Decree No. 16/2015/ND-CP on the mechanism of autonomy for public service units

DECREE

Article 24stipulates the autonomy mechanism of public service units.session number

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Pursuant to the Civil Servant Law dated November 15, 2010;

Pursuant to the Law on Prices dated June 20, 2012;

At the proposal of the Minister of Finance,

The Government promulgates a Decree to stipulate the autonomy mechanism of public service units.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the principles and general provisions on the autonomy mechanism of public service units in the following fields: education and training; vocational training; health; culture, sports and tourism; information and communication and press; science and technology; economic public services and other public services.

Article 2. Applicability

1. Public service units established by state authorities in accordance with the law, having legal personality, providing public services for state management (hereinafter referred to as public service units).

2. Public service units under the Ministry of National Defense, the Ministry of Public Security, political organizations, and political-social organizations shall apply the provisions of this Decree and other relevant laws.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Autonomy mechanism of public service units" refers to regulations concerning the rights to self-management and self-responsibility in performing tasks, organizational structure, personnel, and finance of public service units.

2. "Public service" refers to public services in the fields of education and training; vocational training; health; culture, sports and tourism; information and communication and press; science and technology; economic public services and other public services.

3. "Public service using state budget funds" refers to public services where the State guarantees all costs or public services that have not been fully covered in prices or fees, supported by the state budget.

4. "Public service not using state budget funds" refers to public services with high socialization conditions, the State does not subsidize, the price of public services according to market mechanisms.

Article 4. State Management of Public Services and Public Service Units

1. Establishing laws on state management of public services and public service units; encouraging, creating conditions, establishing an equal and competitive environment for organizations and individuals from all economic sectors to participate in providing public services.

2. Planning networks of public service units by sector and field; list of public services using state budgets; issuing economic and technical norms applicable in areas of public services managed by the State; regulations on bidding, ordering, and assigning tasks for providing public services.

3. Setting quality criteria and standards for public services; mechanisms for monitoring, evaluating, and certifying the quality of public services and the effectiveness of public service unit operations.

4. Specifying the roadmap for pricing and fee setting for public service units to implement and directly support policy beneficiaries using public services.

5. Regulations on procedures and conditions for establishment, restructuring, dissolution, and organization and operation of public service units; reorganization and conversion of public service units according to approved planning; delegating autonomy to subordinate public service units.

6. Regulations on converting public service units to non-state public service units or enterprises.

7. Issuing mechanisms and policies to encourage socialization of public service activities.

8. Inspecting, supervising, and penalizing violations in the provision of public services.

Chapter II

AUTONOMY MECHANISM OF PUBLIC SERVICE UNITS

Section 1

AUTONOMY IN PERFORMING TASKS, ORGANIZATIONAL STRUCTURE, AND PERSONNEL

Article 5. Autonomy in performing tasks

1. Autonomy in developing plans

The plan for implementing tasks of public service units includes a part of the plan determined by the unit itself in accordance with its functions, tasks, and capacity as prescribed by law, and a part of the plan according to the functions and tasks assigned.

a) For public services not using state budget funds: Public service units independently develop plans for implementing tasks, report to the superior management agency for monitoring, inspection, and supervision of implementation;

b) For public services using state budget funds: Public service units develop plans for implementing tasks, report to the superior management agency for approval and determination of the method of allocating plans to the units for implementation.

2. Autonomy in organizing task implementation

a) Decide on measures to implement tasks according to the unit's plan, the plan assigned by the superior management agency, ensuring quality and progress;

b) Participate in bidding to supply public services in line with the specialized field of the unit authorized by the competent authority;

c) Jointly operating with organizations and individuals to provide services meeting societal needs in accordance with the law.

Article 6. Autonomy in Organizational Structure

Public service units may decide to establish, reorganize, or dissolve units that are not part of the organizational structure of constituent units, based on decisions of the competent authority, when meeting the criteria, conditions, and standards stipulated by law; develop restructuring plans for constituent units to be submitted to the competent authority for decision.

Specifically, public service units self-financing part of their recurrent expenses and those fully financed by the state budget: Develop restructuring and organizational improvement plans to be submitted to the competent authority for decision.

