1. STATEMENT OF THE PROBLEM
The goal is to develop new financing mechanisms for education, to
mobilize and effectively use the resources of the state and society to
improve the quality and scale up education and training to meet the
industrialization and modernization of the country. So the financial
management innovation, diversification of resources and improvement of
the efficiency of investment are indispensable action in the implementation
of basic reform of the Vietnam education today.
Northwest Region includes Dien Bien, Lai Chau, Son La, Hoa Binh
Province with seven colleges which were decentralized autonomy including
financial autonomy under Decree 43/2006/ND - CP of the government. In
fact, the implementation of the autonomy of the actual cases is low; the
financial resource which mobilized from the budget is too small, mainly in
artifacts and labor power. The implementation of the autonomy does not
associate social missions and responsibility, especially does not meet the
requirements for financial management in conditions of autonomy, ensure
the effect, flexibility, publicity, etc.
To be able to make good financial autonomy and social
responsibility to create conditions for the colleges in the Northwest to
accomplish basic goals of comprehensive education reform, the making of
"Scientific basis and solutions of implementing autonomy and social
responsibility in financial management of colleges in the Northwest" to
contribute to the economic and cultural construction and development of
the provinces in the Northwest in the current period is necessary.
2. AIM OF THE STUDY
Basing on the basis of theoretical and practical research, the author
suggests solutions to implement the autonomy and social responsibility
better in financial management of colleges in the Northwest.
3. OBJECTS AND SUBJECTS
- The objects of study: The public colleges in the Northwest.
- Subjects: The financial management activities under the
implementation of the autonomy and social responsibility.
The financial management of the colleges in the Northwest is
limited. The degree of autonomy and ability of implementing the social
responsibility in finance is also low and causes obstacles for the training
activities of school. If the proposed solution performs the autonomy and
social responsibility in financial management better, the school will expand
revenues, use the financial resources more effectively to meet the
development in the new period.
5. MISSION OF THE STUDY
- The study establishes a theoretical basis for the implementation of
autonomy and social responsibility in financial management of public
- It also surveys, analyzes and assesses the status of implementation
of the autonomy and social responsibility in financial management of
colleges in the Northwest.
- The study proposes solutions to implement the autonomy and
social responsibility in financial management of colleges in the Northwest;
- To test the necessity and feasibility of proposed solutions; test
solutions to diversify revenue sources.
6. LIMITATION OF THE STUDY
- Content limitation: The dissertation only studies about
establishing a scientific basis for the issue of financial autonomy and social
responsibility in financial management.
- Limitation of the scope of the study: Dien Bien Technical –
Economic College, Son La College, Lai Chau Community College, Dien
Bien College of Education.
7. METHODOLOGY AND METHODS OF STUDY
To achieve the goal of the research, the dissertation uses 4 main
opinions: including systematic opinion, territorial opinion, synthetic
opinion, opinion of changeable management.
7.2. Methods of study
The research methods include survey, investigation, statistics,
synthetic analysis, theoretical study, and testing methods.
8. EXPECTED RESULTS
Result 1: The financial management in the implementation
mechanism of autonomy and social responsibility in public colleges is
necessary problems. Financial management in the school when
implementing the autonomy needs to have four requirements: efficiency,
flexibility, publicity, transparency, and fully develop from the terms of
financial autonomy and social responsibility’s rights of higher education’s
institutions obviously to the criteria to get the full awareness and orientation
for implementing evaluation.
Result 2: The implementation of the financial autonomy and social
responsibility of colleges in the Northwest still has certain limitations.
These limitations are expressed through evaluating results.
Result 3: The solutions which the study makes, is effective to
enhance the financial autonomy and social responsibility of public colleges
in the Northwest.
9. SIGNIFICANCES OF THE STUDY
- In terms of theory: The study clearly stated the theory of the
financial autonomy and social responsibility and made four requirements in
the financial management.
- This is the first time that the assessment of the autonomy and
social responsibility in financial management of public colleges in the
Northwest based on the AHP method and five criteria and targets.
- The study also proposes management solutions, the effective use
of financial resources in the research field.
10. DESIGN OF THE STUDY
Chapter 1: Theoretical basic for implementation ò autonomy and
social responsibility in financial management of the public colleges and
other nations’ experiences.
Chapter 2: Current situation of implementing the autonomy and
social responsibility in financial management of colleges in the Northwest.
Chapter 3: Solutions of implementing autonomy and social
responsibility in financial management of colleges in the Northwest.
THEORETICAL BASIS FOR IMPLEMENTATION OF AUTONOMY
AND SOCIAL RESPONSIBILITY IN FINANCIAL MANAGEMENT OF
THE PUBLIC COLLEGES AND OTHER NATIONS’ EXPERIENCES
1.1. LITERATURE REVIEW
1.1.1. Oversea researches
In the world, universities are given autonomy very early. Wilhelm
Von Humboldt stated the premise principles of the freedom of teaching and
learning which are the earliest. The Board of Education (Education
Commission, 1964-1966) suggested that the problem of academic freedom
for teachers was a necessary requirement. Salmi (2009) said that schools’
autonomy created a favorable environment management to develop the
academic freedom, focus on human resource and mobilize financial
resources. Thomas Estermann and Terhi Nokkala also discussed this issue.
