Joint Circular No. 01-TC-TVHC guiding the management of income and expenditure for kindergartens and the transfer of kindergarten subsidy funds to the Vietnam General Confederation of Labor for management.

JOINT CIRCULAR

Guidelines for managing income and expenditure of kindergartens and transferring kindergarten subsidy funds to the management of the Vietnam General Confederation of Labor

subsidy for childcare centers transferred to the Vietnam General Confederation of Labor for management

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Pursuant to Decision No. 104-TTg dated October 17, 1962 of the Council of Ministers, from now on, the organization and management of kindergartens at state agencies and enterprises shall be under the responsibility of the Vietnam General Confederation of Labor.

The Vietnam General Confederation of Labor and the Ministry of Finance provide detailed guidelines below for implementing the above decision:

Annually, the Ministry of Finance will transfer the entire amount of funds subsidized by the State Budget for kindergartens to the management of the Vietnam General Confederation of Labor. Administrative agencies and public services, as well as industrial and agricultural enterprises, will no longer need to allocate funds for kindergartens: administrative agencies and public services will not include expenditures for kindergartens in their budget estimates; industrial and agricultural enterprises will no longer retain a portion of profits for kindergartens as before.

I. CONTENTS OF INCOME AND EXPENDITURE OF KINDERGARTENS

Kindergarten is a collective welfare service unit with both income and expenditure.

Regarding income: The main sources of income for kindergartens include:

1. Contributions from female workers and officials who send their children to kindergartens according to current regulations.

2. Subsidies from the State at a percentage rate of the total wage fund (both administrative and public service sectors and production sectors) recorded in the annual plan.

3. Subsidies from enterprises (if any) used for developing and equipping kindergartens within enterprises.

Regarding expenditure: Expenditures for kindergartens include the following items:

1. Salaries and allowances for staff working at kindergartens.

2. Social benefits for staff working at kindergartens:

- Deducting 2% of union fees;

- Deducting 4.7% for social insurance;

- Medical expenses and medications;

- Child allowances and hardship allowances;

- Collective welfare expenses (cafeteria...);

- Other benefits such as leave, etc...

3. Equipment costs, including repairs of kindergarten equipment, minor repairs, and rent (if applicable).

4. Purchasing and equipping kindergartens according to current regulations (excluding initial construction and equipping, which are covered by basic construction funds).

5. Training and professional development for staff working at kindergartens.

6. Subsidies for female workers and officials whose children under 36 months old cannot be sent to kindergartens when they travel away from home and must hire someone to look after their children.

7. Management expenses for kindergartens managed by the Federation of Trade Unions in provinces, cities, and central unions.

The following items are not included in the expenditures of kindergartens:

1. New construction and initial equipping costs: covered by the basic construction fund of the agency, enterprise, or locality.

2. Depreciation costs of kindergartens belonging to enterprises (if any): covered by the enterprise.

3. Major repair costs: covered by the enterprise or agency.

4. Costs for ordinary medicines for kindergartens (at a standard of 0.25 dong per child per month): covered by the medicine fund managed by the Ministry of Health.

5. Fees for childcare outside regular hours to assist female workers and officials in their leisure activities and studies: resolved by female workers and officials themselves.

6. Food expenses for children, laundry detergent for diapers, firewood and coal for cooking and heating during winter: resolved by female workers and officials themselves.

And other expenditures not specified by the State.

II. PROCEDURE FOR TRANSFERRING SUBSIDY FUNDS FOR KINDERGARTENS AT A PERCENTAGE RATE OF THE WAGE FUND TO THE MANAGEMENT OF THE VIETNAM GENERAL CONFEDERATION OF LABOR.

Annually, the State Budget estimates subsidy funds for kindergartens at a percentage rate of the total wage fund (both administrative and public service sectors and production sectors) recorded in the annual plan. In 1963, this ratio is 0.87% of the total wage fund.

