Circular No. 01/2009/TT-BTC guiding the implementation of Decision No. 101/2008/QĐ-TTg dated July 18, 2008 of the Prime Minister on the issuance of financial management mechanisms and staffing for the State Treasury System under the Ministry of Finance for the period 2009-2013.

CIRCULAR

Guidelines for implementing Decision No. 101/2008/QĐ-TTg dated July 18, 2008 of the Prime Minister on the issuance of financial management mechanisms and staffing for the State Treasury system under the Ministry of Finance for the period 2009-2013.

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 138/2007/QĐ-TTg dated August 21, 2007 of the Prime Minister approving the strategy for developing the State Treasury until 2020;

Pursuant to Decision No. 101/2008/QĐ-TTg dated July 18, 2008 of the Prime Minister on the issuance of financial management mechanisms and staffing for the State Treasury system under the Ministry of Finance for the period 2009-2013;

Pursuant to Circular No. 157/UBTVQH12 dated October 15, 2008 of the Standing Committee of the National Assembly regarding the implementation of self-management mechanisms concerning organizational structure, staffing, and finance for administrative and service units;

The Ministry of Finance hereby provides guidelines for implementing financial management mechanisms and staffing for the State Treasury System (ST) as follows:

I. GENERAL PROVISIONS

1. Implement financial management and staffing mechanisms applicable to ST units under the Ministry of Finance during the period 2009-2013 according to Decision No. 101/2008/QĐ-TTg dated July 18, 2008 of the Prime Minister.

2. The implementation of financial management and staffing mechanisms for the ST must ensure the following objectives and requirements:

a) Effectively perform the function of managing state budget funds, financial funds, and other state funds; complete the task of raising funds for the state budget and managing national assets; improve the quality of business operations and serve activities through transactions and payments with agencies, organizations, and individuals.

b) Reform financial management and staffing mechanisms for ST activities; promote the restructuring, organization, and building of a clean, strong, and highly qualified workforce; grant autonomy and responsibility to unit heads in organizing work, using labor, and utilizing financial resources.

c) Actively utilize allocated financial resources, practice thrift, and combat waste; concentrate resources to implement the development strategy for the ST until 2020; construct office premises and warehouses ensuring safety and synchronization; build an information technology system equipped with modern technology to enhance management efficiency and effectiveness to fulfill assigned functions and tasks, gradually integrate into the international community; strengthen training and gradually supplement income for civil servants.

d) Implement transparency and democracy in accordance with the provisions of the law, ensuring the legitimate rights of ST civil servants.

3. The annual operating expenses of the ST include: state budget allocation, all revenue from ST business activities, and other lawful sources of funding.

4. The ST is responsible for managing and using operating funds, assets, and staffing in accordance with current regulations of the State and the guidelines set forth in this Circular.

5. Within the scope of allocated operating funds and staffing, based on the characteristics and nature of activities of units within the ST system, the General Director of the ST decides to allocate operating funds and staffing to each unit appropriately.

II. SPECIFIC PROVISIONS

1. On staffing:

1.1. The staffing of the ST is determined within the total number of positions granted by competent state authorities to the Ministry of Finance; the Minister of Finance allocates staffing quotas for the ST in accordance with its functions and responsibilities as prescribed.

1.2. The General Director of the ST proactively organizes, manages, and uses civil servants and officials in accordance with the law and regulations of the Ministry of Finance. The total number of positions allocated to ST units shall not exceed the staffing quota already granted by the Minister of Finance to the ST.

In addition to the allocated staffing, the ST may enter into contracts for work outsourcing and labor contracts in accordance with the law.

1.3. In cases where additional STs are established or merged at provincial and centrally-administered city levels or when new functions and tasks are added according to decisions of competent authorities, the General Director of the ST proactively rearranges staffing within the total staffing quota granted by the Minister of Finance. If it is necessary to increase staffing quotas to meet newly arising tasks, the General Director of the ST reports to the Minister of Finance for consideration and coordination with the Minister of Home Affairs to submit to the Prime Minister for decision.

