Circular No. 18/2006/TT-BTC guiding the expenditure control regime for state agencies implementing the self-management and self-responsibility regime regarding staffing and administrative management expenses.

CIRCULAR

Guidelines for the control of expenditures for state agencies implementing the self-management and self-responsibility regime for the use of staffing and administrative management budgets.

Implementing Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and Circular Joint No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime for the use of staffing and administrative management budgets for state agencies; the Ministry of Finance guides the control of state budget expenditures through the State Treasury for state agencies implementing the self-management and self-responsibility regime for the use of staffing and administrative management budgets as follows:

and administrative management expenses

Pursuant to Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and Circular Joint Circular No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime for the use of staffing levels and administrative management expenses for state agencies; the Ministry of Finance guides the budget expenditure control system through the State Treasury for state agencies implementing the self-management and self-responsibility regime for the use of staffing levels and administrative management expenses as follows:

I. GENERAL PROVISIONS

1. This Circular guides the control of state budget expenditures through the State Treasury for state agencies directly using administrative management budgets provided by the state budget, having separate accounts and seals granted by authorized state agencies to allocate staffing and administrative management budgets (hereinafter referred to as self-managed units), including:

- Ministries, agencies equivalent to ministries, government agencies; Office of the National Assembly, Office of the President; People's Courts at all levels; People's Procuracy at all levels; Office of the People's Council, Office of the People's Committee, specialized agencies under the People's Committees of provinces and centrally-administered cities; Office of the People's Council, Office of the People's Committee, specialized agencies under the People's Committees of districts, towns, counties, and centrally-administered cities.

- People's Committees of communes and wards permitted by the Chairman of the People's Committee of a province or centrally-administered city or the Chairman of the People's Committee of a district, town, county, or centrally-administered city (authorized by the Chairman of the People's Committee of a province or centrally-administered city) to implement the self-management and self-responsibility regime for the use of staffing and administrative management budgets according to Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government.

- Agencies under the Communist Party of Vietnam, political and social organizations allocated staffing and administrative management budgets if they decide to implement the self-management and self-responsibility regime for the use of staffing and administrative management budgets for state agencies according to Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and Circular Joint No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs.

- State agencies currently piloting the allocation of staffing and administrative management budgets according to Decision No. 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister, from 2006 onwards will implement the self-management and self-responsibility regime for the use of staffing and administrative management budgets for state agencies as stipulated in Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and Circular Joint No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs.

Agencies under the Ministry of National Defense, the Ministry of Public Security, the State Cryptography Administration, and Vietnamese representative offices abroad receiving administrative management budgets from the state budget are not subject to this Circular.

2. Principles for managing, allocating, and settling state budget expenditures (including both sources allocated for the self-management regime and sources allocated without the self-management regime) through the State Treasury:

2.1. All state budget expenditures must be checked and controlled during the allocation and settlement process. Expenditures must be included in the state budget estimates assigned by the competent authority, in accordance with the prescribed budget expenditure standards, norms, or internal regulations of the unit and approved by the head of the self-managed unit or the authorized person.

2.2. All state budget expenditures must be recorded in Vietnamese Dong, according to the fiscal year, level of budget, and current state budget classification. Expenditures in foreign currency, in-kind, or labor days must be converted and recorded in Vietnamese Dong according to exchange rates, prices of in-kind assets, or labor day rates prescribed by the competent state authority.

2.3. During the management, settlement, and finalization of state budget expenditures, any incorrect expenditures must be recovered. Based on the decision of the financial agency or the competent state authority, the State Treasury shall recover such expenditures for the state budget.

3. Responsibilities and authorities of agencies and units in managing, allocating, and settling state budget expenditures.

3.1. The superior supervisory agency:

- Assign detailed budget estimates for state expenditures to subordinate units implementing the self-management regime into two parts: the general part of the budget estimate for the self-management regime and other items; the part of the budget estimate not for the self-management regime divided into four groups of items as specified in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. Adjust the assigned budget estimates for subordinate units to implement the self-management regime according to current regulations.

- Guide, direct, urge, and inspect subordinate units to implement the self-management regime for the use of allocated staffing and administrative management budgets according to prescribed regulations.

