Circular No. 160/2011/TT-BTC amending and supplementing Circular No. 56/2007/TT-BTC dated June 8, 2007 of the Ministry of Finance guiding the management and distribution of uniforms; the establishment and use of funds amounting to 2% of actual payments made to the State Budget discovered by the State Audit Agency.

CIRCULAR

Amending and supplementing Circular No. 56/2007/TT-BTC dated June 8, 2007

of the Ministry of Finance guiding the management, allocation, and issuance of uniforms;

establishing and using funds derived from 2% of the actual amount paid into the State budget discovered by the State Audit Agency;

 into the State budget discovered by the State Audit Agency;

Pursuant to Article 67 of the Law on State Audit regarding the operating expenses of the State Audit Agency;

Pursuant to Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly approving the salary scale and position allowances for leaders of the State Audit Agency; the salary, allowances, and uniforms for officials and civil servants of the State Audit Agency; preferential treatment for state auditors;

Pursuant to Resolution No. 794/2009/NQ-UBTVQH12 dated June 22, 2009 of the Standing Committee of the National Assembly amending and supplementing preferential treatment for officials, civil servants, and workers of the State Audit Agency issued together with Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly;

Pursuant to Decree No. 162/2006/NĐ-CP dated December 28, 2006 of the Government on salary systems and uniform regulations for officials, civil servants, and public employees of the State Audit Agency and preferential treatment for state auditors;

Pursuant to Decree No. 32/2011/NĐ-CP dated May 16, 2011 of the Government amending and supplementing Decree No. 162/2006/NĐ-CP dated December 28, 2006 of the Government on salary systems and uniform regulations for officials, civil servants, and public employees of the State Audit Agency and preferential treatment for state auditors;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

The Ministry of Finance guides the amendment and supplementation of certain provisions in Circular No. 56/2007/TT-BTC dated June 8, 2007 of the Ministry of Finance guiding the management, allocation, and use of uniforms for officials and civil servants of the State Audit Agency; establishing and using funds derived from 2% of the results of annual audit recommendations discovered and proposed by the State Audit Agency (hereinafter referred to as the 2% fund) as follows:

Article 1: Amending and supplementing certain provisions in Circular No. 56/2007/TT-BTC dated June 8, 2007 as follows:

1. Clause 1, Section II is amended and supplemented as follows:

"1. The bases for deducting 2% of the amount discovered and recommended by the State Audit Agency according to Resolution No. 794/2009/NQ-UBTVQH12 and Decree No. 32/2011/NĐ-CP include:

a) Additional revenue to the State budget from taxes, fees, and other revenues due to non-declaration, under-declaration, incorrect declaration, or late payment by entities responsible for declaring and paying the State budget, which reduces their obligation to pay the State budget, discovered and recommended by the State Audit Agency, and actually paid into the State budget.

b) Improper expenditures that have been returned to the State budget (for expenditures that have been settled), including: (i) Incorrect unit prices or quantities for construction projects; (ii) Using State budget funds for purposes not within the scope of State budget expenditures; (iii) Using State budget funds allocated for non-autonomous units (administrative agencies) or non-recurring units (public institutions) for purposes that should be funded by autonomous or recurring State budget allocations; (iv) Units reporting incorrect data leading to higher budget allocations and payments than they are entitled to according to regulations; (v) Retaining State budget funds that should be remitted to the State budget.

c) Improper expenditures (as specified in point b above) that have been processed by competent authorities to reduce expenditures and refunds to the State budget in the following year, including:

- Expenditures by budgetary units or units receiving budgetary funding that were improperly spent and are currently being reported for final settlement to competent authorities; the State Audit Agency has discovered and recommended, and the competent authorities have processed to reduce final settlements to the State budget.

- Improper expenditures for ongoing programs, projects, and construction investments that are still being settled with the State budget; the State Audit Agency has discovered and recommended, and the competent authorities have processed to reduce settlements to the State budget in the following period or year."

2. Clause 2, Section II is amended and supplemented as follows:

"2. Responsibilities of agencies and units and bases for deducting the 2% fund:

a) For the State Audit Agency and its Audit Teams:

- When compiling audit results, the Audit Teams prepare a detailed summary table of recommendations corresponding to the contents stipulated in Clause 1 of this Article:

+ Recommendations for payments to the State budget concerning taxes, fees, and other revenues.

+ Improper expenditures to be refunded to the State budget.

+ Improper expenditures that have been processed to reduce expenditures and refunds to the State budget in the following year.

