JOINT CIRCULAR No. 30/2000/TTLT-BTC-UBTDTT Circular guiding financial management regulations for non-state sports facilities

CIRCULAR

JOINT CIRCULAR OF THE MINISTRY OF FINANCE - SPORTS MANAGEMENT COMMITTEE
No. 30/2000/TTLT/BTC-UBTDTT dated April 24, 2000
GUIDELINES ON THE FINANCIAL MANAGEMENT REGIME FOR NON-GOVERNMENTAL ESTABLISHMENTS OPERATING IN THE FIELD OF SPORTS
ACTIVITIES IN THE FIELD OF SPORTS

Pursuant to Decree No. 73/1999/NĐ-CP dated August 19, 1999 of the Government on policies encouraging socialization for activities in the fields of education, healthcare, culture, and sports;

To unify financial management work for non-governmental units operating in the field of sports, the Ministry of Finance and the Sports Management Committee issue the following guidelines on financial management:

PART I - GENERAL PROVISIONS

1- Non-governmental establishments operating in the field of sports are units established and operated with the aim of mobilizing society's participation and contributions to the development of the sports cause.

2- Non-governmental sports establishments operate under the principle of not pursuing commercialization and self-financing. During their operation, if there is a surplus of income over expenses, the establishment may allocate additional funds for infrastructure enhancement, establish reward and welfare funds to improve the material and spiritual life of employees.

3- Non-governmental sports establishments must organize financial management and accounting records in accordance with each type as prescribed by the State, subject to inspection and supervision by competent state agencies, and open accounts at commercial banks or state treasuries for transactions.

4- Non-governmental sports establishments are entitled to preferential policies for establishments implementing socialization as stipulated in Circular No. 18/2000/TT-BTC dated March 1, 2000 of the Ministry of Finance "Guidelines on certain provisions of Decree No. 73/1999/NĐ-CP of the Government dated August 19, 1999 on financial regimes encouraging non-governmental establishments in the fields of education, healthcare, culture, and sports".

PART II - SPECIFIC PROVISIONS

I. FORMS OF NON-GOVERNMENTAL SPORTS ESTABLISHMENTS

1/ Forms of establishments

a- Non-governmental sports establishments can be organized in the following forms:

- Sports clubs

- Sports training halls, sports competition venues

- Sports stadiums

- Swimming pools (swimming tanks)

- Outdoor competition areas

- Sports entertainment and recreation zones

- Sports medical centers

- Sports centers

- Race tracks

- Comprehensive sports palaces

b- The above non-governmental sports establishments operate in three forms:

- Semi-public sports establishments

+ Semi-public sports establishments are established based on cooperation between state organizations and non-state organizations, individuals from all economic sectors within the country to form new establishments or transfer all public infrastructure assets for joint investment in infrastructure, equipment, and management operations according to the law.

+ Public sports establishments with semi-public components involve cooperation between state organizations and non-state organizations, individuals from all economic sectors within the country to build and upgrade part of the public infrastructure and manage the semi-public operations according to the law.

- Privately established sports establishments: These are establishments set up by organizations, funded by non-state budget capital (capital from organizations, collectives, individuals), and managed and operated according to the law.

- Private sports establishments: These are establishments established and managed by individuals or households according to the law.

Conditions for establishing non-state sports facilities shall be in accordance with guidelines issued by the Sports Committee.

2/ Contents of Activities

Non-state sports facilities shall carry out the following activities:

- Serving the public to exercise and improve health

- Contributing to the discovery and organization of training for sports talents

- Training provincial, city, sector teams; national team candidates.

- Training instructors, coaches, referees

- Consulting contracts on organization, refereeing, supervision of competitions

- Leasing infrastructure for training and competition purposes

- Treating injuries for athletes, coaches

- Providing accommodation and transportation conditions for athletes, coaches, referees, sports officials...

II. FINANCIAL MANAGEMENT FOR NON-PUBLIC SPORTS FACILITIES

1/ Sources of Operating Funds

- State budget funds: For semi-public facilities, state financial contributions include:

+ The value of initial and new infrastructure investments during operation.

+ Amounts retained from taxes paid to the state budget.

- Donations, grants, support, gifts from organizations and individuals both domestically and internationally;

- Capital contributions from organizations and individuals for new construction, renovation, expansion, and upgrading of physical assets;

- Loans from banks and credit institutions (if applicable);

2/ Revenue and Expenditure Items

a/ Revenue Items

- Revenues at the facility:

+ Rental income from leasing infrastructure for training and competition;

+ Ticket sales revenue for training and competition;

+ Tuition fees and registration fees for training activities;

+ Service charges;

+ Interest income from bank deposits;

+ Proceeds from the liquidation of assets belonging to the facility's capital;

- Other revenues (if any);

b/ Expenditure Items

- Salaries, wages, bonuses, and contributions according to prescribed regulations such as social insurance, health insurance, and trade union fees for employees;

- Administrative management expenses (official duties fees, conference fees, travel expenses...);

- Expenses for operational activities and training;

- Purchases and repairs of fixed assets and equipment;

- Rent for infrastructure (if applicable);

- Hiring of domestic and foreign experts;

- Depreciation of fixed assets;

- Loan interest payments and capital contribution returns;

- Payment of taxes to the state;

- Other expenses (if any);

3/ Financial Management System

3.1- For Semi-Public Facilities:

a- Management and use of capital and assets:

The financial management of semi-public sports units shall clearly distinguish and publicly disclose state budget investment sources and external funding sources.

