Circular No. 109 TC/DTPT on Opening, Using Accounts and Payment through the State Treasury System for State Development Investment Funds

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 109 TC/ĐTPT	Hanoi, December 10, 1994

 

CIRCULAR

REGARDING THE OPENING, USE OF ACCOUNTS AND PAYMENTS IN THE SYSTEM OF THE STATE CAPITAL INVESTMENT DEVELOPMENT GENERAL DEPARTMENT UNDER THE MINISTRY OF FINANCE

To organize and implement effectively the management, allocation, and payment of state development investment capital and preferential credit capital through the State Capital Investment Development General Department (now abbreviated as SCID); the Ministry of Finance temporarily stipulates the procedures for opening, using accounts, and making payments through the Investment Development System as follows:

A- OPENING AND USING ACCOUNTS:

I- OBJECTS AND SCOPE OF ACCOUNT OPENING

1. Units under TCĐTPT:

1.1. The SCID shall open deposit accounts in Vietnamese dong and foreign currency at the Central Treasury. The Investment Development Bureau shall open current accounts at the Treasury on its territory to make payments for allocations and loans from the Central Budget.

1.2. The Investment Development Bureau and the Investment Development Sub-bureau shall open deposit accounts in Vietnamese dong and foreign currency at local Treasuries to allocate and lend preferential investment funds from the Local Budget.

1.3. Each unit under the SCID may only open an account at one Treasury within the same territory. In case of wishing to open an account at another Treasury outside the territory, approval in writing from the higher-level Treasury must be obtained.

1.4. The balance on deposit accounts opened by units under TCĐTPT at State Treasuries does not earn interest.

2. Investor:

2.1. Project investors and economic organizations may open accounts at units under the Investment Development General Department that manage and allocate capital for projects or works.

2.2. The balance on deposit accounts opened by project investors and economic organizations at units under TCĐTPT does not earn interest.

II- PROCEDURES FOR OPENING ACCOUNTS:

1- Units under TCĐTPT shall register to open deposit accounts in accordance with current regulations.

2- Project investors must complete the procedures to open accounts at units under TCĐTPT where they receive capital. Units under TCĐTPT will not provide capital to investors without transaction accounts at units under TCĐTPT.

The procedures for registering to open accounts at units under TCĐTPT include:

- Application for account opening (Annex No. 1)

- Notification of plans for capital investment and lists of capital investment projects or project lists approved by competent authorities.

- Documents and papers proving the legal status of the unit:

Units applying to open an account must submit to the Investment Development Bureau where the transaction takes place a copy of the establishment decision of the unit signed by the competent authority and a copy of the appointment decision for the head and chief accountant of the unit or certification of the head and chief accountant of the unit issued by the direct superior authority. All copies must be certified by a notarized public document.

- A sample registration form of the unit's seal and signature of the account holder and chief accountant. The unit opening the account must prepare two copies of the seal and signature registration forms (according to Model Appendix No. 2). The seal must be stamped clearly with red ink in the designated place; it should not be blurred or faint. The signature of the account holder and those authorized to sign on behalf of the account holder on settlement documents with units under the SCID, and each unit may only register three people to sign the first signature (the primary signature). The signature of the chief accountant and those authorized to sign on behalf of the chief accountant (the second signature). Each unit may register three people to sign the second signature (chief accountant and two authorized persons).

When changing the person signing the first signature or the second signature or changing the unit's seal, a new registration form for the seal and signatures must be established to replace the old ones, clearly indicating the effective date of the new ones.

The registered stamp and signature samples with units under TCĐTPT become valid from the date of registration when the account is opened or when replacing other registration forms.

III- USING ACCOUNTS:

1. Deposit accounts of units under TCĐTPT:

1.1. May be used to receive, deposit, and make payments for capital and funds allocated and preferential credit for state development investments in Vietnamese dong or foreign currency.

1.2. Has the right to use the amount within the balance of the deposit account at the Treasury and according to requirements, can perform transfers and cash withdrawals within the registered plan, in accordance with the regulations on non-cash payment systems of the State.