So far, administrative agencies and public services have received direct subsidies from the Finance Department to fund kindergartens. State-owned enterprises, industrial, agricultural, and forestry enterprises have been deducting profits to subsidize kindergartens.

Now, the Ministry of Finance transfers the total subsidy funds for kindergartens belonging to administrative agencies, public services, and enterprises (including joint-stock enterprises that have improved salary systems and local enterprises that have implemented economic accounting) to the Vietnam General Confederation of Labor; the Confederation distributes these funds to the Federation of Trade Unions in provinces, cities, and regions to subsidize kindergartens under the management of administrative agencies, public services, and enterprises, including central agencies and enterprises located in localities. For kindergartens under ministries and central organizations located in Hanoi, the Federation of Central Agencies will manage and distribute the allocated subsidy funds.

Therefore, the Finance Departments at both central and local levels will no longer allocate funds for kindergartens to individual agencies as before; enterprises will no longer deduct profits to subsidize their own kindergartens as before.

As for kindergartens of enterprises and agencies under the Ministry of National Defense, the Ministry of National Defense will base on this document to guide its implementation together with the Ministry of Finance and the Vietnam General Confederation of Labor.

III. ESTABLISHING ANNUAL BUDGETS AND SETTLING INCOME AND EXPENDITURE OF KINDERGARTENS

1. Encirclement and promotion of regeneration: Annually, the Vietnam General Confederation of Labor will establish a full-year budget for income and expenditure of kindergartens, clearly stating the requested State Budget subsidy and distribution plans for each locality.

The full-year budget for income and expenditure will be submitted to the Ministry of Finance for approval by the Government.

After the budget is approved, the Vietnam General Confederation of Labor will notify the Federation of Trade Unions in provinces, cities, and regions about the full-year subsidy for kindergartens under their management so that the Federations can plan the distribution for grassroots trade unions. When notifying the Federation of Trade Unions in provinces, cities, and regions, they will also inform the local Finance Departments at the same level to monitor the implementation.

Each quarter, based on the plan, income and expenditure of grassroots trade unions, kindergarten management agencies, and within the scope of the distributed subsidy funds for the year, the Federation of Trade Unions in provinces, cities, and regions will review the quarterly income and expenditure plan (divided monthly) of grassroots trade unions, consolidate, and submit to the Vietnam General Confederation of Labor.

Submission time: before the last day of the quarter.

The Vietnam General Confederation of Labor shall prepare quarterly revenue and expenditure plans, broken down by month, to be submitted to the Ministry of Finance before the last day of the quarter preceding the relevant quarter so that the Ministry of Finance has a basis for transferring monthly child care subsidy funds to the account "child care expenses" held in custody by the Vietnam General Confederation of Labor at the State Bank.

The Vietnam General Confederation of Labor will transfer monthly child care subsidy funds to the Federation of Trade Unions for distribution to child care centers through the current accounts of the agencies and enterprise accounts opened at the bank.

: A lacquerware cooperative has 55 members, with 1,300 working days of members in a month and 30 hired workers. The average social labor productivity quota of the cooperative is 200,000 VND revenue per person per month. The total revenue of the cooperative in a month is 14 million VND, with legitimate material costs and management expenses amounting to 7.2 million VND.: The first quarter revenue and expenditure plan of the Federation of Trade Unions of Province A is as follows:

Total expenditures: 32,000 dong (including 1,500 dong covered by the enterprise fund).

Total revenues:

- Revenues from mothers: 5,000 dong

- Other revenues: 500 dong (donations, sale of damaged assets)

Total: 5,500 dong.

Revenue-expenditure difference: 26,500 dong

Enterprise fund expenditure: 1,500 dong (allocated by the enterprise from its enterprise fund for child care centers under the enterprise, which the Federation of Trade Unions does not reallocate elsewhere)

Therefore, the additional subsidy for Province A in the first quarter is:

26,500 dong - 1,500 dong = 25,000 dong

The amount of 25,000 dong will be gradually transferred monthly to the Federation of Trade Unions of Province A by the Vietnam General Confederation of Labor.

