Circular No. 118/2000/TT-BTC on the management of commune budgets and other financial activities at communes, wards, and towns

CIRCULAR

Provisions on management of commune budgets

and other financial activities at commune, ward, town level

 

Pursuant to the State Budget Law and the Law amending and supplementing somesubarticles of the State Budget Law;

Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government ondecentralization, preparation, implementation, and settlement of the statebudget, and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Governmentamending and supplementing some articles of Decree No. 87/CP dated December 19,1996 detailing the decentralization of management, preparation, implementation,and settlement of the state budget;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government onthe duties, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance guides the management of the commune budget and otherfinancial activities at commune, ward, town level as follows:

 

PART I

General Provisions

1. Financial activities at commune, ward, town level (hereinafter referred to ascommune) include the commune budget and other financial activities arising onthe commune territory.

The People's Committee of the commune organizes unified management of thecommune budget and other financial activities at commune level.

Management of the commune budget and other financial activities at communelevel must be carried out according to the principles of thrift, democracy, andtransparency.

2. The commune budget is a part of the state budget built, managed by thePeople's Committee of the commune; decided and supervised by the People'sCouncil of the commune.

2.1. Revenue of the commune budget includes revenue items allocated by the statebudget for commune use and contributions voluntarily collected from thepublic in accordance with the law to build infrastructure decided by thePeople's Council of the commune to be included in the commune budget formanagement.

The commune budget is divided into three types: revenues of 100%, revenuesdivided with higher-level budgets, and supplementary revenues from higher-levelbudgets.

2.2. Expenditure of the commune budget includes maintenance costs for stateauthorities, Party, and mass organizations at commune level, and expenditurefor economic and social development within the functions and tasks of thecommune-level administration.

2.3. The commune budget estimate should allocate a contingency reserve equal to3.5% of total expenditure to meet unexpected needs during the year.

2.4. The balance of the commune budget must ensure that expenditure does notexceed prescribed revenue. It is strictly prohibited to borrow or misappropriatefunds in any form to balance the commune budget, except in special casesprovided by law.

3. Other financial activities at commune level not included in the communebudget include: commune-specific public funds; financial resources forcommune-level public services; grassroots finance (mainly collected fromvoluntary contributions of the people under the principle of voluntarism, self-raised by the grassroots), and other financial activities.

4. All revenue and expenditure of the commune budget must be processed throughthe State Treasury and managed in accordance with the State Budget Law. Thecommune may open a deposit account at the State Treasury to deposit funds notincluded in the commune budget. The State Treasury will not supervise thesefunds.

For communes in mountainous areas and remote regions without conditions todirectly manage revenue and expenditure through the State Treasury, the People'sCommittee of the province (hereinafter referred to as the province) must preparea specific plan to submit to the Provincial People's Council for decision on anappropriate management mechanism and report to the Ministry of Finance.

5. Revenue and expenditure of the commune budget must be recorded inaccounting in accordance with the state budget classification applicable tocommunes and the commune budget accounting system; other financialrevenues and expenditures of the commune must be clearly recorded accordingto each type of activity.

6. The People's Committee of the commune organizes unified management of allfinancial activities related to communal public assets, state assets, and ownerlessassets (if entrusted to manage) in accordance with the prescribed regulations.

 

PART II

Sources of revenue, expenditure responsibilities, and management proceduresof the commune budget

I. Sources of revenue, expenditure tasks of the commune budget:

1. Sources of revenue of the commune budget:

1.1. Revenue items of one hundred percent (100%):

(1) Business license tax collected from individuals and households engaged inbusiness from tier 4 to tier 6, including the amount payable (not applicable towards);

(2) Fees and charges stipulated to be collected into the commune budget;

(3) Surplus revenue exceeding expenditure from communal revenue-generatingactivities;

(4) Revenue from bidding and seasonal leasing from the 5% communal public landfund and other communal productive assets;

(5) Contributions from organizations and individuals, including contributionsrequired by law, voluntary contributions for investment in infrastructuredecided by the Commune People's Council to be included in the commune budgetfor management (not applicable to wards for revenue from voluntarycontributions for infrastructure investment) and other voluntary contributions;

(6) Non-repayable aid from organizations and individuals outside the countrydirected to the commune budget;

(7) Carry-over revenue from the previous year's budget;

(8) Other revenue as prescribed by law.