Generally, there are many researches with a lot of contents and different
criteria of autonomy and social responsibility in the world such as:
Germany, UK, USA, France, China, Singapore, etc.
In Vietnam, in recent years, there have been many organizations
and individuals who have studied the financial autonomy and social
responsibility issues. Hayden and Thiep (2006, 2007) in "A 2020 Vision for
Vietnam" and "Institutional Autonomy for HE in Vietnam", said Vietnam
HE innovation associated with innovation of management and ensured
autonomy for universities. The guidelines and policies of the Party and the
State in the education reform also mentioned this content. The studies of
Pham Quang Sang, Pham Phu, Ngo Doan Dai, Vu Ngoc Hai, Dang Ung
Van, Le Duc Ngoc,... deeply analyzed the theoretical system and set out a
number of real solutions of the autonomy . However, these researches study
generally on the higher education system in the world and Vietnam, do not
mention to the financial autonomy and social responsibility for public
colleges in the Northwest in Viet Nam. These researches are analyzed to be
the basis for the author to study, inherit the selected results for the
1.1.2. Domestic researches
In Vietnam, from 1998 to the present, the financial autonomy and
social responsibility issue has been researched by many authors who
focused on a number of key issues including: learning management
experience from other countries in the world, the study of theoretical and
practical basis of decentralized management and the financial management
basing on the autonomy and social responsibility; proposing a number of
solutions for each specific case.
1.2. COLLEGE AND THE ROLE OF FINANCIAL RESOURCES
1.2.1. The mission of colleges to the social - economic development
- Training college level contributes to the development of human
resources; promote the economic growth and sustainability, poverty
- Extending the adaptable flexibility meets the requirements of
human resources of labor market.
- Training college level contributes to the creating social justice.
1.2.2. The role of financial resources for the development of colleges
Finance represents the movement of cash funds held in any subjects
in the society. Finance plays an important role in higher education and
college such as: maintaining the operation of the schools, dominating the
scale, objectives, quality of education.
OF FINANCIAL MANAGEMENT OF
1.3.1. Financial management in public colleges
Analysis of some concepts of management, finance, financial
management is by a broad sense, narrow sense and in a variety of different
188.8.131.52. Contents of financial management in colleges
The contents of financial management in colleges include the
revenue management, expenditure management which determine the
specific revenues and expenditure items.
1.3.2. Decentralisation management and financial management
Decentralisation aims to give local and educational institutions
more autonomy. However, decentralization in education and training
depends heavily on the ability and incentive management hierarchy of
authorities. Hanson (1998) suggested that the process of decentralization,
including fiduciary duties, authorization and decentralization.
Decentralisation of education in Vietnam is reflected in legislation
such as the 2002 Budget Law, Decree 10 and Decree 43; ... The three main
areas of decentralization of the education in our country are:
Decentralization of activities, organizing payroll and finance. The colleges
in the Northwest have very little real power when MOET still centralizes
the management of the professional, training curriculum, opens training
code and Provincial People's Committees closely manage personnel and
finance, so though the role of fiscal decentralization is huge but the actual
current process does not have a strong impact on the efficiency of financial
management of the school.
1.3.3. Autonomy and financial autonomy
184.108.40.206. The concept of autonomy
There are many organizations and individuals who provide a
definition, the concept of financial autonomy. Overall, the authors have
made the points, the concept of autonomy and financial autonomy at two
angles. First, in terms of resources, the autonomy associates with the
financial resources of the autonomy of the creation, distribution and use of
cash resources including the state budget and state extra-budgetary
resources. Second, in terms of subjects, financial autonomy of educational
institutions must be linked to the subjects (legal subjects, economic
220.127.116.11. The nature of the autonomy
The nature of the autonomy is the cultural decentralized
management which depends on many factors such as policies, regulations
and policies of the state, the dynamic, innovative personnel system, quality
assurance system which should be received the concern of all stakeholders
such as the State, school, business, clients, students in the process of every
step of autonomy.
18.104.22.168. The content of the autonomy
Autonomy - self-responsibility in the educational institutions show
in all operating areas of the school including personnel autonomy,
autonomy in school activities and financial autonomy. Each specific content
can be analyzed in the dissertation.
22.214.171.124. The level of the autonomy
The autonomy consists of 3 levels: Full, partial autonomy and selfreliance in terms of guaranteed full funding. Each form of autonomy is
specified the content and implementation by the State.
126.96.36.199. The relationship between financial autonomy with other
autonomous colleges, universities
Administrative autonomy will not achieve if 4 contents:
Organization, personnel, financial, academic do not deliver at the same
time. It is also a condition for autonomy. Financial autonomy will facilitate
the university initiative in the use of funds, reorganize apparatus, lay out
work, improve efficiency, quality education and scientific research and
gradually raise the income of officials and employees of each school.
1.3.4. The social responsibility in the financial management of colleges
188.8.131.52. The concept of the social responsibility
The social responsibility is generally understood that the school is
self-evaluation and monitors the implementation of the provisions of the
State, is ready to explain publicity and transparency of the activities of the
school and is responsible for its performance, ready to explain to the
stakeholders to ensure the interests of the school itself, the State, and the
school's social community.
