ACT ON THE ACCOUNT ESTABLISHMENT AND FINANCE MANAGEMENT OF NATIONAL UNIVERSITIES

Article 1(Purpose) #

The purpose of this Act is to establish the public nature and social responsibility of national universities, and furthermore, to contribute to academic development, the fosterage of human resources, and balanced national development by enhancing the autonomy and efficiency of national universities in the operation of finance.

Article 2(Scope of Application) #

(1) This Act shall apply to schools established and managed by the State (excluding annexed schools; hereinafter referred to as "national university") among the schools in the subparagraphs of Article 2 of the Higher Education Act.

(2) Except as otherwise provided for in other Acts, this Act shall, unless it is against the nature of this Act, apply mutatis mutandis to public schools established and managed by local governments prescribed in Article 3 of the Higher Education Act (excluding annexed schools; hereinafter referred to as "public university") among schools that fall under the subparagraphs of Article 2 of the same Act. In such cases, "national university" and "State" shall be considered as "public university" and "local government," respectively. <Amended on Mar. 23, 2021>

Article 3(Relationship to Other Statutes) #

This Act shall apply to the establishment of accounts, operation of finance, etc. of national universities preferentially to other Acts.

Article 4(Support from State and Local Governments) #

(1) The State shall provide stable financial support to national universities for the improvement of the quality of education and research and for the improvement of educational environment, such as the replacement of old facilities, and apparatuses and materials for experiments and hands-on practice.

(2) The State shall subsidize each cost necessary to operate national universities, such as a labor cost, regular cost, and facility expansion cost in a lump sum, in consideration of the previous budgets for each national university, the size and increase rate of higher education budget, etc.

(3) The State shall endeavor to increase the lump-sum amounts of subsidies to be provided to each national university pursuant to paragraph (2) each year.

(4) Every local government may, if necessary in association with the business the relevant local government conducts, support national universities financially.

Article 5(Obligations of National Universities) #

(1) The head of each national university shall operate the finance of the relevant national university in a sound and efficient manner, and ensure that the amount of expenditure not exceed the amount of revenue.

(2) The head of each national university shall formulate medium- and long-term development plans and finance operation plans for the relevant national university and implement such plans faithfully.

Article 6(Standards for Operation of Finance) #

Detailed standards for the operation of finance and accounts of national universities shall be prescribed by Ordinance of Ministry of Education.

Article 7(Regulations for Financial Affairs and Accounting) #

(1) The head of each national university shall stipulate regulations for the operation of finance and accounts within the scope prescribed by relevant statutes (hereinafter referred to as "regulations for financial affairs and accounting").

(2) Where the head of a national university stipulates or amends the regulations for financial affairs and accounting, he or she shall publish the details thereof in advance by following the procedures prescribed by Ordinance of the Ministry of Education and promulgate such details ex post facto.

Article 8(Establishment and Operation of Finance Committees) #

(1) Every national university shall have a finance committee to deliberate and resolve on major matters concerning the operation of finance and accounts.

(2) Every finance committee shall have at least 11 but not more than 15 members, and the quorum shall be determined by the regulations for financial affairs and accounting, and the finance committee shall be comprised of ex officio members and general members. In such cases, the general members shall hold a majority.

(3) Ex officio members of each finance committee shall be prescribed by regulations for financial affairs and accounting, and the head of each national university shall appoint or commission general members of the finance committee, from among the following persons by undergoing the recommendation procedures prescribed by regulations for financial affairs and accounting. In such cases, the general members shall include at least two teachers, two employees and two students enrolled prescribed in subparagraph 1, and the head of the relevant national university shall not become a general member:

1. Teachers and employees who hold office in the relevant university and students enrolled;

2. Persons who have contributed to the development of the relevant university;

3. Persons who have expertise and experience necessary for the management of the university.

(4) The chairperson of each finance committee shall be elected from among the general members of the finance committee.