Article 7. Autonomy in Human Resources

1. Public service units establish job positions and staff structures according to occupational titles, submit them to the competent authority for approval; recruit, use, appoint, dismiss, reward, discipline, and manage staff and workers in accordance with the law; hire labor contracts to perform tasks.

Public service units self-financing recurrent and investment expenses and those self-financing part of their recurrent expenses determine the number of employees; public service units self-financing part of their recurrent expenses propose the number of employees to the competent authority for decision; public service units fully financed by the state budget propose the number of employees based on the average staffing level of the previous five years and not exceeding the current staffing level of the unit, to be submitted to the competent authority for decision (for newly established public service units operating less than five years, the average over the entire period of operation is calculated).

2. In cases where public service units have not established job positions and staff structures according to occupational titles, the number of employees is determined based on the average staffing levels of previous years as guided by the Ministry of Home Affairs.

Article 8. Management Board

1. Public service units self-financing recurrent and investment expenses must establish a Management Board to decide important issues during the unit's operations.

2. Based on specific conditions, management requirements, and specialized laws, if necessary, Ministries, agencies at the ministerial level, and government agencies (hereinafter referred to as Ministries, central agencies), People's Committees of provinces and centrally-administered cities (hereinafter referred to as provincial People's Committees) shall specify the establishment of Management Boards for public service units not covered by Clause 1 of this Article.

3. The Management Board decides on the strategic plans, medium-term and annual plans of the unit; decides on major policies for expanding activities, establishing, reorganizing, or dissolving subordinate units; decides on major personnel policies (appointments, rewards, disciplinary actions for staff; specifically regarding the number of employees, it follows the provisions of Article 7 of this Decree); approves the organizational and operational regulations of the unit to be submitted to the competent authority for decision; approves the annual financial settlement reports, implements inspections and supervisions of plan implementation, the implementation of democratic regulations, and decides other important issues of the unit as prescribed by law.

4. The Management Board consists of from 5 to 11 members; the Chairman and members of the Management Board are appointed by the competent authority deciding the establishment of the unit; the Management Board includes representatives of the superior management agency.

5. Procedures for establishing, positions, functions, tasks, powers, organizational structures, and approval of operational regulations of the Management Board in public service units, relationships between the Management Board and the heads of public service units and superior management agencies follow the guidance of the Ministry of Home Affairs.

Section 2

CHARGES AND FEES FOR PUBLIC SERVICES

Article 9. Price and Fee for Public Services

1. Price for Public Services

a) Public services not using state budget funds

- Public service units can set service charges according to market mechanisms, decide on revenues and revenue levels to ensure reasonable cost coverage and accumulation as prescribed by law for each sector;

- Specifically, medical examination and treatment services and education and training services at state-owned medical facilities and educational institutions are implemented in accordance with legal provisions on pricing.

b) Public services using state budget funds

- Service charges for public services are determined based on economic and technical norms, cost standards issued by the competent authority and the schedule for full cost recovery as stipulated in Article 10 of this Decree, including salary costs in service charges calculated based on the base salary, salary coefficients for rank and position for public service units, and labor norms issued by central ministries, agencies, and provincial People's Committees within their respective authorities;

- Pricing methods and competent authorities determining service charges for public services are carried out in accordance with legal provisions on pricing;

- Within the framework of service charge ranges set by competent state authorities, public service units decide specific charge levels for each type of service; in cases where competent state authorities specify service charge levels, units collect fees according to the specified levels.

2. Fee for Public Services

Public service activities under the fee collection list shall be implemented in accordance with the laws on fees and charges. Public service units are allowed to collect fees at levels prescribed by competent state agencies.

Article 10. Pricing schedule for public services funded by state budget

1. Schedule for calculating the price of public services

a) By 2016: Calculate sufficient salary costs and direct costs (excluding management costs and depreciation of fixed assets);

b) By 2018: Calculate sufficient salary costs, direct costs, and management costs (excluding depreciation of fixed assets);

c) By 2020: Calculate sufficient salary costs, direct costs, management costs, and depreciation of fixed assets.

2. Based on actual conditions, public service units may implement pricing schedules for public services ahead of those specified in Clause 1 of this Article.

