CIRCULAR

Guidelines for establishing enterprise funds for the 1974 fiscal year for food enterprises and food processing industries, construction, design under the Ministry of Food and Commodities.

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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 ministry, the Ministry of Finance provides guidelines for establishing enterprise funds for the 1974 fiscal year for production and business units under the Ministry of Food and Commodities as follows:

I. FOR ENTERPRISES IN THE FOOD PROCESSING INDUSTRY, MILLING, BASIC CONSTRUCTION, TRANSPORTATION, AND DESIGN.

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:For industrial processing enterprises:

- Enterprises processing foodstuffs such as tea, tobacco, sugar, confectionery, salt, and 13 large milling plants, mechanical repair workshops, manufacturing workshops, and bread and noodle processing enterprises, which are independent economic accounting units, shall establish funds according to 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 Council of Ministers and the Ministry of Finance.

- For small milling enterprises, bread and noodle processing enterprises, if they are independent economic accounting units within the Food Departments and Offices, 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 and Offices include all staff members of these organizations when calculating the establishment of enterprise funds.

- The Salt Control Units in Thanh Hoa, Nam Ha, Nghe An, and Ha Tinh shall establish enterprise funds like the Food Departments and Offices.

b. For transportation teams, construction teams, and survey-design units:

- Independent economic accounting transportation teams 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 transportation enterprises in 1974.

- Independent economic accounting construction enterprises and construction management teams 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 units in 1974.

- Independent economic accounting survey-design 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-design units in the construction industry in 1974.

- For driving units, self-construction management teams, and construction teams directly under Food Departments, Offices, and Companies that are not independent economic accounting units, the Food Departments, Offices, and Companies will include the number of staff present at the beginning of the year from these organizations when establishing two funds for their own units.

- For the Food News Publishing House, the National Grain Reserve System, and the Supply Material Bureau, they shall establish funds according to Circular No. 20-TC/TNGT dated May 12, 1975, and Circular No. 04-TC/TNGT dated March 3, 1975, both issued by the Ministry of Finance, guiding rewards and fund establishment for personnel managing national reserve materials and supply material units in 1974.

II. BUSINESS AND TRADE SECTION

All Food Departments, Offices, 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 provisions:

1/Conditions for establishing two welfare and reward funds (referred to as two funds):

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

b/ Must strictly comply with economic contract systems.

c/ Must submit accurate, truthful, and complete financial statements and reports as required by the State regulations. In addition, key units must also submit quarterly reports to the Ministry of Finance, in accordance with the above spirit. They must also fulfill the State budget submission plan as stipulated by State regulations.

Any unit that does not meet the above conditions shall not be allowed to establish two funds but can only enjoy a certain amount of welfare and incentive allowance as stated in point "4" below.

2/ Level of Fund Establishment:

a/ The general rate for two funds is calculated as a percentage (%) of the total actual annual salary of employees belonging to the business and production salary fund of the unit, as specified in Circular No. 88/CP dated May 2, 1972.

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

3/ Basic standard:

Units meeting the conditions mentioned in points (1) and (2) above, and satisfying the following criteria, may be reviewed and allowed to establish two funds:

a/ Achieve purchase targets (physical); sales should be equal to or less than the targets (physical) set by the State while ensuring all policies, needs of production, and people's livelihoods.

b/ Fulfill the State budget submission plan as stipulated by State regulations.

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

d/ Maintain labor force numbers equal to or lower than the State's regulations, but still achieve or exceed labor productivity.

e/ Not violate any policies, distribution systems, procurement prices, or State-set prices.

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

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

- For criterion (c), for every 1% shortfall in the plan, deduct between 1% to 2% of the established amount.

- For criteria (d) and (e), based on the degree of implementation, reduce the establishment rate by 1 to 1.5% of the calculated amount.

4/ Ceiling, establishment rate, and allowance:

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

- Fifty percent for the welfare fund

- Fifty percent for the incentive fund.

- If the average per capita of the incentive 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 for establishing two funds or are penalized for failing to meet targets and thus have less than ten dong per capita deducted, they will be subsidized up to ten dong per capita, with seven dong allocated to the welfare fund and three dong allocated to the incentive fund.

The source of money for establishing the two funds (welfare and incentive) is included in the profit and loss of the unit. For units allowed to incur losses, the State budget will compensate as it currently does for units making profits, which will be deducted from the profit submitted.

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

1/ The establishment and use of the two funds (welfare and incentive) must comply with the provisions set forth in Decree No. 235/CP dated December 4, 1969, Decree No. 236/CP dated December 10, 1970, and Circular No. 88/CP dated May 2, 1972 of the Council of Ministers.

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

Reports sent to the Ministry of Food and Commodities must include confirmation from Financial Departments and Bureaus to enable the Ministry of Food and Commodities to have a basis for reviewing and reporting to the State.

3/ Prior to formal approval, Departments, Bureaus, and Food Companies may temporarily deduct seventy-five percent of the amount recorded in the enterprise funds for the planned year, and upon formal approval, the remaining amount will be deducted. In cases where the deduction exceeds the formally approved amount, or if the criteria for approving the funds are not met, the excess amount deducted must be returned.

It is recommended that the Ministry of Food and Commodities instruct Departments, Bureaus, and Food Companies to work directly with financial agencies at all levels to jointly review and analyze the data on plan completion; ensuring the accuracy of the data before organizing the review for Departments, Bureaus, and Food Companies to deduct funds according to this Circular.

4/ The deduction of funds for food and foodstuff enterprises nationwide in 1975 shall also apply according to this Circular.