Decree No. 10/2002/NĐ-CP on financial regulations applicable to public service units with income.

DECREE OF THE GOVERNMENT

Regarding the financial regime applicable to public service units with income

THE GOVERNMENT

Based on the Government Organization Law dated September 30, 1992;

Based on the State Budget Law dated March 20, 1996;

Based on the Law Amending and Supplementing Certain Provisions of the State Budget Law No. 06/1998/QH10 dated May 20, 1998;

To manage uniformly sources of revenue and expenditure, creating conditions for public service units with income to increase their revenues and ensure funding for operational expenses;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

General Provisions

Article 1.

1. This Decree stipulates the financial regime applicable to public service units operating with income established by competent state authorities (referred to as public service units with income).

2. Public service units with income are classified as follows:

a) Public service units that self-fund all regular operational costs (referred to as self-funded public service units).

b) Public service units that self-fund part of their regular operational costs (referred to as partially self-funded public service units).

3. This Decree does not apply to state management agencies, political organizations, political-social organizations, social organizations, and social-professional organizations.

Article 2. Public service units with income have financial autonomy, can proactively allocate funds to fulfill their tasks, and have stable regular operational funding from the state budget for partially self-funded units according to a three-year cycle, and annually receive additional funding at a rate determined by the Prime Minister.

Article 3. Public service units with income may borrow from commercial banks or Development Funds to expand and improve the quality of their operations, organize production and service provision, and bear responsibility for repaying loans in accordance with the law.

Article 4. Public service units with income manage and utilize state assets in accordance with regulations for administrative and public service units. For fixed assets used in production and service provision, the unit implements depreciation recovery of capital in accordance with the regime applied to state-owned enterprises. The amount of depreciation of fixed assets and proceeds from the liquidation of assets belonging to the state budget are retained for investment to strengthen infrastructure and update equipment of the unit.

Article 5Public service units with income may open deposit accounts at banks or National Treasury to reflect revenue and expenditure items of production and service activities; open accounts at the National Treasury to reflect budgetary funding.

Article 6. Public service units with income may proactively use the number of positions allocated by authorized bodies; arrange and manage labor in accordance with the functions and tasks of the unit under the Civil Servant Law and the national policy on reducing staff positions. Those who fall within the scope of reduced staffing enjoy benefits and rights prescribed by the state.

Public service units with income may implement labor contract regimes in accordance with the Labor Code, commensurate with the workload and financial capacity of the unit.

Regulations concerning salaries, wages, social insurance, health insurance; training and upgrading professional skills for employees shall be implemented in accordance with current regulations and those stipulated in this Decree.

, Clause 1, Clause 2 Article 7a of this Regulation.Public service units engaged in production and service provision with income are responsible for fulfilling obligations to the state budget and are entitled to tax exemptions and reductions in accordance with current regulations.

Chapter II

Specific provisions

I. Financial sources and expenditure items of public service units with income.

Article 8. Financial sources

1. State budget allocation:

a) Regular operational funding for partially self-funded units.

b) Funding for implementing national-level, ministry-level, and sector-level scientific research projects, national target programs, and other urgent tasks assigned by authorized bodies.

c) Funding for executing state orders according to prices or price ranges set by the state for tasks such as surveys, planning, and investigations.

d) Funding for implementing staff reduction according to state regulations for staff within the reduction scope.

đ) Investment capital for constructing infrastructure, purchasing equipment for public service activities according to annual plans and approved projects; counterpart funding for approved projects.

2. Public service income of the unit:

a) Portion retained from fees and charges collected by the unit according to state regulations. The level of collection and retention ratio are regulated by the state.

b) Income from production and service provision activities. The level of income from these activities is decided by the head of the unit based on the principle of covering costs and generating surplus.

c) Other public service income as prescribed by law (if any).

3. Other sources as prescribed by law such as aid, debt, gifts, and donations (if any).

Article 9Expenditure items

1. Regular operational expenditure according to functions and tasks assigned by authorized bodies.

2. Production and service provision expenditure.

3. Expenditure for implementing national-level, ministry-level, and sector-level scientific research projects, national target programs, execution of state orders (surveys, planning, investigations...), and counterpart funding for foreign-funded projects as prescribed.

4. Expenditure for implementing staff reduction according to state regulations.

5. Investment development expenditure, including: Infrastructure construction expenditure, equipment purchase expenditure, and project implementation expenditure as prescribed.

6. Expenditure for urgent tasks assigned by authorized bodies.

7. Other expenditures.

Article 10The head of the unit may determine higher management and business operation expenditure levels than those prescribed by the state, based on the content and effectiveness of work within the available financial resources.

II. Salaries and wages of employees.

Article 11. The state encourages units to increase income, reduce expenditure, implement staff reduction, and create conditions for increasing employee income based on completing assigned tasks and fulfilling state budget obligations. Based on the financial results of the year, the head of the unit may determine the salary fund of the unit as follows:

1. For units with self-generated revenue to cover costs: The additional adjustment factor for increasing the minimum wage shall not exceed 2.5 times the national general minimum wage as prescribed by the State.

2. For units with revenue covering part of their costs: The additional adjustment factor for increasing the minimum wage shall not exceed 2 times the national general minimum wage as prescribed by the State.

