Circular No. 111/2002/TT-BTC guides the implementation of Decision No. 127/2000/QÐ-TTg dated September 30, 2000 of the Prime Minister on piloting the allocation of staff quotas and operating funds for the State Treasury.

CIRCULAR

Guidelines for implementing Decision No. 127/2002/QĐ-TTg dated September 30, 2002of the Prime Minister

concerning the pilot implementation of personnel quota and operating budgetfor State Treasury

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Pursuant to Decision No. 127/2002/QĐ-TTg dated September 30, 2002 of the Prime Minister on the pilot implementation of personnel quota and operating budget for State Treasury.

The Ministry of Finance hereby provides guidelines for the pilot implementation of personnel quota and operating budget for State Treasury as follows:

A. General Provisions:

1. The pilot implementation of personnel quota and operating budget shall be applied to State Treasuries under the Ministry of Finance for three years, from January 1, 2002 to December 31, 2004.

2. The implementation of the pilot program of personnel quota and operating budget for State Treasury must ensure the objectives and requirements stipulated in Article 2 of Decision No. 127/2002/QĐ-TTg dated September 30, 2002 of the Prime Minister, specifically as follows:

- Reforming the operational mechanism, labor management mechanism, and management and utilization of operating funds of State Treasury to enhance efficiency and quality of work within the State Treasury system.

- Promoting scientific organization and arrangement of tasks, streamlined organizational structure, enhancing effectiveness and efficacy of the machinery in managing state treasury, serving customers, and financial transactions of the state.

- Adhering to regulations on revenue collection systems while practicing thrift and combating waste in expenditures to create conditions for investment development, increase income, improve the living standards of civil servants, and link material responsibility with the interests of State Treasury staff in their professional activities.

- Implementing transparency and democracy in accordance with the provisions of the law.

3. The total amount of the operating budget allocated to State Treasury shall be decided by the Minister of Finance, including the fixed budget allocation from the state budget of 210 billion VND per year. State Treasury may utilize legitimate revenues to supplement its operating expenses.

4. Based on the allocated budget, State Treasury shall proactively establish expenditure standards and systems suitable for its specific operations and financial resources, applying state-prescribed standards and systems.

State Treasury has the responsibility to manage and use assets and saved funds efficiently in accordance with state regulations and those of the Ministry of Finance.

The state budget allocated for the quota, revenues, and surplus balances of various funds at State Treasury at the end of the year that remain unspent shall be carried over to the following year for continued use.

5. Based on the characteristics, nature of operations, and management capabilities of each unit within the State Treasury system, within the scope of the assigned personnel quota and budget, the General Director of State Treasury shall decide on the objects, scope, content, and methods of quota allocation within the State Treasury system.

B. Specific Provisions

I. On Personnel Quota:

1. The personnel quota allocated to State Treasury shall be implemented according to the decision of the Minister of Finance and included in the total personnel quota assigned to the Ministry of Finance.

2. Within the scope of the assigned personnel quota, State Treasury shall proactively organize and arrange the management structure, reduce personnel quotas, recruit, manage, and utilize civil servants in accordance with the Civil Servant Law, current guiding documents of the state, and the Ministry of Finance.

3. The personnel quota allocated to State Treasury shall be reviewed and adjusted in the following cases:

- Establishing or merging State Treasury units according to the decision of the competent authority.

- State Treasury's functions and responsibilities being supplemented according to the decision of the Government or the Prime Minister.

When there is a need to adjust the personnel quota, the General Director of State Treasury shall have the responsibility to report in writing to the Minister of Finance for review and handling within the authority or coordinate with the Ministry of Home Affairs to request the Prime Minister to adjust the allocated personnel quota appropriately.

4. During the pilot implementation period of personnel quota, apart from the personnel quota assigned by the Ministry of Finance, based on functions, responsibilities, job needs, and financial resources, State Treasury has the right to enter into labor contracts and implement regulations for employees in accordance with the Labor Code.

