Decision No. 938/QD-BTC Issuing the Regulation on Self-Governance and Financial Accountability for State-Owned Enterprises under the Ministry of Finance

Pursuant to …;

Issuing the Financial Autonomy and Self-responsibility Regulation

for State-Owned Enterprises under the Ministry of Finance

THE MINISTER OF FINANCE

Pursuant to Decree No. 86/2002/ND-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to Decree No. 77/2003/ND-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 43/2006/ND-CP dated April 25, 2006 of the Government stipulating the rights to autonomy and self-responsibility regarding the implementation of tasks, organizational structures, staffing, and finance for public state-owned enterprises;

Pursuant to Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree No. 43/2006/ND-CP dated April 25, 2006 of the Government;

Based on the proposal of the Director of the Department of Financial Management and Heads of State-Owned Enterprises under the Ministry of Finance;

DECISION:

Article 1. This Decision promulgates the Financial Autonomy and Self-responsibility Regulation for State-Owned Enterprises under the Ministry of Finance.

Article 2. This Decision takes effect from the date of signature, all previous regulations contrary to this Decision are abolished.

Article 3: The Director of the Department of Organization and Cadres, the Director of the Department of Financial Management, the Head of the Ministry's Office, Heads of State-Owned Enterprises under the Ministry of Finance, and Heads of related units shall be responsible for implementing this Decision./.

REGULATIONS

AUTONOMY AND SELF-RESPONSIBILITY FOR FINANCE

FOR STATE-OWNED ENTERPRISES UNDER THE MINISTRY OF FINANCE

(Issued together with Decision No. 938/QD-BTC

dated March 7, 2007 of the Minister of Finance)

PART I: GENERAL PROVISIONS

Article 1. State-Owned Enterprises under the Ministry of Finance (independent budget units, having their own seals and separate accounts, organizing accounting systems according to the Accounting Law), include: State-Owned Enterprises directly managed by the Ministry of Finance; State-Owned Enterprises under the General Taxation Department, the General Customs Department, the State Treasury, the Securities Commission, and various Bureaus (State-Owned Enterprises within the system and agencies under the Ministry of Finance); State-Owned Enterprises directly subordinate to State-Owned Enterprises under the Ministry of Finance established by the Minister of Finance.

State-Owned Enterprises under the Ministry of Finance shall implement financial autonomy and self-responsibility rights as prescribed in Decree No. 43/2006/ND-CP dated April 25, 2006 of the Government, Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of autonomy and self-responsibility rights regarding the execution of tasks, organizational structures, staffing, and finance for public state-owned enterprises, and specific provisions in this Regulation.

For scientific and technological organizations under the Ministry of Finance, they shall implement autonomy and self-responsibility rights as prescribed in Decree No. 115/2005/ND-CP dated September 5, 2005 of the Government stipulating the mechanism of autonomy and self-responsibility for public scientific and technological organizations, and current guiding documents of the State.

Article 2. State-Owned Enterprises under the Ministry of Finance operate in educational and training services; cultural and information services; economic services, and other services classified into types: Enterprises that ensure all operating expenses through their own service revenue (referred to as enterprises ensuring all operating costs); Enterprises that ensure part of their operating expenses through their own service revenue, with the remainder provided by the state budget (referred to as enterprises ensuring part of their operating costs); Enterprises with low service revenue, without any revenue, with all regular operating expenses guaranteed by the state budget (referred to as enterprises with all operating costs guaranteed by the state budget).

The classification of State-Owned Enterprises according to the above types is based on the level of self-assurance of regular operating expenses, specifically as follows:

1. Method of determining the level of self-assurance of regular operating expenses: 

Level of self-assurance of regular operating expenses (%) = Total service revenue x 100%/Total regular operating expenses

Where:

- Total service revenue as stipulated in Point 1.2, Clause 1, Article 5 of this Regulation.

- Total regular operating expenses as stipulated in Point 1.1, Clause 1, Article 6 of this Regulation.

Total service revenue and total regular operating expenses are calculated based on the budget revenue and expenditure forecast for the first year of the stable period.

2. Based on the level of self-assurance of regular operating expenses determined according to the guidance above, State-Owned Enterprises are classified as follows:

2.1. Enterprises ensuring all operating costs, including:

- Enterprises with a level of self-assurance of regular operating expenses determined according to the formula above, equal to or greater than 100%.

- Enterprises that have ensured operating costs from service revenue or from the state budget allocated by authorized state agencies.

2.2. Enterprises ensuring part of operating costs: Enterprises with a level of self-assurance of regular operating expenses determined according to the formula above, from over 10% to less than 100%.

2.3. Enterprises with all operating costs guaranteed by the state budget, including:

- Enterprises with a level of self-assurance of regular operating expenses determined according to the formula above, at 10% or below.

- Enterprises without any revenue.

3. The classification of State-Owned Enterprises according to the above regulations will be stable for three years, after which it will be reviewed and reclassified as appropriate.

During the stable classification period, if there are changes in the functions, tasks, or organization (merger or division) of State-Owned Enterprises, or new State-Owned Enterprises are established according to the decision of the competent authority: Based on the decision of the competent authority, assigned functions, tasks, and enterprise type; the Head of the Enterprise shall determine the classification of State-Owned Enterprises according to the current laws governing State-Owned Enterprises and Clause 1, Article 3 of this Regulation.

BASED on the method of determining the classification of public service units mentioned above and the current decisions regarding the types of public service units under the Ministry of Finance, the Ministry of Finance classifies public service units (Annex 7 attached to this Decision) for the units to implement according to the current legal regulations applicable to public service units and the guidelines set forth in this Regulation.

On the basis of the classification of public service units mentioned above, the Ministry of Finance encourages public service units that self-finance part of their operational costs to proactively register to implement as public service units that fully self-finance their operational costs. Public service units whose operational costs are fully guaranteed by the state budget should proactively register to implement as public service units that partially self-finance their regular operational costs.

Article 3. Delegation of authority of the heads of public service units, the heads of supervising agencies at higher levels

1. Develop and decide on the autonomy plan and financial responsibility:

- For public service units directly managed by the Ministry of Finance: The head of the unit develops the autonomy plan and financial responsibility proposal to be submitted to the Minister of Finance for consideration and decision to grant autonomy and financial responsibility.

- For public service units within the system or agency under the Ministry of Finance: The head of the unit develops the autonomy plan and financial responsibility proposal to be submitted to the head of the higher-level financial management agency for review and approval. The head of the system or agency decides to grant autonomy and financial responsibility to public service units under its management after obtaining the agreement of the Ministry of Finance (Financial Administration Department).

- For public service units established directly under another public service unit: The head of the unit develops the autonomy plan and financial responsibility proposal to be submitted to the head of the higher-level public service unit for review and approval.

The head of the higher-level public service unit decides on the autonomy and financial responsibility rights for public service units under its management after obtaining the agreement of the higher-level financial management agency. After making the decision, it must report to the Ministry of Finance (Financial Administration Department).

2. Develop and issue Internal Expenditure Regulations:

- The head of the public service unit that bears financial responsibility independently develops and decides to issue the Internal Expenditure Regulations in accordance with the current legal regulations applicable to public service units and the guidelines set forth in this Regulation.

- In cases where the unit develops Internal Expenditure Regulations with special mechanisms and exceeds its decision-making authority, the head of the unit must report to the higher-level supervising agency for consideration and obtain its agreement before issuing.

3. Develop and decide on capital mobilization plans and credit borrowing, joint venture, and cooperation activities:

- The head of a public service unit that self-finances its operational costs: Independently decides on the capital mobilization plan and credit borrowing, joint venture, and cooperation activities consistent with the functions and tasks of the unit and is responsible under the law and to the Minister of Finance for such decisions.