184.108.40.206. The nature of the social responsibility
Social responsibility is the ethical report of the obligation and
management of the activities and results; explains the results of
implementation and admits responsibility for all the unexpected results of
the school for stakeholders.
220.127.116.11. The content of the social responsibility of school in financial
The social responsibility of school in financial management
includes: Determining the input factors and the minimum necessary
investment and the use of financial resources effectively; being responsible
for the use of state budget in accordance with the regulations; having full
responsibility for the suitability of the training programs; making specific
regulations about people who authorize to make the decision of income or
outcome finance; ready to explain decisions accompanied by evidence
when anyone asks.
1.3.5. The relationship between autonomy and social responsibility in
financial management of colleges
Autonomy and social responsibility are always two sides of an
issue. The financial autonomy is always necessary to implement social
responsibility to the State, the school, learners and stakeholders.
1.4. FACTORS AFFECT TO THE AUTONOMY AND SOCIAL
RESPONSIBILITY OF COLLEGES’ FINANCIAL MANAGEMENT
1.4.1. Guidelines and policies of the State
The State makes the oriented development of higher education
through construction of goals, steps and solutions, building sanctions,
building systems and policies; direct implementation and monitoring.
1.4.2. Perceptions of administrators, faculty, staff autonomy and social
responsibility in financial management
Perceptions of administrators, teachers, school staffs about financial
autonomy and social responsibility affect mainly the implementation of
successful or unsuccessful this content.
1.4.3. Organizational level, the ability of school administrators in the
mobilization and use of financial resources
To implement the financial management of the school, it is
necessary to have managers who have the practical abilities such as:
Planning ability, the ability of connection and resource mobilization, the
ability of financial management; and a number of skills such as: Changing
management skill, negotiation skill, time management skill, risk
management skill, etc.
1.4.4. Economic – social conditions of the local area where the school
locates and serves
The practice has proved, any objects located in areas with favorable
natural conditions, the local economic and social development will be
leveraged lots of benefits and contrary to the socialization of education,
attract the capitals, improve the quality of teaching, etc.
MANAGEMENT OF THE SCHOOL WHEN IMPLEMENTING THE
AUTONOMY AND SOCIAL RESPONSIBILITY
1.5.1. Assurance of the efficiency
Efficiency which is an important indicator of the financial
management of a school is shown by the quantitative indicators of the
structure of revenues and expenditures.
1.5.2 Assurance of flexibility
Flexibility in financial management follows the autonomy and
social responsibility of the school is sticking with the provisions of the State
to find flexibly, exploit, and diversify the income sources; flexibility in
determining order of priority tasks to perform its important function.
1.5.3. Assurance of transparency
Transparency is the essential requirement for the implementation of
financial autonomy and social responsibility of each school. Transparency
in financial management is made basing on the publicity, accurate
management of entire operations including revenue-cost structure,
personnel of schools and stakeholders.
1.5.4. Assurance of publicity
Financial publicity in the school is notified of collection activities financial cost to the stakeholders. Forms have been publicly specified by
1.6. ASSESSMENT METHOD
1.6.1. Selection of evaluation criteria
The dissertation selects five evaluation criteria. The basis for
selection criteria bases on Decree No. 43/2006/ND-CP dated 25/4/2006 of
the State, Circular 09/2009/TT-BGDDT May 7, 2009 of the Minister of
Education and Training, etc.
The dissertation uses the evaluation method AHP (Analytical
Hierarchy Process) by Saaty. These methods have many advantages
because of its simultaneous evaluation criteria which are quantitative and
qualitative. AHP evaluation method is implemented through the following
- Criterion 1: Criterion of the level of participation of management
staffs is in the implementation of financial autonomy. This criterion is
assessed by the criteria level of access, participation, deployment and
implementation of content about financial autonomy.
- Criterion 2: Criterion of the level of performance on the social
responsibility is in the financial sector. This criterion is assessed by
measuring indicators of the level of responsibility with the person and
society, is responsible for the State, higher levels and is responsible for the
- Criterion 3: Criterion of the level of commitment to public
finances is assessed by levels of income and expenditure on public finances,
apparent seriousness, and readiness to explain when anyone asks.
- Criterion 4: Criterion of the group structure mainly refers to
whether the school can establish funds or not; how much the salary increase
for staffs is.
- Criterion 5: Criterion of structural revenue sources: the structural
revenue shows the ability of financial autonomy of schools. The higher the
diversified financial revenue is, the higher the ability of financial autonomy
1.6.2. Determining the weights of criteria
The implementation of financial autonomy and social responsibility
factors includes many factors with the different roles so that determining
the weight of each criterion is needed to classify the importance of each
factor in assessing the real manage financial autonomy.
1.6.3. Hierarchy of evaluation criteria
Each criterion is rated by level, each level has each target. The
target hierarchy is used includes four levels corresponding to it. There are
advantageous levels in the upside-down as well, pretty, average and weak
corresponding to the level from high to low points 4, 3, 2, 1.
