Nghị định số 60/2021/NĐ-CP của Chính phủ: Quy định cơ chế tự chủ tài chính của đơn vị sự nghiệp công lập

DECREE

PRESCRIBING FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS

Pursuant to the Law on Government Organization dated June 19, 2015 and the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Pricing dated June 20, 2012;

Pursuant to the Law on management and use of public assets dated June 21, 2017;

Pursuant to the Law on Fees and Charges dated November 25, 2015;

At the request of the Minister of Finance;

The Government promulgates a Decree prescribing the financial autonomy of public administrative units.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree introduces the mechanism for exercising the financial autonomy of public administrative units in the following sectors: education and training; vocational training; healthcare - population; culture, sports and tourism; information and communications; science and technology; economic activities and other sectors.

Article 2. Regulated entities

1. Public administrative units that are established by competent authorities in accordance with regulations of law, have legal status and their own seals and accounts as prescribed by law, and provide public administrative services or state management services (hereinafter referred to as “public administrative units”).

2. Public administrative units affiliated to Ministry of National Defence, Ministry of Public Security, Vietnam Television, Voice of Vietnam, Vietnam News Agency; public administrative units affiliated to public administrative units shall comply with regulations herein and other relevant laws.

3. Public administrative units affiliated to political organizations or socio-political organizations shall be allowed to apply regulations herein and other relevant laws.

4. Public administrative units established under Agreements and commitments between the Government of Vietnam and the Governments of foreign countries or international organizations shall exercise the financial mechanism according to such commitments, international treaties or Decisions of the Prime Minister.

Article 3. Definitions

For the purposes of this Decree, the terms below are construed as follows:

1. “financial autonomy mechanism of public administrative units” means a set of regulations on autonomy to the implementation of list of public administrative services; prices, fees and roadmap for pricing public administrative services; classification of financial autonomy levels; autonomy to use financial sources; autonomy to perform joint-venture, cooperation or association activities; management and use of public assets and other relevant regulations.

2. “public administrative services” include administrative services in the fields of education and training; vocational training; healthcare - population; culture, sports and tourism; information and communications; science and technology; economic activities and other sectors (including: agriculture and rural development, natural resources and environment, transport, industry and trade, construction, justice, labour, war invalids and social affairs, and other services).

3. “public administrative services funded by state budget" include basic and essential public administrative services and those with specific characteristics of some business lines or sectors which are included in the list issued by competent authority and on which all expenses are covered or supported by the Government.

4. “public administrative services not funded by state budget" include public administrative services which are rendered with private sector involvement; of which the prices are determined by service providers according to the market mechanism or by the Government in accordance with regulations of law on pricing or other relevant specialized laws, but must be adequate for covering expenses and rational accumulations of service providers; and which are not subsidized by the Government.

Article 4. Public administrative services funded by state budget

1. Funding derived from state budget for public administrative units shall be used to directly support the poor or people benefiting from state policies when they use basic and essential public administrative services; the average funding provision shall be replaced by the mechanism that the State shall place order or assign qualified units to provide public administrative services based on the quality of their provided services or organize bidding for provision of public administrative services.

The allocation of state budget for public administrative services funded by state budget shall be carried out according to current regulations on decentralization of power to manage state budget set out in the Law on state budget, and conformable with the state budget balancing capability and the revised roadmap for proper determination of costs constituting service prices as prescribed by competent authorities.

2. List of public administrative services funded by state budget

a) Basic and essential public services as defined in specialized laws and the Law on state budget, including: preschool education services, general education services; preventive medicine, grassroots healthcare, hospitals in disadvantaged areas, border and island areas; diagnosis and treatment of leprosy, tuberculosis, mental diseases; basic research; culture, traditional folk arts, provision of training for national sport coaches and athletes; care of people with meritorious services to the revolution, social protection, and other services included in the list of public administrative services funded by state budget, sorted by sectors, provided in Appendix I enclosed herewith.

b) Ministries, ministerial agencies and Governmental agencies (hereinafter referred to as “ministries and central agencies”), and People’s Committees of provinces or central-affiliated cities (hereinafter referred to as “provincial People’s Committees”) shall continue adopting the list of public administrative services funded by state budget promulgated by competent authorities if that list is conformable with Point a of this Law, and concurrently review that list for making necessary amendments.

3. Power to amend or promulgate the detailed list of public administrative services funded by state budget

Pursuant to specialized laws and provisions herein, ministries, central agencies and provincial People’s Committees shall perform the following tasks:

a) Ministries and central agencies shall play the leading role and cooperate with the Ministry of Finance and relevant agencies in requesting the Prime Minister to decide amendments or promulgate the list of public administrative services funded by state budget within their delegated management;

b) Specialized agencies affiliated to provincial People's Committees shall request provincial People's Committees to request provincial People's Councils to amend or promulgate the list of public administrative services funded by state budget within their delegated management and according to the capabilities of local government state budget, and submit the list to the Ministry of Finance and supervisory ministries for monitoring during the application of the list.

Article 5. Prices, fees of public administrative services funded by state budget

1. Prices of public administrative services funded by state budget shall be determined according to law regulations on pricing, economic-technical and cost norms adopted by competent authorities and the roadmap for calculating prices of public administrative services funded by state budget as prescribed in Clause 3 of this Article. To be specific:

a) Salary costs constituting the pubic administrative service price shall be calculated by taking into account the statutory pay rate, salary coefficients by payroll, salary grade, working position, salary-based contributions and allowances according to regulations and policies applicable to public administrative units or the working position- or title-based salary and salary-based allowances as prescribed by the State; labour norms introduced by ministries, central agencies or provincial People's Committees with their jurisdiction.

b) Depreciation of fixed assets shall comply with regulations on management and use of public assets and the roadmap for inclusion of fixed asset depreciation costs in public administrative service prices adopted by competent authorities.

2. In cases where economic - technical and cost norms are not available, prices of public administrative services funded by state budget shall be determined in accordance with law regulations on pricing or according to the average of rational expenses in the previous 03 years.

3. Roadmap for pricing public administrative services funded by state budget:

a) By the end of 2021, the fundamentals of the roadmap for pricing public administrative services (salary costs, direct expenses, administrative expenses, fixed asset depreciation costs, and other expenses must be fully calculated according to law regulations on pricing) are completed. In cases where another roadmap needs to be developed due to objective difficulties, ministries, central agencies and provincial People's Committees shall play the leading role and request the Prime Minister to consider issuing decisions after obtaining opinions from the Ministry of Finance.

With regard to prices of medical services rendered by public healthcare establishments, education and training, and vocational training services at public educational and training institutions, and public vocational training institutions: If the roadmap specified in Point a of this Clause cannot be applied, Ministry of Health, Ministry of Education and Training, Ministry of Labor, War Invalids and Social Affairs shall play the leading role and request the Prime Minister to request competent authorities to consider issuing decisions after obtaining opinions from the Ministry of Finance.

b) With regard to public administrative services ordered by the Government at the prices to which a full amount of costs have been added, such prices shall apply.

4. Pricing method and competent pricing agencies shall be determined in accordance with law regulations on pricing.

Pursuant to law regulations on pricing and the roadmap for pricing public administrative services specified in Clauses 1, 2 and 3 of this Article, and based on the state budget balancing capability and market prices as well as economic - social situation in each period, ministries, central agencies and provincial People's Committees shall set specific prices of public administrative services within their jurisdiction or request competent authorities to set such prices.

Public administrative units shall decide specific price of each type of services within the framework of public administrative service prices stipulated by competent authorities. In case competent authorities set specific prices of public administrative services, public administrative units shall charge services at the stipulated prices.

5. Public administrative service fees

Public administrative services specified in the list of fees to be collected shall comply with law regulations on fees and charges. Public administrative units shall be entitled to collect fees according to the fee levels stipulated by competent authorities.

Article 6. Public administrative services not funded by state budget

1. Public administrative services not funded by state budget include:

a) Services which are not included in the list of public administrative services funded by state budget specified in Article 4 hereof;

b) Services provided by public administrative units from their business, joint-venture, cooperation and association activities which are conformable with their specialized fields in order to meet social needs in accordance with relevant laws.

2. Public administrative units are given autonomy to use their assets and resources for providing public administrative services not funded by state budget which are conformable with their specialized fields as designated by competent authorities according to the following rules:

a) They must comply with regulations of law;

b) They are allowed to decide service prices which must be enough for covering expenses and ensuring reasonable accumulated amounts; In case the services provided are included in the list of goods and services whose prices are set by the Government, such services shall be charged at specific prices or within the price bracket stipulated by competent authorities.

