Joint Circular No. 03/2006/TTLT-BTC-BNV guiding the implementation of Government Decree No. 130/2005/NĐ-CP dated October 17, 2005 on the regime of self-management and self-responsibility for the use of staffing levels and administrative management expenses for state agencies.

JOINT CIRCULAR

Guidelines for implementing Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime regarding the use of staff quotas and administrative management expenses for state agencies.

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Pursuant to Clause 1, Article 12, and Clause 1, Article 13 of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime regarding the use of staff quotas and administrative management expenses for state agencies;

The Ministry of Finance and the Ministry of Home Affairs jointly issue guidelines for implementing the self-management and self-responsibility regime regarding the use of staff quotas and administrative management expenses for state agencies as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. This Circular provides guidance on implementing the self-management and self-responsibility regime regarding the use of staff quotas and administrative management expenses (hereinafter referred to as the self-management regime) for state agencies directly using administrative management expenses funded by the State budget with separate accounts and seals, which have been assigned staff quotas and administrative management expenses by competent state authorities (hereinafter referred to as self-managing agencies), belonging to the following agencies:

a) Ministries, ministerial-level agencies, and agencies under the Government;

b) Office of the National Assembly, Office of the President;

c) People's Courts at all levels, People's Procuratorates at all levels;

d) Offices of People's Councils, Offices of People's Committees, specialized agencies under People's Committees of provinces and centrally-administered cities;

đ) Offices of People's Councils and People's Committees, specialized agencies under People's Committees of districts, towns, townships, and centrally-administered cities within provinces.

2. Implementation of the self-management regime for People's Committees at commune and ward levels shall be decided by the Chairman of the People's Committee of the province or centrally-administered city based on the self-management regime prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government, guided in this Circular, and local actual conditions, or delegated to the Chairman of the People's Committee of district, town, township, and centrally-administered city within provinces to decide.

3. Agencies under the Communist Party of Vietnam and political-social organizations that have been assigned staff quotas and administrative management expenses shall base their decision to implement the self-management regime on the provisions of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and the guidance provided in this Circular.

4. For agencies currently piloting the allocation of staff quotas and administrative management expenses according to Decision No. 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister, from the 2006 fiscal year onwards, they shall implement the self-management regime as prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and guided in this Circular.

5. Agencies under the Ministry of Defense, the Ministry of Public Security, and the General Office for Population and Family Planning, and representative offices of Vietnam abroad that are funded by the State budget for administrative management expenses are not subject to this Circular.

6. Principles for implementing the self-management and self-responsibility regime:

Self-managing agencies must ensure the following principles:

a) Fulfilling assigned tasks effectively;

b) Not increasing staff quotas, except as stipulated in item c, point 1, Section II of this Circular;

c) Not increasing allocated administrative management expenses, except as stipulated in item c, point 2, Section II of this Circular;

d) Ensuring transparency, democracy, and protecting the legitimate rights of civil servants.

II. SPECIFIC PROVISIONS

1. Regulations on self-management and self-responsibility regarding the use of staff quotas:

a) Staff quota of self-managing agencies:

The staff quota of self-managing agencies includes administrative staff and reserve staff (if any) assigned by competent state authorities; it does not include the staff quota of affiliated units (which are independent budget entities with separate accounts and seals).

b) Competent state authorities assigning staff quota targets for self-managing units:

Based on the total administrative staff quota approved by the Government, the Ministry of Home Affairs assigns the administrative staff quota target for ministries, ministerial-level agencies, agencies under the Government, and provincial and centrally-administered city People's Committees (collectively referred to as provincial level). Staff quotas for the Procuracy, Courts, Office of the National Assembly, and Office of the President are assigned by the Standing Committee of the National Assembly.

Ministries, ministerial-level agencies, and agencies under the Government assign the administrative staff quota target for Departments, Bureaus (if any), General Departments (if any), Ministry Offices, Inspection Departments, and other administrative organizations under these ministries, ministerial-level agencies, and agencies under the Government.