2. On sources of funding and contents of expenditure:

2.1. The annual operating funds of the ST include:

a) State budget allocation to cover one-time salary, wages, allowances, and contributions as stipulated by the State on the basis of the staffing quota granted by the Minister of Finance.

b) All revenue from ST business activities as prescribed by the State, including:

- Revenue generated from payment and money transfer activities; precious metals, foreign currencies, and securities storage and inspection activities.

- Revenue from interest and fee differences from deposits with the State Bank and commercial banks minus fees payable.

- Revenue from advance capital lending activities as prescribed by the Ministry of Finance.

- Revenue from selling stamps to customers and service fees for collecting electricity and water payments.

- Other lawful sources of revenue.

c) Other sources of funding allocated by the state budget in accordance with the law, including:

- Funding for national target programs and projects as prescribed by the State.

- Funding for the issuance, payment, and settlement of treasury bills and bonds.

- Funding for staff reduction programs as prescribed by the State (if applicable).

- Borrowing, aid, and other sources of funding allocated by competent authorities.

2.2. Contents of expenditures for ST operations:

a) Regular expenses:

- Personal payment expenses: Salary, wages, allowances, contributions (including social insurance, health insurance, trade union fees), rewards, and collective welfare benefits as prescribed by the State and other personal payment expenses.

- Administrative management expenses: Payment for public services; office supplies; information, propaganda, communication; conferences; travel expenses; rental expenses; regular maintenance and repair of fixed assets and other administrative expenses.

- For business operations: Procurement of materials, goods for professional and operational purposes; safety equipment for warehouses, counting devices; various seals; uniforms, labor protection equipment; expenses for counting, inventory rotation, transfer, security of warehouses, money, gold, precious stones, foreign currency, and valuable certificates; preservation and storage of documents and vouchers; other operational expenses.

- Expenses for organizing and implementing tasks, rewarding organizations and individuals within and outside the State Treasury system who have made contributions to completing the tasks of the State Treasuries at all levels.

- Expenses for overseas study tours; expenses for receiving and hosting foreign guests visiting Vietnam, organizing international seminars and conferences in Vietnam.

- Other regular expenses.

b) Irregular expenses:

- Investment expenses for new construction, major repairs, renovation, and expansion of warehouses, offices, and transaction facilities of the State Treasury: Annually, the State Treasury allocates a minimum of 10% of its budgeted revenue from operational activities assigned by the Minister of Finance to implement these expenses. The management and use of investment funds shall comply with laws on investment and construction.

- Expenses for purchasing specialized equipment; major repairs and procurement of assets serving professional work.

- Expenses for maintaining, developing, and modernizing the industry and information technology.

- Expenses for scientific research, training, and professional development for officials and civil servants according to the programs and plans of the State Treasury.

- Expenses for insuring vehicles, assets, and warehouses as prescribed.

- Expenses to compensate losses of money and property in cases of force majeure such as natural disasters, fires, and risks as stipulated by law.

- Expenses for supporting the dispatch, rotation, and assignment of officials and civil servants within the State Treasury system.

- Special and unexpected expenses.

- Other expenses of the State Treasury.

- Expenses allocated by the state budget according to the provisions of law, including:

+ Expenses for national target programs and projects as prescribed by the State.

+ Expenses for streamlining the workforce according to the regulations set by the State (if applicable).

+ Expenses for issuing, settling treasury bills, bonds, and promissory notes.

+ Other expenses allocated by authorized agencies.

c) Implementing programs, plans, projects, and proposals on the application of information technology, procurement of equipment, investment in construction, strengthening material foundations, training and professional development of officials and civil servants, and other contents according to the common tasks of the entire finance sector, including serving the professional tasks of the State Treasury system. The Minister of Finance decides on the allocation of the budget for the implementation of the above tasks from the approved revenue from the operational activities of the State Treasury.

3. Standards, rates, and expenditure regimes:

The General Director of the State Treasury actively guides the implementation of current standards and expenditure rates prescribed by the State and the Ministry of Finance in the State Treasury system to suit the activities of the State Treasury.