Assessment is implemented in an individual assessment for each
subject, specific criteria and the overall assessment.
1.6.5. Assessment results
The overall assessment tells us the degree of autonomy and social
responsibility of the schools evaluated.
1.7. EXPERIENCE OF NATIONS ON THE IMPLEMENTATION OF
AUTONOMY AND SOCIAL RESPONSIBILITY IN FINANCIAL
MANAGEMENT OF HIGHER EDUCATION
1.7.1. Experience of America
They prioritize the investment in education, decentralize
specifically in financial management, create a competitive environment and
to use income resources efficiently.
1.7.2. Experience of Singapore
The high autonomy expresses in a number of policies: higher
wages, bonuses, allowances and flexible compensation scheme based on
international research achievements; higher wages, subsidies for faculties,
high-demand sectors of market; flexibility in funding research, increasing
position standards, etc.
1.7.3. Experience of Japan
Japan groups the universities to a number of criteria: autonomy,
performance management, strengthening supervision and monitoring from
outside the school system, recruitment system autonomy, the assessment of
case made by the three institutions: state-university-community.
1.7.4. Experience of China
Considering the state investment is mainly done to encourage
diversification of education, increases autonomy and self-responsibility for
1.7.5. Experience of Korea
Diversification of financial resources invests in education, decentralizes
high finance to local sources, and prioritizes for the main schools.
CONCLUSION OF CHAPTER 1
In Chapter 1, the dissertation has an overview of many researches
of many authors in the world and Vietnam on the issue of financial
autonomy and social responsibility in a system which are arranged in
chronological order. The dissertation selectively inherits advantages from
the necessary resources.
The dissertation opinion including: systematic opinion, territorial
opinion, synthetic opinion, opinion of changeable management in the
research process. It also determines clearly factors which affect the
performance of financial autonomy and social responsibility.
To implement autonomy and social responsibility in the school's
financial management, the dissertation has identified a number of basic
requirements which have important implications in the proposed solutions
for financial autonomy and social responsibility to be better.
Basing on the research results of scientists around the world and
Vietnam and combining with the expert advice and the author own
experience of the management, the author has developed five necessary
criteria to evaluate management activities objectively through the financial
CURRENT SITUATION OF IMPLEMENTATING THE
AUTONOMY AND SOCIAL RESPONSIBILITY IN FINANCIAL
MANAGEMENT OF COLLEGES IN THE NORTH-WEST
2.1. OVERVIEW OF NATURAL AND ECONOMIC – SOCIAL
CONDITIONS IN THE NORTH-WEST
2.1.1. Natural geographical features
Northwestern region, which consists of 4 provinces namely Lai
Chau, Dien Bien, Hoa Binh, Son La, suffers a lot of difficulties in natural
conditions such as topography, climate,...
2.1.2. Social - economic features
In the Northwestern region, social - economic conditions are
generally poor. The infrastructure is still at the low level. The living
standards of ethnic minorities are low and there are big differences
compared to the plain areas.
2.2. CURRENT STATES OF NORTH-WESTERN COLLEGES
- Training scale is growing with increasingly diverse training types.
- Quality of teaching and management staffs is constantly
improving to meet the increasing demand by the enlarging training scale
but certain limitations still remain.
- The structure of the financial sources is mainly from the state
budget level (above 70%), the proportion of state revenue is at a low level,
mostly from different kinds of fees.
2.3. THE TRAINING SCALES AND LEVELS OF FOUR STUDIED
2.3.1. Dien Bien Technical – Economic College
The size of the training has increased over the years in which the
rate of college students has gradually raised and the proportion of
vocational school students is maintained and targeted to be reduced.
2.3.2. The current situation at the Lai Chau Community College
Currently, it is allowed to train six majors of college level at the
college. In the recent years, the size of the school has been kept and
expanded quickly, from 711 students (in 2008) to 2,147 students (in 2011).
2.3.3. Son La College
The number of enrollments continues increasing over the years.
The training scale is constantly expanding both in industry and the number
of students. The training quality is increasingly enhanced.
2.3.4. Dien Bien College of Education
The number of enrollments continues increasing over the years, in
which the training scale at college levels accounts for a major proportion of
the training size.
2.4. ASSESSMENT OF FINANCIAL MANAGEMENT IN NORTHWESTERN COLLEGES BASED ON CERTAIN CRITERIA
2.4.1. Assessing the level of participation of officials and employees in
the implementation of financial autonomy
18.104.22.168. Identifying of the criteria and the level of assessment
Target participation of officials and employees in approaching the
contents of financial autonomy, building internal spending regulations in 04
Northwestern colleges is evaluated through four levels: Level 1: Not
allowed to participate; Level 2: Partly participate; Level 3: Mostly
participate; Level 4: Completely participate.
The results showed that the levels of participation of officials and
employees when performing financial autonomy are different. Dien Bien
Technical – Economic College and Son La College were fair. Two others
were only moderate. The thesis has analyzed concretely the reasons for
2.4.2. Assessing the level of implementing social responsibilities in the
22.214.171.124. Identifying of the criteria and the level of assessment
The dissertation selected the following criteria: The College
ensured the training quality as committed, using investing and studentscontributing funds effectively; explaining transparently to relevant parties,
ensuring the interests of students, staff, officials, teachers, former teachers.
