DEED OF FOUNDATION OF THE NATIONAL INSTITUTE OF VOCATIONAL AND ADULT EDUCATION

Pursuant to Article 89 (1) of Act XXXVIII/1992 on Public Finances and Article 6(1)e) of Government Decree No. 170/2006. on the Powers and Responsibilities of the Minister of Social Affairs and Labour, the Minister of Social Affairs and Labour, in agreement with the Minister of Finance, in compliance with Article 6 (1) of Act LXXVI/1993 on Vocational Education, by the amendment of the Deed of Foundation embedded into one structu re organises under the tasks of the National Institute of Vocational Education the duties of the National Institute of Adult Education the National Institute for Family and Social Policy Training Centre (Salgtarjn) and the training division of the Labour Market Fund of the Fund Management Directorate of the Ministry of Education, and duties related to the management of subsidies provided by the training fund division. I. General provisions The National Institute of Vocational Education is a fully author ized, independently managed central budgetary organ. Its Training Organisation Centre (Salgtarjn) operates as a partially authorized budgetary organ. Official name of the budgetary organ: Short name: Name in English: Short name Name in German: Registered seat: Premises: Nemzeti Szakkpzsi s Felnttkpzsi Intzet NSZFI National Institute of Vocational and Adult Education NIVE Nationalinstitut fr Berufsbildung und Erwachsenenbildung 1087 Budapest, Berzsenyi D. u. 6. 1106 Budapest, Fehr u. 10. 1106 Budapest, Fehr u. 10. Building 25/B 3100 Salgtarjn Mjus 1. t 54. Minister of Culture and Public Education October 1, 1990 Minister of Education 10032000-01744260-00000000 II. Core and supplementary activities of the Institute 1. Core activities of the Institute: a) The Institute conducts, initiates, organizes and coordinates regional and nation -wide research activities. It provides professio nal support to experiments, research and the implementation of innovative efforts initiated or performed by teachers and andragogists or institutions engaged in vocational education; b) Pursues the continuous development of the vocational structure. With in the framework of this activity, in line with the recommendations of the ministers responsible for vocational education, the Institute develops the draft National Training Register, prepares it for approval and publication, monitors its implementation an d makes proposals concerning its amendment or updating; c) Compiles and publishes the national module map;

Founder: Date of Foundation: Supervisory authority: Account number:

d) Provides for the continuous development of the contents of vocational education. Within the framework of this: - develops, prepares for publicat ion and manages vocational and examination requirements pertaining to qualifications, - has the central programs (curricula), textbooks and teaching/learning aids pertaining to vocational qualifications and vocational subjects developed, prepares them for publication and manages them, - develops professional documentation pertinent to adult education and provides for their continuous development, -has the educational documents pertaining to the education of socially disadvantaged students and students living with a disability developed, - initiates central developments and supports regional and local developments, - examines, analyzes and evaluates the efficiency of vocational training organized in institutions engaged in vocational education, and participat es in the introduction of quality improvement models and systems to be applied in the field of vocational education, - collects domestic and international vocational training methods, facilitates the development, adaptation, improvement and circulation of efficient procedures and methods; e) Makes comparisons between domestic and international qualification requirements. Develops the set of conditions under which vocational qualifications adapted to European requirements can be equivalent , as well as validation of national and international qualifications; f) Performs development, analysis and evaluation activities related to adult education , with special respect to the methods and tools of formal, non -formal and informal learning ; g) Performs publishing tasks in support of the development of vocational education, publishes and circulates pedagogical journals and other publications; h) Operates an information service related to vocational education, within the framework of which: - performs the tasks of a c entral office for Hungarian practice firms, - supports the activities of institutions and organizations having an interest in vocational education, - ensures an interface with other domestic and international IT systems, - manages and operates a database o n vocational education; i) Cooperates with organizations of Hungarians abroad in the areas of vocational education; j) Performs the tasks related to the organization of national and worldwide vocational competitions. k) Provides for the teaching materials and the preparation of professionals necessary for the development of services related to adult and vocational education, with special respect to preliminary knowledge assessment, career orientation and counselling, and attributes related to work l) Coordinates the adult education professional development work of regional workforce development and training centres; m) Operates the National Reference Point, among others for the management of Europass certificate supplements and the Hungarian National Observa tory; n) Collects and analyses adult education statistical data set forth in a separate regulation; o) Manages a central registrar containing the national data of vocational examinations set forth in a regulation; p) Strengthens the relationship between vocational education, adult education, general education, higher education and popular education; q) Develops cooperation with vocational education and adult education institutions in the member countries of the European Union; r) Organises the professional further training of teachers, andragogists and educational institution leaders; s) Provides for the preparation of the assessment of accreditation cases in the scope of the Adult Education Accrediting Body and its secretarial duties; keeps records of accredited institutions and programmes, issues certificates and provides control; t) Performs secretarial duties for the Vocational Textbook and Educational Materials Commission; u) Performs tasks related to vocational education contribution and the managemen t of vocational education and adult education subsidies, set forth in a specific regulation; v) In the framework of subsidy processing and management, the institute keeps record of and collects, controls vocational education contributions, validates financ ial guarantees, prepares