Provincial People's Committees assign the administrative staff quota target for Offices of People's Councils, Offices of People's Committees, specialized agencies at the same level, and People's Committees of districts, towns, townships, and centrally-administered cities within provinces (collectively referred to as district level).

District People's Committees assign the staff quota target for Offices of People's Councils and People's Committees, and specialized agencies under the same-level People's Committees.

c) Adjusting assigned administrative staff quota targets:

The administrative staff quota of self-managing agencies may be reviewed and adjusted in cases of merger, division, or adjustment of tasks as decided by competent state authorities.

The authority responsible for adjusting tasks or deciding mergers or divisions shall be responsible for reviewing and adjusting staff quotas. Based on the adjusted staff quota, the authority responsible for assigning staff quotas as stipulated in point b, clause 1, section II of this Circular shall be responsible for assigning the adjusted staff quota to subordinate self-managing units.

d) Initiative in utilizing assigned staff quotas:

Based on the assigned staff quota, self-managing agencies have the right to utilize the staff quota as follows:

- To decide on the arrangement and assignment of cadres and civil servants to positions to ensure the effective performance of agency tasks;

- To transfer cadres and civil servants between units within the agency;

- Is entitled to accept the number of personnel within the authorized establishment quota, which is equal to or lower than the established quota assigned by the competent authority. In cases where the actual number of personnel is lower than the established quota, the agency is still entitled to receive administrative management funds according to the established quota assigned.

- Based on job requirements and within the scope of the allocated administrative management funds, the head of the agency may enter into contracts for outsourcing tasks or labor contracts with the following positions: security guard, driver, janitor, and cleaner (excluding positions specified in Article 3 of Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on implementing the system of contracts for certain types of work in state administrative agencies and public service units).

When signing labor contracts, the agency implementing the self-management regime must ensure the labor conditions for workers in accordance with the laws on labor.

2. Provisions on self-management and self-responsibility regarding the use of administrative management funds:

a) Sources of administrative management funds allocated for implementing the self-management regime:

Administrative management funds allocated to agencies implementing the self-management regime shall come from the following sources:

- State budget;

- Fees and charges retained in accordance with the prescribed regulations;

- Other lawful revenues as stipulated by law;

b) Determining the funds to be allocated for implementing the self-management regime:

The administrative management funds of agencies implementing the self-management regime shall be determined and allocated annually as follows:

- State budget funds:

The level of state budget funds allocated for implementing the self-management regime shall be determined based on the authorized establishment quota assigned by the competent authority, including reserve quotas (if any), the standard allocation rate of the state budget expenditure estimate per establishment quota, special business activity expenses under the prescribed regulations, and the implementation of the previous year's budget estimate.

The standard allocation rate of the state budget expenditure estimate for ministries and central agencies shall be decided by the Prime Minister. The standard allocation rate of the state budget for agencies under ministries and central agencies shall be regulated by the ministers and heads of central agencies based on the detailed implementation of the standard allocation rate of the state budget expenditure estimate decided by the Prime Minister.

The standard allocation rate of the state budget expenditure estimate for agencies under localities shall be decided by the People's Councils of provinces and centrally-administered cities.

- Portion of fees and charges retained to cover collection costs and other revenues:

+ In cases where agencies implementing the self-management regime are authorized to collect fees and charges, the determination of the amount of fees and charges to be retained to ensure operational activities shall be based on the provisions of the competent authorities' documents (excluding the portion of fees and charges retained for purchasing fixed assets and other provisions, if any);

+ Other revenues as stipulated by law (if any).

c) Adjustments to the allocated administrative management funds for implementing the self-management regime:

- The allocated administrative management funds for implementing the self-management regime shall be adjusted in the following cases:

+ Due to adjustments in the tasks of the competent authority;

+ Due to adjustments in the administrative establishment quota pursuant to the decision of the competent authority;

+ Due to changes in national wage policies, changes in the standard allocation rate of the state budget expenditure estimate, and adjustments in the proportion of the state budget allocation for administrative management.

