Joint Circular No. 08-TC-TT-NHKT supplements Circular No. 30-NDKT dated September 26, 1960 on non-cash payments through Construction Bank.

CIRCULAR

SUPPLEMENTING THE CIRCULAR NO. 30-NHKT OF SEPTEMBER 26, 1960 ON NON-CASH PAYMENTS THROUGH THE CONSTRUCTION BANK

Implementing the Decree No. 04-CP dated March 7, 1960 of the Prime Minister, the Ministry of Finance issued Circulars No. 30-NHKT dated September 26, 1960, and No. 117-NHKT dated October 3, 1960 on principles and forms of payment through the Construction Bank.

In recent times, payments through the Construction Bank have initially become systematic, payment methods have expanded, the use of cash has been significantly reduced, the supervision of the Construction Bank through the payment process has increasingly demonstrated its effectiveness, contributing to stabilizing currency, market stability, and saving state capital.

However, there remain two major issues with payments through the Construction Bank:

1. Payments are still delayed: completion volume payments are sometimes delayed for two or three months; goods from other units or trade are brought back for use but not paid for within four or five months, causing prolonged debts, occupying other units' capital, leading to stagnant capital, materials, and currency.

2. The revenues and expenditures of units have not been included in plans; units only prepare very simple plans to withdraw money, plans are separate from economic activities at construction sites, failing to reflect accurate manpower, material, equipment, and machinery plans, thus requiring many adjustments during implementation, creating difficulties for the bank's capital allocation and the allocation of food and materials by trade agencies.

To contribute to enhancing capital and material circulation, saving capital, stabilizing currency, and market, preventing the occupation of units' and trade agencies' capital, promoting the inclusion of financial revenues and expenditures in construction plans, facilitating the consolidation of economic accounting, strengthening the supervision of the bank in the payment process, the Ministry of Finance supplements Circular No. 30-NHKT dated September 26, 1960 with the following points regarding the payment of financial revenues and expenditures through the Construction Bank:

1. All construction units, construction enterprises, supply agencies with basic construction capital accounts at the Construction Bank must establish plans for payments through the Construction Bank, submitting monthly plans to the Construction Bank by the 18th of the preceding month and quarterly plans before the 15th of the last month of the quarter.

Without a plan, no withdrawals will be allowed; in special cases where a plan cannot be established, only withdrawals for salaries can be made if necessary.

Plans shall be prepared according to guidelines set by the Central Construction Bank.

2. Quarterly plans shall be divided into monthly plans, and monthly plans shall be divided into ten-day periods.

At the end of each month, any unspent amount must be carried over to the next month's plan, and the previous month's plan cannot be transferred to the next month.

3. Plans shall be detailed by individual revenue and expenditure items, exceeding the deposited funds is prohibited, funds from one account cannot be used for another, salary funds cannot be used for raw materials, direct costs cannot be used for indirect expenses, and funds intended for interest and depreciation payments cannot be used within the unit.

4. Plans must detail spending locations, funds allocated for one locality cannot be used for another, distinguishing between payments through the State Bank. Clear distinctions must be made between cash payments and transfer payments.

5. Plan adjustments for expenditures shall be made twice a month on the 10th and 20th. Units may exceed the planned amounts by up to 10% in total and for each item, exceeding 10% requires a plan adjustment.

In special cases, adjustments beyond twice a month require agreement from the Construction Bank.

6. If expenditures violate state regulations and standards, the Construction Bank has the right to recommend corrections.

7. City and provincial administrative committees should also study and gradually apply these provisions to local construction units.

These provisions shall take effect from April 1, 1964. It is requested that ministries and city and provincial committees instruct and assist all units in implementing them. Any difficulties encountered during implementation should be reported to the Ministry of Finance.

The Central Construction Bank will guide branch banks and distribution offices on how to implement this circular, assist units in its execution, and pay attention to drawing lessons to improve payment operations, serving the economic activities of construction units effectively, strengthening supervision while avoiding unnecessary complications, especially in the first months of 1964 when this system is newly implemented.