- The head of a public service unit that partially self-finances its operational costs: Reports to the Minister of Finance (through the Financial Administration Department) for consideration and approval of the unit's capital mobilization plan and credit borrowing, joint venture, and cooperation activities before implementation.

Article 4. Public service units under the Ministry of Finance must comply strictly with the objectives and principles of exercising autonomy and bearing responsibility as stipulated in Decree No. 43/2006/NĐ-CP dated April 25, 2006, of the Government and Circular No. 71/2006/TT-BTC dated August 9, 2006, of the Ministry of Finance.

CHAPTER II. SPECIFIC PROVISIONS

Article 5: SOURCES OF FUNDS FOR ENTERPRISES UNDER THE MINISTRY OF FINANCE:

1. GENERAL PROVISIONS ON SOURCES OF FUNDS FOR ENTERPRISES:

1.1. FUNDS PROVIDED BY THE STATE BUDGET TO ENSURE REGULAR OPERATIONS (FOR ENTERPRISES THAT SELF-FINANCE PART OF THEIR OPERATING COSTS AND ENTERPRISES FULLY FUNDED BY THE STATE BUDGET).

1.2. PORTIONS RETAINED FROM FEES AND CHARGES COLLECTED AND BELONGING TO THE STATE BUDGET AS PER LEGAL PROVISIONS.

1.3. INCOME FROM SERVICE ACTIVITIES:

- INCOME FROM SERVICE ACTIVITIES SUITABLE TO THE SPECIALIZATION AND CAPABILITY OF THE ENTERPRISE.

- PROFITS DISTRIBUTED FROM JOINT VENTURE AND ASSOCIATION ACTIVITIES, INTEREST FROM BANK DEPOSITS FROM SERVICE ACTIVITIES.

- Other income (if any).

1.4. SOURCES OF FUNDS FROM GRANTS, GIFTS, DONATIONS AS PER LEGAL PROVISIONS.

1.5. OTHER SOURCES, INCLUDING:

- LOANS FROM CREDIT ORGANIZATIONS AND FUNDS RAISED FROM STAFF MEMBERS WITHIN THE ENTERPRISE.

- FUNDS FROM PARTICIPATION IN JOINT VENTURES AND ASSOCIATIONS WITH DOMESTIC AND FOREIGN ORGANIZATIONS AND INDIVIDUALS AS PER LEGAL PROVISIONS.

1.6. FUNDS FROM THE STATE BUDGET ALLOCATED FOR NON-REGULAR TASKS:

a. CAPITAL FOR BASIC CONSTRUCTION, FUNDS FOR EQUIPMENT PURCHASES, MAJOR REPAIRS OF FIXED ASSETS TO SUPPORT ENTERPRISE ACTIVITIES ACCORDING TO PROJECTS APPROVED BY AUTHORIZED AUTHORITIES WITHIN THE ANNUAL BUDGET.

b. FUNDS FOR UNEXPECTED TASKS ASSIGNED BY AUTHORIZED AUTHORITIES.

c. FUNDS FOR SCIENTIFIC AND TECHNOLOGICAL TASKS (FOR ENTERPRISES THAT ARE NOT SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS).

d. FUNDS FOR TRAINING AND STAFF DEVELOPMENT PROGRAMS.

đ. FUNDS FOR NATIONAL TARGET PROGRAMS.

e. FUNDS FOR TASKS ORDERED BY GOVERNMENT AUTHORITIES (FOR ENTERPRISES THAT FULLY SELF-FINANCE THEIR OPERATING COSTS AND ENTERPRISES THAT PARTIALLY SELF-FINANCE THEIR OPERATING COSTS).

g. FUNDS FOR IMPLEMENTATION OF STAFF REDUCTION POLICIES AS PER GOVERNMENT REGULATIONS (IF APPLICABLE).

h. CONTRIBUTED FUNDS FOR IMPLEMENTATION OF PROJECTS WITH FOREIGN FUNDS APPROVED BY AUTHORIZED AUTHORITIES.

i. OTHER FUNDS (IF ANY).

ENTERPRISES THAT PARTIALLY SELF-FINANCE THEIR OPERATING COSTS AND ENTERPRISES FULLY FUNDED BY THE STATE BUDGET: ANNUALLY, BASED ON THE ANNEXED STATE BUDGET AND THE ENTERPRISE'S OWN INCOME AND EXPENSES BUDGET, SUPERIOR MANAGEMENT AUTHORITIES ASSIGN THE FUNDS FROM THE STATE BUDGET TO ENSURE REGULAR OPERATIONS AS PER THE STATE BUDGET LAW.

ENTERPRISES MAY NOT USE THE ABOVE MENTIONED FUNDS AND FUNDS FROM FUNDS TO PAY TO SUPERIOR MANAGEMENT AUTHORITIES. FUNDS FOR TASKS ASSIGNED BY SUPERIOR AUTHORITIES OR FUNDS TO SUPPORT SUPERIOR AUTHORITIES MUST BE ACCOUNTED FOR AND SETTLED AT THE ENTERPRISE.

2. PROVISIONS ON MANAGEMENT OF INCOME SOURCES FOR DIFFERENT TYPES OF ENTERPRISES:

2.1. FOR EDUCATION AND TRAINING ENTERPRISES:

a. FUNDS RETAINED FROM FEES AND CHARGES: THE ENTERPRISE MUST DEDICATE AT LEAST 25% TO PURCHASING ASSETS AND ENHANCING PHYSICAL INFRASTRUCTURE; THE ENTERPRISE MUST DEVELOP A PLAN THAT IS CONSISTENT WITH THE GUIDELINES, PLANNING, AND APPROVED PROJECTS AND REPORT TO THE MINISTRY OF FINANCE FOR APPROVAL BEFORE IMPLEMENTATION.

ENTERPRISES FULLY FUNDED BY THE STATE BUDGET DO NOT NEED TO FOLLOW THIS PROVISION.

b. INCOME FROM SERVICE ACTIVITIES: INCOME FROM TRAINING CONTRACTS WITH DOMESTIC AND FOREIGN ORGANIZATIONS; INCOME FROM SCIENTIFIC AND TECHNOLOGICAL SERVICE CONTRACTS; INCOME FROM THE REMUNERATION SYSTEM OF TEACHERS PARTICIPATING IN OUTSIDE TEACHING; OTHER INCOME AS PER LEGAL PROVISIONS.

- FOR JOINT VENTURE AND TRAINING CONTRACT ACTIVITIES, THE ENTERPRISE MUST REFLECT ALL INCOME GENERATED FROM TRAINING CONTRACTS INTO THE ENTERPRISE'S OPERATIONAL FUNDS.

- FOR SERVICE ACTIVITIES, THE ENTERPRISE MUST DETAIL INCOME AND EXPENSES, SEPARATELY ACCOUNTING FOR EACH SERVICE ACTIVITY (OR SERVICE CONTRACT); ANY SURPLUS INCOME OVER EXPENSES MUST BE ADDED TO THE ENTERPRISE'S OPERATIONAL FUNDS.

2.2. FOR CULTURAL AND INFORMATION ENTERPRISES:

- THE ENTERPRISE MUST REFLECT ALL INCOME FROM PUBLISHING NEWSPAPERS, MAGAZINES, AND PRINTED MATERIALS; PUBLISHING ACTIVITIES; INCOME FROM ADVERTISING ON NEWSPAPERS, MAGAZINES, AND PUBLICATIONS; OTHER INCOME AS PER LEGAL PROVISIONS INTO THE ENTERPRISE'S OPERATIONAL FUNDS.