3. Ministries, central agencies, provincial People's Committees shall base on the price regulations for public services stipulated in Clause 1 of Article 9 of this Decree, the state budget balance capacity, and the payment ability of beneficiaries, to establish pricing schedules for public services within their jurisdiction or issue them according to their authority.

Article 11. List of public services funded by state budget

1. The list of public services funded by state budget shall be issued by competent state agencies:

a) The Minister or Head of Central Agencies shall determine the list of public services funded by state budget in their respective sectors and fields of management, submit it to the Prime Minister for promulgation, after obtaining opinions from the Ministry of Finance and the Ministry of Planning and Investment;

b) The Chairman of Provincial People's Committees shall decide on the list of public services funded by state budget within the scope of local management (excluding the list of public services issued by the Prime Minister as specified in Point a, Clause 1 of this Article).

2. Based on the list of public services stipulated in Clause 1 of this Article, ministries, central agencies, and provincial People's Committees shall decide or delegate subordinate agencies to select public service units to provide public services through assignment, procurement, or bidding as regulated.

Section 3

SELF-FINANCING

Article 12. Financial autonomy for public service units self-financing recurrent and investment expenses

1. Sources of finance for the unit

a) Revenue from public service activities, including state budget funds assigned for purchasing public services at cost prices;

b) Fees retained for expenditure as prescribed by law on fees and charges (including recurrent expenditure and major repair and equipment purchase costs related to fee collection);

c) Other revenues as prescribed by law (if applicable);

d) State budget funds allocated for non-recurrent tasks (if applicable), including: scientific and technological project funding (for non-scientific and technological organizations); national target program funding; other programs, projects, and proposals; counterpart funding for projects decided by competent authorities; development capital; funding for equipment purchases for public service activities approved by competent authorities; funding for urgent tasks assigned by competent authorities;

đ) Borrowed capital, aid, and grants as prescribed by law.

2. Use of financial resources

a) Investment expenditures from the Public Service Development Fund, borrowed capital, and other lawful financial sources.

- Based on investment needs and financial balance capabilities, units shall proactively develop a list of investment projects, report to competent authorities for approval. On the basis of the approved list of investment projects, units shall decide on investment projects, including aspects such as scale, construction plans, total investment amount, sources of funding, phased implementation periods in accordance with the law on investment.

- Public service units are eligible to borrow preferential credit from the State or receive interest rate subsidies for investment projects using loans from financial institutions as prescribed.

- Based on the development requirements of the unit, the State will consider allocating capital for ongoing investment projects and other investment projects as decided by competent authorities.

b) Recurrent expenditure: Units are allowed to autonomously use financial resources assigned for autonomous management as specified in Point a, Point b (the portion retained for recurrent expenditure) and Point c of Clause 1 of this Article for recurrent expenditure. Some expenditure items are regulated as follows:

- Salary expenditure: Units pay salaries according to the salary grade, rank, position, and allowances prescribed by the State for public service units. When the State adjusts salaries, units must ensure additional salary increases from their own revenue sources (the state budget does not provide supplementary funding).

- Professional activity expenditure, management expenditure

For expenditure items that have established standards as prescribed by competent state agencies: Based on financial capacity, units can decide on higher or lower expenditure levels than those prescribed by competent state agencies and stipulated in the internal expenditure regulations of the unit;

For expenditure items without established standards as prescribed by competent state agencies: Based on actual conditions, units shall establish appropriate expenditure levels in accordance with internal expenditure regulations and bear responsibility for their decisions.

- Depreciation of fixed assets shall be recorded as prescribed. Funds for depreciation of assets formed from state budget sources or derived from the state budget shall be accounted for in the Development Fund for Public Services.

c) Non-recurrent expenditure: Units shall spend according to the provisions of the State Budget Law and current laws for each source of funding specified in Point b (the portion retained for equipment purchase and major repairs), Point d, and Point đ of Clause 1 of this Article.

d) Public service units must comply with the State's regulations on expenditure limits, standards, and quotas for car usage; standards and quotas for office space; standards and quotas for official phones at home and mobile phones; foreign travel expense regulations; foreign reception and international conference regulations in Vietnam.