financial reports, tasks related to the preparation, execution and reporting of projects in vocational and adult education, cooperates with the state tax authority to collect vocational education subsidies, as it is set forth by re gulation. w) Cooperates in the preparation and implementation of National Development Plans. 2. Supplementary activities of the Institut e a) It manages until their withdrawal - the development, approval and expedition of central written examination assignments and examination documents of examination activities to be introduced in an ascending system for vocations listed in the National Qualification Register, in accordance with the legal regulations ; b) Under special assignment cooperates in, coordinates and implements international projects, participates in and organizes international meetings and conferences; c) With respect to vocational qualifications within the competence of the Minister of Social Affairs and Labour operates an examination centre, performing nation-wide content-related, organizational and coordination tasks related to vocational examinations, and performing the technical and administrative tasks involved in the appointment of chairmen to the vocational examination boards; d) Provides for the development of special teaching tools and methods of vocational training courses of youths and adults with less advantages, including handicapped persons, and the methodology further training courses of special teachers; e) Participates in the preparation of master curricula for the educational phase preceding and preparing for the acquisition of vocational qualifications from vocational schools or vocational secondary schools; f) Participates in the management of the educational documents of voc ational education conducted in the language of a national minority; g) At the charge of its free capacities organizes practical training in advance technologies for students of educational institutions; h) Provides institutional representation at domestic and international events and fairs; i) Processes and prepares information materials as provided by the relevant statutes of law on the register of institutions engaged in vocational education outside of the school system; j)Performs, with respect to the entire vocational education, as s tipulated by the minister, by asking for the opinion of the minister in charge of the given qualification, national and regional control, pedagogical-professional assessments, audits, evaluations and analys es;; k) Contributes to the appropriate development of the quality of vocational education and adult education in accordance with the Common European Quality Assurance Framework; l) Performs other activities. 3. Basic and supplementary activities of the Institution as listed in the Standard Sectoral Classification of Economic Activities (TEOR) 22.11 Publishing of books 22.13 Publication of periodicals 22.31 Copying of voice recordings 22.32 Copying of video recordings 22.33 Copying of computer data carriers 52.47 Retail trade in books, newspapers and stationery products 67.13 Other financial supplementary activities n.e.c. 72.40 Database activity, on-line publishing 73.20 Human sciences research and development 74.12 Accounting, bookkeeping and auditing activities 74.14 Business and management consultancy activities 74.87 Other business activities n.e.c. 80.22 Vocational and secondary education 80.42 Adult and other education n.e.c. 91.33 Other community and social activities n.e.c. 92.51 Library and archives activitie s III. Training Organisation Centre (Salgtarjn) partially authorized budgetary organ 1. Basic activities of the Training Organisation Centre:

