the General Department
of Geology and Minerals of Vietnam and then proposing solutions to improve the task of
accounting record in the public service agencies of the General Department of Geology
and Minerals of Vietnam.
1.4.2. Scope of the study
Regarding the scope of research space: The dissertation focuses on the studying
the task of accounting record in unions and centers of the General Department
of Geology and Minerals of Vietnam.
Regarding the content of the research: The dissertation focuses on surveying and
studying the task of accounting record in unions and centers of the General Department
of Geology and Minerals of Vietnam in terms of financial accounting. Details as follows:
- Survey and study the accounting apparatus in the unions and centers of the
General Department of Geology and Minerals of Vietnam.
- Survey and study the accounting apparatus in the unions and centers of the
General Department of Geology and Minerals of Vietnam in terms of accounting
documents, system of accounting accounts, accounting ledger, reporting and applying
information technology in accounting.

(i) Systemize the basic theories regarding the task of accounting record in the
public service agencies.

Regarding the time of the research: The dissertation focuses on surveying and
collecting document on the task of accounting record in unions and centers of the
General Department of Geology and Minerals of Vietnam in 2013 and 2014.

(ii) Survey and analyze of the current situation of accounting record in the public
service agencies of the General Department of Geology and Minerals of Vietnam.

1.5

(iii) Evaluate the current situation of accounting record in the public service
agencies of the General Department of Geology and Minerals of Vietnam.
(iv) Propose some solutions concerning two aspects: perfecting the legal
framework related to accounting to suit specific activities and structuring the autonomy
to the new requirements and implementing the task of accounting record in the public
service agencies of the General Department of Geology and Minerals of Vietnam.
1.3

Research questions

The theoretical and practical issues show that the system of accounting
information is one of the useful management tools to help managers in public service
agencies manage and utilize the funds and capital as well as manage the public assets.
The author raises the questions on how to strengthen the quality of accounting

Research Methods

The author uses various synthetic methods such as: investigation, analysis and
systematization method; survey and recording method; synthetic and sub-statistics
method; comparison, interpretation and induction method; positive method, etc. to study,
analyze, evaluate and present the issues related to the task of accounting record in unions
and centers of the General Department of Geology and Minerals of Vietnam.
The dissertation also employs some specific methods in the research process, such
as: comparison, interpretation and induction method and statistics method to analyze the

theoretical and practical issues to provide assessment and conclusion, which helps to
offer suitable and feasible solutions.
1.6. Overview of the researches
The task of suitable and scientific accounting record provides useful and effective
accounting information for the management and operation of financial and economic


activities in institutions and organizations in general and in the public service agencies in
particular. Therefore, researches on the accounting record in public service agencies have
been mentioned in many research projects of Vietnam and other countries. However, in
terms of the scope of research, these projects are primarily in Education, Health, and War
Invalids - Social Affairs. There has not been any study on public service agencies the
General Department of Geology and Minerals of Vietnam. In the context of Vietnam's
market mechanism-oriented economy, financial management of the organizations in the
General Department of Geology and Minerals of Vietnam, particularly, since 2006,
1.7. The structure of the study
In addition to the table of content, appendices and list of references, the
dissertation is divided into four chapters and the conclusion as follows:
Chapter 1: Introduction to the study
Chapter 2: Rationale of the accounting record in public service agencies
Chapter 3: The current situation of accounting record in public service agencies in
the General Department of Geology and Minerals of Vietnam.
Chapter 4: The solutions to perfect the accounting record in public service
agencies in the General Department of Geology and Minerals of Vietnam.
CHAPTER 2
RATIONALE OF ACCOUNTING RECORD IN PUBLIC SERVICE AGENCIES
2.1. Definition and meaning of accounting record
2.1.1. Definition of accounting record
There are many different views on accounting record. According to the author,
“accounting record in organizations, enterprises and other social associations is the

process of establishing suitable relationships among factors that form a system including
accounting system, policies implementation, financial management, accounting methods,
accounting principles, means and methods of calculating in order to ensure that
accounting upholds its roles and functions”
2.1.2. Roles of accounting record
- Accounting record helps accountants collect, process and synthesize information
systems for those who are interested and helps them make right and prompt decisions.
- Accounting record helps build a compact and efficient accounting apparatus
therefore perform data collection, processing and provision to the management promptly
and comprehensively.
- Accounting record forms an important basis for the effective financial
management.

- Accounting record also plays a particularly important role in the management
and decision-making within the organizations.
2.2. Factors affecting the accounting record in public service agencies
2.2.1. Characteristics and classification of public service agencies
2.2.1.1. Characteristics of public service agencies
Currently, the concepts of state administrative agencies and public service
agencies often associate with each other and can be called the administrative agencies as
follows:
According to the author, the state administrative agencies and public service
agencies are different in functions. State administrative agencies are organizations
authorized by the government to directly provide public administrative services to
people. Public service agencies are organizations authorized by the government to
provide some public services.
2.2.1.2. Classification of public service agencies
Currently, classification of public service agencies according to criteria in table 2.1
including sectors, financial management, sources of revenue and the extent of financial
autonomy. Depending on the different management requirements in each agency, a