3. Public administrative units are given autonomy to decide expenses incurred from their provision of public administrative services which must be reasonable and lawful, and included in their regulations on internal expenses; shall organize accounting works in accordance with regulations of Law on accounting; open accounting books, use and manage documents/records, do bookkeeping works and monitor to ensure adequate and accurate recording of revenues and allocation of funding for covering all reasonable expenses associated with each activity; carry out registration, declare and pay all taxes and other payables to state budget (if any) in accordance with regulations of law; adequately and periodically carry out internal audits; accurately and punctually submit financial statements to their superior agencies and relevant agencies as prescribed. Heads of public administrative units shall assume responsibility for efficient management and use of public assets and land allocated by the Government, and their financial sources as prescribed by law.

4. In case the sum of revenues earned from the provision of public administrative services not funded by state budget is smaller than expenses incurred, the public administrative unit shall use its lawful funding sources for covering the deficit, and no funding from state budget shall be provided.

Article 7. Management and use of public investment capital

1. Public administrative units shall manage and use public investment capital in accordance with regulations of the Law on public investment and relevant laws.

2. The power to evaluate, approve and assign mid-term and annual investment plans to public administrative units in accordance with regulations of the Law on public investment and relevant laws.

Article 8. Management and use of public assets

1. Public administrative units shall manage, use and apply standards and norms for use of public assets in accordance with regulations of the Law on management and use of public assets.

2. Public administrative units shall make depreciation and amortization of fixed assets in accordance with regulations of the Law on management and use of public assets; fixed asset depreciation amounts shall be paid to their funds for development of administrative operations.

With regard to assets acquired from borrowed or mobilized capital, fixed asset depreciation amounts shall be used for repaying debts. The remaining fixed asset depreciation amounts after paying debts shall be paid to the fund for development of administrative operations of the public administrative unit. If the fixed asset depreciation amounts are not enough for repaying debts, the fund for development of administrative operations shall be used for repaying debts.

Assets established from the fund for development of administrative operations and other lawful financial sources of the public administrative unit shall be considered as the State assets and capital.

3. Pursuant to regulations of the Law on management and use of public assets and regulations on financial management set out in this Decree, heads of public administrative units shall promulgate regulations on management and use of public assets within their delegated management.

Article 9. Classification of levels of financial autonomy of public administrative units

1. A public administrative unit self-covering both recurrent and investment expenses (hereinafter referred to as “group-1 unit”) is the one meeting one of the following conditions:

a) The public administrative unit has a rate of self-covering of recurrent expenses which is determined according to the plan specified in Article 10 hereof is equal to or higher than 100%; the total amount of self-covered investment expenses is equal to or higher than its total amount of depreciation and amortization of fixed assets.

Total amount of self-covered investment expenses includes the followings:

- Estimated amounts paid to the fund for development of administrative operations in the planning year or the average of contributions paid to the fund for development of administrative operations in the previous 05 years;

- The amount of collected fees retained for covering recurrent expenses as prescribed.

b) The public administrative unit provides public administrative services which are not funded by state budget and of which prices are determined according to the market mechanism, and include adequate fixed asset depreciation costs and accumulated amounts for covering investment expenses.

2. A public administrative unit self-covering recurrent investment expenses (hereinafter referred to as “group-2 unit”) is the one meeting one of the following conditions:

a) The public administrative unit has a rate of self-covering of recurrent expenses which is determined according to the plan specified in Article 10 hereof is equal to or higher than 100%, and has not yet covered its investment expenses with funding from its fund for development of administrative operations, collected fees retained as prescribed by law regulations on fees and charges, and other lawful financial sources as prescribed by law;

b) The public administrative unit provides public administrative services which are included in the list of public administrative services funded by state budget, or provides public administrative services in the form of order placement or bidding at the price to which a full amount of costs has been added (excluding fixed asset depreciation costs).

3. The public administrative unit self-covering part of its recurrent expenses (hereinafter referred to as “group-3 unit”) is a unit that has a rate of self-covering of recurrent expenses which is determined according to the plan specified in Article 10 hereof is from 10% to less than 100%, and provides public administrative services in the form of order placement or bidding at the price to which expenses have not been fully added, and is classified as follows:

a) The public administrative unit self-covering 70% to less than 100% of recurrent expenses;

b) The public administrative unit self-covering 30% to less than 70% of recurrent expenses;

c) The public administrative unit self-covering 10% to less than 30% of recurrent expenses.

4. The public administrative units of which recurrent expenses are covered by state budget (hereinafter referred to as “group-4 unit”) include:

a) The public administrative unit has a rate of self-covering of recurrent expenses which is determined according to the plan specified in Article 10 hereof is less than 10%;

b) The public administrative unit does not earn revenues from administrative operations.

Article 10. Determination of rate of self-covering of recurrent expenses

1. Calculation formula:

Where:

a) A includes the revenues specified in Point a, Point b Clause 1, Clause 2, Clause 3 and Clause 5 Article 11; Point a, Point b Clause 1, Clause 2, Clause 3, Clause 5 Article 15; Clause 2 Article 19 hereof. For the revenues specified in Point b Clause 2 Article 11; Point b Clause 2 Article 15 and Clause 2 Article 19, only the positive difference between revenues and expenses (after fulfilling obligations to the Government) shall be determined; revenues specified in Clause 3 Article 11 and Clause 3 Article 15 exclude expenses for non-recurrent tasks.

b) B includes the expenses specified in Article 12, Article 16, Article 20 hereof; excludes the expenses incurred from the provision of public administrative services not funded by state budget as prescribed in Article 6 hereof.

2. The values A and B specified in Clause 1 of this Article shall be calculated on the basis of the estimates of revenues and expenses of the year in which the plan to exercise financial autonomy is developed and submitted to competent authorities.

Chapter II

SPECIFIC PROVISIONS ON FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS

Section 1. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS SELF-COVERING BOTH RECURRENT AND INVESTMENT EXPENSES (GROUP-1 UNITS) AND PUBLIC ADMINISTRATIVE UNITS SELF-COVERING RECURRENT INVESTMENT EXPENSES (GROUP-2 UNITS)

Article 11. Financial sources

1. Funding from state budget

a) Funding for provision of public administrative services which are included in the list of public administrative services funded by state budget, including funding for public administrative services provided in the form of order placement or bidding as prescribed;

b) Funding for performance of science and technology tasks when being selected or assigned by competent authorities in accordance with regulations of law on science and technology;

c) Funding for covering recurrent expenses incurred from performance of tasks assigned by the Government (if any), including: Funding for implementation of national target programs; reciprocal capital for implementation of foreign-invested projects allocated under decisions issued by competent authorities; funding for performance of tasks assigned by competent authorities; funding allocated by competent authorities to public administrative units for provision of public administrative services funded by state budget in case economic-technical norms and unit prices are not available for placing orders;

d) Investment and development funding for infrastructural development investment projects which have been approved by competent authorities in accordance with regulations of the Law on public investment (if any). With regard to group-1 units, the Government shall consider allocating funding for in-progress infrastructural development investment projects under decisions issued by competent authorities or for new infrastructural development investment projects which are included in the medium-term public investment plan approved by competent authorities. Public administrative units shall manage and use investment and development funding according to the provisions of Article 7 hereof.

2. Revenues earned from administrative operations

a) Revenues from provision of public administrative services;

b) Revenues from business operations; joint-venture, cooperation or association activities which are performed in accordance with regulations of law and under specific schemes approved by competent authorities in conformity with the functions and tasks of the public administrative unit;

c) Revenues from leasing of public assets: The unit must fully comply with regulations of the law on management and use of public assets and must have the scheme for leasing of public assets approved by competent authorities.

3. Collected fees which are retained by the public administrative unit for covering its expenses in accordance with regulations of the Law on fees and charges.

