University Affairs Fund of National Universities
1. Introduction to the University Affairs Fund of National Universities
1. Overview of the Accounting System of the University Affairs Fund
The budget system of national universities in Taiwan was originally the same as that of general government agencies, operating under a unit-based budget. All revenues were required to be remitted to the national treasury, and expenditures were allocated through budgets funded by the treasury. Any unspent budget, unless approved for retention, had to be returned to the treasury. Under this system, there was little incentive for universities to generate income or reduce costs. Furthermore, due to the limited resources for higher education and the increasing demands on educational objectives, the funds available to universities were constrained. To address this issue, the Ministry of Education actively developed financial reform measures, transitioning the budget and financial system of national universities from the government budget system to a fund-based (affiliated unit budget) system. The University Affairs Fund for National Universities emerged in this context.
The "Regulations for the Establishment of University Affairs Funds in National Universities" were enacted by the Legislative Yuan on January 14, 1999, and promulgated by the President on February 3 of the same year. According to Article 2 of these regulations, national universities are required to establish a University Affairs Fund, and according to Article 11, national junior colleges may apply the provisions of this regulation accordingly. Following approval by the Executive Yuan, starting in the second half of 1999 and the 2000 academic year, all national universities and colleges implemented the University Affairs Fund system.
Article 9 of the Regulations for the Establishment of University Affairs Funds in National Universities stipulates that accounting affairs of the University Affairs Fund shall follow accounting standards uniformly set by the Ministry of Education. The "Uniform Provisions of the Accounting System for University Affairs Funds in National Universities" (hereinafter referred to as this Accounting System) were established in accordance with these regulations and Article 18 of the Accounting Act.
The purpose of this Accounting System is to standardize the accounting treatment of each fund and the procedures for internal auditing. Through consistent accounting practices, it facilitates external supervision and allows each fund to strengthen and fully utilize its accounting management functions.
2. Characteristics of the University Affairs Fund Accounting System
(1) Aligned with current accounting concepts: The preparation, disclosure, and treatment of financial statements generally follow the provisions of Taiwan’s Generally Accepted Accounting Principles (GAAP). Where differences exist, they are clearly specified in this system.
(2) Promotes consistency between public and private universities: Accounting information from public and private universities can be compared and analyzed, facilitating the formulation and implementation of education policies.
(3) Uniform classification of accounting subjects: The content and format of financial statements for each fund are standardized, allowing them to accurately reflect financial status and operational results. This enables authorities and other users of the statements to conduct comparisons, analysis, and make informed decisions.
(4) Supports computerized operations: The system design and accounting subject coding are suitable for computer-based operations, facilitating aggregation, comparison, and analysis to achieve informatization goals.