II. On Operating Budget:

1. Sources of operating budget for State Treasury include:

1.1. State budget allocation, including:

- Fixed quota allocation from the state budget of 210 billion VND per year for the implementation of the quota.

- State budget allocation for expenditures not subject to quota.

1.2. Operating budget from the difference between income and expenditure arising during the operation of State Treasury, including:

- Income generated from payment processing, money transfer; safekeeping, inspection, storage of gold, silver, precious stones, foreign currency, certificates of value...

- Income from interest and fees on deposits minus fees payable at the State Bank and commercial banks.

- Income from temporary idle funds temporarily lent out by State Treasury according to the regulations of the Ministry of Finance.

1.3. Operating budget support and sponsorship from domestic and foreign organizations and individuals for units within the State Treasury system.

1.4. Other revenues: Serving seals for customers, service fees for collecting electricity and water payments...

State Treasury is responsible for collecting the above revenues in accordance with the regulations of competent authorities and the Ministry of Finance, and may use these revenues for the purposes specified in Points 2 and 4 of Part II below.

2. Contents of the quota expenditure include:

2.1. Expenditure for human resources: Salary; wages; allowances; bonuses; collective welfare; contributions (including: Social insurance, health insurance, trade union fees); other individual payments.

2.2. Expenditure for administrative machinery: Public service payment; office supplies; information, propaganda, communication; conferences; travel expenses; rental costs; maintenance and repair of fixed assets.

2.3. Professional business expenditure:

- Specialized materials and goods; safety equipment for treasuries, inspection and counting equipment; various seals; uniforms, protective gear.

- Professional training.

- Expenses for business operations such as inventory rotation, transfer, and security of money, valuable certificates, and precious assets.

- Other business operation expenses.

2.4. Revenue and expenditure balances.

2.5. Major repairs of fixed assets, procurement of assets and equipment to serve professional activities.

2.6. Expenses for the application and development of information technology according to the program and plan of the State Treasury and support for information technology projects related to the State Treasury under the Ministry of Finance.

2.7. Training and professional development expenses for civil servants according to the plan of the State Treasury and joint training and development expenses for State Treasury staff according to the overall plan of the Ministry of Finance.

For the above items of allocated expenditures, based on current national standards, norms, and expenditure regulations, the State Treasury may proactively establish internal standards, norms, and expenditure regulations that are suitable for its specific operations and permitted financial resources.

3. Items not subject to allocated expenditures include:

- Centralized investment construction costs according to current regulations on investment management and construction.

- Modernization of computerization according to the government's program.

- Costs for implementing state-level scientific research topics, ministry-level programs, and national target programs.

- Training and professional development costs for civil servants according to the state's plan.

- Expenses for streamlining staff according to the state-prescribed system.

- Non-recurring business operation expenses (issuance of treasury bills, bonds, and bills, other non-recurring business operation expenses).

- Other expenses as prescribed by law.

For the above items of expenditures not subject to allocated operating funds, the State Treasury shall be responsible for implementing them according to current national standards, norms, and regulations.

4. Allocation and utilization of increased revenue and cost savings:

The increased revenue and cost savings from sources specified in point 1 of Part II above (excluding the state budget funds allocated for non-allocated expenditures), the State Treasury may use for the following purposes:

- Supplementing expenses for strengthening material infrastructure and equipment to serve professional tasks, improving working conditions.

- Supplementing expenses for the application and development of information technology, training of civil servants, expanding and enhancing the capacity of the industry.

- Increasing the minimum wage level for State Treasury civil servants up to a maximum of 2.5 times the general minimum wage set by the state.

- Providing additional allowances outside the general policy for those voluntarily retiring during the process of labor restructuring (if applicable).

- Establishing a Fund for Income Stability to ensure stable income for civil servants in the industry and support them in particularly difficult situations.

- Establishing a Fund for Industry Development to allocate for the following purposes:

+ Strengthening the material infrastructure of the industry: constructing warehouses, transaction sites, office premises, upgrading work equipment and facilities to improve service quality for customers and working conditions for civil servants.

+ Developing information technology within the industry.

+ Training to enhance the professional management skills of civil servants.