4. Borrowed capital; aids and grants as prescribed by law.

5. Other sources of revenues as prescribed by law (if any).

Article 12. Recurrent expenses covered by funding which the autonomy to use is delegated to public administrative units

A public administrative unit is entitled to take its own initiative in taking advantage of financial sources which it is granted the autonomy to use as prescribed in Point a Clause 1, Clause 2 and Clause 3 (revenues retained for covering recurrent expenses incurred from fee collection) and Clause 5 Article 11 hereof for covering its recurrent expenses. Some expenses shall be specified as follows:

1. Salaries and salary-based contributions

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW dated May 21, 2018 of the seventh plenum of the 12^th Central Executive Committee on reform of salary policies for officials, public employees, armed forces and workers of enterprises (hereinafter referred to as “Resolution No. 27-NQ/TW”) are not available, the public administrative unit shall pay scale-, rank- or position-based salaries, salary-based contributions and allowances as stipulated in Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any). Whenever the Government makes any changes to salary policies, the public administrative unit shall use its own revenues for covering the increased salary expenses; no additional funding shall be granted by state budget.

b) When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall comply with the followings:

- For a group-1 unit: Based on its financial status, the unit shall exercise the autonomy to pay salary expenses according to business results as an enterprise (wholly state-owned rank-I single-member limited liability company); decide the salary amounts paid to its public employees and workers; and pay wages under employment contracts (if any).

- For a group-2 unit: Based on its financial status, the unit shall exercise the autonomy to pay salary expenses according to business results as an enterprise (wholly state-owned rank-II single-member limited liability company); decide the salary amounts paid to its public employees and workers; and pay wages under employment contracts (if any).

Group-1 and group-2 units shall determine their planned salary fund, realized salary fund and allocate salary fund according to guidelines adopted by the Ministry of Labor, War Invalids and Social Affairs; have salary plans approved by competent authorities as the basis for developing their annual planned budget for paying salaries to their public employees and workers provided that interests of workers and funds for development of administrative operations are balanced. If the positive difference between revenues and expenses is smaller than that specified in the approved plan to exercise financial autonomy, the unit shall take initiative to reduce the realized salary fund by a percentage in proportion to the decrease in the positive difference between revenues and expenses provided that salaries paid to public employees and workers shall not be lower than those stipulated in Government’s regulations on salaries applicable to public administrative units.

Based on the realized salary fund, the public administrative unit is allowed to establish a provision for inclusion in the succeeding year’s salary fund. The annual provision is decided by the unit and must not exceed 17% of the realized salary fund. The unit must ensure that its difference between revenues and expenses is positive after making the provision. Otherwise, the provision must be smaller than 17%. If the unit does not use up the previous year’s salary fund provision within 06 months from the end of the fiscal year, the provision shall be reversed.

Whenever the Government makes any changes to salary policies, the public administrative unit shall use its own revenues for covering the increased salary expenses; no additional funding shall be granted by state budget. Payment of salaries to employees of the unit shall be made according to the principle that quantity, quality and efficiency in task performance must be taken into consideration in accordance with regulations of law and its regulations on internal expenses.

2. Expenses on employment of experts, scientists or talents for performing tasks of authorities and units. Based on actual demands, actual market prices and its financial capacity, the unit is allowed to decide specific spending limits corresponding to assigned tasks and include them in its regulations on internal expenses.

3. Operating and managerial expenses

a) Regarding expenses specified in economic-technical norms and of which spending limits are stipulated by competent authorities, based on actual demands, market prices actually applied in the province where the public administrative unit is located, and its financial capacity, the unit shall decide spending levels according to its regulations on internal expenses and take full responsibility for ensuring their service quality as prescribed by the Government;

b) Regarding expenses which are not yet stipulated by competent authorities, based on actual conditions, the public administrative unit shall develop spending levels in conformity with its financial sources and specify them in its regulations on internal expenses. Head of the public administrative unit shall assume responsibility for his decision.

4. Expenses on performance of fee collection tasks as prescribed by the Law on fees and charges; expenses on service provision.

5. Provisions made according to regulations on provisions made by enterprises, unless special funds for risk management must be established in accordance with specialized laws (if any).

6. Payment of loan interests as prescribed by law (if any).

7. Other expenses as prescribed by law (if any).

Article 13. Recurrent expenses covered by funding which the autonomy to use is not delegated to public administrative units, and expenses on performance of science and technology tasks

1. Recurrent expenses covered by funding which the autonomy to use is not delegated to the public administrative unit include:

a) Expenses on performance of tasks assigned by the Government as prescribed in Point c Clause 1 Article 11 hereof in accordance with regulations of the Law on State Budget and relevant laws on each funding source;

b) Expenses on procurement of assets and major repairs serving fee collection which are covered by retained amounts of collected fees (retained amounts used for procurement and major repair of assets, machinery and equipment serving the fee collection);

c) Expenses covered by borrowed capital, aids and grants as prescribed by law.

2. Expenses on performance of science and technology tasks: If a public administrative unit is selected or directly assigned by a competent authority to perform science and technology tasks, it shall manage and use funding in accordance with regulations of allocation of predetermined funding for performance of science and technology tasks funded by state budget.

3. Public administrative units shall strictly comply with Government’s regulations on allowances for overseas business trips, reception of foreign guests and international seminars organized in Vietnam.

Article 14. Distribution of incomes generated within a year

1. At the end of the fiscal year, after posting all revenues and recurrent expenses covered by funding which the autonomy to use is delegated to the public administrative unit into accounting records, making depreciations of fixed assets, paying taxes and other amounts payable to state budget as prescribed, the positive difference between revenues and expenses (if any) shall be used in the following order:

a) Contribution to the fund for development of administrative operations: at least 25%;

b) Contribution to the fund for supplementation of income in case the public administrative unit pays salaries according to Point a Clause 1 Article 12 hereof: a group-1 unit shall decide the contribution amount (which is not restricted); a group-2 unit shall make the contribution amount which is restricted to twice less than the sum of scale-, rank- or position-based salary fund, salary-based contributions and allowances as stipulated by the Government. In case the public administrative unit pays salaries according to Point b Clause 1 Article 12 hereof, no contribution is made to the fund for supplementation of income;

c) Contribution to reward fund and welfare fund: Total amounts contributed to both funds shall not exceed the sum of 3-month salaries or wages paid by the unit within a year;

d) Contributions to other funds as prescribed by specialized laws;

dd) The remaining positive difference between revenues and expenses (if any), after making contributions to all funds as prescribed, shall be paid to the fund for development of administrative operations.

2. Use of funds

a) The fund for development of administrative operations shall be used for investing in construction, upgrade and repair of facilities, purchasing working equipment and instruments; improving capability of administrative operations; covering expenses on application of technological and scientific advances; organizing professional training for public employees and workers; purchasing copyrighted works and programs; making contribution to joint venture, cooperation or association with domestic and foreign organizations or individuals to perform public administrative operations according to the assigned functions and tasks, and covering other expenses (if any);

b) The fund for supplementation of income shall be used for supplementing incomes of public employees and workers within a year and making provisions for supplementing incomes of public employees and workers in the following year in case their incomes are reduced. Spending on supplementation of incomes of public employees and workers of a public administrative unit shall stick to the principle that quantity, quality and efficiency in task performance must be taken into consideration;

c) The reward fund shall be used for offering year-end bonus, periodic and unplanned rewards to collectives or individuals inside and outside of the public administrative unit based on their task performance results and contribution to the unit. Specific reward amounts shall be decided by the head of the public administrative unit and specified in its regulations on internal expenses;

d) The welfare fund shall be used for building and repairing welfare facilities of the unit; making contribution to construction of common welfare facilities of the branch or with other units under contracts; spending on operations intended for welfare of public employees and workers in the unit; providing subsidies for public employees or workers faced with unexpected difficulty, including those who have retired, or those faced with work incapacity; further spending on severance pays to public employees and workers in case of downsizing; spending on social and charity activities;

dd) Other funds shall be used in accordance with regulations of specialized laws.

3. When using the fund for development of administrative operations for investment, procurement or contribution to joint venture, cooperation or association, the public administrative unit must strictly and fully comply with regulations of the Law on public investment, the Law on management and use of public assets, the Law on bidding and other relevant laws.

4. Specific contribution amounts made to the funds specified in Clause 1 of this Article and procedures for use of such funds shall be decided by heads of public administrative units in accordance with their regulations on internal expenses and relevant laws, and must be publicly announced within their units.

