Joint Circular No. 158/1998/TTLT-BTC-BCA guiding the preparation, implementation, settlement of the State budget and management of state assets in the field of security.

MINISTRY OF PUBLIC SECURITY-MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
No.: 158/1998/TTLT-BTC-BCA	Hanoi, December 14, 1998

 

JOINT CIRCULAR

JOINT CIRCULAR NO. 158/1998/TTLT-BTC-BCA OF THE MINISTRIES OF FINANCE AND PUBLIC SECURITY ON DECEMBER 14, 1998 GUIDING THE PREPARATION, IMPLEMENTATION, SETTLEMENT OF THE STATE BUDGET AND MANAGEMENT OF STATE ASSETS IN THE FIELD OF NATIONAL SECURITY

Pursuant to the State Budget Law dated March 20, 1996; the Law Amending and Supplementing Certain Provisions of the State Budget Law dated May 20, 1998 and Decree No. 87/CP dated December 19, 1996 of the Government detailing the decentralization of management, preparation, implementation, and settlement of the state budget; Decree No. 51/1998/NĐ-CP dated July 18, 1998 amending and supplementing certain provisions of Decree No. 87/CP dated December 19, 1996 of the Government;
Pursuant to Decree No. 120/1997/NĐ-CP dated December 27, 1997 of the Government on the management and use of the state budget and state assets for certain activities in the fields of national defense and security;
The Ministry of Finance and Public Security jointly guide the preparation, implementation, and settlement of the state budget and management of state assets in the field of security as follows:

I - GENERAL PROVISIONS.

1- Expenditure from the state budget for the field of security

including:

- Expenditure for security work under the responsibility of the Ministry of Public Security.

- Expenditure for security work at central agencies and localities. This expenditure is included in the budget estimates of central agencies and localities.

2- Revenue items (including foreign currency) from the field of security

including:

- Fees, charges, and fines retained according to current regulations;

- Revenue from state-owned enterprises under the Ministry of Public Security; units utilizing state funds exploiting material and technical facilities, prisoner labor, and surplus labor for production, business, and service provision with revenue according to current state regulations.

3- General Departments, Military Commands, Bureaus, Directorates, and other grassroots units under and directly subordinate to the Ministry of Public Security (hereinafter referred to as budget-utilizing units) shall implement the preparation, implementation, and settlement of the state budget in the field of security according to the guidelines set out in this Circular.

.

Central and local agencies with security work expenditures shall comply with the State Budget Law; the Law Amending and Supplementing Certain Provisions of the State Budget Law; Decree No. 87/CP dated December 19, 1996 of the Government; Decree No. 51/1998/NĐ-CP of the Government; and Circular No. 09 TC/NSNN dated March 18, 1997 and Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance "Guiding the Implementation of the Decentralization, Preparation, Implementation, and Settlement of the State Budget," and the provisions in this Circular.

4- Budget-utilizing units have the responsibility to complete their assigned revenue and expenditure tasks effectively; implement frugal and efficient spending; and strictly adhere to current financial management systems and policies.

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5- Heads of budget-utilizing units are responsible under the law for implementing their assigned revenue and expenditure tasks.

Apart from authorized agencies assigning revenue and expenditure tasks, no organization or individual may alter these tasks. If alterations are necessary due to objective reasons, heads of budget-utilizing units must report to the agency assigning the tasks for adjustment.

6- Budget-utilizing units that exploit material and technical facilities, prisoner labor, and surplus labor for production, business, and service provision with revenue must follow current state regulations for such activities. The use of retained revenue, permitted by the Government, for specific purposes and tasks must be reported annually to higher-level management agencies and the Ministry of Public Security for consolidation and reporting to the Ministry of Finance.

7- State-owned enterprises under the Ministry of Public Security shall implement financial systems and state budget payments according to the State Enterprise Law and current guiding documents.

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8- Grassroots budget-utilizing units under the Ministry of Public Security shall implement guiding documents and be subject to financial authority inspections during the preparation of budgets, allocation of limits, disbursement, payment, accounting, and settlement of the state budget; simultaneously, they are subject to the State Treasury's expenditure control according to current regulations, except for high-security expenditure items as specified in this Circular.

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9- State budget revenue and expenditure in the field of security shall be recorded in Vietnamese Dong according to the fiscal year, budget level, and State Budget Item List. State budget revenue and expenditure in foreign currency, goods, and labor days shall be converted to Vietnamese Dong based on the exchange rate, price of goods, and value of labor days determined by the competent authority at the time of occurrence for recording.

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10- Level 2 budget units under the Ministry of Public Security shall prepare financial statements and assess the implementation of state budget revenue and expenditure quarterly and annually, sending them to the Ministry of Public Security for consolidation and submission to the Ministry of Finance.

