Circular No. 02/2001/TT-BTP guiding the management of the judicial sector's budget for 2001

CIRCULAR

Guidelines for Managing the Judicial Sector's Budget in 2001

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Pursuant to Decision No. 146/2000/QĐ-TTg dated December 22, 2000, of the Prime Minister on the allocation of targets and plans and the state budget estimate for 2001;

Pursuant to Decision No. 207/2000/QĐ-BTC dated December 25, 2000, of the Minister of Finance on the allocation of revenue and expenditure estimates for the state budget for 2001 to the Ministry of Justice;

Pursuant to Decision No. 42/2001/QĐ-TTg dated January 15, 2001, of the Minister of Justice on the allocation of regular expenditure estimates for the state budget for 2001 to subordinate units of the Ministry;

To enable units to take the initiative in using allocated funds, the Ministry provides guidance on several key points regarding measures to manage the judicial sector's budget for 2001 as follows:

I - ALLOCATION OF EXPENSES IN THE 2001 BUDGET.

1 - Standard for regular expense disbursement.

a - Salaries, allowances, and contributions (Items 100, 102, 106) are issued at the minimum wage rate of 210,000 VND/month.

b - In 2001, the standard for issuing other expenses in regular expenditures for local People's Courts and civil enforcement agencies increases by 6% to 7% compared to the standard for other expenses in 2000.

c. The regular expenditure budget for 2001 allocated to units is calculated based on the planned staffing level assigned. Units that have not been assigned a planned staffing level will have their regular expenditure budget calculated based on the actual staffing level present. This is the maximum issuance level when units have sufficient staffing according to the approved plan from the beginning of the year.

Quarterly funding allocations are calculated based on the actual staffing level present, including salaries, allowances, and contributions; however, 2% of union dues are directly issued by the Ministry of Finance to the Vietnam General Confederation of Labor (Circular Joint Circular No. 76/1999/TTLT/TC-TLĐ dated June 16, 1999, of the Ministry of Finance and the Vietnam General Confederation of Labor). Units do not need to remit 2% of union dues to higher-level labor unions in their locality.

d. Allocation of annual budget limits.

According to Circular No. 06/2000/TT-BTC dated January 18, 2000, of the Ministry of Finance (Section 1.5, Point 1, Part III), budget allocations are made according to approved estimates and the State Budget Item List.

When announcing budget limits, the Ministry details 11 items: Salary (Item 100), Allowance (Item 102), Scholarships for students (Item 103), Bonuses (Item 104), Contributions (Item 106), Office supplies (Item 110), Conferences (Item 112), Regular maintenance of fixed assets (Item 117), Major repairs of fixed assets (Item 118), Professional expenses of the industry (Item 119), Purchase of assets for professional work (Item 145). Other items (Item 101, Item 105, Item 109, Item 111, Item 113, Item 114, and Item 144, etc.) are announced collectively under Item 134. When withdrawing funds, units can use the amount allocated under Item 134 to cover other items and record and settle accounts according to the actual items spent.

2 - Expenses within the standard for other expenses include: allowances for court sessions, court session subsidy, enforcement costs, purchase of forms, books, newspapers, magazines; conference travel expenses, annual leave travel expenses according to regulations; car insurance (only civil liability insurance), regular maintenance of fixed assets, etc. Units must proactively arrange and balance these expenses within the annual budget allocated, ensuring compliance with current state financial regulations.

3 - In addition to the regular expenditure budget allocated according to the above standards, in 2001, units will also be provided supplementary funds to cover: uniforms according to regulations, supplementary trial funds for units handling landmark cases and those experiencing a sudden increase in case volume, purchasing assets to support trial work. Units requiring such supplementary funds must prepare detailed budgets for approval by the Ministry and to allocate funds.

For major repairs of fixed assets, the Ministry requires units to prepare budgets in accordance with Article 20, Section III, Chapter II of the Regulation on State Asset Management under the Ministry of Justice. Only after receiving additional budget notifications may units organize implementation. Procedures for project planning, repair, renovation, and expansion follow Circular No. 96/2000/TT-BTC dated September 28, 2000, of the Ministry of Finance.

In 2001, the Ministry reserves a portion of the budget to fund awards for outstanding performance, severance pay, flood prevention funds, and funds for newly established units.

4 - Issuance and settlement of quarterly regular expenses are carried out according to the State Budget Item List. If there is a need to adjust detailed budgets (adjustments between expense items), units must report to the Ministry for adjustment before November 15 each year (as stipulated in Point 8, Part IV, Circular No. 103/1998/TT-BTC dated July 18, 1998, of the Ministry of Finance).

