Circular No. 104/2006/TT-BTC guides the management and use of state budget and assets for certain activities in the Cryptographic sector.

CIRCULAR

Guidelines for managing and using state budget and assets for certain activities within the Cryptographic sector

- Pursuant to the Cryptographic Ordinance issued in 2001;

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

- Pursuant to the Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government on management and use of state budget and assets for certain activities within the defense and security sectors;

- Pursuant to the Decree No. 14/1998/NĐ-CP dated March 6, 1998 of the Government on state asset management;

- Pursuant to the Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance hereby guides the implementation of management and use of state budget and assets for certain activities within the Cryptographic sector as follows:

A - GENERAL PROVISIONS

1. This Circular guides the management and use of state budget and assets for certain activities within the Cryptographic sector. Matters not covered in this Circular regarding the preparation, execution, and settlement of investment construction expenditures, national target program expenditures, and regular expenditures shall be implemented according to Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government; Circular No. 79/2003/TT-BTC dated August 13, 2003 guiding the management, issuance, and payment of state budget expenditures through the State Treasury and other current guiding documents.

2. Ministries, ministerial-level agencies, government agencies, central-level agencies, and localities have the responsibility to ensure the state budget for cryptographic work in accordance with the provisions of the State Budget Law; Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government, and the provisions of this Circular.

B - MANAGEMENT AND USE OF THE STATE BUDGET FOR THE CRYPTOGRAPHIC SECTOR

I - Contents of state budget expenditure at the National Cryptographic Administration:

1. Regular Expenditure:

1.1. Expenditure to ensure living conditions and policies for staff members of the National Cryptographic Administration;

1.2. Expenditure for training and technical skill enhancement in cryptography;

1.3. Expenditure for education and scientific research in cryptography;

1.4. Expenditure for trial production, experimental deployment of new cryptographic technology and technology transfer;

1.5. Expenditure for production, maintenance, and repair of specialized cryptographic machinery and equipment;

1.6. Expenditure for production, maintenance, and repair of cryptographic materials and dictionaries;

1.7. Expenditure for procurement and installation of specialized cryptographic machinery and equipment belonging to the Vietnamese Cryptographic System;

1.8. Expenditure for procurement and repair of fixed assets;

1.9. Expenditure for state management of cryptography: drafting legal documents on cryptography; guiding the implementation of policies; inspecting and supervising cryptography; etc.;

1.10. Expenditure for foreign aid and international relations;

1.11. Expenditure for propaganda, information dissemination, and competition promotion on cryptography;

1.12. Expenditure for new construction, renovation, and repair of office buildings, warehouses for storing documents and cryptographic machinery and equipment, and other projects (excluding those constructed from centralized state investment funds);

1.13. Expenditure to ensure living conditions and policies for students studying cryptography at the Cryptographic Engineering Academy;

1.14. Expenditure for product evaluation and certification within the scope of state secrets.

2. Investment development and national reserve expenditure:

2.1. Expenditure for developing cryptographic technology and infrastructure from centralized state investment funds;

2.2. Expenditure for national reserves in the cryptographic sector.

3. Other expenditure:

3.1. Expenditure for national target programs (if applicable);

3.2. Expenditure for state-funded scientific and technological research (if applicable);

3.3. Other expenditure assigned by the Government.

The National Cryptographic Administration shall review and examine the contents of expenditure prepared by subordinate units; compile the budget estimate and submit it to the Ministry of Finance (along with production indicators; supply and equipment plans) and settle state budget expenditures in accordance with the State Budget Law and current guiding documents (including Appendices 1, 2a, 2b, and 3 of this Circular).

II - Contents of state budget expenditure at agencies and units utilizing cryptography:

II - Contents of state budget expenditure at agencies and units utilizing cryptography:1. Expenditure to ensure state policies

for personnel engaged in cryptographic work within their own agencies and units in accordance with regulations; conditions2. Expenditure to ensure

3. working conditions, uniforms, and equipment in accordance with cryptographic regulations;Funding for cryptographic work

at ministries, provincial-level departments, and centrally-administered cities shall be allocated in the annual budget estimates of agencies and units utilizing cryptography in accordance with the provisions of the State Budget Law on budgetary decentralization management.

1. Service activity revenue: Units under the National Cryptographic Administration that utilize state budget funds and make use of technical facilities for production, business operations, training, and service provision with income must fully and timely remit all revenues to the state budget, except for amounts retained to cover costs as prescribed by law or approved by competent authorities;

2. Administrative penalty revenue and other revenues:All revenues from administrative penalties and fines must be fully remitted to the state budget. Revenue from the liquidation of fixed assets and other revenues shall be carried out in accordance with the provisions of the law.

C- FINANCIAL MANAGEMENT FOR SPECIAL ACTIVITIES OF THE CRUCIAL ORGANIZATION

1. Production of cryptographic products:

1.1. The funds for producing cryptographic products according to the state plan indicators are allocated in the annual state budget estimate approved by the competent authority;

1.2. Cryptographic products produced must be reflected in terms of quantity, type, and progress schedule as per the assigned plan;;

1.3. The production of cryptographic products must have planned cost norms for each type of product unit, and upon completion, actual production costs of each product unit by type must be reported;

1.4. The production cost of each cryptographic product unit must fully account for main contents such as: cost of purchased raw materials and supplies; fuel; energy; other costs;

1.5. The Government Office for Official Communications shall be responsible for the list, consumption quotas, production costs of cryptographic products, and report to the competent authority upon request.

