Circular No. 164/2011/TT-BTC on managing cash receipts and payments through the State Treasury system

CIRCULAR

Provisions on managing cash receipts and payments through the State Treasury system

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Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 161/2006/NĐ-CP dated December 28, 2006 of the Government on cash payment transactions;

Pursuant to Decision No. 108/2009/QĐ-TTg dated August 26, 2009 of the Prime Minister on the functions, tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance;

Pursuant to Decision No. 291/2006/QĐ-TTg dated December 29, 2006 of the Prime Minister approving the non-cash payment plan for the period 2006-2010 and orientations until 2020 in Vietnam;

Pursuant to Directive No. 20/2007/CT-TTg dated August 24, 2007 of the Prime Minister on paying salaries through bank accounts for individuals receiving salaries from the state budget;

To strengthen management of the state budget fund and promote non-cash payments in the economy, the Ministry of Finance guides the management of cash receipts and payments through the State Treasury as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

2. Applicability:

This Circular stipulates the management of cash receipts and payments through the State Treasury system.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

Units using the state budget, units transacting with the State Treasury, communes, wards, towns (hereinafter collectively referred to as transaction units) that have activities involving cash receipts and payments through the State Treasury system must comply with current state regulations on cash management and the contents directed in this Circular.

Article 2. Management of Cash within the State Treasury

1. The management of cash within the State Treasury system shall be carried out according to the cash reserve limit to ensure the needs for cash payment and disbursement within a certain period at each State Treasury unit, specifically as follows:

a) The cash reserve limit of State Treasuries shall be determined according to the following formula:

Where:

- The number of working days in the planned quarter is defined as 65 days.

- The reserve limit number is determined by the Director of the Provincial State Treasury (hereinafter collectively referred to as the Provincial State Treasury) depending on the cash disbursement tasks in the quarter and the number of transactions related to cash deposits and withdrawals between the State Treasury and the bank where the account is opened.

b) The cash reserve limit of the District, County, City, and Town State Treasuries (hereinafter collectively referred to as the County State Treasury) and the Provincial State Treasury Office shall be determined and announced by the Director of the Provincial State Treasury.

c) The Provincial State Treasury Office, the State Treasury Transaction Office, and the County State Treasuries may use cash receipts generated at the State Treasury to meet the cash payment and disbursement needs of transaction units, ensuring that they do not exceed the cash reserve limit announced by the Provincial State Treasury.

2. The State Treasury manages cash within the State Treasury system to ensure the cash payment and disbursement needs of transaction units; simultaneously, it actively coordinates with the branch of the State Bank or commercial bank where the account is opened to fully and promptly meet the cash needs of the State Treasury.

Article 3. Principles for managing cash receipts and expenditures

1. Principles for managing expenditures:

a) For State Treasury: Carry out payments for the expenditure items of the transaction units according to the principle of transferring funds directly from the transaction unit's account at the State Treasury to the account of the goods and service provider or salary recipient from the state budget at the bank, except for cases permitted to make cash payments as stipulated in Article 5 of this Circular.

b) For transaction units: When making payments for purchasing goods and services to organizations, entities, or individuals with accounts at banks, transaction units must make payments through non-cash payment methods, except for small-value expenditures not exceeding five million dong per item.

2. Principles for managing receipts: All units, organizations, and individuals with accounts at banks or the State Treasury, when performing obligations to pay into the state budget, must prioritize non-cash payment methods.

Chapter II

SPECIFIC PROVISIONS

Section I

MANAGEMENT OF CASH RECEIPTS AND EXPENDITURES THROUGH THE STATE TREASURY SYSTEM

Article 4. Organization of Cash Receipts

1. Organization of cash receipts at the State Treasury:

a) The organization of state budget receipts through the State Treasury in cash is carried out in accordance with Circular No. 128/2008/TT-BTC dated December 24, 2008, issued by the Ministry of Finance on guiding the collection and management of state budget revenues through the State Treasury.

b) For other cash receipts: Based on the content of the cash payments, the payer prepares the necessary documents for submission; the State Treasury organizes the receipt of cash and processes the relevant documents according to the prescribed regulations.

2. Organization of cash receipts at transaction units:

a) When there are cash receipts of state budget revenues (such as fees, charges, etc.), transaction units must promptly deposit all cash received into the State Treasury where the transaction unit is located according to the prescribed regulations; transaction units may not retain state budget revenues in cash for their own use, except as permitted under the prescribed regulations.

