Circular No. 15 TC/TVQT stipulates the financial management regime for the State Treasury system.

CIRCULAR

REGULATIONS ON THE FINANCIAL MANAGEMENT SYSTEM FOR THE STATE TREASURY SYSTEM

Implementing Decree No. 25/CP dated April 5, 1995 of the Government on the tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance. The Ministry of Finance stipulates the financial management system for the State Treasury as follows:

I. GENERAL PROVISIONS

1. The State Treasury is an organization under the Ministry of Finance, implementing state management functions as prescribed in Decree No. 25/CP dated April 5, 1995 of the Government. The activities of the State Treasury system have both administrative and public service characteristics, as well as banking operation characteristics. The operating expenses of the State Treasury system are funded from the state budget and are consolidated in the Ministry of Finance's expenditure budget.

2. The Central State Treasury is a level II budget unit directly under the Ministry of Finance; the provincial and centrally-administered city State Treasuries are level III budget units directly under the Central State Treasury; the district, county, and town State Treasuries are subordinate units to the provincial and centrally-administered city State Treasuries.

3. The State Treasury may use the proceeds generated from transactions and settlements (after deducting costs) to invest in developing physical infrastructure, improving technical and operational skills, and supplementing the operating funds of the entire system.

4. All State Treasury units must comply with financial regulations, accounting and statistical ordinances, the Charter of State Accounting Organization, and the provisions in this Circular.

II- SPECIFIC PROVISIONS

1. Content of expenditures and sources of operating funds

1.1- Recurrent expenditures.

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

b. Administrative management expenditures including travel expenses, conference fees, official duties expenses...

1.2- Expenditures for specialized business activities of the State Treasury system as follows:

a. Expenditures for seals, payment documents, technical supplies, information work, and information processing...

b. Expenditures for currency operations such as counting, packaging, transportation...

c. Expenditures for ensuring monetary security - treasury funds, fire insurance for warehouses and assets.

d. Expenditures for payment, disbursement, and direct collection activities with transaction units.

e. Expenditures for hazardous work compensation, overtime pay.

g. Expenditures for capital mobilization and implementation of government-sponsored loan support programs, specifically:

+ Expenses for printing bonds, bills, seals, guidance materials, and accounting records and forms serving lending, information, and reporting for issuance purposes...

+ Training, publicity, summary, conclusion, fuel, vehicle expenses... serving revenue and lending operations.

+ Management, appraisal, distribution, lending, and debt recovery expenses. Fees for Collaborators according to current regulations.

h. Training and professional development expenditures for staff within the State Treasury system and related clients.

i. Other expenditures.

The State Treasury will provide detailed standards for business activity expenditures to be uniformly implemented throughout the system.

1.3- Expenditures for minor repairs, construction, and fixed asset purchases:

- Expenditures for purchasing equipment, working tools, regular maintenance of assets, workplaces... according to quarterly and annual approved budgets.

- Expenditures for purchasing fixed assets specific to the State Treasury system such as: money transport vehicles, protection, storage, firefighting equipment, gold, silver, gemstone testing equipment..., communication, computer, and payment network equipment.

1.4- Sources of funding to ensure the operations of the State Treasury:

a. State budget funding:

- Recurrent funding provided according to the general financial expenditure standards for administrative and public service units.

- Funding for specialized business activities of the State Treasury system as specified by the Ministry of Finance.

- Funding for implementing government objectives and programs and other sources of funding.

b. Supplementary funding from the difference between income and expenditure arising from the settlement and transaction processes of the State Treasury.

c. Support and sponsorship funding from domestic and foreign organizations and individuals for units within the State Treasury system.

1.5- Principles of managing funding sources:

a. State budget funding is managed, distributed, and harmonized throughout the State Treasury system.

b. Support and sponsorship funding belonging to a particular level of the State Treasury is managed, distributed, and used for its intended purpose by that level and must be recorded and reflected in final accounts in accordance with current national regulations on financial management.

c. Supplementary funding from the differences in income and expenditure from business transaction and settlement activities is managed uniformly and harmonized throughout the industry and in accordance with the provisions of Section 2.3, Part II of this Circular.