3.2. Units implementing the self-management regime:

3.2. Self-managed units:

- The head of the unit shall proactively arrange and utilize the allocated funds to implement the self-management regime according to the contents and requirements of the assigned tasks in order to complete the mission, ensure economy and effectiveness; shall decide on specific expenditure levels for each task within the scope of the funds allocated by the competent authority to implement the self-management regime, but the maximum level shall not exceed the current expenditure regulations, standards, and norms set by the competent state agencies (in cases where expenditure ranges are specified, they shall not exceed the specific expenditure levels prescribed by the Minister, the heads of central agencies, or the Chairpersons of the People's Committees at provincial and centrally-administered city levels). In case of violation, disciplinary action, administrative penalties, or criminal liability will be imposed depending on the nature and severity of the violation as stipulated by law.

3.3. The State Treasury shall be responsible for supervising the files and vouchers and promptly disbursing and settling expenditures from the state budget that meet the conditions for settlement as prescribed. Participate with financial agencies and competent state management agencies in inspecting the use of the state budget and confirming the expenditures from the state budget processed through the State Treasury of units implementing the self-management regime.

The State Treasury has the right to temporarily suspend, refuse to settle and disburse payments, and notify the units implementing the self-management regime and the financial agency; at the same time, it shall bear responsibility for its decisions in the following cases:

- Expenditure not in accordance with the purpose and target group as stipulated in the approved budget.

- Expenditure not in accordance with the expenditure regulations, standards, and norms set by the competent state agencies.

- Not meeting the conditions for expenditure as stipulated in Point 1.3, Clause 1, Section II of this Circular.

II. SPECIFIC PROVISIONS

1. Supervision and settlement of administrative management expenses allocated to implement the self-management regime:

1.1. Sources of administrative management expenses allocated to implement the self-management regime include:

- State budget funds allocated.

- Fees and charges retained under the prescribed regime to ensure the operation of the fee collection machinery as stipulated by the competent authority (excluding fees and charges retained for purchasing fixed assets and other provisions if applicable). For this source of funding, the unit must open an account at the State Treasury and be subject to the State Treasury's inspection and supervision over the collection and expenditure of fees and charges in accordance with national regulations on fees and charges.

- Other lawful revenues as prescribed by law.

1.2. Contents of administrative management expenses allocated to implement the self-management regime include:

- Payments to individuals: salaries, wages, allowances; contributions based on salary, bonuses, collective welfare, and other payments to individuals as prescribed;

- Professional service expenses: public service payment expenses; rental expenses; office supplies expenses; information, propaganda, communication expenses; conference expenses; domestic travel expenses; entry expenses; special expenses of the industry, uniform purchase expenses (as prescribed by the competent state agencies); professional service expenses of each industry; regular maintenance expenses of fixed assets serving professional work.

- Purchase and acquisition of assets, equipment, means, and materials (excluding fixed asset purchase and major repair expenses prescribed in Point 2.1, Clause 2, Section II of this Circular);

- Other regular expenses belonging to the content of the self-management regime implementation expenses;

- Expenses serving the work of fee and charge collection as prescribed, including: expenses for direct fee and charge collectors (salaries, wages, contributions based on salary), bonus fund, welfare fund for direct fee and charge collectors; expenses directly serving the work of fee and charge collection (office supplies, telephone, electricity, water, travel expenses, official business expenses); regular maintenance expenses of machinery and equipment serving direct fee and charge collection work, purchase and acquisition expenses of materials and other expenses related to fee and charge collection.

1.3. Conditions for disbursement and settlement:

The State Treasury shall only disburse and settle the funds allocated to implement the self-management regime for units when the following conditions are met:

- Having been allocated a budget estimate by the competent state agency to implement the self-management regime in accordance with the specific regulations;

+ Regarding the authority to allocate the budget estimate: The competent state agency allocating the budget estimate is the superior managing agency (first-level budget unit or second-level budget unit authorized by the first-level budget unit); People's Committees at all levels or financial agencies at the same level authorized by the People's Committee. Specifically for commune level, it is the decision on budget allocation by the Commune People's Committee.