particular system of financial statements can be built to reflect differences of accounting
objects. Therefore, classification of public service agencies needs to be analyzed in
during the process of accounting record.
2.2.2. Regulatory environment
The fundamental factors affecting accounting record in public service agencies are
accounting law, decrees and circulars guiding the implementation of accounting and
legal documents related to public services and accounting activities such as laws on tax,
officer and budget. It is important that legal documents concerning accounting and
finance should be thoroughly followed to apply in each public service agencies to suit its
characteristics.
2.2.3. Demand of accounting information in public service agencies
Accounting record in public service agencies must meet the demands of
accounting information from managers. Demands of accounting information in public
service agencies include financial accounting and managerial accounting information.
2.2.4. Forms of management apparatus in the public service agencies
Currently, public service agencies can choose one of three forms of management
as follows:
- Online management apparatus: each subordinate member is only under the
management of one immediate superior.


- Functional management apparatus: Each agency or department is in charge of
specific management tasks. The staff must be knowledgeable and professional in their
field.
- Mix management apparatus: A type of management that mixes online and
functional management apparatuses.
2.2.5. Features of financial management in the public service agencies
2.2.5.1. Mechanism of financial management in the public service agencies
- Yearly estimated financial management mechanism is the traditional mechanism
applied before 2002. The public service agencies base on the functions and tasks

assigned as well as the standards of government to estimate revenues and expenditures
within a year; the estimates are in absolute compliance with the standards set by the
government within the approved cost estimates; Estimated settlement under this regime
complies with the items in the index of state budget which corresponds to each expense
content, and all remaining expenses must be returned to the state budget or reduced in
the next year’s estimated costs except for exceptional cases.
- The mechanism of financial autonomy is based on view that the agencies using
the finance are operating in a flexible manner instead of yearly financial management
mechanism which has been long imposed by the government. Currently, the operations
of public service agencies are compliant with the Decree 43/2006/ND-CP dated
25/4/2006 on "Regulations on autonomy and self-responsibility for operation,
organizational structure, staffing and finance in public service agencies". Accordingly,
the autonomy and self-responsibility are given to public service agencies in organizing
work, rearranging apparatus, using human and financial resources to complete the tasks
assigned; promoting every capability to provide high-quality service to society;
increasing revenue in order to gradually bring about the income for workers.
2.2.5.2 Innovation in autonomy management mechanism in the public service agencies
On 14/02/2015, the Government issued Decree No.16/2015/ND-CP concerning
the autonomy mechanism of public service agencies to replace Decree No. 43/2006/NDCP. According to the new requirements of the Decree No. 16/2015/ND-CP, every
accounting record must be adjusted as: The whole public service charges when
transferring public services prices in the field of geology must use the service invoice
instead of receipts, revenues at current prices of public services are recorded as revenue
instead of charges according to charging ordinance.
2.3 Principle and requirements of accounting record in public service agencies
2.3.1 Principle of accounting record in public service agencies
In order to perform its information and testing functions, the accounting record in
public service agencies needs to abide by the following principles:
First - The principle of consistency

Second - The principle of suitability

Third - The principle of compliance with mechanism, policies and law system on
accounting and financial management in public sectors.
Fourth - The principle of economization and effectiveness.
Firth - The principle of non-pluralism
2.3.2 Requirements of accounting record in public service agencies
Accounting record in public service agencies needs to ensure the following
requirements: control, effectiveness, suitability and flexibility.
2.4 Basic content of accounting record in public service agencies
2.4.1 The accounting system in public service agencies
The accounting system is the gathering of accountants and technical means of
recording and calculating which are equipped to perform the whole accounting task from
summarization, analysis and supply of economic information as well as activities of
managerial agencies.
2.4.1.1 Requirements of accounting system
∗ Accountants
Accountants need to meet the requirements of qualifications and ethic. They have a
thorough understanding and comply with laws, policies, accounting system and other
requirements within the agencies. The human resources in accounting department are
required to have both ability to work in group and good relationships with other
departments in the agencies, enterprises and organizations.
∗ The organization and assignment of accounting task.
The assignment of accounting task needs to ensure recording, processing and
providing prompt and accurate information, the equity in terms of workload assigned to
each accountants and smooth upward and downward management relationships.
∗ Internal management and control
The accounting system needs to ensure the close control to meet the requirements of
internal management and control, especially in control procedure in computing
environment. It is essential to clearly distinguish the functions of accounting system and
abide by task assignment principles.
2.4.1.2. Basis for accounting system in public service agencies.

The accounting system in public service agencies in the computing environment must
examine the following points:
∗ The managerial structure of public service agencies.
∗ The accounting workload


2.4.1.3. The organization of accounting system and human resource structure in
accounting department
a. The organization of accounting system
The agencies can choose one of the accounting system models including
centralized, decentralized and mix models.
b. The assignment of accounting task
The assignment of accounting task is defined as allocating the task to staff based
on the workload and the level of complication as well as the professional ability of each
staff.
2.4.2. The system of accounting document
The system of accounting document includes:
First - Identifying the system of accounting document at the agencies: Based on
the state’s accounting system (the Ministry of Finance) and the characteristics and
managerial requirements of accounting objects, the content of activities, businesses,
economic transactions and finance to identify the document employed at the agencies.
Second – Organizing initial accounting: The agencies establish regulations on
documents, investigating, classifying and generalizing documents. Accounting
documents must be lawful, rational, and valid and ensure truthfulness and objectivity.
Third – Transferring documents: This is the next step of the process of gathering
initial information. Scheduling document transfer is defined as designing the way of each
type of documents to the accounting department concerned.
Fourth - Storing, preserving and destructing documents: Documents after being
used to record in the accounting books. Storing and preserving accounting records must
comply with the general provisions of the Law on accounting.