- FOR CONTRACTS WITH DIVIDED INCOME, ONLY THE ENTERPRISE'S SHARE OF THE INCOME MUST BE REFLECTED IN THE ENTERPRISE'S OPERATIONAL FUNDS.

- FOR SERVICE ACTIVITIES, THE ENTERPRISE MUST DETAIL INCOME AND EXPENSES, SEPARATELY ACCOUNTING FOR EACH SERVICE ACTIVITY; ANY SURPLUS INCOME OVER EXPENSES MUST BE ADDED TO THE ENTERPRISE'S OPERATIONAL FUNDS.

2.3. FOR ECONOMIC ENTERPRISES AND OTHER ENTERPRISES:

a. FOR PRICE APPRAISAL CENTERS: INCOME FROM PRICE APPRAISAL SERVICES, PRICE ADVISORY SERVICES, AND OTHER SERVICES SUITABLE TO THE FUNCTIONS AND TASKS ASSIGNED.

THE ENTERPRISE MUST SET THE LEVEL OF SERVICE FEES IN LINE WITH LEGAL PROVISIONS ON APPRAISAL FEES AND BASED ON AGREEMENTS WITH CUSTOMERS.

THE ENTERPRISE MUST DETAIL INCOME AND EXPENSES, SEPARATELY ACCOUNTING FOR EACH SERVICE ACTIVITY. AFTER YEAR-END SETTLEMENT APPROVED BY SUPERIOR FINANCIAL MANAGEMENT AUTHORITIES, ANY SURPLUS INCOME OVER EXPENSES FROM THE ABOVE MENTIONED SERVICE ACTIVITIES CAN BE USED TO ESTABLISH FUNDS AND PAY ADDITIONAL SALARIES AS PER ARTICLE 8 OF THIS REGULATION.

b. FOR GUESTHOUSES AND LODGES: INCOME FROM ROOM RENTALS; INCOME FROM RENTING SPACE, MEETING ROOMS, CONFERENCE ROOMS, SEMINAR ROOMS; INCOME FROM RENTING EQUIPMENT FOR MEETINGS AND SEMINARS; FOOD AND DRINK SERVICES, WEDDING ORGANIZATION SERVICES; SALES OF SOUVENIRS AND OTHER SERVICES SUITABLE TO THE FUNCTIONS AND TASKS ASSIGNED.

THE DIRECTOR OF THE GUESTHOUSE OR LODGE MUST DEVELOP A FRAMEWORK OF SERVICE PRICES FOR ROOM RENTALS, SPACE RENTALS, MEETING ROOMS, AND PRESENT IT TO THE MINISTRY OF FINANCE (FINANCE MANAGEMENT DEPARTMENT) FOR APPROVAL. IN CASES OF URGENT NEEDS, THE DIRECTOR CAN ADJUST THE FRAMEWORK PRICES UP TO 20% TO MATCH ACTUAL OPERATIONS; IF HIGHER PRICE ADJUSTMENTS ARE NECESSARY, A NEW FRAMEWORK OF PRICES MUST BE DEVELOPED AND SUBMITTED TO THE MINISTRY OF FINANCE (FINANCE MANAGEMENT DEPARTMENT) FOR APPROVAL.

The unit must monitor income and expenditure in detail, account for each service activity separately. Annually, after determining the financial results, the excess of income over expenditure from the aforementioned service activities shall be allocated to the Fund and used to pay additional salaries according to the provisions of Article 8 of this Regulation.

c. For the Information, Advisory, and Property and Real Estate Service Center under the State Asset Management Department: The unit must monitor income and expenditure in detail, account for each service activity separately. Annually, after determining the financial results (the excess of income over expenditure), the unit shall allocate to the Fund and use to pay additional salaries according to the provisions of Article 8 of this Regulation.

d. For public institutions operating in the field of information technology:

For service activities, the unit must monitor income and expenditure in detail, account for each service activity separately; the excess of income over expenditure must be accounted for as supplementary funding for operational expenses.

đ. For public institutions operating in the securities field:

Sources retained from fees and charges: The unit must reserve at least 30% for investment in purchasing assets and enhancing infrastructure; the unit must develop plans ensuring alignment with approved orientations, planning, and projects and report to the Ministry of Finance for approval before implementation.

For service activities, the unit must monitor income and expenditure in detail, account for each service activity separately; the excess of income over expenditure must be accounted for as supplementary funding for operational expenses.

Article 6. Contents of expenditures for public institutions under the Ministry of Finance:

1. General provisions on contents of expenditures for public institutions:

1.1. Regular expenditures:

a. Regular operational expenditures according to assigned functions and tasks, including: Salaries; wages; allowances; social insurance contributions, health insurance contributions, trade union fees as prescribed; public services; office supplies; business-related expenditures; regular maintenance of fixed assets and other expenditures as prescribed.

b. Regular operational expenditures for fee and charge collection work, including: Salaries; wages; allowances; social insurance contributions, health insurance contributions, trade union fees as prescribed for direct staff involved in fee and charge collection work; specialized business-related expenditures; regular maintenance of fixed assets and other expenditures as prescribed for fee and charge collection work.

c. Expenditures for service activities, including: Salaries; wages; allowances; social insurance contributions, health insurance contributions, trade union fees as prescribed; raw materials, fuel, external labor costs; depreciation of fixed assets; repair of fixed assets; payment of interest on loans and interest on funds raised through borrowing by officials and employees; payments of taxes as prescribed by law and other expenditures (if any).

1.2. For grants, gifts, and donations as prescribed by law: Public institutions shall spend according to the content and level of expenditure prescribed by the donor or grantor; if the donor or grantor does not prescribe the content and level of expenditure, it shall be considered as state budget revenue and must be spent according to the prescribed contents and standards by the State.

1.3. For state budget funds allocated to implement non-recurring tasks: Public institutions must comply with current regulations of the State and the Ministry of Finance.

2. Special provisions on certain contents and levels of expenditure:

2.1. For public educational and training institutions under the Ministry of Finance that self-fund their operations and partially self-fund their operational costs:

a. Expenditure for mass organization work (Party, Youth Union, Women's Union, other mass organizations): Maximum expenditure up to 2% of total fees, charges, and lawful service revenues of the institution.

b. Expenditure for student scholarships: Expenditure according to current regulations of the State and ensuring the Scholarship Fund as prescribed in Circular Joint No. 09/2000/TTLT-BGD&ĐT-BTC-BLĐTB&XH dated April 11, 2000 issued by the Ministry of Education and Training, the Ministry of Finance, and the Ministry of Labor, Invalids, and Social Affairs guiding scholarships and social assistance for students in public schools.

2.2. For public cultural and information institutions under the Ministry of Finance that self-fund their operations and partially self-fund their operational costs:

a. Expenditure for royalties: Content and level of expenditure as prescribed in Decree No. 61/2002/NĐ-CP dated June 11, 2002 of the Government and Circular Joint No. 21/2003/TTLT-BVHTT-BTC dated July 1, 2003 guiding the payment of royalty benefits.

b. Expenditure for advertising commission: The head of the unit shall determine the level of expenditure for advertising commissions, ensuring that the level of expenditure does not exceed 10% of reasonable expenses as prescribed by the Law on Corporate Income Tax. In cases where the expenditure exceeds the prescribed level, the unit must use post-tax corporate income (if any) to cover the excess expenditure; if there is no post-tax corporate income, the unit must include the excess expenditure in the next year's expenses as prescribed.

c. Expenditure for distribution through agents: The level of expenditure shall not exceed 5% of the cover price.