Section 2. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS SELF-COVERING PART OF THEIR RECURRENT EXPENSES (GROUP-3 UNITS)

Article 15. Financial sources

1. Funding from state budget

a) Funding for provision of public administrative services which are included in the list of public administrative services funded by state budget, including funding for public administrative services provided in the form of order placement or bidding as prescribed;

b) Funding for performance of science and technology tasks when being selected or assigned by competent authorities in accordance with regulations of law on science and technology;

c) Funding for covering recurrent expenses which remain unpaid after the unit has used revenues earned from administrative operations and retained revenues for covering expenses on performance of tasks and provision of public administrative services included in the list of public administrative services covered by state budget;

d) Funding for covering recurrent expenses incurred from performance of tasks assigned by the Government (if any), including: Funding for implementation of national target programs; reciprocal capital for implementation of foreign-invested projects allocated under decisions issued by competent authorities; funding for performance of tasks assigned by competent authorities; funding allocated by competent authorities to public administrative units for provision of public administrative services funded by state budget in case economic-technical norms and unit prices are not available for placing orders; funding for downsizing; funding for provision of training courses for officials and public employees under approved schemes;

dd) Investment and development funding for infrastructural development investment projects which have been approved by competent authorities in accordance with regulations of the Law on public investment.

2. Revenues earned from administrative operations

a) Revenues from provision of public administrative services;

b) Revenues from business operations; joint-venture, cooperation or association activities which are performed in accordance with regulations of law and under specific schemes approved by competent authorities in conformity with the functions and tasks of the public administrative unit;

c) Revenues from leasing of public assets: The unit must fully comply with regulations of the law on management and use of public assets and must have the scheme for leasing of public assets approved by competent authorities.

3. Collected fees which are retained by the public administrative unit for covering its expenses in accordance with regulations of the Law on fees and charges.

4. Borrowed capital; aids and grants as prescribed by law.

5. Other sources of revenues as prescribed by law (if any).

Article 16. Recurrent expenses covered by funding which the autonomy to use is delegated to public administrative units

Based on assigned tasks and financial sources specified in Point a and Point c Clause 1, Clause 2, Clause 3 (revenues retained for covering recurrent expenses incurred from fee collection) and Clause 5 Article 15 hereof, the public administrative unit is entitled to decide the following expenses:

1. Salaries and salary-based contributions

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW are not available, the public administrative unit shall pay salaries according to the statutory pay rate, scale-, rank- or position-based salary coefficients, salary-based contributions and allowances as stipulated in Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall pay position- or title-based salaries and salary-based contributions according to Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

b) Funding for salary reform

Whenever the Government makes any changes to salary policies, the public administrative unit shall use at least 40% of its revenues retained as prescribed (particularly, a public administrative unit operating in the field of healthcare - population shall be allowed to use at least 35% of its retained revenues after deducting all costs constituting its service prices), save 10% of increased funding for recurrent expenses annually allocated from state budget and arrange funding allocated according state budget estimates for ensuring funding for salary reform. Additional funding derived from state budget shall be allocated after the unit has used up its fund for supplementation of incomes and funding for salary reform.

c) Payment of rewards: The unit shall comply with Government’s regulations on salary policies under the Resolution No. 27-NQ/TW.

2. Expenses on employment of experts, scientists or talents for performing tasks of authorities and units. Based on actual demands, actual market prices, allocated state budget estimates and its financial capacity, the unit is allowed to decide specific spending limits corresponding to assigned tasks and include them in its regulations on internal expenses.

3. Operating and managerial expenses

a) A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses

With regard to expenses of which spending limits are stipulated by competent authorities, based on actual demands, actual market prices and its financial capacity, the unit shall be allowed to decide the higher amounts (in case such expenses are covered by revenues from administrative operations) or the same or lower amounts of expenses compared with the spending limits announced by competent authorities and specify them in its regulations on internal expenses provided quality of its services must be ensured according to the Government's regulations.

Regarding expenses which are not yet stipulated by competent authorities, based on actual conditions, the public administrative unit shall develop spending levels in conformity with its financial sources and specify them in its regulations on internal expenses. The head of the public administrative unit shall assume responsibility for his decision.

b) A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses; a public administrative unit that self-covers from 10% to less than 30% of recurrent expenses

Based on assigned tasks and financial sources, the public administrative unit shall decide their operating and managerial expenses which shall be restricted to less than the corresponding spending limits announced by competent authorities.

Regarding expenses which are not yet stipulated by competent authorities, based on actual conditions, the public administrative unit shall develop spending levels in conformity with its financial sources and specify them in its regulations on internal expenses. The head of the public administrative unit shall assume responsibility for his decision.

4. Expenses on performance of fee collection tasks as prescribed by the Law on fees and charges; expenses on service provision.

5. Provisions for business, joint venture, cooperation or association activities and other services which are made according to regulations on provisions made by enterprises, unless special funds for risk management must be established in accordance with specialized laws (if any).

6. Payment of loan interests as prescribed by law (if any).

7. Other expenses as prescribed by law (if any).

Article 17. Recurrent expenses covered by funding which the autonomy to use is not delegated to public administrative units, and expenses on performance of science and technology tasks

Based on the financial sources specified in Point b and Point d Clause 1, Clause 3 (amounts retained for covering non-recurrent expenses), Clause 4 Article 15 hereof, the public administrative unit shall comply with Article 13 hereof.

Article 18. Distribution of incomes generated within a year

At the end of the fiscal year, after posting all revenues and recurrent expenses covered by funding which the autonomy to use is delegated to the public administrative unit into accounting records, making depreciations of fixed assets, making contribution to the fund for salary reform as prescribed in Point b Clause 1 Article 16 hereof, paying taxes and other amounts payable to state budget as prescribed, the positive difference between revenues and recurrent expenses (if any) shall be used in the following order:

1. Contribution to the fund for development of administrative operations

a) A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses: at least 20%;

b) A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses: at least 15%;

c) A public administrative unit that self-covers from 10% to less than 30% of recurrent expenses: at least 10%.

2. Contribution to the fund for supplementation of income and payment of increased income

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW are not available, the contribution to the fund for supplementation of income is restricted to twice less than the sum of scale-, rank- or position-based salary fund, salary-based contributions and allowances as stipulated by the Government.

b) When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall comply with the followings:

- A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses shall be allowed to make payment of increased income which shall not exceed 0,8 times the fund for minimum wages of its public employees and workers;

- A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses shall be allowed to make payment of increased income which shall not exceed 0,5 times the fund for minimum wages of its public employees and workers;

- A public administrative unit that self-covers from 10% to less than 30% of recurrent expenses shall be allowed to make payment of increased income which shall not exceed 0,3 times the fund for minimum wages of its public employees and workers.

3. Contribution to reward fund and welfare fund:

Contribution amounts to both funds are as follows:

a) A public administrative unit that self-covers from 70% to less than 100% of recurrent expenses: total contribution amounts shall not exceed the sum of 2,5-month salaries or wages paid by the unit within a year;

b) A public administrative unit that self-covers from 30% to less than 70% of recurrent expenses: total contribution amounts shall not exceed the sum of 2-month salaries or wages paid by the unit within a year;

c) A public administrative unit that self-covers from 10% to less than 30% of recurrent expenses: total contribution amounts shall not exceed the sum of 1,5-month salaries or wages paid by the unit within a year.

4. Contributions to other funds as prescribed by specialized laws.

5. The remaining positive difference between revenues and expenses (if any) after all funds have been established in accordance with regulations shall be added to the fund for development of administrative operations.

6. The use of such funds shall comply with regulations in Clause 2 and Clause 3 Article 14 hereof. Specific contribution amounts and procedures for use of the funds specified in this Article shall be decided by the head of public administrative unit in accordance with their regulations on internal expenses and relevant laws, and must be publicly announced within the unit.

Section 3. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS OF WHICH RECURRENT EXPENSES ARE COVERED BY STATE BUDGET (GROUP-4 UNIT)

Article 19. Financial sources

1. Funding from state budget, including:

a) Funding for covering recurrent expenses based on the tasks assigned by the Government, the number of employees and limits on allocated budgets approved by competent authorities;

b) Funding for performance of science and technology tasks when being selected or assigned by competent authorities in accordance with regulations of law on science and technology;

c) Funding for performance of tasks assigned by the Government as prescribed in Point d Clause 1 Article 15 hereof (if any);

d) Investment and development funding for infrastructural development investment projects which have been approved by competent authorities in accordance with regulations of the Law on public investment.

2. Revenues earned from administrative operations in conformity with functions and tasks of the public administrative unit (if any).

