Circular No. 47-TC/CĐTC guides the financial management regime for vocational training centers and job introduction centers supported by the state budget.

CIRCULAR

NUMBER 47-TC/CĐTC OF JUNE 26, 1993 OF THE MINISTRY OF FINANCE GUIDING THE FINANCIAL MANAGEMENT REGIME FOR VOCATIONAL TRAINING CENTERS AND JOB INTRODUCTION CENTERS SUPPORTED BY THE STATE BUDGET

Implementing Resolution No. 120/HĐBT dated April 11, 1992 of the Council of Ministers (now the Government) on the policy, direction, and measures to address employment in the coming years;

Pursuant to the Accounting and Statistics Ordinance issued by the State Council on May 20, 1998; Decree No. 25/HĐBT dated March 18, 1989 of the Council of Ministers promulgating the Regulations on the Organization of State Accounting and other current financial management regulations;

The Ministry of Finance guides the implementation of financial management for vocational training centers and job introduction centers supported by the state budget as follows:

I. GENERAL PROVISIONS

1. Vocational training centers and job introduction centers (employment promotion centers, centers established according to Government Resolutions 05/CP, 06/CP) under the scope of this Circular are centers established by provincial/municipal People's Committees, relevant ministries, central-level mass organizations (with authority) based on the spirit of Resolution No. 120/HĐBT dated April 11, 1992, Decision No. 176/HĐBT dated October 9, 1990 of the Council of Ministers following the model attached to document No. 1206/LĐTBXH-CS dated October 25, 1990, along with subsequent guidance from the Ministry of Labor, Invalids, and Social Affairs, and receiving state budget support.

2. State budget capital supporting vocational training and job introduction centers includes capital for constructing physical facilities of the centers (including workshops, office buildings), purchasing equipment to serve vocational training and job introduction activities funded by local budgets, ministry budgets, and central government budgets; funding to support salaries and management fees during the initial phase (if applicable).

3. Financial management for vocational training and job introduction centers aims to create conditions for these centers to effectively receive and utilize state capital; fulfill assigned functions and tasks; and assume their role in vocational training, addressing employment, and social responsibilities related to employment in their respective areas.

During operation, the centers must implement economic accounting, balance revenue and expenditure, self-finance operational expenses, and fully perform tax obligations and other payments to the state budget as stipulated.

4. Financial management for the centers mentioned above is regulated as follows:

- Centers established by localities are managed by the Provincial Department of Finance and Price;

- Centers established by relevant ministries, central-level mass organizations are managed by the Financial Departments of those ministries and organizations.

Specific contents and indicators of management follow current regulations on financial management for economic-accounting public institutions. Periodically, Provincial Departments of Finance and Price, Financial Departments of ministries, and central-level mass organizations must report to the Ministry of Finance for consolidation, monitoring, and unified guidance.

II. SPECIFIC CONTENTS OF MANAGEMENT

1. Regarding capital and responsibility for preserving capital of the centers.

a) State budget capital includes:

- Capital provided by local budgets, ministry budgets, central-level mass organizations for constructing physical facilities and purchasing equipment (including office buildings, workshops, structures...);

- Central government budget support capital includes:

+ Initial construction capital for technical infrastructure (if applicable);

+ Capital from the employment settlement fund for purchasing equipment to serve vocational training and job introduction activities;

+ Capital received from domestic and international aid programs;

+ Additional capital from the centers' own operations.

b) Responsibility for preserving capital:

The centers must be responsible for preserving all state budget capital and additional capital.

Determination of the level of capital preservation for each type of capital is carried out according to existing state documents.

In cases where equipment is no longer suitable for vocational training requirements or needs to be updated to meet new occupational demands, the centers may only proceed after approval from the supervising agency and the financial management agency. The conversion must ensure the preservation of the value of the allocated capital, and in cases where assets are formed from national employment settlement funds, reports must be made to the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs.

Annually, the centers must report to the managing financial agencies to verify and re-determine the capital that must be preserved as of December 31. The preserved capital amount reported for the year serves as the basis for verifying capital preservation levels in subsequent years.