+ Regarding the form of the budget estimate: The budget estimate allocated to units implementing the self-management regime must be separated into two parts: the part of funds for implementing the self-management regime allocated into different expense categories; the part of funds not implementing the self-management regime allocated into four expense categories as prescribed in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. In both parts, the competent state agency must separately allocate a savings source of 10% for salary reform.

- In accordance with the regulations, standards, and norms prescribed in the Internal Expenditure Regulations and the Management and Use of Public Assets Regulations, specifically:

+ In cases where units implementing the self-management regime decide to spend beyond the expenditure levels prescribed in the Internal Expenditure Regulations but not exceeding the expenditure levels set by the competent state agency, the State Treasury shall only accept settlement upon receipt of a written request from the head of the unit.

+ In cases where units implementing the self-management regime have not submitted the Internal Expenditure Regulations and the management and use of public assets regulations to the State Treasury where the unit opens an account, the State Treasury shall supervise the spending of the unit according to the current expenditure regulations, standards, and norms set by the competent state agency.

- Having been decided by the head of the unit implementing the self-management regime or the person authorized to make such decisions.

- Possessing complete and lawful documentation and vouchers in accordance with relevant regulations pertaining to each expenditure item (except for travel expense payments as stipulated in Point 5.4 Clause 5 Section I Circular No. 118/2004/TT-BTC dated December 8, 2004 of the Ministry of Finance; and monthly telephone service charges for official telephones at home and mobile phones as stipulated in Circular No. 29/2003/TT-BTC dated April 14, 2003 of the Ministry of Finance). Depending on the nature of each expenditure item, the payment documents and vouchers include:

+ For individual payment items: salary and allowances are lists of individuals receiving salaries (sent at the beginning of the year), changes in staffing levels, and approved payroll funds by competent state authorities (sent with each payment if there are changes). For external labor costs such as wages and fees, contracts between the entity and workers are required.

+ For professional expenditure items, related documents and vouchers for each expenditure item are required.

+ For procurement of assets, equipment, vehicles, and materials, approval decisions on tender results or direct award decisions by competent authorities (in cases where procurement must be conducted through tendering according to regulations), purchase contracts or price quotes from suppliers (for small-value procurements without purchase contracts), sales invoices, and other related documents and vouchers.

+ For other regular expenditure items, a payment voucher signed by the head, chief accountant, or authorized representative, and other related documents and vouchers.

+ For expenditure items serving fee collection, related documents for each expenditure item are required.

1.4. Control and Payment:

1.4.1. Payment Documents:

When there is a need for payment, in addition to documents sent once at the beginning of the year (budget estimates for state budget expenditures; internal expenditure regulations; asset management and utilization regulations,...), entities implementing self-management systems shall submit to the State Treasury at the transaction location the relevant payment documents, materials, and vouchers including:

- A withdrawal form for state budget estimates of the entity clearly stating the expenditure items within the allocated funds for implementing self-management systems and detailed according to the national budget classification as a basis for the State Treasury to control and record state budget expenditures;

- Other documents and vouchers suitable for each expenditure item as stipulated in Point 1.3 Clause 1 Section II of this Circular.

1.4.2. The State Treasury controls the payment documents of the entity, including:

- Controlling and reconciling expenditures against the allocated state budget estimates, ensuring that expenditures are within the state budget estimates approved by competent state authorities for implementing self-management systems;

- Checking the legality and validity of documents and vouchers according to regulations for each expenditure item;

- Verifying that expenditures comply with prescribed state budget expenditure standards, norms, and internal expenditure regulations of the entity.

1.4.3. After reviewing the payment documents of entities implementing self-management systems, the State Treasury will proceed as follows:

- In cases where all conditions for payment are met as prescribed, the State Treasury will make payments to entities implementing self-management systems in accordance with Paragraph 1.5.2 Point 1.5 Clause 1 Section II of this Circular;

- In cases where payment conditions are not fully met but fall under the category eligible for provisional advances, the State Treasury will process provisional advances for entities implementing self-management systems in accordance with Paragraph 1.5.1 Point 1.5 Clause 1 Section II of this Circular;

- In cases where payment conditions are not met as prescribed, the State Treasury has the right to refuse payment and notify the entity implementing the self-management system accordingly; while bearing responsibility for its decision to refuse payment.