Child care subsidies provided by the Ministry of Finance to the Vietnam General Confederation of Labor are recorded under Category II, Clause 41-B "Child Care Subsidies" Section 3.

2. Settlement Reports:

Each grassroots trade union managing a child care center must report on child care center revenues and expenditures (not yet final settlement reports) to the Federation of Trade Unions within ten days after each month.

Each grassroots trade union must submit final settlement reports to the Federation of Trade Unions before the fifteenth day of the first month of the following quarter. Federation of Trade Unions at provincial and municipal levels must review and consolidate these reports and final settlement reports on child care center revenues and expenditures and send them to the Vietnam General Confederation of Labor. Quarterly final settlement reports must be sent to the Vietnam General Confederation of Labor before the thirtieth day of the month following each quarter.

Management of revenues and expenditures at each child care center primarily rests with the grassroots trade unions. Trade unions must cooperate with agency heads and factory directors to manage effectively. The Federation of Trade Unions assists, guides, and monitors management. Local financial authorities have the responsibility to direct and inspect compliance with budgeted revenues and expenditures for child care centers. Therefore, before submitting quarterly revenue and expenditure plans and final settlement reports to the Vietnam General Confederation of Labor, they should be reviewed by local financial authorities at the same level.

Annually, the Vietnam General Confederation of Labor reviews final settlement reports on child care center revenues and expenditures from Federation of Trade Unions at provincial and municipal levels and prepares final settlement reports on child care center revenues and expenditures to be submitted to the Ministry of Finance according to general regulations.

At year-end, if state subsidies for child care centers are not fully utilized, the Vietnam General Confederation of Labor may retain the remaining funds for the development of child care centers in subsequent years.

IV. ACCOUNTING RECORDS AND LEDGER SYSTEM OF CHILD CARE CENTERS.

Each child care center is a welfare public service unit with income.

Each child care center must:

- Fully comply with reporting systems and state accounting records;

- Maintain ledgers according to prescribed formats.

Regarding accounting forms, statistical forms, and ledger formats, the Vietnam General Confederation of Labor and the Ministry of Finance will provide detailed regulations and guidance later.

Although child care subsidies have been transferred to the management of the Vietnam General Confederation of Labor, agency heads and factory directors still bear the responsibility to assist grassroots trade unions in managing child care centers. Simultaneously, to simplify the financial management structure of child care centers, agency heads and factory directors must instruct accounting staff to record revenues and expenditures of child care centers, maintain separate ledgers and accounting records for child care centers, and work with grassroots trade unions to prepare budgets and final settlement reports on child care center revenues and expenditures.

For inter-agency or inter-factory child care centers, the agency or factory with many children or the location where the child care center is organized must assume this responsibility.

For factory child care centers located in worker and civil servant residential areas directly managed by the management board, there must be dedicated personnel responsible for the aforementioned tasks.

V. TIME LIMITS.

This Circular takes effect from January 1, 1963. The Vietnam General Confederation of Labor will take over the management of child care centers from the beginning of 1963. Agencies and factories need to expedite the transfer of child care center management responsibilities to grassroots trade unions.

Existing documents at child care centers will continue to be used.

Development plans and budget estimates for child care centers handed over by agencies and factories will be implemented by grassroots trade unions.

As for child care subsidies, during the first quarter of 1963, agencies and factories will temporarily allocate funds for child care center operations according to current policies. From the second quarter of 1963, child care centers will receive subsidies from the Federation of Trade Unions. The Federation of Trade Unions will reimburse agencies and factories for the temporary allocations made in the first quarter of 1963.

Any difficulties encountered while implementing the above provisions should be reported to the Vietnam General Confederation of Labor and the Ministry of Finance for research and suggestions on resolution.