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THE
MINISTRY OF FINANCE
THE MINISTRY OF EDUCATION AND TRAINING
THE MINISTRY OF HOME AFFAIR
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
21/2003/TTLT/BTC-BGDDT-BNV
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Hanoi,
March 24, 2003
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JOINT CIRCULAR
GUIDING THE FINANCIAL MANAGEMENT REGIME APPLICABLE TO PUBLIC
EDUCATION AND TRAINING ESTABLISHMENTS OPERATING WITH REVENUES
To guide the implementation of the Government’s Decree
No. 10/2002/ND-CP of January 16, 2002 on the financial regime applicable to
non-business units with revenues; the Ministry of Finance already promulgated
Circular No. 25/2002/TT-BTC of March 21, 2002.
To suit the specific activities of the education
and training service, the Ministry of Finance, the Ministry of Education and
Training and the Ministry of the Interior hereby further guide some contents of
the financial management regime applicable to public education and training
establishments operating with revenues as follows:
I. SUBJECTS
The subjects of application of this Circular are
public education and training establishments belonging to the national
education system, operating with revenues and having their regular activities
partially financed with the State budget or fully financed by themselves
(hereinafter referred collectively as education and training establishments
with revenues), including:
- Pre-school education establishments (creches,
kindergartens and preschools).
- Primary, junior and senior high schools.
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- Intermediate vocational schools, job-training
schools.
- Universities, colleges and academies.
The above-said non-business units with revenues
shall implement the Government’s Decree No. 10/2002/ND-CP of January 16, 2002
when they meet all the following conditions:
- Having the establishment decisions made in
writing by competent authorities.
- Having the legal person status and own seals.
- Having treasury or bank accounts.
- Having a financial and accounting apparatus.
- Having legal sources of revenue.
Competent agencies shall have to create
favorable conditions for the education and training establishments to implement
the Government’s Decree No. 10/2002/ND-CP of January 16, 2002.
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For education and training establishments with
revenues, which have many independent-accounting attached units, such as
national universities, Thai Nguyen University, Hue University, Da Nang
University…, competent agencies shall allocate stable budget estimates to Grade
-I or Grade-II estimate-drafting units in order to assign financial autonomy to
the attached estimate-drafting units.
Education and training establishments without
non-business revenues shall not be subject to the application of this Circular.
The funding for their regular activities shall be allocated from the State
budget and financially managed under the current mechanisms.
II. NON-BUSINESS REVENUE
SOURCES OF PUBLIC EDUCATION AND TRAINING ESTABLISHMENTS
The public education and training establishments
shall have the following non-business revenue sources:
1. Assorted charges and fees currently
prescribed, including;
1.1 School fees collected from learners studying
in the formal and non-formal education and training forms (diploma-granting
system) at the rates prescribed by the State.
1.2. Charges collected for training services
(certificate-granting system) at the rates decided by the unit heads and
compatible with the service beneficiaries’ capability.
1.3. Enrollment fees in accordance with the
Ordinance on Charges and Fees and guiding documents of the State.
2. Revenues associated with the units’
activities, including:
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2.2. Revenues from production activities, sale
of products made from practicing at school workshops, experimentation
products…, from the provision of services closely associated with the units’
activities, exploitation of material foundations.
2.3. Revenues from scientific and technological
contracts with organizations and individuals at home and abroad.
2.4. Revenues earned from the participation of
the establishments’ officials, teachers and lecturers in the provision of
services for external organizations and/or individuals or under the package
payment mechanism.
2.5. Other lawful revenues permitted to be
retained for use according to the State’s regulations.
The levels of the above-said revenues shall be
agreed upon under contracts between the units’ heads and the requesters on the
principle that the education and training establishments can offset expenses,
learners are able to pay and there is some amount for accumulation
3. The general education school-building
contributions shall comply with the regulations of competent authorities.
4. Revenues from the attached units to support
common activities: The attached estimate-drafting units may deduct a portion of
their non-business revenues to support common activities, with the deduction
rates decided by the unit heads.
5. Other revenues as prescribed by law, such as
interests on bank deposits being revenues from production and service provision
activities.
Apart from the above-said revenues, the
education and training establishments with revenues shall be permitted to
mobilize lawful capital from organizations and individuals at home and abroad
to serve their production and service provision activities in accordance with
the current law provisions.
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The education and training establishments with
revenues may use their State budget allocations and non-business revenues for
spending on regular activities as follows:
1. For officials, teachers and contractual
laborers: Payment of wages and remunerations; bonuses; wage-based allowances;
collective welfare; social insurance and medical insurance premiums and trade
union fees contributed according to the current regulations.
2. For pupils and students:
- Payment of scholarships, social relief,
bonuses.
- Expenses for cultural, sport and physical
training activities of pupils and students.