1.2. Revenue items shared with the higher-level budget at a certain percentage (%):

(1) Agricultural land use tax (at least 20% retained by the commune);

(2) Land transfer tax (only applicable to communes and towns);

(3) House and land tax (only applicable to communes and towns);

(4) Land use right fee (only applicable to communes and towns);

(5) Resource tax;

(6) Stamp duty on houses and land;

(7) Special consumption tax on domestically produced goods such as paper, funeraryobjects, paper offerings, and services like nightclubs, massage parlors, karaokebars, golf courses, casinos, slot machines, and lottery tickets for horse racingand car racing.

(8) Other shared revenue items (if delegated by the province in accordance withsub-article 2, Article 30 of the State Budget Law).

The specific percentage (%) allocation of the above revenue sources to thecommune budget is determined by the People's Committee of the province andstabilized for 3 to 5 years, consistent with the local budget situation. To reducethe volume of work and encourage increased revenue, the same percentage canbe assigned to all communes in the same area.

1.3. Supplementary revenue from the higher-level budget:

(1) Supplementary balancing revenue is determined based on the differencebetween the allocated expenditure budget and the revenue budget fromallocated sources (100% revenue and revenue shared at a certain percentage).This supplementary amount is stabilized for 3 to 5 years, annually increasingby a certain percentage based on inflation rate, economic growth rate, andlocal budget capacity.

(2) Targeted supplementary revenue collection (if any) shall be carried out according to the budget capacity and general policy.

In addition to the aforementioned revenues, the commune authority shall not impose any other revenues contrary to the provisions of the law.

2. Expenditure tasks of the commune budget:

2.1. Recurrent expenditures for:

(1) Activities of commune state agencies including:

Living expenses at the current prescribed level;

Living expenses for People's Council representatives;

Other allowances as prescribed by the State;

Collective welfare, health care, and sanitation;

Administrative expenses;

Office activities such as rent, electricity, water, lighting, office supplies, postal fees, telephone, conference costs, hospitality expenses, and ceremonial events;

Regular maintenance and repair expenses for the headquarters and working equipment;

Other expenses.

(2) Living expenses and operating funds of the Communist Party of Vietnam's commune agency after deducting party fees collected according to the charter and other revenues (if any).

(3) Living expenses and operating funds of political and social organizations in the commune (Vietnam Fatherland Front, Ho Chi Minh Communist Youth Union, Vietnam Veterans Association, Vietnam Women's Union, Vietnam Farmers' Union) after deducting revenues collected according to their charters and other revenues (if any).

(4) Social insurance and health insurance contributions for commune cadres and other eligible individuals according to the current system.

(5) Civil defense and public security work:

Training of civil defense forces, allowances for mobilizing civil defense forces, and other expenses related to civil defense tasks as stipulated by the Ordinance on Civil Defense;

Registration for military service and sending young people to perform military service;

Propaganda, mobilization, and organization of movements to protect national security and public order within the commune;

Other expenses.

(6) Social work and cultural, information, sports activities managed by the commune:

Monthly allowances for retired commune cadres according to the current system (excluding monthly allowances for retired commune cadres and one-time retirement allowances for those who retired from January 1, 1998 onwards, which are paid by the social insurance organization); expenses for visiting and慰问退伍军人家庭；社会救济和其他社会工作费用；

文化、信息、体育活动，包括广播由乡组织。

(7)支持补习文化班，托儿所和幼儿园的补助金，包括对由乡或镇管理的幼儿园教师和保育员的补助（对于街道，由上级预算支付）；

(8)医疗卫生事业：

购置或补充专业设备以服务于诊疗。

预防疾病和其他医疗卫生事业。

特别是关于乡、镇干部的生活费和其他补贴：如果省将医疗卫生任务下放给县、区、市辖区、省辖市（以下统称县），则由县级预算支付；如果省没有将医疗卫生任务下放到县，则由省级预算支付。