3. Distribution of annual financial results

a) Annually, after fully accounting for all expenses, paying taxes, and other state budget payments (if applicable) as prescribed, units may use the surplus of revenue over recurrent expenditure (if any) in the following sequence:

- At least 25% to establish the Fund for Developing Service Activities;

- Establishing the Supplementary Income Fund: The unit decides on the level of contribution to the Supplementary Income Fund (without a cap on contributions);

- Establishing a maximum Reward Fund and Welfare Fund not exceeding three months' salary and wages implemented in the year by the unit;

- Establishing other funds as prescribed by law;

- The remaining surplus revenue after establishing the required funds as prescribed is supplemented to the Public Service Development Fund.

b) Using Funds

- Development Fund for Public Service Activities: For investment in constructing physical facilities, purchasing equipment and working tools; developing operational capacity; applying scientific and technological progress; training and enhancing professional skills for employees within the unit; contributing capital to joint ventures and collaborations with organizations and individuals both domestically and internationally (for units assigned capital according to regulations) to organize service activities consistent with their functions and tasks and other expenditures (if any).

- Supplementary Income Fund: To supplement income for employees within the year and reserve supplementary income for employees in the following year in cases where income sources decrease.

The supplementation of income for employees within the unit shall be carried out based on the principle of linking quantity, quality, and effectiveness of work. The additional income coefficient for leadership positions in public service organizations shall not exceed twice the average additional income coefficient implemented for employees within the unit.

- Reward Fund: To award regular and extraordinary rewards to collectives and individuals within and outside the unit (outside the reward system stipulated by the Law on Encouragement and Rewards) based on the effectiveness of work and contributions to the unit's activities. The level of reward is determined by the head of the unit according to the internal expenditure regulation of the unit.

- Welfare Fund: For building and repairing welfare facilities; funding collective welfare activities for employees within the unit; providing emergency assistance to employees, including those retiring or losing their health; additional funding for employees implementing staff reduction.

c) The specific amount allocated to each fund as stipulated in Point a Clause of this Article and the use of these funds shall be decided by the head of the unit according to the internal expenditure regulation and must be publicly disclosed within the unit.

Article 13. Financial Autonomy for Public Service Organizations Self-Supporting Regular Expenditures

1. Sources of finance for the unit

a) Revenue from public service activities, including state budget funds assigned for purchasing public services at cost prices;

b) Revenue from fees according to laws on fees and charges that are retained for expenditure as prescribed (the portion retained for regular operations and procurement, major repairs of equipment and assets serving fee collection work);

c) Other revenues as prescribed by law (if applicable);

d) State budget funds allocated for non-regular tasks specified in Point d Clause 1 Article 12 of this Decree (if applicable);

đ) Borrowed capital, aid, and grants as prescribed by law.

2. Utilization of Financial Resources:

a) Regular Expenditure: The unit may independently utilize financial resources assigned for autonomy as stipulated in Points a, b (the portion retained for regular operations) and c Clause 1 of this Article to cover regular expenditure as prescribed in Point b Clause 2 Article 12 of this Decree;

b) Non-Regular Task Expenditure: The unit shall expend according to the provisions of the State Budget Law and current laws for each source of funds specified in Points b (the portion retained for procurement, major repairs of equipment and assets serving fee collection work), d and đ Clause 1 of this Article.

3. Distribution of Annual Financial Results: As stipulated in Clause 3 Article 12. Specifically, the establishment of the Supplementary Income Fund shall not exceed three times the salary grade, rank, position fund and wage allowances prescribed by the State.

Article 14. Financial Autonomy for Public Service Organizations Partially Self-Supporting Regular Expenditures (due to service fees not fully covering costs, commissioned by the State to provide public services at prices and fees not fully covering costs)

1. Sources of finance for the unit

a) Revenue from public service activity operations;

b) Revenue from fees according to laws on fees and charges that are retained for expenditure as prescribed (the portion retained for regular operations and procurement, major repairs of equipment and assets serving fee collection work);

c) State budget support for the unstructured cost component in service fees;

d) Other revenues as prescribed by law (if applicable);

đ) State budget allocation for implementing non-regular tasks specified in Point d Clause 1 Article 12 of this Decree (if applicable);

e) Grants and donations as prescribed by law.