2.3. For public institutions operating in the securities field under systems and units under the Ministry of Finance that partially self-fund their operational costs:

a. Expenditure for specialized tasks funded by the state budget: Expenditure for information dissemination, creation of goods for the securities market, maintenance and upgrading of trading systems, exchange floor activities, software function maintenance, and auction activities. Annually, the Ministry of Finance allocates budgets for these tasks; the Securities Commission shall instruct the unit to ensure minimum spending levels as prescribed by the Ministry of Finance, and the budget for these tasks shall not be used for regular expenditures.

b. Expenditure for government bond auctions: Maximum expenditure for auction members up to 0.075% of the total value of successfully auctioned bonds from auction fees (0.15% of the total value of successfully auctioned bonds).

c. Expenditures for service activities:

- Expenditure for brokerage commissions for executing contracts to exploit service provision: Maximum expenditure up to 10% of service revenue; the total annual expenditure must remain within the maximum controlled level of 10% of reasonable expenses as prescribed by the Law on Corporate Income Tax.

- Commission for advertising brokerage services: The head of the unit shall stipulate the level of commission for advertising brokerage services, ensuring that the expenditure level remains within the maximum total allowable expenditure other than operating costs for the year, which is capped at 10% of reasonable expenses as prescribed by the Law on Corporate Income Tax. In cases where expenditures exceed the prescribed limit, the unit must cover the excess from post-tax corporate income profits (if any); if there are no post-tax corporate income profits, the unit must include the excess expenditure in the following year's expenses as prescribed.

d. Expenditure for organizing share auction services:

- Expenditure for members and agents: up to a maximum of 50% of the total revenue from organizing the auction.

- Reward expenditure for members of the Auction Committee, service staff, and related units: up to a maximum of 10% of the total revenue from organizing the auction.

Article 7. Provisions regarding payment of salaries, wages, and additional income.

1. Salaries and Wages: Units may only pay salaries and wages according to the prescribed system (coefficient 1), specifically as follows:

- For activities performing state-assigned functions and tasks; fee and charge collection activities, the salaries and wages of employees shall be calculated based on the state-prescribed rank and position salary scale.

- For guesthouses and rest houses: Units shall implement the Decree No. 204/2004/NĐ-CP on the salary system for officials, civil servants, public employees, and armed forces personnel. Additionally, for positions not specified in Decree No. 204/2004/NĐ-CP, units are permitted to apply the salary grade scale as prescribed in Decree No. 205/2004/NĐ-CP dated December 14, 2004, issued by the Government on the wage system and wage allowances in state-owned companies.

- For activities providing products ordered by the state with labor cost rates included in the product pricing approved by competent authorities, the salaries and wages of employees shall be calculated based on the prescribed pricing.

For products ordered by the state without labor cost rates included in the product pricing, the salaries and wages of employees shall be calculated based on the state-prescribed rank and position salary scale.

- For service activities where units establish subordinate non-profit organizations to conduct services and separately account for revenues and expenses of each type of service, the salary and wage costs for employees engaged in such service activities shall be applied according to the state enterprise salary system as prescribed in Decree No. 205/2004/NĐ-CP dated December 14, 2004, issued by the Government on the wage system and wage allowances in state-owned companies, and Decree No. 206/2004/NĐ-CP dated December 14, 2004, issued by the Government on labor management, wages, and income in state-owned companies.

For service activities where units do not establish subordinate non-profit organizations and separately account for revenues and expenses of each type of service, the salary and wage costs for employees engaged in such service activities shall be calculated based on the state-prescribed rank and position salary scale.

2. Additional Income:

a. Based on financial results for the year, units decide on the total additional income for the year as follows:

- For self-financing non-profit organizations: Units may decide on the total additional income for the year according to their internal expenditure regulations, after setting aside the Development Fund for Non-Profit Activities as prescribed in Clause a, Point 1.1, Clause 1, Article 8 of this Regulation.

- For partially self-financing non-profit organizations: Units may decide on the total additional income for the year, but not exceeding twice the annual state-prescribed rank and position fund, after setting aside the Development Fund for Non-Profit Activities as prescribed in Clause b, Point 1.1, Clause 1, Article 8 of this Regulation.

- For fully state-funded non-profit organizations: Based on savings achieved during the year, units may decide on the total additional income for the year for employees, but not exceeding once the annual state-prescribed rank and position fund.

b. The rank and position salary fund serves as the basis for calculating the total additional income for the year for units, including:

- Rank and position salaries and seniority allowances exceeding the ceiling (if applicable): Calculated based on the salary coefficient, position allowance coefficient, and seniority allowance exceeding the ceiling (if applicable) of employees in the unit (permanent staff and contract staff for one year or more) and the general minimum wage rate prescribed by the Government.

- Increased salary due to promotion based on years of service or early promotion (if applicable).

The rank and position salary fund for the year for the above unit does not include remuneration paid under contracts.

c. Payment of additional income to individual employees in the unit (permanent staff and contract staff for one year or more) shall be made according to the unit's internal expenditure regulations and ensure the principle that those with high work efficiency and significant contributions to increased revenue and cost savings receive more.

d. When the state adjusts regulations on salaries, increasing the minimum wage, units shall implement as follows:

- For units that fully finance their own operations and partially finance their own operations: The additional rank and position salary according to the state-prescribed system shall be covered by the units from non-profit revenue and other sources as prescribed by the Government.

If, after using these sources, the additional salary still cannot be fully covered according to the state-prescribed system, the shortfall will be considered and supplemented by the state budget to ensure the common salary system as prescribed by the Government.

- For units fully funded by the state budget for their operations: The additional rank and position salary according to the state-prescribed system shall be covered from sources as prescribed by the Government.

3. Units may temporarily allocate additional income quarterly and pay increased salaries annually as follows:

a. BASED ON THE FINANCIAL ACTIVITY RESULTS OF THE QUARTER AND YEAR OF THE UNIT, IN ORDER TO TIMELY MOTIVATE EMPLOYEES TO COMPLETE THEIR ASSIGNED TASKS, THE HEAD OF THE STATE-SPONSORED PUBLIC SERVICE UNIT MAY TEMPORARILY PAY THE INCREASED EARNINGS BEFORE THE END OF THE YEAR. SPECIFICALLY AS FOLLOWS:

- FOR UNITS THAT SELF-FINANCE OPERATING COSTS AND PARTIALLY SELF-FINANCE OPERATING COSTS: THE MAXIMUM AMOUNT OF TEMPORARY PAYMENT OF INCREASED EARNINGS PER QUARTER SHALL NOT EXCEED 40% OF THE QUARTERLY DETERMINED REVENUE EXCESS OVER EXPENSES.

- FOR UNITS FULLY FUNDED BY THE STATE BUDGET FOR OPERATING COSTS: THE MAXIMUM AMOUNT OF TEMPORARY PAYMENT PER QUARTER SHALL NOT EXCEED 50% OF THE POSSIBLE SAVINGS OF THE UNIT FOR ONE QUARTER.

b. AFTER THE ANNUAL SETTLEMENT IS APPROVED BY THE AUTHORIZED BODY AND THE EXCESS REVENUE OVER EXPENSES IS ACCURATELY DETERMINED, THE HEAD OF THE UNIT SHALL CONTINUE TO PAY THE INCREASED EARNINGS TO THE EMPLOYEES IN ACCORDANCE WITH THE INTERNAL SPENDING REGULATIONS OF THE UNIT. IF THE UNIT HAS TEMPORARILY PAID MORE THAN THE EXCESS REVENUE OVER EXPENSES ALLOCATED FOR THE PAYMENT OF INCREASED EARNINGS ACCORDING TO THE INTERNAL SPENDING REGULATIONS, THE EXCESS AMOUNT MUST BE SUBTRACTED FROM THE INCREASED EARNINGS PAYMENT OF THE FOLLOWING YEAR.

