The Suggestions on Private Kindergarten Accounting
Asian Tax Journal Vol. 22 No. 1 (2021), pp. 151-184
Abstract
This study identifies the legal basis and status of private kindergarten accounting, summarizes the problems of private kindergarten accounting, and proposes suggestions, through which government support to improve the quality of private kindergarten accounting education can be efficiently performed. The government revised the ‘EARLY CHILDHOOD EDUCATION ACT’ in 2020 to reinforce the accountability of private kindergartens, strengthen the internal control system for the operation of private kindergartens, and establish rules for returning support funds to spend the budget in accordance with the purpose of kindergartens. Although the responsibility for accounting management of private kindergartens has been strengthened, the legal basis for accounting rules for private kindergartens is insufficient, there is no accounting for kindergarten support, the basis for the provisions for the return of support funds is insufficient, and there is no information to grasp the educational financial status of private kindergartens. The problem still exists. This study analyzed the current laws and systems related to Korea’s national and public kindergarten accounting and private kindergarten accounting, and suggested the following suggestions to improve the problems of private kindergarten accounting. First, it is necessary to establish a legal basis so that the information system for private kindergarten accounting can be settled well. To this end, private kindergartens are included in the scope of kindergarten accounting in the ‘EARLY CHILDHOOD EDUCATION ACT’, and kindergarten accounting is installed in private kindergartens. Second, it is necessary to introduce a method of converting subsidies to subsidies in order to increase the effectiveness of the rules for returning subsidies to private kindergartens. Third, the follow－up management system for private kindergarten accounting was reorganized to analyze accounting information through private kindergarten accounting in connection with the achievement of the educational purpose of private kindergartens, and the efficiency of financial support was evaluated post－hoc by comparing private kindergartens with national and public kindergartens. It is necessary to publish a comprehensive report on accounting analysis of private kindergartens so that they can be evaluated. Fourth, it is necessary to consider measures to partially supplement the capital investment returns of private kindergartens by borrowing the build－transfer－lease (BTL) method. While previous studies mainly took micro－approaches such as accounting subjects and specific accounting treatments related to private kindergarten accounting, this study takes a macro－approach and suggested improvement so that substantial improvement in private kindergarten accounting could be achieved. This study summarizes the problems that exist despite the provisions for reinforcing the accounting of private kindergartens, and on the basis of this, suggests an improvement that can strengthen the management of accounting responsibilities that exist in private kindergartens. It is expected to provide policy implications to the person in charge.
Keywords
- Private Kindergarten
- Private Kindergarten Accounting
- Accounting for National and Public Kindergartens