For special expenses, the General Director of the State Treasury bases on the available funding and applies current standards and rates to establish special standards and rates suitable for approval and issuance by the Minister of Finance.

- Regarding salary and wage rates: Based on the number of positions assigned by the Minister of Finance and the operating budget, the average salary and wage rate for officials, civil servants, and employees in the State Treasury system is 1.8 times the salary rate prescribed by the State (including grade, rank, position salaries, and various allowances, excluding night and overtime allowances).

The implementation of the contribution deduction and payment regime according to salary follows the current regulations of the State.

The General Director of the State Treasury decides on the distribution of salaries and wages based on the quality and quantity of work completed by each official, civil servant, and employee, following the principle of fairness and reasonableness, linking salaries to work performance, based on establishing and issuing internal expenditure regulations of the State Treasury.

4. Each year, the savings from regular operational expenses and the surplus between the budgeted funds specified in point b, clause 2.1, section 2 above and the projected revenue from the operational activities of the State Treasury assigned by the competent authority (referred to as additional revenue and savings), the State Treasury may use for the following purposes:

4.1. Allocate a minimum of 25% to establish a Fund for Developing Industry Activities to implement: Strategic development of the State Treasury; investment in enhancing material foundations, constructing, repairing warehouses, offices, and transaction facilities; procurement and upgrading of equipment for professional work; application of information technology; supplementing training, seminars, professional development, research on drafting guidance documents for management tasks and related responsibilities.

4.2. Establish a Stabilization Income Reserve Fund to cover: Expenses to ensure stable income for State Treasury officials and civil servants due to objective reasons reducing their income; support for State Treasury officials, civil servants, and employees facing difficult circumstances, suffering from serious illnesses, or death, or other special cases. The Minister of Finance will specify the detailed rate for establishing the Stabilization Income Reserve Fund.

4.3. Allocate up to three months' salary and wage income to the Reward and Welfare Fund.

4.4. Expenses for cooperation in work within and outside the State Treasury system, supporting Party and mass organization activities.

4.5. Additional subsidies beyond general policies for those voluntarily retiring during the restructuring and reorganization process; expenses to support public institutions under the State Treasury system.

4.6. Supplementing income for officials, civil servants, and employees in the State Treasury system up to 0.2 times the salary rate prescribed by the State (grade, rank, position salaries, and various allowances, excluding night and overtime allowances).

4.7. Any remaining funds (if any) after setting aside for the Funds and ensuring the aforementioned expenses, the State Treasury will fully allocate to the Fund for Developing Industry Activities.

5. During the period of implementing financial management and staffing mechanisms, when the State changes policies and systems, the State Treasury will self-fund additional expenses according to the new policies and systems.

In cases where, due to objective factors such as supplementing functions and tasks pursuant to decisions of competent authorities, natural disasters, and other objective reasons, revenue from business activities decreases due to changes in state policies, and after utilizing all sources of the Fund but still failing to ensure the minimum expenditure level necessary to maintain the operation of the State Treasury system's machinery, the General Director of the State Treasury proposes a plan to report to the Minister of Finance for consideration and submission to the Prime Minister for adjustment of the state budget expenditure estimate to be appropriate, ensuring that the State Treasury fulfills its assigned tasks effectively.

6. Regarding the preparation, implementation of the budget estimate, accounting records, and final accounts, this Circular guides specific points as follows:

6.1. On annual budget estimate preparation: The State Treasury is responsible for preparing the revenue and expenditure budget estimates to send to the Ministry of Finance (primary budget unit) for review and consolidation to be included in the annual state budget estimate according to the Law on State Budget and guiding documents of the Ministry of Finance, including:

a) On sources of funds:

- State budget allocation: Ensuring one-time payment of salaries, wages, allowances, and contributions as prescribed by the state; other sources of funds allocated by the state budget as stipulated by law.

- All revenues from business activities of the State Treasury as prescribed.

b) On expenditure budget estimate: The State Treasury prepares it according to the contents specified in Clause 2.2, Section 2-II of this Circular.