Article 8. USING THE FINANCIAL ACTIVITY RESULTS OF THE YEAR:

1. FOR PUBLIC SERVICE UNITS THAT SELF-FINANCE OPERATING COSTS AND PARTIALLY SELF-FINANCE OPERATING COSTS:

AFTER COVERING THE REQUIRED EXPENSES, PAYING TAXES, AND OTHER PAYMENTS AS REQUIRED, THE UNIT MAY USE THE EXCESS REVENUE OVER EXPENSES (INCLUDING REGULAR OPERATING REVENUES AND CHARGES AND GOVERNMENT CONTRACTED TASKS) IN THE FOLLOWING SEQUENCE:

1.1. ESTABLISHING THE DEVELOPMENT FUND FOR PUBLIC SERVICE ACTIVITIES: TO INVEST IN AND DEVELOP PUBLIC SERVICE ACTIVITIES, SUPPLEMENT CAPITAL FOR CONSTRUCTION OF INFRASTRUCTURE, PURCHASE OF EQUIPMENT AND WORKING TOOLS, EXPENSES FOR APPLYING SCIENTIFIC AND TECHNOLOGICAL PROGRESS, AND ADDITIONAL TRAINING AND SKILL ENHANCEMENT FOR STAFF; IT CAN ALSO BE USED FOR JOINT VENTURES AND COOPERATIVE PROJECTS IN ACCORDANCE WITH LEGAL REQUIREMENTS.

a. FOR UNITS THAT SELF-FINANCE OPERATING COSTS: AT LEAST 30% OF THE EXCESS REVENUE OVER EXPENSES SHOULD BE SET ASIDE.

b. FOR UNITS THAT PARTIALLY SELF-FINANCE OPERATING COSTS: AT LEAST 25% OF THE EXCESS REVENUE OVER EXPENSES SHOULD BE SET ASIDE.

THE DEVELOPMENT FUND FOR PUBLIC SERVICE ACTIVITIES SHALL BE USED BY THE HEAD OF THE UNIT IN ACCORDANCE WITH THE INTERNAL SPENDING REGULATIONS OF THE UNIT.

THE UNIT MUST REPORT TO THE SUPERIOR FINANCIAL MANAGEMENT AUTHORITY FOR APPROVAL: THE PLAN, IMPLEMENTATION SCHEME, AND RESULTS OF USING THE FUND TO ENSURE ALIGNMENT WITH THE GUIDELINES, PLANS, AND PROJECTS APPROVED BY THE MINISTRY OF FINANCE.

1.2. PAYING INCREASED EARNINGS TO EMPLOYEES IN ACCORDANCE WITH ARTICLE 7 OF THE REGULATION.

1.3. ESTABLISHING THE STABILIZATION FUND FOR INCOME: THE HEAD OF THE UNIT SHALL SPECIFY THE LEVEL OF CONTRIBUTION TO THE FUND IN THE INTERNAL SPENDING REGULATIONS OF THE UNIT.

THIS FUND IS USED TO ENSURE STABLE INCOME FOR EMPLOYEES WHEN REVENUE DECREASES OR THE STATE ADJUSTS WAGE POLICIES. THE USE OF THIS FUND MUST BE AGREED UPON BY THE LABOR ORGANIZATIONS IN THE UNIT.

1.4. ESTABLISHING THE AWARD FUND AND THE WELFARE FUND: THE MAXIMUM LEVEL OF CONTRIBUTION TO BOTH FUNDS SHALL NOT EXCEED THREE MONTHS' AVERAGE WAGES, SALARIES, AND INCREASED EARNINGS. THE DISTRIBUTION OF CONTRIBUTIONS TO EACH FUND IS DECIDED BY THE HEAD OF THE UNIT IN ACCORDANCE WITH THE INTERNAL SPENDING REGULATIONS OF THE UNIT.

- THE AWARD FUND IS USED TO PROVIDE REGULAR AND OCCASIONAL AWARDS TO COLLECTIVES AND INDIVIDUALS INSIDE AND OUTSIDE THE UNIT BASED ON PERFORMANCE AND CONTRIBUTIONS TO THE UNIT'S ACTIVITIES. THE LEVEL OF AWARDS IS DECIDED BY THE HEAD OF THE UNIT IN ACCORDANCE WITH THE INTERNAL SPENDING REGULATIONS OF THE UNIT.

- THE WELFARE FUND IS USED TO BUILD AND REPAIR WELFARE FACILITIES, SPEND ON COLLECTIVE WELFARE ACTIVITIES FOR UNIT EMPLOYEES; PROVIDE EMERGENCY ASSISTANCE TO EMPLOYEES, INCLUDING THOSE RETIRING OR TAKING MEDICAL LEAVE; AND PROVIDE ADDITIONAL SUPPORT TO EMPLOYEES WHO ARE REDUCED IN STAFFING. THE USE OF THE FUND IS DECIDED BY THE HEAD OF THE UNIT IN ACCORDANCE WITH THE INTERNAL SPENDING REGULATIONS OF THE UNIT.

THE CONTENT OF EXPENSES FROM THE AWARD FUND AND THE WELFARE FUND INCLUDES THE EXPENSES FOR AWARDS AND WELFARE FROM FEES AND LICENSE FEES (FOR UNITS ASSIGNED THE TASK OF COLLECTING FEES AND LICENSE FEES).

1.5. AFTER ESTABLISHING THE FUNDS, ANY REMAINING BALANCE AFTER PAYING INCREASED EARNINGS IN THE SEQUENCE DESCRIBED ABOVE SHALL BE TRANSFERRED TO THE DEVELOPMENT FUND FOR PUBLIC SERVICE ACTIVITIES.

IF THE EXCESS REVENUE OVER EXPENSES IS EQUAL TO OR LESS THAN THE ANNUAL POSITION AND RANK WAGE FUND, THE UNIT MAY DECIDE TO USE THE FUNDS IN THE FOLLOWING SEQUENCE:

- PAYING INCREASED EARNINGS TO EMPLOYEES;

- ESTABLISHING FUNDS: THE DEVELOPMENT FUND FOR PUBLIC SERVICE ACTIVITIES (WITHOUT LIMITING THE MINIMUM CONTRIBUTION OF THE EXCESS REVENUE OVER EXPENSES), THE AWARD FUND, THE WELFARE FUND, AND THE STABILIZATION FUND FOR INCOME. FOR THE AWARD FUND AND THE WELFARE FUND, THE MAXIMUM CONTRIBUTION TO BOTH FUNDS SHALL NOT EXCEED THREE MONTHS' AVERAGE WAGES, SALARIES, AND INCREASED EARNINGS.

THE UNIT MUST REPORT THE ANNUAL SETTLEMENT OF THE USE OF FUNDS TOGETHER WITH THE UNIT'S FINANCIAL REPORT TO THE SUPERIOR FINANCIAL MANAGEMENT AUTHORITY FOR APPROVAL.