（对于街道，医疗卫生事业由上级预算支付）

(9) Management, repair, and improvement of welfare facilities and infrastructure projects under the commune's management, such as schools, health stations, kindergartens, cultural houses, libraries, memorials, sports facilities, bridges, roads, public water supply and drainage systems, etc.; specifically, for towns, there is also the responsibility to manage, repair, and improve sidewalks, streets, street lighting, parks, greenery, etc. (for streets, these are funded by higher-level budgets).

(10) Support and encouragement for the development of economic undertakings, such as agricultural extension, fishery extension, forestry extension, and nurturing sources of commune budget revenue.

(11) Support for communal revenue-generating activities.

(12) Other expenditures as prescribed by law.

Within recurrent expenditures, items (6) (excluding social work), (7), (8), and (10) shall only be supported in nature.

2.2. Investment and Development Expenditures (applicable only to communes and towns), including:

Investment in construction of socio-economic infrastructure projects according to the provincial classification from the state budget and funds raised voluntarily from organizations and individuals for specific projects.

2.3. Based on national standards, the Provincial People's Committee shall specify the recurrent expenditure levels for each task in accordance with local conditions and budget capacity.

II. Procedures for managing commune budgets:

1. Preparation of Commune Budget Estimates:

1.1. Each year, based on guidance from the Provincial People's Committee and directives from the County People's Committee, the Commune People's Committee shall prepare the next year's budget estimate (according to the attached forms in this Circular) for approval by the Commune People's Council.

1.2. The basis for preparing the commune budget estimate includes: the classification of revenue sources and budget responsibilities; regulations on revenue collection; standards, norms, and criteria for budget expenditures; the commune's socio-economic development tasks; the commune budget estimate review results announced by the County People's Committee; the implementation status of the current year's commune budget estimate.

1.3. Procedures for preparing the commune budget estimate:

1.3.1. Departments or organizations under the Commune People's Committee shall prepare projected expenditure needs based on their assigned functions and duties and budget standards, norms, and criteria.

1.3.2. The Finance Department shall cooperate with the Tax Collection Team (if any) to calculate state revenue on the commune's territory within its jurisdiction.

1.3.3. The Finance Department shall balance and prepare the budget estimate for revenue and expenditure, reporting it to the Commune People's Committee for review by the Chairman and Vice-Chairman of the Commune People's Council before submitting it to the County People's Committee and the County Finance Department. The time for reporting the commune budget estimate shall comply with point 5.1.3, Section III, Circular No. 103/1998/TT-BTC dated July 18, 1998, guiding the classification, preparation, execution, and settlement of the state budget.

1.4. Decision on the Commune Budget Estimate: After receiving the decision on revenue and expenditure responsibilities from the County People's Committee, the Commune People's Committee shall complete the budget estimate by sector for approval by the Commune People's Council. Once the Commune People's Council approves the budget estimate, the Commune People's Committee shall report to the County People's Committee and the County Finance Department, simultaneously publicly announcing it according to the Financial Transparency Regulations on the State Budget.

1.5. Adjust the annual budget estimate of the commune (if any) in cases where there is a requirement from the higher-level People's Committee to ensure consistency with the overall direction and significant changes in revenue sources and expenditure tasks.

The People's Committee of the commune shall prepare the adjusted budget estimate, submit it for decision by the Commune People's Council, and report to the County People's Committee. After approval, the adjusted budget becomes the official budget of the commune for the planning year.

2. Execution of Commune Budget Estimates:

2.1. Based on the annual budget estimate of the commune already decided by the Commune People's Council, the People's Committee of the commune shall detail the budget expenditure estimate according to the state budget classification applicable at the commune level (in accordance with the attached form of this Circular) and send it to the State Treasury for payment and expenditure control purposes.