a) it helps the activities of the ministry responsible for the social branch directly and indirectly with respect to training and human resource development, cooperates in the preparation of decisions and regulations; b) participates in strategic planning concerning human resource development and social training courses, c) via its activities it supports the implementation of strategies and guidelines concerning the social branch set forth by the European Union, d) keeps registry of the qualified professionals pursuing professional activities in the organisations providing personal care, e) performs the duties of the National Social and Child Protection Further Education and Specialised Examination Board, f) operates and develops the further, basic and specialised examination system of the social branch, g) as an accredited adult education institution organises nat ional and regional training courses, h) prepares and develops the quality assurance system for training courses. 2. Supplementary activities of the Training Organisation Centre a) With respect to higher education , the Centre helps the Ministry in its work between branches with respect to social higher education, cooperates with the institutions pursuing social higher education (most of all specialised examination and further training, professional further training courses), cooperates with higher education institutions in the development of advanced level qualification courses. b) With respect to training and event organisation, the Centre helps the decision-making work of the Ministry with respect to training courses, participates in the performance of du ties stipulated by regulations concerning training courses necessary to perform certain social jobs, develops a national training network in order to ensure that those performing social services could participate at the training courses at the closest poss ible location to their place of work. development and expedition of examination assignments and organisation of examinations related to qualifications of the Ministry of Social Affairs and Labour outside the school system, the development, approval, expedi tion and organisation of education documents, examination assignments outside the scope of the Ministry of Social Affairs and Labour, organisation of training courses with other purpose than teacher further training, organisation of adult education confere nces and fairs, operation of a commercial accommodation place with a restaurant (Kercseg Pension and Restaurant), renting of free room and equipment of the Training Organisation Centre Activities of the Institution as listed in the Standard Sectoral Class ification of Economic Activities (TEOR) 55.10 Provision of hotel accommodation 55.23 Provision of other accommodation 55.30 Restaurant services 55.51 Canteen services 52.63 Other non-retail outlet retail trade 70.20 Rent and operation of real estate 71.33 Renting of office equipment and computers 74.14 Business and management consultancy activities 74.87 Other business activities n.e.c. 80.42 Adult and other education n.e.c. IV. The operation of the Institute 1. The responsible head of the National Ins titute of Vocational and Adult Education is its General Director. The General Director is appointed on the basis of a management tender , for

a definite period of time of 5 years by the Minister of Social Affairs and Labour. The Minister also has the right to remove the General Director from his position. Other employers rights are exercised by the undersecretary of state responsible for labour and training of the Ministry of Social Affairs and Labour. 2. The deputy of the head of the budgetary organ is the Financial Director responsible for the financial and economic duties deriving from operation , who is appointed (and recalled) by the Minister of Social Affairs and Labour on the basis of a management tender for an indefinite period of time, in accordanc e with the recommendation of the General Director exercising other employers rights. 3. The General Director and the employees of the Institute belong under the scope of Act XXIII/1992 and regulation governing the legal status of civil servants under the scope of the Ministry of Social Affairs and Labour. 4. The General Director exercises employers rights with respect to the employees of the Institute, which rights with the exception of appointment, removal and the withdrawal of management assignments may be transferred to other civil servants in a top management position. 5. The Institute operates a Vocational and Adult Education Research Committee. The tasks and scope of responsibilities of the Committee must be laid down in the Institutes Organizational and Operational Rules (hereinafter referred to as: the COO) . 6. The organizational structure and the order of operations of the Institute are specified in the Organizational and Operational Rules. The General Director is responsible for preparing an d amending the COO latest within 60 days from the entry into force or amendment of the Deed of Foundation, and submitting it to the Minister of Social Affairs and Labour through the undersecretary of state responsible for labour and training for approval. 7. Professional supervision of the Institute is performed by the deputy undersecretary of the Ministry of Education responsible for vocational education. V. Financial management of the Institute The Institute is a budgetary organ exercising financial mana gement independently. It is fully entitled to dispose over specific budgetary allocations. The budget of the Institute is specified within the current Act on the State Budget, in the chapter on the Ministry of Social Affairs and Labour. VI. Closing provisions The present Deed of Foundation shall enter into force as of January 1, 200 7. November , 2006 Budapest

Pter Kiss Minister of Social Affairs and Labour I agree: Dr Jnos Veres Minister of Finance