2. FOR UNITS FULLY FUNDED BY THE STATE BUDGET FOR OPERATING COSTS:

AFTER COVERING THE REQUIRED EXPENSES, PAYING TAXES, AND OTHER PAYMENTS AS REQUIRED, THE UNIT MAY USE THE SAVED FUNDS AND THE EXCESS REVENUE OVER EXPENSES FROM SERVICE ACTIVITIES (IF ANY) IN THE FOLLOWING SEQUENCE:

2.1. PAYING INCREASED EARNINGS TO EMPLOYEES, ACCORDING TO THE GUIDANCE AT CLAUSE 2, ARTICLE 7 OF THIS REGULATION.

2.2. SPENDING ON REGULAR AND OCCASIONAL AWARDS TO COLLECTIVES AND INDIVIDUALS INSIDE AND OUTSIDE THE UNIT BASED ON PERFORMANCE AND CONTRIBUTIONS TO THE UNIT'S ACTIVITIES (INCLUDING THE CONTENT OF EXPENSES FOR AWARDS AND WELFARE FROM FEES AND LICENSE FEES - FOR UNITS ASSIGNED THE TASK OF COLLECTING FEES AND LICENSE FEES).

2.3. SPENDING ON WELFARE, EMERGENCY ASSISTANCE, AND OCCASIONAL ASSISTANCE TO EMPLOYEES, INCLUDING THOSE RETIRING OR TAKING MEDICAL LEAVE; AND ADDITIONAL SUPPORT TO EMPLOYEES WHO ARE REDUCED IN STAFFING.

2.4. SPENDING ON ENHANCING THE UNIT'S INFRASTRUCTURE.

IF THE UNIT CONSIDERS THE SAVING OF FUNDS TO BE UNSTABLE, IT MAY ESTABLISH A STABILIZATION FUND FOR INCOME TO ENSURE EMPLOYEE INCOME.

The specific level for expenditures and the establishment of income stability reserve funds shall be determined by the head of the public service unit in accordance with the internal expenditure regulations of the unit.

Article 9. Provisions on capital mobilization and credit borrowing, joint venture and cooperative activities.

Public service units that self-finance their operational costs and those that partially self-finance their operational costs may mobilize capital and borrow credit, engage in joint ventures and cooperatives, specifically as follows:

1. Capital Mobilization and Credit Borrowing:

1.1. Public service units conducting service activities consistent with their assigned functions and tasks may borrow from financial institutions and mobilize capital from staff within the unit to expand and improve the quality of public service operations, organize service activities, and bear responsibility for repaying loans in accordance with the law.

Investment projects funded by borrowed credit and mobilized capital must comply with legal provisions, be transparent and democratic within the unit, follow approved planning by competent authorities, and report to higher-level management bodies for monitoring and inspection.

1.2. Payment of interest on borrowed funds and mobilized capital:

- Payment of interest on borrowed funds to financial institutions at the actual interest rate based on the loan agreement;

- Payment of interest on mobilized capital from staff (mobilized capital through borrowing from staff) at the actual interest rate when signing the loan agreement, but not exceeding the maximum interest rate allowed under the Corporate Income Tax Law and current guiding documents.

1.3. Sources of funds for payment of interest on borrowed funds and mobilized capital; borrowed funds and mobilized capital for operating service activities:

- Funds for paying interest on borrowed funds and mobilized capital (through borrowing from staff) can be included in the cost of service activities generated by these loans and capital mobilizations. In cases where staff contribute capital alongside the unit and receive interest dependent on their contribution ratio, the interest on mobilized capital should be paid from the profits of the service activity, and not included in costs.

- The source of funds for paying borrowed and mobilized capital shall be implemented according to current state regulations.

1.4. Units may use assets purchased from the development fund for public services and from borrowed and mobilized capital to collateralize loans in accordance with the law; they may not use budget funds or assets to collateralize loans, pay borrowed funds, or pay mobilized capital.

2. Joint Venture and Cooperative Activities.

2.1. Public service units engaging in joint ventures and cooperatives shall implement the provisions set out in Accounting Standard No. 07 - Investments in Associated Companies, and Accounting Standard No. 08 - Financial Information on Joint Ventures, issued by Decision No. 234/2003/QĐ-BTC dated December 30, 2003 of the Minister of Finance regarding the issuance and announcement of six Vietnamese accounting standards (batch 3).

2.2. Public service units may use assets invested from the Development Fund for Public Services, borrowed funds, and mobilized capital to contribute to other units and organizations in the form of joint ventures and cooperatives in accordance with the law. The use of land for joint venture and cooperative contributions must comply with the Land Law and current guiding documents.

2.3. Financial results from joint venture and cooperative activities of the unit, after tax payments as prescribed by law, shall be recorded as the results of service activities and managed and utilized in accordance with this Circular.

2.4. Joint venture and cooperative activities must be transparent and democratic within the unit and implemented in accordance with reporting requirements to higher-level management bodies as stipulated.

The implementation of capital mobilization and credit borrowing, joint venture and cooperative activities, as delegated in Clause 3, Article 3 of this Regulation.

Article 10. Provisions on State Asset Management.

Public service units under the Ministry of Finance shall manage State assets in accordance with Decision No. 202/2006/QĐ-TTg dated August 31, 2006 of the Prime Minister promulgating the Regulations on State Asset Management at Public Service Units, current guiding documents, and the following specific provisions:

1. Public service units are responsible for managing State assets in accordance with current regulations on State asset management at public service units. The management and use of land at public service units must comply with the provisions of the Land Law and current guiding documents.

2. For fixed assets used in service activities, units must depreciate fixed assets according to the regime applicable to state-owned enterprises as stipulated in Decision No. 206/2003/QĐ-BTC dated December 12, 2003 of the Minister of Finance.

Depreciation funds and proceeds from the disposal of assets (after deducting disposal costs) sourced from the state budget shall be retained and recorded in the Development Fund for Public Services (for public service units that self-finance their operational costs and those that partially self-finance their operational costs). If applicable, these funds may be retained to increase investment funding for strengthening infrastructure and updating equipment for public service units with low revenue.

Depreciation funds and proceeds from the disposal of assets (after deducting disposal costs) sourced from borrowed and mobilized capital shall be used to repay borrowed and mobilized capital. If the borrowed and mobilized capital has been fully repaid, the remaining amount shall be added to the Development Fund for Public Services.

Article 11. Provisions on Opening Transaction Accounts.

Public service units shall open transaction accounts in accordance with Decision No. 30/2005/QĐ-BTC dated May 26, 2005 of the Minister of Finance on the system of opening and using accounts at the State Treasury and the following provisions:

- Public service units shall open accounts at the State Treasury to conduct transactions through the State Treasury for budgetary funds as prescribed by the State Budget Law, including: state budget funds allocated; revenues, expenses, and fees belonging to the state budget, and other state budget items (if any).

- Public service units may open accounts at banks or the State Treasury to reflect revenues and expenditures from service activities.

Article 12. Provisions on Establishing Internal Expenditure Regulations.

1. The public service unit shall be responsible for establishing the Internal Expenditure Regulation to implement uniformly within the unit and serve as the basis for higher-level supervisory bodies, financial agencies, and State Treasury to conduct supervision, inspection, and expenditure control in accordance with regulations.

2. Principles, contents, and scope of establishing internal expenditure regulations:

2.1. The Internal Expenditure Regulation shall be issued by the head of the public service unit after widely and democratically discussing within the unit and obtaining the consensus of the unit's trade union organization.

2.2. The Internal Expenditure Regulation must be submitted to higher-level supervisory bodies, same-level financial agencies for monitoring and supervising its implementation; and sent to the State Treasury where the unit has opened transaction accounts as the basis for expenditure control.

