Circular No. 09/2009/TT-BTC guiding the financial management mechanism for Vietnam Television

CIRCULAR

Guidelines for the financial management mechanism for Vietnam Television

-------------------------

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the State Budget Law;

Pursuant to Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations for State-owned Enterprises and the Management of State Capital Invested in Other Enterprises;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 18/2008/NĐ-CP dated February 4, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of Vietnam Television.

The Ministry of Finance guides the financial management mechanism for Vietnam Television as follows:

I. GENERAL PROVISIONS

1. Object and scope of application

This Circular stipulates the regime for managing capital, assets, and finance for Vietnam Television (VTV) to implement in accordance with its functions, tasks, powers, and organizational structure as prescribed in Decree No. 18/2008/NĐ-CP dated February 4, 2008 of the Government.

2. VTV operates autonomously and is responsible for fulfilling its tasks, organizing its staff establishment, and managing its finances according to the law. VTV has the responsibility to manage and utilize various sources of capital, assets, and human resources effectively, practice thrift and avoid waste, ensure completion of assigned political tasks, create conditions for developing VTV according to the strategy and planning approved by the Government at each stage, increase income, improve the living standards of officials, employees, and workers, and link responsibilities with the interests of officials, employees, and workers of VTV in their professional activities.

VTV implements financial management mechanisms, labor mechanisms, salary systems; business accounting mechanisms similar to those of enterprises, pays taxes, and other payments to the state budget according to current laws.

3. VTV may open transaction accounts in Vietnamese dong and foreign currencies at the State Treasury and at banks.

4. Enterprises under VTV

Enterprises and companies established by the General Director of VTV (hereinafter referred to as enterprises) after being permitted to establish by the Prime Minister shall operate under the business accounting mechanisms prescribed by current laws applicable to enterprises.

5. VTV has production units, service production units, transmission broadcasting units, and business and service units directly under VTV. VTV allocates capital, assets, and other resources to enterprises under VTV based on the capital, assets, land value, or land rental fees granted by the state to VTV, in accordance with the functions, tasks, business objectives of each unit, and the business plans decided by the General Director of VTV., 6. The Ministry of Finance performs state management functions regarding finance, provides guidance, inspects, and supervises the revenue and expenditure activities of VTV's finance.

A. MANAGEMENT AND USE OF CAPITAL AND ASSETS

II. SPECIFIC PROVISIONS

1. Management and use of capital sources

1.1) Sources of VTV's capital: VTV's capital is formed from the following sources:

1.1.1) State capital invested in VTV, including:

- Direct capital provided from the State Budget for VTV and enterprises directly under VTV when they were established and during their operation;

- State capital received from other places transferred according to the decision of the competent authority;

- Value of grants, gifts, donations, ownerless property, surplus property when inventorying VTV's assets;

- Value of land use rights or land rental fees and other amounts included in state capital according to the provisions of the law;

- Supplementary capital from post-tax profits from business, advertising, television services, and other services.

1.1.2) Raised capital:

Loans from credit organizations, financial organizations, individuals both domestically and internationally, and other forms of raising capital not prohibited by law.

1.1.3) Capital invested by VTV in other enterprises, including:

- Capital in the form of money, land use rights or land rental fees, the value of other assets of VTV or enterprises directly under VTV invested or contributed to other enterprises according to the law and this Circular;

- Capital from state budget investment contributions to other enterprises entrusted to VTV or managed by enterprises under VTV;

- Value of state capital at enterprises where VTV acts as the representative owner;

- Profits and other dividends distributed by VTV or enterprises under VTV contributing capital to other enterprises used for reinvestment in those enterprises.

- Other types of capital as prescribed by current laws.

1.2) Allocation of state capital invested in VTV:

- Party allocating capital: The Ministry of Finance implements the allocation of capital to VTV on behalf of the Government; the General Director of VTV allocates capital to enterprises under VTV.

- The method of allocating capital is carried out according to the Enterprise Law and current regulations of the State.

1.3) System for preserving and developing state capital at VTV:

- VTV is responsible for preserving state capital, implementing management and usage systems for capital and assets, profit distribution systems, financial management and asset systems, accounting systems according to this Circular and regulations of the State for enterprises, suitable to the characteristics of VTV's operations.

