Circular No. 22 TC/HCSN provides temporary guidelines on financial management for the Polio Vaccine Production Research Center under the Ministry of Health.

CIRCULAR

PROVISIONAL GUIDELINES ON THE FINANCIAL MANAGEMENT REGIME FOR THE POLIOVAC SCIENCE AND PRODUCTION CENTER SUBORDINATE TO THE MINISTRY OF HEALTH

While there are no specific State guidelines for public service enterprises, to strengthen financial management at the Poliovac Science and Production Center (POLIOVAC), the Ministry of Finance has applied Circular No. 01-TC/HCVX dated January 4, 1994, and Circular No. 25-TC/TCT dated March 28, 1994, regarding provisional financial management regimes for public institutions, mass organizations, and people's associations with revenue-generating activities. After consultation with the Ministry of Health, the Ministry of Finance provides the following provisional financial management guidelines for the Poliovac Science and Production Center:

1- Combating counterfeit goods is the responsibility of all ministries, sectors, People's Committees at all levels, political and social organizations, enterprises, business households, and the entire population.

1. The Poliovac Science and Production Center (POLIOVAC) is a unit subordinate to the Ministry of Health, according to the Ministry of Health’s Decision, the center has the following main tasks:

- Conduct experimental research and apply new technology for vaccine production.

- Produce vaccines and other medical products according to the Ministry of Health’s plan.

2. All vaccine production and legitimate health services activities of the Center must be approved by the competent authority, implement quarterly and annual financial revenue and expenditure plans, comply with inventory management, asset management, pricing, inventory taking, accounting, financial revenue and expenditure reporting, and budget submission regulations currently in effect.

3. The organization of production and service activities of the Center must be reviewed by the Ministry of Health for operational plans, cost plans, product sales plans, etc., and must secure its own capital for operations, ensuring cost coverage without using state budget funds or funds derived from the state budget to cover losses of revenue-generating products and services.

4. Annually, depending on the budget capacity, the State may place orders to purchase certain products from the Center to serve the Expanded Immunization Program and other preventive health programs according to the State’s plan.

5. The selling price of vaccines produced by the Center under contracts placed by the Ministry of Health and national programs benefiting from the state budget will be approved by the Joint Circular of the Ministry of Finance, Ministry of Health, and the Government Price Control Board, and reflected in the annual production contracts between the Ministry of Health and the Poliovac Production Center.

II - SPECIFIC PROVISIONS

1. Sources of operating capital for the Center:

- Initial fixed assets and aid funds of state budget origin transferred to the Center for management and use.

- Capital from joint ventures with production, business, and service establishments in accordance with the law.

- Advance capital from customers placing orders under contracts signed between both parties in compliance with the Economic Contract Law.

- Capital drawn from the unit’s fund and from the results of production and business activities and services.

- Loans from specialized banks in accordance with the State Bank of Vietnam’s regulations.

- Main construction investment capital for the Center provided by the state budget based on assigned tasks and partly from the Center’s own capital.

2. The Poliovac Science and Production Center is entitled to collect the following revenues:

- Revenues from supplying polio vaccines and other medical products to the Ministry of Health and national programs on preventive health care.

- Revenues from providing research, development, and application of biotechnology services, trial production, quality assessment of medical products, and other services within the Center’s management scope to all customers.

- Revenues from economic and scientific contracts independently concluded with other partners according to the State’s disease prevention plan.

- Revenues from joint ventures and collaborations in researching and producing medical products with external partners.

- Revenue from selling waste materials from the main production line (animal carcasses).

- Other revenues permitted by regulations (if any).

3. The Poliovac Science and Production Center is allowed to spend on the following items:

- Salaries and allowances for employees according to current regulations and based on the Center’s and individual employee’s labor outcomes.

- Contributions to social insurance, trade union fees, and health insurance according to current regulations.

- Maintenance and regular repair of fixed assets.

- Raw materials, fuel, and power.

- Depreciation and major repairs of fixed assets according to current fixed asset management regulations.

- Technical books and other scientific literature.

- Tools and safety equipment for biotechnology work.

- Costs for product quality testing and evaluation.

- Costs for researching and testing new methods and technological processes or applying and developing techniques.

- Costs for managing and operating the Center (travel expenses, administrative expenses, other management costs...).

- Costs for scientific and technical consulting and management contract activities.

- Costs for transportation, loading and unloading, and material and equipment storage.

- Allocation of costs for maintaining and growing the monkey population directly serving the polio vaccine production process and the Center’s research activities.

4. Construction investment expenditures:

Implemented according to Decree No. 177/CP dated October 20, 1994, including the following sources:

- State budget investment.

- International organization support.

- Investment capital contributed by units outside the Center for joint ventures.

- Additional construction investment from other lawful sources.

5. Receipts and expenditures related to foreign aid:

Receipts and expenditures related to foreign aid for research and production of polio vaccines and medical products shall be implemented in accordance with Circular No. 22 TC/VT dated March 20, 1995, issued by the Ministry of Finance, "Guidelines on the Management of State Financial Resources for Official Development Assistance."

6. Submission to the State Budget and establishment of funds:

For all the aforementioned production and service activities, the Center is responsible for declaring and paying all taxes according to current tax laws. The remaining amount (after tax payment and profit distribution to joint venture units according to contracts, if applicable) will be distributed as follows:

- 35% to supplement the unit’s capital through state budget revenue and expenditure records.

- Ten percent shall be set aside for a reserve fund to mitigate biological risks in biotechnology, to compensate for biological incidents during vaccine production.

- Fifty-five percent shall be allocated to establish two funds for rewards and welfare benefits; the distribution levels of these funds shall be determined by the head of the unit and the chairman of the trade union, with the reward fund not exceeding three months' basic salary.

7/ Accounting and settlement work:

The Center must maintain accounting books to separately track each business activity, revenue, expenses, and income-expenditure discrepancies. Quarterly and annually, the Center must prepare settlement reports on its business activities and services, comply with the accounting record-keeping system and accounting statements as stipulated in Decision No. 257 TC/CĐKT dated June 1, 1990 issued by the Ministry of Finance; and use invoices and vouchers when buying, selling goods, and providing services in accordance with Circular No. 61 TC/TCT dated July 22, 1993 issued by the Ministry of Finance.

III- IMPLEMENTATION PROVISIONS

- This Circular takes effect from the date of signature.

- During implementation, if there are difficulties or obstacles, the Center shall report to the Ministry of Finance for research and supplementation as appropriate.