2.3. If the higher-level supervisory body discovers that the Internal Expenditure Regulation of the subordinate public service unit contains provisions inconsistent with legal regulations and this Regulation, it must issue an opinion requesting the unit to adjust such provisions to be consistent within fifteen days from the date of receipt of the Regulation; simultaneously sending the same to the same-level financial agency and the State Treasury where the unit has opened transaction accounts.

2.4. The content of the Internal Expenditure Regulation includes provisions on systems, standards, norms, and unified expenditure levels within the unit, ensuring the completion of assigned tasks, being suitable to the specific activities of the unit, using funds economically and effectively, and enhancing management work.

2.5. For expenditure items within the scope of establishing the Internal Expenditure Regulation (management expenses, regular business expenses) which already have systems and standards set by competent state authorities (except certain standards, norms, and expenditure items specified in Point 2.7 of this Clause), the head of the public service unit may:

- For public service units self-financing their operational costs and those partially self-financing their operational costs: The unit head may decide on management and business expense levels higher or lower than those prescribed by competent state authorities.

- For public service units fully funded by the state budget: The unit head may decide on expense levels not exceeding those prescribed by competent state authorities.

2.6. For necessary expenditure items and levels within the scope of establishing the Internal Expenditure Regulation, but for which competent state authorities have not yet issued regulations, the unit head may establish expenditure levels for each task and work content within the unit's financial resources.

2.7. Certain standards, norms, and expenditure levels that public service units must strictly adhere to national regulations include:

- Standards and norms for vehicle usage;

- Standards and norms for office space;

- Standards and norms for official telephones at home and mobile phones;

- Travel expense regulations for foreign trips;

- Regulations for hosting foreign guests and international conferences in Vietnam;

- Management and utilization regulations for national target program funds;

- Regulations for managing and utilizing funds for urgent tasks assigned by competent authorities;

- Policies and regulations for streamlining staffing (if applicable);

- Management and utilization regulations for counterpart project funds and aid funds from the state budget;

- Management and utilization regulations for basic construction investment funds, procurement and major repair funds for fixed assets serving public service activities according to approved projects by competent authorities;

Special national science and technology task funds at the national, ministry, and sector level shall follow the guidelines of the Ministry of Finance and the Ministry of Science and Technology.

2.8. Based on the nature of work, volume of use, and previous year's implementation situation, the unit head decides on the cost allocation method for each individual, department, and dependent unit, such as office supplies, telephone, fuel, electricity, water, travel expenses; savings from cost allocation are determined by the difference between income and expenditure and distributed and utilized according to prescribed regulations.

2.9. When implementing the Internal Expenditure Regulation, the unit must ensure legal and valid vouchers and invoices as required, except for office supply payments, travel expense payments under the cost allocation system stipulated in the Internal Expenditure Regulation, and monthly telephone bill payments for official home phones and mobile phones according to current legal guidelines and instructions from the Ministry of Finance.

2.10. Public service units are not allowed to use unit funds to purchase equipment, household items, or assets for personal use at home or lend them out in any form (except for official home phones according to prescribed regulations).

Article 13. Annual reporting system:

1. Annually, heads of public service units must report to their direct higher-level supervisory bodies (as per Appendix No. 05 attached to this Decision) on the results of exercising autonomy and financial responsibility before January 31 of the following year.

2. Heads of systems and agencies under the Ministry of Finance must compile reports from public service units and submit them to the Ministry of Finance (Financial Administration Department) before February 15 of the following year (as per Appendix No. 06 attached to this Decision) for compilation and reporting to the Minister of Finance.

Article 14. Provisions on budget preparation, compliance, accounting records, and settlement.

Public service units and higher-level supervisory bodies must comply with the Law on State Budget, Accounting Law, guiding documents of these laws, internal financial management regulations of the Ministry of Finance, and specific guidance as follows:

1. Establishment of budget projections:

1.1. Budget preparation of public service units:

a. Preparation of the first-year budget during the stable period for classifying public service units:

Based on the classification of public service units as stipulated in Article 2 of the Regulation, assigned functions and tasks, annual plan objectives, current financial expenditure systems, operational outcomes, and financial revenue and expenditure situations of the previous year (excluding extraordinary and non-recurring factors), the unit prepares the annual revenue and expenditure budget; the amount of funds requested to be guaranteed by the state budget for regular operations; specifically:

- Regular revenue and expenditure budget:

+ Revenue budget:

For fees and charges: Based on the objects of collection, the amount of collection, and the ratio retained for expenditure as prescribed by competent state agencies.

For revenue from public services: Based on the service activity plan and the level of collection determined by the unit or according to economic contracts signed by the unit.

+ Budgeted expenditures: The unit prepares detailed budget estimates for each type of task such as regular expenditures to perform assigned functions and tasks; expenditures for fee and charge collection activities; service activity expenditures in accordance with current regulations and this Circular.

- Non-recurring budgeted expenditures: The unit prepares budget estimates for each non-recurring expenditure task in accordance with current state regulations.

The revenue and expenditure budget of the unit must include explanations of the basis for calculation, detailed for each revenue and expenditure item, sent to the Ministry of Finance (Department of Financial Management) or submitted to the direct superior management agency for review and consolidation to be sent to the Ministry of Finance (Department of Financial Management).

b. Prepare the budget for the next two years during the stabilization period:

- For regular revenue and expenditure budgets: Based on state regulations, the public service unit prepares the regular revenue and expenditure budget for the planned year. Among which, the state budget funds ensuring regular operations (for self-financing public service units or those fully funded by the state budget) are set at the level of state budget funds ensuring regular operations in the previous year, plus (+) or minus (-) the funds for increased or decreased tasks in the planned year as decided by the competent authority.

- For non-recurring budgeted expenditures, the unit prepares budget estimates for each expenditure task in accordance with current state regulations.

The revenue and expenditure budget of the public service unit is sent to the Ministry of Finance (Department of Financial Management) or submitted to the direct superior management agency for review and consolidation to be sent to the Ministry of Finance (Department of Financial Management).

1.2. Preparation of the budget by the superior management agency:

a. Preparation of the first year's budget during the stabilization period:

Based on the revenue and expenditure budget of the first year during the stabilization period prepared by the unit, the superior management agency prepares a consolidated budget based on the classification of public service units as stipulated in Article 2 of this Regulation and the level of state budget funds ensuring regular and non-regular operations for the unit, and sends it to the Ministry of Finance (Department of Financial Management) for review and consolidation in accordance with current regulations.

b. Preparation of the budget for the next two years during the stabilization period:

Annually, during the classification period of public service units, the superior management agency reviews and consolidates the revenue and expenditure budget of the public service unit, and sends it to the Ministry of Finance (Department of Financial Management) for review and consolidation in accordance with current regulations.

2. Allocation of the state budget revenue and expenditure budget:

2.1. Allocation of the first year's budget during the stabilization period:

Based on the state budget revenue and expenditure budget allocated by the competent authority, the Ministry of Finance (Department of Financial Management) prepares a distribution plan for review by the financial agency; after obtaining a unified opinion from the financial agency, the Ministry of Finance (Department of Financial Management) allocates the budget to the unit for implementation:

a) Regular revenue and expenditure budget:

- Revenue budget allocation:

+ Total fee and charge revenue

+ Amount of fees and charges retained for use by the unit in accordance with the regulations of the competent state agency for each type of fee and charge.

+ Amount of fees and charges to be remitted to the state budget.

- Expenditure budget allocation:

+ Allocation of expenditure from retained fee and charge revenue for use in accordance with the regulations of the competent state agency for each type of fee and charge.