In cases where the State Treasury has entrusted commercial banks to collect state budget revenues in cash, transaction units may deposit cash into the commercial bank where the State Treasury has an account or at the State Treasury where the transaction unit is located.

b) For certain cash receipts generated at units managed through the state budget such as tuition fees, medical fees, etc., these units are allowed to open a dedicated collection account at a commercial bank and entrust that bank to collect on their behalf. Dedicated collection accounts opened by units at commercial banks can only be used to aggregate tuition fees, medical fees, etc.; they cannot be used for payments or other purposes.

To entrust commercial banks to collect on their behalf, units must develop specific plans to report to the competent authority for approval to implement, including the following details:

- The selected bank to open a dedicated collection account and handle collections on behalf;

- Methods and procedures for organizing the collection of tuition fees, medical fees, etc., by the commercial bank and the transaction unit;

- Financial plans including: costs of entrusting collection, interest rates on the balance of the dedicated collection account of the transaction unit at the bank, etc., ensuring the principle that the costs of entrusting collection do not exceed the interest earned on the dedicated collection account of the unit at the bank.

The entrustment of units to commercial banks to collect on their behalf must ensure the following principles:

- Entrusting commercial banks to collect tuition fees, medical fees, etc., must facilitate the payment process for those paying such fees; simultaneously, it must reduce workload for the accounting staff of the unit and minimize costs associated with organizing the collection and payment of tuition fees, medical fees, etc.

- Regularly collected tuition fees, medical fees, and other fees must be transferred and deposited fully and promptly into the account of the transaction unit opened at the State Treasury. Units must closely cooperate with commercial banks to carry out collections and issue invoices and receipts to payers in accordance with regulations. Periodically (maximum five working days), units must complete the procedure to transfer the entire balance on the dedicated collection account at the commercial bank to the unit's account at the State Treasury for management in accordance with regulations. Units must manage and use revenue sources in compliance with current regulations. If a transaction unit fails to comply with the prescribed time limit for transferring money from the dedicated collection account at the commercial bank to the unit's account at the State Treasury, the State Treasury where the unit's account is located will send a letter to the competent authority of the unit requesting the unit to close the dedicated collection account at the commercial bank and directly deposit the collected cash into the State Treasury.

- Interest on the dedicated collection account and other financial benefits (if any) are part of the unit's income. Management and use of these incomes shall be carried out in accordance with current state regulations.

Article 5. Contents for Cash Payments

The transaction units are permitted to make cash payments for the following expenses:

1. Personal payment items such as: salaries; wages; salary supplements; student scholarships; bonuses; collective welfare; expenditures for village cadres in office; expenditures related to revolutionary merit holders and social work; retirement pensions and social allowances; other personal payments.

In cases where personal payments must be made by bank transfer for individuals receiving salaries from the state budget according to mandatory regulations, the State Treasury shall implement as stipulated in Article 7 of this Circular.

2. Construction investment expenses, including: direct compensation payments to residents for land clearance; procurement costs for materials sourced from local people's exploitation and supply, approved by local authorities and project investors for commune-level construction projects (including procurement costs by investors for distribution to construction units); construction costs for community-built projects.

3. Certain tasks for units under the Ministry of National Defense, Ministry of Public Security, and the Government Cryptographic Office, including: secret funds; prisoner maintenance costs and other regular cash expenses.

4. Debt repayment to citizens (limited to bond payments, retail treasury bills issued through the State Treasury system to individuals; cash payments for temporarily detained gold, precious stones, and personal effects to their original owners).

5. Purchase of food reserves (limited to direct purchases from residents by the National Reserve Agency; excluding purchases through General Companies and Food Companies settled by bank transfers).

6. Small-value transactions not exceeding five million dong per transaction; other transactions by transaction units to suppliers without bank accounts, except those requiring public bidding as regulated.

Article 6. Registration for Cash Withdrawals at the State Treasury

1. Transaction units with the State Treasury that need to withdraw cash from the State Treasury on a given day (one or multiple transactions) exceeding the specified limit must register with the State Treasury managing their account one working day in advance regarding the amount and time of withdrawal so that the State Treasury can prepare and provide sufficient cash promptly. Specifically:

a) The cash withdrawal amount requiring registration with the State Treasury:

- For transaction units with the provincial State Treasury, withdrawals of 200 million dong or more.

- For transaction units with the district State Treasury, withdrawals of 100 million dong or more.

b) Transaction units must register their daily cash withdrawal needs or for different payment days, specifying the amount and time of each withdrawal.

c) Cash withdrawal registration with the State Treasury is conducted in writing or by phone with authorized staff at the respective State Treasury (Director or authorized representative for provincial State Treasuries; Director for district State Treasuries).

2. If a transaction unit does not register for cash withdrawal with the State Treasury as required in Clause 1 of this Article and requires cash withdrawal from a commercial bank where the State Treasury has an account, after controlling state budget expenditure and cash payment according to established procedures, the State Treasury will issue a check for cash withdrawal to be handed over to the transaction unit to withdraw cash from the commercial bank where the State Treasury has an account.