- When there are occurrences that change the level of state budget funds allocated for implementing the self-management regime, the agency implementing the self-management regime shall submit a written request for supplementary and adjustment of the budget estimate, detailing the factors causing increases or decreases in the budget estimate to the immediate superior supervisory agency. The immediate superior supervisory agency (which is not a first-level budget unit) shall examine and consolidate the budget estimates of subordinate units and submit them to the first-level budget unit. Central and local agencies (first-level budget units) shall examine the budget estimates prepared by subordinate units, consolidate them, and prepare the state budget expenditure estimates within their jurisdiction to submit to the financial authorities at the same level for approval by the competent authority.

d) Contents of expenditures from the allocated funds for implementing the self-management regime:

- Payments to individuals: wages, salaries, allowances, contributions based on salary, bonuses, collective welfare, and other payments to individuals as prescribed;

- Public service payment expenses, rental expenses, office supplies, information, propaganda, and communication expenses;

- Conference expenses, domestic travel expenses, expenses for foreign trips, and expenses for receiving foreign delegations in Vietnam;

- Specialized business operation expenses;

- Special industry expenses, uniform purchase expenses (as prescribed by the competent authority);

- Purchase and acquisition of assets, equipment, means, materials, and regular maintenance of fixed assets (excluding large-scale asset purchases and repairs as stipulated in Clause 3, Section II of this Circular);

- Other regular expenses;

- Expenses for fee and charge collection services as prescribed.

đ) Utilization of allocated funds to implement the self-management regime:

Within the allocated funds, the head of the agency implementing the self-management regime has the authority and responsibility:

- To proactively allocate and utilize funds according to the assigned tasks and requirements to complete the mission, ensuring economy and effectiveness;

- To decide on the expenditure levels for each task in accordance with the specific characteristics of the agency but not exceeding the current expenditure standards and rates prescribed by the competent state authorities (in cases where a range of expenditure levels is prescribed, it shall not exceed the specific level prescribed by the minister, head of central agencies, or the Chairman of the People's Committee of provinces and centrally-administered cities).

The determination of expenditure levels as prescribed in the Internal Expenditure Regulation at point h, Clause 2, Section II of this Circular, and the implementation of expenditure management and supervision according to the issued regulation;

- To decide on the utilization of all saved funds as prescribed in point e, Clause 2, Section II of this Circular;

- The remaining self-managed budget funds from the end of the year that have not been used may be carried over to the next year for continued use (except where otherwise provided by law).

- Fees and charges retained shall be used strictly according to the designated purposes, without exceeding the expenditure limits set by the competent authority.

e) Utilize administrative management cost savings:

- At the end of the fiscal year, after completing assigned tasks and duties, if the actual expenditures of the self-managed entity are lower than the allocated state administrative management budget, the difference will be determined as administrative management cost savings.

Funds allocated but not completed within the year must be carried over to the next year to complete the work and cannot be considered as administrative management cost savings.

- Cost savings may be used for the following purposes:

+ To supplement salary increments for officials and civil servants based on additional salary fund coefficients, but not exceeding one time the state-prescribed salary grade and position levels;

+ To reward groups and individuals with outstanding achievements;

+ Expenditure for welfare activities within the organization;

+ Expenditure for emergency hardship assistance for employees, including those who have retired or lost their health;

+ To provide additional compensation to employees when implementing staff reduction measures;

+ In cases where the stability of cost savings is uncertain, the self-managed entity may allocate part of the savings to establish a Stability Income Reserve Fund.

The head of the self-managed entity decides on the use of cost savings according to the above purposes after reaching consensus with the trade union organization and making it public throughout the entity.