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II - DECENTRALIZATION OF STATE BUDGET EXPENDITURE TASKS IN THE FIELD OF SECURITY.

1- Central government expenditure for security work

:

1.1 - Under the responsibility of the Ministry of Public Security:

1.1.1 - Recurrent expenditure for security work:

- Ensuring the material and spiritual life, social policies for the people's public security forces;

- Training, education, scientific research, environmental studies, historical compilation, and drafting of operational and regulatory documents;

- Ensuring specialized operational activities in intelligence, security, police, and state administration in security and order;

- Procurement, maintenance, repair, production of equipment, weapons, tools, and technical means for the people's public security forces;

- Management and reform of prisoners, detainees, children violating the law, and individuals subject to administrative penalties placed in educational institutions, reformatory schools;

- Fire prevention and firefighting;

- Construction of new, repair of special projects, barracks, offices, schools, hospitals, warehouses, prisons, detention centers, temporary holding facilities, educational institutions, reformatory schools managed by the people's public security forces;

- International relations;

- Other security activities.

1.1.2 - Concentrated state investment construction expenditure.

1.1.3 - Special tasks assigned by the Government.

1.1.4 - National reserve expenditure in the field of security.

1.2 - Duties of Ministries and central agencies:

- Expenditure for education and propaganda on mass movements to protect national security and social order and safety within agencies;

- Expenditure for fire prevention and firefighting work within agencies;

- Expenditure for security protection at Ministries and central agencies;

- Expenditure to ensure necessary working and living conditions for people's police forces engaged in protective work according to agency requirements;

2 - Local budget expenditure for security work

:

2.1 - The provincial and centrally-administered city budgets allocate funds for security work including:

- Expenditure supporting preventive and crime-fighting campaigns;

- Expenditure supporting campaigns to maintain security and social order and safety;

- Expenditure supporting fire prevention and firefighting work;

- Expenditure supporting repairs of temporary detention facilities;

- Expenditure supporting mid-term and final reviews of mass movements to protect national security;

2.2 - The district, urban district, town, and provincial city (collectively referred to as district-level) budgets allocate funds for security work including:

- Expenditure for propaganda and education on mass movements to protect national security;

- Expenditure supporting campaigns to maintain security and social order and safety;

- Expenditure supporting mid-term and final reviews of mass movements to protect national security;

- Expenditure supporting grassroots security and order activities;

2.3 - The commune and town budgets allocate funds for security work including:

- Expenditure for propaganda and mobilization of mass movements to protect national security and social order and safety;

- Expenditure for grassroots security and order activities;

2.4 - The ward budgets allocate funds for security work including:

- Expenditure for propaganda and mobilization of mass movements to protect national security and social order and safety;

III - ANNUAL STATE BUDGET ESTIMATION:

A - GUIDANCE ON THE PREPARATION OF THE ANNUAL STATE BUDGET ESTIMATION AND ANNOUNCEMENT OF THE BUDGET ESTIMATION CHECKING NUMBER:

1 - Annually, the Ministry of Public Security guides units using the state budget on the requirements, contents, and deadlines for preparing the budget estimation; announces the checking number based on the following grounds:

as follows:

- The Prime Minister's Directive on the development plan for economic and social development;

- Directions and tasks to strengthen national security work;

- The implementation status of the previous year's state budget estimation;

- Circulars guiding the preparation of the state budget issued by the Ministry of Finance;

- The state budget estimation checking number announced by the Ministry of Finance;

2 - Budget estimation units under the Ministry of Public Security guide and announce the checking number according to the principle that higher levels guide and announce the checking number for lower-level budget estimation units directly;

3 - Deadline for announcing the budget estimation checking number

:

- The Ministry of Finance announces the state budget estimation checking number to the Ministry of Public Security before July 1st of the previous year;

- The Ministry of Public Security announces the state budget estimation checking number to level 2 budget estimation units before July 10th of the previous year;

- Level 2 budget estimation units announce the state budget estimation checking number to level 3 budget estimation units before July 15th of the previous year;

B - REQUIREMENTS FOR THE ANNUAL STATE BUDGET ESTIMATION:

1 - The state budget estimation must include all revenue and expenditure items, including those revenues allowed by the Government to be retained for specific objectives and tasks; it must comply with policies, regulations, and standards set by competent state authorities;

2 - The state budget estimation must be prepared according to the prescribed format, tables, and deadlines specified in Section D of Part III of this Circular, and detailed according to the State Budget Item List;

;

3 - The state budget estimation of upper-level budget estimation units must be based on the consolidation of the state budget estimations of lower-level budget estimation units; analyzed by sources of funding and areas of expenditure;