1.3. Any payment exceeding the balance of the deposit account or the deposited money at the Treasury will incur a fine of 30% (Thirty percent) of the amount exceeding the balance (According to Decision No. 22/QD-NH1 dated February 21, 1994 of the Governor of the State Bank of Vietnam promulgating the rules for non-cash payments). At the same time, there will also be a penalty for late payment at the highest overdue interest rate set by the bank serving the unit under the SCID that opened the account.

When using the account, the regulations and instructions of the State Treasury during the payment process, methods of depositing and withdrawing money from the State Treasury must be followed.

2. Settlement accounts of units under TCĐTPT for central government capital:

- Current accounts for capital belonging to the State Budget can only be opened at the Treasury to settle allocations and loans for development investments from the Central Budget. The SCID does not have to transfer capital directly to the Investment Development Bureaus to allocate and lend projects under the Central Budget.

Provincial and Municipal Treasuries shall base their payments and disbursements for projects funded by the Central Budget on the allocation and loan limits announced by the Central Treasury, according to the documents requested by the Investment Development Bureau.

Daily, the Central State Treasury summarizes the transactions to report the debt to TCĐTPT within the balance of TCĐTPT's deposit account.

3. Deposit accounts of project investors:

- Project sponsors may open and use deposit accounts at investment development agencies to receive and settle amounts related to construction management costs, land clearance costs, investment preparation costs... directly implemented by the sponsor.

||| Receive and process various sources of raised capital, own capital of the investor for development investment, receive, transfer, and process temporary collected funds awaiting submission to the State budget, and temporary collected funds awaiting payment.

- Project sponsors are responsible for complying with the regulations and guidelines of the State Capital Investment Development General Department regarding the opening and use of accounts, strictly and fully implementing the regulations on the establishment, circulation, and storage of settlement documents through investment development agencies.

||| 4. Units under the General Department of Investment Development in managing accounts:

- When sponsors come to open an account, the chief accountant (or accounting staff) of units under the SCID must directly receive the application, examine and verify the legality of the documents, record the account number, start date of operation on the account opening registration form, sample signature and seal of the sponsor, sign the account opening registration form, and submit all documents for the head to approve. Units under the SCID are responsible for processing the opening of deposit accounts for sponsors on the same working day.

||| After accepting the account opening, units under the General Department of Investment Development notify the account number and start date of operation to the customer for implementation.

- Units under the SCID are responsible for managing, inspecting, creating favorable conditions for sponsors to safely and quickly complete payment transactions, ensuring the provision of full settlement documents to sponsors, and securely storing all types of settlement documents within their jurisdiction. If loss or misplacement causes serious consequences, they will bear material losses and be prosecuted under the law.

||| IV- OTHER REGULATIONS:

||| 1. Closing accounts:

Investor's accounts opened at units under the General Department of Investment Development can only be closed when:

||| The account holder requests it,

||| The nature of the investor's activities changes,

||| The investor unit is dissolved or merged with another unit, or transferred to another locality,

||| According to the request or Decision of the competent authority.

||| 2. Temporarily suspending account operations:

Investor's accounts opened at units under the General Department of Investment Development temporarily stop operating in the following cases:

||| Violating financial discipline, payment discipline... as stipulated by the State,

||| According to the Decision of the competent authority.

3. Before finalizing the account closure, the investment development unit and the sponsor must reconcile and confirm the account figures up to the reconciliation date, prepare a report. The handling and transferring of the account balance to another location shall be carried out according to the sponsor's request or the decision of the competent authority.

Units under the General Department of Investment Development must ensure the safety and confidentiality of data generated on the investor's account. The provision of data on the account shall be carried out in accordance with current regulations of the State.

B. PAYMENT SYSTEM:

I- RESPONSIBILITIES OF THE SUPERIOR AUTHORITY TOWARDS INVESTORS:

1. Investors who are served by payment through units under the General Department of Investment Development must meet the following conditions:

a. Having an account opened at units under the General Department of Investment Development, including: Limitation issuance account, loan limit account, deposit account.

b. If it is a deposit account, it must have a balance (with money) to ensure liquidity and can only be used within the amount available in the deposit account for payment. Any situation where there is insufficient money for payment, causing obstacles in the payment process, is the responsibility of the account holder and must be penalized according to current regulations.