2. Supply of machinery, equipment, cryptographic materials:

2.1. The Government Office for Official Communications shall be responsible for timely and fully supplying various cryptographic techniques and cryptographic products according to state plans to the official communication systems and organizations using cryptographic products and techniques to protect state secrets;

2.2. Specialized cryptographic machinery, equipment, and cryptographic materials produced, distributed, newly equipped, or upgraded by the Government Office for Official Communications for using agencies must be planned and budgeted in detail according to each type of machinery and equipment, and each type of cryptographic material of the respective using units;

2.3. Upgrading, modernizing specialized cryptographic equipment, machinery, and materials shall be carried out according to approved plans or projects within the state budget expenditure plan of the Government Office for Official Communications and settled according to current regulations;

2.4. Repair, maintenance, and replacement costs for specialized cryptographic machinery, equipment, and materials must be detailed when preparing the budget and settling accounts according to each using unit. The guarantee of funds is implemented as follows:

a/ If it is determined that software or hardware programs directly related to cryptographic techniques are damaged and must be repaired by the official communication agency:

- Cryptographic machines and specialized cryptographic equipment directly supplied by the Government Office for Official Communications (those sealed with lead seals at the Government Office for Official Communications) must be returned to the Government Office for Official Communications for repair, with repair and replacement costs guaranteed by the Government Office for Official Communications;

- Other types shall be repaired by the official communication organizations of ministries and sectors, with repair and replacement costs guaranteed by the respective ministries and sectors;

b/ If non-cryptographic parts are damaged and not directly related to cryptographic techniques, personnel engaged in official communication work shall report to the heads of their agencies or units to proactively repair them, with repair and replacement costs guaranteed by the respective agencies or units.

3. Scientific research and technology transfer in cryptography:The scientific research and development of cryptographic techniques and technology transfer by the Government Office for Official Communications must comply with the procedures and formalities stipulated in the Law on Science and Technology and other current guiding documents, which must be detailed reported and explained in the annual state budget allocation and settled according to current regulations.

4. Control over certain budget expenditures:Based on the confidential nature of the official communication sector, the State Treasury will not conduct expenditure control over items 100, 102, 103, 105, 108, 113, 119, 139, 127, sub-item 09 under item 111; sub-item 06 under items 117, 118; sub-items 03, 06 under item 145. The Government Office for Official Communications shall be responsible under the law for the legality and validity of the expenditure vouchers for the aforementioned items.

5. Audit of the Government Office for Official Communications:

The audit of the annual settlement reports of budgetary units under the Government Office for Official Communications shall be conducted by the National Audit Office in accordance with Article 66 of the State Budget Law; Article 78 of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government and Resolution No. 1011/2006/NQ-UBTVQH11 dated March 30, 2006 of the Standing Committee of the National Assembly.

D- MANAGEMENT OF STATE ASSETS IN THE OFFICIAL COMMUNICATION SECTOR

1. State assets under the Government Office for Official Communications:Shall be managed and utilized in accordance with the provisions of the law. Strictly prohibited from using state assets for purposes other than those specified, beyond standards and quotas set by authorized state agencies; for personal, business, or other purposes, except in special cases prescribed by the Government.

2. Specialized official communication assets:

2.1. Cryptographic products include cryptographic machines, technical and operational cryptographic hardware and software used to protect official information;

2.2. Other machinery and equipment directly used in the production of cryptographic products, scientific research, and development of cryptographic technology;

2.3. Cryptographic keys, cryptographic dictionaries, and cryptographic materials in the official communication sector;

2.4. National reserve assets specialized for the official communication sector.

3. Management of specialized official communication assets:

3.1. Specialized official communication assets must be used and managed by dedicated technical staff, have separate files, and follow the confidentiality protection regulations of the official communication sector;

3.2. When investing in or purchasing specialized official communication assets, they must ensure the procedures and formalities stipulated by law and must be appraised by authorized professional agencies regarding quality;

3.3. Imported specialized official communication assets shall be treated like imported goods in the defense and security sectors;

3.4. When upgrading or modernizing specialized official communication assets according to approved plans or projects, progress reports and product acceptance must be reported according to regulations;

3.5. Recovery or destruction of specialized official communication assets must be carried out according to confidentiality protection regulations of the official communication sector;

3.6. Reports on investment, procurement, equipping, and upgrading of specialized official communication assets must be attached with explanations when building the budget and reporting implementation into the annual state budget settlement;

3.7. Annual inventory results at zero hour on January 1st for specialized official communication assets must be attached with explanations when reporting the annual state budget settlement.

E- IMPLEMENTATION

1. This Circular takes effect from January 1, 2007;

2. Ministries, ministerial-level agencies, government agencies, central-level agencies, People's Committees at all levels shall be responsible for implementing this Circular.

Any difficulties or obstacles during implementation should be promptly reflected to the Ministry of Finance for consideration and resolution./.