Circular No. 165/2015/TT-BTC guides the management and distribution of uniforms and preferential treatment for the State Audit Agency; the establishment and use of funds amounting to 5% of the actual amounts paid into the state budget as identified and recommended by the State Audit Agency.

CIRCULAR
 Guidelines on management and allocation of uniforms and preferential treatment for State Audit of Vietnam; establishment and utilization of funds amounting to 5% of the money paid into the State budget
identified and recommended by the State Audit of Vietnam
deduct five percent from the amount already paid into the state budget
as identified and recommended by the State Audit Agency

Pursuant to the Law on State Audit of Vietnam regarding the operating expenses of the State Audit of Vietnam;

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 of Vietnam; the salary scale, allowances, and uniforms for officials and civil servants of the State Audit of Vietnam; 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 of Vietnam issued together with Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly;

Pursuant to Resolution No. 670a/2013/NQ-UBTVQH13 dated October 14, 2013 of the Standing Committee of the National Assembly amending the percentage ratio of funds to be extracted and utilized from the money identified and recommended by the State Audit of Vietnam as stipulated in Resolution No. 794/2009/NQ-UBTVQH12 dated June 22, 2009 of the Standing Committee of the National Assembly;

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

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

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

Pursuant to Decree No. 02/2015/NĐ-CP dated January 2, 2015 of the Government amending and supplementing certain articles of Decree No. 162/2006/NĐ-CP dated December 28, 2006 of the Government on salary system and uniform allocation for officials, civil servants, and employees of the State Audit of Vietnam and preferential treatment for state auditors;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Ministry of Finance issues this Circular to guide the management and allocation of uniforms and preferential treatment for the State Audit of Vietnam; establishment and utilization of funds amounting to 5% of the money paid into the State budget identified and recommended by the State Audit of Vietnam (hereinafter referred to as the 5% fund).

Article 1. Scope of Regulation and Applicability

1. Scope of application:

This Circular stipulates the management and allocation of uniforms for officials and civil servants under the State Audit of Vietnam and preferential treatment for the State Audit of Vietnam; establishment and utilization of the 5% fund including:

a) The establishment and utilization of the 5% fund;

b) Officials and civil servants under the State Audit of Vietnam shall be allocated uniforms for use when performing official duties;

c) Officials, civil servants, employees, and workers under the State Audit of Vietnam shall enjoy preferential treatment.

Article 2. Uniform regulations for officials and civil servants

1. Officials and civil servants under the State Audit of Vietnam shall be allocated uniforms for use when performing official duties according to the quantity and usage period of uniforms prescribed in Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly, Session XI.

The form, color, and style of uniforms in the State Audit of Vietnam shall be determined by the Chief State Auditor.

The State Audit Agency shall deduct 5% from the total amount identified and recommended by the State Audit Agency that has been implemented according to Article 3 of Decree No. 66/2018/NĐ-CP dated May 12, 2018 of the Government stipulating preferential policies for officials, civil servants, public employees, and workers of the State Audit Agency, including:

Article 2. Uniform regulations for officials and civil servants

2. Principles of allocation:

a) The allocation and use of uniforms must be in accordance with the purpose and target groups as prescribed by the State Audit of Vietnam; records must be kept to track the management and allocation of uniforms to each official and civil servant to ensure accuracy and avoid confusion or duplication;

b) If uniforms are damaged or lost due to objective reasons, they will be replaced. In cases where damage or loss occurs without justifiable reasons, individuals must register to obtain replacements and bear the costs of replacement or purchase their own uniforms to meet the requirements for use when performing official duties;

c) For those who resign, retire, or transfer to other positions before the end of the usage period of the allocated uniforms, there is no need to return them;

d) The Chief State Auditor may decide to provide uniforms for individual officials and civil servants or may consider providing financial assistance for them to purchase their own uniforms based on the cost, standards, and models prescribed by the Chief State Auditor.

