Circular No. 06 TC/CN guides the establishment and use of the Minister's Fund by the Minister.

CIRCULAR

Guidelines for the establishment and use of the Minister's Fund

Implementing Article 20 of Chapter V of Decree No. 35/CP dated February 9, 1981 of the Council of Ministers allowing the establishment of the Minister's Fund; Decision No. 76/HĐBT dated June 26, 1986 of the Council of Ministers temporarily defining the financial autonomy rights of basic economic units; and based on Point 4, Section II of Circular No. 11 TC/CNA dated July 22, 1986 of the Ministry of Finance guiding the distribution of profits and the establishment of enterprise funds to form the Minister's Fund;

To create conditions for Ministers, General Directors of Industrial Unions, State Corporations, and Companies (which are not centralized accounting economic units) to use material incentive systems for enterprises and staff within their sectors to improve production efficiency and work quality, promote socialist emulation movements, and practice thrift;

The Ministry of Finance hereby guides the establishment and use of the Minister's Fund, General Director's Fund (hereinafter referred to collectively as the Minister's Fund) as follows:

I. OBJECTS AND SOURCES OF CONTRIBUTIONS TO THE MINISTER'S FUND:

The Minister's Fund shall be established at:

- Ministries, General Departments, State Committees, and agencies equivalent to ministries directly under the Council of Ministers (hereinafter referred to collectively as Ministries).

- Industrial Unions, State Corporations, and Companies belonging to central and local industries (which are not centralized accounting economic units and are not subject to the establishment of three enterprise funds).

This fund shall not be established in Industrial Unions, Combined Enterprises, State Corporations, or Companies that are centralized accounting economic units already subject to the establishment of three enterprise funds. It also shall not be established in Management Departments and People's Committees at various levels.

Depending on the nature of operations, the sources of contributions to the Minister's Fund are specified as follows:

1/ For Ministries managing production and business:

The source of contributions to the Minister's Fund is 1% of the total welfare and reward funds extracted during the year from Industrial Unions, State Corporations, and Companies conducting centralized economic accounting; combined enterprises, enterprises, and economic organizations conducting independent economic accounting which are eligible for the establishment of reward and welfare funds (hereinafter referred to collectively as enterprises).

State Corporations, Companies, Industrial Unions, and economic organizations not conducting centralized economic accounting but having subordinate enterprises conducting independent economic accounting and contributing to enterprise funds shall have 1% of the welfare and reward funds of these enterprises divided into two parts: 0.5% to establish the General Director's Fund of the Industrial Union, State Corporation, or Company; and 0.5% transferred to the Ministry to establish the Minister's Fund. If these entities are managed by local authorities, then the entire 1% shall be used to establish the General Director's Fund.

The total amount of reward and welfare funds of enterprises serving as the basis for calculating the contribution to the Minister's Fund includes the entirety of the amounts extracted into the two funds from the main production and business profits, production and business profits dependent on the state plan and excess over the plan, and other amounts extracted into the two funds.

2/ For Ministries managing administrative and public service activities:

The source of contributions to the Minister's Fund for Ministries managing administrative and public service activities is specified as follows:

a) For Ministries managing administrative and public service activities with one or more subordinate units engaged in production and public services conducting economic accounting or not conducting economic accounting but eligible for the establishment of reward and welfare funds, the source of contributions to the Minister's Fund is:

- 1% of the reward and welfare funds of the subordinate units of the Ministry submitted upwards. In cases where the subordinate units of the Ministry have secondary-level units under vertical management eligible for the establishment of two reward and welfare funds, the Minister's Fund will also be contributed from these secondary-level units.

In cases where the amount contributed from the subordinate units of the Ministry is insufficient to cover two months' average salary grade or position of civil servants in the state management sector under the Ministry's budget, the Central Budget shall not provide additional funding.

If the amount contributed to the Minister's Fund from the subordinate units exceeds two months' average salary grade or position of civil servants in the state management sector under the Ministry's budget, it shall remain in the Minister's Fund for use, and the Central Budget shall not provide additional funding.

b) For Ministries managing administrative and public service activities without any reward and welfare funds from subordinate production and public service units, the source of contributions to the Minister's Fund shall be provided by the Central Budget equal to two months' average salary grade or position of civil servants in the state management sector under the Ministry's budget.