4 - The state budget estimation must be accompanied by a detailed explanation of the calculation bases according to national standards, guidelines from the Minister of Finance and the Minister of Public Security, comparative analysis with actual figures (estimates), and the checking number. For expenditures requiring high confidentiality as stipulated by the Government, the Ministry of Public Security sends the Ministry of Finance only the aggregated figures;

5 - The state budget estimation prepared by local public security agencies must clearly distinguish:

- The portion guaranteed by the central budget, consolidated and submitted to higher levels according to the management hierarchy of the Ministry of Public Security;

- The portion guaranteed by the local budget, sent to the local financial authority at the same level for submission to the People's Council for decision-making, and concurrently submitted to higher levels for consolidation. After receiving the notification from the People's Committee at the same level regarding the budget allocation to their unit, the local public security agency reports upwards through each level to the Ministry of Public Security for monitoring, consolidation, and coordination with the Ministry of Finance to implement the directive;

C - BASIS FOR THE ANNUAL STATE BUDGET ESTIMATION:

1 - Tasks for economic and social development; political goals of the Ministry of Public Security (including regular and urgent tasks), specific targets and tasks reflecting requirements, scale, and ensuring scientific and technical development linked to the characteristics of the Ministry of Public Security's operations and nature of its business in the planning year;

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2 - Personnel strength, staffing, equipment, construction volume, maintenance, preservation, repair, production of means of transportation in the planning year;

3 - Current consumption standards, expenditure norms, and any amendments and supplements that have taken effect;

Amendments and supplements to systems, policies, norms, and standards approved and promulgated before the preparation of the new annual state budget estimation serve as the basis for the budget estimation;

4 - Projects, programs, investment plans for equipping and providing means of transportation, technical regulation drafting programs, scientific research topics, design files, large-scale repair and basic construction estimates aimed at developing the people's police force, approved by the Prime Minister and the Minister of Public Security;

5 - The state budget estimation checking number announced by the competent state authority;

The state budget estimation checking number announced to lower-level budget estimation units must correspond to the total amount and details of the state budget estimation checking number announced by higher levels;

D - TASKS AND DEADLINES FOR THE PREPARATION AND CONSOLIDATION OF THE ANNUAL STATE BUDGET ESTIMATION:

1- Units under the Ministry of Public Security that directly use the state budget shall prepare detailed revenue and expenditure budgets at their own level and submit them to their immediate superior management authority according to the State Budget Item List.

The report on the state budget forecast must be submitted to the superior level before August 1 of the preceding year.

2- Units preparing second-level budgets shall examine the state budget forecasts prepared by subordinate units, consolidate them, and prepare detailed revenue and expenditure budgets for the year according to the State Budget Item List, then submit them to the Ministry of Public Security.

The report on the state budget forecast must be submitted to the Ministry of Public Security before August 5 of the preceding year.

3- The Ministry of Public Security shall examine the state budget forecasts prepared by second-level budget units, consolidate them, and prepare detailed revenue and expenditure budgets for the Ministry of Public Security according to the State Budget Item List, then submit them to the Government along with a consolidated report on the annual budget forecasts of second-level budget units, and send copies to:

- The Ministry of Planning and Investment regarding the central government's investment construction budget, national programs, national goals, and state reserves in the field of security.

Sectoral management agencies regarding the budget expenditures according to sectors and fields.

The consolidated report must be submitted to the Ministry of Finance before August 15 of the preceding year.

4- Due to the nature of security tasks, within the regular annual expenditure content, the state budget allocates a portion of funds for investment in constructing certain special projects and activities related to security work (hereinafter referred to as basic construction expenses from regular annual expenditure of the Ministry of Public Security). For this annual expense, when preparing the state budget, the Ministry of Public Security shall comply with current regulations on state investment and construction management.

The process of preparing the budget for basic construction expenses funded by regular annual expenditure proceeds as follows:

- Budget units under the Ministry of Public Security shall base on planning schemes and assigned tasks and plans, announced indicators, prepare project proposals and detailed investment construction budget estimates for their units, and submit them to the Minister of Public Security for review.

- The Ministry of Public Security shall base on objectives and plans, consolidate and prepare the annual budget plan of the Ministry, and submit it to the Ministry of Finance for examination and consolidation to be presented to the Government.

5- All levels of budget-using units under the Ministry of Public Security shall prepare revenue and expenditure budgets according to the templates and forms prescribed in this Circular.

For units with income, in addition to preparing revenue and expenditure budgets according to the templates and forms prescribed in this Circular, they must also prepare and report financial plans and solutions for production, business, and service activities according to current regulations, based on each type of activity.

IV - IMPLEMENTATION OF THE STATE BUDGET.

A- ALLOCATION OF ANNUAL STATE BUDGET FORECASTS:

1- Based on the state budget forecast assigned by the Government and the detailed state budget forecast announced by the Ministry of Finance, the Ministry of Public Security shall allocate the assigned budget forecast to second-level budget units and instruct these units to allocate the budget forecast to lower-level budget units in accordance with the total amount and details of each item in the assigned state budget forecast.