2.4.2.2. Organization of accounts system
Each agency should organize the system of accounts to serve the systematization
of information and ensure the scientism and efficiency of accounting. There are many
different views on the organization of accounts system.
According to the authors: ''Organization of accounts system is the task of applying
the system of accounts under current regulations into the acquisition and systematization
of information to be consistent with the characteristics and requirements of
management''.
The content of organization of accounts system as follows:
First – Determine the general and detailed account list employed at the agency in
terms of financial accounting and managerial accounting.
Second – Determine the content, structure and scope of notes on the general and
detailed accounts.

2.4.3. Organization of ledger system
According to the authors: “Organization of ledger system is to establish and build
the structure and how to take notes on the ledger system in accordance with the system
of accounts and managerial requirements of accounting record”.
Public service agencies may choose one of the following forms of accounting:
- Form of Journal - Ledger
- Form of Document far book entry
- Forms of General Journal
- Form of computerized accounting
2.4.4. Organization of financial statement and financial statement analysis
2.4.4.1. Organization of financial statement system
According to the author, the content of organization of financial statements
includes:
(i) The selection and design of financial statement: financial statement is a
consistent and compulsory accounting report. Each agency must choose the forms and
the quantity of report, which complies with the provisions of the current accounting

regime.
(ii) The organization of presenting information on financial statements is the task
of establishing accounting reports. This stage includes: determining the reporting period;
preparing of data resources, forms and technical means of establishing reports; forming a
report in accordance with the principles and specific guidance on establishing and
presenting the financial statements provided in the current accounting regime.
2.4.4.2. Analysis of financial statements
Accounting record in public service agencies needs to analyze the current situation
of using funds, revenues and expenditures based on the method of comparison which
analyzes an indicator by comparing it with a ground index (the original index).
2.4.5. Organization of accounting inspection
According to Article 4, Clause 10 of the Law on accounting: “accounting
inspection is the task of reviewing and assessing the compliance with the law on
accounting, the truthfulness and accuracy of information and accounting figures''.
Contents of accounting inspection: According to Article 35 of the Law on
accounting: the agency must be subject to inspection by the competent accounting
agency with no more than one inspection of the same content in one year. The
accounting inspection is conducted only after the decision of the competent authority in
accordance with law.


2.5. Accounting standards applied to the public sector and lessons for Vietnam

2.5.2. The system of international public sector accounting standards

2.5.1. The definition of accounting standards

So far, the International Public Sector Accounting Standards Board (IPSASB) of
International Federation of Accountants (IFAC) has released 32 accounting standards
public sectors, also called international public sector accounting standards.

Public Sector Accounting Standards provides provisions related to the recognition,
evaluation, presentation and announcement of the transactions and events in the financial
statements of the public sectors. [12, p24]
2.5.2. The system of international accounting standards
Up to now, the Committee of international accounting standards for the public
sector (IPSASB) of the International Federation of Accountants (IFAC) has issued 32
accounting standards for the public sector, which is known as Standard international
public accounting.
In the trend of international economic integration, to harmonize and develop the
accounting profession globally, the goal of improving the quality of financial statement
systems has been strengthened worldwide. IPSASB issued IPSASs to encourage
acknowledgement and international harmony with these standards. Simultaneously, it
also issued guidelines addressing the issues and experience in forming financial
statements in the public sector.
2.5.3. The application of international accounting standards in several countries
around the world
The accounting standards applied by some countries in the organization for
economic cooperation and development (OECD) with the contents of accounting,
reporting and budgeting are listed in Table 1.1 (Appendix 13)
Therefore, it can be said many countries around the world have been applying the
international accounting standards or based on these accounting standards for the
construction of the national accounting standards applicable in their country.

In the trend of international economic integration, to harmonize and to develop
global accounting career, with the aim of improving the quality of International
Accounting Reporting Standards. IPSAB has released IPSASs, encouraging the
international recognition and harmony of these standards. It has also released instructions
for issues and experience when making financial report in public sector.
2.5.3. The application of international public sector accounting standards in some

countries in the world
The application ofinternational public sector accounting standards in some
countries in the Organization of Economic Cooperation and Development, according to
accounting contents, reports and national budget was shown in Table 1.1 (Appendix 13)
It can be said that many countries in the world has been applying international
public sector accounting standards or based on them to build national public sector
accounting standards to suitably apply in their countries.
2.5.4Empirical lessons for Vietnam
Based on researches on IPSASs and the application in PSASs in several countries
in the world, some empirical lessons can be drawn for Vietnam, i.e. authorized state
agencies, especially the Ministry of Finance, must research on and determine objectives
and objects applied in Public Sector Accouting Standards in Vietnam. Thereby,
researching procedures to promulgate in Vietnam can be suiable for economic and sociopolitic conditions of our country.