2.2. Based on the annual budget estimate and revenue capacity, as well as expenditure needs for each quarter, the People's Committee of the commune shall prepare quarterly revenue and expenditure estimates (broken down by month) and send them to the State Treasury for fund allocation. For communes with main revenue sources dependent on seasonal activities, the Chairman of the People's Committee may request the higher financial authority to increase the advance supplementary budget allocation (if any) to manage expenditures according to project progress.

2.3. The Chairman of the People's Committee of the commune (or his authorized representative) is the account holder for commune budget revenues and expenditures.

2.4. Each commune shall maintain a cash reserve at the commune level to settle small-value expenditures. The cash reserve limit at the commune level shall be set by the State Treasury for each type of commune. For communes far from the State Treasury with difficult travel conditions that cannot directly deposit commune budget revenues into the State Treasury, the cash reserve limit should be set at an appropriate level.

2.5. Revenue Collection Organization:

2.5.1. The Financial Board of the commune has the responsibility to coordinate with tax authorities to supervise and inspect state budget revenue sources to ensure accurate, full, and timely collection.

Specifically, for the 5% public land fund revenue, public assets, and public production profits which are regular revenue sources for the commune budget, the commune shall not tender out lump-sum collection contracts for multiple years, affecting the commune budget balance. In exceptional cases where lump-sum collection for several years is necessary, it can only be done within the term of the current People's Council, not extending into the next term.

2.5.2. If the entity required to pay the budget has the condition to pay directly into the state budget at the State Treasury, based on the revenue notice from the revenue agency or the Financial Board of the commune, the entity shall fill out a payment receipt and deduct from their account or bring cash to the State Treasury to make direct payments into the state budget.

2.5.3. If the entity required to pay the budget does not have the condition to pay directly into the state budget at the State Treasury, then:

For revenues under the collection responsibility of the tax authority, the tax authority collects, fills out a payment receipt, and brings the money to the State Treasury to pay into the state budget. If the tax authority delegates the collection to the Financial Board of the commune, the tax authority issues a receipt to the Financial Board, which then collects, fills out a payment receipt, and brings the money to the State Treasury to pay into the state budget, while settling the receipt with the tax authority.

For revenues under the collection responsibility of the Financial Board of the commune, the Financial Board collects, fills out a payment receipt, and brings the money to the State Treasury to make direct payments into the state budget (or deposits into the commune budget fund for expenditure if the commune is located in mountainous, remote, or isolated areas without regular transactions with the State Treasury). The Financial Board is responsible for settling the receipt with the issuing agency.

2.5.4. It is strictly prohibited to collect without a receipt or to collect outside the books; when collecting, a receipt must be given to the payer. The Tax Authority and the County Finance Department have the responsibility to provide receipts promptly and fully to the Financial Board to implement budget revenue collection and payment.

2.5.5. In cases where a refund of commune budget revenue (reversal of revenue) is required, the State Treasury confirms the amount collected into the commune budget so that the Financial Board can process the refund for the entity entitled to the refund.

2.5.6. The circulation of revenue documents is carried out as follows:

For revenues that the commune retains 100%, the State Treasury transfers the revenue documents to the Financial Board of the commune.

For revenues shared with the higher-level budget, the State Treasury where the commune maintains an account prepares a list of shared budget revenues for the commune (according to Appendix A attached to this Circular) and sends it to the Financial Board of the commune.

2.5.7. For additional supplementary revenues of the commune budget, the County Finance Department, based on the supplementary budget estimates allocated to each commune, quarterly revenue and expenditure estimates of the communes, and the county budget balancing capacity, announces quarterly supplementary amounts (broken down by month) to allow the commune to manage its budget proactively. To ensure the commune has funds for expenditure, especially for administrative expenses, the County Finance Department provides supplementary amounts to the commune on a monthly basis.

2.6. Expenditure Implementation:

2.6.1. Principles of Expenditure:

(1) Expenditure implementation must meet the following conditions:

Recorded in the budget estimate;

Complying with prescribed regulations, standards, and quotas;

Approved by the Chairman of the People's Committee of the commune or his authorized representative.