3. Aids and grants as prescribed by law.

4. Other sources of revenues as prescribed by law (if any).

Article 20. Recurrent expenses covered by funding which the autonomy to use is delegated to public administrative units

Based on assigned tasks and financial sources specified in Point a Clause 1, Clause 2 and Clause 4 Article 19 hereof, the public administrative unit shall exercise the autonomy to decide the following expenses:

1. Salaries and salary-based contributions

a) While the Government's regulations on salary policies under the Resolution No. 27-NQ/TW are not available, the public administrative unit shall pay salaries according to the statutory pay rate, scale-, rank- or position-based salary coefficients, salary-based contributions and allowances as stipulated in Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

When the Government’s regulations on salary policies under the Resolution No. 27-NQ/TW come into force, the public administrative unit shall pay position- or title-based salaries and salary-based contributions according to Government’s regulations applicable to public administrative units; and pay wages under employment contracts (if any).

b) Funding for salary reform

Whenever the Government makes any changes to salary policies, the public administrative unit shall save 10% of increased funding for recurrent expenses annually allocated from state budget and arrange funding allocated according state budget estimates for implementing policies on salary reform. Additional funding derived from state budget shall be allocated after the unit has used up its funding for salary reform.

c) Payment of rewards: The unit shall comply with Government’s regulations on salary policies under the Resolution No. 27-NQ/TW.

2. Expenses on employment of experts, scientists or talents for performing tasks of authorities and units. Specific spending limits shall comply with the Government’s general regulations on salaries and wages.

3. Operating and managerial expenses

Based on assigned tasks and financial sources, the public administrative unit shall decide their operating and managerial expenses which shall be restricted to less than the corresponding spending limits announced by competent authorities.

4. Other expenses as prescribed by law (if any).

Article 21. Recurrent expenses covered by funding which the autonomy to use is not delegated to public administrative units, and expenses on performance of science and technology tasks

Based on the financial sources specified in Point b and Point c Clause 1, Clause 3 Article 19 hereof, the public administrative unit shall comply with Article 13 hereof.

Article 22. Distribution of incomes generated within a year

1. At the end of the fiscal year, after posting all revenues and recurrent expenses covered by funding which the autonomy to use is delegated to the public administrative unit into accounting records, making depreciations of fixed assets, making contribution to the fund for salary reform as prescribed in Point b Clause 1 Article 20 hereof, paying taxes and other amounts payable to state budget as prescribed, the positive difference between revenues and recurrent expenses (if any) shall be considered as the saved amounts of funding for recurrent expenses.

2. The public administrative unit shall use the saved amounts of funding for recurrent expenses in the following order:

a) Supplementation of incomes of public employees and workers: The public administrative unit shall be allowed to make payment of increased income which shall not exceed 0,3 times the fund for minimum wages of its public employees and workers according to the principle that efficiency in task performance of each person must be taken into consideration;

b) Payment of rewards and welfare: Payment of periodic or unplanned rewards to collectives or individuals inside and outside of the public administrative unit based on their task performance results and contribution to the unit; spending on operations intended for welfare of public employees and workers in the unit; providing subsidies for public employees or workers faced with unexpected difficulty, including those who have retired, or those faced with work incapacity; further spending on severance pays to public employees and workers in case of downsizing;

c) When the ability to save funding is unstable, the public administrative unit may make provision for stabilizing incomes of public employees and workers.

At the end of a year, the remaining saved amounts of funding shall be carried forward to the following year.

3. The head of the pubic administrative unit shall decide the plan to use the aforesaid saved amounts of funding according to its regulations on internal expenses and publish the plan within the unit.

Section 4. AUTONOMY TO CONDUCT FINANCIAL, JOINT VENTURE, COOPERATION AND ASSOCIATION TRANSACTIONS

Article 23. Opening trading accounts

1. Each public administrative unit is allowed to open an account at a commercial bank to receive revenues generated from administrative operations, business and service provision.

2. Group-3 and group-4 units shall open special purpose credit accounts at commercial banks to receive revenues generated from healthcare services, preventive medical services and tuitions at prices stipulated by competent authorities; periodically transfer received revenues to their deposit accounts opened at State Treasury for management as prescribed.

3. The public administrative unit shall open an account at the State Treasury for managing finances derived from state budget as prescribed by the Law on State Budget, including: funding allocated by state budget, fees collected according to the Law on fees and charges, and other state budget revenues (if any).

4. Funds established according to regulations herein may deposit money at commercial banks for management.

Article 24. Capital mobilization and credit loans

1. General rules

a) When applying for loans or mobilizing capital for investing in or procuring assets, the public administrative unit must have the capital borrowing or mobilization plan and repay borrowed capitals; assume legal responsibility for efficiency in capital borrowing or mobilization and in use of borrowed or mobilized capital;

b) The public administrative unit shall not be allowed to use public assets as collateral for loans as prescribed in Clause 5 Article 54 of the Law on management and use of public assets;

c) Projects funded by borrowed or mobilized capital must be implemented in accordance with regulations of law, widely published and comply with the unit’s democracy regulations.

2. Group-1 and group-2 units operating in the field of healthcare - population shall be allowed to get loans from credit institutions to invest in or build facilities in accordance with regulations of the Law on Public Investment; get the Government’s concessional credit loans or interest support for investment projects funded by loans granted by credit institutions in accordance with regulations of law (if any). Procedures and authority to approve the borrowing plan shall comply with regulations of the Law on public investment.

3. Group-1, group-2 and group-3 units (units self-covering at least 70% of recurrent expenses) providing services shall be allowed to get loans from credit institutions and mobilize capital from their public employees and workers to invest in expansion, improvement and repair of their existing facilities; buy additional equipment to improve their service quality and increase the scale of their administrative operations and provide services in conformity with their functions and tasks, and shall themselves take responsibility to repay debts in accordance with regulations of law. Mobilization of capital from public employees and workers of a unit must be made under contracts in accordance with regulations of the Civil Code.

4. Public administrative units shall submit their plans for capital borrowing or mobilization and debt repayment to their superior agencies for approval. If a unit has established a management board, school’s council or university’s council, its plans for capital borrowing or mobilization and debt repayment must be approved by such board or council.

Article 25. Autonomy to perform joint venture, cooperation and association activities

1. Each public administrative unit shall exercise the autonomy to enter into joint venture, cooperation or association with other entities to provide services meeting social needs. The use of public assets for performing joint venture, cooperation or association activities must comply with the provisions of Clause 2 Article 55 of the Law on management and use of public assets and in the cases specified in Clause 1 Article 58 of the Law on management and use of public assets.

2. Public administrative units shall develop joint venture, cooperation or association plans and submit them to Ministers or heads of central agencies (if the unit is managed by central agency) for approval after obtaining written opinions from the Ministry of Finance; Chairperson of provincial People’s Committees (if the unit is managed by a local agency) for approval after obtaining opinions from Standing Committees of People's Councils of the same level, in which the joint venture, cooperation or association form (whether a new juridical person is established or not), and the plan for ensuring financial and personnel sources for their activities and those of the joint venture, cooperation or association establishments. If a unit has established a management board, school’s council or university’s council, the joint venture, cooperation or association plan must be submitted to these board or council for approval before it is submitted to competent authorities for approval.

3. This Decree does not provide regulations on the use of trademark, license or copyrights for performing joint venture, cooperation or association activities in case a new juridical person is established. In case joint venture, cooperation or association activities are performed in the form of a new juridical person, the public administrative unit shall comply with regulations of the Law on enterprises, the Law on management and use of public assets, the Law on investment, the Law on intellectual property and other relevant laws.

4. Incomes generated from joint venture, cooperation or association activities shall be distributed under terms and conditions of the joint venture, cooperation or association contract. To be specific:

a) In case joint venture, cooperation or association activities are performed without establishing a new juridical person: The public administrative unit shall include all incomes generated from joint venture, cooperation or association activities in the financial sources of the unit that performs such joint venture, cooperation or association activities under the joint venture, cooperation or association plan approved by a competent authority;

b) In case joint venture, cooperation or association activities are performed in the form of establishing a new juridical person: the received amounts of incomes generated from joint venture, cooperation or association activities which remain after fully paying loan interests and costs of leased assets which are contributed to the joint venture, cooperation or association (if any) shall be managed and used according to the joint venture, cooperation or association plan approved by a competent authority.

5. In case of use of trademark, license or copyrights for performing joint venture, cooperation or association activities and in other special cases, the public administrative unit shall comply with regulations of the Law on management and use of public assets, the Law on intellectual property and other relevant laws. When determining the value of trademark which is contributed to the joint venture, cooperation or association according to Vietnam’s valuation standards, some financial criteria employed by the public administrative unit in the valuation process are determined as follows:

a) Incomes of the public administrative unit shall be determined on the basis of earnings before interest after taxes plus depreciation costs;

b) Cost of equity of the public administrative unit shall be determined according to the interest rate of government bonds of 10-year term. In case of unavailability of government bonds of 10-year term, interest rate of government bonds of the longest term available at the valuation date shall be employed.

c) Values of contributed assets in income approach shall be determined according to their book values.