- Timely handle the value of lost assets, unrecoverable debts according to this Circular and set aside risk reserves after:

+ Inventory write-down reserve;

+ Reserve for doubtful receivables;

+ Reserve for losses on financial investments;

The establishment and use of inventory write-down reserves and loss reserves on financial investments (excluding investments that VTV is not allowed to make such as long-term securities investments, purchasing stocks, bonds, acquiring another company) are implemented according to the Enterprise Law, guiding documents for the implementation of the Enterprise Law, and this Circular.

The establishment and use of provisions for inventory write-downs and provisions for losses on financial investments (excluding long-term stock investments, purchasing shares, bonds, and acquiring another company that Đài THVN is not permitted to invest in) shall be carried out in accordance with the provisions of the Enterprise Law, guiding documents for the implementation of the Enterprise Law, and the provisions of this Circular.

- Other measures for preserving state capital in accordance with current laws.

1.4) Rights and obligations regarding the use of capital:

- Vietnam Television (VTV) may independently utilize state capital assigned to it, other types of capital, and funds managed by the unit in production, business operations, and services, and shall be responsible for preserving, developing capital, ensuring the effective use of capital in accordance with current laws.

- VTV directly manages capital and sources of capital for dependent accounting units; VTV acts as the owner of the investment capital in enterprises under its jurisdiction in accordance with the Enterprise Law, monitors and supervises the business and financial activities, and results of enterprises under its jurisdiction as stipulated by law, and fulfills other rights and obligations as prescribed by law.

- The use of capital raised for business and service operations of VTV must be carried out on the principle of self-responsibility for repayment, ensuring the effectiveness of raised capital usage, without changing the form of ownership.

- For main political tasks assigned by the Prime Minister, based on approved plans by competent authorities, VTV is responsible for building projects and organizing their implementation.

1.5) Regarding management of state capital invested in other enterprises:

- VTV is permitted to use capital and assets under its management to invest in other enterprises in accordance with its functions and responsibilities, complying with current laws and regulations set forth in this Circular, ensuring efficiency, preservation and development of capital, increasing income, and not affecting the operational objectives and assigned political tasks of VTV.

Investments in other enterprises related to land must comply strictly with laws on land and current guiding documents.

- The proportion of capital investment in other enterprises shall not exceed 15% of the total asset value reported in the most recent quarterly financial statement of VTV.

- The General Director of VTV decides on investment projects in other enterprises.

- VTV implements representation of ownership of investment capital in other enterprises according to current State regulations on financial management systems of state-owned companies and management of state capital invested in other enterprises, and provisions in this Circular.

- Cases where VTV is not allowed to invest capital or contribute capital to enterprises belonging to other economic sectors where the father, mother, wife, husband, children, brothers, sisters, or half-siblings of the General Director manage or operate such enterprises; VTV is not allowed to purchase shares, bonds, securities, or acquire another company.

1.6) Management of receivables:

Responsibilities of VTV in managing receivables:

- Establish and promulgate regulations on managing receivables, assign and clearly define the responsibilities of collectives and individuals in tracking and recovering debts;

- Track receivables by debtor category; regularly classify receivables (current receivables, difficult-to-collect receivables, unrecoverable receivables), urge recovery of receivables.

- VTV is responsible for handling unrecoverable receivables. The amount of unrecoverable receivables (after deducting compensation from related individuals or collectives) will be offset by the provision for difficult-to-collect receivables, financial reserve fund; if insufficient, it will be recorded as expenses of VTV. Recovered receivable amounts will be recorded as revenue of VTV.

1.7) Management of payables:

VTV is responsible for managing payables:

- Monthly, VTV is responsible for evaluating and determining the ability to repay debts according to contracts for timely debt repayment.

- Foreign exchange rate differences arising during the period and the end-of-year foreign currency payable balances are handled as follows:

+ For operating units, the entire foreign exchange difference (including for investment loans) is recorded as expenses or financial activity revenues. If recorded as expenses and the unit incurs losses, a portion will be allocated to the next year, but the minimum allocation to expenses in the year must equal the foreign exchange difference of maturing payable debts.

+ For investment units that have not yet commenced operations, the entire foreign exchange difference is reflected cumulatively on the balance sheet; when investment is completed, it is fully transferred to financial activity expenses or revenues of the first operational year; if there is a loss, it will be allocated over subsequent years, with a maximum allocation period of 5 years (from the start of operations).