2. Investors have the right to choose and agree to apply payment methods through the General Department of Investment Development system that are suitable to their characteristics, supply relationships, and comply with the principles of payment regulations.

3. All payment vouchers processed through units under the General Department of Investment Development must be established in accordance with current regulations of the General Department of Investment Development.

II- RESPONSIBILITIES OF UNITS UNDER THE GENERAL DEPARTMENT OF INVESTMENT DEVELOPMENT:

1. Guide investors and investment managers to thoroughly understand the regulations, contents, procedures, and necessary tasks for each payment method to select and implement.

2. Provide (sell) promptly and fully to customers all necessary forms of documents according to the prescribed regime.

3. Perform the inspection and supervision of the account holder's ability to pay, regularly inform and reconcile with the account holder the balances of the limit accounts and deposit accounts, and promptly handle any violations.

4. Upon receiving payment vouchers submitted by customers, control the legality and validity of the elements on the vouchers. Have the right to refuse payments for vouchers that are not in accordance with regulations and shall not be held responsible for consequences caused by customer errors.

5. Fully, timely, and accurately perform payment tasks and circulation of vouchers. Organize well the payment work within the organization and throughout the system to serve customers conveniently, promptly, and safely. If causing delays, mistakes, loss, or damage leading to property losses of the State and customers, appropriate disciplinary measures or criminal liability shall be pursued according to the law.

III- REGULATIONS ON SOME DOCUMENTS IN THE PAYMENT SYSTEM OF THE GENERAL DEPARTMENT OF INVESTMENT DEVELOPMENT:

1. For payment vouchers for expenditures from the investor's deposit account, the payment voucher is a request for withdrawal from the account (attached form), which serves both as a bookkeeping voucher and as an original voucher for the accounting units under the Investment and Construction Department.

2. For applications for issuance, payment of credit funds, and use of construction management deposits, the original document for each payment is specified as follows:

- The construction project price list requesting payment for quantities (installation, equipment, other basic design expenses) or the request for transferring funds to purchase equipment and materials. These forms must necessarily have the approval signature of the units under the Investment and Construction Department.

- In some cases, a payment voucher or a request for transferring funds issued by the investor has been approved for disbursement or loan but requires multiple payments due to reasons such as the unit having to transfer funds multiple times, paying to multiple selling units, insufficient disbursement limit... then the original voucher should be processed along with the payment voucher as follows: based on the approved payment voucher, the disbursing officer (or credit officer) must issue a payment voucher (attached form) for each payment amount. This payment voucher also needs to be approved by the head of the unit under the Investment and Construction Department.

IV- FORMS AND PAYMENT RELATIONSHIPS:

- Units under the State Capital Investment Corporation shall apply the following formats:

- Payment checks (transfer check, guarantee check, fixed amount checkbook)

- Mandate debit (money transfer)

- Mandate credit

- Letter of Credit

1. Payment by check (attached check model):

- The issuance and use of checks shall be carried out in accordance with Decision No. 22/QD-NH1 dated April 22, 1994 of the Governor of the State Bank of Vietnam.

+ The investor issues a payment check to the beneficiary unit. Based on the approved disbursement and loan capital, proceed to write the payment check for the customer. When writing the check, note: write correctly and fully all elements according to each type of check, do not erase, alter, overlap, smudge, write with non-fading ink, do not write with red ink, capitalize the first letter at the beginning of the line, and record the date of issuance in full characters.

+ After completing the check, the accountant submits it to the chief accountant and the head of the unit for signing and stamping according to regulations on the check, then take the check together with related vouchers to the unit under the General Department of Investment and Construction to process the payment.

+ The unit under the General Department of Investment and Construction checks and reconciles with the approved disbursement and loan capital or the balance of the investor's deposit account. If sufficient and correct, sign and stamp on the check as required, then return it to the investor so that the investor can pay to the beneficiary.

Note: Each time the investor issues a check, the accountant of the unit under the State Capital Investment Corporation must record a detailed list attached to the payment request for tracking and payment purposes.