3. Administrative management: Expenses for
electricity, water, petrol and oil, environmental sanitation, office supplies,
public services, working-trip allowance, conferences, communication, public
relations, telephone, fax…
4. Teaching and learning activities:
a/ Expenses for purchase of books, newspapers,
magazines, textbooks, reference books, equipment and supplies for experiments
and practicing, expenses for teachers and pupils on practicing field trips…
according to the programs of the education and training establishments with
revenues (including security and defense education).
b/ Expenses for hiring Vietnamese and foreign
experts and lecturers (expenses for compilation of teaching materials and
lecturing), expenses for extra teaching hours of teachers and lecturers of the
establishments.
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d/ Expenses for organizing entrance
examinations, graduation examinations and tests of excellent pupils and
students at all levels.
5. Expenses for grassroots-level scientific and
technological researches conducted by officials, teachers and students.
6. Expenses for performing labor, production,
scientific and technological contracts, training services, joint training
projects and practicing, including wages and remuneration, costs of materials,
raw materials, supplies, fixed asset depreciation, taxes paid according to the
law provisions.
7. Expenses for procurement and regular repair:
Expenses for procurement of spare parts, regular repair of fixed assets in
service of professional activities and maintenance of infrastructural works.
8. Expenses for international cooperation:
outbound and inbound delegations.
9. Regular expenses for the charge and fee
collection according to the current regulations.
10. Expenses for training State officials and
employees in the units (excluding re-training expenses according to the State’s
norms).
11. Other expenses: Repayment of borrowings,
both principal and interest, to organizations and individuals at home and
abroad (if any); use of the non-business revenues for social charities,
supports for poor pupils with outstanding learning results, order and security
expenses…
Irregular expenditures shall comply with the
Government’s Decree No. 10/2002/ND-CP of January 16, 2002 and the Finance
Ministry’s Circular No. 25/2002/TT-BTC of March 21, 2002.
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1. Regarding the use of State-budget allocations
and non-business revenues:
1.1. For public education and training
establishments with revenues, which self-finance all of their regular
activities:
Their attached units shall be assigned by
competent bodies budget estimates to be kept stable for three years as follows:
a/ Assigning the estimates of collected charges
and fees belonging to the State budget, including:
- Total collected charge and fee amount.
- Charge and fee portion permitted to be
retained by the units for use according to the competent State bodies’
regulations, determined for each type of charge or fee.
- Charge and fee portion to be remitted into the
State budget.
For charges and fees to be retained and remitted
into the State budget in the prescribed percentages (%), annually, the bodies
competent to assign estimates shall adjust the estimates to suit the units’
activities.
The managing agencies shall not assign the
estimates of production and service provision revenues to the education and
training establishments with revenues; but the units shall make revenue plans
for implementation in the whole year. Particularly for non-business units
having only revenues from production and services but not charges and fees, the
competent bodies shall assign them the estimates of production and service
provision revenues, serving as a basis for revenue and expenditure
administration.
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- Assigning the aggregate estimates of
expenditures on regular activities, taken from the source of collected charge
and fee amounts permitted to be retained by the units for use according to the
regulations of competent State bodies.
- For irregular expenditures from the State budget:
Funding for the State-level, ministerial- and branch-level scientific
researches; for national target programs; funding for orders placed under the
State regime; funding for payroll streamlining; reciprocal funding for
foreign-funded projects; aid capital, borrowed capital, capital construction
investment capital; funding for procurement and overhaul of fixed assets and
other irregular expenditures, the managing ministries, for centrally run
non-business units with revenues), and the local managing agencies (for locally
run non-business units with revenues) shall assign the budget estimates to the
non-business units according to the current regulations.
c/ Where the units collect charges and fees in
excess of the stable assigned estimates, they may use all the excessive amounts
(of the retained portions) to supplement the units’ wage funds and operation
budgets according to regulations.
Where the units collect charges and fees less
than the assigned estimates of collected charges and fees (the retained
portions), they must reduce expenditures accordingly.
For non-business units assigned by competent
bodies the estimates of production and service provision revenues, if they
collect excessive revenues, they may use all the excessive amounts to increase
incomes and consolidate material foundations, if they collect revenues less
than the assigned revenue estimates, they must reduce expenditures accordingly.
1.2. For education and training establishments
with revenues, which self-finance some of regular activities, they shall be
assigned by competent bodies revenue estimates and expenditure estimates, which
are kept stable for three years, as follows:
1.2.1. Assigning the estimates of collected
charges and fees belonging to the State budget, including:
- The total collected charge and fee amount.
- The charge and fee portion permitted to be
retained by the units for use according to the competent State bodies’
regulations.
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For charges and fees to be retained and remitted
into the State budget in percentages (%), annually, the bodies competent to
assign revenues estimates shall adjust the revenue estimates to suit the units’
activities.