2. VTV receives state budget funding to implement the following work contents:

+ Investment in construction (projects group A) until the end of 2010. After 2010, VTV will ensure its own funding for development investments. In cases where it cannot ensure funding, VTV reports to the Prime Minister for approval and consideration of support funding to implement.

+ Funding for activities ordered by the State;

+ Funding for National Target Programs;

+ Funding for scientific research topics under the State-level scientific research program;

+ Funding for training according to the State's program and plan.

3. Management and use of assets

3.1) Fixed assets - fixed asset investment

- Assets of VTV include: tangible and intangible fixed assets (including the value of state-granted land use rights); assets of dependent accounting units; fixed assets and long-term and short-term investments of VTV, investments in independent accounting enterprises under VTV, state-owned limited liability companies with one or two members where VTV is the owner, long-term and short-term investments made directly by dependent accounting units of VTV. VTV is responsible for managing and using assets effectively, preserving and developing capital in accordance with current laws.

- Authority to decide on investment and construction projects is implemented as follows:

The authority to decide on investment and construction projects for projects under Vietnam Television (VTV) belonging to group B and below shall be vested in the General Director of VTV to approve such projects.

For projects under independent accounting enterprises directly affiliated with VTV, the enterprise's General Director shall decide to approve investment projects with a value equal to 15% of the total asset value recorded in the latest published financial report of the enterprise, but not exceeding the highest limit of group B as stipulated by laws on investment and construction management; for investment projects with a higher capital investment than the aforementioned level, the enterprise's General Director shall decide on the project after obtaining the opinion of the VTV General Director.

The procedures for investment implementation shall be carried out in accordance with the provisions of laws on project management and investment construction.

3.2 Depreciation of assets

All existing fixed assets of VTV must be subject to depreciation, including those that are not in use and awaiting liquidation (except for fixed assets that have been fully depreciated but are still being used in production and business activities, and fixed assets belonging to public welfare infrastructure and housing).

The rate of depreciation of fixed assets shall be in accordance with current laws applicable to enterprises, and the amount of depreciation of fixed assets shall be used for reinvestment, replacement, and modernization of fixed assets in accordance with current laws.

3.3 Leasing and mortgaging of assets

- VTV is permitted to lease and mortgage its assets according to the principle of effectively preserving and developing capital as stipulated by current laws and regulations set forth in this Circular; the General Director of VTV shall decide on leasing and mortgaging of VTV’s assets.

- The use of leased and mortgaged assets must comply strictly with the provisions of the Civil Code and current state regulations.

3.4 Liquidation and sale of fixed assets and long-term investments

- VTV has the right and responsibility to sell off and liquidate fixed assets that are damaged, obsolete, or no longer needed for use; long-term investments that are no longer required for continued investment to recover capital.

- Authority to decide on the liquidation and sale of fixed assets and long-term investments:

+ The VTV General Director shall decide on plans for the liquidation and sale of long-term investments and fixed assets with remaining values less than or equal to 15% of the total asset value reported in the latest published quarterly financial statement of VTV; for plans above the specified level, VTV shall report to the competent authority for decision-making.

+ For independent accounting enterprises directly affiliated with VTV, the enterprise's General Director shall decide on plans for the liquidation and sale of long-term investments and fixed assets with remaining values less than or equal to 15% of the total asset value reported in the latest published quarterly financial statement of the enterprise; for plans above this level, the enterprise shall report to the VTV General Director for decision-making.

- The sale of assets shall be conducted through auction organizations or self-organized by VTV or enterprises in a transparent manner in accordance with the prescribed procedures and formalities under laws on asset auctions.

3.5 Asset Management

- VTV must conduct annual inventory of assets, determining the quantity of assets, fixed assets, and long-term investments, as well as current assets and short-term investments invested in enterprises directly affiliated with VTV; reconcile leased assets; sales, liquidations... or for any other reasons causing changes in VTV's assets.

- For surplus, shortage, unrecoverable debts, and overdue debts, the causes and responsibilities of those involved must be clearly identified, and material compensation levels must be determined in accordance with regulations.