II. PROCEDURES FOR CONTRIBUTING AND MANAGING THE MINISTER'S FUND:

1/ Production and business units and public service units directly under Ministries (or under Industrial Unions, State Corporations not conducting centralized economic accounting) with reward and welfare funds, when temporarily extracted, must simultaneously temporarily submit 1% of the temporarily extracted amount from the two funds to the Ministry (Industrial Union, State Corporation) to establish the Minister's Fund. When officially approved the extraction of the two reward and welfare funds, the unit will calculate the officially submitted amount to the Ministry to establish the Minister's Fund. In cases where the temporarily extracted amount is insufficient, additional contributions must be made; if the extracted amount exceeds the requirement, it can be deducted from the next period's extraction amount, or the Ministry may refund the excess upon request of the unit.

The Minister (or head of the unit with the Minister's Fund) has the authority to decide to exempt or reduce the contribution rate to the Minister's Fund for subordinate enterprises facing difficulties in submitting reward and welfare funds, but shall not increase the contribution rate for other units beyond the limits set forth in this Circular.

2/ For administrative and public service ministries that have been established with supplementary funds from the State Budget as stipulated in point 2, Section I above, while awaiting official reports on the annual salary fund and welfare bonus fund from subordinate units, the Central Budget will temporarily allocate 70% of the Minister's Fund based on the planned salary fund for the state management sector of the ministry and the planned establishment of the bonus and welfare fund of subordinate units.

Once there are official reports on the approved total annual salary fund of the ministry and the actual amount allocated to the Minister's Fund from subordinate units, the Ministry of Finance will provide additional funding to reach the full amount of the Minister's Fund as prescribed. In cases where overfunding has occurred, ministries must return the excess to the Central Budget or it can be deducted from future allocations.

3/ The amounts deducted from the bonus and welfare funds of units and the Central Budget funds allocated to establish the Minister's Fund shall be deposited in a separate account at the bank under the name "Minister's Fund Deposit." Interest earned on these deposits shall be added to the Minister's Fund.

Ministries must maintain a record of transactions for the "Minister's Fund Deposit" account and reconcile it with the bank where the account is opened to monitor the establishment and use of the Minister's Fund.

4/ At the end of each reporting period, ministries must report on the opening and closing balances, the amount allocated and used from the Minister's Fund during the period. The Ministry of Finance will review and examine this report together with the regular settlement examination of ministries to ensure the proper use of the Minister's Fund as prescribed.

The balance of the Minister's Fund at the end of the year may be carried forward to the next year for use and does not need to be remitted to the State Budget.

5/ The heads of the Financial Affairs and Accounting Departments, the Secretaries of the Ministry's Office, and the heads of financial departments and secretaries of enterprise associations and holding companies are responsible for assisting the Minister and the General Directors of enterprise associations and holding companies in establishing and managing the use of the Minister's Fund according to the regulations set forth in this Circular.

III. USE OF THE MINISTER'S FUND:

The Minister's Fund shall be used for the following purposes:

1/ To reward outstanding collectives and individuals within the industry who have achieved remarkable results in completing urgent projects or key tasks assigned by the Ministry and the State.

2/ To reward outstanding collectives and individuals within the industry who have excelled in socialist emulation movements that are exemplary for the industry.

3/ To reward outstanding collectives and individuals within the industry who have won awards in technical competitions, innovation contests, and have made valuable inventions, innovations, and applied new scientific and technological advancements, improving business operations and enhancing production efficiency.

4/ To provide additional bonuses and welfare benefits to units and enterprises facing difficulties (due to natural disasters, enemy threats, etc.) or newly established enterprises that have yet to stabilize their production, significantly affected by unpredictable external factors impacting production and business outcomes.

5/ To supplement cultural, social, and common welfare needs of the industry.

6/ To supplement expenses for training and incentives for improving management and enhancing professional skills as prescribed.

7/ To supplement hospitality expenses as prescribed for guests invited by the Minister to serve work needs and exchange experiences.

Forms of rewards and levels of rewards or assistance shall be decided by the Minister, with the participation of Party organizations, mass organizations, and the Competition Committee, taking into account the general award levels prescribed by the Council of Ministers, ensuring reasonable and balanced rewards across industries.

When using the Minister's Fund, ministries must ensure prudent and economical spending, avoiding wasteful and ostentatious practices, and reducing previous expenditures funded by the State Budget.

IV. IMPLEMENTATION PROVISIONS:

This Circular shall apply to the establishment and use of the Minister's Fund starting from 1986 onwards, replacing Circular No. 53 TC/CNA dated December 30, 1984, and Circular No. 31 TC/CNA dated January 14, 1986, issued by the Ministry of Finance regarding the Minister's Fund.

Previous regulations and other regulations of ministries and sectors concerning the establishment and use of the Minister's Fund that conflict with this Circular are hereby abolished.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for resolution./.