1.5. Payment Methods:

Payments are made in two forms: provisional advances and settlements.

1.5.1. Provisional Advances:

a) Eligible for Provisional Advances:

- Administrative management and professional expenditure items that have not yet met settlement conditions;

- Temporary allocation of additional income from savings;

- Procurement of assets, equipment, vehicles, and materials that have not yet met settlement conditions or provisional advances under contracts.

b) Amount of Provisional Advance:

The amount of provisional advance depends on the nature of each expenditure item as proposed by entities implementing self-management systems and consistent with the implementation progress. The maximum provisional advance amount shall not exceed the allocated state budget estimate for the entity to implement self-management systems.

c) Procedure for Provisional Advances:

- Entities implementing self-management systems shall submit to the State Treasury relevant documents and materials for each expenditure item as stipulated in Point 1.3 Clause 1 Section II of this Circular, along with a detailed withdrawal form for state budget estimates (provisional advance) down to chapters, types, items, and sub-items of the national budget classification, clearly stating the provisional advance content for the State Treasury to base its resolution and follow-up during provisional advance settlement;

- The State Treasury will check and control the contents of the documents and materials, and if they meet the prescribed conditions, it will process provisional advances for the entity.

d) Settlement of Provisional Advances:

When settling provisional advances, entities implementing self-management systems are responsible for submitting to the State Treasury a detailed request for provisional advance settlement down to chapters, types, items, sub-items, and minor items of the national budget classification, accompanied by relevant documents and vouchers for the State Treasury to control and settle.

- If the conditions are met as prescribed, the State Treasury will settle provisional advances for the entity:

+ If the requested settlement amount exceeds the provisional advance amount: based on the entity's request for settlement, the State Treasury will process the conversion from provisional advance to settlement (the provisional advance amount) and require the entity to issue a withdrawal form for state budget estimates to provide supplementary settlement (the difference between the requested settlement amount and the provisional advance amount).

If the payment request amount is less than the amount temporarily advanced: based on the temporary advance payment request form of the unit implementing the self-management regime, the State Treasury shall process the transfer from the temporary advance to payment (by the amount of the temporary advance payment request) and continue to monitor the remaining temporary advance amount of the unit (the difference between the temporary advance amount and the payment request amount).

In cases where the temporary advance has not met the conditions for payment, units implementing the self-management regime may make payments in the following month or quarter. After December 31 each year, the temporary advance amount from the administrative management budget allocated to implement the self-management regime that has not completed the necessary payment procedures shall be continued to be paid during the period of adjusting the final accounts and settled into the previous fiscal year's budget. If the adjustment period for the final accounts has ended but the payment procedures have still not been completed, that temporary advance amount will be carried over to the next year along with the corresponding budget source being transferred to the next year (this part of the budget cannot be determined as savings transferred to the next year) for settlement and payment into the next year's budget.

1.5.2. Payment:

a) Payment items include:

- Personal expenditure items;

- Expenditure items meeting the conditions for direct payment;

- Temporary advances meeting the conditions for conversion from temporary advance to payment.

b) Payment amount:

The payment amount is based on the state budget disbursement documents and vouchers according to the request of the unit implementing the self-management regime. The maximum payment amount must not exceed the state budget estimate for the year assigned by the competent state agency for the unit to implement the self-management regime (including unrecovered temporary advances).

c) Payment procedure:

When there is a need for payment, the units implementing the self-management regime shall submit relevant payment documents, materials, and vouchers to the State Treasury in accordance with the prescribed regulations;

The State Treasury shall check and control the validity and legality of the documents and vouchers; compare them with the assigned state budget estimates. If they meet the conditions stipulated in Point 1.3 Clause 1 Section II of this Circular, direct payment will be made to the suppliers of goods and services or through the unit implementing the self-management regime.

1.6. Control and payment for certain major expenditure items:

1.6.1. Personal payment items:

The State Treasury shall control these expenditures as follows:

- For rank and position salaries and living allowances: based on the salary payment list, compared with the registration roster, salary fund, and living allowance for the year (or the adjusted registration form approved by the competent state agency of the unit implementing the self-management regime, the State Treasury pays the unit to pay the beneficiaries according to current regulations.