(5) Every finance committee shall deliberate and resolve on the following matters: Provided, That deliberations on tuition fees prescribed in Article 11 (1) of the Higher Education Act among the matters in subparagraph 3 shall be replaced by deliberations by the tuition fee deliberation committee prescribed in paragraph (3) of the same Article: <Amended on Dec. 3, 2019>

1. Matters concerning mid- and long-term finance operation plans prescribed in Article 5 (2);

2. Matters concerning the budget and settlement of university accounts prescribed in Article 11 (1);

3. Matters concerning admission fees, tuition fees, etc. prescribed in Article 11 (3) 1 through 4 (hereinafter referred to as "tuition fees, etc.");

4. Matters concerning the payment of educational and research expense, etc. prescribed in Article 28;

Article 9(Preparation and Disclosure of Minutes) #

(1) Every finance committee shall take minutes including the following matters:

1. Date and time for opening, suspending and adjourning a meeting;

2. Agenda;

3. Proceedings;

4. Names of members, teachers and employees present;

5. Number of votes;

6. Other matters the chairperson deems necessary.

(2) All members present shall sign the minutes in their own handwriting to make their names conspicuous and, where the minutes exceed two pages, they shall sign each page: Provided, That the finance committee may elect three members from among the members present to have them sign or affix their seals on each page of the minutes as representatives.

(3) Every minute shall be made public: Provided, That matters prescribed by Ordinance of the Ministry of Education may not be made public by resolution of the finance committee.

(4) Other matters necessary for the disclosure of minutes, such as the period, procedures, etc. of disclosure shall be prescribed by Ordinance of the Ministry of Education.

Article 10(Grounds for Disqualification) #

(1) No person who falls under any of the subparagraphs of Article 33 of the State Public Officials Act shall be appointed as a member of the finance committee.

(2) Where a member of the finance committee comes to fall under any of the subparagraphs of Article 69 of the State Public Officials Act, he or she shall resign from the position of committee member as expected.

Article 11(University Accounts) #

(1) In order to secure the finance of national universities in a stable manner and to enhance the autonomy and efficiency of the operation thereof, each national university shall establish university accounts to integrate and operate subsidies provided by the State and local governments prescribed in Article 4 and earnings from its own business.

(2) The revenue of university accounts from State and local government subsidies are as follows:

1. Money transferred from the general accounts and special accounts of the State;

2. Money transferred from local governments.

(3) The revenue of university accounts from earnings from universities' own business are as follow: <Amended on Mar. 23, 2021>

1. Admission fees, tuition fees and other payments made by enrolled students or other students on the register for educational courses, open lectures, education commissioned by business entities, intensive major courses, part-time registration, etc. which are established and operated in accordance with the Higher Education Act;

2. Tuition fees of students on the register of lifelong education institutions prescribed in subparagraph 2 of Article 2 of the Lifelong Education Act;

3. Screening fees of persons who intend to be admitted to or register for the relevant university;

4. Fees for examining theses of graduate school;

5. Charges, charges for use, and prices of unused things sold;

6. Balance carried over;

7. Money transferred from other accounts;

8. Interest receipts;

9. Prices of intangible assets and books sold;

10. Earnings from the disposal of State property vested in pursuant to Article 26 (3);

11. Others.

(4) The expenditure of university accounts shall be all the expenses of national universities necessary for education, research, social services, operation of universities, installation of facilities, etc.

(5) The fiscal year of university accounts shall begin on the first day of March of the relevant year and end on the last day of February of the following year.

Article 12(Principles to Operate University Accounts) #

The head of each national university shall endeavor to observe the following matters when operating university accounts: <Amended on Mar. 23, 2021>

1. Securing financial stability;

2. Minimizing the burden to students and parents;

3. Reinforcing competence in education and research;

4. Guaranteeing a right to receive equal education without discrimination based on income, region, etc.

Article 13(Using Earnings after Transfer to Revenue) #

Every national university shall use all earnings after they are transferred to revenue: Provided, That the same shall not apply to security deposits for bidding, security deposits for contracts, money in custody, and miscellaneous money prescribed by Ordinance of the Ministry of Education.

