Circular No. 07 - TC/ CDTT guiding the establishment of enterprise funds for food enterprises and food processing industries, construction, and design under the Ministry of Food and Foodstuffs in 1974.

CIRCULAR

GUIDELINES FOR ESTABLISHING ENTERPRISE FUNDS IN 1974 FOR FOOD INDUSTRIES AND FOOD PROCESSING INDUSTRIES, BASIC CONSTRUCTION, AND DESIGN UNDER THE MINISTRY OF FOODS AND FOODSTUFFS.

BASED ON Directive No. 324-TTg dated December 26, 1974, and Supplemental Directive No. 23-TTG dated January 28, 1975, of the Prime Minister regarding the review and recognition of the completion of the State Plan for 1974, after consultation with the relevant Ministries, the Ministry of Finance hereby guides the establishment of enterprise funds for 1974 for production and business units under the Ministry of Foodstuffs and Food as follows:

I. FOR FOOD PROCESSING INDUSTRIES, BASIC CONSTRUCTION, TRANSPORTATION, AND DESIGN UNITS BASIC DESIGN, TRANSPORTATION, DESIGN.

a. For food processing industrial enterprises:

- Enterprises engaged in food processing industries such as tea, tobacco, sugar, candy, salt, and 13 large flour mills, mechanical repair enterprises, machinery manufacturing enterprises, and bread and noodle processing enterprises, which are independent economic accounting units, shall establish funds according to the provisions of Decree No. 236-CP dated December 10, 1970, Supplemental Circular No. 88-CP dated May 2, 1972, and Circular No. 14-TC/CNXD dated August 1, 1974, all issued by the Government Council and the Ministry of Finance.

- For small rice milling enterprises and bread and noodle processing enterprises, if they are independent economic accounting units within the Food Departments and Bureaus, they shall establish funds like the processing companies of the Internal Trade Department according to Circular No. 10-TC/TNGT dated April 9, 1975, issued by the Ministry of Finance.

- Other dependent units that are not independent economic accounting units shall have their respective Food Departments include all staff members when calculating the establishment of enterprise funds.

- The Salt Management Units in Thanh Hoa, Nam Ha, Nghe An, and Ha Tinh shall establish enterprise funds similar to those of the Food Departments.

b. For transportation fleets, construction units, survey, and design units:

- Independent economic accounting transport fleets shall establish enterprise funds according to Circular No. 8-TC/TNGT dated March 13, 1975, issued by the Ministry of Finance, guiding the examination and approval of rewards and fund establishment for transport enterprises in 1974.

- Construction installation enterprises and construction management boards that are independent economic accounting units shall establish funds according to Circular No. 11-TC/CNXD dated March 31, 1975, issued by the Ministry of Finance, guiding the examination and approval of rewards and fund establishment for construction installation units in 1974.

- Survey and design units that are independent economic accounting units shall establish funds according to Circular No. 12-TC/CNXD dated March 31, 1975, issued by the Ministry of Finance, guiding the examination and approval of rewards and fund establishment for survey and design units in the construction industry in 1974.

- Units such as driving teams, self-construction management boards, and construction teams directly under the Food Departments, Bureaus, and Companies, which are not independent economic accounting units, their respective Departments, Bureaus, and Companies will add the number of staff present at the beginning of the year to establish two funds for their own units.

- The Foodstuff Newspaper Editorial Board, the state reserve of rice and materials, shall establish funds according to Circular No. 20-TC/TNGT dated May 12, 1975, issued by the Ministry of Finance, guiding rewards for personnel managing state material reserves in 1974. The Supply Materials Bureau shall establish funds according to Circular No. 04/TC/TNGT dated March 3, 1975, issued by the Ministry of Finance, guiding rewards and fund establishment for supply technical materials units in 1974.

II. BUSINESS OPERATIONS

All Food Departments, Bureaus, and Companies that are independent economic accounting units shall be reviewed and allowed to establish two funds (welfare and reward) in 1974 according to the following regulations:

1. Conditions for Establishing Two Funds (Welfare and Reward):

a. Must have an economic and financial plan built from the grassroots level and officially approved by the State.

b. Must strictly comply with economic contract systems.

c/ Accurately, truthfully, and fully complete all forms and submit the final report on time as prescribed by the State regulations. In addition to the annual report, key units must also submit quarterly reports to the Ministry of Finance, following the spirit of the above regulations. At the same time, they must fulfill the budget submission plan as stipulated by State regulations.