- For payments to external individuals: based on the state budget estimate assigned by the competent state agency for the unit to implement the self-management regime; payment content according to economic contracts or labor contracts; the state budget estimate withdrawal form of the unit, the State Treasury directly pays to the beneficiary or through the unit to pay the beneficiary.

- For additional income payments to cadres and civil servants from savings funds: based on the state budget estimate withdrawal form of the unit (specifying the additional income payment from savings funds) and the provisions at Subpoint g Clause 2 Section II of Circular No. 03/2006/TTLB-BTC-BNV dated January 17, 2006 issued by the Ministry of Finance and the Ministry of Home Affairs, the State Treasury checks to ensure that the additional factor of the salary fund does not exceed 1.0 (one) times the state-prescribed rank and position salary level, specifically:

During the year, after completing the previous quarter, if it is found that the unit has the potential to save funds; the head of the unit bases on the estimated savings amount to issue a state budget estimate withdrawal form (advance) to temporarily pay additional income to cadres and civil servants in the unit quarterly; the State Treasury implements the advance payment according to the head of the unit's proposal within the assigned budget limit and not exceeding 60% of the rank and position salary fund of the unit for one quarter.

At the end of the fiscal year, after the unit determines the actual savings amount, based on the unit's payment request for the advance (for additional income payments), the State Treasury processes the payment of additional income to the unit and recovers the advanced funds. If the unit has exceeded the actual savings amount in the advance, the State Treasury allows the advance to be carried over to the next year for recovery by reducing it from the unit's savings in the next year.

1.6.2. Professional business expenditure items:

Based on the estimate assigned by the competent state agency for the unit to implement the self-management regime, the state budget estimate withdrawal forms into related documents and vouchers for each expenditure item; the State Treasury shall compare with the expenditure conditions stipulated in Point 1.3 Clause 1 Section II of this Circular, the standards and quotas specified in the internal expenditure regulation of the unit for each work content to control and pay to the unit, but the maximum amount must not exceed the current standards, quotas, and regulations set by the competent state agency. If the unit implementing the self-management regime requests expenditures exceeding the standards, quotas, and regulations stipulated in the internal expenditure regulation, but not exceeding the limits set by the competent state agency or the unit has not submitted the internal expenditure regulation to the State Treasury, then the State Treasury shall control the expenditure according to the provisions in Point 1.3 Clause 1 Section II of this Circular.

In cases where the expenditure items do not meet the conditions for payment, the unit shall request the State Treasury to provide an advance according to the regulations.

1.6.3. Expenditures for purchasing assets, equipment, means of transportation, and supplies:

- Based on the budget estimate assigned by the competent state agency for the unit to implement the self-management regime, the budget withdrawal form (for payment) and related documents and vouchers; the State Treasury shall compare with the conditions for expenditure as stipulated in Point 1.3 Clause 1 Section II of this Circular, check according to the regulations of the State on procurement methods (tendering, competitive bidding, direct assignment...), if it meets the prescribed conditions, then proceed with direct payment by bank transfer to the supplier of goods or services, or pay in cash (for small-value expenditures) through the unit implementing the self-management regime to pay the supplier of goods or services.

- In cases where the expenditures do not meet the conditions for direct payment, the State Treasury shall provide provisional advances to the unit implementing the self-management regime.

+ Based on the budget withdrawal form (for provisional advance) and related documents and vouchers of the unit implementing the self-management regime, the State Treasury shall provide provisional advances by bank transfer to pay the supplier of goods or services, or pay in cash to the unit implementing the self-management regime for the unit to pay the supplier of goods or services.

+ After making payments, the unit implementing the self-management regime shall be responsible for settling the provisional advances with the State Treasury according to the prescribed regulations. Based on the documents and vouchers attached to the request for settlement of provisional advances from the unit, the State Treasury shall conduct checks and controls, if it meets the payment conditions specified in Point 1.3 Clause 1 Section II of this Circular, then proceed with the procedure to convert provisional advances into payments for the unit as stipulated in Item 1.5.1 Point 1.5 Clause 1 Section II of this Circular.