3.6 Handling Losses on Assets

When there is a loss of assets due to missing, shortages, damage, deterioration in quality, obsolescence, or accumulation in periodic and sudden inventories, VTV must determine the value of the loss, the cause, responsibility, and handle it as follows:

- If the cause is subjective, the person responsible for the loss must compensate. The VTV General Director shall decide on the level of compensation in accordance with the law and bear responsibility for their decision.

- If the asset was insured, it shall be handled according to the insurance contract.

- The value of the lost asset after compensating with personal and collective compensation, and insurance organization compensation, if insufficient, shall be covered by the financial reserve fund; if the financial reserve fund is insufficient, the shortfall shall be accounted for as production and business expenses for the period.

- In special cases caused by natural disasters or force majeure resulting in serious damage that VTV cannot overcome, VTV shall develop a handling plan and submit it to the finance agency for approval by the competent authority.

- The VTV General Director shall promptly handle asset losses; if asset losses are not handled, the VTV General Director shall be held accountable under the law.

3.7 Revaluation of Assets: VTV shall revalue assets in the following situations:

- As decided by the competent state agency;

- Implementing the transfer of ownership of VTV's assets;

- Using assets to invest in other enterprises.

The transfer of ownership of assets and the use of assets for external investment outside VTV enterprises shall be carried out in accordance with the current asset management system of the law and the provisions of this Circular.

3.8 Land Management and Use

VTV shall manage and use land in accordance with the Law on Land and current guiding documents of the Law on Land.

B. REVENUE AND EXPENSES

1. Revenue: The revenue of VTV consists of all income generated from business operations, advertising activities, and other services provided by dependent accounting units, including:

- Revenue from advertising activities;

- Revenue from television service activities and other services;

- Revenue from joint ventures and partnerships;

- Revenue from sponsorships and grants from domestic and foreign organizations and individuals;

- Revenue from activities ordered by the State.

- Revenue from financial activities, including: income from copyright fees, rental income from the use of assets by others, interest income from lending capital, interest on deposits; deferred payment sales interest, installment sales interest, financial leasing interest; foreign exchange gains from selling foreign currency, foreign exchange rate differences; profit differences from transferring capital investments and profits distributed from investments in VTV Corporation's subsidiaries and other enterprises.

- Other income includes proceeds from the liquidation and sale of fixed assets, compensation payments for debts that have been extinguished and recorded as increased income, customer penalty fees due to breach of contract, and other income.

2. Expenses

2.1) The expenses of VTV Corporation include all costs incurred in fulfilling production, transmission, and broadcasting tasks; advertising activity costs, television service activity costs, and other service activity costs; other related costs of VTV Corporation’s subordinate units, including:

- Raw material, fuel, power, semi-finished product, and external service purchase costs (based on actual consumption and original cost), tool and equipment depreciation costs, minor repair costs for fixed assets, advance expense costs, major repair costs for fixed assets;

- Depreciation costs of fixed assets calculated according to current regulations applicable to enterprises;

- Wages, salaries, and other wage-like costs payable to employees, decided by the General Director of VTV Corporation in accordance with guidelines issued by the Ministry of Labor, Invalids, and Social Affairs;

- Social insurance contributions, trade union fees, and health insurance contributions for employees as required by current laws;

- Business transaction costs, hospitality costs, marketing costs, advertising costs, and meeting costs as stipulated by the Corporate Income Tax Law and this Circular;

- Other monetary costs include:

+ Resource taxes, business license taxes, land taxes (if applicable),

+ Land rental fees;

+ Severance pay for employees;

+ Training programs to enhance management skills and technical proficiency of employees;

+ Health care costs; scientific research costs, technological innovation research costs;

+ Incentive awards for innovative improvements, productivity increases, material savings, and cost reductions. The award amounts are determined by the General Director of VTV Corporation based on the effectiveness of such work but shall not exceed the cost savings generated by such work within one year;

+ Costs for female workers; security services;

+ Environmental protection costs;

+ Meal costs for employees;

+ Party and mass organization work costs at VTV Corporation (costs outside the budget of the Party and mass organizations funded from designated sources);

+ Other monetary costs;

2.2) Costs incurred in fulfilling state-ordered tasks

2.3) Actual losses of assets and unrecoverable receivables as prescribed.

2.4) Values of provisions for inventory write-downs, doubtful debts, exchange rate differences on long-term foreign currency loans, advance warranty costs, and other provisions as prescribed by law for businesses operating in VTV Corporation's special fields.