2. Management and utilization of income generated during the settlement and transaction processes of the State Treasury.

2.1- Income generated during the settlement and transaction processes of the State Treasury includes:

a. Income from payment operations such as: fee income, commissions, and collection and payment services (electricity, water payments, money transfers...).

b. Income from idle capital temporary advances of the State Treasury.

c. Bank deposit interest income.

d. Income generated from the operations of the State Treasury such as: income from inspection, storage, and safekeeping of gold, silver, precious stones, foreign currencies, and valuable documents, provision of seals...

e. Other income.

2.2- Costs incurred during the execution of transaction and settlement operations of the State Treasury system include:

a. Interest payments to certain units and individuals with bank accounts at the State Treasury (outside budget and provisional receipt accounts pending resolution), bank settlement fees.

b. Costs for inspecting, storing, and safeguarding gold, silver, and assets held in trust.

c. Other costs supporting activities generating income for the State Treasury system.

2.3- The difference between revenue and expenditure from the aforementioned activities, where revenue exceeds expenditure, shall be managed, distributed, and utilized as follows:

a. 10% shall be submitted to the State Budget.

b. 40% shall be allocated for investment in technical and professional development of the sector such as equipping and modernizing computer networks, information systems, transportation means, specialized assets, uniforms, labor protection expenses, supplementary capital for basic construction and minor repairs of the State Treasury system.

c. 50% shall be used for the following purposes:

- Supplementing activities related to treasury security, counting, storage, transportation, loading and unloading money...

- Information dissemination and publicity.

- Supplementing staff training and scientific research activities.

- Supplementing inspection, auditing, information technology, mobile work, and allowances for State Treasury system employees.

- Welfare expenses and rewards for units and individuals within and outside the State Treasury system.

In cases where the funds allocated for the purposes mentioned in point c are not fully utilized, they may be supplemented for investment in developing the State Treasury system.

Expenditures on investment and procurement of fixed assets must comply with the financial management regulations of the State and the Ministry of Finance.

Units under the State Treasury system must prepare comprehensive budget estimates, maintain ledgers for detailed tracking and accounting, and report quarterly and annual settlement statements according to prescribed regulations.

The Central State Treasury shall specify the details of the management, distribution, and utilization of revenues as stipulated in point 2.3 above.

3/ Budget preparation, inspection, and settlement.

3.1- Budget preparation:

- The Central State Treasury has the responsibility to guide subordinate units in preparing annual and quarterly budgets for review and consolidation of the entire State Treasury system to submit to the Ministry of Finance for approval.

The Ministry of Finance shall present to the Government and the National Assembly the portion of the budget guaranteed by the State Budget for approval in the annual State Budget plan.

- Basis for budget preparation:

+ Based on approved staffing standards, norms, and quotas of the State Treasury system and annual State Budget revenue and expenditure planning guidelines issued by the Ministry of Finance.

+ Based on special business activities of the State Treasury system.

+ Based on the actual implementation of revenue and expenditure items arising during the execution of transactions and payments in the previous year and anticipated activities in the planned year.

3.2- Inspection and Settlement:

- The Central State Treasury and its subordinate units have the responsibility to strictly monitor the use of funds to ensure that expenditures are made for their intended purpose, in accordance with regulations, and are economical.

Quarterly and annually, the Central State Treasury and its subordinate units must prepare and submit settlement reports in accordance with the content, forms, and deadlines specified in the accounting regulations issued by the Ministry of Finance.

- The Central State Treasury has the responsibility to review and approve the settlements of its subordinate units before consolidating the overall system's settlement.

- The Ministry of Finance has the responsibility to inspect, audit, and approve the settlement of the Central State Treasury.

3.3- Expenditures for the operations of the State Treasury must be recorded according to the current State Budget classification.

III- IMPLEMENTATION

1/ This Circular takes effect from April 5, 1995.

2/ The General Director of the State Treasury is responsible for guiding subordinate units in implementing the provisions of this Circular./.