Circular No. 02/2003/TT-BTP guiding the management of the judicial sector's budget for 2003

CIRCULAR

Guidelines for Managing the Judicial Sector Budget in 2003

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Pursuant to Decision No. 181/2002/QĐ-TTg dated December 23, 2002 of the Prime Minister on the allocation of budget targets and estimates for the State Budget in 2003;

Pursuant to the Financial Transparency Regulations for State Budgets at all levels and budgetary units issued together with Decisions No. 225/1998/QĐ-TTg dated November 20, 1998 and No. 182/2001/QĐ-TTg dated November 20, 2001 of the Prime Minister;

Pursuant to Decision No. 157/2002/QĐ-BTC dated December 24, 2002 of the Minister of Finance on the allocation of revenue and expenditure budgets for the State Budget in 2003 to the Ministry of Justice;
The Minister of Justice has issued Decision No. 07/2003/QĐ-BTP dated January 6, 2003 on the allocation of revenue and expenditure budgets for the State Budget in 2003 to local enforcement agencies and direct subordinate budgetary units of the Ministry;

In order for units to proactively save in the use of allocated funds, thereby effectively implementing the State Budget Law, the Ministry guides certain measures for managing the budget revenue and expenditure of the judicial sector in 2003 as follows:

I. ALLOCATION OF EXPENSES IN THE 2003 BUDGET

1. Regular expense funding standards

a) In 2003, the Ministry will allocate other regular expense funding to local enforcement agencies, increasing from 6.15% to 7.9% compared to 2002 (see attached annex).

b) Salaries, salary supplements, and contributions (Items 100, 102, 106) will be allocated based on the minimum wage of 290,000 VND (except for the allowance for enforcement officers at 100,000 VND/person/month which does not qualify for social insurance and health insurance benefits).

c) The regular expense budget for 2003 allocated to Enforcement Offices will be calculated based on the staffing level present as of January 1, 2003. Cases of salary increments, additional staff recruitment... (if any), when reviewed by the Ministry, will be supplemented with budget allocations according to prescribed regulations.

2. Allocation of expense limits

a) Quarterly expense limits will be allocated to budgetary units based on the annual budget allocations, including expenses for salaries, salary supplements, and contributions; however, 2% of union dues will be directly deducted from the Ministry's budget by the Ministry of Finance for allocation to the Vietnam General Confederation of Labor (Joint Circular No. 76/1999/TTLT/TC-TLĐ dated June 16, 1999 of the Ministry of Finance and the Vietnam General Confederation of Labor). Therefore, units do not need to remit 2% of union dues to higher-level union organizations in their locality.

b) The Ministry has issued Circular No. 03/TP-KHTC dated January 6, 2003 to inform local enforcement offices about the total regular expense funding allocated for 2003 (directly subordinate units of the Ministry will have separate notifications)To have a basis for allocating detailed budgets to units that closely match spending requirements and comply with the State Budget Catalogue, the Ministry requests units to promptly submit their budgets according to the following expense items:

- When allocating unit budgets, it is necessary to detail ten main items, including: Salary (Item 100), Salary Supplement (Item 102), Bonus (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 Business Costs (Item 119), Purchase of Assets for Professional Work (Item 145).

- Other items (Items 101, 105, 109, 111, 113, 114, and 144, etc.) will be combined into Miscellaneous Expenses (Item 134). When withdrawing funds for expenses, units can use the amount allocated under Item 134 to cover other items and record and settle accounts according to the actual content of the vouchers for the items spent.

c) Funds for commendation and rewards and management costs for provincial Departments of Justice will be provided through the Accounts of Enforcement Offices. Upon completion of expenditures, the Department of Justice must promptly compile expenditure vouchers and transfer them to the Enforcement Office for consolidation into quarterly and annual settlement reports of the Enforcement Office.

d) Funding for Hanoi University of Law, School of Legal Positions, National Registry of Security Transactions, Journal of Democracy & Law is provided to these self-financing public institutions, combined into Miscellaneous Expenses (Item 134) (except for Hanoi University of Law and School of Legal Positions, which are combined into Miscellaneous Expenses (Item 134) under Sub-item 14 - Item 09, Sub-item 14 - Item 10, and Sub-item 14 - Item 12). When spending, units must record and settle accounts according to the corresponding State Budget Catalogue. Sub-items 14 - Item 11, Sub-item 14 - Item 21, and Sub-item 10 - Item 08 must prepare detailed budgets according to the State Budget Catalogue.