(2) Commune budget disbursements shall only use payment orders. Payment orders must specify clearly and fully the chapters, types, clauses, sections, and sub-sections according to the state budget classification applicable at the commune level (as per the attached Appendix B of this Circular); for large expenditures, supporting documentation must also be attached. If a single payment involves multiple chapters, an additional detailed expenditure list according to the state budget classification applicable at the commune level (as per the attached Appendix C of this Circular) must be prepared, indicating the payment order number, date, and total amount on the list, while the payment order must indicate the list number and total amount. For cash payments, a cash withdrawal request must be attached. The State Treasury will check and, if conditions are met, proceed with the payment.

(3) In cases of genuine necessity, such as advance payment for travel expenses, advancepayment to customers, contractors according to contracts, conference preparation, receptionof guests, small purchases, etc., such advances may be made for expenditure. In this case, onthe payment order, only the total amount of the advance required shall be recorded, accompaniedby a request for cash withdrawal (if the advance is made in cash). When valid receipts areavailable, the Village Finance Board must prepare a list of expenditure vouchers (according toAnnex B attached hereto) and a request for settlement of advances (according to Annex Dattached hereto) to be sent to the State Treasury where transactions are conducted to process thetransfer of advances to actual expenditures from the budget.

(4) Payments from the village budget through the State Treasury to entities havingtransaction accounts at the State Treasury or banks must be made by bank transfer (except forsmall payments that can be settled in cash).

(5) For expenditures from retained revenue sources at the village level, the VillageFinance Board must cooperate with the State Treasury to regularly process record of incomeand expenditure into the village budget. When processing record of income and expenditure, alist of income vouchers and a list of expenditure vouchers must accompany.

2.6.2. Regular Expenditures:

(1) Priority should be given to paying living expenses and allowances to village cadres,ensuring that there is no arrears in living expenses and allowances.

(2) Other regular expenditures must be based on the annual budget estimate, the urgencyof work, and the financial capacity of the village budget at the time of expenditure to ensureappropriate expenditure.

2.6.3. Investment Expenditures:

(1) The management of basic construction investment capital of the village budget shallbe carried out in accordance with the regulations of the State and the provincial delegation; thedistribution, settlement, and final accounting of basic construction investment capital of thevillage budget shall be implemented in accordance with the regulations of the Ministry ofFinance.

(2) For projects funded by voluntary contributions from the people, it is necessary toensure:

The establishment of books to record and promptly reflect all monetary contributions, labordays, and materials contributed by the people.

During the construction, inspection, and payment process, there must be supervision bythe Project Supervisory Board elected by the people.

The results of investment and final accounting of the project must be publicly announcedto the people.

2.7. Inspection and Supervision of Village Budget Activities:

2.7.1. The People's Council of the village shall supervise the implementation of income andexpenditure of the village budget.

2.7.2. Higher financial agencies, especially those at the district level, must regularly inspectand guide the management of the village budget.

3. Accounting and Settlement of the Commune Budget:

3.1. The Village Finance Board is responsible for implementing accounting and finalaccounting of the village budget according to the national budget classification applicable tothe village level and the current village budget accounting system; implementing the accountingreporting and final accounting system as prescribed. The State Treasury where transactionsare conducted shall implement accounting of income and expenditure of the village budgetaccording to the prescribed regulations.

3.2. The deadline for adjusting the final accounting of the village budget is January 31 ofthe following year.

3.3. To effectively carry out the annual closing and final accounting, the Village FinanceBoard must perform the following tasks:

(1) By the end of December, all revenues and expenditures according to the budgetestimate must be reviewed, thereby taking measures to fully collect all receivables into thebudget and promptly address expenditure needs according to the budget estimate. If there is apotential revenue shortfall, proactive measures must be taken to rearrange expenditures toensure the balance of the village budget.

(2) Cooperate with the State Treasury where transactions are conducted to reconcile allvillage budget revenues and expenditures for the year, ensuring full and accurate accounting ofall revenues and expenditures according to the national budget classification applicable to thevillage level, and rechecking the revenue distribution ratio between levels of budgets asprescribed.

