Circular No. 14 TC/HCVX temporarily regulates the financial expenditure management system for the State Treasury system.

CIRCULAR

Provisionally regulating the financial expenditure management regime for the state treasury system.

________________________

Pursuant to Decision No. 07/HĐBT dated January 4, 1990 of the Council of Ministers on the establishment of the State Treasury System under the Ministry of Finance, and Decision No. 71 TC/QĐ/TCCB dated February 28, 1990 of the Minister of Finance on the provisional functions, tasks, and organizational structure of the State Treasury System, the Ministry of Finance provisionally regulates the financial management regime, the establishment and use of funds for the State Treasury System as follows:

I. GENERAL PROVISIONS:

1/ Units within the State Treasury System are public institutions under the finance-credit-insurance sector of the state, possessing legal personality, their own seals, and accounts at the State Treasury. The expenses for the operation of the State Treasury System are funded by the central budget.

2/ Units within the State Treasury System implement the financial management regime including budget preparation, final account reporting, and expenditures according to the prescribed regulations.

3/ The State Treasury System may establish incentive and welfare funds according to the prescribed regulations.

II. PROVISIONS ON THE CONTENT OF EXPENDITURES, BUDGET PREPARATION, AND FINAL ACCOUNT REPORTING FOR EXPENSES FOR THE OPERATIONS OF THE STATE TREASURY SYSTEM.

1/ The content of expenditures for the operations of the State Treasury System includes::

- Expenditures for salaries, allowances, subsidies, social insurance, collective welfare...

- Administrative and management expenditures: travel expenses, official duties expenses, conference fees, reception, ceremonial events, health care, sanitation...

- Operational expenditures, fees for performing tasks as temporarily prescribed regarding the functions, tasks, and organizational structure of the State Treasury System, postal fees, electricity fees, treasury stamps, payment vouchers, staff training...

- Expenditures for purchasing and equipping work equipment such as desks, chairs, safes, document cabinets, weighing, measuring, counting devices, computers, typewriters, money transport vehicles... and regular maintenance expenditures for equipment, facilities, office buildings...

2/ Regarding budget preparation:

a/ The State Treasury General Department is a first-level budget unit directly under the Ministry of Finance, the State Treasury Branch is a second-level budget unit under the State Treasury General Department, and the State Treasury Sub-branch is a third-level budget unit under the State Treasury Branch.

b/ Annually and quarterly, based on staffing, organizational structure, and the volume of operational activities, the State Treasury Sub-branches prepare income and expenditure budgets and submit them to the State Treasury Branch.

- The State Treasury Branch compiles the income and expenditure budgets of its subordinate sub-branches and its own budget and submits them to the State Treasury General Department.

- The State Treasury Branch compiles the income and expenditure budgets of its subordinate sub-branches and its own budget and submits them to the State Treasury General Department.

- The State Treasury General Department compiles the total system's income and expenditure budget and submits it to the Ministry of Finance (Administrative and Social Affairs Department) for review and approval.

c/ After the income and expenditure budget is approved, the State Treasury General Department allocates and disburses it to subordinate units.

3/ Regarding final account reporting:

Units within the State Treasury System are responsible for managing and using funds strictly, in accordance with purposes and regulations, and reporting final accounts quarterly and annually fully, accurately, and on time as prescribed. Expenditures for State Treasury operations are recorded in item 01, type 14, chapter 15 of the current state budget classification.

III. REGARDING TRAINING ACTIVITIES AND REVENUE GENERATION FOR UNITS WITHIN THE STATE TREASURY SYSTEM:

1/ Units within the State Treasury System have revenue-generating activities such as:

- Revenues from the issuance and sale of treasury stamps.

- Penalties and compensation revenues due to violations of payment discipline and tax collection by units and enterprises.

- Revenues from organizing activities serving economic development requirements.

- Other revenue-generating activities authorized by banks in areas without bank branches.

2/ Expenditures to generate the above revenues must be fully budgeted, recorded in ledgers, and separately accounted for; annual and quarterly reports on revenues and expenditures must be submitted to the State Treasury General Department for consolidation and forwarded to the Ministry of Finance (Administrative and Social Affairs Department) as prescribed.

3/ The surplus of revenues over expenditures generated by the above activities at units within the State Treasury System (Sub-branches, Branches, General Departments) shall be distributed as follows:

- 60% shall be allocated to the unit's incentive fund and welfare fund (70% for the incentive fund, 30% for the welfare fund).

- 20% shall supplement the operating funds of the units.

- 20% shall be remitted to the State Treasury General Department to supplement the incentive and welfare funds for units without revenue sources or with insufficient revenue and other matters decided by the Director of the State Treasury General Department.

4/ As for the establishment of the incentive and welfare funds of the State Treasury System as stipulated in Article 6 of Decision No. 07/HĐBT dated January 4, 1990 of the Council of Ministers, the Ministry of Finance will issue separate circulars to guide this.

Pending the formal regulation, in the second quarter of 1990, the State Treasury System may temporarily establish incentive and welfare funds at a rate of 40,000 dong per employee, divided as follows:

+ 60% for the incentive fund

+ 40% for the welfare fund.

When the regulations on establishing the two funds are issued, the State Treasury General Department will instruct recalculation according to the officially prescribed regulations.

IV. IMPLEMENTATION PROVISIONS:

1/ This Circular takes effect from April 1, 1990.

2/ The allocation and management of funds, financial management for the State Treasury System shall be implemented by the Financial Management and Administrative-Social Affairs Department of the Ministry of Finance.

3/ The Director of the State Treasury General Department is responsible for guiding units within the State Treasury System to comply with the provisions of this Circular./.