2.5.4 Lessons for Vietnam
Based on studies on IPSASs and the application of PSASs in some countries in the
world, lessons can be drawn for Vietnam. To be detailed, the state agency with
jurisdiction, especially the Ministry of Finance must study, identify targets and subjects
to be applied the public accounting standards in Vietnam then develop a roadmap for
studying and building to enact public accounting standards in VN which suit our
country’s economic, political and social conditions.
2.5. International accounting standards applied for public sector and Empirical
lessons for Vietnam
2.5.1. Definition of international public sector accounting standards
International public sector accounting standards (IPSASs) released provisions
related to recognition, evaluation, presentation and declaration transactions and events in
general financial report of public sectors. [12, p24]

CHAPTER 3
REALITY OF ORGANIZING ACCOUNGTING RECORDS

AT PUBLIC SERVICE AGENCIES
UNDER THE GENERAL DEPARTMENT OF GEOLOGY AND MINERALS
3.1. An overview of Public Service Agencies of the General Department of Geology
and Minerals
3.1.1. Structural system
According to the structure of General Department of Geology and Minerals, there
are an assisting apparatus for General Director and 14 subordinate units. The summary of
the structure of General Department of Geology and Minerals is in figure 3.1., for more
details see appendix 14.


* According to functions and responsibilitiesof assisting apparagus under General
Department of Geology and Minerals, including functions and responsibilities of Public
Service Sectors under General Department of Geology and Minerals, which are
federations, centers, geological museums and geologic magazines.

service activities, under the regulations of self-financing and to contribute to increase
savings income for their staff.

- Under General Department of Geology and Minerals,there consists of 9
federations, Geological Federation of Regional Map, Geological Federation of Southern
Map, Geological Federation of Southeast Map, Geological Federation of Northwest
Map, Geological Federation of North Central Map, Geological Federation of Central
Map, Federation of Intergeo, Geological Federation of rare radioactive substance and
Geophysical Federation.

3.1.3. Management system

- Centers:There are 3 ones, Center for Geologic Storage, Analytical and
Exprimental Center for Geology and Center for Geologic Testing and Technology.

3.1.2. Funtions and responsibilities
3.1.2.1 Funtions and responsibilities of Federations
Federations under General Department of Geology and Minerals are characterized
as follow:
Firstly, they are the public sectors under General Department of Geology and
Minerals which have legal entity seals, accounts and headquarters to perform basic
geologic survey and mineral exploration within the mainland.
Secondly,mineral explorationactivities of those federations are paid by state
budget, not directly reimbursed. In addition, they are encouraged to provide
organizations and individual with public service activities in mineral exploration, under
the regulations of self-financing and to contribute to increase income for workers.
Thirdly, the federations are originated from subordinate sectors, i.e. delegations
and main centers. Therefore, they have effects on organizing management apparatus and
financial decentralization.
3.1.2. 2 Funtions and responsibilities of centers
Centers underGeneral Department of Geology and Minerals are characterized as
follow:
Thứ nhất: they are the public sectors under General Department of Geology and
Minerals which have legal entity seals, accounts and headquarters to cooperate with
federations to perform basic geologic survey and mineral exploration within the
mainland in execution supervising, checking and testing over weight and quality of
geological projects, storing information and analyzing samples, etc.
Secondly, the centers under General Department of Geology and Minerals are the
ones performing professional duties under prescription. They are funded by state budget,
not directly reimbursed. In addition, the centers are encouraged to provide geologic

Thirdly, they are formed to cooperate and assist federations in basic geologic
investigation, mineral exploration within the mainland.
To well perform the functions and responsibilities in providing public geologic
service, federations and centers have to organize management apparatus so that it is

suitable for their own performing characteristics. According to results of General
Department of Geology and Mineralsweb access, models of management apparatus are
as follow:
* Federation management model
The management apparatus of federations consists of federation leaders, assisting
apparatus for federation chief and subordinate sectors.
* Centers are the public sectors under General Department of Geology and
Minerals which have legal entity seals, accounts and headquarters to cooperate with
federations to perform testing and analysis, information storage, geologic technology
accreditation.
3.1.4. Financial management
3.1.4.1. Financial management mechandism
Since 2007, the decree No. 43/2006/NĐ–CP issued on 25/04/2006 by
governmentprescribed autonomy, self-responsibility for task performance, organizational
apparatus, payroll and finance to puclic sectors (referred to as Decree 43), 100% of
public sectors under General Department of Geology and Minerals was granted
autonomy on spending on the entire regular activities.
* Decree 43 allowed these sectors to be autonomous in development and
implementation of cost estimates consistent with practical requirements and in
independent setting and using funds for business activities, bonus, welfare, and income
stabilization reserves and additional income for workers.
3.1.4.2. Financial management
* Financial sources
According to statistics of geology and mineral Vietnam, financing structure of
economic sectors (federations and centers) under General Department of Geology and
Minerals is shown in figure 3.1


Figure 3.1. Financing

structure of puclic sectors under General
Department of Geology and Minerals between 2009 and 2013