3. Based on specific conditions, the Chief State Auditor decides to equip certain types of uniforms in a manner suitable for employees in the units under the State Audit of Vietnam within the budgetary allocation already assigned.

d) The Chief State Auditor may decide to provide uniforms for individual officials and civil servants, or may consider and decide to grant funds for officials and civil servants to purchase uniforms based on the cost, standards, and models prescribed by the Chief State Auditor.

3. Based on specific conditions, the Chief State Auditor shall decide to equip certain types of uniforms for staff members of State Audit Agency's public service units in accordance with appropriate forms within the allocated budget estimate.

Article 3. Amounts to be deducted

The State Audit Office shall deduct 5% from the amount of money identified and recommended by the State Audit Office that has been implemented, including:

1. Increases in state budget revenue from taxes, fees, charges, and other revenues, including:

a) Increases in revenue due to the audited entity's failure to declare, pay, under-declare, evade, or defraud taxes, or violate other regulations on tax payment leading to underpayment of taxes, fees, charges, and other revenues required to be paid to the state budget, or over-refunds according to the law, which have been discovered and recommended by the State Audit Office and subsequently paid into the state budget by the audited entity;

b) Administrative fines and back taxes collected due to violations identified and recommended for collection by the State Audit Office, which have been paid into the state budget by the audited entity;

c) Revenue increases achieved through offsetting methods such as: Adjusting the value-added tax (VAT) deduction claim through adjusting the VAT declaration form; reducing losses through adjusting the corporate income tax final settlement form, thereby increasing corporate income tax; achieving revenue increases through offsetting excess tax payments of corresponding taxes and other offsets as prescribed by law;

d) Revenues collected from entities that were not permitted by law to collect or collected in excess of the prescribed limits, which have been discovered and recommended by the State Audit Office and subsequently paid into the state budget by the collecting entity. Interest accrued and late payment penalties on state budget funds that have been recovered and paid into the state budget.

2. Amounts incorrectly spent from the state budget and returned to the state budget (for settled expenditures), including: (i) Incorrect unit prices, quantities, standards, and other discrepancies related to basic construction projects; (ii) Using state budget funds for purposes not within the scope of state budget expenditures, not in accordance with assigned tasks, incorrect standards, and expenditure norms; (iii) Using state budget funds allocated for non-autonomous use (for administrative agencies) or irregular allocations (for public institutions) for purposes requiring autonomous or regular state budget allocations; (iv) Reporting incorrect data leading to higher budget allocations and disbursements to the entity than it was entitled to according to the law; (v) Retaining and using state budget funds that should have been refunded to the state budget according to the law.

3. Amounts incorrectly spent from the state budget and reduced by authorized authorities, including:

a) Expenditures from the state budget that violate regulations (as specified in Clause 2 above) currently being reported for final settlement to competent state authorities; the State Audit Office identifies and recommends, and the competent authority reduces the final settlement of state budget expenditures;

b) Expenditures from the state budget that violate regulations (as specified in Clause 2 above) still being processed for payment from the state budget; the State Audit Office identifies and recommends, and the competent authority reduces future payments and budget estimates for subsequent periods or years.

4. Excess funds allocated beyond the budgeted amount and from improper sources discovered and recommended by the State Audit Agency that have been recovered and returned to the state budget.

Article 4. Utilization of funds allocated for implementing preferential treatment policies with the State Audit Agency

1. Encouragement and reward expenses for officials, civil servants, employees, and workers shall not exceed 0.8 times the basic salary grade and position, exceeding the established framework and additional allowances at a rate from 15% to 25%, depending on each category as stipulated in Resolution No. 1003/2006/NQ-UBTVQH11 of the Standing Committee of the National Assembly.

2. The remaining funds after providing encouragement and rewards to officials, civil servants, employees, and workers of the State Audit Agency shall be used for investment in material infrastructure, enhancing the capacity of operations within the sector, including:

a) Increasing investment in building working premises for the State Audit Agency; purchasing, repairing assets, machinery, equipment, and transportation means for auditing work;

b) Supplementing training, development, and advanced instruction costs to improve professional skills; organizing study tours both domestically and internationally for auditors, officials, and workers under the State Audit Agency; supplementing research and scientific technology costs, information technology costs, and costs for implementing talent attraction policies; other support costs aimed at enhancing auditing capabilities;

c) Supplementing costs for business activities serving auditing work;

d) Expenses for handling complaints and reports in implementing the conclusions of the State Audit Agency;

d) Providing incentives and encouragement to collectives and individuals inside and outside the State Audit Agency who have actively cooperated in implementing audit recommendations.