2. Payment by mandate debit (attached UNC model):

- A mandate debit is a payment request form issued by the investor according to a pre-printed model of the State Capital Investment Corporation, requesting the unit under the State Capital Investment Corporation where the account is opened to deduct from its own account to pay to the beneficiary.

- UNC is issued to pay for goods, services, capital transfers... of the investor.

- The investor may request the units under the General Department of Investment and Construction to make payments through UNC via mail, telegraph, or bank transfer check. The accountants of the units under the General Department of Investment and Construction proceed to process the payment for the investor.

- When issuing an UNC, the investor prepares six copies of the UNC to submit to the unit under the General Department of Investment and Construction where the account is opened for payment to the beneficiary. On the UNC, the investor must fill in all elements accurately, match the content between all copies of the UNC, and sign and stamp on all copies of the UNC.

- Upon receiving the UNC submitted by the account holder, the unit under the General Department of Investment and Construction checks the procedures for issuing the UNC, the balance of the deposit account or the disbursement and loan capital of the account holder before processing the payment. If there are errors in issuing the UNC such as incorrect entries, incomplete elements, missing copies, mismatched content between copies, or missing signatures or stamps, or if the balance of the deposit account, loan, or disbursement capital is insufficient for payment, return the UNC to the account holder.

- If the UNC meets the conditions for payment, the investment unit records the date, debit and credit account number on two copies of the UNC (one copy of the UNC serves as the debit entry voucher for the account holder, one copy reports the debit to the account holder), signs on all copies of the UNC, stamps them, and submits the remaining four copies to the State Treasury Bank where the account is opened for the State Treasury Bank to process payment to the beneficiary.

3. Payment by transfer check:

- To make a payment through a bank transfer check, the investor must prepare five copies of the UNC (as described above) and submit them to the investment unit where the account is opened. The payment voucher must clearly state: name; ID number, date of issue, place of issue of the ID card of the person holding the bank transfer check, details of the payment made by the bank transfer check.

- The unit under the State Capital Investment Corporation verifies the UNC, if found correct and complete, signs and stamps on the designated place, retains two copies, and gives three copies to the investor to take to the Treasury Office to process the issuance of the transfer check.

- The unit under the State Capital Investment Corporation does not handle internal payments, therefore, does not issue transfer checks.

4. Payment by mandate credit:

- A collection mandate (UNT) is applied for payment in cases where the investor requests this method after signing an economic contract between the investor and the contractor, supplier, and must have a written request from the investor.

- Based on the payment voucher, delivery invoice, supply of goods and services with the confirmation signature of the payer and the economic contract, and the investor's request, the unit under the General Department of Investment and Construction prepares four copies of the collection mandate according to the pre-printed form of the State Treasury Bank, attached with invoices and vouchers, and sends them to the State Treasury Bank where the account is opened or directly to the Bank, State Treasury Bank of the payer to request collection. All copies of the UNT must be filled in with all required elements and signed and stamped by the unit under the General Department of Investment and Construction.

- The unit under the General Department of Investment and Construction is responsible for monitoring the payment of the collection mandates sent out, coordinating with the State Treasury Bank, Bank to urge the payer to promptly settle payments to the investor.

5. Payment by payment banknote and cash:

- The investor can obtain payment banknotes and cash for use during the payment process.

- When there is a need to use banknotes and cash, the investor writes a cash withdrawal check (or banknote) along with a letter of introduction to withdraw cash and submit it to the unit under the State Capital Investment Corporation where the account is opened.

- The unit under the State Capital Investment Corporation verifies the procedure and account balance, if correct and complete, signs and stamps on the designated place on the check, and hands over to the investor to go to the Treasury Office to withdraw cash or banknotes for use.

V- PROCEDURE FOR ALLOCATION AND PAYMENT OF DISBURSED CAPITAL AND LOAN FUNDS FOR PREFERRED INVESTMENT.

1. Within the State Capital Investment Corporation system

1.1. For state-owned investment capital

- The TCĐTPT distributes capital to subordinate units through capital allocation limits (after receiving confirmation from KBNN). This is the maximum allowable amount for disbursement or lending by each development investment unit.