According to the surveyed results at the federations, the centers underGeneral
Department of Geology and Minerals have statistical accounting department including
parts of accounting and economic apparatus of subordinate sectors. The functions and
responsibilities of accounting apparatus are as follow:
3.2.1.3. HR organizational structure and accounting work division
a. HR organizational structureat accounting department of federations and
centers

Nguồn: Tổng Cục Địa chất và Khoáng sản Việt Nam
It is shown that financial autonomy has contributed to encourage public sectors
under General Department of Geology and Mineralsto actively complete tasks under
State orders and to find and implement the contract of geologic production service
businessto improve the effectiveness of geological supply and the living standards of
workers.
3.2. Reality in organizing accounting at public sectors under General Department
of Geology and Minerals
3.2.1. Organizing accounting apparatus
3.2.1.1 Forms of organizing accounting apparatus
Models of organizing accounting apparatusat these sectors can be generalized as
follow:
- Organizing centralized accountingmodel: This accounting model has been
applied at four out of twelve sectors (the Geological Federation of Northern Map and
three centers), accounting for 30% of the total surveyed sectors, according to diagram
3.5 (see appendix 18 for more information).
- Organizing distributed accounting model: According to the survey, there are
two federations organizing distributed accounting (Geological Federation of Northwest,
Geological Federation of rare radioactive substance), making up 16.66.

- Organizing both centralizedand distributed accounting model: This model has been
set up at most of the federations, including six out of twelve sectors, accounting for
more than 50% surveyed sectors (Geological Federation of Southern Map,Geological
Federation of Northeast Map, Geological Federation of North Central Map, Federation
of Intergeo, Federation of Central Map and Geophysical Federation) as shown in
diagram 3.7 (see appendix 20 for more details)
Three centers underGeneral Department of Geology and Minerals have applied
centralized accounting model. This accounting model is suitable for the size and
management characteristics of these sectors.
3.2.1.2 Funtions and responsibilities of accounting apparatus

According to interviews, federations and centers under General Department of
Geology and Minerals Vietnam has established the structure of accounting department
based on processing and accounting objects.
b. Assigning accountant tasks
How tasks are are assignedaccountants to accountants at federations and centers is
suitable for the accounting apparatus fulfill the mandates.
3.2.2. Accounting structure at public service sectors
3.2.2.1. Organizing system of accounting document
According to the results of the survey on organizing system of accounting
document at public service sectors under General Department of Geology and Minerals
Vietnam, based on documents issued by Decision No. 19/2006/QĐ –BTCdated
30/3/2006 by Minister of Finance, amended under Circular No. 185/2010/TT-BTC
dated15/11/2010 to give instructions on accounting regulations of public service sectors
issued byDecision No.19/2006/QĐ –BTCdated 30/3/2006 by Minister of Finance and
special geologic document, released by Official Dispatch No. 4792/ BTNMT –
KHTCdated 30/12/2004 on additional geologic accounting system of public sector by
Ministry of Natural Resources and Environment (referred to asDispatch No. 4792/
BTNMT – KHTC)
3.2.2.2. Organizing account system

Federations and centers General Department of Geology and Minerals Vietnam
has organized a system of accounts for the sectorsm based on the system of accounts
prescribedat accounting system, released under Decision No. 19/2006/QĐ –BTC,
amended under Circular No. 185/2010/TT-BTC, based on specific characteristics of evert
sector to establish a system of accounts in their own sectors.
The results of the survey has shown that accounts generally used at the sectors are
detailed as specified in the system regulations issued under Division 19/2006/QĐ-BTC.
However, the sectors hasn’t attached special importance to open detailed accounts to
serve internal administration.
3.2.2.3. Organizing a system of books
Through the surveyed results, Federations and centers underGeneral Department
of Geology and Minerals Vietnam has organized the system of books as follow:


Firstly,All federations and subordinated sectors choose to use the form “booking
entries” and has computerized accounting work.These sectors hired Mr. Phạm Hữu
Thắng – chief accountant ofGeneral Department of Geology and Minerals Vietnam to
write the accounting software named “AC -2005” which has been used since 2006.
Secondly:A list of accounting book samples used at the sectors consists of the full
list of accounting books issued by decision 19/2006 / BTC, amended by Circular No.
185/2010/TT-BTC the list of accounting books specialized for geology, issued by
Circular No. 4792/ BTNMT – KHTC.
Thirdly: The order of accounting book entries of the sectors
According to results of the survey, Federations and Centers has computerized
accounting and has been using “AC 2005” software. Booking entries at these sectors are
all done on this accounting software. Accounting statistics are generalized on Excel
which can connect data from delegations (subordinate sectors) with federal statistics.
Ledger for supplies and fixed assets are done on excel.
3.2.2.4 Organizing accounting reporting system and financial statements analysis
a. Organizing accounting reporting system