- The state's contribution includes monetary capital, materials, goods, fixed assets (buildings, land, machinery, equipment, transport means, other assets...) provided initially and transferred during operations. Semi-public sports facilities must organize an inventory and evaluation of all state contributions, submit it to the supervising authority for review, and then send it to the financial authority at the same level to process the transfer of state assets and capital to the semi-public sports facility. The inventory, re-evaluation, and transfer of assets, materials, and capital must comply with current legal regulations. Annually, semi-public facilities must conduct an inventory and re-evaluation of asset values, report to the financial authority at the same level, and clearly analyze additional assets from state contributions retained by the unit.

- Operating funds allocated by the state budget to implement programs, goals, research topics, and projects must be managed and utilized according to the approval of the competent authority. Quarterly progress reports on fund usage and expenditures must be submitted to the higher-level managing authority.

- Capital contributions from non-state organizations, individuals from all economic sectors, and loans must be managed and used for their intended purposes according to the approved project by the competent authority.

- The transfer, liquidation, mortgage, or pledge of assets funded by the state must be decided by the higher-level managing authority after receiving written opinions from the financial authority at the same level. Assets that are not needed or are technologically obsolete can be sold to recover capital and supplement the facility's financial resources. Before selling, a valuation committee must be established, and auctions must be organized in accordance with legal provisions.

- Semi-public facilities have the right and responsibility under the law to transfer, liquidate, mortgage, or pledge assets not funded by the state.

- Depreciation of fixed assets left behind should be used to strengthen the facility's infrastructure. In special cases, the head of the semi-public unit may determine a faster depreciation rate suitable for the service user's payment capacity.

b- Semi-public sports facilities may apply the revenue and expenditure system of public facilities and agreements between sports service users and the facility. Each year, semi-public sports facilities must prepare a budget based on the source of formation; after being approved by the Board of Directors, it must be sent to the higher-level managing authority for consolidation and submission to the financial authority at the same level.

c- Semi-public sports facilities must organize accounting work, prepare budgets, comply with, and report final accounts according to the current financial accounting system.

d- Semi-public sports facilities must regularly inspect and audit financial use; publicly disclose all revenues and expenditures and income distribution to employees within the facility; and report changes in assets according to state capital and external funding sources.

e- The head of the facility is the account holder and is responsible before the Board of Directors and the direct supervising authority for the entire financial management and asset management of the facility.

g- The annual financial results of semi-public sports facilities are determined by the total revenue minus total expenditures of the unit in the fiscal year.

Any surplus of revenues over expenditures in semi-public sports facilities shall be decided by the Board of Directors to allocate to the following items:

- Supplementing the operating capital of the facility;

- Strengthening the facility's infrastructure;

- Rewards and benefits for personnel in the unit and directly cooperating entities;

- Distribution of income from state, collective, and individual contributions; For the retained profit from state contributions, it should be reinvested to strengthen the facility's infrastructure while increasing the state's contribution portion.

3.2- For Private Facilities:

Private sports facilities shall apply the financial management mechanism of semi-public facilities to manage their finances.

Annually, the Board of Directors approves the budget for revenues and expenditures and specifies the ratios for regular expenses and investment expenses; the ratios for expenses on personnel and activities; determines the ratio for interest payments to organizations and individuals participating in capital contributions according to their contribution ratios.

Private sports and physical training facilities must submit quarterly and annual final reports on their revenue and expenditure situations; changes in capital and assets as prescribed by current regulations and such reports must be approved by the Board of Directors.

3.3- For private facilities:

Private facilities are proactive in organizing their operations and are responsible for their financial activities and other activities under the law.

3.4. Financial settlement when the facility is dissolved or declared bankrupt

When a non-state-owned sports and physical training facility declares bankruptcy or dissolution, the financial settlement shall proceed in the following priority order:

- Expenses as prescribed by law for the dissolution and bankruptcy resolution of the facility.

- Debts for salaries, severance pay, social insurance, and other benefits according to collective labor agreements and signed labor contracts.

- Tax debts.

- Debts to creditors listed in the creditor list:

+ If the remaining value of the facility's assets is sufficient to settle all debts owed to creditors, each creditor will be fully paid their debt.

+ If the remaining value of the facility's assets is insufficient to settle all debts owed to creditors, each creditor will only be partially paid their debt according to the corresponding ratio.

- If there is any surplus remaining from the facility's assets after fully settling all creditors' debts, this surplus belongs to:

+ The owner of the facility if it is a private facility.

+ Members of the facility (including the State Budget) if it is a quasi-private or privately established facility.

PART III- IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of issuance.

During implementation, if there are any difficulties, they should be promptly reported to the Ministry of Finance - Sports Administration for review, amendment, and supplementation as appropriate.