5 - Each quarter, units using the budget must fully comply with reporting and settlement procedures as prescribed by the State Budget Law. Units failing to submit quarterly reports will have their subsequent quarterly funding suspended (except for salary-related expenses) until they submit the required reports.

6 - Starting from 2001, the Ministry requires units to apply Circular No. 617/TP-KHTC dated December 13, 2000, of the Ministry of Justice for the reimbursement of tuition fees for officials and employees.

II. SOME MEASURES TO STRENGTHEN MANAGEMENT OF EXPENSES IN THE 2001 BUDGET

To consistently implement the Decree on Thrift and Prevention of Waste throughout the sector, the Ministry requires unit heads to implement specific measures to strictly adhere to state regulations in the field of finance and accounting, specifically as follows:

1 - Implementing Directive No. 32/1999/CT-TTg dated October 29, 1999, of the Prime Minister on improving content, methods, enhancing effectiveness, and thoroughly practicing thrift in meetings and conferences, units organizing conferences must be extremely thrifty with time and funds, and expenditures for conferences must comply with Circular No. 03/1998/TT-BTP dated January 11, 1999, of the Minister of Justice.

2 - Rectify and strengthen management of state assets under the Ministry of Justice; all budgetary units must strictly implement Decision No. 615/2000/QĐ-BTP dated July 14, 2000, and Directive No. 02/2000/CT-BTP dated July 31, 2000, of the Minister of Justice. Each unit must establish and strictly adhere to internal regulations for asset management within their own unit; it is not permitted to use official assets such as cars and motorcycles for personal purposes.

3 - Units need to manage office telephones strictly, and may not use them for personal matters. The use of telephones shall be carried out according to Circular No. 04/1998/TT-BTP dated January 11, 1999, of the Minister of Justice. Chief Justices of Provincial People's Courts who are provided with private telephones may only have their monthly rental fees reimbursed as stipulated in Circular No. 71/TC-HCSN dated September 30, 1995, of the Ministry of Finance regarding the provision of telephones at home.

4 - Expenditures on hospitality must be extremely frugal and arranged within the annual approved budget. Units are not allowed to use alcohol, tobacco, or cigarettes for hospitality (excerpt from Article 13 of Decree No. 38/1998/NĐ-CP dated June 9, 1998, of the Government detailing the implementation of the Ordinance on Thrift and Prevention of Waste).

5 - Rectify the settlement of travel expenses, ensuring that expenditures comply with regulations and are made to the correct recipients. Settlement of travel expenses must be carried out strictly in accordance with Circular No. 02/1998/TT-BTP dated January 11, 1999, of the Minister of Justice. Strictly prohibit units from compiling lists to pay travel expenses to all officials and employees in the agency as a monthly allowance.

6 - Seriously implement the policy of financial transparency as prescribed in Decision No. 225/1998/QĐ-TTg dated November 20, 1998, of the Prime Minister.

At the beginning of the fiscal year, heads of budgetary units must inform officials and employees about the regular expenditure standards set forth in this Circular. At the end of the year, when summarizing the year, the head of the unit must report publicly the amount of funds allocated by the State budget during the year, including both money and materials provided by localities (if any), and the usage of funds during the year so that officials and employees can check and supervise the spending of the unit.

7 - Rectify financial accounting work, emphasize financial discipline, and strictly implement Decree No. 49/NĐ-CP dated July 8, 1999, of the Government on administrative penalties in the field of accounting. Heads of units are responsible for the financial situation of their units. All expenditures must be supported by reasonable vouchers and approved by the head before they can be settled by the accountant. It is strictly prohibited for unit heads to approve expenditures without accounting vouchers or to forge vouchers, or to make expenditures not in accordance with regulations.

8 - Accountants of budgetary units must maintain ledgers for temporary receipts and advances. Temporary advances must be settled completely without leaving any outstanding debts. At the end of the fiscal year, if the person receiving the advance does not have sufficient vouchers to settle the advance, they must return the unspent portion of the advance.

All expenditures must be implemented according to the approved budget. Cases where localities provide funding support for trial proceedings or enforcement actions must be clearly recorded in accounting books.

9 - Strengthen financial inspection and audit activities within the industry and by the Department of Justice at various levels to oversee the use of funds by budgetary units. Unit heads should cooperate with trade unions and employee inspectors to monitor financial operations within the unit to detect and prevent any negative phenomena that may arise.

The above are some main measures for managing the budget for the year 2001. During the implementation process, if there are any difficulties, units should report to the Ministry (Planning and Finance Department) for consideration and resolution.

This Circular takes effect from the date of issuance, requiring heads of units to notify all staff members of its contents and requirements.