Article 5. Responsibilities of agencies and units

1. The State Audit Agency and Audit Teams:

a) When compiling audit results, Audit Teams must prepare a detailed summary table of recommendations, itemized by tax identification number (if available), name, address of the unit, and corresponding contents as specified in Article 3 of this Circular, to be sent to the State Treasury, and simultaneously to the tax management agency (for recommendations increasing tax revenue and other revenues managed by the tax agency):

- Payments to the state budget regarding taxes, fees, and other revenues.

- Expenditures that violate regulations and need to be returned to the state budget.

- Expenditures that violate regulations and have been processed to reduce budget expenditures or payments in the following year.

b) In the audit conclusions, Audit Teams must require units to clearly record on vouchers the content of the recommendation (payment to the state budget, reduction in budget expenditure, reduction in payment...) and the amount implemented according to the audit recommendation in the Audit Report (number, date, month, year). For cases where recommendations involve payments to the state budget, they must simultaneously record "payment to the state budget according to the State Audit Agency's letter" (number, date, month, year) on the payment voucher submitted to the State Treasury where the audited unit conducts transactions;

c) Annually, based on reports from audited units (accompanied by vouchers or confirmation letters from relevant agencies) and reports on the implementation status of audit recommendations by the State Audit Agency, the State Audit Agency prepares a Summary Table of Implementation of Audit Recommendations for the Year(Annex 01 attached) nationwide and send it to the State Treasury (both in text and data file format) for verification and confirmation.

2. For audited units:

a) When implementing audit recommendations, strictly follow the requirements of the State Audit Agency as stipulated in point b, Clause 1 of this Article. If a unit pays money into the state budget before receiving a letter from the State Audit Agency, it must clearly record on the voucher: “payment to the state budget according to the State Audit Agency’s recommendation”. Vouchers implementing audit recommendations should follow the guidance provided in Annex 03 attached to this Circular;

b) If a unit implements an audit recommendation but does not clearly record“implemented according to the State Audit Agency’s recommendation”then the unit must send the State Treasury or tax management agency or local finance agency or authority responsible for budget allocation and approval for confirmation(Annexes 02a, 02b, 02c attached)as stipulated in Clauses 3, 4, and 5 of this Article;

c) In addition to reporting on the implementation of audit recommendations as required by the State Audit Agency, annually when preparing the annual settlement report, audited units must base their report on vouchers implementing audit recommendations or confirmations from related agencies, and submit the report on the amount of recommendations implemented during the year to the superior management unit, which will consolidate and submit a report on the implementation of audit recommendations (detailing each voucher and content implemented) to the State Audit Agency and the Ministry of Finance.

3. Local Financial Agencies, Tax Agencies, Customs: Confirm vouchers implementing audit recommendations for those recommendations that have been implemented as requested by the audited unit; Specifically:

a) Tax and Customs Agencies must confirm(Annex 02b attached):

- Amounts paid to the state budget that have not been fully recorded with the information“payment to the state budget according to the State Audit Agency’s recommendation””.

- Recommendations to adjust the amount of VAT deductible through adjusting the VAT declaration form; implementing loss reduction through adjusting the corporate income tax settlement form; implementing recommendations to increase revenue through offsetting excess tax payments of the corresponding tax and other offsets as prescribed by law, executed by the Tax and Customs Agencies.

b) Financial Agencies must confirm(Annex 02c attached): Increases in revenue, reductions in payments, reductions in settlements, and reductions in budgets.