Then, the evaluation based on the 4 levels from top to bottom.
The given assessment indicated that the public Northwestern
colleges performed their social responsibility in the financial field at a fair
level; in which, Dien Bien Technical - Economic College was at the highest
rank, followed by Son La College, Dien Bien College of Education and Lai
Chau Community College stood at the end of the four colleges.
2.4.3. Assessing the performance of the publicity in financial
126.96.36.199. Identifying of the criteria and the level of assessment
The Circular No. 09/2009/TT-BGDĐT dated 07/5/2009 on
promulgating regulations to publicly apply to educational institutions of the
national education system has specified the contents and ways that the
college have to perform financial publicity;and the Decree No.
91/2008/NĐ-CP dated August 18, 2008 of the Government on publicizing
audit results and that of implementing conclusions, proposals of the State
Audit...; the thesis gives criteria for this criterion in four levels: Good, fair,
The results revealed that the levels of performance of publicity in
financial activities of four colleges were only moderate. These restrictions
were caused by some faculty and staff awareness was not high, not
interested in public finance issues, aversion to explain the request of the
2.4.4. Assessing based on the structure of the spending group
188.8.131.52. Identifying of the criteria and the level of assessment
According to Decree No. 43/2006/NĐ-CP: the following things
were chosen to serve as evaluation criteria in the content of the thesis:
setting up the welfare fund, bonus, extra salary fund; salary has been
reformed for officers and employees by approximately 3-month salary in a
year to maintain equity; the cost for these items has been increasing in the
period of 5 continuous years.
Evaluation results showed that only Son La College reached the
average level, the left ones stood at weak level. Pay-rise has increased over
the years, but not high; in some case, the amount was even lower than 1month pay. Funds such as welfare and bonus fund have been founded but
their money was humble.
2.4.5. Assessing based on the structure and degrees of the revenue
184.108.40.206. Identifying of the criteria and the level of assessment
To identify the degrees of autonomy in the revenue criterion,
experts in the field of financial management supposed that off-budget
revenues also indicate high success in the financial autonomy of the
college. In the situation of being mountainous colleges, the money in
question accounting for 40% of the total revenue is very good. The weak
level appears when the off-budget revenue is less than 10% of the total
The revenue autonomy of the four colleges was only averagely
assessed. However, when assessing each case separately, the results are
quite different. Dien Bien Technical – Economic College experienced an
increase in revenue when performing financial autonomy. Nevertheless, the
proportion of business revenue in the total revenue was not high, just at the
Lai Chau Community College is a non-productive unit; therefore,
its training activities are mainly funded by the State Budget, fundamental
construction and non-productive sources. With the feature that most of their
training industries are teacher training which are free to attend, but its nonproductive revenues steadily increase every year through the strengthening
of joint training activities; however, the increase is not high (less than 10%
of total revenue) and tends to decrease during the period 2009-2011.
Son La College is one of the colleges who has well implemented
and applied the financial autonomy and educational socialisation,
diversified revenue sources to increase the non-productive revenues.
However, annual non-productive revenues accounts for only 10 -18%,
average 12.7%. Rating: Average.
Dien Bien College of Education’s financial sources tend to increase
over the years. However, its fund is mainly provided by the State Budget.
Although non-productive revenue accounts for a small proportion of the
total budget of the school; however, it has experienced a relatively large
increase. Rating: Average.
2.4.6 Synthetic assessment of the degree of financial autonomy and
social responsibility of the North-western Colleges
Table 2.39: Synthetic assessment results
2.5. ACHIEVEMENTS AND THE LIMITATIONS OF IMPLEMENTING
AUTONOMY AND SOCIAL RESPONSIBILITY OF FINANCIAL
MANAGEMENT OF COLLEGES IN THE NORTHWEST
- Source of business revenue has increased over the years.
- The schools have adopted financial management under the
financial transparency, through internal spending regulations.
- The schools have reformed salaries, developed backup funds,
welfare and bonus fund.
- The propaganda and ideological education have spurred
awareness of officials and employees – creating their innovative initiative
to actively participate in the activities of the school...
2.5.2. Limitations and Causes
The dissertation has summarized some limitations, clearly defined
the criteria under which, causes of the limitations are. This is the basis to
build specific solutions to overcome the current situation.
CONCLUSION OF CHAPTER 2
In chapter 2, the dissertation has summarized the natural, social economic conditions of the Northwestern region. These conditions have
certain effects on implementing financial autonomy and social
responsibility in financial management of research objects.
In order to objectively assess the degree of applying financial
autonomy and social responsibility of the research objects, the dissertation
has developed 5 criteria: (1) Including criterion for the degree to which
officials execute autonomy; (2) Criterion for level of performance on social
responsibility in the financial sector; (3) Criterion for level of performance
in public financial activities; (4) Criterion for the cost structure; (5)
Criterion for the incomes. Some of the above criteria are clearly qualitative.
