Directive No. 01-BYT/CT on rectifying financial management work in administrative and public service units

DIRECTIVE

OF THE MINISTER OF HEALTH

On rectifying financial management work in administrative and public service units
On rectifying financial management work in administrative and public service units

Implementing Directive No. 439/CT dated December 24, 1990 of the Council of Ministers on rectifying financial management work, the Ministry of Health issued a guidance letter to units to implement as follows:

In recent times, along with implementing the reform of state management mechanisms, units under the Ministry have gained additional revenue from economic activities, international aid, expert cooperation, labor cooperation, tuition fees, medical fees, etc., increasing funds for operational purposes, while also setting aside a portion to improve the living conditions of staff members.

However, due to the new management mechanism not being fully synchronized, many unreasonable aspects have yet to be revised, understanding of autonomy in the use of state-provided funds as well as other sources of funding remains inaccurate, financial management has not been strict enough, accounting and statistical systems have not been strictly adhered to, therefore, alongside the positive aspects mentioned above, financial management of income and expenditure in units under the Ministry still exhibits significant shortcomings and negative phenomena manifested in the following forms:

1. The system of quarterly and annual budget revenue and expenditure planning is not strictly followed, non-operational revenues such as aid, revenues from production and service activities are not sufficiently calculated and included in the quarterly and annual budgets.

2. Expenditure is not carried out according to the budget, administrative expenses such as electricity consumption, postal fees, telephone charges, fuel for vehicles, conference fees, procurement of imported equipment are not frugal. Some units still maintain a subsidy system for residential electricity consumption for employees living in collective housing areas.

3. State-provided funds are used excessively for hosting guests, gift-giving, organizing group departures and arrivals, scientific seminars, and project acceptance, lacking practical effectiveness and merely for show.

4. Management of repair and construction phases is lax, especially in selecting contractors for lease, reviewing design estimates, and project acceptance and settlement, which are often delayed or wasteful.

5. International aid and revenue from foreign-funded courses and seminars are not managed strictly and utilized optimally.

6. Accounting and bookkeeping regulations are not fully complied with, such as tracking aid goods only by quantity without value and assessing their effectiveness, resulting in high and prolonged arrears, lost or damaged assets are not promptly addressed and responsibility assigned, and timely resolution is not ensured. Settlement reports are not submitted in accordance with current regulations, some units take up to six months to complete the previous year's settlement report, others finish the first quarter's report in the third quarter. Some research projects do not settle quarterly but only annually.

7. Self-inspection at the grassroots level and inspection, audit, and review of budget plans and settlement reports by the Ministry with units are lax, unreasonable standards and norms have not been promptly revised.

These deficiencies primarily lie within the responsibility of unit heads, additionally, chief accountants have not fully fulfilled their role as state controllers, providing advice and requiring compliance with state financial regulations. Many chief accountants lack organizational and managerial skills, some have not adequately studied to become proficient in their field, leading to delays in reporting and settlement, causing the Ministry to be criticized and reminded by the state.

To implement Directive No. 439/CT dated December 24, 1990 of the Council of Ministers to end the aforementioned situation and rectify financial management in units, the Ministry issues this directive for units to perform the following tasks in 1991.

1. Must consolidate and strengthen the accounting machinery at the grassroots level, increase personnel responsible for having both moral integrity and professional expertise, rectify accounting and statistical work, strictly follow state and ministry expenditure regulations, and implement the newly issued accounting system according to Decision No. 257/TC-CĐKT dated June 1, 1990 of the Ministry of Finance. Strengthen self-inspection to detect and prevent corruption and waste, violations of state economic and financial policies and discipline in a timely manner. The Ministry will intensify inspections and audits of units if violations of expenditure regulations and policies are found, and funds spent outside designated purposes will be recovered and returned to the state budget. Unit heads must bear responsibility for any violations.

2. When preparing quarterly and annual budget plans, all sources of revenue and expenditures must be fully accounted for, calculations should closely match actual needs, expenditures must strictly adhere to current standards and regulations with a spirit of thorough thrift as per Decision No. 140/HĐBT dated September 15, 1987 of the Council of Ministers. Immediate actions to be taken include:

a. Units may not construct projects or components beyond the approved construction plan without Ministry approval, nor may they supplement investment capital exceeding the approved amount through any source without Ministry consent. Public service units may not use allocated operational funds to build new guesthouses, offices, or residences. Renovation of facilities in public service units must have designs and estimates approved by the Ministry.

b. Units may not purchase expensive imported equipment that is not truly necessary for professional requirements, especially items domestically produced.

c. Strictly comply with the staffing quota and salary fund already approved by the Ministry. The Ministry will only issue salaries and allowances to units based on the approved staffing quota and salary fund.

d. Immediately implement Directive No. 338/CT dated October 19, 1990 of the Council of Ministers and Circular No. 1719/TC-HCVX dated November 6, 1990 of the Ministry of Finance on thoroughly conserving fuel consumption, aiming to reduce fuel consumption per vehicle, and strictly adhere to automobile usage regulations.

e. Strive to conserve electricity in consumption at each unit, strictly prohibit units from using state budget funds to pay for collective housing electricity expenses for staff members. Units need to take proactive measures to coordinate with the power sector to install synchronized electric meters for households consuming electricity in previous collective residential areas that shared the agency's electricity.

g. Conserve expenditures on conferences and receptions, organize specialized conferences only when truly necessary and must be approved by the Ministry, conference expenditures must comply with the regulations stipulated by the Ministry of Finance.

