Joint Circular No. 30/2000/TTLT/BTC-UBTDTT guiding financial management regimes for non-state-run establishments operating in physical education and sports.

JOINT CIRCULAR

Guidelines on financial management for non-state-owned establishments operating in the sports sector

activities in the field of physical training and sports

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

In order to unify financial management for non-state-owned units operating in the sports sector, the Ministry of Finance and the Sports Steering Committee issue these guidelines on financial management as follows:

Part I

GENERAL PROVISIONS

1. Non-state-owned establishments operating in the sports sector are entities established and operated with the aim of mobilizing society's participation and contributions to the development of the sports industry.

2. Non-state-owned sports establishments operate under the principle of not being for commercial purposes and self-financing. During their operation, if there is a surplus of income over expenses, the establishment may use the excess to enhance infrastructure, establish reward funds, welfare funds, and improve the material and spiritual living standards of employees.

3. Non-state-owned sports establishments must organize financial management and accounting in accordance with the regulations set by the State, subject to inspection and supervision by competent state agencies, and have accounts opened at commercial banks or state treasuries for transactions.

4. Non-state-owned sports establishments are entitled to preferential policies for those 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 systems encouraging non-state-owned establishments in the fields of education, healthcare, culture, and sports."

Part II

SPECIFIC PROVISIONS

I. FORMS OF NON-STATE-OWNED SPORTS ESTABLISHMENTS

1. Establishment Forms

a. Non-state-owned sports establishments can be organized in the following forms:

- Sports clubs

- Sports training halls, sports stadiums

- Athletic fields

- Swimming pools (swimming tanks)

- Outdoor competition areas

- Sports recreation and entertainment zones

- Sports medical centers

- Sports centers

- Race tracks

- Comprehensive sports palaces

b. The aforementioned non-state-owned 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 convert all public facilities to jointly invest in infrastructure, equipment, and manage all activities 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 upgrade part of the public facility's infrastructure and manage the semi-public component's operations according to the law.

- Privately-established sports establishments: These are establishments founded by organizations and managed according to the law using non-state budget capital (capital from organizations, collectives, or individuals).

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

Conditions for establishing non-state sports facilities in accordance with the guidelines of the Sports Committee.

2/ Content 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 athletic talents

- Training provincial, city, sector teams; national selection teams.

- Training instructors, coaches, referees

- Consulting contracts on organization, refereeing, and supervision of competitions

- Leasing infrastructure for training and competition purposes

- Treating athletes' and coaches' injuries

- Providing accommodation and transportation conditions for athletes, coaches, referees, and 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 tax payments to the state budget.

- Donations, grants, support, and 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 training and competition infrastructure;

+ Ticket sales revenue for training and competition;

+ Tuition fees and registration fees for training activities;

+ Service revenues;

+ Bank interest income;

+ Proceeds from the liquidation of assets financed by 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 experts both domestically and internationally;

- Depreciation of fixed assets;

- Loan interest payments and capital contribution returns;

- Tax payments 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 follows the principle of clearly distinguishing and publicly disclosing state budget investment sources and external funding sources.

- The state's contribution includes monetary capital, materials, fixed assets (buildings, land, machinery, equipment, transportation means, other assets...) provided initially and transferred during operations. Semi-public sports facilities organize asset inventory and evaluation, submit to the supervising authority for review, and then to the same-level finance authority for asset and capital transfer procedures. Asset inventory, revaluation, and transfer must comply with current legal regulations. Annually, semi-public facilities conduct asset revaluation and report to the same-level finance authority, detailing assets supplemented from the state's contribution retained by the unit.

- Funds allocated by the state budget for implementing programs, objectives, research topics, and projects are managed and utilized according to the approval of competent authorities. Quarterly progress reports on fund usage and expenditures are submitted to higher-level management authorities.

- Capital contributions from non-state organizations, individuals from all economic sectors; loans are managed and used for their intended purposes according to approved project plans.

- Transfers, liquidations, pledges, or mortgages of assets funded by the state require approval from higher-level management authorities after receiving written opinions from the same-level finance authority. Unused or outdated assets can be sold to recover capital and supplement the facility's operating funds. Prior to sale, a valuation committee must be established, and auctions conducted in accordance with legal provisions.

- Semi-public facilities have the autonomy and legal responsibility for transferring, liquidating, pledging, or mortgaging assets not funded by the state.

- Depreciation of fixed assets left behind supplements the unit's infrastructure. In special cases, the head of the semi-public unit may determine accelerated depreciation rates suitable for service users' payment capacity.

b- Semi-public sports facilities apply the revenue and expenditure system of public facilities and agreements between sports service users and the facility. Annually, semi-public sports facilities prepare budgets based on revenue sources; after approval by the Board of Directors, they submit them to higher-level management authorities for consolidation and submission to the same-level finance authority.

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

d- Semi-public sports facilities regularly inspect and audit financial use; disclose revenues, expenditures, and income distribution to employees; and report changes in assets sourced from the state and external funding.

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

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

Any surplus revenue over expenditures of semi-public sports facilities is decided by the Board of Directors to allocate to the following items:

- Supplementing the operating capital of the facility;

- Strengthening infrastructure;

- Awards and benefits for personnel and direct partners of the unit;

- Distribution of income from state, collective, and individual contributions; For retained profits from state contributions, they are reinvested to strengthen infrastructure while increasing the state's contribution portion.

3.2- For Private Facilities:

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

Annually, the Board of Directors approves the budget for revenues and expenditures and sets the ratio for regular expenses and investment expenses; the ratio 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 establishments must submit quarterly and annual final reports on their revenue and expenditure situations; changes in capital and assets according to current regulations and such reports must be approved by the Board of Directors.

3.3 For private establishments:

Private establishments 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 establishment is dissolved or declared bankrupt

When a non-state-owned sports and physical training establishment 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 establishment.

- 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 establishment'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 establishment'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 establishment's assets after fully settling all creditors' debts, this surplus belongs to:

+ The owner if it is a private establishment

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

Part III

IMPLEMENTATION PROVISIONS

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

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