- The capital allocation limit (disbursement or lending capital) is established by the TCĐTPT in five copies: one copy for retention, two copies sent to the KBNN for joint confirmation, and one copy sent to the Development Investment Department.

- Upon receiving the disbursement limit notification from the General Department of Investment and Construction, the Investment Development Department records the limit into the account outside the balance sheet. When disbursing (or lending), record the limit account.

- Quarterly and annually, the Development Investment Departments and Bureaus are responsible for settling accounts with the TCĐTPT regarding the amount of capital disbursed (or lent).

1.2. For state budget investment funds:

At the Investment Development Department, after receiving disbursement and loan funds transferred from the State Budget, distribute them to subordinate Investment Development Departments through deposit accounts at the State Treasury Bank. The disbursement and payment are carried out within the deposit limits of the Department and subordinate Investment Development Departments at the State Treasury Bank.

2. Between units under the TCĐTPT and the State Budget and KBNN:

- The State Budget (central and local) transfers preferential investment credit capital to units under the TCĐTPT via payment orders through the KBNN.

- Upon receipt of the payment order from the financial authority, the KBNN is responsible for crediting the deposit account and notifying the unit under the TCĐTPT.

- On a daily basis, the State Treasury has the responsibility to report debts to the Investment Development Unit regarding amounts that have been disbursed (or lent) based on the payment voucher or other payment documents transferred from lower-level treasuries. For local budget funds, the treasury shall report debts according to each payment transaction and reduce the deposit account balance of the Investment Development Unit accordingly.

- Periodically, monthly, quarterly, and annually, the State Treasury and units under the Investment Development Unit have the responsibility to check and reconcile data on deposit accounts and other settlement accounts. In case of discrepancies, they must be promptly checked and adjusted.

- Monthly, quarterly, and annually, units under the TCĐTPT are responsible for reporting and settling accounts with the State Budget regarding the amount of capital disbursed.

3. Between units under the TCĐTPT and higher-level project sponsors and project sponsors:

- After receiving notifications of disbursement limits and lending limits, the superior agency of the project sponsor proceeds to issue a notice distributing the disbursement limit to the sponsors while sending it to the corresponding unit under the Investment Development Unit. The unit under the Investment Development Unit compiles, categorizes by region, and sends it to subordinate units for monitoring, management, and disbursement of funds and lending of funds.

- Management, auditing, evaluation, capital disbursement, and lending are carried out in accordance with the current system for managing capital disbursement for construction projects.

VI- IMPLEMENTATION:

Units under the Investment Development Unit and treasuries at all levels are responsible for organizing guidance on implementation, accounting records, and economic information related to the management, disbursement, and lending of state development investment funds.

This Circular takes effect from January 1, 1995.

During implementation, if there are difficulties, they should be reported promptly to the Ministry of Finance for appropriate amendments and supplements./.

 

Place of Receipt: - Prime Minister and Deputy Prime Ministers (for reporting) - Government Office - Ministries, ministerial-level agencies - Provincial Departments of Finance and Planning - Provincial Treasuries - General Departments, Bureaus, Divisions, Institutes, and Schools directly under the Ministry of Finance - To be filed: VT, Investment Development Unit

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT DEPUTY MINISTER Nguyen Sinh Hung

 

MODEL APPLICATION FOR OPENING AN ACCOUNT

Front Side

APPLICATION FOR OPENING AN ACCOUNT

Respectfully submitted to:...

Name of the entity opening the account:...

Address:...telephone number...

Request to open an account...

THE EVIDENCE AND MEANS OF VIOLATION OF ADMINISTRATIVE LAW OF (3) ARE CONFISCATED:

For transactions concerning...

We hereby agree to comply fully and correctly with the regulations and policies of the State and the relevant Investment Development Unit regarding the use of the aforementioned account.

 

Date...month...year... Account holder (Signature, stamp)

 

Back Side

Section for the Investment Development Unit.

Have reviewed necessary documents:Account number...

- Decision on establishment of the entity number...Date of commencement of operations...

day…

- Other documents...

