Circular No. 112 TC/HCSN REGULATES THE FINANCIAL MANAGEMENT SYSTEM FOR THE INVESTMENT DEVELOPMENT GENERAL DEPARTMENT

CIRCULAR

Regulations on Financial Management for

Investment Development General Department

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Implementing Decree No. 187/CP dated December 10, 1994 of the Government on tasks, powers, and organizational structure of the Investment Development General Department under the Ministry of Finance; Decision No. 654/TTg dated November 8, 1994 of the Prime Minister on the implementation of the task of allocating and providing preferential loans for investment development capital at the Ministry of Finance; Decision No. 1198 TC/QĐ/TCCB dated December 10, 1994 of the Minister of Finance on the organization and operation of the Investment Development Bureau in provinces and centrally governed cities. The Ministry of Finance stipulates the financial management regulations for the Investment Development General Department as follows:

I. GENERAL PROVISIONS:

1. The Investment Development General Department and its subordinate units are state financial management organizations for investment development, having legal personality, their own seals, and being able to open accounts (limit and deposit accounts) at the State Treasury (from January 1, 1995). The operating budget for the system of the Investment Development General Department is provided by the State Budget.

2. The Investment Development General Department is a budget unit (level II) under the Ministry of Finance, the Investment Development Bureau in provinces and centrally governed cities is a budget unit (level III) under the Investment Development General Department, and the Investment Development Sub-bureau is a budget unit (level IV) under the Investment Development Bureau.

3. The Investment Development General Department and its subordinate units must comply with financial regulations, Accounting and Statistics Ordinances, the Charter of State Accounting Organization, and the provisions in this Circular.

II. SPECIFIC PROVISIONS

1. The expenditure content for the administrative operations of the Investment Development General Department includes:

a. Expenditure for personnel: salaries, allowances, contributions to social insurance, health insurance, trade union fees... and other welfare expenditures (if any).

b. Expenditure for work: official expenses, travel expenses, conference expenses, and other administrative expenses.

c. Operational expenditure to perform tasks according to the functions and responsibilities of the Investment Development General Department as prescribed, such as: stamps, payment vouchers, telegrams, telexes, costs for inspecting and appraising investment programs and projects...

d. Expenditure for purchasing equipment, working tools, and regular maintenance of assets and workplaces according to quarterly and annual budgets approved for each unit.

e. Other expenditures as prescribed and approved.

2. Budget preparation, inspection, and settlement:

a. Budget Preparation:

- Annually, the Investment Development Bureaus must prepare revenue and expenditure budgets and submit them to the Investment Development General Department for review.

The Investment Development General Department has the responsibility to consolidate the revenue and expenditure budgets of the entire system and submit them to the Ministry of Finance for review.

The Ministry of Finance is responsible for submitting these consolidated budgets to the Government and the National Assembly for approval within the annual state budget plan.

- Basis for budget preparation:

Based on the financial standards, norms, and guidelines for preparing the state budget issued by the Ministry of Finance.

Based on the approved staffing quota and tasks assigned by the State.

b. Inspection and settlement:

- The Investment Development General Department and its subordinate units have the responsibility to strictly monitor the use of funds to ensure that expenditures are made for their intended purposes, in accordance with regulations, and are economical.

Quarterly and annually, the Investment Development General Department and its subordinate units must prepare and submit settlement reports in accordance with the content, forms, and timeframes specified in the accounting regulations issued by the Ministry of Finance.

- The steps for inspection and approval of settlements:

The Investment Development General Department is responsible for inspecting and approving the settlement reports of the Investment Development Bureaus before consolidating the settlement report of the entire system.

The Ministry of Finance is responsible for inspecting, auditing, and approving the settlement report of the Investment Development General Department.

c. Expenditures for the activities of the Investment Development General Department must be recorded in item 01 of class 14 in chapter 15 of the current state budget manual.

3. On the distribution and use of income generated from transactions and payments conducted by the Investment Development General Department.

a. Units under the Investment Development General Department have income generated from transaction and payment activities as follows:

- Income arising from payment, capital transfer...

- Price difference income from serving customers with stamps.

- Income from organizing activities and serving investment development requirements...

b. Costs arising from the above transaction and payment activities include:

- Fees paid to the Post Office and State Treasury for payment processing, money transfer, information services...

- Costs for related industries involved in implementing preferential credit activities.

- Costs for loan disbursement and debt recovery tasks. Other service costs (if any).

Subordinate units of the Investment Development General Department must prepare comprehensive revenue and expenditure budgets, maintain detailed records, and report quarterly and annual revenue and expenditure settlements to the Investment Development General Department for review and approval by the Ministry of Finance.

c. The surplus income exceeding expenditure from the above activities generated by subordinate units of the Investment Development General Department shall be distributed as follows:

- 65% to supplement the operating funds of units serving transaction and payment credit issuance and procurement of working tools for units under the General Department.

- 35% to be submitted to the General Department for rewarding agencies, units, and individuals who have achieved results in performing the aforementioned tasks (the maximum deduction not exceeding three months' basic salary). The remainder will be supplemented to the operational funds of the General Department.

For the fee income when implementing preferential credit issuance, the Ministry of Finance will provide specific guidance after receiving the Government's decision.

III. IMPLEMENTATION PROVISIONS

1. This Circular takes effect from January 1, 1995.

2. The Director of the Investment Development General Department is responsible for guiding subordinate units to implement the provisions of this Circular./.