3. Items included in the miscellaneous expense standard include

Expenses for enforcement, purchase of forms, ledgers, newspapers, magazines; travel expenses, mid-year review meetings, year-end summary meetings, specialized meetings, training travel expenses, annual leave travel expenses according to regulations; automobile insurance (only civil liability insurance), regular maintenance of fixed assets... Units must balance within the standard limit to ensure economy and effectiveness.

4. In addition to the regular expense budget allocated according to the above standard, in 2003, units will also receive supplementary funding for the following expenses:

a) Commendation and reward funds for 2003, the Ministry allocates to units as follows:

- Office of the Ministry, Institute of Legal Science Research, Legal Aid Bureau is 10% of the total salary fund of the unit (Item 100).

- Provincial Enforcement Offices is 7% of the total salary fund of the unit (Item 100).

- Provincial Departments of Justice is 3% of the total salary fund (Item 100) of the Enforcement Office managed by the Department of Justice (implemented according to the guidance in Circular No. 02/TP-KHTC dated January 6, 2003 of the Ministry of Justice).

The implementation of commendation and reward funds is guided in Part III of Circular No. 08/2001/TT-BTP dated December 18, 2001 of the Minister of Justice.

b) In 2003, the Ministry will allocate a portion of funds to support provincial Departments of Justice for management costs at the following rates:

+ Management costs for Enforcement Teams in cities, districts, and towns in provinces and centrally-administered municipalities: 1,000,000 VND/unit/year.

+ Management costs for Enforcement Teams in highland, deep interior, and island areas (where regional location coefficients are 0.3 or higher): 2,000,000 VND/unit/year.

The management costs for the remaining counties and towns' enforcement teams: 1,500,000 VND/unit/year.

The aforementioned support funds shall be allocated to the Department of Justice based on the number of administrative units at the county level in each province and centrally governed city. The implementation details of the industry management expenses will follow the guidance provided in Circular No. 01/TP-KHTC dated January 6, 2003, issued by the Ministry of Justice.

c) The cost for making uniforms for civil servants and employees of civil execution agencies in localities shall be implemented according to the current regulations.

d) The cost for purchasing equipment and working tools for civil execution agencies in localities.

e) The cost for renting office premises for units that do not have their own office space or need to construct new office premises.

f) The cost for organizing the conference summarizing ten years of enforcement work, with the Ministry allocating funds as follows: Provincial Civil Execution Departments under centrally governed cities is 2,000,000 VND/unit,and Enforcement Teams is 500,000 VND/unit.

g) Large-scale repair costs for fixed assets: Units must prepare budgets in accordance with Article 20, Section III, Chapter II of the State Asset Management Regulation of the Ministry of Justice. Only upon notification of funding can units proceed with implementation. Procedures for preparing projects for repairs, renovations, and expansions of offices are applied according to Circular No. 96/2000/TT-BTC dated September 28, 2000, issued by the Ministry of Finance.

h) Additionally, in 2003, the Ministry will allocate a portion of the budget to implement new salaries and provide financial support for enforcement officers who are temporarily transferred, support for enforcement agencies that have not fully staffed, flood prevention funds, and funding for newly established units...

i) In 2003, the Ministry will allocate additional funds to supplement and improve the teaching materials system of the Hanoi Law University and the School of Judicial Training.

When there is a need for supplementary funding, units must prepare a budget proposal for approval by the Ministry to allocate the necessary funds.

5. Quarterly disbursement and payment of regular expenditures shall be carried out according to the items listed in the State Budget Manual. In case of a need to adjust detailed budget allocations between items (surplus or deficit) at the end of the year, units must submit a written report to the Ministry before November 10 so that the Ministry can compile and request the Ministry of Finance to adjust the budget allocation (as stipulated in Point 8, Part IV of Circular No. 103/1998/TT-BTC dated July 18, 1998, issued by the Ministry of Finance).

6. Pursuant to the State Budget Law, all revenue and expenditure items of the State Budget must be fully and promptly reflected in accounting books in accordance with regulations. Units using the state budget must comply with the reporting and settlement regulations for quarterly and annual state budgets. The deadline for submitting quarterly reports is within 15 days after the quarter ends, and for annual reports, it is within 30 days after the year ends. If a unit fails to submit its annual settlement report to the Ministry beyond this deadline, the Ministry will suspend the allocation of the next quarter's budget (excluding salary-related expenses) until the unit submits its report. Unit heads are responsible for any delays.

7. In 2003, the Ministry will allocate a budget for training and upgrading staff to the units, which must be implemented in accordance with the guidance provided in Circular No. 292/TP-QLTA-THA dated September 10, 2001, issued by the Ministry of Justice.

