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THE
MINISTRY OF FINANCE
THE MINISTRY OF CULTURE AND INFORMATION
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom Happiness
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No.32/2000/TTLT/BTC-BVHTT
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Hanoi,
April 26, 2000
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JOINT CIRCULAR
GUIDING
THE FINANCIAL MANAGEMENT REGIME APPLICABLE TO NON-PUBLIC ESTABLISHMENTS
OPERATING IN THE FIELD OF CULTURE
Pursuant to the Governments
Resolution No.90/CP of August 21, 1997 on the direction and policy of socialization
of educational, healthcare and cultural activities;
Pursuant to the Governments Decree No.73/1999/ND-CP of August 19, 1999 on
policies of encouraging the socialization of activities in the fields of
education, healthcare, culture and sport;
In order to unify the work of financial management over non-public
establishments operating in the cultural field; the Ministry of Finance and the
Ministry of Culture and Information hereby guide the financial management
regime as follows:
Part I
GENERAL PROVISIONS
1. Non-public establishments
operating in the cultural field are units established and operating along the
socialization policy, which is aimed at mobilizing the entire societys
participation in and contribution to the development of cultural cause.
2. Non-public cultural
establishments shall operate on principles of non-profit, self-financing and
raising quality of products. In the operation course, if an establishments
revenues are larger than its expenses, it shall be allowed to use the difference
to consolidate its material base, set up reward and welfare funds, in order to
raise the material and spiritual life of its employees.
3. Non-public cultural
establishments shall have to organize the financial management, cost-accounting
and accountancy in compatibility with each type prescribed by the State, submit
to the inspection and control by the competent State agencies and may open
accounts at commercial banks or State Treasury for its transactions.
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Part II
SPECIFIC PROVISIONS
I. TYPES OF NON-PUBLIC
CULTURAL ESTABLISHMENTS
Non-public cultural
establishments shall be organized in the following forms:
- Establishments conducting art
activities;
- Establishments conducting
conservation and museum activities;
- Establishments conducting
library activities;
- Establishments conducting
grassroots information activities;
- Establishments conducting
cinematographic activities;
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The above-said non-public
cultural establishments shall operate in the following three types:
1. Semi-public cultural
establishments:
- Semi-public cultural
establishments shall be founded on the basis of the partnership between State
organizations and non-State organizations and/or individuals of all economic
sectors in the country to set up new semi-public establishments or transform
the existing public material bases for joint investment in building of
infrastructure, equipment and facilities, and jointly manage and administer all
activities of such establishments according to the provisions of law.
- Public cultural establishments
with semi-public sections means the partnership between State organizations and
non-State organizations and/or individuals of all economic sectors in the
country in order to build or upgrade the material bases of certain sections of
such public establishments, and to jointly manage and administer activities of
such semi-public sections according to provisions of law.
2. People-founded cultural
establishments: Are those founded by organizations with investment capital
outside the State budget sources (capital of organizations, collectives and/or
individuals), which shall manage and administer all activities of such
establishments according to provisions of law.
3. Private cultural
establishments: Are those founded, managed and administered by individuals
or family households according to provisions of law.
The conditions, dossiers and
procedures for founding non-public cultural establishments shall comply with
the Ministry of Culture and Informations guidance.
II. THE FINANCIAL MANAGEMENT
OF NON-PUBLIC CULTURAL ESTABLISHMENTS
1. Operation funds
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+ Value of material bases
initially equipped and those newly invested during the operation course;
+ Amounts remittable to the
State budget which are left to them.
- Financial assistance, aids,
donations, gifts from organizations and individuals inside and outside the
country;
- Capital contributed by organizations
and individuals for investment in, building of new material bases or
renovation, expansion and upgrading of the existing ones;
- Capital borrowed from banks
and credit institutions (if any).
2. Revenue and expenditure
contents:
a/ Revenues:
- Revenue sources at
establishments:
+ Ticket sale proceeds;
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+ Revenues generated from
cooperation or partnership contracts with other units;
+ Revenues from non-business
cultural services provided at prices agreed upon by the service providing units
and service beneficiaries;
+ Bank deposit interests (if
any);
+ Proceeds from the liquidation
of assets created by capital sources of establishments;
- Other revenues (if any).
b/ Expenditures:
- Wages, remuneration, bonuses
and contributions according to the prescribed regimes such as social insurance
and medical insurance premiums, trade unions operating funds paid on the
laborers behalf;
- Remuneration for collaborators
(if any);
- Royalties and funds for composition
activities;
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- Expenses for professional and
specialized activities of each type of public-service cultural activities;
- Expenses for renting of
material facilities (if any);
- Expenses for procurement and
repair of fixed assets and equipment and facilities in service of
establishments activities;
- Payment of borrowed capital
interests (if any);
- Expenses for performance of
obligations toward the State (if any);
- Payment of interest on
contributed capital;
- Fixed asset depreciation;
- Other expenses.
3. Financial management
regime:
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1. Management and use of capital
and assets:
The process of financial management
of semi-public cultural establishments must be based on the principle of
clearly and publicly distinguishing the capital source invested by the State
budget from mobilized sources outside the State budget.
a/ The States contributed
capital includes capital in cash, supplies and goods, fixed assets (houses,
land, machinery and equipment, means of transport and other assets...) provided
as initial equipment and handed over during the operation course by the State.