6. The borrowing or mobilization of capital for performing joint venture, cooperation or association activities in the form of public-private partnerships shall comply with regulations of the Law on investment in form of public-private partnerships.

Chapter III

FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS OPERATING IN FIELDS OF HEALTHCARE - POPULATION, EDUCATION AND TRAINING, VOCATIONAL TRAINING

Section 1. FINANCIAL AUTONOMY OF PUBLIC ADMINISTRATIVE UNITS OPERATING IN FIELD OF HEALTHCARE - POPULATION

Article 26. Autonomy to use financial sources

The autonomy to use financial sources of a public administrative unit operating the field of healthcare - population shall comply with provisions of Article 12, Article 16 and Article 20 hereof and the followings:

1. The public administrative unit shall be allowed to hire qualified entities providing medical technical services to meet professional requirements in case it fails to have adequate medical equipment for providing services within the ambit of its assigned functions and tasks. Authority to issue decision in this case is as follows:

a) Group-1 and group-2 units: The management board shall consider approving the service leasing scheme in which the list of leased services, volume, standards, quality (if any) and prices of leased services, payment methods, and responsibilities of the public administrative unit and of the service provider must be specified. Where the management board is not yet established, the leasing of medical technical services shall be decided by the head of the public administrative unit;

b) Group-3 and group-4 units shall send written request to Ministers or heads of central agencies (if the unit is managed by central agency) or Chairperson of provincial People’s Committees (if the unit is managed by a local agency) for their approval in which the list of leased services, volume, standards, quality (if any) and prices of leased services, payment methods, and responsibilities of the public administrative unit and of the service provider must be specified;

c) Leasing of service providers shall comply with in accordance with regulations of the Law on bidding. Leasing duration shall be subjected to the unit’s demands but shall not exceed the maximum depreciation period of the leased assets as prescribed by the Law on depreciation of assets;

d) Costs of leased medical technical services shall be recorded as rational expenses of the unit.

2. Costs of minor and major surgery

a) Group-1 and group-2 units: Heads of these units shall, based on their revenues, decide the levels of costs of minor and major surgery which may be equal to or higher or lower than the cost levels stipulated by the Government and must specify such costs in their regulations on internal expenses.

b) Group-3 and group-4 units: Heads of these units shall, based on their revenues generated from administrative operations, decide the levels of costs of minor and major surgery which may be equal to or higher or lower than the cost levels stipulated by the Government and must specify such costs in their regulations on internal expenses.

3. Distribution of incomes generated within a year

a) Public administrative units operating the field of healthcare - population shall distribute their financial incomes earned within a year in accordance with provisions of Article 14, Article 18 and Article 22 hereof.

b) Depending on their financial sources, healthcare establishments shall make contributions to the healthcare fund for the poor, near poor households or families facing economic difficulties.

This fund shall be used for covering the following costs: Costs of meals during inpatient treatment; costs of travel from their houses to hospitals and vice versa, and referral costs; costs of healthcare services which are not covered by the medical insurance fund for patients suffering from cancer, hemodialysis, cardiac surgery or other diseases of which treatment costs are high and cannot be paid by patients.

The head of the healthcare establishment shall issue regulations on provision of supports which must ensure public disclosure and transparency.

Article 27. Allocation of cost estimates to group-3 units

1. Funding from state budget shall be provided for covering recurrent expenses of the units that are assigned to provide preventive medicine services (including medical stations of communes, wards or commune-level towns), health improvement, population or food safety services which are included in the list of public administrative services funded by state budget, including:

a) Salaries, salary-based contributions and allowances as prescribed in the Government's regulations on salary policies of public administrative units which are determined on the basis of the number of employees who receive salaries from state budget and assigned by competent authorities to provide preventive medicine, health improvement, population or food safety services;

b) Expenses on operating and ensuring recurrent activities and other specific expenses according to assigned functions and tasks and applicable regulations.

2. Funding from state budget shall be provided for covering recurrent expenses of the units assigned to provide medical examination, treatment and health care for leprosy patients or patients with mental disorders according to the mechanism of order placement or direct assignment on the basis of the number of patients and unit prices of medical examination, treatment and health care services provided for these patients in accordance with regulations of law.

3. Funding from state budget shall be provided for the unit that cannot itself cover recurrent expenses associated with the following activities: Medical examination and treatment, health quarantine, preventive medicine, population - family planning, reproductive health care, health communication and education, forensic examination, forensic psychiatric assessment, medical assessment, testing for drugs, cosmetics and pharmaceutical starting materials, inspection of vaccines and biologicals, food safety testing, quality control and calibration.

Article 28. Levels of financial autonomy of multi-function health centers

1. Multi-function health centers shall determine rates of self-covering of recurrent expenses in accordance with regulations herein. In case a health center’s revenues from medical examination and treatment and other services are sufficient to cover its recurrent expenses or both its recurrent expenses and investment expenses for medical examination and treatment activities: The health center shall be granted the autonomy of group-1 or group-2 unit. Expenses on preventive medicine, health improvement, population, food safety, and activities of medical stations of communes, wards or commune-level towns shall be covered by funding derived from state budget as prescribed in Clause 1 Article 27 hereof.

2. The health center is allowed to use revenues from medical examination and treatment and other services, and funding derived from state budget for activities prescribed in Clause 1 Article 27 hereof for covering costs of its activities. Distribution of financial incomes earned within a year shall comply with regulations herein.

Section 2. FINANCIAL AUTONOMY EDUCATIONAL AND TRAINING INSTITUTIONS, AND VOCATIONAL TRAINING INSTITUTIONS

Article 29. Requirements to be satisfied by higher education institutions to exercise autonomy

A higher education institution shall be allowed to exercise the autonomy in accordance with regulations of the Law on higher education when it satisfies the following requirements:

1. It has established a school’s council or university’s council and has been accredited to meet higher education quality standards by a qualified education quality accreditation organization.

2. It has promulgated and implemented regulations on operation of the school’s council or university’s council; regulations on cooperation between the school’s council or university’s council, the communist party and the institution; regulations on organization and operation; democracy regulations; regulations on training management, science and technology, student’s affairs, finances, and assets, and adopted policies for ensuring its satisfaction of quality standards announced by the Government.

3. The autonomy and accountability are decentralized to each unit and each individual within the higher education institution.

4. It has developed a plan to exercise autonomy and published all conditions for ensuring its quality, inspection results, employment rate of graduates and information as prescribed by law.

Article 30. Financial autonomy

1. Financial sources:

Financial sources of educational and training institutions and vocational training institutions shall comply with the provisions of Article 11, Article 15 and Article 19 hereof and the followings:

a) Funding from state budget shall be provided for public educational and training institutions and vocational training institutions for implementing policies for tuition exemption or reduction, support for study costs and other support policies for students (if any) according to Government's regulations;

b) Tuitions shall be collected in accordance with regulations of laws on education, higher education and vocational training, and Government's regulations on tuition;

c) Revenues from production and service provision include: revenues from provision of educational and training services in the form of continuing education; revenues from short-term training or refreshing courses in professional skills, improvement of knowledge and skills for granting training certificates/qualifications and other training form, and other short-term improvement courses; revenues from educational and training consulting services; revenues from cooperation activities with enterprises; revenues from scientific research and technology transfer; and revenues from other services which are rendered in conformity with the functions and tasks of the educational and training institution and regulations of law. Service fees must be stipulated and publicly announced.

2. Use of financial sources:

Educational and training institutions and vocational training institutions shall decide to use their financial sources for covering their recurrent expenses to ensure their service quality standards. The autonomy to use financial sources shall comply with the provisions of Article 12, Article 16 and Article 20 hereof and the followings:

a) Expenditures on scholarships, tuition exemption or reduction; support for study costs for students; and other supports for students (if any) of educational and training institutions and vocational training institutions shall comply with Government’s regulations;

b) Expenditures on investment and development of science and technology potential and encouragement of science and technology activities in higher education institutions shall comply with regulations of the Law on higher education and shall be recorded as rational expenses of the unit.

3. Distribution of incomes generated within a year

a) Educational and training institutions and vocational training institutions shall distribute their financial incomes earned within a year in accordance with provisions of Article 14, Article 18 and Article 22 hereof.

b) Based on their financial sources, educational and training institutions and vocational training institutions shall make contributions to the student support funds. The student support fund shall be managed and used according to guidelines given by the Ministry of Education and Training (in the field of education and training) and the Ministry of Labor, War Invalids and Social Affairs (in the field of vocational training).