8. Investment Construction Capital: The management and allocation of investment construction capital shall be carried out in accordance with the Investment Management and Construction Regulation promulgated together with Decrees No. 52/1999/NĐ-CP dated July 8, 1999; No. 12/2000/NĐ-CP dated May 5, 2000, and No. 07/2003/NĐ-CP dated January 30, 2003, of the Government amending and supplementing certain provisions of the Investment Management and Construction Regulation. Units that have been approved by the Ministry to commence construction of office premises in 2003 must urgently submit project establishment files and tender documents for project management boards and supervisory consultants in accordance with the regulations for review and approval prior to commencement of the project.

9. The management and utilization of foreign aid funds shall be carried out in accordance with Decision No. 64/2001/QĐ-TTg dated April 26, 2001, Directive No. 11/2002/CT-TTg dated April 17, 2002, of the Prime Minister on the Regulation on the Management and Utilization of Non-Governmental Foreign Aid, and Circular No. 70/2001/TT-BTC dated April 28, 2002, of the Ministry of Finance guiding the financial management system for non-reimbursable aid. All units utilizing foreign aid funds must ensure full and timely reporting of all aid inflows into the state budget annually or at the end of the program/project period, and must submit final settlement reports to the Ministry (Financial Affairs Department) for consolidation and reporting to the Ministry Leadership and the Ministry of Finance in accordance with current regulations.

10. Regarding the control of outgoing expense groups

Based on Circular No. 40/2001/TT-BTC dated June 5, 2001, issued by the Ministry of Finance on controlling outgoing expense groups, the Ministry requires budgetary units to prepare a budget for each outgoing group and submit it to the Ministry of Justice (Financial Affairs Department) for review before allocating funds to the unit's foreign currency account for outgoing groups. Units without approved outgoing group budgets will not receive funding.

II. SOME MEASURES TO STRENGTHEN THE MANAGEMENT OF STATE BUDGET EXPENDITURE IN 2003

1. Strengthen the management of investment construction, prevent waste and corruption in investment construction, to ensure the effective use of the investment capital allocated by the state.

- Strengthen inspection, supervision, and control over investors and contractors, prevent waste and corruption in investment construction, consolidate and rectify investment management at project management boards. Investors must strictly adhere to the annual settlement report and project progress report requirements as stipulated by current state regulations.

- Enhance the capacity and responsibility of investors and consulting organizations in surveying, designing, and strengthening construction supervision in accordance with procedures, technical designs, and approved materials and equipment.

- Clearly define the responsibilities of individuals and units related to the quality of construction projects such as investors, consulting organizations, supervisors, designers, and construction units.

- Strengthen supervision and inspection of construction quality to promptly identify violations in construction organization and strictly organize acceptance according to technical procedures; if violations are detected, construction must be halted and reported to the Ministry for appropriate measures.

- Enhance the quality of establishing and reviewing final accounts of investment capital for construction projects; the Ministry requires project sponsors to urge contractors to promptly prepare final accounts for completed projects in accordance with the prescribed forms and guidelines set out in Circular No. 70/2000/TT-BTC dated July 17, 2000, issued by the Ministry of Finance.

2. Fully implement thrift, combat waste, strengthen accounting, inspection, audit, financial transparency, and improve the effectiveness of asset management.

- In 2003, financial discipline and order will be emphasized, particularly in implementing regulations on thrift and combating waste in expenditures, using state budget funds for purchasing assets, materials, and equipment to build office premises and administrative management services, as well as for conference expenses, travel allowances, hospitality... all must comply with established standards and regulations.

- The Ministry assigns responsibility to unit heads and finance accountants for managing and utilizing the state budget and assets; anyone who makes unauthorized or non-compliant expenditure decisions leading to waste shall bear personal responsibility for their decisions.

- Strictly implement financial transparency rules; at the beginning of the year, unit heads must publicly report the allocated state budget according to the State Budget Item Schedule, and at the end of the year, they must publicly report the results of financial income and expenditure for the year; create conditions and enhance supervision and inspection by trade unions, people's inspectors, and civil servants within the units to promote grassroots democratic regulations, detect, and promptly prevent negative phenomena that may occur within the units.

- Strengthen financial audits and inspections of units using state budget funds. Promptly and strictly handle cases of financial discipline violations in managing and utilizing funds from the state budget and other sources discovered through audits and inspections in accordance with legal provisions.

The above are some key measures for managing the state budget expenditure plan for 2003. During implementation, any difficulties should be promptly reported to the Ministry (Planning and Finance Department) for consideration and resolution.

This Circular takes effect fifteen days after its publication in the Official Gazette.

Unit heads are responsible for informing all staff members about this Circular and organizing its implementation./.