Joint Circular No. 462/TT-LB guiding the financial allocation and management regime for provincial, municipal, district, urban district, and town cultural houses.

JOINT CIRCULAR

Guidelines on the financial allocation and management system for provincial, city, district, town, and township cultural houses

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Cultural Houses are centers for socialist cultural education outside schools, organized by the State to direct and guide professional expertise and work methods for Cultural Houses, mass cultural and artistic movements, and organize local activities to serve the spiritual cultural life of the people. The activities of Cultural Houses are diverse and rich, contributing to promoting the creativity of the people in the field of mass culture and art, creating conditions for the people to enjoy organized cultural and artistic activities with the aim of educating and nurturing revolutionary thoughts and emotions, guiding the construction of healthy aesthetics with culture.

In recent years, implementing the reform of economic and social management mechanisms, due to the perception of opposing excessive state support, some localities have not paid sufficient attention to investing in minimum technical infrastructure and have not provided adequate funding for the activities of Cultural Houses, leading to a situation where they pursue business operations to survive, while their proper functions face difficulties and stagnation, neglecting the task of serving the spiritual cultural life of the people at the grassroots level.

To address the above situation, implementing Directive No. 321-CT dated November 27, 1989 of the Chairman of the Council of Ministers on urgent issues in the cultural sector; the Ministry of Culture and Information and the Ministry of Finance provide guidelines on the financial allocation and management system for provincial, city, district, town, and township Cultural Houses as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. Cultural Houses are public service units with the mission to organize cultural activities aimed at enhancing comprehensive knowledge for the people, creating conditions for the masses to appreciate and create cultural values. Therefore, they are provided with state funds to fulfill assigned tasks to serve the spiritual cultural life of the people at the grassroots level.

2. The State allocates annual operating funds to Cultural Houses based on the political tasks assigned and the minimum activity standards specified in Point 1, Section II below, and reasonable regular expenses to ensure that Cultural Houses operate according to their functions effectively.

3. Encourage Cultural Houses to organize cultural activities to attract the masses to participate in organized activities, especially young people and teenagers, and depending on the specific conditions of each locality, different types of activities with various contents and qualities, mobilize the contributions of the people through ticket sales, contracts, and bonuses for staff and collaborators according to the regulations of the State for public service units with income.

4. Annually, in addition to regular operating funds, Cultural Houses are considered for additional capital for construction and development and operational funds from the State budget (central and local) to repair large-scale facilities and purchase equipment to supplement technical infrastructure, creating conditions for the development of mass cultural undertakings, contributing to building the spiritual cultural life of the grassroots population.

II. SPECIFIC PROVISIONS.

A. Based on the nature and characteristics of Cultural House activities, annually, the State budget (central and local) provides regular operating funds including:

1. Providing 100% of costs for organizational structure and professional expenses to implement political tasks of the Party and State (central and local) and organize activities with guidance and work methods, creating conditions for the people to enhance their creative abilities and preserve national cultural traditions.

The method of determining the amount of funds allocated by the State budget is calculated using the following formula:

Amount of funds allocated by the State budget = regular costs for organizational structure + professional expenses (based on activity standards).

a) Regular costs for organizational structure include: - Wages, allowances, and welfare benefits currently applied to state employees. - Administrative management costs.

b) Professional expenses are amounts allocated by the State budget to implement assigned political tasks and activity standards of Cultural Houses. The budget for professional expenses is based on:

+ Political tasks assigned by party committees and governments, such as serving holidays, countering reactionary and decadent culture, serving ethnic minorities in mountainous areas, etc.

+ Annual activity standards of each Cultural House and the content of expense items funded by the State budget for each type of activity according to the activity standards at Points b1 and b2 below:

+ Current financial standards and norms set by the State.

b1. Provincial, city, and special zone Cultural Houses:

b2. District, town, and township Cultural Houses:

2. Provide the difference between higher expenditures and income for activities with a broad dissemination nature, creating conditions for the people to enjoy culture and other guidance to attract the masses, especially young people, to organized activities, contributing to improving the spiritual cultural life of the people, such as classes for cultural and artistic talents, physical education and sports, video screenings, artistic performances, etc. For Cultural Houses in remote mountainous areas and the Mekong Delta, the budget covers 100%; the income generated will be added to the Cultural House's budget.

3. The determination of the annual budget expenditure levels mentioned in points 1 and 2 above for Cultural Houses shall be reviewed by the managing authority and the financial authority based on the annual operational plan of culture and the local budget capacity to submit for approval by the People's Committee and notify the Cultural House. For Cultural Houses in towns, districts, and counties, funding may be provided through the Department of Culture, Information, and Sports for general management or through the town, district, or county budgets.

Specifically for mountainous provinces, particularly border highlands, islands, and deep regions of the Mekong Delta, when considering investment levels, it is necessary to pay attention to creating conditions for cultural, information, and sports activities to reach people in these areas.

4. Local Cultural Houses that organize recreational and entertainment activities with a mass movement nature shall not be considered business activities and therefore are exempt from taxation. If they engage in other business activities, they must pay taxes according to the law.

B. In addition to the regular funding mentioned above, each year, the managing authority and the financial authority shall guide Cultural Houses to prepare plans to request investment capital for construction and repair and operating funds to purchase equipment and major repairs, to be submitted for review and approval by the respective People's Committees.

Based on the approved budget plan, the financial authorities at all levels shall have the responsibility to announce and allocate sufficient funds for new construction, major repairs, purchasing equipment, and operational means.

III. IMPLEMENTATION

1. To ensure that the operations of Cultural Houses align with their assigned functions and tasks, the financial managing authority at the same level needs to submit the budget expenditure estimate for Cultural Houses for approval by the local People's Committee along with the annual local budget approval process. The financial authority should promptly announce the budget expenditure estimate allocated by the local budget at the beginning of the year so that the managing authority can approve activity targets for the Cultural House.

2. Each year, the Departments of Culture, Information, and Sports and the Finance Departments need to coordinate to organize the review of operational plans, revenue and expenditure estimates, and quarterly funding allocation for Cultural Houses to ensure normal operation like other public institutions. The financial authority together with the managing authority has the responsibility to guide and monitor Cultural Houses to comply with current financial management regulations.

IV. EFFECTIVE DATE OF IMPLEMENTATION

1. This Circular takes effect from September 1, 1991, and is uniformly implemented in Cultural Houses at the district, town, and county levels and above that have organizational structures, staffing, and operational locations under the management system of the Ministry of Culture, Sports, and Tourism.

For Cultural Palaces and Cultural Houses of organizations and sectors, the managing authority and the financial authority shall base their specific tasks to study and apply accordingly.

2. During implementation, if there are difficulties or obstacles, localities and Cultural Houses shall send written reports to the two Ministries for research and resolution.