2.5) Financial activity costs, including: costs related to external investments, interest paid on borrowed funds, exchange rate differences when settling transactions, asset rental costs, provisions for long-term investment write-downs as stipulated in this Circular.

2.6) Other costs, including:

- Costs associated with the sale and liquidation of fixed assets, including the remaining value of fixed assets upon liquidation and sale;

- Costs for recovering written-off debts;

- Costs for collecting penalties;

- Penalty costs for breach of contract;

- External activity costs (outbound and inbound delegations and overseas representative offices of VTV Corporation);

- Other costs (if any).

2.7) Not included in production and business operation costs, service costs which are covered by other sources or unrelated to production and business operations include:

- Costs for purchasing, constructing, and installing tangible and intangible fixed assets;

- Interest expenses on borrowed funds included in investment and construction costs, and exchange rate differences on foreign currency investments prior to the completion and use of the project;

- Other costs unrelated to VTV Corporation's business and service activities;

- Administrative fines such as traffic violations, business registration violations, accounting and statistics violations, tax violations, and other administrative violations;

- Costs covered by other funding sources;

- Unreasonable costs without valid documentation.

The expenses mentioned in Point 2, Section B of this Circular shall be implemented in accordance with relevant laws suitable for each type of VTV Corporation's activities. The General Director of VTV Corporation is responsible for establishing economic and technical standards and expenditure limits to be submitted to the competent authority or self-determined in accordance with current laws and this Circular.

C. PRODUCTION RESULTS, BUSINESS OPERATIONS AND DISTRIBUTION OF PRODUCTION AND BUSINESS RESULTS

1. Production and business results:

VTV Corporation's annual profit includes: advertising revenue, production and business revenue, service revenue from its dependent units; profits distributed from its subsidiaries and other enterprises with VTV Corporation's investment.

2. Profit distribution and reserve establishment

- After paying various taxes and national budget contributions, and compensating previous years' losses that have exceeded the pre-tax income deduction period, the remaining profit of VTV Corporation will be allocated as follows:

- At least 50% to establish the Development Investment Fund for reinvestment and capital supplementation;

- 5% to establish the Financial Reserve Fund;

- Establishing the Reward Fund and Welfare Fund; the maximum contribution shall not exceed three months of average wages, salaries, and other income for the year;

- Remaining profit after establishing the Welfare and Reward Funds will be supplemented to the VTV Corporation Development Investment Fund.

3. Use of Funds

3.1) The Development Investment Fund shall be used for investment in production development, supplementing capital for construction of material facilities, purchasing equipment and work tools, applying scientific and technological progress, contributing capital to establish Joint Stock Companies, Limited Liability Companies, Partnership Companies, Joint Ventures; contributing capital for joint business cooperation contracts. The use of the Fund shall be governed by this Regulation and decided by the General Director who shall bear legal responsibility.

3.2) The Financial Reserve Fund shall be used to compensate for losses and damages to assets and difficult-to-collect debts in accordance with current laws.

3.3) The Reward Fund shall be used for:

- Regular rewards for collectives and individuals within and outside VTV for their work efficiency, labor productivity, and contributions to VTV's activities; the reward amount shall be decided by the VTV General Director based on the proposal of the VTV Competition Board.

- Special rewards for VTV individuals and collectives with technical innovation initiatives, improved procedures, and business plans that yield high economic benefits; the reward amount shall be decided by the VTV General Director based on the proposal of the VTV Competition Board.

3.4) The Welfare Fund shall be used for:

- Investing in construction or repair and supplementary capital for welfare projects of VTV, contributing capital for construction of welfare projects with other units according to agreed contracts.

- Expenditure for sports, cultural, and public welfare activities for VTV staff collectives.

- Assistance for regular and emergency difficulties for VTV staff.

- Other welfare expenditures.

The VTV General Director shall decide on the use of the Funds based on the proposal of the VTV Trade Union.

D. ACCOUNTING SYSTEM, STATISTICAL RECORDS, AUDITING, FINANCIAL REPORTING AND PUBLIC DISCLOSURE

1. Management and Accounting

1.1) VTV includes production units; service units for production, transmission, broadcasting television programs, production, business, services... VTV implements a commercial accounting mechanism like enterprises, relying on revenue to cover expenses, generating profits, and fulfilling tax obligations and other payments to the State Budget as stipulated by current laws; profit distribution and use of Funds shall be carried out in accordance with this Circular. To implement the aforementioned accounting mechanism, VTV applies the current enterprise accounting system.