+ Compensating losses of money and assets due to force majeure events such as natural disasters, fires, risks during transportation...

+ Coordinating with units and individuals inside and outside the industry to contribute to completing professional tasks, consolidating and developing the industry.

+ Supporting activities for organizational bodies within the agency.

- Establishing a Reward Fund and Welfare Fund to allocate for reward and incentive work and welfare expenses of the industry. The maximum contribution rate for both the Reward Fund and the Welfare Fund shall not exceed three months' salary.

5. Adjustment of allocated budget:

- During the period of allocated budget implementation, when the state changes policies and regulations, the State Treasury will cover any additional expenses according to new policies and regulations.

- The allocated budget for the State Treasury from the state budget will be reviewed and adjusted if the State Treasury's financial resources are insufficient to maintain the minimum operational level of the organization due to the following reasons:

+ Reduced revenue due to changes in collection policies and regulations (reduced collection rates, exemptions...), as decided by authorized agencies.

+ Increased expenses due to: additional tasks assigned by the state; establishment of new State Treasury units; recovery of severe damage caused by natural disasters; changes in state budget expenditure norms, policies, and regulations.

When determining that the State Treasury's financial resources are insufficient to maintain the minimum operational level of the organization (including after utilizing surplus funds in the reserves, if any), the General Director of the State Treasury has the responsibility to promptly report in writing to the Minister of Finance for review and submission to the Prime Minister for appropriate adjustment to ensure the State Treasury can fulfill its assigned tasks.

III. Budget Preparation, Disbursement, Settlement, and Reporting System:

Budget Preparation:

The State Treasury prepares the annual state budget revenue and expenditure forecast according to regulations and guidelines issued by the Ministry of Finance.

- For revenue and expenditure items under the allocated budget, the State Treasury only needs to prepare a budget for the first year of allocation and when there is a need to adjust the allocated budget.

- For items not using allocated funds: the State Treasury implements according to current regulations.

2. Allocation of budget projections:

Annually, based on available funding, assigned expenditure tasks, and Ministry of Finance guidelines, the State Treasury organizes the allocation and assignment of revenue and expenditure budgets to subordinate units. If necessary, the central State Treasury may retain a portion of the budget as a reserve to supplement subordinate units in case of urgent tasks assigned.

3. Disbursement, Accounting, Settlement, and Reporting System:

3.1. Budget allocation:

- For allocated state budget funds: the Ministry of Finance disburses funds to the State Treasury according to current regulations into item 134 (other expenses) of the state budget schedule.

- Supplementary funds from revenue sources: the State Treasury proactively disburses funds to subordinate units according to approved expenditure content and forecasts.

- For contents not using allocated funds: To be provided under the budget items of the State budget according to the usage content and the assigned budget estimate.

3.2. Accounting and settlement of funds:

The State Treasury is responsible for recording, accounting, and settling the revenue and expenditure of the operational funds assigned in accordance with the provisions of the State Budget Law, the administrative and public service accounting regulations, and other current regulatory documents applicable to units implementing operational fund allocation.

3.3. Reporting system:

The State Treasury is responsible for fully complying with reporting systems as currently prescribed by the State and the Ministry of Finance in organizing and implementing the allocation system within the State Treasury system.

Annually, the State Treasury and its subordinate units must implement financial transparency in accordance with current regulations.

C. Implementation Organization

1. This Circular takes effect from January 1, 2002. Previous guiding documents conflicting with this Circular are abolished.

2. The General Director of the State Treasury is responsible for guiding and organizing the implementation of pilot allocation of staffing and operational funds throughout the State Treasury sector in accordance with Decision No. 127/2002/QĐ-TTg dated September 30, 2002 of the Prime Minister, current regulations, and guidance provided in this Circular.

3. Annually, the Ministry of Finance will organize mid-term reviews and evaluations of the work of organizing and implementing the pilot allocation of staffing and operational funds of the State Treasury.

During the implementation process, if there are difficulties or obstacles, units are requested to report to the Ministry of Finance for timely research and resolution./.