Decision No. 1039/1997/QĐ-BTC on the issuance of financial management regulations for Associations and Federations of Sports

Pursuant to …;

Regarding the issuance of financial management regulations for associations and sports federations

THE MINISTER OF FINANCE

Pursuant to the Law on Government Organization which was adopted by the National Assembly on September 30, 1992;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, powers, and organization of the Ministry of Finance;

Pursuant to Circular No. 258-TTg dated June 14, 1957 detailing the implementation of Law No. 102-SL/L004 dated May 20, 1957 regarding the right to form associations;

Pursuant to Directive No. 01-CT of the Chairman of the Council of Ministers (now Prime Minister) dated January 5, 1989 concerning the management of organizations and activities of mass associations;

To strengthen financial management for associations and sports federations, thereby continuously promoting the movement and improving national sports achievements;

Considering the proposal of the Director of the Financial Policy Department;

DECISION:

Article 1. This Decision hereby promulgates the "Financial Management Regulations for Associations and Sports Federations" attached hereto.

These regulations apply to sports federations that have been established according to the provisions of Law No. 102-SL/L04 dated May 20, 1957 and whose charters have been recognized by the Organizational and Cadre Affairs Committee of the Government, including central federations and systems at various levels in localities and sectors nationwide.

Article 2. This Decision shall take effect fifteen days from the date of signature.

Article 3. The Director of the Financial Policy Department and heads of units under the Ministry of Finance within their respective functions and authorities shall be responsible for organizing the implementation, guiding, and supervising the enforcement of this decision.

The Executive Committees of the federations shall be responsible for implementing this decision.

 

REGULATIONS

FINANCIAL MANAGEMENT FOR SPORTS FEDERATIONS AND ASSOCIATIONS
(Issued with Decision No. 1039/1997/QD-BTC dated December 17, 1997 of the Minister of Finance)

Chapter 1:
GENERAL PROVISIONS

Article 1. These regulations apply to sports federations that have been established according to the provisions of Law No. 102-SL/L04 dated May 20, 1957 and whose charters have been recognized by the Organizational and Cadre Affairs Committee of the Government, including central federations and systems at various levels in localities and sectors nationwide.

Article 2. Federations must ensure their own funding for their activities and protect the legitimate rights and interests of their members. All revenues and expenditures of the federation must comply with the plan approved by the Physical Culture and Sports Committee.

Article 3. If federations engage in production and business operations, they must organize separate accounting and fulfill their obligations to the state budget as required of other production and business units.

Chapter 2:
MANAGEMENT AND USE OF ASSETS OF SPORTS FEDERATIONS

Article 4. The assets of federations include all tangible and intangible assets formed from contributions of members; assets received as gifts or donations, and other assets formed from sources consistent with the provisions of the law.

Article 5. Federation assets may only be used to achieve the objectives and tasks set forth in the federation's charter.

Article 6. Annually, federations must conduct an assessment of asset value and determine the depreciation of assets according to current regulations.

Article 7. Asset loss of federations refers to the reduction in asset value due to subjective and objective causes.

When asset loss occurs, federations must clearly identify the cause of the loss and develop a remediation plan. For losses caused by subjective reasons, federations must determine the responsibility and extent of damage for each case and compel the responsible party to compensate for damages in accordance with the law.

Article 8. Federations have the right to proactively liquidate or sell assets owned by the federation to enhance the effectiveness of their operations:

1. The Federation Congress decides to liquidate or sell immovable assets of the federation after obtaining approval from the Physical Culture and Sports Committee.

2. The Federation Executive Committee decides to liquidate or sell federation assets (except those specified in Point 1 of this Article). For assets valued at 50 million dong or more, when the federation wishes to liquidate or sell them, it must obtain approval from the Physical Culture and Sports Committee.

3. When selling assets, a revaluation must be conducted and public auction organized in accordance with the law. The difference between the proceeds from the sale of the asset and its remaining value and the costs of the sale shall be recorded as revenue (if income exceeds expenses) or as expenditure (if expenses exceed income).