(3) For temporary revenues, temporary withholding, and temporary loans (if any), theymust be examined and processed or refunded; if not yet processed, procedures must be madeto transfer them to the next year.

(4) Revenues and expenditures occurring at the end of the year must be handled accordingto the following principles:

All revenues must be submitted no later than the end of working hours on December 31;if submitted after this period, they will be counted as revenues of the following year's budget.

For necessary expenditures that cannot be paid due to delayed centralized revenues,they may be allowed to be paid until January 15 of the following year.

3.4. Annual Final Accounting of the Village Budget:

3.4.1. The Village Finance Board must prepare an annual final accounting report on incomeand expenditure of the village budget (according to the attached forms in this Circular) forpresentation to the People's Committee of the village for review and submission to the People'sCouncil of the village for approval, while sending the report to the District FinanceDepartment for consolidation. The latest date for submitting the annual final accounting reportto the District Finance Department is February 15 of the following year.

3.4.2. The final accounting of village budget expenditures must not exceed the finalaccounting of village budget revenues. The village budget surplus is the difference betweenactual revenues and actual expenditures of the village budget. The entire surplus of theprevious year (if any) shall be transferred to the next year's budget revenue.

3.4.3. After the People's Council of the village approves, the final accounting report mustbe prepared in five copies to be sent to the People's Council of the village, the People'sCommittee of the village, the District Finance Department (if there are supplements andadjustments), kept by the Village Finance Board, and publicly announced in public placesfor the villagers to know.

3.4.4. The District Finance Department is responsible for checking the final accountingreport on income and expenditure of the village budget; in case of errors, it must report tothe People's Committee of the district to request the People's Council of the village to makeadjustments.

 

PART III

Scope and Organization of Management of Other Financial Activities at the Village Level

1. Special Public Funds of the Commune:

The special-purpose funds of the village specified in this Circular are financial fundsestablished according to the regulations of the State (defense and security fund, gratitudeand remembrance fund, etc.) and contributions on a voluntary basis from the people decidedby the People's Council of the village but not included in the village budget. The content ofincome and expenditure, the level of income and expenditure, and the method of income andexpenditure of each fund shall be implemented in accordance with the regulations of the Statefor each fund and the regulations of the People's Council of the village.

The Village Finance Board has the responsibility to assist the People's Committee of thevillage in directly managing these funds (implementing income and expenditure; organizingseparate accounting and final accounting for each fund; implementing reporting systems asprescribed, etc.). Unspent funds in the year shall be carried over to the next year.

The People's Committee of the village must report annually on the activities of each fundto the People's Council of the village, the People's Committee of the district, the DistrictFinance Department, and publicly announce to the people.

2. Financial activities of communal public services:

Financial activities of communal public services include: health station activities, kindergarten activities, cultural information activities, physical education and sports activities, management activities of boats, markets, lakes, ponds, land, resources, wharfs, etc., directly organized and managed by the Commune People's Committee in accordance with prescribed regulations.

All financial activities of communal public services shall be uniformly managed based on the principle that:

(1) The Commune People's Committee entrusts each department, sector, and organization within the commune to directly implement specific public services. These departments, sectors, and organizations must prepare annual financial plans, submit them for approval by the Commune People's Committee, and include full calculations of all revenues and expenditures; amounts to be remitted to the commune budget or support from the commune budget (if applicable). The Commune People's Committee is responsible for compiling and reporting annually the financial plans and results of each public service activity to the Commune People's Assembly. The Commune People's Assembly oversees these public service activities.

(2) The Commune Finance Department assists the Commune People's Committee in managing the financial activities of communal public services (guiding units entrusted with implementing public services in organizing accounting and settlement of income and expenditure, implementing appropriate financial reporting systems for each activity, conducting regular and spot checks on the financial situation of these activities, etc.).

