Decision No. 56/2000/QD-BTC On the issuance of financial management regulations for social funds and charitable funds

OF THE MINISTER OF FINANCE NUMBER 56/2000/QD-BTC ON APRIL 19, 2000 REGARDING THE ISSUANCE OF REGULATIONS ON THE MANAGEMENT OF SOCIAL FUNDS AND CHARITABLE FUNDS

THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;
Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Decree No. 177/1999/NĐ-CP dated December 22, 1999 of the Government on the issuance of regulations on the organization and operation of social funds and charitable funds;
To strengthen financial management and encourage voluntary contributions from organizations and individuals to social funds and charitable funds;
At the proposal of the Director of the Financial Policy Department and the Head of the Office of the Ministry of Finance;

DECISION:

Article 1:

The attached Decision promulgates the "Regulations on the Management of Financial Social Funds and Charitable Funds."

Article 2:

This Decision shall take effect fifteen days from the date of signature.

Article 3:

The Chairman of the Management Board and the Directors of social funds and charitable funds shall be responsible for implementing this Decision.

REGULATIONS

MANAGEMENT OF SOCIAL FUNDS AND CHARITABLE FUNDS
(Attached to Decision No. 56/2000/QD-BTC dated April 19, 2000)

GENERAL PROVISIONS

Article 1.

Scope of Application

These Regulations apply to social funds and charitable funds (hereinafter referred to as Funds) established and operating in accordance with Decree No. 177/1999/NĐ-CP dated December 22, 1999 of the Government on the issuance of regulations on the organization and operation of social funds and charitable funds.

Article 2.

Principles of Operation

The Fund operates without profit-making objectives, based on self-generated capital through fundraising and voluntary contributions from organizations and individuals both domestically and internationally, aimed at supporting humanitarian, charitable activities, and encouraging cultural, sports, scientific, and social development.

The Fund covers its own costs for social and charitable activities and bears responsibility with its own assets, without state budget funding.

The Fund has legal personality, is permitted to open accounts at banks or State Treasury, and is responsible under the law for its operations.

The Fund must publicly disclose its fundraising, management, and usage of funds in accordance with Decision No. 225/1998/QD-TTg dated November 20, 1998 of the Prime Minister on the issuance of regulations on financial transparency for state budgets at all levels, budgetary units, state-owned enterprises, and funds with revenue from public donations, and Circular No. 29/1999/TT-BTC dated March 19, 1999 of the Ministry of Finance guiding the implementation of financial transparency for funds with revenue from public donations.

SOURCES OF REVENUE, USE, AND MANAGEMENT OF FUNDS.

Article 3.

The Fund has the following sources of revenue:

- Money and property voluntarily contributed and sponsored by organizations and individuals both domestically and internationally in compliance with legal provisions.

- Money and property of organizations and individuals both domestically and internationally authorized to sponsor the Fund for specific purposes in line with the Fund's charter and objectives.

- Interest from deposit accounts and other lawful revenues (if any).

Article 4.

Use of the Fund

The Fund may be used for the following purposes:

a - Direct sponsorship, non-recoverable, for activities consistent with the Fund's Charter, specifically:

+ Sponsorship for programs and projects aimed at humanitarian, charitable activities, and encouraging cultural, sports, scientific, and social development.

+ Sponsorship for organizations and individuals for activities consistent with the Fund's purpose and charter.

+ Sponsorship according to the authorization of organizations and individuals and the implementation of sponsored projects with specific addresses. The Fund is responsible for executing in accordance with the authorization of sponsoring organizations and individuals and in accordance with the law.

b - Expenditure for Fund management not exceeding 5% of the total revenue of the Fund.

The use of the Fund is decided by the Fund Director based on the direction and tasks of the Fund's activities approved by the Management Board. It shall not be used for other activities inconsistent with the Fund's charter and objectives.

Article 5.

Contents of expenditure for Fund management include:

- Salaries (allowances, subsidies if applicable) for the Fund management staff.

- Rent for office space.

- Purchase and repair of fixed assets serving the Fund's activities.

- Office supplies expenses.