4. When liquidating obsolete, substandard, or technologically outdated assets that cannot be used, or damaged assets that cannot be restored, the federation must establish a liquidation committee. In cases where assets are sold through liquidation, public auction must be organized in accordance with the law. The difference between the proceeds from the liquidation of the asset and its remaining value and the costs of liquidation shall be recorded as revenue (if income exceeds expenses) or as expenditure (if expenses exceed income).

Chapter 3:
REVENUES AND EXPENSES OF SPORTS FEDERATIONS

Article 9. Revenues of federations include:

1. Mandatory fees paid by members as stipulated in the federation's charter (membership fees, contributions from organizational bases);

2. Administrative and professional fees such as athlete registration fees, coach registration fees, competition registration fees;

3. Donations from domestic and foreign organizations and individuals;

4. Sponsorship funds (directly or through intermediaries) from domestic and foreign organizations and individuals;

5. Gifts and donations from domestic and foreign organizations and individuals;

6. International aid from individuals and organizations;

7. Subsidies from the state budget (if applicable);

8. Proceeds from the liquidation and sale of federation assets;

9. Proceeds from economic activities of the federation after fulfilling obligations to the state budget as prescribed by law, such as:

+ Production and business operations;

+ Advertising activities (including sponsorships through advertising);

+ Performances and competitions;

+ Publishing books, newspapers, magazines, lottery tickets;

+ Rental income from assets of the Federation;

+ Revenue from selling emblems, symbols, badges... of the Federation;

+ Revenue from broadcasting rights for sports competitions;

10. Other revenues such as fines, litigation costs...

Article 10. Expenditures of the Federation

The expenditures of the Federation must ensure the principle of being purposeful, economical, and effective to continuously develop the movement and improve sports achievements, and be consistent with the expenditure standards approved by the Federation Congress.

Specific expenditures include:

1. Fulfilling obligations to the State Budget in accordance with current regulations;

2. Expenditures for the activities of the Office, Executive Board, Conferences, Federation Congress including: expenses for purchasing machinery and office supplies, venue rental fees, reception and ceremonial expenses, travel allowances, salaries and wages for office staff (this expenditure is determined based on labor contracts signed between the Federation and employees), electricity, water bills, communication fees...

3. Training allowances for coaches, referees, and support for athletes participating in domestic and international competitions.

4. Expenditures for propaganda, press, publishing, scientific information.

5. Support expenditures for specialized competitions according to the Federation Congress regulations.

6. Awards and incentives for young talents.

7. Construction, equipment, repair of infrastructure and facilities.

8. Costs for economic activities;

9. Expenditures for international relations activities;

10. Costs for soliciting sponsorships, including commissions paid to brokers;

11. Other reasonable expenditures.

Article 11. For foreign organizations and individuals' aid, the Federation must fulfill commitments made to donors and comply with current state financial regulations regarding received aid.

Management, collection, and disbursement of funds from the State Budget (if applicable) must comply strictly with the State Budget Law and other current state regulations.

Article 12. The Federation is responsible for receiving, managing, and using sponsorships from organizations and individuals both domestically and internationally effectively.

Annually, the Executive Board of the Federation must prepare plans for receiving, managing, and utilizing sponsorships to report to the Sports Physical Culture Committee. Before signing sponsorship contracts, the Executive Board must report to the Sports Physical Culture Committee for monitoring. All costs related to soliciting sponsorships must have valid receipts and be closely managed according to prescribed accounting and statistical systems. After deducting legitimate costs (including commissions if any), the remaining sponsorship funds can only be used for the development of the movement and improvement of sports achievements of the Federation.

Chapter 4:
ACCOUNTING, STATISTICAL RECORDS, AND AUDIT REGULATIONS

Article 13. The Federation must organize accounting and statistics in accordance with current state regulations:

+ Recording complete original vouchers;

+ Updating accounting records, reflecting fully, truthfully, accurately, and objectively.