2- The results of allocating the budget forecast to budget-using units at all levels within the Ministry of Public Security must be submitted to the immediate superior management authority and the State Treasury where transactions take place.

3- The results of allocating the budget forecast, including the allocation of remaining initial budget forecasts not fully allocated to second-level budget units and centralized expenditures of the Ministry of Public Security, must be sent to the Ministry of Finance, the Central State Treasury, and the State Treasury where transactions take place.

4- The completion of budget forecast allocation and the issuance of budget allocation forecasts to budget-using units under and directly under must be completed no later than 20 days from the date of receipt of the state budget index notification.

B- QUARTERLY STATE BUDGET FORECASTS:

1- Budget-using units at all levels under the Ministry of Public Security shall base on the approved annual revenue and expenditure forecasts and quarterly revenue and expenditure tasks, prepare detailed quarterly revenue and expenditure forecasts (divided by month) according to the State Budget Item List, and submit them to the superior management authority up to the second-level budget unit before the 5th day of the last month of the quarter.

2- Second-level budget units under the Ministry of Public Security shall examine the quarterly expenditure forecasts of grassroots units, consolidate them, and prepare detailed quarterly budget forecasts (divided by month) for their level and submit them to the Ministry of Public Security before the 10th day of the last month of the quarter.

3- On the basis of the quarterly budget forecasts submitted by second-level units, the Ministry of Public Security shall examine, consolidate, and prepare the quarterly budget forecast for the Ministry and submit it to the Ministry of Finance before the 20th day of the last month of the quarter.

The quarterly budget expenditure forecast of the Ministry of Public Security includes the following contents:

3.1- Regular expenditures (not having the nature of basic construction), detailed according to the expenditure items of the State Budget Item List, accompanied by the total expenditure of each second-level budget unit.

3.2- Basic construction expenditures within regular expenditures, detailed according to the expenditure items of the State Budget Item List and the list of construction projects.

3.3- Expenditures for state-assigned programs and special expenditures, detailed according to the expenditure items of the State Budget Item List and to the units using the state budget.

3.4- Expenditures for production, procurement of equipment, and means of transportation serving operational work within regular annual expenditures, detailed according to each group of equipment, means, and transportation lists.

4- The Ministry of Finance shall audit the quarterly state budget forecast of the Ministry of Public Security and, based on the state budget capacity, notify the quarterly state budget forecast to the Ministry of Public Security and implement budget disbursement according to current regulations.

5- The Ministry of Public Security shall base on the quarterly state budget forecast notification and the budget limit of the Ministry of Finance, notify the quarterly state budget forecast and distribute the budget limit to second and third-level budget units under its direct jurisdiction.

6- The notification of the quarterly state budget forecast (divided by month) for second-level budget units of the Ministry of Public Security shall be sent to the Ministry of Finance and simultaneously to the State Treasury where transactions take place.

7- Adjustment of the state budget forecast

:

- Budgetary units may adjust between sub-items within the scope of a section (except for certain sections: 118, 119, 145, 147, 148, 149 which require the consent of the direct supervisory authority), but shall not change the structure among sections and the total budget estimate already allocated, while simultaneously reporting the results of such adjustments to the direct supervisory authority.

- Level 2 budget units may adjust sections and the total budget estimate among level 3 budget units under their jurisdiction. However, they shall not alter the total amount or the detailed items in the state budget estimate assigned; they must report the results of such adjustments to the direct supervisory authority and send them to the State Treasury where transactions take place as the basis for disbursement and payment.

- The Ministry of Public Security may adjust sections and the total budget estimate among level 2 and level 3 budget units under its jurisdiction, but shall not alter the total amount or the detailed items in the state budget estimate assigned at the beginning of the year; they must consolidate the results of such adjustments and send them to the Ministry of Finance and the State Treasury where transactions take place.

- In cases where it is necessary to adjust the state budget estimate within the scope of management to align with expenditure tasks without changing the total state budget estimate approved by the Government, the Ministry of Public Security must report and obtain the agreement of the Ministry of Finance before implementing such adjustments.

C- CONDITIONS FOR DISBURSEMENT OF THE STATE BUDGET:

1- Included in the allocated state budget estimate. In exceptional cases not included in the budget estimate, approval from the competent authority is required.

2- Comply with regulations, standards, and norms issued by state authorities applicable to the field of security.

3- Approved by the head of the budgetary unit or the authorized person.

4- Possess complete documentation, receipts, invoices, economic contracts... in accordance with current regulations.