For subordinate units under dependent accounting, accounts shall be opened, accounting departments established, and separate seals provided depending on the scale of operations.

Annually, based on assigned tasks and broadcast hours of TV channels, VTV determines tasks for each unit; based on the system of standards: economic-technical norms, expenditure standards, television product unit prices issued by the VTV General Director, VTV assigns revenue and expenditure plans, orders program production, broadcasting tasks... to units. At year-end, VTV bases on the volume of completed tasks by each unit to settle revenue and expenditure accounts with units.

1.2) For VTV-affiliated public service units:

- The Television College operates under the autonomy mechanism, self-responsible for implementing tasks, organizational structure, staffing, and finance according to current state regulations for public service units.

- The Television College receives additional material investment from VTV from the Development Investment Fund approved by the VTV General Director.

1.3) Independent Enterprises:

Enterprises established by the VTV General Director after obtaining permission from the Prime Minister. They operate under the current financial and accounting systems for enterprises.

The initial investment by VTV when establishing the enterprise must be preserved and developed in accordance with current laws.

2. Relationship between VTV and its affiliated independent enterprises

2.1) Investment capital into affiliated enterprises shall be decided by the VTV General Director in accordance with this Circular.

2.2) Assets formed from capital invested by VTV, loans, and other lawful sources shall be managed and utilized by the enterprises. Enterprises must use capital, including capital invested by VTV, in accordance with the law; they must be responsible for profit margin indicators, effectiveness of capital preservation and development as invested by VTV.

2.3) All purchase, sale, lease, lending, asset transfer transactions between VTV and its affiliated enterprises must be conducted through economic contracts and settled as with other legal entities.

3. Financial Plan, Financial Reporting System, Statistics:

VTV's fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar.

Annually, VTV is responsible for building and reporting the annual financial plan to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the Government.

Quarterly and annually, VTV prepares and submits financial reports and statistical reports as required by law to the Ministry of Finance and relevant agencies.

4. Audit, Statistical Records, and Financial Disclosure System: VTV shall comply with current laws and provisions of this Circular.

5. VTV is subject to inspection, audit, supervision by competent state authorities.

6. Duties and Responsibilities of the VTV General Director

6.1) As the head representing the legal entity receiving state capital for VTV, he/she shall faithfully and responsibly exercise the rights and obligations entrusted for the benefit of the state and bear legal responsibility for the preservation and development of state capital at VTV.

6.2) He/she shall not abuse his/her position and authority to use VTV's capital and assets for personal gain, family, or others, nor give or gift VTV's assets to any individual.

6.3) Approve investment projects, overseas investment projects of the enterprise, loan schemes, liquidation plans, asset sale plans, and approve investment projects and schemes in accordance with current laws and this Circular.

6.4) Determine long-term financial plans and annual financial plans consistent with operational, business, and service plans; economic and technical standards, labor norms, financial cost standards, and other costs suitable to the operating conditions of Vietnam Television (VTV), serving as the basis for managing VTV's operations, businesses, and services.

6.5) Determine the ratio for the Development Investment Fund, decide on the ratio for the Reward Fund and Welfare Fund of VTV, and bear legal responsibility for these decisions.

6.6) In cases where decisions exceed authority, are made incorrectly, or abuse position and power causing damage to the State, compensation must be provided according to the law regarding such decisions.

6.7) Organize the establishment of economic-technical standards, financial cost standards, and other cost standards to issue and disseminate them down to the implementing entities.

6.8) Be subject to administrative penalties and disciplinary actions depending on the severity of the violation for the following behaviors:

- Violating financial management systems, accounting, auditing, and other systems that do not reach the level of criminal prosecution;

- Approving ineffective investment projects, organizing the implementation of investment projects inconsistently with plans, leading to delayed capital recovery or inability to recover capital.

III. IMPLEMENTATION PROVISIONS

1. This Circular takes effect 45 days from the date of issuance and applies from the 2009 fiscal year, replacing previous regulations inconsistent with this Circular.

2. During implementation, if there are difficulties, VTV is requested to report to the Ministry of Finance for timely amendments and supplements.