The managing agencies shall not assign the
estimates of production and service provision revenues to the education and
training establishments with revenues; but the units shall make revenue plans
for implementation in the whole year. Particularly for non-business units
having only revenues from production and service provision but not charges and
fees, the competent bodies shall assign them the estimates of production and
service provision revenues, serving as a basis for revenue and expenditure
administration.
1.2.2. Assignment of expenditure estimates:
a/ Expenditures on regular activities:
- Assigning the aggregate expenditures on
regular activities, from the source of collected charge and fee portions
permitted to be retained by the units for use according to the regulations of
competent State bodies.
- Assigning the aggregate expenditures on
regular activities, from the State-budget allocations for the first year of the
stable period, which shall be increased annually by a percentage decided by
competent authorities.
b/ For irregular expenditures from the State budget:
The funding for the State-level, ministerial- and branch-level scientific
researches; for national target programs; funding for orders placed under the
State regime; funding for payroll streamlining; reciprocal funding for
foreign-funded projects; aid capital borrowed capital, capital construction
investment capital; funding for procurement and overhaul of fixed assets and
other irregular expenditures, the managing ministries, for centrally run
non-business units with revenues), and the local managing agencies (for locally
run non-business units with revenues) shall assign the budget estimates to the
non-business units according to the current regulations.
1.2.3. Where the units can save some regular
expenditures or increase the charge and fee portions to be retained as compared
with the assigned estimates, they shall be allowed to use all of the saved
funding amount and the increased revenues to supplement their wage funds and
operation budgets. If the units collect revenues less than the assigned estimates,
they must reduce expenditures accordingly.
For non-business units assigned by competent
bodies the estimates of production and service provision revenues, if they
collect excessive revenues, they may use all the excessive amounts to increase
incomes and consolidate material foundations; if they collect revenues less
than the assigned estimates, they must reduce expenditures accordingly.
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2. The payroll serving as a basis for estimating
the wage funds is the payroll assigned by competent bodies till December 31 of
the preceding year.
In the course of operation, the heads of the
education and training establishments with revenues shall be allowed to decide
on the labor employment plans as follows:
2.1 Re-arranging the assigned number of State
officials and employees (including those having signed labor contracts within
the payroll limits) so as to raise the operation efficiency and quality of the
units. Those who are subject to payroll streamlining shall enjoy policies and
regimes according to the current regulations.
2.2. For the education and training
establishments with revenues, which self-finance all of their regular
activities, basing themselves on the working needs and financial capability of
their units, the unit heads may sign labor contracts in accordance with the law
provisions on labor; persons eligible for signing contracts with an indefinite
term must meet all criteria, have professional titles as prescribed by the
branch- or domain-managing agencies and be graded in the administrative and
non-business wage scale provided for in the Government’s Decree No. 25/CP of
May 23, 1993 and guiding documents, and enjoy interests and have obligations as
prescribed by law.
2.3. For the education and training
establishments with revenues, which self-finance some of their regular
activities, basing themselves on the working needs and financial capability of
their units, the unit heads may sign labor contracts in accordance with the law
provisions on labor as well as with the payroll limits promulgated by competent
bodies; persons eligible for signing contracts with an indefinite term must
meet all criteria, have professional titles as prescribed by the branch- or
domain-managing agencies and be graded in the administrative and non-business
wage scale provided for in the Government’s Decree No. 25/CP of May 23, 1993
and guiding documents, and enjoy interests and have obligations as prescribed
by law.
2.4. The unit heads may terminate labor
contracts signed between the units and laborers. The order and procedures for
terminating labor contracts shall comply with the law provisions on labor.
2.5. To implement the democracy and publicity
regimes according to law provisions.
3. The wage and income funds: The wage and income
funds of the education and training establishments with revenues can use two
sources:
3.1. The State budget allocations for payment of
wages, remuneration, wage-based allowances of State officials and employees on
the payroll and under labor contracts (for the education and training
establishments with revenues, which self-finance some of their regular
activities) in accordance with in the Government’s Decree No. 25/ND-CP of May
23, 1993 and current guiding documents on wages and wage-based allowances.
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Basing themselves on the regulations on payment
of wages and renumerations, the unit heads shall decide on the levels of wages
and renumerations to be paid to State officials and employees and contractual
laborers according to their monthly working results.
3.3. If the education and training establishments
with revenues do not use up wage money at year end, they shall put the
remainder into the reserve funds for income stabilization and spending in
subsequent years.
4. Elaboration of the internal spending regimes:
- Within the limit of the units’ financial
sources (including the State budget allocations and non-business revenues), the
heads of the education and training establishments with revenues shall take
initiative in elaborating the criteria, norms and regimes for internal spending
on managerial and professional activities, which may be higher or lower than
the State-prescribed spending levels and suitable to the units’
characteristics.