5- In addition to the above conditions, when disbursing funds for basic construction investment, procurement of equipment, working tools, and other works, competitive bidding must be organized in accordance with the Government's and the Ministry of Finance's regulations. In cases permitted to designate bidders according to the Government's regulations, price evaluation must be conducted, and the person making the designation decision must bear responsibility before the Prime Minister regarding prices and quality of equipment and projects.

D- PRINCIPLES OF FUNDS DISBURSEMENT:

1- The quarterly budget expenditure limit (divided by month) announced by the Ministry of Finance is the highest limit that the Ministry of Public Security can spend in that quarter. The Ministry of Public Security must allocate the quarterly expenditure limit to level 2 and level 3 budget units in accordance with the total and detailed items in each month as announced by the Ministry of Finance.

2- If the quarterly expenditure limit (divided by month) is not fully utilized, it can be carried over to the next month or quarter; however, any unutilized limit as of December 31 will be canceled.

3- The expenditure limit for a specific item can only be disbursed and paid for that item; it cannot be used to pay for another item. In cases requiring adjustment between items, a report must be made and permission obtained from the competent authority according to the following principles:

- The Minister of Finance decides on adjusting the expenditure limit for items for the Ministry of Public Security if it changes the total amount and detailed items as announced by the Ministry of Finance.

- The Minister of Public Security decides on adjusting expenditure items for level 2 budget units if it does not change the total amount and detailed items as announced by the Ministry of Finance.

- The head of level 2 budget units decides on adjusting expenditure items for level 3 budget units and grassroots spending units if it does not change the total amount and detailed items as announced by the Ministry of Public Security.

- Decisions on adjusting expenditure items by level 2 budget units and the Ministry of Public Security must be sent to the Ministry of Finance, the Central State Treasury, and the State Treasury where transactions take place.

4- In cases where the annual budget estimate and allocation have not been decided, to ensure normal operations of the Ministry of Public Security at the beginning of the year, upon the request of the Ministry of Public Security, the Ministry of Finance, after reviewing, will provide provisional funding to the Ministry of Public Security in December of the previous year. The maximum provisional funding amount shall not exceed the average monthly funding of the previous year.

E- FUNDS DISBURSEMENT:

1- Disbursement based on the budget limit:

The budget limit is used to disburse regular expenditures (Group 6) of level 1 and level 2 budget units under the Ministry of Public Security. For level 3 budget units and below, funds are disbursed through bank transfers to accounts opened at the State Treasury where transactions take place, detailed to the item level according to the State Budget Manual.

The disbursement process is as follows:

1.1- Based on the quarterly state budget estimate, the Ministry of Finance announces the quarterly expenditure limit (divided by month) to the Ministry of Public Security and sends it to the Central State Treasury for monitoring, disbursement, and payment.

1.2- After receiving the quarterly expenditure limit announcement from the Ministry of Finance, the Ministry of Public Security, based on requirements and expenditure tasks, distributes to level 2 budget units or directly subordinate level 3 budget units.

The distribution must adhere to the principle: The total and detailed monthly limits of all units must match the quarterly state budget expenditure limit announcement by the Ministry of Finance.

1.3- Level 2 budget units, based on the quarterly expenditure limit provided by the Ministry of Public Security, prepare withdrawal forms for the budget limit and send them to the State Treasury where transactions take place to:

- Provide funds to level 3 budget units (or directly subordinate grassroots spending units) through bank transfers to accounts opened at the State Treasury where transactions take place, detailed to the item level according to the State Budget Manual.

- Request the State Treasury to provide provisional funding or settle expenses for their own unit's tasks in accordance with current regulations.

1.4- Level 3 budget units prepare Checks or Payment Orders, accompanied by relevant documents, depending on the nature of each expense, and send them to the State Treasury where transactions take place to request provisional funding or settlement.

1.5- The State Treasury at the transaction location shall perform the function of inspecting and supervising the legality of the documents, and if all conditions for payment are met according to the provisions of Section C, Part IV of this Circular, it shall issue a provisional advance or settlement payment to the budget-using unit. For expenditures with high confidentiality requirements under items: 100, 102, 103, 108, 113, 119, the State Treasury shall not conduct detailed inspections of the expenditure content but shall transfer funds to the budget-using units. The Minister of Public Security and the heads of budget-using units shall be responsible under state law for their own expenditure decisions.

2- Issuance of Payment Orders

:

The Ministry of Finance shall allocate funds to the Ministry of Public Security through payment orders for the following contents:

2.1- Allocation of construction investment funds within the annual regular expenditure of the Ministry of Public Security: Based on the implementation progress, the project sponsors shall prepare capital plans for payment and submit them to the Ministry of Public Security. After reviewing and consolidating these plans, the Ministry of Public Security shall prepare detailed quarterly expenditure plans for each project and send them to the Ministry of Finance for capital allocation planning.