2. Utilization of Unit Financial Resources

a) Regular Expenditure: The unit may independently utilize financial resources assigned for autonomy as stipulated in Points a, b (the portion retained for regular operations), c and d Clause 1 of this Article to cover regular expenditure. Certain expenditure items are regulated as follows:

- Salary Expenditure: The unit pays salaries according to the salary grade, rank, position and allowances prescribed by the State for public service organizations. When the State adjusts salaries, the unit self-funds the additional salary increase from the prescribed sources; if insufficient, the State budget supplements the difference.

- Operational and Management Expenditure: Based on assigned tasks and financial capacity, the unit decides on the operational and management expenditure levels, but the maximum shall not exceed the level prescribed by the competent state authority.

b) Non-Regular Task Expenditure: The unit expends according to the provisions of the State Budget Law and current laws for each source of funds specified in Point b (the portion retained for procurement, major repairs of equipment and assets serving fee collection work), đ and e Clause 1 of this Article.

3. Distribution of annual financial results

a) Annually, after fully accounting for all expenses, paying taxes and other payments to the State budget (if applicable), the surplus revenue over regular operation expenses (if any), the unit may use in the following sequence:

- Allocate a minimum of 15% to establish the Development Fund for Public Service Activities;

- Establish an Additional Income Fund up to twice the salary grade, rank, position fund and other allowances prescribed by the State;

- Establish the Reward Fund and Welfare Fund up to two months' worth of actual wages and remuneration earned by the unit in the year;

- Establishing other funds as prescribed by law;

- The remaining surplus revenue after establishing the required funds as prescribed is supplemented to the Public Service Development Fund.

In cases where the surplus revenue equals or is less than one time the actual salary grade, rank, position fund of the unit in the year, the unit may decide to use in the following sequence: Establish the Supplementary Income Fund; Development Fund for Public Service Activities, Reward Fund, Welfare Fund, Other Funds (if any).

b) The specific amount allocated to each fund as stipulated in Point a Clause of this Article and the use of these funds shall be decided by the head of the unit according to the internal expenditure regulation and must be publicly disclosed within the unit. The expenditure from these funds shall be implemented according to Point b Clause 3 Article 12 of this Decree.

Article 15. Financial autonomy for public service units funded by the State for regular expenses (based on functions and tasks assigned by competent authorities, without revenue sources or with low revenue sources).

1. Sources of finance for the unit

b) Other revenues as prescribed by law (if any);

b) Other revenues (if any);

c) State budget funds allocated to implement non-recurring tasks as stipulated in Point d Clause 1 Article 12 of this Decree (if any);

d) Grants and donations in accordance with the law.

a) Regular expenditures: The unit may use the financial resources allocated under points a and b, Clause 1 of this Article for regular expenditures. Some expenditure items are stipulated as follows:

a) Regular expenditures: The unit may use the financial resources for self-management as specified in Points a and b Clause 1 of this Article for regular expenditures. Certain expenditure items are defined as follows:

- Salary payments: The unit pays salaries according to the salary scale, grade, position, and additional allowances prescribed by the State for public service units. When the State adjusts salaries, the unit must ensure increased salary payments from available sources, including supplementary state budget funds;

- Professional activity costs and management costs: The unit determines the expenditure levels but shall not exceed the maximum levels set by the competent state authority;

b) Non-recurring task expenditures: The unit shall expend according to the provisions of the State Budget Law and current laws for each source of funds as specified in Points c and d Clause 1 of this Article.

a) Annually, after covering all expenses, paying taxes, and other payments to the State budget (if any), any savings from regular expenditures (if any) shall be used in the following order:

a) Annually, after covering all expenses, paying taxes, and other payments to the state budget (if any) as prescribed, any savings from regular expenditures (if any), the unit may use in the following sequence:

- Establish a Supplementary Income Fund up to a maximum of one times the salary scale, grade, position, and allowances prescribed by the State;

- Establish a Reward and Welfare Fund up to a maximum of one month's average salary or wage of the unit during the year;

- Establishing a Reward Fund and Welfare Fund up to a maximum of one month's salary and wages implemented during the year by the unit;

- Establishing other funds as prescribed by law;

In cases where revenue exceeds expenditures by more than one time the annual salary scale, grade, and position, the unit may determine the amount to be allocated to the funds in accordance with its internal expenditure regulations.

b) The specific amount allocated to each fund as stipulated in Point a Clause of this Article and the use of these funds shall be decided by the head of the unit according to the internal expenditure regulation and must be publicly disclosed within the unit. The expenditure from these funds shall be implemented according to Point b Clause 3 Article 12 of this Decree.