To limit the qualitative assessment, the dissertation has applied many
different methods such as survey methods, expert methods closely
associated with the state regulations. For the quantitative criteria, the
dissertation based on the regulations of the State as Decree No. 43 and etc.
to continue to build indicators for each criterion.
In order to examine the objects’ performance of autonomy and
social responsibility in the current financial management, the dissertation
has developed indicators of each criterion according to four levels of good,
fair, average and poor, which is equal to the number of levels from high to
low as 4, 3, 2, 1.
The dissertation has also assessed individual objects according to
the above criteria. The result: Dien Bien technical – Economic and Son La
College have reached fair for the first criterion. Lai Chau Community
College and Dien Bien College of Education averaged.
Results of the second criterion showed that all four schools reached
fair in the performance of social responsibility in financial management.
With the 3rd criterion about execution of public financial
management), all four schools were at moderate level. The dissertation has
identified the causes of these facts. They are considered as the basis for the
solutions to be expressed in detailed in chapter 3.
In the criteria for increased wages and welfare expenditure for
staffs and employees, except the Son La College, three schools remain
Differentiation of evaluation results is most apparent in the results
of the criteria assessment 5: Dien Bien Technical - Economics College
reaches fair, Lai Chau Community College is at poor level and two other
schools are average. The dissertation has analyzed the specific causes of
this result in the assessment process.
After conducting its own evaluation, the dissertation has evaluated
the implementation of financial autonomy and social responsibility of four
research objects. Accordingly, Dien Bien Technical – Economic College
and Son La College have achieved fair. The two remaining Colleges were
only moderate. Evaluation results have shown the gains and limitations of
universities in the implementation of autonomy and social responsibility in
financial management. Assessment results are the basis for determining the
direction and propose solutions to overcome the above limitations, the
theoretical and practical basis for the Northwestern colleges to make better
operational financial management in the future.
SOLUTIONS OF PROMOTING THE AUTONOMY AND
SOCIAL RESPONSIBILITY IN FINANCIAL MANAGEMENT OF
COLLEGES IN THE NORTH-WEST
3.1. ORIENTATION AND DEVELOPMENT FOR COLLEGES AND
PRINCIPLES OF SOLUTION SELECTION
3.1.1. Orientation of State
- To eliminate the financial allocation mechanism in a "please", and
to issue financial autonomy to business units.
- To continue to thoroughly and fully grasp the perception
"Developing education is a top national policy, investment in education and
training is the investment for development".
- To encourage business units to expand and diversify the
professional activities in accordance with the capacity of each unit,
proactively exploit revenues from services in the direction of healthy
competition between the inside and outside units.
- To make sure that measures are synchronized, associated with
policies, and other related management mechanisms such as wage policies,
administrative reforms, trainings for improvement the quality of human
3.1.2. Orientation and development of public colleges in the Northwest
- The colleges build a long-term training strategy towards
standardizing the quality of training at all levels, training systems for
training highly qualified personnel to serve socio-economic development of
the Northwest provinces and society.
- They diversify the types of training to meet learning needs of all
- Training has to ensure the best quality in terms of modest cost.
- For financial management, the financial management goals of
colleges go with the general goals of the public and improve the
effectiveness of budget management in the public colleges.
- The colleges strive to become the training base of class, prestige,
manpower training and research quality, competitiveness in the country and
3.1.3. Principle of solution selection
220.127.116.11. Principle of inheritance
Principle of inheritance is manifested in many aspects: inheriting
the material base, the financial management apparatus and experience in the
financial management of the predecessors; inheriting the prestige of the
university and the financial situation in the past of the unit.
18.104.22.168. Principle of Reality
Any financial management decisions are implemented, first of all
should be based on principles consistent with practical operating conditions
outside of the school. Appraising the extent of the impact factors allows the
college to quickly grasp opportunities and favorable conditions to develop,
expand and improve the quality of training.
22.214.171.124. Principle of effectiveness
In addition to the two principles of inheritance and reality, the
selection of measures to manage the financial must be based on the
principle of effectiveness. When undertaking measures of financial
management, it is hard for the colleges to achieve the goals set out if they
do not base on the principle of effectiveness.
126.96.36.199. Principle of ensuring aims
Implementation of autonomy and accountability in financial
management of colleges is not only to expand revenue and improve
efficiency financing but also be more important in the exploitation and
utilization of financial resources for development training and scientific
research development of the school.
3.2. SOLUTIONS OF IMPLEMENTING THE AUTONOMY AND
SOCIAL RESPONSIBILITY IN FINANCIAL MANAGEMENT OF
PUBLIC COLLEGES IN THE NORTHWEST REGION
3.2.1. Awareness innovation of the autonomy and social responsibility
in financial management to the school’s operation
The goal of innovation is to raise staff and officers’ awareness of
content of the autonomy and social responsibility that colleges have to take.
- The colleges have to become aware that the content of autonomy
and social responsibility are to actively seek, use financial resources
appropriately, reorganize the staff, restructure scientific activities and
launch regualar reports on revenues-expenditures of schools openly,
practice thrift and combat waste, raise living standards for staff and officers,
and to urge raising the overall quality of the school.