The Ministry of Finance, after auditing the quarterly expenditure budget for construction investment of the Ministry of Public Security, based on the state budget capacity, shall allocate the quarterly expenditure level and notify the Ministry of Public Security, and proceed with issuing provisional advances or payments into the Ministry of Public Security's deposit account so that the Ministry of Public Security can organize disbursements and settlements to project sponsors, contractors, or installation units in accordance with current state regulations on capital management and construction.

2.2- Allocation of funds for projects and works under the Ministry of Public Security from centralized state investment funds shall be carried out through the Investment Development General Department and in accordance with current state regulations on capital management and construction.

For construction projects and investment projects with special characteristics and high confidentiality as prescribed by the Government, the Investment Development General Department shall carry out allocations through the Ministry of Public Security. The Ministry of Public Security shall be responsible for organizing disbursements and settlements to project sponsors, contractors, or installation units in accordance with current state regulations on capital management and construction.

2.3- Allocation of funds to serve special activities and extraordinary expenditures of the Ministry of Public Security as prescribed by the Government:

Based on the budget indicators assigned by the Government for the Ministry of Public Security to implement special activities and extraordinary expenditures, the Ministry of Public Security shall prepare an expenditure budget and submit it to the Ministry of Finance. After agreeing on the figures, budget, and allocation schedule with the Ministry of Public Security, the Ministry of Finance shall issue payment orders into the Ministry of Public Security's deposit account or other budget-using units.

The State Treasury shall execute the withdrawal of state budget funds, transferring money into the deposit account of the Ministry of Public Security or other budget-using units specified in the payment order. Budget-using units and heads of budget-expenditure units shall bear full responsibility under the law for their procedures, documents, and expenditure decisions.

2.4- Allocation of funds for purchasing equipment, facilities, and means of transport to serve the operational work of the Ministry of Public Security:

Based on the annual regular expenditure budget for purchasing equipment, facilities, and means of transport to serve operational work; based on the procurement targets, plans allocated, and implementation progress. Quarterly, the Ministry of Public Security shall prepare detailed quarterly expenditure plans for each category of equipment, facilities, and means of transport and submit them to the Ministry of Finance.

The Ministry of Finance, after reviewing the quarterly expenditure budget of the Ministry of Public Security, based on the state budget capacity, shall provide provisional advances into the Ministry of Public Security's deposit account to allow the Ministry of Public Security to control expenditures according to regulations before disbursing and settling with subordinate units or suppliers.

After having complete documents as stipulated in Section C, Part IV of this Circular, at the end of each quarter, the Ministry of Public Security shall submit to the Ministry of Finance for inspection and review to proceed with disbursement and settlement for the Ministry of Public Security.

V - ACCOUNTING AND SETTLEMENT OF THE STATE BUDGET.

A- OBJECTS IMPLEMENTING ACCOUNTING AND SETTLEMENT OF THE STATE BUDGET:

1- The Ministry of Public Security is a first-level budget entity directly related to the Ministry of Finance, which opens a budget limit account and a budget deposit account at the State Treasury to receive the budget; allocate the budget to second-level budget entities; be responsible to the state for organizing the accounting system, implementing budget accounting and settlement, managing assets of the entire police sector; approve accounting reports and budget settlement reports of subordinate budget entities. Inspect and guide on accounting practices and financial management. Open other deposit accounts at the State Treasury transaction locations to record and manage non-budgetary funds.

2- Departments, Corps, Bureaus, and provincial public security departments under the Ministry of Public Security are second-level budget entities (as prescribed by the Minister of Public Security), which open budget limit accounts and budget deposit accounts at the State Treasury to receive the state budget; allocate the budget to third-level budget entities and grassroots expenditure units (if any); organize and implement budget accounting and settlement, manage assets of their level; approve accounting reports and budget settlement reports. Inspect and guide on accounting practices and internal audit for lower-level budget entities. Open other deposit accounts at the State Treasury transaction locations to record and manage non-budgetary funds.

3- Units under the Departments, Bureaus, detention centers under the Bureau V26, some district and county police units and equivalent units with large expenditures, special expenditures are budgetary units at level 3. They are allowed to open budget deposit accounts at the State Treasury to receive the budget estimates from the budgetary unit at level 2 (or level 1); allocate budget estimates to grassroots expenditure units; organize and implement accounting work and final settlement of the state budget, manage assets of their own level; approve accounting reports and final settlement of the state budget. Inspect and guide accounting operations for subordinate budgetary units. They may also open other deposit accounts at the State Treasury where transactions take place to record and manage funds not from the state budget.

4- Subordinate units without independent budgets are grassroots expenditure units, directly receiving budget estimates or funds from budgetary units at level 3 (or level 2) for specific tasks; when spending, they must perform accounting and final settlement of the state budget with the budgetary unit that allocates funds.