All sectors fully complied financial reports in 2013, in accordance with the forms
prescribed, which are 10 financial reportsissued by Decisions 19 and 4 reported by
Dispatch No. 4792. Basically, those financial reportsreflect correctly economic and
financial reality, meeting the deadline at the end of March 2014 as prescribed. However,
observing financial reports of surveyed sectors shows that the notesto the financial
statements in 2013 insufficiently reflected some indicators.
b. Organizing financial statements analysis
Through survey, federations and subordinate sectors organized financial analysis
and set up specific plans to put the analysis process in order. Through statistics and the
results generalized in annual financial reports, the sectors collate, calculate and compare
related statistics to evaluate the financial management. The contents of the analysis focus
on analyzing the estimates of revenues - expenditures, funding status and settlement,
assetsmanagement and use.
3.2.2.5 Organizing accounting inspection
Accounting inspection in federations General Department of Geology and
Minerals Vietnamincludes internal self-inspection of accounting apparatus and external
inspection of authorities and related parties.
3.3. Evaluation on the reality of organizing accounting in public sectors under
General Department of Geology and Minerals Vietnam
3.3.1. Advantages of organizing accounting in public sectors
Firstly, organizing accounting apparatus
The selection of current accounting modelis relatively suitable for management

conditions and scale of the sectors. All accountants are assigned based on academic
ability, ensuring proper professional standards as prescribed. Accountants at federations
are high qualified, meeting current criteria as prescribed and the number of senior staff
make up high proportion.
Secondly, organizing accounting
About organizing accounting documents,the establishment of accounting
documents greatly contribute in controlling revenues and expenditures and the

management and use fixed assets. Thereby, the management of revenues and
expenditures are enforced so as to increase the effectiveness in using fixed assets and
other resources.
About organizing accounts, the organization of the system of financial and
accounting accounts fully met the requirements of managing and controlling irregular
expenditures, expenditures for performing professional duties of geology, for geologic
business service, contributing to strict management of revenues and expenditures, and to
use fixed assets and resources properly.
About organizing accounting report, the process of financial reporting of surveyed
sectors basically abode reporting procedures, ensuring right contents and forms, etc.
This creates advantages for inspection, annual financial appraisal as prescribed by the
State, contributing to the effectiveness of assets, supplies and expenditure management
and use.
- The number of units having inadequate bookkeepings in pursuance to the current
accounting regime.
- Some bookkeepings are designed unscientifically, inaccurately, unsuitably for
specific charactiristics of business activities in the PSU.
-

The sample of detailed accounts (form S33-H) is not accordant with the practice.

For organizing accounting statements: the actual survey findings indicated that
some existing problems in the accounting report system in the Federations were:
- Contents of some reports like the FS on revenues and expenditures were
unreasonable and unscientific.
- Making Balance sheets followed the form B01-H was only formally, had little
effect in providing information about the financial affairs.
- According to the survey, making notes to financial statements was fully taken care
of its content, analysis and causal assessment to help readers correctly understand
about the financial affairs.

3.3.3 Causes of limitations in organizing accounting in the PSU
* Objective reasons:
Currently, the PSU of the DGMV are consistent with the application of
administrative and non – business accounting regime according to Decision No.


19/2006/QD-BTC dated 3rd March 2003 and Circular No. 185/2010/TT-BTC dated 14th
December 2010, of the Ministry of Finance, which provides guidance for amendment
and supplement of administrative and non – business accounting regime. Although
accounting regime was amemded these shortcomings and added new contents, it has not
met the requirements of practical development.
* Subjective reasons:
- The leader’s concepts about the role of accounting in general and accounting system in
particular are slow to renovate.
- The coordination between accounting department and other parts has not been closed,
which makes turnover problems, checks and treatments of voucher unscientific,
unreasonable and tardy.
- Accounting in the PSU of the DGMV has not been carefully studied the current Law
system and guidance documents, then when applying to accounting works, this
application is not pursuant to the rules.
- The PSU of the DGMV have not used IT efficiently in organizing accounting.
CHAPTER 4: THE ORIENTATION AND SOLUTION FOR ACCOUNTING
RECORDS IN PUBLIC SERVICE UNITS DIRECTLY UNDER THE GENERAL
DEPARTMENT OF GEOLOGY AND MINERALS OF VIETNAM
4.1 The strategic orientation of minerals and the basic geological survey plan to
2020, with visions to 2030.
4.1.1 Strategic orientation of minerals until 2020 and vision to 2030
Prime Minister has approved the strategy for mineral resources to 2020 with a
vision toward 2030 with one of directive viewpoints: the survey and evaluation of the
mineral resources must be implemented in advance to clarify the potential of mineral

resources for planning exploration, exploitation, processing, and use of mineral resources
and national reserves.
The strategy prioritizes for investment in basic survey of geological minerals both
land and sea and islands in order to clarify the potential mineral resources; exploration
and exploitation of minerals associated with processing and efficient use. Balance
between exploitation with reserce of minerals, sustainable development of mining
industry associated with the environmental protection and ensuring national defense –
security.
The objective of this strategy is that mining of mineral must be associated with
processing, creating products of high economic value; to 2020 it shall terminate the
facilities processing minerals scattered, outdated technology, low economic efficiency
and contaminating environment; forming the industry zones processing minerals
concentrated with advanced technology, the scale corresponding to potential of each type
of mineral.