- Remaining unused cost savings at the end of the year may be carried over to the next year for continued use.

g) Paying additional collection bonuses to officials and civil servants:

- Method of determination:

Within the scope of available cost savings, the self-managed entity may apply an additional salary fund coefficient not exceeding one time the state-prescribed salary grade and position levels to pay additional income to officials and civil servants. The additional salary fund is calculated using the formula:

QTL = Lmin x K1 x (K2 + K3) x L x 12 months

Where:

QTL: is the maximum additional salary and wage fund of the entity allowed to be paid annually;

Lmin: is the current national minimum wage (VND/month) prescribed by the state;

K1: is the adjustment coefficient for increasing the minimum wage of the unit based on work performance results (maximum not exceeding one time);

K2: is the average rank and position salary coefficient of the entity;

K3: is the average salary allowance coefficient of the entity.

The average salary allowance coefficient to determine the maximum additional salary and wage fund includes allowances calculated based on the minimum wage and allowances calculated based on rank and position levels of those entitled to receive them monthly along with their salaries. It does not include allowances not determined to be paid together with monthly salaries such as night shift allowances, overtime allowances, and duty allowances.

L: is the number of personnel including contractual workers paid according to the state-prescribed salary scale.

The annual salary and wage fund of the entity for calculating additional income payments does not include remuneration paid under service contracts.

- Paying additional income:

The payment of additional income to each employee ensures adherence to the principle of linking it with job quality and effectiveness; those who contribute to cost savings and have high work efficiency will receive higher additional income. Specific payment levels are decided by the entity's head after reaching agreement with the entity's trade union organization.

- Advance payment of additional income:

To motivate officials and civil servants to strive to complete tasks and practice thrift, based on the previous quarter's performance, if it is deemed that the entity has the potential to save funds, the entity's head may decide to advance the payment of additional income to officials and civil servants in the entity quarterly based on the estimated savings. The maximum quarterly advance payment shall not exceed 60% of the entity's quarterly salary fund.

In the fourth quarter of each year, after accurately determining the amount of cost savings, adjustments will be made to the additional income payments for officials and civil servants to ensure they do not exceed the actual savings for the year. If the entity has already exceeded the savings, the excess will be deducted from the next year's savings.

h) Establishing and implementing Internal Expenditure Regulations and Public Asset Management and Usage Regulations:

- To proactively manage and utilize self-managed funds and public assets for their intended purposes, efficiently and economically, the self-managed entity is responsible for establishing Internal Expenditure Regulations and Public Asset Management and Usage Regulations according to the guidelines in Model No. 01 attached to this Circular, serving as a basis for officials and civil servants within the entity to follow, and for the State Treasury to monitor expenditures.

- These regulations are issued by the head of the self-managed entity after soliciting opinions from the entity's trade union organization and must be publicly disclosed throughout the entity. They must also be submitted to the State Treasury branch where the entity maintains its transaction account for expenditure monitoring, and to the supervising superior agency (for self-managed entities subordinate to a budgetary unit) or the same-level financial agency (for self-managed entities without subordinate budgetary units) for oversight and supervision.

- The establishment of Internal Expenditure Regulations and Public Asset Management and Usage Regulations should focus primarily on the following areas:

+ Dispatching officials for domestic travel, reimbursement rules for travel expenses, accommodation rental fees, and lump-sum travel expense reimbursements for frequent travelers;

+ Managing and allocating funds, and using office supplies in Departments, Bureaus, Divisions, and Offices within the entity;

+ Managing, using, and allocating funds for payment of telephone usage fees for official telephones at the agency for each telephone line or each unit within the agency; standards and quotas for using and paying fees for official telephones at private residences and mobile phones for leaders within the agency.

+ Managing, using, and allocating funds for vehicle usage and fuel according to each Department, Bureau, Division, Office;

+ Managing and using air conditioning units and electricity for lighting.

- When establishing internal expenditure regulations and asset management and usage regulations, agencies implementing self-management systems must base their provisions on current expenditure regimes, standards, and quotas issued by competent state authorities, the implementation situation of Departments, Bureaus, Divisions, Offices in recent periods, and the allocated financial resources to determine. The expenditure levels, regimes, standards, and quotas in internal expenditure regulations shall not exceed those established by competent state authorities.