Management and use of checks issued by the State Treasury and handed over to the transaction unit for cash withdrawal at the bank shall comply with the provisions of Decree No. 159/2003/ND-CP dated December 10, 2003 of the Government on check supply and use; Decision No. 30/2006/QD-NHNN dated July 11, 2006 of the Governor of the State Bank on check supply and use regulations and any subsequent amendments, supplements, or replacements.

The transaction unit is responsible for accurately recording the recipient's information on the check (name; address; ID card number and date of issuance) on withdrawal documents and account holder's introduction letters (or authorized representative); simultaneously, when receiving the check for cash withdrawal at the State Treasury, the recipient must sign receipt on the check stub retained by the State Treasury.

A check for cash withdrawal issued by the State Treasury to a transaction unit is equivalent to the State Treasury making a cash payment to the transaction unit. The transaction unit bears full responsibility for managing, safeguarding, and using the check and cash received from the commercial bank, ensuring security, compliance with the purpose of expenditure, and the amount accepted for payment by the State Treasury.

Article 7. Payment and individual disbursement through accounts

1. Scope of application:

a) Officials, civil servants, and employees under administrative state agencies, public institutions, political organizations, socio-political organizations, occupational socio-political organizations, social organizations, and occupational social organizations receiving salaries from the state budget; contractual officials receiving salaries from the state budget (excluding temporary labor contracts, project-based contracts, and lump-sum contracts).

b) Officers, non-commissioned officers, professional military personnel, defense workers, workers, and laborers under armed forces of the Ministry of National Defense and the Ministry of Public Security who have registered for salary disbursement through bank accounts (forces within the Secret, Top Secret, and Absolute Secret categories, as defined by the national secret directory, will implement appropriate payment methods; individuals working in remote areas, border regions, islands, and other far-flung areas will implement this when conditions permit).

c) Other individuals receiving salaries from the state budget.

2. Contents of disbursement through accounts:

- Salaries, wages, and additional allowances.

- Bonuses and collective welfare benefits.

- Supplementary income; telephone expenses for positions with standards; travel expense allowances and other payments to individuals (excluding unstable expenditures).

3. Implementation timeline: The State Treasury shall coordinate with the State Bank and commercial banks to survey the actual service supply situation of commercial banking systems at each location, report to the Ministry of Finance for consideration and decision on mandatory implementation areas for individual payment and disbursement through accounts in accordance with actual circumstances.

4. Process for payment and individual disbursement through accounts:

Step 1: The transaction unit signs a contract with a commercial bank to use personal payment services for its officials and civil servants.

Step 2: Based on the signed contract with the transaction unit, the commercial bank provides procedures to open a settlement account for the transaction unit and individual settlement accounts for each official and civil servant of the transaction unit.

Step 3: When there is a need to pay or disburse to officials and civil servants within the unit, the transaction unit prepares and submits complete payment documentation to the State Treasury for the procedure of controlling state budget expenditure and cash payment according to regulations. Based on the transaction unit's request, the State Treasury controls and, if appropriate, processes the transfer of funds into the transaction unit's settlement account opened at the commercial bank.

Step 4: Based on the monthly individual disbursement list of the unit and the balance in the settlement account, the commercial bank processes the transfer of funds from the unit's settlement account to the individual settlement accounts of each official and civil servant of the transaction unit.

Article 8. Payment by "purchase credit card" method

1. Scope of implementation: In addition to expenditures for basic construction investment, procurement of work equipment and facilities, and other expenditures that must be tendered, based on the ability to provide "purchase credit card" payment services and the network of acceptance points (POS points) of commercial banking systems, transaction units may independently decide to use the "purchase credit card" payment method for remaining expenditures.

2. Implementation process:

Step 1: The transaction unit processes the signing of a contract with a commercial bank to obtain and use a "purchase credit card".

Step 2: Officials of the transaction unit go to acceptance points to purchase goods and services.

Step 3: Upon reaching the credit card payment due date, based on the statement of the "purchase credit card" account sent by the commercial bank, the transaction unit reconciles with the purchase invoices retained at the unit (invoices printed at POS points when purchasing goods and services). If they match correctly, the transaction unit prepares two copies of the payment voucher form (attached to Circular No. 79/2003/TT-BTC dated August 13, 2003 of the Ministry of Finance) along with a budget withdrawal request form to submit to the State Treasury for the procedure of controlling state budget expenditure according to the regulations of the Ministry of Finance (as stipulated in Circulars No. 79/2003/TT-BTC dated August 13, 2003; No. 18/2006/TT-BTC dated March 13, 2006; No. 81/2006/TT-BTC dated September 6, 2006; No. 84/2007/TT-BTC dated July 17, 2007; No. 153/2007/TT-BTC dated December 17, 2007; No. 172/2009/TT-BTC dated August 26, 2009).

