JOINT CIRCULAR No. 15-LB/NH/TC REGULATING MEASURES FOR MANAGING CASH AT CONSTRUCTION SITES OF BASIC INFRASTRUCTURE PROJECTS

CIRCULAR
Regulations on managing cash for construction sites

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Implementing Decree No. 15-CP dated May 31, 1960 and Circular No. 217-KH dated June 13, 1960 of the State Bank stipulating principles for managing cash and Decree No. 64-CP dated November 19, 1960 promulgating regulations on capital disbursement for basic construction, the State Bank of Vietnam and the Ministry of Finance provide specific guidelines below for all levels of the Bank to implement, aiming at:

- Strictly managing basic construction capital.

- Ensuring reasonable and correct use of funds.

- Reasonable and economical use of cash, contributing to improving economic accounting and reducing construction project costs.

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

All levels of the State Bank and Construction Banks have the responsibility to guide, urge, and inspect construction sites regardless of long-term or short-term projects, above or below quotas, strictly adhering to state-established cash management rules and procedures.

In both capital disbursement and cash disbursement, the State Bank and Construction Banks need to closely coordinate to ensure timely and plan-compliant disbursements to construction sites without delay affecting construction project progress.

II. CONSTRUCTION AND REVIEW OF PLANS

Each month and each quarter, units with disbursement accounts and deposits at the Construction Bank must prepare two copies of the next month's or quarter's cash plan and submit them to the Construction Branch (or Branch or Disbursement Department in the Finance Bureau) by the 18th of the current month (monthly plan) and the 15th of the last month of the previous quarter (quarterly plan) for review and consolidation.

After reviewing and consolidating, the Construction Branch (or Branch) or Disbursement Department in the Finance Bureau must send the consolidated plan to the local State Bank by the 22nd of the current month (monthly plan) and the 19th of the last month of the previous quarter (quarterly plan), accompanied by detailed cash plans from key units and units with monthly cash expenditures over 10,000đ for the State Bank to base its own cash planning and monitoring during disbursement. The Central Branch retains the consolidated plan upon receipt and immediately forwards the detailed plans to relevant branches managing those construction sites.

For units far from the Construction Bank but near the State Bank Branch, the Construction Branch or Branch or Disbursement Department in the Finance Bureau will transfer their monthly cash expenditure portions to the State Bank Branch along with detailed spending plans for each item, allowing the State Bank Branch to gradually disburse funds to the unit (this point is elaborated in Section V).

III. IMPLEMENTATION OF CASH PLANS

Units base their requests for cash withdrawals on actual spending needs. The State Bank will disburse based on the cash plan and withdrawal schedule agreed upon with the units (the State Bank and local Construction Bank will jointly determine this schedule appropriately).

During cash disbursement, if any item can be disbursed through bank transfers, the State Bank will recommend that the unit make such transfers.

If it is necessary to adjust the plan or withdraw cash before the scheduled withdrawal date (referred to as the withdrawal schedule), the unit must submit a request detailing the reasons three days prior to the Construction Branch or Branch or Disbursement Department in the Finance Bureau for consideration. These requests will then be forwarded to the local State Bank. If adjusting the plan or withdrawing cash early significantly impacts currency circulation, the State Bank may resolve this by gradually disbursing cash, transferring funds via bank transfers, or postponing disbursement to another day.

All cash withdrawn from the State Bank by units must be deposited into their fund. Specifically, any excess salary not spent within three days must be returned to the State Bank. The State Bank will record this in the Construction Bank's account to reduce future disbursements. Units are absolutely prohibited from using surplus salaries for other expenses.

Any construction site receiving cash from sales of scrap materials, proceeds from check exchanges for rice purchases, recovered advance payments, etc., must deposit these amounts into the State Bank (account 16-05 of the Construction Bank) and cannot retain them for unplanned spending or deposit them into the unit's savings account (18-03) at the State Bank for gradual withdrawal. If the amount received is less than 100đ, it may be retained in the fund for up to two days. Amounts exceeding 100đ must be deposited with the State Bank on the same day.

IV. CASH BALANCE LEVELS

The State Bank, together with the local Construction Bank and construction site units, negotiate and set cash balance levels for each unit. This level represents the minimum amount required for incidental spending while awaiting cash disbursement from the Bank (excluding salary, salary supplements, raw materials, and transportation fees).

For units located in mountainous areas far from the Bank, schedules for cash withdrawals and cash balance levels should be adjusted according to distance to avoid difficulties for the unit while preventing cash accumulation.

V. TRANSFERS AND USE OF ALLOCATED EXPENSES

For construction sites far from the Construction Bank but near the State Bank Branch, the Construction Branch (or Branch or Disbursement Department in the Finance Bureau) will not directly disburse individual items but will transfer funds to the State Bank Branch for timely and appropriate disbursement to the unit.

This amount will be recorded in the unit's account 18-03 and withdrawn gradually according to the schedule agreed between the unit and the State Bank Branch. Funds transferred by the Construction Bank to State Bank Branches for disbursement must include detailed cash plans (including transferable items if necessary). The plan includes items such as personnel salaries and allowances, administrative and management expenses, and other construction-related expenses (if deemed necessary).

Unless there is a cash disbursement plan attached, the branch of the State Bank will not transfer money to the State Bank's sub-offices.

The Construction Bank will transfer money to the State Bank's sub-offices every ten-day period. If a unit fails to report the balance of account 18-03 confirmed by the State Bank within one reporting period, the Construction Bank will cease transferring funds. Specifically, to receive transfers for the third reporting period, a report from the first period must be provided.

VI. SUPERVISION OF COMPLIANCE WITH CASH MANAGEMENT REGULATIONS

The disbursing office (or sub-office or Distribution Department in the Finance Bureau) has the responsibility to regularly check the compliance with cash management regulations by units. If non-compliance is observed, it must recommend measures and take actions against the unit.

The branches and sub-offices of the State Bank directly responsible for cash disbursements have the duty to inspect the compliance with cash management regulations at basic construction units. In case of errors, they should provide feedback for correction to the construction sites and inform the disbursing office (or sub-office or Distribution Department in the Finance Bureau) so that corrective measures can be taken.

In cases where a unit seriously violates cash management regulations, it must report to the local administrative committee and propose disciplinary action under Decree No. 15-CP against the unit, while also informing the disbursing office to recognize its shortcomings.

To effectively implement this circular, the State Bank and the Construction Bank at all locations shall cooperate in disseminating the spirit and details of the circular to basic construction sites and take specific measures for enforcement. Any previous provisions conflicting with this circular are hereby abolished.