- In cases where internal expenditure regulations of an agency exceed the expenditure regimes, standards, and quotas set by competent authorities, the superior managing agency or the financial agency shall be responsible for requesting the agency issuing the internal expenditure regulations to adjust them accordingly.

- When implementing internal expenditure regulations, the agency must ensure that all vouchers and invoices comply with the regulations (except for travel expense reimbursements paid under the guidance provided in Point 5.4, Section I of Circular No. 118/2004/TT-BTC dated December 8, 2004, of the Ministry of Finance; monthly telephone usage fee payments for official telephones at private residences and mobile phones, as guided in Circular No. 29/2003/TT-BTC dated April 14, 2003, of the Ministry of Finance).

3. Funds allocated but not implemented under the self-management system:

In addition to administrative management funds allocated for implementing the self-management system as stipulated in Clause 2, Part II of this Circular, annually, agencies implementing the self-management system are also allocated funds from the State budget to carry out certain tasks as decided by competent authorities, including:

a) Expenditure on major repairs, procurement of fixed assets, including:

- Funds for purchasing large-value fixed assets, and major repair funds for fixed assets that regular funding cannot cover;

- Funds for implementing equipment and work tool supply projects approved by competent authorities (if applicable).

b) Contributions to international organizations' annual fees, counterpart funds for projects under Agreements (if applicable).

c) Expenditure on urgent tasks assigned by competent authorities:

- Funds for carrying out urgent tasks assigned by competent authorities after the agency has been allocated funds for implementing the self-management system;

- Funds allocated for special tasks such as support, allowances, and subsidies for organizations and individuals outside the agency as prescribed;

- Funds for organizing large international conferences and seminars funded separately.

d) Funds for implementing national target programs.

đ) Funds for implementing staff reduction measures.

e) Research and scientific study funds.

g) Research and scientific study funds.

Capital investment for basic construction projects approved.

Allocation, management, and utilization of the aforementioned funds and capital investments for basic construction projects shall be carried out in accordance with current state regulations.

4. Regarding budget preparation, allocation, assignment, accounting, and final settlement reporting:

Budget preparation, allocation, assignment, accounting, and final settlement reporting shall be conducted in accordance with current state regulations; this Circular provides detailed guidance on certain aspects as follows:

a) On budget estimation:

Annually, based on the budget preparation guidelines issued by the Ministry of Finance and instructions from superior management agencies, taking into account the previous year's task implementation and projected plans for the upcoming year, agencies implementing the self-management system prepare the budget in accordance with the regulations, clearly identifying and presenting the proposed budget for administrative management expenses to implement the self-management system and the budget for non-self-management system expenses according to Model 02 attached to this Circular; provide detailed explanations according to the content of the work, submit to the superior supervisory agency or the same-level financial agency. The superior supervisory agency aggregates and submits to the same-level financial agency according to Models 02 and 03 attached to this Circular.

b) Regarding review, allocation, and assignment of state budget expenditures:

- Based on the state budget expenditures assigned by competent authorities, the superior supervisory agency (primary budget unit) allocates and assigns state budget expenditures to agencies implementing the self-management system in detail into two parts: the budget for state budget expenditures assigned to implement the self-management system and the budget for state budget expenditures assigned not to implement the self-management system; allocate budgets to subordinate units according to Model 04, assign budgets to subordinate units according to Model 05 attached to this Circular after receiving comments from the same-level financial agency.

For agencies without direct subordinate budget units, based on the state budget expenditures assigned by competent authorities, the agency implementing the self-management system allocates the assigned budget into two parts: the budget for state budget expenditures assigned to implement the self-management system and the budget for state budget expenditures assigned not to implement the self-management system, and sends it to the same-level financial agency for review according to regulations.

- The financial agency reviews the budget allocations of primary budget units according to Model 04 attached to this Circular.

- The state budget expenditures assigned to implement the self-management system are allocated into one group of budget items in the state budget - the group of other expenditure items. The state budget expenditures assigned not to implement the self-management system are allocated into four groups of budget items according to current regulations.