4.1.2 The plan on basic geological survey of mineral resources until 2020 and vision to
2030
The plan on basic geological survey of mineral resources until 2020 with
orientations toward 2030 has just been approved by the Prime Minister in Decision No.
1388/QD-TTg dated 13th August 2013 with the viewpoint following: to plan the survey
and discovery of minerals together with the making of maps of area geology, hazard
geology, environmental geology, marine geology and mineral resources, and geological
and mineral research maps of 1:50,000 scale for the mainland and of 1:500,000 or larger
for Vietnam’s maritime zones along with detailed surveys, aiming to clarify the
structure, genesis and development of the earth’s crust to serve socio-economic
development, national defense and security demands.
4.2 The concept of completing accounting records in public non – business units
directly under the General Department of Geology and Minerals of Vietnam.
Accounting organization (AO) in public service units (PSU) directly under the
General Department of Geology and Minerals of Vietnam (DGMV) needs to implement

following the oriented concepts:
Concept 1: Completing of organization of accounting activities in the PSU directly
under the DGMV must go together with improving the mechanism of financial
management and rasing awareness, promoting the important role of accounting in both
macro and microscale in financial management works.
Concept 2: Completing of organization of accounting activites in DGMV
subordinate units must be pursuant to provisions of the Accounting Law, the current
accounting regime and guidance on the implementation of the Law.
Concept 3: Completing the accounting organization has to ensure compliance
with not only the governance and administration system at all levels but also the
operational characteristics of the PSU directly under the DGMV.
Concept 4: Completing of organization of accounting activities has to base on the
application of modern information technology, ensure cost savings and increase the
labor productivity.
4.3 Solution for accounting organisation in the PSU directly under the DGMV.
4.3.1 Completing the legal framework for finance and accounting applicable to public
non – business units.
4.3.1.1 Studying, developing and promulgating accounting standards applicable to the
public sector as the basis for preparing and presenting financial statements
To deploy the General State Economy (GSE) model and have the legal basis for
the preparation of the State Financial Statement (FS) (synthesized from FSs of all public
sectors such as State agencies, the PSU and other organizations controlled by the
Government). The Ministry of Finance should urgently study, develop and promulgate


the accounting standards in accordance with the international accounting standard
system, according to the suitable process with Vietnamese conditions.
4.3.1.2 The Ministry of Finance should urgently study, develop and issue accounting
standards applicable to public service units.
Due to limited scope of the thesis, the author suggests contents of some accounting

standards for fixed assets (FA) and revenues and inventories:
4.3.1.3 Completing the financial regime on the FA management and use in the public
sector.
In short- term, without studying and issuing the public accounting standards, it is
necessary to urgently supplement, amend the financial regime on the public assets
management and use for inadequate contents in Circular No.162/2014/TT-BTC.
4.3.2 Completing the accounting organization in the PSU directly under the DGMV
4.3.2.1 Completing the organization of accounting system in the PSU
The Federations of the DGMV should apply uniformly the decentralized
accounting model according to figure 2.6. Applying currently centralized model in
centers is the most correspondent with the reality, which contributes to enhance the
efficiency of financial management under the autonomy mechanism.
Table 4.1: Mixed model
Financial accounting

Other functional
deparments

Managerial accounting
Financial accounting

Building norms

Firstly, names of some vouchers need to be amended to match with their reflecting
contents
Secondly, the preservation and storage of vouchers
Agencies should locate the standard storage room for accounting records and these
accounting records need to be backed up to CD ROMs, USB and performed the
preservation and storage regime as regulations.
2) Completion of organizing chart of accounts

Chart of accounts applicable to the PSU directly under the DGMV need amending
and adding some contents in two groups of solutions:
First, completing the current chart of accounts, open more detailed accounts for
internal management, specifically in appendix 35.
Second, perfecting the output accounting of instruments and tools to subtainably
use for operations.
Fixed assets (FA) in Vietnamese Geology and Minerals entities used a lot of
instruments, tools over many accounting periods such as drilling rod, drilling casing,
drilling bit, locality…). These instruments are classified as subtainable tools; however,
when agencies use these tools in their works, the costs calculated in the total
expenditures without gradual distribution, which did not follow the rules. With these
long lasting instruments, agencies make out an account pursuant to regulations issued on
Decision No. 19/2006/QD-BTC.
3) Completion of applying bookkeeping system and accounting types
Bookkeeping system of the PSU directly under the DGMV also needs to improve.
Namely:
First, amending the form of detailed accounts S33-H compliant with the practice.

Payment accounting

Estimates

Analysis, assessment

Indentifying spent
resources based on kind
and labor.

Project research

4) Completion of organizing accounting reports
I propose some solutions to improve FS system in the PSU directly under the
DGMV as followings:

Banking accounting
…

Second, supplementing some detailed bookkeepings.

Identifying estimates of
kind and labor

General accounting

Firstly, completing revenue and expenditure reports of non-business activities and
business activities – Sample B03-H (appendix 42)
Secondly, completing Balance sheets

4.3.2.2 Improvement of organizing accounting activities in the PSU
(1) Solutions of completing organization of accounting voucher system
This improvement needs to perform and overcome shortcomings in the
implementation process in accordance with the current regulations of the State.
Specifically:

The author said that Balance sheets should be designed as appendix 46 with
supplements, amendments following:
(1)
payables.

Reorganizing and guiding to make indicators related to receivables and

(2) Eliminating detailed indicators of each tangible FA, each fund and
difference of revenue and expenditure activities. These indicators moved to Notes of
financial statements.