B- ORGANIZATION OF THE STATE BUDGET ACCOUNTING SYSTEM:

1- All levels of budgetary units must organize the state budget accounting system according to current regulations.

2- Organize accounting recording, reporting, and final settlement of the state budget according to the national accounting system; strictly comply with the Accounting and Statistics Ordinance and financial management and asset management systems of the state.

3- For grassroots expenditure units, there must be dedicated payment accountants.

The application of specific contents based on the characteristics of the Ministry of Public Security must be agreed upon and unified in writing by the Ministry of Finance.

C- CLOSURE OF STATE BUDGET ACCOUNT BOOKS:

At the end of each accounting period (month, quarter, year), all levels of budgetary units and the Ministry of Public Security must carry out the closure of accounting books according to Circular No. 09 TC/NSNN dated March 18, 1997, Circular No. 103/1998/TT-BTC dated July 18, 1998 "Guidelines for Delegation, Preparation, Implementation, and Final Settlement of the State Budget," and annual guidance documents issued by the Ministry of Finance.

By December 31 of the fiscal year, any unit with remaining balances on its budget deposit account must submit a letter requesting the transfer of the balance and obtain confirmation from the State Treasury where transactions are conducted, then send it to the Ministry of Public Security for consolidation and forward to the Ministry of Finance for consideration to transfer the balance to the next fiscal year.

D- PRINCIPLES FOR PREPARATION OF FINAL SETTLEMENT REPORTS ON THE STATE BUDGET:

1- Data in the final settlement report must be accurate and truthful. The content of the final settlement report on the state budget must correspond to the approved budget estimate and the State Budget Schedule.

2- Quarterly accounting reports and annual final settlement reports of lower-level budgetary units shall be submitted to higher-level budgetary units. The Ministry of Public Security shall consolidate and prepare the annual final settlement report of the Ministry of Public Security to be sent to the Ministry of Finance, accompanied by the following documents:

- Summary of approved final settlement figures for subordinate units, including the portion of revenue permitted to retain for expenditure as stipulated by the Government.

- Explanation and justification of reasons for achieving, failing to achieve, or exceeding the approved budget estimate by each indicator and recommendations (if any).

- Confirmation from the State Treasury where transactions take place.

3- The final settlement report on the state budget of budgetary units and the Ministry of Public Security shall not show expenditures greater than revenues.

4- For funds supported by local government budgets, local public security agencies shall prepare quarterly accounting reports and annual final settlement reports on the state budget to be submitted to the local financial authorities at the same level, simultaneously sending them to higher-level authorities up to the Ministry of Public Security for monitoring, management, and coordination with the Ministry of Finance to direct implementation.

E- PROCEDURES FOR PREPARATION, SUBMISSION, REVIEW, AND APPROVAL OF ANNUAL FINAL SETTLEMENT OF THE STATE BUDGET:

1- Heads of lower-level budgetary units shall prepare annual final settlement reports on the state budget and submit them to higher-level budgetary units; within a maximum of 20 days from receipt of the final settlement report, the higher-level budgetary unit shall be responsible for reviewing and approving the final settlement and notify the results of the review to the lower-level budgetary unit. Within 10 days from receipt of the final settlement notification from the higher-level budgetary unit, the lower-level budgetary unit may provide further explanations for review; if no additional comments are made, it will be considered accepted for implementation.

2- The Ministry of Public Security shall consolidate and prepare the annual final settlement report on the state budget to be submitted to the Ministry of Finance. The Ministry of Finance shall review and approve the annual final settlement report on the state budget and notify the results of the review to the Ministry of Public Security within a maximum of 30 days from receipt of the final settlement report.

3- During the Ministry of Public Security's review of the final settlement of second-level budgetary units, depending on conditions and specific content, the Ministry of Finance may participate in reviewing the final settlement of certain units.

4- In addition to the final settlement report form and accompanying documents, the reviewing authority may request the unit preparing the final settlement report to provide further explanations or clarifications on certain expenditure items (if deemed necessary) before issuing the approval notification for the final settlement report.

5- The unit or authority reviewing the final settlement has the right to revoke, recover expenditures not in accordance with regulations and not included in the approved budget estimate, and issue orders to immediately remit amounts due to the state budget according to prescribed regulations.

the State budget as prescribed by the regime

6- The time for submitting quarterly accounting reports and annual final settlement reports is as follows:

- Quarterly accounting reports of second-level budgetary units to the Ministry of Public Security must be submitted no later than 25 days after the end of the quarter.

- Annual final settlement reports of second-level budgetary units to the Ministry of Public Security must be submitted no later than March 15 of the following year.

- The Ministry of Public Security must consolidate and submit to the Ministry of Finance no later than April 30 of the following year.