Approved

 

…on…day…month…year… (Signature, stamp)

Date...month...year... Head of the unit (Signature, stamp)

 

MODEL APPLICATION FOR SEAL AND SIGNATURE SAMPLE

Front Side

APPLICATION FOR SEAL AND SIGNATURE SAMPLE

Unit:...

Address:…

Please introduce individuals whose names and signature samples appear on the reverse side who are authorized to sign on payment documents with the Investment Development Unit.

Investment Development UnitDate...month...year...

Received on...

 

Date...month...year... Head of the unit (Signature, stamp)

 

Back Side

Code number...

Signature	Full Name	(1)	(2)
first	Full Name	(1)	(2)
	Full Name	(1)	(2)
Signature	Full Name	(1)	(2)
second	Full Name	(1)	(2)
	Full Name	(1)	(2)

Effective from date...

SealSample of the superior supervising authority's seal

(1)(2)Date...month...year...

 

MODEL AUTHORIZATION TO PAY

AUTHORIZATION TO PAYNUMBER...

(For payment of development investment capital)

Bank transfer, mail transfer, telegraphic transfer

Issued on...

Paying unit...

Account number...STATE TREASURY

At...Provincial City Investment Development...DEBIT

Treasury Bank Account Number:

Receiving unit...CREDIT

Address...Treasury Bank Account Number:

Account number...At State Treasury or Bank...

Payment purpose...BANK CHARGE

...DEBIT

Amount-In words...Bank Charge Account Number:

- In figures...CREDIT

Bank Charge Account Number:

Paying unit...Investment Development...

Accountant Account holderRequest the State Treasury...to pay this authorization. Type of transaction...

Date...month...year...

AccountantHead of unitSignature code...

NHA records on date...NHB records on date...KBA records on date...KBB records on date...

AccountantControlAccountantControlAccountantControlAccountantControl

 

MODEL TRANSFER CHEQUE (FRONT)

STATE TREASURYSTATE TREASURY

TRANSFER CHEQUETRANSFER CHEQUE

(For payment of development investment capital)(For payment of development investment capital)

AB 0000000AB 0000000

Date...month...year...Date...month...year...

Amount...Issuing unit:...ACCOUNT NUMBER

...ACCOUNT NUMBER DEBIT

Name of cheque holder...At:...

ID number...Issued by Police Station...Cheque beneficiary...

Issued on...month...year...ACCOUNT NUMBER CREDIT

Cheque beneficiary...At...     

Account number...Amount (In words)...

At...In figures...

Finance Department,

Account holder

Chief Accountant

Account holder

 

MODEL TRANSFER CHEQUE (BACK)

 

- Cheques altered or erased are invalid for payment

- The unit must bear all losses caused by the loss of cheques.

 

Name of goods receiver...Cheque beneficiary

ID number...Issued by Police Station...issued

Date...month...year...

Payment purpose...

....................................................................

...................................................................

 

Signature of goods receiver

 

...Investment Development...State Treasury to pay this cheque

Request the State Treasury to pay this cheque

Date...month...year...Date...month...year...

Finance Department,

Chief Accountant

Finance Department,

Chief Accountant

 

MODEL CASH CHEQUE (FRONT)

STATE TREASURYSTATE TREASURY

CASH CHEQUECASH CHEQUE

(For payment of development investment capital)(For payment of development investment capital)

AB 0000000AB 0000000

Date...month...year...Date...month...year...

Amount (In figures)...Issuing unit...

In words...Account number...

Account debited

...At...

Issuing unit...Amount (In words)...

Account number...In figures

 

Name of cash recipient

Name of cash recipient

 

ID number...Issued by Police Station...ID number...Issued by Police Station...issued

Issued on...month...year...Issued on...month...year...

Finance Department,

Account holder

Chief Accountant

Account holder

 

MODEL CASH CHEQUE (BACK)

- Cheques altered or erased are invalid for payment.

- The unit must bear all losses caused by the loss of cheques.

 

Purpose of payment...Statistical code...Amount...

...Investment Development...Received full amount...

Request the State Treasury...Name...

Pay cash, bank note cheque this...Signature

Date...month...year...

StampAccountantHead of unit State Treasury...

Paid on...

 

Cashier

Finance Department,

Chief Accountant