Laws Information

法規資訊

Article Content

Chapter  I  General Provisions
Article 1
To response to the trend of higher education development, improve the quality of education, enhance educational performance, and facilitate the flexible operations of school finance, a national university should establish an Endowment Fund and there is hereby enacted the Act.

Article 2
The Endowment Fund for a national university (hereinafter referred to as the “Fund”) is a special fund, under Article 4, paragraph 1, subparagraph 2, of the Budget Act, and shall compile a subordinate unit budget.

Article 3
The sources of the Fund are as follows:
1. Government budget appropriations, excluding any grants-in-aid or income specified in the subparagraph 2, item 4, of this Article.
2. Self-raised incomes are listed as follows:
(1) Tuition fee incomes.
(2) Continuing education incomes.
(3) Academia-industry cooperation incomes.
(4) Grants-in-aid for scientific research or income from government commissioned projects.
(5) Site equipment management incomes.
(6) Donation incomes.
(7) Earnings gained from investment.
(8) Other incomes.
The grants-in-aid for scientific research specified in the subparagraph 2, item 4, of the preceding paragraph refer to the government grants given to a national university in accordance with relevant provisions specified in the Fundamental Science and Technology Act to facilitate the development of science and technology research.

Article 4
The purpose for the Fund shall be as follows:
1. Teaching and research expenditures.
2. Personnel expenses.
3. Student grants.
4. Continuing education expenditures.
5. Education cooperation expenditures.
6. Asset increment, expansion, and improvement expenditures.
7. Other school development related expenditures.

Chapter  II  Organization
Article 5
A national university should establish a Management Committee of Endowment Fund (hereinafter referred to as the “Committee”) to operate the Fund. The Committee shall consist of seven to fifteen members. The principal of the national university shall be an ex-officio member and the convener of the Committee. The other members of the Committee shall be selected by the principal and appointed by the university affairs meeting.
Not less than one-third of the Committee members mentioned in the preceding paragraph shall be representatives of teachers who hold no administrative position in the university, and when it is necessary, outside professionals may be engaged as members. The term of the Committee members will be no longer than two years.

Article 6
The Mission of the Committee:
1. Drafting and deliberation of the Fund’s annual budget estimate.
2. Performance appraisal of the Fund’s income and expenditure, and the use of the Fund.
3. Deliberation of annual financial plans and annual investment plans.
4. Deliberation of regulations for revenue and expenditure control of the self-raised incomes, in accordance with the provisions specified in Article 13, paragraph 2, of the Act.
5. Other budgets and final accounts, income and expenses, custody and use of the Fund.

Article 7
To strengthen internal controls and to ensure the continuing effective operation of the internal control system, a national university shall act in accordance with the following provisions:
1. If the Fund received annual gross income more than two billion New Taiwan dollars, the Committee should engage one to several full-time auditors affiliated to the principal. When necessary, the Committee should establish an ad hoc audit unit with a supervisor.
2. If the Fund received annual gross income less than two billion New Taiwan dollars, the provisions of the preceding paragraph apply, mutatis mutandis, to this case, or the Committee should engage part-time auditors affiliated to the principal.
Both the full-time and part-time auditors shall have auditing experience and relevant professional background. The required manpower should gain from adjusting number of personnel within the limit of existing budget. The supervisor of the audit team may be hired with a contract.
When the auditors carry out the tasks specified in the provisions of Article 8, matters relating to conflicts of interest shall be prescribed by the Ministry of Education.

Article 8
Tasks of an auditor or auditing team in a national university:
1. Matters of personnel, finance, operations, and related party transactions, and ex post audit of the transaction cycle of the Fund.
2. Ex post audit of cash received and paid out, and bad debts treatments.
3. Auditing and Making an inventory of cash, bank deposits, securities, stocks, bonds, and fixed assets.
4. Regular assessment, auditing/collecting operation, and aggregated reports of the Fund’s performance goal attainments of various businesses.
5. Examination and assessment of the efficiency of the use of the Fund and benefits of the various expenses.
6. Other ad hoc audit matters.
The transaction cycle specified in the provisions of the preceding paragraph, subparagraph 1, of the Act includes revenue cycle, procurement and payment cycle, payroll cycle, property management cycle, investment cycle, financing cycle, research and development cycle.
A national university shall draw up an annual audit plan, based on the results of the risk assessment, prepare an annual audit report, and report to university affairs meeting.