When withdrawing funds from the State Treasury, agencies implementing the self-management system must clearly indicate the expenditure items covered by the allocated funds for implementing the self-management system.

c) Regarding accounting entries:

For expenditures under the self-management regime to be recorded in the budget expenditure items according to current regulations. Expenditures for additional income payments to officials and civil servants shall be recorded in Item 107 - Payments to individuals; expenditures for rewards shall be recorded in Item 104 - Bonuses; expenditures for welfare and additional subsidies outside general policies for those who voluntarily retire during the process of labor organization and restructuring shall be recorded in Item 105 - Collective Welfare, of the state budget.

5. Responsibilities of agencies:

a) Agencies implementing the self-management regime:

- Shall be responsible for using the assigned personnel quota and management funds for their intended purposes, economically and effectively, organizing and completing assigned tasks; establishing Internal Spending Regulations, Management and Use Regulations for State Assets.

Implementing transparency and democracy within the agency regarding the use of assigned personnel quotas and management funds, Internal Spending Regulations, Management and Use Regulations for State Assets, and additional income payments to ensure the legitimate rights of workers.

- Annually report on the implementation of the self-management regime to the superior administrative agency or the financial and internal affairs agency at the same level (in cases where the agency does not have subordinate units) according to Form No. 06 attached hereto.

b) Superior administrative agencies:

- Issuing basic criteria as a basis for evaluating the performance of subordinate agencies as stipulated in Clause 4, Article 11 of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government;

- Directing, urging, inspecting subordinate units to implement the self-management regime regarding the use of assigned personnel quotas and management funds for administrative expenses as prescribed;

- Annually reporting on the implementation of the self-management regime regarding the use of assigned personnel quotas and management funds for administrative expenses to the financial and internal affairs agencies at the same level for consolidation before February 25 of the following year according to Form No. 07 attached hereto.

c) People's Committees at all levels:

- Issuing basic criteria as a basis for evaluating the performance of subordinate agencies as stipulated in Clause 4, Article 11 of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government;

- Organizing, directing, inspecting subordinate administrative agencies to implement the self-management regime regarding the use of assigned personnel quotas and management funds for administrative expenses;

- Annually reporting to the superior People's Committee Chairman or reporting to the Prime Minister on the results of the self-management regime of subordinate agencies, simultaneously sending to the Ministry of Finance and the Ministry of Home Affairs for consolidation and reporting to the Prime Minister before February 25 of the following year according to Form No. 07 attached hereto.

d) Responsibilities of State Treasury at all levels:

- Creating conditions for units implementing the self-management regime to withdraw assigned management funds quickly and conveniently;

- Implementing expenditure control according to current regulations and guidance provided in this Circular. Having the right to refuse payment for expenditures exceeding the established limits by authorized agencies. In cases where the agency has expenditures exceeding the limits set out in the Internal Spending Regulations but not exceeding the limits set by authorized agencies, the State Treasury will only accept payment upon receipt of a written request from the head of the agency implementing the self-management regime;

- In cases where the agency implementing the self-management regime has not submitted the Internal Spending Regulations to the State Treasury where the unit maintains its transaction account, the State Treasury will implement expenditure control according to the current spending regulations issued by authorized state agencies.

- At the end of the year, transferring the remaining management funds and savings from agencies that have not fully utilized them to continue usage in the following year.

III. IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in the Official Gazette; abolishing Joint Circular No. 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002 of the Joint Office of the Ministry of Finance and the Government Civil Service Organization Department (now the Ministry of Home Affairs) guiding the implementation of Decision No. 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister on expanding the pilot program of personnel quota and management fund allocation for administrative agencies.

Implementing the self-management regime according to the guidance in this Circular, agencies are not required to develop proposals.

2. During the implementation period, if there are difficulties or obstacles, please reflect them to the Ministry of Finance and the Ministry of Home Affairs for consideration and resolution./.