- Completing legal documents and promoting the PSU autonomy mechanism,
socialization of providing geological business service, encouraging contributions of
people and organizations through the voluntary capital contribution to this business.

(3) Updating indicators on the Balance sheet in accordance with Circular
No.185/2009/TT-BTC on amending and adding accounting regime of administrative,
non- profit units.

- The State continues to hold the decisive role, increase investment for
infracstructure of basic public services and restructure the frequent state budget
expenditure for providing public services.

Thirdly, completing Notes of Financial Statement – sample B06 – H
Subordinate units of the DMGV showed that it is necessary to perfect some
contents of making the notes of FS.
(1) More supplementing the indicator: “Depreciation of FA, participation in
business activities and those by function and task of each agency” on the indicator IV of
the notes of FS to help authorities and leaders manage efficiently FA in their agencies.

- Beside the promulgation of Accounting Law, the accounting regime applicable to
administrative and non – business units and the reform of public administration, the State
should enact Vietnamese system of public accounting standards in accordance with
IPASs and characteristics of these Vietnamese units.
4.4.2. The State’s authorities

(2)
Adding some information notes for general reports like the Balance sheet,
reports of revenue and expenditure differences in non – profit activities and business
ones.

- Instructing to deploy and assess the results of initially implementing financial
autonomy in the PSU in general and those of the DGMV in particular. Hence, proposing
some measures to complete financial management mechanism in accordance with the
local and the DGMV sector.

(3)
Agencies need to be consistent in making indicator 2 – performing basic
indicators of section I – The situation of performing administrative and non – profit
tasks.

- Clearly identifying the objective of calculating the cost in the right and sufficient
way to determine the appropriate price, as a basis to require providers of relevant quality
services and finding collective ways relevant to each object.

Forthty, supplementing Cash Flow Statement
The PSU directly under the DGMV should supplement the Cash Flow Statement
(appendix 47)
Fifthly, supplementing General report of performing the business contract on the
geology service and other service contracts.
The author suggested that it is necessary to add on “General report of performing
the business contract on the geology service and other service contracts” (appendix 48)
(4)

Solution to complete the organization of accounting reports

DGMV entities should perform contents of analyzing FS as other the PSU (i)
Analyzing the reality of implementing estimated indicators (ii) Analyzing business
results (iii) Analyzing the statement of fund extractions.
4.4. Conditions for performing the above solutions
The author suggested that the above measures are feasible when the Minister of
Finance, the State’s authorities need to promulgate and perform some specific contents
as followings:

- Making policies to attract investment for Geology sector, flourishing geological
talents, having the suitable welfare regime for employees.
- Completing assessment and check activities in the PSU in general and those of
DGMV in particular.
4.4.3. The PSU directly under the DGMV
- Basing on business characteristics, decentralization and the accounting one,
financial regulations applicable to non – business units to organize accounting suitable
for the scale and type of operation, in accordance with financial regime, administrative
and non – business accounting, promote the optimizing use efficiency of resources.
- Leaders of each unit and accountants have to really change in awareness of
information technology, accounting software applicable to accounting works.
- Flourishing accountant staffs that are not only professional but also proficient in
IT.
CONCLUSION OF CHAPTER 4

4.4.1 The Minister of Finance
- Renovating financial mechanism in the PSU as directions: autonomy, self –
responsibility for the combination of perfoming duties, human resources, finance,
property when providing services associated with the social needs.

This chapter studied the completion of organizing accounts in the PSU directly

under the sDGMV with 3 main contents:


(1)
The development orientation of minerals and the basic geological survey
plan to 2020, with visions to 2030
(2)

Concepts of completing AO in the PSU directly under the DGMV

(3)
Solutions to complete AO in the PSU of the DGMV are based on existing
limitations and their feasibility in accordance with characteristics of each units, which
ensured to operate followed administrative and non – business accounting regime and be
relevant to related fical and tax policies. These measures included completion of legal
framework of accounting and improvement of AO in the PSU.
(4)
These solutions mentioned in this sector will make AO in the PSU better.
However, sucessful conditions of these measures are those of the State, management
authorities and subordinate units. This is also one of contents mentioned in this chapter.

CONCLUSION
To begin with studying theorical and practical basis of AO in the PSU of the
DGMV in the thesis: “Accounting organisation in the PSU directly under the
DGMV” and the development trend, obvious requirements of fiscal management,
achievements of this project are:
Vietnam.

Generalizing basic theories of AC contents in the PSU.
Studying the IPASs application in some countries worldwide and lessons for

Studying, analyzing and assessing the reality of organizing accouting in
subordinate units of the DGMV with main contents: organizing accouting system and
accounting activites.
Analysing and assessing the reality of AO contents, hence proposing
solutions to improve efficiency and quality of AO in subordinate units of the DGMV on
2 aspects: completing the legal framework of accounting and the accounting
organization.
Analysing the necessary conditions for these solutions mentioned in the
thesis such as those of the authority, the PSU directly under the DGMV.
Based on the findings in my thesis and their explanations having scientific basis of
both theory and practice, correspondent and scientific study methods; the contents of the
project met the objective, object and scope of the research. The results of this thesis also
contributed to consolidate theorical basis of AO in the PSU, silmultanously, they can be
applicable to the reality of AO in the PSU directly under the DGMV.