Scientific seminars must be meticulously prepared in terms of content to achieve practical effects, expenditures must be frugal within the approved budget. From now on, agencies and units are not allowed to use imported alcohol, cigarettes, or soft drinks for receptions.

3. Units are not permitted to use state budget limits to purchase gifts for foreign guests entering the country, or gifts taken abroad exceeding the prescribed limit. In transactions and receptions involving foreign guests, it is necessary to adhere to the prescribed regulations, ensuring courtesy and maintaining good relations in business.

Gifts from foreign guests to individuals and collectives with significant value such as cars... must be reported to the Ministry and submitted to the State Budget according to the regulations of the Ministry of Finance.

4. Eliminate all illegally established funds for expenditures. All sources of income and services must be recorded in the accounting books of the new accounting system as per Regulation No. 257/TC - CĐKT dated June 1, 1990, issued by the Ministry of Finance, strictly prohibiting units from arbitrarily setting additional service fees beyond the specific regulations such as:

a. The regulation on partial hospitalization fees must be implemented as per Decision No. 45/HĐBT dated April 24, 1989, and Circular No. 14/TT-CB dated June 15, 1990, issued jointly by the Ministry of Health and the Ministry of Finance, along with the temporary price list for certain medical services attached.

b. For other services: renting houses, film projection equipment, video, audio, advertising, organizing extra-curricular teaching and medical services outside regular hours must be carried out strictly in accordance with Circular No. 03/TC-HCVX dated February 16, 1989, issued by the Ministry of Finance.

c. For foreign currency revenues generated independently by units, such as revenue from medical services provided to foreigners, must be implemented as per Circular No. 19/BYT-TT dated July 26, 1988, issued by the Ministry. Revenues in cash, goods, and assets received from foreign organizations for cooperation in scientific research and services, including organizing classes and seminars in Vietnam, must be implemented strictly as per Circular No. 10/BYT-TT dated April 8, 1988, and Circular No. 22/BYT-TT dated November 20, 1990, supplemented by the Ministry of Health.

d. For revenues from certain aid items and aid service fees, units must implement strictly as per Circular No. 24/BYT-TT dated November 1, 1989, and Circular No. 3769/KHTC dated August 9, 1990, supplemented by the Ministry of Health.

5. Strictly comply with the new accounting system; urge prompt settlement of debts to avoid long-term arrears, organize the sale of old assets no longer needed by the agency to supplement unit funds in accordance with Circular No. 19/BYT-TT dated September 5, 1989, issued by the Ministry of Health.

Utilize existing aid resources that have not been used or are underutilized to avoid wastage in usage.

Losses and damages to materials and assets must be held accountable, all violations of financial management regulations for state materials and assets must be dealt with strictly according to the law.

Comply with the reporting and finalizing regulations to the Ministry as per Circular No. 57/TC-NSNN dated November 26, 1990, issued by the Ministry of Finance.

6. Continue to study and pilot the establishment of a health insurance fund to mobilize contributions from the people, creating a funding source for healthcare work, gradually replacing hospitalization fees, enhancing the responsibility of agencies and organizations towards the health care cause for the people.

Continue to study amendments and supplements or propose the Ministry of Finance to amend and supplement policies, systems, and standards to suit the characteristics of the industry.

The Ministry requires subordinate agencies and units to strictly enforce this Directive; during implementation, if there are difficulties or obstacles, units should report back to the Ministry for research and resolution.

PLAN

STRENGTHENING THE FINANCIAL WORK OF THE MINISTRY OF HEALTH

1. Consolidate the financial system

Manage the accounting staff in the industry, develop plans for training and upgrading the skills of accounting personnel.

Review the capabilities of the heads of accounting departments in subordinate units to recommend qualified and competent heads of accounting departments with good moral character to the relevant authorities.

2. Organize financial audit work

Remind units to conduct self-inspections

Develop plans for regular inspections of units in various aspects:

Compliance with the new accounting system

Compliance with financial expenditure regulations, management of aid goods, and asset sales at units.

Inspect all sources of income: (operational expenses, foreign currencies, construction costs, aid, hospitalization fees, services, seminars...)

3. Approve the 1990 final accounts of subordinate units, prepare and submit final account reports promptly within the prescribed deadlines.

4. Review financial expenditure regulations, timely propose amendments or request the Ministry of Finance to amend regulations to better fit current realities.

5. Review economic organizations within subordinate units, those without proper registration must re-register, strengthen management procedures. Organizations that do not meet conditions must cease operations.

6. Implement the liquidation of assets and resolution of debts with two companies and units economically related to the Ministry.

7. Continue to pilot the establishment of a health insurance fund to gradually replace hospitalization fees in the healthcare sector.