Article 14(Compilation of and Resolution on Budget) #

(1) The head of each national university shall compile a revenue and expenditure budget proposal every fiscal year and present it to the finance committee prescribed in Article 8 not later than 40 days prior to the date on which the fiscal year begins.

(2) Every finance committee shall deliberate and resolve on revenue and expenditure budget proposals not later than 10 days prior to the date on which the fiscal year begins.

(3) No finance committee shall increase the amounts in the paragraphs of the revenue and expenditure budget proposal nor establish new items of expenditure without the consent of the head of the national university.

(4) Where the head of a national university intends to partially correct the details of a revenue and expenditure budget proposal due to unavoidable causes after submitting the proposal to the finance committee, he or she may submit it again by preparing a revised revenue and expenditure budget proposal.

Article 15(Reserve Funds) #

(1) In order to appropriate for unpredictable expenditure for which budget is not secured, or for expenditure that exceeds budget, the head of each national university may appropriate an amount equivalent to not more than 1/100 of the total budget amount of university accounts for a reserve fund.

(2) Approval for spending reserve funds shall be obtained from finance committees in the following fiscal year.

Article 16(Continuing Expenses) #

(1) The head of each national university may spend expenses for construction works, manufacturing, and research and development projects that require several years to be completed, spanning several years within the scope resolved by the finance committee in advance, by determining the total amount and annual amounts of such expenses. <Amended on Mar. 23, 2021>

(2) The maximum number of years in which it is possible to spend expenses pursuant to paragraph (1) shall be five years from the relevant fiscal year: Provided, That where the head of each national university deems it necessary, the maximum number of years for such expenditure may be extended by undergoing resolutions of finance committees.

Article 17(Revised Supplementary Budget) #

Where it is necessary to change the budget already established, the head of each national university shall compile a revised supplementary budget and obtain the resolution of the finance committee thereon.

Article 18(Execution of Expenses When Budget Is Not Established) #

Where a finance committee fails to make a resolution on a budget proposal until a new fiscal year begins, the head of each national university may execute the following expenses by applying mutatis mutandis the budget of the previous year thereto until a resolution is made on the budget proposal. In such cases, the expenses executed shall be considered to have been executed based on the budget resolved when a resolution is made on the budget of the relevant year:

1. Remuneration of teachers, lecturers, teaching assistants, employees, etc.;

2. Expenses subsidized by the State;

3. Expenses directly used for education and research;

4. Expenses for maintaining and managing school facilities;

5. Expenses the payment of which is obliged by the statutes and contracts;

6. Expenses for projects already approved by the budget.

Article 19(Prohibition of Using Budget for Other Purposes) #

No head of a national university shall use expenses for purposes other than those prescribed by expenditure budget.

Article 20(Carry-over of Expenditure Budget) #

(1) No expenditure budget of each fiscal year shall be used by being carried over to the following year.

(2) Notwithstanding paragraph (1), any of the following expenses may be used by being carried over to the following fiscal year. In such cases, the amounts carried over shall not be used for other purposes, and the amounts that fall under subparagraph 1 shall not be carried over again:

1. An expense not spent within the relevant year due to inevitable causes, where the act that incurred the expense is conducted within the relevant year, and an expense incidental to the act that incurred the expense, which is not conducted;

2. An amount specified as an expenditure of the following year after obtaining approval from finance committees.

(3) Where the head of a national university carries over a budget pursuant to paragraph (2), the amount carried over shall be considered to be allocated as the carried-over budget of the following year.

Article 21(Settlement of Accounts) #

(1) The head of each national university shall prepare a written statement of settlement of accounts each fiscal year and obtain approval therefor by submitting it to the finance committee within two months from the date on which the fiscal year terminates.

(2) Every written statement of settlement of accounts concerning revenue and expenditure shall be prepared according to the same classifications as those of revenue and expenditure budget, and the details thereof shall be clearly stated.