- The leading board makes a plan, organize trainings for staff and
officers in the school.
- Organizing workshops on autonomy and social responsibility.
3.2.2. Improving plans of revenue and using expenditure to facilitate
proactive management and implementation of the development goals of
Strengthening and improving plans of revenue to ensure that
financial resources are exploited to the maximum, strict management,
effective use in accordance with the regulations and policies of state
regulation helps raise the quality of training.
In order to implement planning successfully, management and use
of the financial resources the school need to be implemented step by step as
follows: planning; protecting the plan; entrusting plans; distributing plans,
organizing and implementing plans and the final step is to test and evaluate.
3.2.3. Diversification of revenue sources on the basis of promoting
activeness and creativities of each department, each faculty, each staff
and each lecturer
In order for diversification of revenue sources, it is essential to
expand and diversify the types of training; promoting motivation and giving
individual and collective rewards for looking for financial resources;
organizing services well based on achievements of research, applying
innovations from experience, transferring technologies in the school's
activities; enhancing expansion of international cooperation... methods of
implementation are that the leading board has to coordinate with offices,
specialized science professional development training in order to make
training plans for each specific stage; organizing forms of service, enlist the
help of the authorities and social organizations at home and abroad ...
3.2.4. Amending, completing internal spending regulations in
accordance with the reality, ensuring efficient use of expenditure and
With the aims of centralizing management, unifying revenues,
increasing revenues, ensuring spending consistently, sparingly and
appropriately, simultaneously contributing to gradual improvement, raising
incomes for workers, teachers, strengthening infrastructure for the school,
making adjustments to improve internal spending regulations to suit the
practical development of each case is necessary. To implement this
solution, the thesis has defined the content and specific methods of
implementation in parallel with their necessary and sufficient conditions.
3.2.5. Improving financial management capacity of school leaders,
managers of offices, departments and innovating the apparatus, and
improving the capacity of the financial staffs
Improving capacity in financial management for the management
staff is to use financial resources efficiently. Therefore, to make this
solution successfully, it is necessary to focus on training staff, organizing,
strengthening the management apparatus; clearly defining roles and tasks of
the leaders; mounting responsibilities with the interests of each individual
members, each group, setting up the school’s board, ...
3.2.6. Analyzing and assessing financial performance, adjusting
problems in school management in time
Financial analysis is to clarify accountability, the effectiveness of
giving financial autonomy to schools, help detect errors in time and find out
causes to search remedies. To achieve this goal, the Planning- Financial
Department has to build financially analytical reports regularly as
prescribed. Stakeholders have to be announced about revenues and
expenditures openly and transparently. The inspection and evaluation of the
functional units will ensure objectivity in the process of implementing the
3.2.7. Applying the system of financial oversight, internal audits to
ensure effectiveness and transparency
Inspection and audit of financial activities are a measure to ensure
that the regulations on accounting and financial discipline were strictly
obeyed, statistics and documents are recorded accurately and truthfully and
systematically. To implement the solution, each level must set out goals,
make plans, inspect and supervise financial activities on the basis of their
function and tasks. Besides, inspection and supervision have to go with
analyzing and assessing in order to find out the strengths and weaknesses,
obstacles and difficulties, and jobs done well in order to allocate funds more
effectively and efficiently in the following years. Especially, this system
has to be completed before drawing the balance-sheet of the year.
3.3. RELATIONSHIP BETWEEN THE SOLUTIONS
Management solutions with the aims of increasing the autonomy
and social responsibility in the financial sector have dialectical relationship
with each other. To mobilize and use management of financial resources, to
meet the training requirements, contribute to the stability and sustainability
of the institution the 7 solutions should be conducted synchronously.
3.4. EXPERIMENTING AND TESTING SOME SOLUTIONS
3.4.1. Experiment urgency and feasibility of solutions
To determine the level of need and feasibility of the seven proposed
solution, the dissertation conducted an experiment. Results showed that
solution 1, 2, 3 are evaluated more highly than solution 4, 5, 6, 7 which are
also judged to be necessary and feasible.
3.4.2. Testing solutions to diversify sources of revenue
With the stated purposes, the author has performed empirical
solution: Diversify revenue sources based on the principle of promoting the
creativity of each office, each department and each faculty member at the
College of Economics - Engineering Dien Bien in 2012 and continue to
build plans of implementing other solutions in the following period.
Test results showed a positive change in the diversification of
income sources. Other objectives for the remaining criteria are better.
Although the results have not shown remarkable progress because testing
was conducted in the short period, but it also confirmed the feasibility of
the application of measures to improve the quality of management of
financial autonomy and social responsibility of public colleges of the
CONCLUSION OF CHAPTER 3
Based on the evaluation results of chapter 2, the thesis clearly
identified the limitations causing a restriction. In order to provide solutions
to overcome the above limitations, during the process of solution selection
the thesis considered some directions including: the development of the
State; development strategy of each school researched. These are important
orientations, which act as a guideline for the development of orientations to
improve the quality of autonomy and social responsibility of colleges in the
Northwest area in terms of financial management.
To ensure the feasibility of the solution, the thesis chose three
principles of option including: principles of inheritance, principles of
reality, principle of effectiveness and principle of ensuring aims.