4. For authorities responsible for budget allocation and settlement approval (annual budget settlement, project completion settlement...):

a) When allocating budgets or capital investment plans with budget reductions according to State Audit Agency recommendations, clearly record the content and amount of budget reduction according to the State Audit Agency’s recommendations as shown on the implementation recommendation vouchers (Annex 03 attached);

b) When approving the annual budget settlement or the project completion settlement with deductions as recommended by the State Audit Agency, the specific content and amount of the deductions must be clearly recorded on the approval document for the settlement.

c) Confirm the vouchers implementing the recommendations of the State Audit Agency for increases in revenue, deductions from payments, deductions from settlements, and deductions from budgets that have been implemented but where the content "implemented according to the recommendation of the State Audit Agency" is not clearly stated on the vouchers. (Annex 02c attached).

5. For State Treasuries at all levels:

a) Local State Treasury (where the audited unit implements the State Audit Office's recommendations):

- Based on the content recorded on the audited unit's documents, record for verification and confirmation of the implementation of the State Audit Office's recommendations;

- Confirm the vouchers implementing the recommendations of the State Audit Agency for recommendations implemented through the State Treasury (depositing into the state budget, reducing expenditures, reducing payments...).(Annex 02a attached).

b) State Treasury: Annually, based on the Summary Table of Implementation Results of Audit Recommendations for the year, and on the basis of the implementation vouchers provided by the audited units and confirmations from related agencies and units supplied by the State Audit Agency,(Annex 01 attached),the State Treasury will reconcile, confirm, and send to the State Audit Agency.

Article 6. Preparation, Management, and Settlement of Funds Allocated

1. Source of funds for uniform procurement:

Annually, based on the recipients of uniforms, the quantity and types of uniforms reaching their service life, the State Audit Agency prepares the budget estimate for purchasing uniforms. The funds for implementing the uniform system for officials, civil servants, and employees of the State Audit Agency are allocated within the annual state budget estimate of the State Audit Agency in accordance with the provisions of the State Budget Law and guiding documents.

2. Source of 5% funds:

a) Annually, at the time of preparing the state budget revenue and expenditure estimates; the State Audit Agency bases its determination of the 5% allocation for the planning year on the estimated actual revenue collected and reported by the State Audit Agency, and incorporates this into the overall revenue and expenditure budget estimate of the State Audit Agency, which is then submitted to the Ministry of Finance for inclusion in the overall state budget estimate for submission to the competent authority for approval in accordance with the State Budget Law and implementing guidelines;

b) At the end of the year, based on the report on the results of implementing audit recommendations, the Ministry of Finance will consider and resolve the difference between the amount allocated based on the actual implementation results exceeding or falling short of the amount allocated in the budget estimate, specifically as follows:

- In cases where the amount allocated based on actual implementation exceeds the amount allocated in the budget estimate for the year, the shortfall will be supplemented in the next year's budget estimate (for example, the shortfall in 2014 will be included in the 2016 budget estimate);

- In cases where the amount allocated based on actual implementation falls short of the amount allocated in the budget estimate for the year, the excess amount allocated will be deducted from the amount to be allocated in the next year (for example, the excess in 2014 will be deducted from the 2016 budget estimate).

3. The management, utilization, and settlement of funds for the uniform system and the 5% source of funds shall be carried out in accordance with the provisions of the State Budget Law and current guiding documents.

Article 7. Effective Date

1. This Circular takes effect from January 1, 2016, and replaces 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 use of sources of funds allocated 2% of the actual revenue deposited into the state budget discovered by the State Audit Agency, and Circular No. 160/2011/TT-BTC dated November 16, 2011, issued by the Ministry of Finance amending and supplementing Circular No. 56/2007/TT-BTC dated June 8, 2007.

2. Based on the report on the results of implementing audit recommendations prepared by the State Treasury, the Ministry of Finance will allocate 5% of the actual revenue deposited into the state budget and the amount of improper expenditures reduced and payments decreased for the State Audit Agency from 2011 according to the recommendations of the State Audit Agency.

3. During the implementation process, if there are difficulties or obstacles, agencies and units are requested to reflect these issues to the Ministry of Finance for study and resolution within their authority.