Any unit failing to meet these conditions shall not be allowed to establish two funds but may receive welfare and incentive allowances as stipulated in point "4" below.

2. Level of Fund Establishment:

a/ The general rate for calculating the two funds is based on a percentage (%) of the total actual salary of the staff belonging to the business and production salary fund of the unit, according to the provisions of Circular No. 88/CP dated May 2, 1972.

b. The general rate for both levels I and II is set at 8%.

3. Standards:

Units meeting the conditions mentioned in points (1) and (2) above, and satisfying the following standards, shall be eligible for review and establishment of two funds:

a/ Complete the purchase targets (physical); sales should be equal to or less than the targets (physical) set by the State but must ensure all policies, production needs, and the living requirements of the people.

b. Fulfill the State budget submission plan as prescribed by the State.

c. Achieve circulation costs lower than or equal to the officially approved State target.

d. Maintain labor force numbers as prescribed by the State, but achieve or exceed productivity targets.

e. Not violate any policies, distribution systems, procurement prices, or State regulations.

When reviewing the establishment of two funds, units failing to meet 100% of the above standards shall be handled as follows:

- For standard (a), for every 1% shortfall in the plan, deduct between 2% and 3% of the calculated amount. Standard (b) shall be treated similarly to standard (a).

- For standard (c), for every 1% shortfall in the plan, deduct between 1% and 2% of the amount to be allocated.

- For standards (d) and (e), based on the degree of compliance, reduce the allocation by 1% to 1.5% of the calculated amount.

4. Ceiling, Allocation Levels, and Allowances:

The total amount of two funds established according to the above regulations shall be divided as follows:

- 50% for the welfare fund

- 50% for the reward fund

If the average per capita bonus fund exceeds one month's average actual rank salary, the excess amount shall be transferred to the welfare fund.

For units that do not meet the conditions to establish two funds or are penalized for failing to meet targets and whose fund amount is less than 10 dong per person on average, they will be subsidized up to 10 dong per person on average, with 7 dong allocated to the welfare fund and 3 dong allocated to the reward fund.

The funds established for the two purposes (welfare and bonuses) are included in the profit and loss of the unit. For units allowed to incur losses, the budget will compensate as it currently does for profitable units, which will be deducted from their profits.

III. SOME POINTS TO NOTE: When establishing the two funds (welfare and bonuses).

1/ The establishment and use of the two funds (welfare and reward) must comply with the provisions of Decrees No. 235/CP dated December 4, 1969, No. 236/CP dated December 10, 1970, and Circular No. 88/CP dated May 2, 1972, all issued by the Government Council.

2/ Departments, Bureaus, and Food Companies when reporting for review on plan completion must invite local Finance Departments and Bureaus to attend, to examine and provide opinions.

Reports sent to the Ministry of Food and Commodities must include confirmation from local Finance Departments so that the Ministry of Food and Commodities has a basis for reviewing and reporting to the State.

3/ Before formal approval, the Food Departments, Bureaus, and Companies may temporarily allocate 75% of the funds recorded in the annual plan, and the remaining amount will be allocated upon formal approval. If the allocation exceeds the approved amount or does not meet the criteria for fund approval, the excess must be returned.

It is requested that the Ministry of Foodstuffs and Food instruct the Food Departments, Bureaus, and Companies to work directly with financial authorities at all levels to verify and analyze the data on plan completion; ensuring the accuracy of the data before organizing the examination and approval for the Food Departments, Bureaus, and Companies to establish funds according to this Circular.

4/ The establishment of enterprise funds for the entire food and commodity industry in 1975 shall also apply this Circular.

THE MINISTER OF FINANCE

DEPUTY MINISTER

Trinh Van Binh

Place of Receipt:

- Office of Deputy Prime Minister (for reporting)

- Ministries and agencies directly under the Council of Ministers

- Central Investment Agency

- People's Committees of regions, cities, and provinces

- Financial Departments and Food Departments

- Divisions, Bureaus, and Institutes of the Ministry of Finance

- To be filed in the Ministry's Office and Division.