1. Opening Transaction Accounts

a) Economic public service units and other public services may open deposit accounts at commercial banks or the State Treasury to reflect income and expenditure from public service activities not using the State budget;

a) Public service units may open deposit accounts at commercial banks or State Treasury to reflect revenues and expenditures from public service activities not using state budget funds. Interest earned on deposits is a revenue source for the unit and is added to the Development Fund for Public Services or other funds as prescribed by law, and shall not be added to the Supplementary Income Fund;

b) Funds from the state budget, revenues from public service activities using state budget funds, and fees collected under the law on fees and charges, the unit opens accounts at the State Treasury to reflect these amounts.

Economic public service units and other public services with service activities may borrow from credit organizations and raise capital from staff within the unit to expand and improve the quality of public service activities, organize service activities consistent with their functions and tasks. Specifically, economic public service units and other public services self-funding regular expenditures and investment may borrow to invest in and construct facilities according to point a, Clause 2, Article 12 of this Decree.

Public service units engaged in services may borrow from credit institutions and raise capital from staff within the unit to expand and improve the quality of public service activities, organize service operations consistent with their functions and tasks. Specifically, public service units that self-fund regular expenditures and investments may borrow and raise capital to invest in and construct facilities as stipulated in Point a Clause 2 Article 12 of this Decree. When borrowing and raising capital, public service units must have feasible financial plans, bear responsibility for repaying loans and interest as prescribed, and be accountable under the law for the effectiveness of borrowing and raising capital.

Article 17. Financial obligations, state asset management, and internal expenditure regulations of public service units

1. Public service units engaged in service activities shall register, declare, and pay taxes and other budget revenues (if applicable) in accordance with the provisions of the law.

2. Public service units shall be responsible for managing and using state assets in accordance with the provisions of the law on the management and use of state assets.

3. Public service units shall be responsible for establishing and promulgating Internal Expenditure Regulations, to be submitted to the superior supervisory authority. Within fifteen days from the date of receipt of the Regulations, if the Regulations contain provisions that are inconsistent with the national regulations, the superior supervisory authority shall issue a written opinion requesting the unit to adjust them accordingly.

After the aforementioned period, if the superior supervisory authority does not provide comments, the unit shall implement the Regulations and simultaneously submit them to the same-level financial authority for monitoring and supervision, and the State Treasury where the unit has an account shall use them as a basis for controlling expenditures.

Section 4

ESTABLISHING AND IMPLEMENTING BUDGETS FOR REVENUE AND EXPENDITURE

Article 18. Budget Preparation

1. Budget preparation for public service units self-financing regular expenses and investment costs; public service units self-financing regular expenses

a) Annually, based on the results of service quantity and volume implementation; the revenue and expenditure situation of public service provision activities and other services in the current year; requirements and tasks for the planning year, the unit shall plan the quantity and volume of services and prepare the revenue and expenditure budget to report to the superior supervisory authority;

b) For public services ordered by the State: Annually, based on the unit price, quantity, and volume of public services ordered according to the guidelines of the Ministry, central agencies, provincial People's Committees, the unit shall prepare the budget and submit it to the superior supervisory authority as prescribed.

2. Budget preparation for public service units partially self-financing regular expenses (due to service fees not covering full costs, ordered by the State to provide public services at prices and fees that do not cover full costs): Based on the implementation situation of the current year, tasks for the planning year, the unit shall plan the quantity and volume of public services and prepare the revenue and expenditure budget (including the portion of state budget funds supporting due to service fees not covering full costs) to report to the superior supervisory authority as prescribed.

3. Budget preparation for public service units fully financed by the State (based on functions and tasks assigned by competent authorities, without revenue sources or low revenue): Based on the implementation situation of the current year, tasks assigned by competent authorities for the planning year, the number of staff approved by competent authorities, and the current expenditure system, the unit shall prepare the revenue and expenditure budget to report to the superior supervisory authority as prescribed.