- Payment for public services (electricity, water, fuel, sanitation, environment).

- Other expenditures related to the Fund's activities.

The Management Board of the Fund must issue detailed regulations on the management and use of the Fund, establish cost standards for the Fund's activities. The total expenditure for Fund management shall not exceed 5% of the Fund's total revenue in a year. In cases where the Fund's revenue decreases significantly in a year, the Management Board decides the minimum level of expenditure for Fund management, but it must ensure that the total expenditure for Fund management over three consecutive years does not exceed 5% of the Fund's total revenue.

Article 6.

Responsibilities of the Fund in accounting and financial management:

- The Fund must organize accounting and statistical work in accordance with the Accounting and Statistics Ordinance; comply with regulations on invoices and accounting vouchers.

- Maintain records and statistics of complete lists of organizations and individuals contributing, sponsoring, and receiving sponsorship, reflecting all transactions.

- Prepare and submit complete and timely annual financial reports and settlement statements to the competent financial authority that permits the establishment of the Fund.

- Accept supervision and inspection of revenue collection, management, and usage by the financial authority responsible for managing the Fund. Provide necessary information to relevant state management agencies when required by law.

- The Fund's Supervisory Board is responsible for monitoring the Fund's activities and reporting to the Management Board on the Fund's financial status.

- The Management Board of the Fund is responsible for managing the Fund's activities, approving financial plans, and auditing the Fund's settlement reports.

- The Standing Members of the Management Board and the Fund Director are responsible for publicly disclosing the following contents:

+ List and contribution levels of organizations and individuals who have contributed to the Fund.

+ Quarterly financial reports and annual settlement statements of the Fund by each revenue-expenditure item.

Article 7.

Accounting Officer of the Fund.

The person assigned the responsibility of being the Accounting Officer of the Fund is tasked with assisting the Fund Director in organizing and directing all accounting and statistical work of the Fund.

Absolutely no person who has a criminal record, has been disciplined for embezzlement, infringing socialist public property, or violating economic and financial management policies shall be appointed as the Accounting Officer of the Fund.

The person assigned the duty of Accounting Officer of the Fund must meet the following criteria:

+ Possess good moral character, integrity, and honesty.

+ For Funds established with permission from the Chairman of the People's Committee of provinces or centrally governed cities, the Accounting Officer must have a university degree in economics or finance, specialized knowledge in accounting, and at least two years of experience in accounting work.

+ For Funds established by decision of the Chairman of the People's Committee of districts, towns, urban districts, or provincial cities, the Accounting Officer must have specialized training in economics or finance and at least one year of experience in accounting work.

The appointment, dismissal, or transfer of the person assigned the duty of Accounting Officer of the Fund shall be decided by the Management Board of the Fund upon recommendation of the Fund Director. In cases of merger, consolidation, division, separation, dissolution of the Fund, or when the Accounting Officer transfers to another job, they must complete the final settlement before taking on new duties and remain responsible for all accounting data and reports during their tenure until the handover is completed.

DISPOSITION OF ASSETS WHEN THE FUND IS SUSPENDED FROM OPERATIONS OR MERGED, CONSOLIDATED, DIVIDED, SEPARATED, DISSOLVED

Article 8:

In the case of the Fund being permitted by the competent state agency to merge, consolidate, divide, or separate, all money and assets of the Fund must be accurately inventoried promptly before such actions take place. Under no circumstances shall the assets of the Fund be divided.

The total amount of money and assets of the newly merged or consolidated Fund must equal the combined total of money and assets of the Funds prior to merging or consolidating.

The total amount of money and assets of the newly divided or separated Funds must equal the entire amount of money and assets of the Fund prior to division or separation.

Article 9:

In the case of the Fund being dissolved, under no circumstances shall the assets of the Fund be divided. All money and assets of the Fund must first be used to settle any national debts (if any). After settling the debts and dissolution costs, the remaining funds must be deposited into the state budget of the level that authorized the establishment of the Fund.

Article 10:

In the case of the Fund being suspended from operations, the disposition of its assets shall be handled as if it were being dissolved, as stipulated in Article 9 of this Regulation.