6.2. On budget allocation:

a) Based on the annual state budget expenditure estimate assigned by the Prime Minister, the Ministry of Finance (primary budget unit) implements the allocation of the state budget expenditure estimate to the State Treasury within the total allocated state budget expenditure estimate for the Ministry of Finance.

b) Based on the annual revenue-expenditure estimate prepared by the General Director of the State Treasury, the Ministry of Finance (primary budget unit) implements the allocation of the revenue-expenditure estimate to the State Treasury.

For any increase in revenue compared to the allocated estimate, every six months and at year-end, the General Director of the State Treasury reports to the Minister of Finance proposals for distribution according to the expenditure items, setting aside the aforementioned Funds to allocate the budget estimate to units under the State Treasury in accordance with current regulations.

6.3. On budget allocation:

a) Based on the allocated revenue and expenditure estimates, the General Director of the State Treasury proposes a budget allocation plan to report to the Minister of Finance (primary budget unit) for approval in accordance with regulations.

The Ministry of Finance (primary budget unit) sends the proposed budget allocation plan to the Ministry of Finance (state management agency) for approval of the state budget expenditure estimate assigned by the Prime Minister.

b) The budget allocation must ensure the following contents:

- Full funding sources, including: State budget, revenue from business activities, lawful funding sources as prescribed.

- Detailed allocation of revenue and expenditure budget estimates according to:

+ Recurrent expenditures: Based on the staffing quota assigned, labor contracts; expenditure standards and systems for recurrent expenditure items as prescribed, the State Treasury allocates the budget estimate to units under the State Treasury system and details according to the state budget and revenue from business activities.

+ Non-recurrent expenditures: Detailed according to the expenditure items and allocated funding sources.

6.4. Adjustments to the budget estimate, withdrawal of state budget expenditure, provision of funds from the revenue of the State Treasury's business activities, and accounting and reporting of final accounts: The State Treasury implements according to current regulations.

7. The use of the Industry Development Fund: The General Director of the State Treasury prepares a usage plan, proposing a budget allocation plan for the usage contents to report to the Minister of Finance (primary budget unit) for approval to implement.

8. Unspent funds at year-end may be carried over to the next year for continued use.

III. IMPLEMENTATION

1. The Ministry of Finance (primary budget unit) is responsible for guiding and implementing the financial management and staffing mechanism for the State Treasury system as stipulated in Decision No. 101/2008/QĐ-TTg dated July 18, 2008, of the Prime Minister and guided in this Circular.

2. Based on the guidance of the Ministry of Finance (primary budget unit), the General Director of the State Treasury has the responsibility to guide and organize the implementation for units under the State Treasury system.

Annually, the State Treasury organizes inspections, evaluations, and lessons learned in the implementation of the financial management and staffing mechanism to ensure compliance with the objectives and requirements set out in Decision No. 101/2008/QĐ-TTg dated July 17, 2008, of the Prime Minister.

In the third quarter of 2013, the General Director of the State Treasury will organize a summary and evaluation of the implementation of the financial management and staffing mechanism of the State Treasury during the period 2009-2013 and develop the financial management and staffing mechanism for the State Treasury for the subsequent period to report to the Ministry of Finance for submission to the Prime Minister for decision.

3. Allocated funds for the State Treasury system (including all Funds) from before 2008 that have not been used, the State Treasury may continue to use them to serve professional tasks, investment construction expenses, and strengthening of infrastructure and industry development in accordance with this Circular.

4. This Circular takes effect 15 days after its publication in the Official Gazette and applies to the fiscal years during the period 2009-2013. It abolishes Circular No. 15 TC/TVQT dated February 27, 1996, of the Ministry of Finance on the financial management regime for the State Treasury system and Circular No. 67/2005/TT-BTC dated August 24, 2005, guiding the implementation of Decision No. 169/2005/QĐ-TTg dated July 7, 2005, of the Prime Minister on the implementation of staffing and operational funding allocation for the State Treasury during the period 2005-2007.

During the implementation process, if there are difficulties or obstacles, they should be reported to the Ministry of Finance for timely study and resolution./.