Within the total payroll fund, wages and salaries shall be determined according to the above levels, after reaching consensus with the Trade Union organization and being publicly disclosed within the unit, the head of the unit shall decide on the payment of wages and salaries based on quality and efficiency of work performance, following the principle that those who achieve results, make contributions to increased income, cost savings, and high work efficiency shall receive higher wages and salaries.

Article 12. When the State adjusts regulations on wages, raises the minimum wage level, or changes norms, systems, and standards for state budget expenditures, units with self-generated revenue shall bear the additional costs according to the new policy and system..

III. Preparation and approval of the budget for revenue and expenditure.

Article 13. Units with revenue shall base their preparation of the budget for revenue and expenditure for the planning year on their functions and tasks assigned by the competent authority, the tasks of the planning year, current financial expenditure regulations; and on the financial results of the immediately preceding year, and submit it to the superior management agency.

Article 14. Heads of units with revenue shall cooperate with the same-level financial agencies to determine the type of unit with revenue according to Article 1 of this Decree, based on the approved budget for revenue and expenditure of the first year of the stabilization period, and the actual implementation of the budget for revenue and expenditure of the immediately preceding year (after excluding extraordinary and non-recurring factors) as approved by the competent authority.

The Minister, heads of ministries equivalent to ministries, agencies under the Government, Chairpersons of People's Committees at all levels shall review the budget for revenue and expenditure of subordinate units with revenue and approve the state budget guaranteeing regular operations for units with revenue covering part of their costs after reaching consensus with the Ministry of Finance (for central units) and local financial agencies (for local units).

During the period when the state budget guarantees stable operating funds, each year the unit shall prepare the budget for revenue and expenditure and submit it to the main managing ministry (for central units) or the local main managing agency (for local units), and the State Treasury where the unit has its account opened for expenditure control according to current regulations and this Decree.

During the implementation process, the unit may adjust the budget for revenue and expenditure within the scope of available financial resources to suit actual conditions and report to the main managing agency and the State Treasury for monitoring and management.

Article 15. Annually, the financial agency shall allocate funds from the state budget according to the State Budget Law and this Decree.

Article 16. Funds from the state budget guaranteeing regular operations and other revenue, if not fully expended by the end of the year, may be carried over to the next year for continued use.

IV. Establishment and utilization of funds.

Article 17. Establishment of funds

Annually, after covering all operational expenses and fulfilling all obligations to the state budget according to the law; the surplus (if any) between the revenue (excluding research and development funds; national target program funds; extraordinary tasks assigned by the competent authority; funds for streamlining staff; basic construction investment capital, counterpart capital from the state budget; loans and aid) and corresponding expenditure, the unit may establish the following funds: Income Stabilization Reserve Fund, Reward Fund, Welfare Fund, and Development Fund for Public Services Activities. The establishment of these funds shall be decided by the head of the unit after reaching consensus with the unit's Trade Union organization and shall follow the procedure as follows:

1. Establishment of the Income Stabilization Reserve Fund.

2. Establishment of the Reward Fund and Welfare Fund up to a maximum of three months' average actual salary for the year.

3. Establishment of the Development Fund for Public Services Activities after establishing the aforementioned three funds.

Article 18. Utilization of funds

1. The Income Stabilization Reserve Fund shall be used to ensure income for employees in cases where revenue sources decline.

2. The Reward Fund shall be used for periodic and extraordinary rewards to collectives and individuals based on work performance and achievements. The head of the unit shall decide on the use of the Reward Fund after reaching consensus with the unit's Trade Union organization.

3. The Welfare Fund shall be used for constructing and repairing welfare facilities; funding collective welfare activities for employees in the unit; providing emergency assistance to employees including those retiring or losing their ability to work. Additional funding for employees when implementing staff streamlining. The head of the unit shall decide on the use of the Welfare Fund after reaching consensus with the unit's Trade Union organization.

4. The Development Fund for Public Services Activities shall be used for investment and development to enhance public service activities, supplement capital for infrastructure construction, purchase of machinery and equipment, scientific and technological research and application; additional support for training and improving skills and work capacity for cadres and civil servants in the unit. The use of the Development Fund for Public Services Activities for the aforementioned purposes shall be decided by the head of the public service unit according to the law.

V. Implementation of accounting, statistics, reporting, settlement, inspection, and financial transparency.

Article 19.

1. All revenues and expenditures of units with revenue belonging to the state budget must be reflected in the state budget according to current regulations.

2. Units with revenue shall organize accounting, statistical work, and financial reporting according to the legal provisions on accounting and statistical systems applicable to administrative and public service units. The head of the unit shall be responsible for decisions on revenue and expenditure, assets, labor, and the accuracy and objectivity of accounting, settlement, statistical data, and periodic financial reports.

3. The superior administrative authority shall be responsible for examining and approving the final accounts of affiliated public service units with revenue. The financial authority at the same level shall be responsible for reviewing the final account report submitted by the superior administrative authority in accordance with current regulations.

4. Public service units with revenue shall publicly disclose their finances in accordance with the provisions of the law.

Chapter III

Implementation Provisions

Article 20. This Decree shall take effect fifteen days from the date of signature.

Article 21. The Minister of Finance shall take the lead and coordinate with relevant ministries and sectors to provide guidance on the implementation of this Decree.

Article 22. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of People's Committees at all levels shall be responsible for implementing this Decree./.