Quarterly accounting reports and annual final settlement reports shall be prepared according to the forms and schedules attached to this Circular.

VI- MANAGEMENT OF STATE ASSETS UNDER THE MINISTRY OF PUBLIC SECURITY

1- State assets entrusted to the Ministry of Public Security for management and use include the following assets:

1.1- Special-use assets serving activities and security work, including technical equipment, means of transportation, weapons, military supplies, barracks, ports, defense works, combat works, land for security purposes, detention facilities, and other types of assets serving security work and operations.

1.2- Assets serving management work, which are other types of assets under the management and use of the Ministry of Public Security but not included in the aforementioned categories.

1.3- National reserve assets managed and preserved by the Ministry of Public Security.

2- Asset management organizations

:

2.1 - For specialized assets serving operational activities in national security, the Ministry of Public Security is responsible for organizing management and use according to regulations and confidentiality principles established by authorized agencies; periodically inventorying, evaluating, and reporting to relevant agencies as prescribed by the Government.

2.2 - For assets serving management work, the Ministry of Public Security organizes management and use according to current State regulations on state asset management.

2.3 - For reserve assets managed under the current regime for managing national reserve goods.

2.4 - Assets at enterprises under the Ministry of Public Security are managed according to current regulations on managing assets at state-owned enterprises.

3 - The transfer, conversion, and liquidation of assets belonging to the Ministry of Public Security shall be carried out in accordance with current State regulations.

.

It is strictly prohibited to use state assets for purposes other than those specified, beyond the standards and quotas set by authorized state agencies; using them for personal, business, and other purposes except in special cases as prescribed by the Government.

VII - IMPLEMENTATION ORGANIZATION

1- This Circular takes effect from the 1998 fiscal year. All previous documents and regimes that conflict with the provisions of this Circular are abolished.

2- Ministries, central agencies, People's Committees at all levels, and units under the Ministry of Public Security are responsible for implementing this Circular. Any difficulties or obstacles encountered during implementation should be promptly reported to the Joint Ministry for study and resolution.

attached hereto.

Form 01: Summary of the budget expenditure plan for the fiscal year ...

For primary budget units - Ministry of Public Security

(By expenditure category)

Form 02: Summary of the budget expenditure plan for the fiscal year ...

For higher-level units of budgetary levels

(By subordinate unit and expenditure category)

Form 03: Summary of the budget expenditure plan for the fiscal year ...

For higher-level budget units and directly budget-funded units

(By expenditure category)

(By expenditure item)

Form 04: Summary of the budget expenditure plan for the fiscal year ...

For higher-level units of budgetary levels

(By subordinate unit and expenditure item)

Form 05: Financial plan for production, service provision, and business operations for the fiscal year ...

For higher-level units and budget-funded units with revenue

Form 06: Budget expenditure plan in foreign currency for the fiscal year ...

For primary budget units

Form 07: Budget expenditure plan for construction investment (within regular expenditures) for the fiscal year ...

For budget units at all levels

Form 08: Budget expenditure plan for national target programs for the fiscal year ...

For higher-level budget units

Form 09: Budget expenditure plan for each quarter of the fiscal year ...

For higher-level budget units and directly budget-funded units

(By expenditure item and broken down by month)

Form 10: Budget expenditure plan for each quarter of the fiscal year ...

(By subordinate unit and expenditure item)

Form 01: Summary of final accounts of budget expenditures for the fiscal year ...

Form 09: Budget expenditure plan for each quarter of the fiscal year ...

Form 02: Summary of final accounts of budget expenditures for the fiscal year ...

attached hereto to the People's Committee of the province.

For higher-level budget units

(By expenditure item and broken down by month)

Form 10: Budget expenditure plan for each quarter of the fiscal year ...

(By expenditure category)

Form 03: Summary of final accounts of budget expenditures for the fiscal year ...

Form 04: Summary of final accounts of budget expenditures for the fiscal year ...

(By subordinate unit and expenditure category)

(By subordinate unit and expenditure item)

(By expenditure item and broken down by month)

Form 10: Budget expenditure plan for each quarter of the fiscal year ...

(By expenditure item)

Form 05: Final accounts of budget revenues and expenditures for the fiscal year ...

Form 04: Summary of final accounts of budget expenditures for the fiscal year ...

(By retained revenue sources for expenditure)

Form 06: Final accounts of construction investment expenditures for the fiscal year ...

(By expenditure item and broken down by month)

Form 10: Budget expenditure plan for each quarter of the fiscal year ...

(Within regular expenditures)

Hoang Ngoc Nhất

(in regular expenses)

(By expenditure item and broken down by month)

Form 10: Budget expenditure plan for each quarter of the fiscal year ...

Hoang Ngoc Nhat (Signed)

Pham Van Trong (Signed)