- In the internal spending regimes, the
education and training establishments with revenues shall give priority to
spending on professional activities with a view to ensuring the quantity and
quality of the units’ teaching and learning activities, scientific researches
and services.
- The above-said spending criteria, regimes and
norms shall be publicly discussed in the units. The internal spending regimes
shall serve as a basis for the unit heads to administer the use and settlement
of the units’ fundings from the State budget and non-business revenues and as a
legal basis for the State treasuries to control expenditures.
5. Allocations from the State budget:
Basing themselves on the assigned State budget
estimates, the financial agencies shall grant State budget allocations for
regular expenditures (for units self-financing part of their expenditures)
through the State treasuries in Section 134 "Other expenditures"
according to each corresponding class and clause of the State Budget Index.
If allocations have been granted according to
the sections of the State Budget Index, the heads of the units assigned the
financial autonomy shall be entitled to adjust expenditure items in the total
funding allocated for regular expenditures.
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6. If the education and training establishments
with revenues engage in production activities and/or services involving the use
of fixed assets, they shall depreciate such fixed asset at levels prescribed in
the Finance Minister’s Decision No. 166/1999/QD-BTC of December 30, 1999
promulgating the regime of management, use and depreciation of fixed assets and
the current guiding documents of the State.
In special cases, the unit heads may decide on
the application of a higher depreciation percentage in order to recover capital
quickly, which must be, however, compatible with the life and technical
renovation of the assets as well as with the service beneficiaries’ payment
capability.
All the fixed-asset depreciation amounts shall
be accounted into the prices of service products inscribed in the contracts
between the education and training establishments with revenues and the
production or service requesters.
7. For the education and training establishments
with revenues, which wish to liquidate their assets: To set up a Property
Liquidation Council under the Finance Minister’s Decision No. 55/2000/QD-BTC of
April 19, 2000 promulgating the Regulation on management of State properties at
administrative non-business agencies. The money amounts collected from the
liquidation of properties formed from the State budget source or originated
from the State budget, minus liquidation expenses (for weighing, measuring,
counting, transporting, determining technical parameters, overtime pay (if
any)…) shall be put into the units’ development funds. Where the liquidated
properties are formed from borrowed capital, the units shall use the money
collected from the liquidation, minus liquidation expenses, to repay the
borrowed capital, and put any remaining amount into the funds for development
of non-business activities.
8. Non-business revenues belonging to the State
budget (school fee, other fees) shall comply with the provisions of the
Ordinance on Charges and Fees and the Government’s Decree No. 57/2002/ND-CP of
June 3, 2002 detailing the implementation of the Ordinance on Charges and Fees.
Pending the issuance of guiding documents, the education and training
establishments shall collect school fees according to the Prime Minister’s
Decision No. 70/1998/QD-TTg of March 31, 1998 and current guiding documents.
The education and training establishments may open accounts exclusively for
revenues at the State treasuries where they have transactions for managing
expenditures and revenues.
Quarterly and annually, the education and
training establishments shall make reports on revenues and expenditures, have
them certified by the State treasuries, and send them to their managing
agencies for summing up and sending to the financial agencies of the same
level.
9. At year-end, if the education and training
establishments with revenues have not yet spent up their State budget
allocations for regular expenditures and non-business revenues, they can spend
and settle them in the next fiscal year. Basing themselves on the comparisons
made with the units at the end of December 31, the State treasuries shall carry
out procedures to transfer the unspent amounts to the education and training
establishments with revenues for use in the subsequent year under the
provisions of the Finance Ministry’s Circular No. 81/2002/TT-BTC of September
16, 2002 and concurrently notify in writing the financial agencies of the same
level thereof for management.
10. The education and training establishments
with revenues shall apply cost-accounting under the Finance Ministry’s Circular
No. 121/2002/TT-BTC of December 31, 2002 guiding the accounting at non-business
units with revenues.
V. IMPLEMENTATION PROVISIONS
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Other financial management-related contents shall
comply with the Finance Ministry’s Circular No. 25/2002/TT-BTC of March 21,
2002 guiding the implementation of the Government’s Decree No. 10/2002/ND-CP of
January 16, 2002 on the financial mechanism applicable to non-business units
with revenues.
If facing any problems in the course of
implementation, the ministries, ministerial-level agencies, localities and
education and training establishments with revenues should report them to the
three ministries for appropriate amendments and supplements.
FOR THE MINISTER OF FINANCE
VICE MINISTER
Nguyen Cong Nghiep
FOR THE
MINISTER OF EDUCATION AND TRAINING
VICE MINISTER
Le Vu Hung
FOR THE MINISTER OF THE INTERIOR
VICE MINISTER
Nguyen Trong Dieu