4. Revenue and expenditure budget preparation in accordance with the law on fees and charges, and non-recurring tasks as stipulated by the State Budget Law.

5. Annually, based on the revenue and expenditure budgets prepared by public service units, the superior supervisory authority shall be responsible for reviewing and consolidating the revenue and expenditure budgets of the units to submit to the financial authority and relevant agencies as prescribed by the State Budget Law.

Article 19. Allocation and Budget Transfer

1. The allocation and budget transfer from the superior management agency to public service units shall be carried out in accordance with the provisions of the State Budget Law.

2. Based on the schedule for calculating public service fees as stipulated in Clause 1, Article 10 of this Decree, the superior management agency shall place orders for public service units that self-fund their regular expenses and investment expenses, and public service units that self-fund part of their regular expenses (due to public service fees not covering all costs, the State places orders and assigns tasks for providing public services at prices and fees that do not fully cover costs).

3. For public service units where regular expenses are guaranteed by the State (based on functions and tasks assigned by the competent authority without revenue sources or low revenue): The superior management agency shall allocate a stable budget for a period of three years and adjust it when the State changes tasks or policies according to regulations.

Chapter III

IMPLEMENTATION

Article 20. Granting Autonomy to Public Service Units

1. Public service units shall develop an autonomy plan suitable for the unit's plans and actual conditions, report to the superior management agency for approval, after receiving written comments from the financial agency providing such comments.

2. The granting of autonomy and responsibility to public service units as stipulated in Chapter II of this Decree shall be stable for a period of three years. In cases where revenue or tasks of the unit change, affecting the degree of financial autonomy, the unit shall report to the superior management agency to consider adjusting the degree of autonomy before the deadline.

Article 21. Conditions, Contents, and Requirements for Public Service Units to Apply Financial Mechanisms Similar to Enterprises

1. Public service units that self-fund regular expenses and investment expenses may apply financial mechanisms similar to enterprises (a limited liability company wholly owned by the State), provided they meet the following conditions:

a) Engaging in public services with high socialization conditions, where the State does not provide subsidies;

b) Service prices cover all costs (including depreciation of fixed assets);

c) Being recognized by the state for asset value and capital allocation according to laws on state asset management and utilization;

d) Accounting in accordance with accounting standards applicable to enterprises.

2. Contents of applying financial mechanisms similar to enterprises

a) Being determined capital stock and ensuring capital preservation;

b) Being allowed to borrow, raise, and invest capital outside the unit in accordance with the law;

c) Managing, using, and depreciating fixed assets in accordance with regulations applicable to enterprises;

d) Managing income, expenses, and profit distribution; implementing accounting and statistical systems applicable to enterprises.

3. Public service units meeting the conditions set forth in Clause 1 of this Article shall develop a proposal to apply financial mechanisms similar to enterprises, report to ministries, central agencies, and localities for approval according to the level of authority.

Costs for developing the proposal and other directly related costs for applying financial mechanisms similar to enterprises shall be guaranteed by the state budget according to the level of authority.

4. Ministries, central agencies shall decide on public service units under their direct administration applying financial mechanisms similar to enterprises, after receiving written comments from the Ministry of Finance, provincial People's Committees (or subordinate agencies according to the level of authority) deciding on public service units under their direct administration applying financial mechanisms similar to enterprises, after receiving written comments from local financial agencies.

Based on the provisions of Clause 1 of this Article, ministries, central agencies, and provincial People's Committees within their scope of authority shall instruct public service units to review and develop schedules for public service units to meet the conditions for applying financial mechanisms similar to enterprises.

Article 22. Responsibilities of Ministries, Central Agencies, and Provincial People's Committees

1. Based on the provisions of this Decree:

a) The Ministries of Education and Training, Labor - Invalids and Social Affairs, Culture, Sports and Tourism, Information and Communications, Health, Science and Technology shall take the lead and coordinate with the Ministry of Finance, the Ministry of Home Affairs, and other relevant ministries and agencies to develop and submit to the Government for amendment and issuance of a Decree stipulating the self-management mechanism of public service units in each sector.

b) The Ministry of Finance shall take the lead and coordinate with the Ministry of Home Affairs and other relevant ministries and agencies to develop and submit to the Government for issuance of a Decree stipulating the self-management mechanism of public service units in the economic public service sector and other public services.