Semi-public cultural establishments shall organize the inventory and
re-assessment of the whole capital part contributed by the State, then send
written reports thereon to their managing agencies for consideration, approval
and submission to the finance agencies of the same level, so that the latter
can carry out the procedures for handing over the States assets and capital to
such semi-public cultural establishments. The inventory, re-assessment and
hand-over of assets, supplies and capital shall comply with the current
provisions of law. Annually, the semi-public establishments shall organize the
inventory and re-assessment of their assets value, then report to their
managing agencies and finance agencies of the same level, clearly indicating
those assets which are added from the States contributed capital left to such
units.
b/ Funding sources allocated by
the State budget for execution and materialization of programs, targets,
subjects and projects shall be managed and used according to the competent
authorities approval. Quarterly, reports on the execution tempo as well as fund
reception and expenditures shall be addressed to their superior managing
bodies.
c/ Capital contributed by
non-State organizations and/or individuals of all economic sectors; and
borrowed capital shall be managed and used for the right purposes according to
projects already approved by the competent authorities.
d/ The assignment, liquidation,
mortgage and pledge of assets included in the States capital source must be
decided by the superior managing bodies after obtaining written opinions of the
finance agencies of the same level. The semi-public establishments are entitled
to assign or sell their redundant assets or technically obsolete assets to
retrieve capital for use as supplement to their financial sources for
operations. Before selling such assets, the establishments shall have to set up
price-determining councils and organize auctions thereof according to
provisions of law.
e/ Semi-public establishments
are entitled to take the initiative in and responsible before law for the
assignment, liquidation, mortgage and/or pledge of assets not belonging to the
States contributed capital.
f/ Fixed asset depreciation
shall be left as supplementary capital for the units to consolidate their
material bases. In special cases, the head of a semi-public unit may set out
and apply a quick depreciation rate suitable to the solvency of service
beneficiaries.
2. Semi-public non-business
cultural establishments shall be entitled to apply the revenue-expenditure
regime applicable to public establishments or according to agreements reached
with cultural service beneficiaries. Annually, semi-public cultural
establishments shall draft revenue-expenditure estimates according to their
generation sources and, after having such estimates approved by their
management boards, submit them to the superior managing bodies for
synthesization and forwarding to the finance agencies of the same level.
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4. Semi-public cultural
establishments shall conduct the regular financial examination and inspection
of their use of funds; publicize their revenues, expenditures and incomes
distributed to their laborers, the situation of asset increase or decrease
depending on the State capital sources and non-budgetary mobilized sources.
5. The establishments heads
shall be their accounts holders and be answerable to the management boards and
the direct managing bodies for the entire work of managing the establishments
finance and assets.
6. Annual fiscal results of
semi-public establishments operating in the cultural domain shall be determined
between their total revenues and total expenditures in the fiscal year.
The semi-public cultural
establishments surplus revenue-expenditure difference shall be spent at
specific rates on the following under their management boards decisions:
- Supplementing their operation
funds;
- Consolidating their material
bases;
- Giving rewards, bonuses
(incentives) and welfare to their laborers and subjects directly undertaking
cooperation with the units;
- Distributing incomes generated
from the capital sources contributed by the State, collectives and individuals.
Particularly, establishments may withhold yields from the States contributed
capital to invest in consolidating material bases and account them as increase
to the States contributed capital.
3.2. For people-founded
establishments:
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Annually, the management boards
shall adopt the revenue-expenditure estimates and prescribe the ratio between
the regular expenditures and investments; ratio between expenditures for people
and for operations; set the rate of interest to be paid to capital-contributing
organizations and individuals according to their capital contribution
proportions.
People-founded establishments
shall make quarterly and annual reports on revenue-expenditure settlement; the
situation on capital and asset increase and decrease, according to the current
regulations and submit them to the management boards for approval.
3.3. For private establishments:
Private cultural establishments
shall take the initiative in organizing their activities and be responsible
before law for their financial and other activities.
3.4. Settlement of financial
matters upon the establishments dissolution or bankruptcy
When a non-public cultural
establishment is declared bankrupt or dissolved, the financial matters shall be
settled according to the following priority order:
- Expenses as prescribed by law
for the carrying out of the establishments dissolution or bankruptcy.
- Arrears of wage, severance
allowances, social insurance according to provisions of law and other benefits
according to the already signed collective labor agreements and labor
contracts.
- Tax arrears.
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+ If the value of the
establishments remaining assets is enough to pay all debts to creditors, each
creditor shall have his/her/its debts fully paid.
+ If the value of the
establishments remaining assets is not enough to pay all debts to creditors,
each creditor shall have only part of his/her/its debts paid according to
his/her/its proportion in the whole debt amount.
- If the value of the
establishments remaining assets is larger than that of all debts owed to
creditors, the surplus shall go to:
+ The establishment owner, for
private establishments;
+ The establishments members
(including the State budget), for semi-public establishments and people-founded
establishments.
Part III
ORGANIZATION OF IMPLEMENTATION
This Circular takes effect 15
days after its signing.
Any problems arising in the
course of implementation should be promptly reported to the Ministry of Culture
and Information and the Ministry of Finance for consideration and appropriate
amendments and supplements.
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FOR THE MINISTER
OF CULTURE AND INFORMATION
VICE MINISTER
Nguyen Trung Kien
FOR THE MINISTER
OF FINANCE
VICE MINISTER
Nguyen Thi Kim Ngan