Chapter  III  Business and Supervision
Article 9
All income and expenses of a national university shall be incorporated into the Fund, in accordance with law.
The management and supervision measures of the Fund shall be stipulated by the Ministry of Education.

Article 10
To ensure the sustainability of the Fund and to enhance the effectiveness of administrative affairs’ development, a national university shall propose an annual investment plan, and after being deliberated by the Committee, may invest in the following items:
1. Deposits in public and private financial institutions.
2. Purchases of bonds, treasury bills, or other short-term bills.
3. Invest in the development of administrative affairs or in companies and enterprises related to research. Except for stock rights obtained from research achievements or capitalized value of proprietary technology, self-raised incomes may serve as the sources of investment capital.
4. Other profitable and secure investments that improve efficiency.
The limits of the amount of investments specified in the provisions of the preceding paragraph, subparagraph 3 and subparagraph 4 shall be determined by the Ministry of Education.
Tuition fee incomes and other self-raised incomes that have specific purposes shall not be used as the source of investment funds specified in the provisions of paragraph 1, subparagraph 3 of the Act.
To handle the investment specified in paragraph 1, a national university shall organize an investment management team to prepare an annual investment plan and carry out investment evaluation and decision-making activities and report periodically on investment returns to the Committee. A national university should formulate the investment management team’s selection, eligibility, and other matters.
The investment plan and benefits specified in the preceding paragraph shall be incorporated into a national university’s financial planning report and the Fund’s performance report, and submit to the Ministry of Education for future reference.

Article 11
The compilation of the Fund’s budget should be based on the national university’s middle-and long-range development plan, with the discretion of the Fund’s financing and estimated revenue and expenditures, and on a principle that the Fund should keep balance of payments or surplus, to define the university’s prospect of educational performance goals and incorporate it into the annual financial planning report for the national university to announce.
The Fund should be implemented with the annual financial planning report. A national university shall announce the Fund’s performance report next year.
The format, content, announcement time, approach, and other compliance requirements of the annual financial planning reports and the Fund’s performance reports specified in the preceding two paragraphs shall be prescribed by the Ministry of Education.

Chapter  IV  Accounting and Finance
Article 12
The Ministry of Education shall stipulate a unified accounting system for processing the accounting transaction of the Fund. A national university, by following the unified accounting system, shall formulate performance-oriented accounting principles to carry out the transaction, based on the university’s characteristics of academic research and teaching.

Article 13
Annual budget preparation, execution, and account formulation related to the endowment fund shall be implemented pursuant to the Budget Act, Accounting Act, Financial Statement Act, Audit Act, and relevant acts and regulations. But the self-raised incomes of the sources of the Fund specified in the provisions of Article 3, paragraph 1, subparagraph 2, of the Act are not subject to this limitation.
A national university shall stipulate regulations for revenue and expenditure control of the self-raised incomes specified in the provisions of the preceding paragraph, and shall operate the incomes under the supervision of the Ministry of Education, in accordance with Article 9, paragraph 2, of the Act.

Article 14
The endowment that a national university acquired under the conditions that the university is the donee administrative authority and the Ministry of Education is the competent authority, except for the endowment that has attached conditions stipulated in the provisions of Article 29, paragraph 2, of the Regulations for the Enforcement of National Property Act, is exempted from the stipulations specified in Article 37 of the National Property Act.

Article 15
A legally incorporated foundation shall regularly submit financial statements and board meeting minutes to the Committee, if it is doing business as the national university and the principal or administrative directors of the university are stipulated in its donation articles as the foundation’s ex-officio directors of the board. When necessary, the Committee may invite the principal or the administrative directors of the university who assume the ex-officio directors of the incorporated foundation to attend and report to the Committee’s meetings.
A national university shall not make use of the incorporated foundation specified in the preceding paragraph in contract for work of research projects or academia-industry cooperation cases commissioned by both public and private organizations (agencies).

Chapter  V  Supplementary Provisions
Article 16
The same provisions of the Act apply, mutatis mutandis, to a national college, academy, conservatory, polytechnic, or other public institutes that have established the Fund.

Article 17
This Act shall become effective at the date of promulgation.