Article 31. Financial autonomy of regional universities

The financial autonomy of regional universities shall comply with regulations herein and the followings:

1. The Ministry of Education and Training shall provide specific guidelines on the financial autonomy of regional universities.

2. Regional universities shall develop their own financial regulations and submit them to the Ministry of Education and Training for approval. Based on the financial regulations of a regional university which have been approved by the Ministry of Education and Training, Director of that regional university shall develop their own regulations on internal expenses; heads of member universities and affiliated entities of the regional university shall develop their own regulations on internal expenses.

Chapter IV

PREPARING AND COMPLYING WITH BUDGET ESTIMATES, AND STATEMENTS OF REVENUES AND EXPENSES

Article 32. Budget estimate preparation

1. Group-1 and group-2 units

a) Annually, based on the implementation result in terms of service quantity and volume, conditions of operating revenues and expenses generated and incurred from public administrative services and others in the current year, task requirements specified in the planning year, the public administrative unit shall draw up the plan on service quantity and volume and prepare the budget estimate for submission to the superior agency;

b) With regard to public administrative services ordered by the Government: Annually, based unit prices, quantity and volume of ordered services under guidelines given by ministries, central agencies and provincial People’s Committee, the public administrative unit shall prepare the budget estimate for submission to its superior agency.

2. Group-3 units: Based on the task performance results in the current year and assigned tasks in the planning year, these units shall set plans on service quantity and volume and estimates of revenues and expenses and submit them to its superior agency.

3. Group-4 units: Based on the task performance results in the current year, tasks assigned by competent authorities in the planning year, the number of employees approved by competent authorities, and current regulations on expenses, these units shall prepare their estimates of revenues and expenses for submission to their superior agencies.

4. Public administrative units shall make their estimates of revenues and expenses covered by retained amounts of collected fees as prescribed by the Law on fees and charges; estimates of expenses on performance of non-recurrent tasks as prescribed by the Law on state budget.

5. Annually, based on estimates of revenues and expenses formulated by public administrative units, their superior agencies shall be responsible for considering and preparing a consolidated estimate for submission to the finance agency of the same level and other relevant agencies in accordance with the Law on the state budget.

Article 33. Distribution and allocation of budget estimates

1. Superior agencies’ distribution and allocation of annual budget estimates to public administrative units shall comply with regulations of the Law on state budget. With regard to group-3 and group-4 units, distribution and allocation of annual estimates of recurrent expenses covered by funding derived from state budget which the autonomy to use is delegated to the units shall be made on the basis of estimates of revenues and expenses of the first year of the stabilization period and changes in estimates of revenues and expenses of the units due to changes to Government’s policies.

2. Based on the budget estimates allocated by competent authorities, superior agencies shall distribute and allocate budget estimates to their affiliated units, in which estimated budget for ordered or assigned public administrative services funded by state budget for affiliated public administrative units; budget for placing orders (or assigning tasks as stipulated by specialized laws) for providers of other public administrative services; or budget for bidding for provision of public administrative services funded by state budget as prescribed in the Government’s Decree No. 32/2019/ND-CP dated April 10, 2019 on assignment of tasks, order placement or bidding for provision of public services and products funded by funding for recurrent expenses derived from state budget (hereinafter referred to as “Decree No. 32/2019/ND-CP”).

Article 34. Accounting and statements

1. Public administrative units shall carry out accounting for administrative operations and internal audit in accordance with regulations of law on internal audit; open accounting books for recording public administrative services funded by state budget provided as assigned by competent authorities and public administrative services not funded by state budget provided to meet social needs.

If group-1 units develop management and accounting schemes under the model of an enterprise which have been approved by competent authorities, they shall comply with regulations on accounting for enterprises.

2. Public administrative units shall prepare and submit annual financial statements to their superior agencies and relevant agencies as prescribed by the Law on accounting.

3. Public administrative units shall make annual statements of funding derived from state budget, aids and grants, retained amounts of collected fees, and other funding sources as prescribed, and send them to their superior agencies or finance authorities of the same level as prescribed by the Law on accounting and the Law on state budget.

4. Based on their actual conditions, the organization of accounting apparatus at a public administrative unit shall be decided by the competent authority establishing that unit and must meet accounting apparatus streamlining requirements.

Chapter V

IMPLEMENTATION

Article 35. Delegating financial autonomy to public administrative units

1. Public administrative units shall plans to exercise their autonomy for 05-year stabilization period which is relevant to the social and economic development period stipulated by the Government; estimates of revenues and expenses in the first year of the stabilization period and proposals of their levels of financial autonomy which must be conformable with the functions and tasks assigned by competent authorities (using the form in Appendix II enclosed herewith), and submit them to their superior agencies (ministries or central agencies in case the public administrative units are managed by central government) or provincial People’s Committees (in case the public administrative units are managed by provincial government). The plan to exercise autonomy must indicate the level of financial autonomy according to 04 groups of units prescribed herein.

2. In case a public administrative unit has affiliated administrative units

a) The public administrative unit shall develop the plan to exercise autonomy and submit it to its superior public administrative unit for approval after obtaining the consent from the superior agency.

b) The superior public administrative unit shall develop the plan to exercise its autonomy (excluding the plans to exercise autonomy of its affiliated administrative units as prescribed in Point a of this Clause) and send it to the superior agency.

3. Based on the plans to exercise autonomy submitted by public administrative units (excluding those of the public administrative units specified in Point a Clause 2 of this Article), superior agencies shall consider and verify estimates of revenues and expenses in the first year of the stabilization period and determine funding for recurrent expenses derived from state budget and retained amounts of collected fees; funding from state budget for ordered public administrative services (in case funding for ordered services can be determined at the time of verification of the plan to exercise autonomy); classification of affiliated units according to levels of their financial autonomy, consolidate and send classification plan and estimates of revenues and expenses of public administrative units to finance authorities of the same level (Ministry of Finance or provincial finance authorities as prescribed) for consideration.

After obtaining written opinions from the finance authorities of the same level, the superior agencies shall classify the public administrative units and issue decisions to grant the financial autonomy to their affiliated public administrative units; approve estimated funding for recurrent expenses derived from state budget and retained amounts of collected fees; funding from state budget for ordered public administrative services (if any) allocated to the units under the plan to exercise autonomy in the first year of the stabilization period.

4. After each stabilization period of 05 years, ministries and central agencies (in case the public administrative unit is managed by a central agency) or provincial People’s Committees (in case the public administrative unit is managed by a provincial agency) shall review and improve the levels of financial autonomy of group-3 units (except public administrative units that provide basic and essential public administrative services and earn no revenues from administrative operations) according to the following roadmap:

a) Transfer at least 30% of the number of public administrative units that self-cover from 70% to less than 100% of recurrent expenses into group-2 units; annually, reduce at least 2,5% of funding derived from state budget;

b) Transfer at least 30% of the number of public administrative units that self-cover from 30% to less than 70% of recurrent expenses into public administrative units that self-cover from 70% to less than 100% of recurrent expenses; annually, reduce at least 2,5% of funding derived from state budget;

c) Transfer at least 30% of the number of public administrative units that self-cover from 10% to less than 30% of recurrent expenses into public administrative units that self-cover from 30% to less than 70% of recurrent expenses; annually, reduce at least 2,5% of funding derived from state budget.

5. Public administrative units that have been classified by competent authorities as group-1 or group-2 units shall continue exercising financial autonomy in accordance with regulations herein; shall not be considered to be transferred into group-3 or group-4 units during the stabilization period of 05 years or after the stabilization period of 05 years, except case of force majeure events (such as disasters or epidemics) or cases where the unit’s functions, tasks and powers have been adjusted by competent authorities in accordance with regulations of law resulting in changes to revenues earned by the unit and its level of financial autonomy.

Group-1 and group-2 units shall provide required documents and reports for superior agencies for allocating land and public assets in accordance with regulations of relevant laws.

6. The superior agencies shall carry out restructuring or dissolution of public administrative units that have insufficiently operated according to Government's regulations on establishment, restructuring and dissolution of public administrative units.

