JOINT CIRCULAR No. 28-LB/TT GUIDING THE IMPLEMENTATION OF COLLECTIVE DINING SUBSIDIES

JOINT CIRCULAR

Guidelines for Implementing Collective Dining Subsidies

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Pursuant to Directive No. 2546-VP7 dated August 10, 1971, the Prime Minister decided to increase the subsidy for collective dining expenses from 1đ80 per person per month to 2đ80 or 3đ00 per person per month.

The Ministry of Finance and the Ministry of Internal Trade hereby provide guidelines for implementing the above directive as follows.

I. COLLECTIVE DINING SUBSIDIES

1. Increasing the subsidy for state workers, employees, high school and university students, and vocational training students eating at collective dining facilities aims to cover management costs and improve service quality.

- The subsidy rate of 3đ00 per person per month applies to collective dining facilities in cities (Hanoi, Haiphong's inner city), concentrated industrial zones (Thai Nguyen steel complex, Viet Tri, Thac Ba, Nam Dinh industrial zones, and coal mining areas in Quang Ninh) and regions with regional allowances of 10% or more.

- The subsidy rate of 2đ80 per person per month applies to collective dining facilities in other regions.

2. The collective dining facilities mentioned above include:

- Facilities managed by the internal trade sector.

- Facilities managed by agencies, enterprises, and schools.

- Street food stalls such as cooperatives and service groups permitted by the internal trade sector to prepare monthly meals and subject to guidance, inspection, and supervision by the internal trade sector.

3. State workers and employees who work in dispersed conditions and whose number is too small to form a canteen unit, cannot join the nearest agency or enterprise's canteen, and there is no catering shop nearby, may also be subsidized at the rate of 2đ80 - 3đ00 to organize their own meal preparation.

This subsidy does not apply to workers and employees who have family members accompanying them and eating at home.

4. In addition to the state subsidy for collective dining facilities, workers and employees eating at these facilities must contribute 5% of their meal cost to the facility for management expenses.

For high school and university students and vocational training students living in dormitories, this 5% contribution is not required and will be covered by the state budget for the collective dining facility.

5. Families of workers and employees consisting of parents aged 60 and 55 years or older, spouses or partners unable to work without income, and children under 16 years old or under 18 years old if still studying, or disabled children, who were already customers of collective dining facilities before the issuance of this circular, temporarily, in addition to contributing the 5% deducted from their meal cost, only need to pay 1đ per person per month. The difference between the 2đ80 or 3đ00 subsidy for the dining facility and the 1đ contribution will be covered by the state budget for the collective dining facility.

6. The aforementioned subsidies of 2đ80 or 3đ00 shall be paid monthly by agencies, enterprises, or schools with personnel eating at collective dining facilities to the individuals or directly to the dining facility. Receipts from the collective dining facility serve as proof for settlement with the budget.

Budget entries must comply with current regulations, except for retired or unemployed workers due to disability, for whom this subsidy will be borne by the pension fund.

II. CONTENTS OF MANAGEMENT COSTS FOR COLLECTIVE DINING FACILITIES

Management costs for collective dining facilities include:

1. Costs related to salaries, salary supplements, social insurance, welfare, and other benefits for dining facility staff such as child allowances and hardship allowances according to current policies.

2. Management costs: electricity and water bills, sanitation, purchase of small equipment and inexpensive items prone to wear and tear, labor protection equipment, minor repairs to buildings and equipment, stationery, meal tickets, travel expenses, awards, etc.

The following costs are not covered by the management budget of collective dining facilities:

a) Construction and initial equipment costs funded by the state construction investment fund.

b) Major repair costs for buildings and equipment, and purchases of improved equipment and expensive devices for dining facilities, which are covered by the large-scale procurement and repair fund of the agency (for administrative and public institutions) or the employee welfare fund of the enterprise (for enterprises). Schools with production funds can allocate part of it to equip the school's collective dining facility.

III. MANAGEMENT REGULATIONS FOR COLLECTIVE DINING FACILITY EXPENSES

1. General principles:

Management costs for collective dining facilities must not exceed the state subsidy plus the contributions from diners (as stated in Part I).

Collective dining facilities must enhance their sense of responsibility and service spirit, ensuring good nutrition for cadres, workers, and students, improving service and management work to balance revenue and expenditure, providing non-profit services but not incurring losses, and the state budget will not subsidize losses.

Any surplus in the management budget of collective dining facilities can be carried over to the next month or year for continued use, and savings can be used to purchase additional equipment.

Collective dining facilities must separately account for all income and expenditures related to management and maintain accounting records according to the regulations issued by the Ministry of Internal Trade.

2. Budget Estimates and Settlements: (1)

a) Each year, agencies, enterprises, and schools managing collective dining facilities must submit their annual budget estimates for management costs to the supervising department for review.

The supervising departments are responsible for reviewing the budget estimates submitted by the units, consolidating the departmental budgets, and submitting them to the financial authorities at the same level.

The revenue budget for management costs is based on the number of people registered to eat at the collective dining facilities during each period (to calculate the average) and specific collection rates for different categories and regions.

The budget is based on service standards (as stipulated in Circular No. 14-TTg/TN dated February 8, 1969 by the Prime Minister), policies and benefits for dining facilities and their staff, and current spending standards.

For small canteens of certain state agencies whose costs are still included in the agency's budget, they must also prepare a budget for canteen management income and expenditure, which shall be specifically reviewed by the financial department. Due to different conditions and service standards, the subsidy level for these canteens may be lower than the prescribed level (VND2,800 or VND3,000). These canteens need to be reorganized into a collective canteen network by the food service sector (domestic trade) at an early date to integrate them into the general system, thereby creating conditions to improve the quality of meal services for workers and officials.

b) Each month, the collective canteen must prepare a report on the actual income and expenditure of the canteen management budget and submit it to the managing authority. The report must accurately reflect the actual income and expenditure of the canteen, the number of diners and the actual number of meals served in the month.

Every quarter, agencies, enterprises, and schools that manage canteens must prepare a report on the actual income and expenditure of the canteen management budget and submit it to the supervising sector for review, and consolidate and submit it to the financial department and the commerce department at the same level.