+ Allocation of regular expenditure from state budget funds: Based on the approved state budget funds ensuring regular operations in the first year of the stabilization period; the Ministry of Finance or the superior management agency allocates regular expenditure to the unit within the scope of the state budget expenditure allocated by the competent authority. The allocated regular expenditure is distributed into the "Other Expenditures" category of the state budget.

For service activities: Public service units prepare their own revenue and expenditure budget for management in the year.

b) For non-recurring expenditure budget: The supervisory agency allocates the budget to the unit for implementation in accordance with current regulations.

The non-recurring expenditure budget is allocated and distributed into four categories of expenditure in the state budget according to current regulations.

2.2. Allocation of the budget for the next two years during the stabilization period:

a) For regular revenue and expenditure budget:

Annually, during the classification period of public service units, the Ministry of Finance (Department of Financial Management) and the superior management agency decide to allocate the revenue and expenditure budget to the public service unit in accordance with current regulations.

The regular expenditure budget provided by the state budget is allocated at the level of the previous year and additional funds (including funds for increased tasks) or reduced according to the decision of the competent authority, within the scope of the state budget expenditure allocated by the competent authority, after obtaining a unified written opinion from the financial agency.

b) For non-recurring expenditure budget: The Ministry of Finance (Department of Financial Management) and the supervisory agency allocate the budget to the unit for implementation in accordance with current regulations.

2.3. Implementation of the revenue and expenditure budget:

For the regular expenditure budget allocated by the competent authority, the public service unit may adjust the expenditure items to suit the actual situation of the unit, while submitting to the superior management agency and the State Treasury where the unit has an account for monitoring, payment, and settlement. At the end of the fiscal year, unused revenue from public services and the regular expenditure budget can be carried over to the following year for continued use.

For non-recurring expenditures, adjustments to expenditure items, expenditure categories; unused funds at the end of the year or funds not fully utilized shall be implemented in accordance with the State Budget Law and guiding documents of the Ministry of Finance.

2.4. Accounting entries: Public service units implement accounting entries into the revenue and expenditure categories of the state budget in accordance with current regulations. In addition, certain expenditure items are specifically guided as follows:

- For units that self-fund their operational costs or partially fund their operational costs: The payment for increased income to employees shall be recorded under Item 108 "Payments to Individuals", sub-item 03; the establishment of funds shall be recorded under Item 134 "Other Expenses", corresponding sub-item.

- For units whose operational costs are fully funded by the state budget: The payment for increased income to employees shall be recorded under Item 108 "Payments to Individuals"; the reward expenses shall be recorded under Item 104 "Bonuses"; welfare and additional subsidies outside general policies for those voluntarily retiring during the process of labor restructuring shall be recorded under Item 105 "Collective Welfare"; the establishment of the Income Stability Reserve Fund shall be recorded under Item 134 "Other Expenses", sub-item 16 according to the State Budget Manual.

2.5. Settlement:

Units must prepare quarterly accounting reports and annual settlement reports in accordance with current laws and regulations of the Ministry of Finance.

CHAPTER III. IMPLEMENTATION

Article 15Implementation shall be carried out in accordance with Article XI of Circular No. 71/2006/TT-BTC dated August 9, 2006, issued by the Ministry of Finance, and the following specific guidelines:

1. The procedure for developing and deciding on the autonomy and responsibility scheme for specific public service units is as follows:

1.1. In the first quarter of 2007, all public service units under the Ministry of Finance must develop an autonomy and responsibility scheme (as per Appendix No. 02 attached to this Decision) for the period 2007-2009 to be submitted to the immediate superior supervisory authority; the implementation process shall follow Clause 1 of Article 3 of this Regulation.

1.2. Within fifteen days from receiving the autonomy and responsibility scheme of subordinate public service units, the head of the superior supervisory authority shall review, examine, and consolidate (as per Appendix No. 3 attached to this Decision) and send it to the Ministry of Finance (Department of Financial Management) for consolidation and submission to the financial authority for examination and comments.

1.3. After reaching a consensus with the financial authority: The Minister of Finance shall issue a decision granting financial autonomy and responsibility to public service units directly managed by the Ministry of Finance; the heads of systems and authorities shall decide on granting financial autonomy and responsibility to public service units under their management; the heads of higher-level public service units shall decide on financial autonomy and responsibility for public service units under their management (as per Appendix No. 4 attached to this Decision).

2. Public service units under the Ministry of Finance shall establish and promulgate internal expenditure regulations (after receiving the decision granting financial autonomy and responsibility from the superior supervisory authority), effective from January 1, 2007 (internal expenditure regulations shall be established in accordance with the guidance provided in Appendix No. 01 attached to this Decision).

Article 16. Responsibilities and powers of the heads of units:

1. Heads of public service units:

- The head of a public service unit is responsible to the immediate superior supervisory authority and is legally accountable for decisions made regarding the exercise of autonomy over tasks, organizational structure, staffing, and finance of the unit.

- Implement national regulations on environmental protection, social security, and ensuring national safety and confidentiality in the unit's activities. Fulfill obligations to the State and implement preferential policies for beneficiaries.

- Develop an implementation plan for the autonomy and responsibility system in accordance with Circular No. 71/2006/TT-BTC dated August 9, 2006, issued by the Ministry of Finance, and the guidance provided in this Regulation, and report to the superior financial supervisory authority for review.

- Establish and implement internal expenditure regulations in accordance with the guidance provided in Article VII of Circular No. 71/2006/TT-BTC dated August 9, 2006, issued by the Ministry of Finance, and the guidance provided in this Regulation.

- Review the implementation plan for the autonomy and responsibility system for subordinate public service units. Grant financial autonomy and responsibility to subordinate public service units after obtaining a consensus from the superior financial supervisory authority.

- Organize the management and utilization of cadres and civil servants in accordance with the law; ensure wage, salary, social insurance, health insurance, allowances, and training programs for the staff of the unit as stipulated by the law.

- Implement accounting, statistical, and asset management procedures in compliance with the law, accurately and promptly reflecting all revenues and expenditures of the unit in accounting books. Adhere to reporting requirements for public service activities as currently prescribed.

- Implement grassroots democracy and financial transparency regulations as currently prescribed.

- Comply with Party and State regulations concerning the activities of Party and mass organizations. Have the responsibility to coordinate and create conditions for these organizations to participate in supervising and managing all aspects of the unit's operations.

2. Head of the Department of Financial Management:

- Review the autonomy and responsibility scheme for finance, and submit to the Minister of Finance for issuance of the decision granting financial autonomy and responsibility to public service units directly managed by the Ministry of Finance.

- Provide opinions on the decision granting financial autonomy and responsibility for: public service units under various agencies and systems; public service units directly established under public service units managed directly by the Ministry of Finance.

- Examine and provide opinions on internal expenditure regulations of public service units directly managed by the Ministry of Finance.

- Develop criteria for evaluating the completion of assigned tasks for public service units under the Ministry of Finance.

3. Heads of systems and agencies under the Ministry of Finance:

- Review the autonomy and responsibility scheme for finance for public service units under their management.

- Decide on granting financial autonomy and responsibility based on a consensus reached with the Ministry of Finance (Department of Financial Management).

- Review and provide comments on the decision to grant autonomy and financial responsibility to事业单位由其管理的事业单位。

- Review and provide comments on the internal expenditure regulations of the public institutions under its management。

- Establish criteria for evaluating the completion of assigned tasks by subordinate public institutions。

Units and organizations under the Ministry of Finance and public institutions shall implement in accordance with the guidelines set forth in this Regulation. In case of difficulties during implementation, units shall report to the Ministry of Finance (Department of Financial Administration) for review and study, and the Minister of Finance will be reported to for appropriate amendments and supplements。