2. Management of center revenues.

Regular revenues of the centers include:

- Revenues from vocational training services;

- Revenues from job introduction services, career counseling, and labor services;

- Revenues from selling products associated with vocational training processes (practice, hands-on training);

- Revenues from salary and management fee support funds provided by higher-level budgets during the initial phase (if applicable);

- Revenues from production and processing activities utilizing unused equipment capacity in vocational training and job introduction;

- Revenues from other products and services (if applicable).

The centers must comply with the guidance of state management agencies regarding the aforementioned revenues (if applicable) and accurately record and track each revenue source.

3. Management of center expenditures.

Center expenditures include:

- Expenditures for remunerating trainers and instructors (under contracts) not included in the center's staffing;

- Depreciation of fixed assets as stipulated in Decision No. 507 TC/ĐTXD dated July 22, 1986, and Circular No. 33 TC/CN dated September 1, 1989, and Circular No. 33 TC/CN dated July 31, 1990 of the Ministry of Finance;

- Expenditures for regular maintenance of fixed assets;

- Expenditures for job introduction services;

- Raw material, fuel, and power costs for trial production and practical training during vocational training and learning;

- Costs of raw materials, fuel, power, and labor for producing other goods and services through utilization of equipment capacity (if applicable).

- Administrative expenses:

+ For salaries and contributions to health insurance and social insurance for staff of the Center in accordance with State regulations for public service units;

+ Other administrative management expenses.

- Expenses to fulfill obligations to the State Budget.

In principle, all expenditures must be carried out in accordance with financial management regulations applicable to economic accounting public service units and must comply with the established standards and norms set by the State. In cases where there are no established standards and norms, the unit must develop them together with its financial plan for review and supervision by the supervising authority and the financial management agency.

4. Financial obligations of the Vocational Training and Employment Introduction Center:

- The Vocational Training and Employment Introduction Center, supported by the State, is responsible for implementing social tasks on its territory according to State policies in various forms such as waiving or reducing tuition fees, training fees, employment introduction services, or providing scholarships and training fees for social policy beneficiaries. The implementation of these social tasks is ensured by the Center's financial capacity based on the principle of revenue covering expenses, with no supplementary funding from the State Budget under any circumstances.

The Center has the obligation to pay taxes and other revenues as stipulated by current State regulations.

- Initially, the basic depreciation reserve of assets formed by State Budget capital and income generated from State Budget capital retained by the Center for the purpose of reinvestment and additional asset acquisition to serve vocational training and training activities shall be reported to the financial management agency for knowledge and monitoring to increase the corresponding State Budget capital.

5. Utilization of surplus revenue in the Center's operations.

The financial result of the Center's operations is the difference between revenues and incurred expenses in the year. The utilization of this result is regulated as follows:

- At least 35% should be allocated to establish a fund for developing vocational training activities to enhance the Center's operational capacity; to invest in additional equipment to expand training scale, introduce new trades suitable to local requirements, broaden employment introduction scope, and implement social policies for priority groups;

- Establish a reward fund and welfare fund for Center staff;

Specific ratios are determined by the financial management agency and the supervising authority in accordance with the general guidelines of the State regarding the establishment of funds.

Strictly prohibit the inclusion of these funds in operating costs or using the results of the Center's operations to support funding or increase income for the supervising authority.

III. IMPLEMENTATION

1. Based on management requirements and the contents outlined in this Circular, financial agencies authorized to manage (local finance and price departments, financial agencies of ministries and sectors, mass organizations, people's associations) need to immediately specify and implement the management of Centers to ensure they operate correctly, effectively, and integrate this management work into routine practices starting from January 1993.

2. Centers and financial agencies authorized to manage must regularly report to supervising authorities and initial capital-providing financial agencies on the results of their operations and the use of capital at their units.

Initially, it is necessary to immediately inspect the use of central government budget capital provided for support, handle any expenses not in line with approved projects, concentrate equipment for vocational training and employment introduction activities, approve final accounts, and report results to the Ministry of Finance.

3. This Circular takes effect from January 1, 1993. During implementation, if any difficulties arise, please reflect them to the Ministry of Finance for consideration and appropriate supplementation or amendment.