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

CIRCULAR

OF THE MINISTRY OF FINANCE

Guidelines for financial management of public health service units with revenue

Vocational Training Centers and Employment 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;

Based on 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 Organizing National Accounting and other current financial management regulations;

The Ministry of Finance guides the implementation of financial management for Vocational Training Centers and Employment Introduction Centers supported by the State Budget as follows:

I. GENERAL PROVISIONS

1. Vocational Training Centers and Employment Introduction Centers (Promotion Centers, Centers established according to Resolutions 05/CP, 06/CP of the Government) under this Circular are Centers established by provincial People's Committees, competent specialized ministries, central agencies of mass organizations (with authority) following the spirit of Resolution No. 120/HĐBT dated April 11, 1992, Decision No. 176/HĐBT dated October 9, 1990 of the Council of Ministers based on 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 supported by the State Budget.

2. The State Budget support for Vocational Training Centers and Employment Introduction Centers includes capital for constructing physical facilities of the Centers (including workshops, office buildings), capital for purchasing equipment serving vocational training and employment introduction provided by local budgets, ministry budgets, and central government budgets; financial support for salaries and management fees during the initial phase (if applicable).

3. Financial management for Vocational Training Centers and Employment Introduction Centers aims to create conditions for these Centers to effectively absorb and utilize State funds; fulfill assigned functions and tasks; take on the role of vocational training, employment resolution, and social responsibilities regarding employment in their respective areas. During operation, the Centers must implement economic accounting, balance income and expenses, self-finance operational costs, and fully perform tax obligations and other payments to the State Budget as stipulated.

4. Financial management for the aforementioned Centers is regulated as follows:

Centers established by localities are managed by Provincial Departments of Finance and Prices;

Centers established by specialized ministries, central agencies of mass organizations are managed by Financial Departments of those ministries, agencies, 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 Prices, Financial Departments of ministries, central agencies, and mass organizations must report to the Ministry of Finance for consolidation, monitoring, and unified guidance.

II. SPECIFIC MANAGEMENT CONTENTS

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

a) State Budget capital includes:

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

Central budget support capital includes:

Initial construction capital for technical facilities (if applicable);

Capital from the job placement fund for purchasing equipment serving vocational training and employment introduction;

Capital received from domestic and international aid programs;

Self-supplemented capital of the Centers derived from Center operations.

b) Responsibility for preserving capital:

Centers must be responsible for preserving all State Budget capital and self-supplemented capital.

Determination of the degree of capital preservation for each type of capital is carried out according to current State documents.

In cases where equipment is no longer suitable for vocational training requirements or needs to be updated to meet new emerging trades, the Centers may only proceed after obtaining permission from the managing authority and the financial management authority. The conversion must ensure the principle of preserving the value of allocated capital, and in cases where assets are formed from the national fund for job placement, reports must be made to the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs.

Annually, Centers must report to the financial management authority to review and reconfirm the capital that must be preserved as of December 31. The preserved capital of the reporting year serves as the basis for reviewing the degree of capital preservation in subsequent years.

2. Management of Center revenues.

Regular revenues of the Centers include:

Revenues from vocational training services;

Revenues from employment introduction services, career counseling, and labor services;

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

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

Revenues from organizing production and processing activities utilizing unused equipment capacity in vocational training and employment introduction;

Revenues from other products and services (if applicable).

Centers must comply with the guidance of the State management agency regarding the above revenues (if applicable) and accurately record and track each revenue source.

3. Management of Center expenditures.

Expenditures of the Centers include:

Payment for training and teaching wages for instructors and cooperators (under contracts) not belonging to the Center's staff.

Depreciation of fixed assets according to 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.

Regular maintenance expenses for fixed assets;

Expenses for employment introduction services;

Raw material, fuel, and power expenses for trial production and practical training during vocational training and learning.

Raw material, fuel, power, and labor cost expenses for producing and processing other products and services utilizing unused equipment capacity (if applicable).

Management expenses:

For salaries and payments for health insurance and social insurance contributions 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 public service economic accounting 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 the local level according to state policies through various forms such as waiving or reducing tuition fees, vocational training fees, employment introduction services, or subsidizing tuition and training fees for social policy beneficiaries. The implementation of these social tasks is ensured by the financial capacity of the Center 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 with state budget capital and income generated from state budget capital retained by the Center for asset renewal and expansion shall be reported to the financial management agency for knowledge and monitoring to record the corresponding increase in state budget capital.

5. Utilization of surplus revenues in the operations of the Center.

The financial results of the Center's activities are the difference between revenues and incurred expenses in the year. The utilization of these results is regulated as follows:

At least 35% should be allocated to establish a fund for developing vocational training activities to enhance the operational capacity of the Center; investing in additional equipment to expand training scale, introduce new trades suitable for local requirements, broaden the scope of job placement services, and implement social policies for priority groups;

Establishing 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 prohibited is the inclusion of such funds in operating costs or using the results of the Center's activities 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 Department of Finance and Price, 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 incorporate this management into routine practice 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 expenditures not in accordance with approved projects, concentrate equipment for vocational training and employment introduction services, finalize accounts, and report results to the Ministry of Finance.

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