3. Financial activities of village groups:

Contributions voluntarily made by the people for specific purposes serving the common interests of the community, village, or hamlet are directly mobilized by the village or hamlet and not included in the commune budget. Mobilization can only be carried out after reaching consensus among the people regarding the policy, level of mobilization, and must report to the Chairman of the Commune People's Committee. The village or hamlet must appoint someone to record fully and specifically all revenues and expenditures in ledgers and publicly disclose the results of mobilization and the use of these financial resources. The village or hamlet must collect and spend according to each specific task. If collected funds are not yet used, the village or hamlet may deposit them into the commune's savings account at the State Treasury. The Commune Finance Department has the responsibility to assist the Commune People's Committee in guiding and inspecting (when necessary) the financial activities of villages and hamlets.

4. Other financial activities in the commune:

4.1. Financial activities of Party organizations and mass organizations are managed according to the regulations of each organization, not included in the commune budget, and not part of other financial activities of the Commune People's Committee. Party organizations and mass organizations in the commune must appoint someone to record specifically each revenue and expenditure in ledgers; they organize their own collection and expenditure and implement financial reporting and transparency systems as stipulated by each organization.

4.2. Collection and disbursement on behalf of others: including revenues and expenditures under the responsibilities of other organizations and agencies that entrust the commune to collect and disburse on their behalf (school fees, contributions to social insurance and health insurance funds, etc.). The Commune Finance Department assists the Commune People's Committee in implementing collections and disbursements on behalf of others in accordance with current regulations, without misusing such funds for unintended purposes and must maintain separate and detailed records of each collection and disbursement.

 

PART IV

Implementation

Based on the provisions of this Circular, the People's Committees of provinces and centrally-administered cities are responsible for providing detailed guidance suitable to the specific circumstances of each locality, while directing provincial finance authorities, local governments, and county-level finance authorities to strengthen supervision, inspection, and oversight of commune budget management and other financial activities of communes, towns, and wards; promptly resolving and addressing any difficulties or violations arising during implementation.

At all levels, People's Committees need to have specific plans to gradually strengthen the Commune Finance Departments so that they can effectively perform their function of assisting the Commune People's Committee in managing the commune budget and other financial activities as stipulated in Joint Circular No. 38/TC-TCCP dated June 25, 1997, concerning the tasks of financial management, budget management, and organizational structure of local government financial management bodies. The positions and number of staff in Commune Finance Departments should be based on workload, scale of revenues and expenditures, and staffing norms set by the Government to ensure minimum staffing levels and financial management discipline.

2.1. The Commune Finance Department includes:

The Head is a member of the Commune People's Committee responsible for financial work, tasked with assisting the Chairman of the Commune People's Committee in organizing and implementing the management of the commune budget and other financial activities.

(2) The Accounting Officer must have professional qualifications (at least a primary level in finance and accounting for mountainous areas, or intermediate level for other regions), tasked with assisting the Head of the Finance Department in directly managing the commune budget and other financial activities; performing accounting and settlement of the commune budget and communal funds. For large-scale communes with complex management, the Chairman of the County People's Committee may allow additional financial accounting staff to be hired under current labor contracts.

(3) The Cashier is responsible for managing the commune's cash fund (for small-scale communes, a part-time staff member may be appointed).

2.2. The selection and replacement of staff for each position in the Commune Finance Department shall be implemented in accordance with Decree No. 09/1998/NĐ-CP dated January 23, 1998, of the Government and Joint Circular No. 99/LT dated May 19, 1998, of the Government Organizational Cadre Management Board, Ministry of Finance, and Ministry of Labor, Invalids, and Social Affairs.

This Circular replaces Circular No. 01/1999/TTBTC dated January 4, 1999, of the Ministry of Finance on guiding the management of commune budget revenues and expenditures and takes effect from the 2001 fiscal year. Previous financial management regulations and commune budget systems that conflict with this Circular are no longer valid.

The People's Committees and finance authorities at all levels are responsible for implementing this Circular. Any difficulties or issues encountered during implementation should be reported promptly to the Ministry of Finance for resolution./.