Article 22(Preparation and Submission of Financial Reports) #

(1) The head of each national university shall use the double-entry bookkeeping method for accounting economic substance on an accrual basis, as prescribed by Ordinance of the Ministry of Education, and prepare financial reports and submit them to the finance committee within two months from the date on which the fiscal year terminates.

(2) Where the head of a national university submits financial reports pursuant to paragraph (1), he or she shall attach an accounting audit report prepared by certified public accountants prescribed by the Certified Public Accountant Act thereto.

Article 23(Treatment of Surplus Accruing from Settlement of Accounts) #

Any surplus that accrues from the settlement of university accounts shall be included in the revenue of the following fiscal year.

Article 24(Disclosure of Budget, and Settlement of Accounts) #

(1) The head of each national university shall, within one month after the revenue and expenditure budget, and the settlement of accounts are declared final and conclusive, disclose the details of the relevant budget, and settlement of accounts, and financial reports prescribed in Article 22 (1) in the university newspaper and on the Internet website of the university.

(2) The head of each national university shall submit a written statement of revenue and expenditure budget, a written statement of settlement of accounts, and financial reports prescribed in Article 22 (1) to the Minister of Education by undergoing resolutions of the finance committee: Provided, That the heads of various national schools, the authority over the establishment and operation of which is entrusted to the heads of the relevant central administrative agencies pursuant to Article 59 (3) of the Higher Education Act, shall submit them to the heads of the relevant central administrative agencies.

Article 25(Transfer between Accounts) #

(1) For the efficient operation of special purpose business and profit-making business, or funds within the scope not hindering the achievement of the objectives of each account, the head of each national university may use some of financial resources by transferring them between the university accounts, the accounts of the development fund established in accordance with the Act on the Establishment and Operation of Public Interest Corporations, and the accounts of the industry-academic cooperation foundation prescribed in the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act: Provided, That the financial resources of the university accounts shall not be used by transfer to other accounts.

(2) The scope of permitting transfer between accounts prescribed in paragraph (1) shall be prescribed by Ordinance of the Ministry of Education.

Article 26(Property Management) #

(1) Facilities, land and commodities acquired with the financial resources of university accounting shall be deemed State property. <Amended on Mar. 23, 2021>

(2) Where the use of the State property under paragraph (1) is abolished, the Minister of Education may manage and dispose of it with the designation of the Minister of Economy and Finance pursuant to Article 40 (2) 4 of the State Property Act; <Newly Inserted on Mar. 23, 2021>

(3) Notwithstanding Article 17 of the National Finance Act, Article 7 of the Management of the National Funds Act, and subparagraph 4 (b) of Article 26-3 of the State Property Act, earnings from the disposal of State property under paragraph (2) may be fully or partially vested in the revenue of university accounts under Article 11 in accordance with the consultation with the Minister of Economy and Finance. <Newly Inserted on Mar. 23, 2021>

Article 27(Tuition Fees) #

(1) When determining tuition fees, etc., the head of each national university shall sufficiently take into account the level of the educational courses the national university provides, burden to students and parents, effects of tuition fees, etc. on prices and on the national economy, etc.

(2) When determining tuition fees, etc., the head of each national university shall prepare a detailed plan for the use of tuition fees, etc. and submit it to the finance committee in advance.

Article 28(Payment of Costs for Education, Research, etc.) #

(1) The head of each national university may pay the teachers and employees belonging thereto the expenses for education, research, instruction of students, etc. with the financial resources of the university accounts.

(2) Basic matters concerning the payment of costs prescribed in paragraph (1) shall be prescribed by Ordinance of the Ministry of Education, and the head of each national university may stipulate detailed matters by regulations for financial affairs and accounting within the scope prescribed by Ordinance of the Ministry of Education.

Article 29(Employment of Staff in Charge of University Accounts) #

(1) The head of each national university may, if necessary for the operation of the university, employ the staff whose expenses are borne with earnings from its own business (hereinafter referred to as "staff in charge of university accounts"), other than state public officials. <Amended on Mar. 23, 2021>

(2) The head of each national university shall determine matters necessary for the appointment, remuneration, services, etc. of the staff in charge of university accounts.