Circular No. 07/2001/TT-BTC guides the issuance, use, and settlement of funds for implementing the contract system for certain types of work in administrative state agencies and public institutions.

 CIRCULAR

Guidelines for the allocation, use, and settlement of funds for implementing the contract system for certain types of work

 in administrative state agencies and public institutions

in administrative state agencies, public service units

_________________

Pursuant to the State Budget Law dated March 20, 1996, and Decree No. 87/CP dated December 19, 1996, of the Government on the decentralization of management, preparation, implementation, and settlement of the State Budget;

Pursuant to the Law Amending and Supplementing Certain Provisions of the State Budget Law No. 06/1998/QH10 dated May 20, 1998, and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Government amending and supplementing certain provisions of Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of management, preparation, implementation, and settlement of the state budget;

Pursuant to Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on the implementation of the contract system for certain types of work in state agencies and public institutions.

The Ministry of Finance issues guidelines for the allocation, use, and settlement of funds for implementing the contract system for certain types of work in state agencies and public institutions as follows:

I. PREPARATION OF THE BUDGET FOR EXPENSES

1.1 Administrative state agencies and public institutions (hereinafter referred to as agencies and units) implementing the contract system for certain types of work as stipulated in Article 1 of Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government shall prepare a detailed budget for expenses under contracts for the following tasks:

(1) Repair and maintenance of the electrical power supply, water supply systems at offices, vehicles, and other machinery and equipment currently in use within the agency or unit.

(2) Driving;

(3) Security;

(4) Cleaning;

(5) Parking of means of transportation for officials, civil servants, and visitors coming to work with the agency or unit.

(6) Other tasks.

The aforementioned budget shall be prepared based on specific contracts signed with workers and business service organizations according to the prescribed regulations.

1.2. The budget for expenses under contracts shall be consolidated into item 101 - wages (if paid to individuals) or item 114 - rental costs (if paid to business service organizations) in the annual budget of the agency or unit.

1.3. In cases where the annual budget approved by the competent authority does not reflect the allocation of funds for expenses under contracts according to the above items (due to the inability to implement the work contract system from the beginning of the year as stipulated in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government), when implementing the work contract system, agencies and units shall arrange and allocate within the scope of the assigned budget to ensure funding for signed contracts as specified in Point 1.1 of Section 1 of this Circular, specifically:

- Adjustments shall be made to reduce items 100 - salaries, item 102 - salary allowances, and item 106 - contributions, corresponding to the salaries, allowances, and contributions of officials and civil servants who have switched to the contract system.

- Adjustments shall be made to increase item 101 - wages or item 114 - rental costs, corresponding to the increased amount required for expenses under contracts (as consolidated in the budget at Point 1.1).

1.4. In cases where the increase and decrease are not proportional to each other, the agency or unit shall rearrange the budget by adjusting other items accordingly, specifically:

- If the reduction is greater than the increase, adjustments shall be made to increase other items by the amount of the reduction.

- If the reduction is less than the increase, further reductions shall be made to other items by the amount of the increase.

1.5. To ensure convenience and speed in adjusting items due to the implementation of the contract system for certain types of work as stipulated in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government, agencies and units may adjust items as described above and notify the State Treasury branch handling transactions as a basis for inspection and supervision; subsequently, they shall report to the higher-level management agency and the same-level finance agency.

For adjustments to other items not covered by the above content, the provisions of Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance guiding the division of management, preparation, implementation, and settlement of the state budget shall apply.

II. ALLOCATION, USE, AND SETTLEMENT OF FUNDS FOR EXPENSES

The allocation, use, and settlement of funds for expenses under contracts by agencies and units shall be carried out normally as other budget items according to the provisions of Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance guiding the division of management, preparation, implementation, and settlement of the state budget; Circular No. 40/1998/TT-BTC dated March 31, 1998 of the Ministry of Finance guiding the management, allocation, and payment of budgetary expenditures through the State Treasury; Circular No. 21/2000/TT-BTC dated March 16, 2000 of the Ministry of Finance guiding the examination, notification, and settlement of the annual budget for administrative and public institutions, and related documents on state budget management.

III. IMPLEMENTATION:

This Circular takes effect from January 1, 2001. During its implementation, if there are difficulties or obstacles, agencies and units are requested to promptly report to the Ministry of Finance for coordination and resolution./.