- At the same time, in the audit conclusions, the Audit Teams must clearly require that when units implement the State Audit Agency's recommendations for payments to the State budget, reductions in State budget expenditures, and deductions from next year's budget estimates, they must clearly record the content and amount of the audit recommendation in the audit report (number, date, month, year) and the letter (number, date, month, year) from the State Audit Agency sent to the State Treasury on the payment voucher submitted to the State Treasury where the audited unit conducts transactions.

- Annually, based on reports from audited units and reports on the implementation of audit recommendations by the State Audit Agency, the State Audit Agency compiles a Summary Table of Audit Recommendation Implementation Results for the Year (Annex No. 01 attached) nationwide and sends it to the State Treasury (both in writing and as a data file) for verification and confirmation.

b) For audited units:

- Audited units must accurately record the economic substance on the payment vouchersFor example, the specific content and amount in dong; implement according to the audit recommendation in the Audit Report (number, date, month, year) and the letter (number, date, month, year) of the State Audit Agency. and send to the National Treasury. - Annually, units subject to audit shall compare and prepare reports on the amounts implemented based on audit recommendations during the year and submit them to their superior management units, which shall compile comprehensive reports on the implementation of audit recommendations to the State Audit Agency, detailing each document and content implemented.

c) Local financial and tax authorities shall annually coordinate with the National Treasury to verify the implementation of audit recommendations from the State Audit Agency for units under their jurisdiction, serving as the basis for preparing reports on the results of implementing audit recommendations.

d) For units with authority to allocate budgets: When allocating budgets or investment plans with reduced allocations based on State Audit Agency recommendations, they must clearly specify the content and reduced funds in the budget allocation decision. (Annex No. 01 attached) đ) The National Treasury (where units subject to audit implement audit recommendations), based on the content recorded on the documents of the audited unit, shall record to serve the verification and confirmation of the results of implementing audit recommendations from the State Audit Agency.

Annually, based on the Summary Table of Results of Implementing Audit Recommendations for the Year provided by the State Audit Agency, the National Treasury shall direct subordinate units to verify, confirm, and aggregate nationwide

and submit to the State Audit Agency and the Ministry of Finance.

e) Based on the report on the results of implementing audit recommendations prepared by the National Treasury, the Ministry of Finance shall deduct 2% of the amount already paid into the state budget and the amount spent in excess of regulations that have been processed for reduction in spending and payment from the following year's budget for the State Audit Agency. (Annex No. 01 attached) The deduction of 2% for the amounts identified and recommended through the state budget audit in 2008, 2009, and 2010 shall be carried out in accordance with this Circular." (Annex No. 01 attached) 3. Clause 3, Section II shall be amended and supplemented as follows:

"3. Regarding the use of the 2% funding source:

The 2% funding source derived from audit activities shall be used for the following purposes:

a) To provide incentives and bonuses to officials, civil servants, and employees from the 2% funding source, not exceeding 0.8 times the salary grade, position, including allowances ranging from 15% to 25%, depending on the category as stipulated in Resolution No. 1003/2006/NQ-UBTVQH11 of the Standing Committee of the National Assembly.

b) The remaining funds after providing incentives and bonuses to officials, civil servants, and employees of the State Audit Agency shall be used for investing in physical infrastructure and enhancing the capacity of operations in the sector.

The provision of bonuses and incentives to officials, civil servants, and employees as specified in this clause shall take effect from July 1, 2009".

This Circular shall take effect from January 1, 2012. Other provisions regarding the management, issuance, and use of the 2% funding source on the amount actually paid into the state budget discovered by the State Audit Agency, as stipulated in Circular No. 56/2007/TT-BTC dated June 8, 2007, issued by the Ministry of Finance, shall remain effective.

During the implementation process, if there are difficulties or obstacles, please reflect them to the Ministry of Finance for study and resolution within its authority./.

The award and incentive payments for officials, civil servants, and employees as provided for in this clause shall be implemented from July 1, 2009.

Article 2: This Circular takes effect from January 1, 2012. Other provisions set forth in Circular No. 56/2007/TT-BTC dated June 8, 2007, issued by the Ministry of Finance, guiding the management and distribution of uniforms; the establishment and utilization of funds amounting to 2% of actual tax revenues paid into the State budget as identified by the National Audit Office, shall remain in force.

In the course of implementation, if there are difficulties or obstacles, it is requested that agencies and units report them to the Ministry of Finance for study and resolution within their authority./.