Article 14. At the end of the fiscal year, the Federation must:

+ Prepare comprehensive financial reports within the stipulated deadlines (including separate settlement of sponsored fund usage), engage independent auditors if necessary.

+ The Executive Board must be responsible for the accuracy and honesty of the financial reports.

+ Publicly disclose the financial situation of the Federation.

+ Submit all financial reports of the Federation to the Sports Physical Culture Committee, Ministry of Finance, and relevant agencies in full and on time.

The Federation's fiscal year begins on January 1 and ends on December 31 of each calendar year.

Chapter 5:
RESPONSIBILITIES OF THE FEDERATION CONGRESS, EXECUTIVE BOARD, AND STATE MANAGEMENT AUTHORITIES IN MANAGING THE FEDERATION'S FINANCES

Article 15. The Federation Congress is the highest leadership body of the Federation, tasked with:

1. Approving the budget estimates and final accounts of the Federation;

2. Approving the principles, systems, and expenditure standards of the Federation;

3. Inspecting and deciding major economic and financial issues of the Federation.

4. Deciding on the liquidation or sale of immovable property owned by the Federation after obtaining written agreement from the Sports Physical Culture Committee. Deciding on the handling of capital and asset losses of the Federation;

5. Establishing and formulating the operational rules of the Inspection Board to conduct inspections and supervision over the management and use of Federation assets;

6. Deciding on the establishment or dissolution of Federation enterprises in accordance with the law.

Article 16. The Executive Board is the highest leadership body between two Federation Congress terms, tasked with:

1. Formulating principles, systems, and expenditure standards to be submitted to the Federation Congress for approval;

2. Organizing the implementation of the budget approved by the Federation Congress;

3. Approving program budgets;

4. Being accountable to the Federation Congress for all decisions related to Federation finances;

5. Deciding on the liquidation or sale of Federation assets in accordance with Point 2, Article 8 of this Regulation;

6. Organizing the exploitation of all financial resources to serve the development of national sports;

7. Annually, being responsible for publicly disclosing all economic and financial activities of the Federation;

8. Preparing overall budget estimates and final accounts to be submitted to the Federation Congress for approval and reporting to the Sports Physical Culture Committee for endorsement;

9. Preparing annual budget estimates and final accounts to be reported to the Sports Physical Culture Committee for monitoring and supervision;

10. Annually preparing plans for receiving, managing, and utilizing sponsorships and reporting to the Sports Physical Culture Committee;

11. When signing sponsorship contracts, the Executive Board must report to the Sports Physical Culture Committee for monitoring and supervision;

12. Based on contracts signed with sponsors for competitions and agreements with members, deciding on the distribution plan for sponsorships to appropriately reward athletes participating in the competitions.

Article 17. The Economic-Financial Board of the Federation is an agency established by the Federation's Executive Board to assist the Executive Board in performing its tasks:

1. Establish annual economic-financial plans and budget estimates and overall budget estimates;

2. Organize and implement approved economic-financial plans;

3. Develop schemes for mobilizing and distributing financial support for competitions;

4. Implement financial management and accounting-statistical work in accordance with the provisions of the law.

Article 18. The Inspection Board of the Federation shall have the following responsibilities:

1. Inspect and supervise all financial activities of the Federation;

2. The activities of the Inspection Board must ensure objectivity, honesty, strict compliance with the law, state policies, and operational regulations established by the Federation Congress.

Article 19. Responsibilities of the Sports Committee in managing finances of Federations.

1. Guide, monitor, assist, and inspect Federations' management and use of assets in accordance with the provisions of the law.

2. Approve the Federation's overall budget plans and estimates;

3. Inspect and supervise the implementation of annual budget plans and overall budget estimates;

4. Supervise the implementation of sponsorship contracts.

Article 20. Sports Federations and relevant agencies are responsible for implementing this Charter; during implementation, if there are any difficulties, they should report to the Ministry of Finance for study and amendment.