The transaction unit does not need to send purchase invoices printed at POS points to the State Treasury; meanwhile, the transaction unit must bear responsibility for the accuracy of the contents of the expenditures recorded on the submitted payment voucher forms to the State Treasury.

Step 4: Based on the payment documentation proposed by the transaction unit (payment voucher form, budget withdrawal request form), the State Treasury checks and controls, and if it meets the conditions for state budget expenditure according to regulations, it bases on the budget withdrawal request form to record state budget expenditure; simultaneously, it processes bank transactions to transfer funds into the transaction unit's "purchase credit card" account to settle goods and services purchased by the transaction unit.

Article 9. Fees

The fees for opening personal settlement accounts – ATM accounts (if applicable); transferring salaries to individual accounts of workers; issuing credit cards for purchasing goods and annual fees thereof shall be borne by transaction units. These fees are budgetary expenditures and shall be recorded under sub-item 7756 "other expenses and fees of budgetary units" (other expenditure items, sub-items for fees and charges of budgetary units).

PART II

RESPONSIBILITIES OF AUTHORITIES AND UNITS IN THE MANAGEMENT AND USE OF CASH

Article 10. Responsibilities of transaction units

1. Transaction units are responsible for timely and fully remitting state budget revenues collected in cash (fees, charges, etc.) to the State Treasury in accordance with Article 4 of this Circular.

2. Transaction units must make payments in cash in accordance with the payment purposes specified in Article 5 of this Circular. In cases where transaction units request payment in cash to suppliers without bank accounts, they must clearly indicate on the payment request forms (such as budget withdrawal and cash receipt forms; village budget expenditure orders and cash receipt forms; etc.) that the supplier does not have a bank account, and bear responsibility for the accuracy of the information recorded on these documents.

For payments required to be made through bidding procedures, transaction units must make payments by bank transfer to suppliers.

3. Transaction units are solely responsible for the accuracy and confidentiality of the data on individual payment lists (names, account numbers, amounts to be paid, etc.) sent to commercial banks for individual payments via accounts; and the consistency of the content and data on documents submitted to the State Treasury with those sent to commercial banks for individual payments.

4. When using the "purchase credit card" payment method, transaction units are solely responsible for managing, using, and securely storing the "purchase credit card"; and must complete payment procedures according to the agreed payment deadlines with the commercial bank where the card account is opened.

Article 11. Responsibilities of the State Treasury

1. State Treasury units at provincial and district levels must strictly adhere to the cash reserve limits announced. If actual cash reserves exceed the announced limit, State Treasury units must deposit the excess cash into their bank accounts at the beginning of the next working day, except when approved in writing by the Provincial State Treasury Director.

Heads of State Treasury units are responsible for supervising and urging compliance with cash reserve limits within their units; and will be held accountable to higher-level State Treasury heads if cash reserve limits are exceeded or cash losses occur within their units.

2. State Treasuries at provincial and district levels must monitor and process cash payments to transaction units concurrently with the monitoring of state budget expenditures, based on legitimate and valid payment documents, ensuring compliance with regulations; and are responsible for guiding transaction units to comply with the regulations on cash management and payment through State Treasuries as stipulated in this Circular.

3. State Treasuries have the right to refuse to process and pay cash payments and notify transaction units accordingly; and are responsible for their decisions in the following situations:

- Transaction units request cash payments for expenditures not permitted under the cash payment purposes specified in Article 5 of this Circular.

- Making cash payments for individual settlements to units required to implement individual payment and settlement systems through accounts.

4. State Treasury units must proactively coordinate with provincial branches of the State Bank or commercial banks where accounts are opened to ensure timely and full provision of cash.

In special cases, if provincial State Treasuries need to transfer funds in cash to district State Treasuries, they must accurately determine the cash payment needs and necessary cash reserve levels to plan cash transfers closely aligned with actual requirements, ensuring no idle funds and the liquidity of each State Treasury unit. Cash transfers between provincial and district State Treasuries are carried out according to the fund transfer mechanism within the State Treasury system.

Chapter III

IMPLEMENTATION

Article 12. Effective Date

1. This Circular takes effect from January 1, 2012, replacing Circular No. 33/2006/TT-BTC dated April 17, 2006, issued by the Ministry of Finance. Provisions on the management of cash receipts and payments through the State Treasury system in previous documents that conflict with this Circular are no longer effective.

2. Units within the State Treasury system and transaction units dealing with State Treasuries are responsible for implementing this Circular./.