On the basis of state -oriented and practical context and constraints
identified, the thesis proposed the seven solutions to enhance autonomy and
social responsibility in the financial sector of the public colleges in the
Northwest as follows: (1) Innovation of awareness of autonomy and social
responsibility in financial management over the operation of the school; (2)
Improving plans of revenue and using expenditure to facilitate proactive
management and implementation of the development goals of the school;
(3) Diversification of revenue sources on the basis of promoting activeness
and creativities of each department, each faculty, each staff and each
lecturer; (4) Amending, completing internal spending regulations in
accordance with the reality, ensuring efficient use of expenditure and labor
efficiency; (5) Improving financial management capacity of school leaders,
managers of offices, departments and innovating the apparatus, improving
the capacity of the financial staff; (6) Analyzing and assessing financial
performance, adjusting problems in school management in time; (7)
Applying the system of financial oversight, internal audits to ensure
effectiveness and transparency. Each solution puts a focus on solving a
major constraint and implementation of overcoming common limitations in
view of the synchronous application of the different solutions.
In each solution, the thesis determined the specific objectives,
which content needs to applied solution to, how to implement specific steps,
and also identified the necessary and sufficient conditions to ensure that the
application of the solution is feasible.
From a theoretical basis and practical basis , the thesis chose the
solution named diversifying revenue sources to be the trial solution at Dien
Bien Technical-Economic College. To achieve the test results not only for
the purpose of helping the school diversify revenue sources increasingly but
also for the purpose that is that the test solution can have positive influences
on the other contents such as raising additional incomes for workers and
employees, promoting awareness and capacity management for staff and
employees .... The dissertation used the six other solutions synchronously
with the main solution - diversifying revenue sources. The test results
showed that there were positive changes after implementation of this
solution. The results obtained after testing have not shown mutation
changes, but demonstrates positive changes. This does not cause
contradiction or the solution is not feasible it is just because the solution has
been applied in a short time. The proposed solutions enable the colleges to
create, mobilize and use financial resources efficiently. These are just
basically common solutions, so each colleges should base on their own
characteristics when applying.
CONCLUSIONS AND RECOMMENDATIONS
The dissertation explained the following issues:
- Reviewing a theoretical basis for the financial autonomy and
social self-responsibility of university education, including college. The
thesis inherited the relevant contents selectively. Determining the financial
autonomy and social responsibility is indispensable for the operation of
transparency, efficiency and flexibility.
- The implementation of each institution is good or not is affected
by many different factors such as state regulations, locally natural,
economic and social conditions... When constructing the evaluation criteria,
these factors above can not be ignored to ensure more objective results
when being evaluated.
- The dissertation analyzed the results obtained when enjoying
autonomy. It also evaluated and identified the restrictions and the causes of
the existing restrictions. Subjective causes of each school are that officials
and employees are not interested in financial autonomy and social
responsibility. This led to the modest investment of time, effort and
materials for improving financial management capability. The other
objective causes are the obligation of the State regulations, poor conditions
of local economies. Thus, the colleges have not attracted investments as
well as resources from educational socialization,....
To ensure the successful implementation of the autonomy and
social responsibility in the financial sector of colleges in the Northwest, the
thesis proposed seven solutions. The assay of feasibility of the seven
solutions showed that it is completely likely to apply them to overcome the
limitations of financial management activities.
For the State:
First, the state should continue to reform financial mechanism,
increase investment, guide promotion of autonomy, facilitate colleges to
create financial resources through autonomy, and to improve the quality of
trainings. Besides, policies of exemption, reduction of fees at public
colleges and universities need to be detailed.
Second, local and central agencies managing budgets for education
and training and ministries, branches need to look into and change budget
management in the traditional input method. Although this mechanism
ensures the tight control of spending items, but it limits the autonomy,
creativity and self-responsibility of the school.
Third, when enacting regulations, the Ministry of Education and
Training should promulgate jointly circular with other ministries in order
for services and branches in provinces, especially the Service of Finance
can apply properly without causing impacts on the others.
Fourth, the State should study and prepare documents specifying
evaluation criteria, the level of completion and quality of business operation
of the unit when being given autonomy, self-responsibility.
Fifth, the state should eliminate administrative procedures that are
the cumbersome and overlapping, remove obstacles of financial policies,
formulate policies of encouraging the exploitation of revenues from joint
venture operations, joint training to increase the financial autonomy and
improving the quality of training.
For the Ministry of Education and Training:
It must have specific guidelines and prerequisite measures for the
establishment of school councils in education institutions.
For Provincial People's Committee:
First, it is necessary to direct and guide dependent agencies to
follow regulations of autonomy prescribed by the Government, the Ministry
of Education and Training, Ministry of Finance, Ministry of the Interior.
Second, it is necessary to issue basic criteria as a basis for
evaluating the performance of the duties of the agencies enjoying
Third, an inspection and provision system for the implementation
of the autonomy of the business units needs to be established. In order to
realize that the implementation of autonomy is to create conditions for
heads and officials of all units to be active in the use of payroll and funds
allocated, mount the use of expenditures with high quality and