2. Ministries, central agencies, and provincial people's committees shall, based on their scope of management, functions, and tasks assigned within their authority, review, amend, supplement, or issue new criteria, quality standards, supervision mechanisms, evaluation, and quality certification of public service provision; effectiveness of public service unit operations; conduct inspections, checks, and impose penalties for violations in public service provision activities; and implement other contents regarding state management responsibilities for public services and public service units as prescribed in Article 4 of this Decree.

3. In 2015, the Ministers and Heads of Central Agencies shall be responsible for:

a) Submitting to the Prime Minister for issuance of the Master Plan for the network of public service units by sector and field; the list of public services using state budget funds under their management.

b) Issuing according to their authority economic and technical norms applicable in the fields of public services managed by the State, serving as the basis for setting prices for public services that cover costs and the provisions at Article 4 of this Decree.

4. In 2015, the Ministry of Home Affairs shall be responsible for guiding the establishment and operation of Management Councils; guiding principles and methods for determining job positions; authorities, procedures, and formalities for deciding the number of job positions; and guiding public service units that have not yet established job positions and staff structures according to occupational titles to determine the number of employees based on average staffing levels from previous years.

5. The Ministry of Finance shall be responsible for adjusting the budget allocation method for public service units in accordance with the financial self-management mechanism prescribed in this Decree.

6. The Chairpersons of Provincial People's Committees within their jurisdiction shall be responsible for issuing in 2015: The Master Plan for the network of public service units by field; the list of public services using state budget funds; economic and technical norms applicable in the fields of public services, serving as the basis for setting prices for public services that cover costs and the provisions at Article 4 of this Decree.

Article 23. Responsibilities of Heads of Public Service Units

1. Shall be responsible before the direct supervisory agency and the law for decisions made in exercising autonomy over tasks, organizational structure, personnel, and finance of the unit.

2. Ensure the quality of public services according to the criteria and standards prescribed by competent state agencies.

3. Develop and implement internal expenditure regulations, asset usage regulations, grassroots democracy regulations, financial transparency regulations, and internal audit regulations as prescribed.

4. Organizing and implementing the management and use of civil servants in accordance with the laws on civil servants.

5. Managing, preserving, and developing state capital and assets; implementing accounting, statistics, information, reporting, and auditing systems in accordance with regulations.

6. Submit to the competent authority for decision-making on the establishment and definition of the functions, tasks, powers, and organizational structure of the Management Board as prescribed.

7. Implement the provisions on transparency and accountability for the activities of the unit as prescribed by law.

Article 24. Effective Date

1. This Decree takes effect from April 6, 2015, and replaces Decree No. 43/2006/NĐ-CP dated April 25, 2006, of the Government on the rights of self-management and self-responsibility for the implementation of tasks, organizational structure, staffing, and finance for public service units; serving as the basis for formulating a Decree stipulating the self-management mechanism of public service units in each sector.

2. Until a Decree stipulating the self-management mechanism of public service units in specific sectors is issued or amended as prescribed in Clause 1 of this Article, public service units in each sector shall continue to implement the self-management mechanism as prescribed in Decree No. 43/2006/NĐ-CP dated April 25, 2006, of the Government on the rights of self-management and self-responsibility for the implementation of tasks, organizational structure, staffing, and finance for public service units; Decree No. 115/2005/NĐ-CP dated September 5, 2005, of the Government on the self-management and self-responsibility mechanism of public scientific and technological organizations; Decree No. 96/2010/NĐ-CP dated September 20, 2010, of the Government amending and supplementing certain articles of Decree No. 115/2005/NĐ-CP of the Government; and Decree No. 85/2012/NĐ-CP dated October 15, 2012, of the Government on the operational mechanism and financial mechanism for public health service units and pricing of medical examination and treatment services provided by public medical facilities.

3. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of provincial People's Committees under the direct jurisdiction of the central government shall be responsible for implementing this Decree./.