Article 36. Responsibilities of ministries and central agencies

1. Responsibilities of ministries and central agencies

a) Cooperate with the Ministry of Finance to instruct public administrative units to comply with regulations herein;

b) Play the leading role and cooperate with the Ministry of Finance in requesting the Prime Minister to issue or amend the list of public administrative services funded by state budget in the fields managed by ministries or central agencies as prescribed in Article 4 hereof in conformity with actual conditions in each period;

c) Issue or amend economic - technical norms and cost norms (if any) as the basis for setting unit prices or prices of public administrative services funded by state budget in accordance with regulations of the Law on prices and relevant laws which shall be then used for assigning tasks, placing orders or organizing bidding for provision of public administrative services according to Decree No. 32/2019/ND-CP;

d) Promulgate quality criteria or standards of public administrative services funded by state budget; mechanism for supervision, assessment and accreditation of service quality, and regulations on inspection and acceptance of implementation results of public administrative services funded by state budget of ministries and central agencies; operating results of public administrative units;

dd) Carry out inspection and take actions against violations committed during the provision of public administrative services and organize the performance of other contents related to state management of public administrative services and public administrative units under the management of ministries and central agencies.

2. The Ministry of Finance shall:

a) Play the leading role and cooperate with relevant ministries to implement this Decree;

b) Establish, manage and operate the information system recording data on finances and public assets of public administrative units nationwide.

3. The Ministry of Labor, War Invalids and Social Affairs shall play the leading role and cooperate with relevant ministries to provide guidelines on salaries of employees and workers of group-1 and group-2 units as prescribed in Point b Clause 1 Article 12 hereof.

4. In case of fields or sectors with specific characteristics, ministries and central agencies shall, pursuant to specialized laws, play the leading role and cooperate with the Ministry of Finance and relevant ministries and agencies in requesting the Government to promulgate additional regulations on specific autonomy mechanism in such fields or sectors.

5. Annually, ministries and central agencies shall provide the Ministry of Finance with reports on implementation results of financial autonomy of their affiliated public administrative units; declare and update information, ensure the connection and integration with the information system recording data on finances and public assets of public administrative units nationwide. After each stabilization period of 05 years, ministries and central agencies shall provide the Ministry of Finance with reports on assessment of implementation results as prescribed in Clause 4 Article 35 hereof.

Article 37. Responsibilities of provincial People’s Committees

1. Issue or amend the list of public administrative services funded by state budget under the management of provincial governments as prescribed in Article 4 hereof in conformity with actual conditions in each period.

2. Issue or amend economic - technical norms and cost norms (if any) as the basis for setting unit prices or prices of public administrative services funded by state budget in accordance with regulations of the Law on prices and relevant laws which shall be then used for assigning tasks, placing orders or organizing bidding for provision of public administrative services according to Decree No. 32/2019/ND-CP.

3. Promulgate quality criteria or standards of public administrative services funded by state budget; mechanism for supervision, assessment and accreditation of service quality, and regulations on inspection and acceptance of implementation results of public administrative services funded by state budget under the management of provincial governments; operating results of public administrative units.

4. Carry out inspection and take actions against violations committed during the provision of public administrative services and organize the performance of other contents related to state management of public administrative services and public administrative units under the management of provincial governments.

5. Annually, provincial People's Committees shall provide the Ministry of Finance with reports on implementation results of financial autonomy of their affiliated public administrative units; declare and update information, ensure the connection and integration with the information system recording data on finances and public assets of public administrative units nationwide. After each stabilization period of 05 years, provincial People's Committees shall provide the Ministry of Finance with reports on assessment of implementation results as prescribed in Clause 4 Article 35 hereof.

Article 38. Responsibilities of public administrative units

1. Bear responsibility to their superior agencies and take legal liability for decisions to exercise their financial autonomy.

2. Ensure that their provided public administrative services meet quality standards or criteria stipulated by competent authorities.

3. Formulate and implement regulations on internal expenses, asset use, grassroots-level democracy, financial disclosure and internal audit in accordance with applicable regulations.

4. Implement regulations on public disclosure; take accountability for their operations and data on revenues and expenses included in the plan to exercise autonomy before their supervisory authorities, state regulatory authorities, audit agencies and inspection agencies as prescribed by law. Annually, the public administrative unit shall assume responsibility for reports on assessment of implementation results of its financial autonomy submitted to its superior agency as prescribed.

Article 39. Application of this Decree to other entities

1. Public administrative units affiliated to socio-political-professional organizations, social organizations, socio-professional organizations and other organizations that are allowed to exercise the financial autonomy as prescribed in this Decree according to the rule that they shall self-cover their operating expenses without funding from state budget.

2. Socio-political-professional organizations, social organizations, socio-professional organizations and other organizations shall assume responsibility to issue decision to grant financial autonomy to their affiliated public administrative units in conformity with regulations on functions, tasks, organizational charters and other relevant regulations.

Article 40. Transition

1. The units that have been granted the financial autonomy in accordance with the Government’s Decree No. 43/2006/ND-CP dated April 25, 2006, the Government’s Decree No. 54/2016/ND-CP dated June 14, 2016 and the Government’s Decree No. 141/2016/ND-CP dated October 10, 2016 shall continue implementing the plans to exercise financial autonomy approved by competent authorities until the end of 2021.

2. Since 2022, public administrative units shall comply with the provisions of Article 35 hereof and the followings:

a) By March 31, 2022, group-3 and group-4 units shall submit their plans to exercise autonomy to their superior agencies for approval;

b) By June 30, 2022, ministries, central agencies, and provincial or district People’s Committees shall approve the plans to exercise financial autonomy of public administrative units under their management after obtaining the consent from finance authorities of the same level.

3. The public administrative units that have been allowed by the Prime Minister or provincial People's Committees to implement the pilot mechanism for exercising autonomy to use funding for covering recurrent expenses and investment expenses before this Decree comes into force shall continue being treated as group-1 units and be allowed to exercise the autonomy under the decisions issued by the Prime Minister or provincial People's Committees or exercise the financial autonomy in accordance with regulations herein.

4. Public administrative units that have been allowed by competent authorities to apply the financial mechanism as enterprises before this Decree comes into force shall select either to comply with regulations adopted by competent authorities or to apply the mechanism for financial autonomy of group-1 units as prescribed herein.

5. The balances on reserve funds for income stabilization (which have been established according to the Government’s Decree No. 43/2006/ND-CP dated April 25, 2006), the balances on funds for supplementation of incomes (which have been established according to the Government’s Decree No. 54/2016/ND-CP dated June 14, 2016 and the Government’s Decree No. 141/2016/ND-CP dated October 10, 2016) up to the effective dates of this Decree shall be used as follows:

a) Group-1 and group-2 units shall be allowed to transfer these balances to the funds for supplementation of incomes; and transfer balances on the funds for supplementation of incomes to reward and welfare funds since the Government's regulations on salary policies under Resolution No. 27-NQ/TW come into force;

b) Group-3 units shall be allowed to transfer these balances to the funds for supplementation of incomes.

Article 41. Effect

1. This Decree comes into force from August 15, 2021.

2. From the effective date of this Decree, the following regulations shall cease to have effect:

a) Government’s Decree No. 16/2015/ND-CP dated February 14, 2015;

b) Government’s Decree No. 54/2016/ND-CP dated June 14, 2016;

c) Government’s Decree No. 141/2016/ND-CP dated October 10, 2016;

d) Government’s Decree No. 85/2012/ND-CP dated October 15, 2012.

3. Ministers, heads of ministerial agencies, heads of governmental agencies, and Chairpersons of provincial People’s Committees shall implement this Decree.

Bài viết liên quan

Thế nào là đơn vị sự nghiệp công lập? Đơn vị sự nghiệp công lập nhóm 1 là gì?

Thế nào là đơn vị sự nghiệp công lập? Đơn vị sự nghiệp công lập nhóm 1 là gì?

Trong bối cảnh phát triển của nền kinh tế thị trường, các đơn vị sự nghiệp công lập ngày càng trở nên quan trọng trong việc cung cấp dịch vụ cho xã hội. Vậy đơn vị sự nghiệp công lập là gì? Đơn vị này không chỉ đảm bảo thực hiện các chức năng, nhiệm vụ công ích mà còn góp phần duy trì sự ổn định và phát triển xã hội. Đặc biệt, đơn vị sự nghiệp công lập nhóm 1 có những đặc điểm và vai trò nổi bật, đóng góp vào việc nâng cao chất lượng dịch vụ công. Bài viết này sẽ cung cấp cái nhìn tổng quan về đơn vị sự nghiệp công lập và giải thích rõ hơn về nhóm 1, nhằm giúp bạn đọc hiểu rõ hơn về cấu trúc và chức năng của loại hình tổ chức này. 10/11/2024