1.6.4. Control of expenditures serving fee and charge collection work:

Based on the revenue and expenditure system, fee and charge regulations, and internal expenditure rules of the unit, the State Treasury shall control and make payments to the unit, ensuring compliance with the content of expenditures and not exceeding the limits set by the competent state agency.

1.6.5. Control and payment for other expenditures:

Other expenditures within the scope of the self-management regime's allocated funds but not included in the above four categories, the State Treasury shall control and make payments to the unit as follows:

- For expenditures that meet the conditions for direct payment, the State Treasury shall examine and control the documents and vouchers, and the conditions for expenditure according to the prescribed regulations and make direct payments to the supplier of goods or services;

- For expenditures that cannot be directly paid: based on the state budget estimate assigned by the competent state agency to implement the self-management regime and the budget withdrawal form (for provisional advance), the State Treasury shall provide provisional advances to the unit. At the beginning of the following month, no later than the 5th day of each month, the unit must prepare a list of payment vouchers along with related documents and submit them to the State Treasury to process the provisional advance settlement. Based on the list of payment vouchers and checking against the standards, quotas, and expenditure regulations stipulated in the unit's internal expenditure rules, and related documents and vouchers, if it meets the prescribed conditions, the State Treasury shall process the conversion from provisional advance to payment for the unit. The unit shall bear full responsibility under the law for the legality and validity of the payment documents and its spending decisions.

1.7. Control and payment for the use of administrative management expense savings:

Administrative management expense savings can only be used for the following purposes:

+ Supplement income for cadres and civil servants according to the additional salary fund coefficient, but not exceeding 1.0 (one) times the salary fund calculated based on the salary level and position stipulated by the State;

+ Expenditure for rewarding collectives and individuals with outstanding achievements;

+ Expenditure for welfare activities within the organization;

+ Expenditure for emergency hardship assistance for employees, including those who have retired or lost their health;

+ If it is deemed that the savings capacity is unstable, the unit implementing the self-management regime may allocate part of the savings to establish a Stability Income Reserve Fund;

- Based on the internal expenditure rules, the decision of the head of the unit implementing the self-management regime regarding the use of savings and the notification of the annual budget settlement review (audit) by the competent state agency, the State Treasury shall control and make payments to the unit.

2. Control and payment for funds allocated without implementing the self-management regime:

2.1. The contents of funds allocated without implementing the self-management regime include:

- Expenditures for major repairs of fixed assets, expenditures for purchasing large-value fixed assets that regular funding cannot cover, funding for implementing equipment and working tool supply projects approved by the competent authority (if applicable);

- Expenditures for annual contributions to international organizations, counterpart funds for projects under agreements (if applicable);

- Expenditures for urgent tasks assigned by the competent authority; funding for urgent tasks assigned by the competent authority after the unit has been allocated funds to implement the self-management regime; funding arranged to carry out special tasks such as support, training, and allowances for organizations and individuals outside the agency as prescribed; funding for organizing large international conferences and seminars arranged with separate funding;

- Funding for implementing national target programs;

- Funding for reducing the number of staff;

- Funding for cadre and civil servant training;

- Research funding;

- Capital investment for basic construction projects approved.

2.2. Control and payment: The State Treasury shall control and make payments for funds allocated without implementing the self-management regime to the unit according to the current regulations on controlling regular expenditures; capital construction expenditures and operating funds with the nature of capital construction.

3. End-of-year fund processing:

- For funds allocated to implement the self-management regime:

The remaining advance payment balance shall continue to be settled during the period for adjusting the final accounts and settling the accounts within the state budget fiscal year in accordance with the regulations. In cases where the adjustment period for final accounts has expired but the conditions for settlement have not been met, the unit shall submit a written request to the State Treasury at the transaction location to transfer the advance payment together with the corresponding funding source to the following year for settlement and finalization within the state budget fiscal year of the following year (this portion of funds shall not be considered as the unit's savings transferred to the following year).

The remaining budget estimate for self-management funds and savings of the unit shall be carried over to the following year for continued use. Based on the remaining budget estimate, the results of savings, and the situation regarding the use of savings, the State Treasury shall implement the transfer of the remaining budget estimate and unused savings to the following year for the unit.

For funds allocated without implementing the self-management regime, any unspent balances at the end of the year shall be handled according to current regulations.

4. Accounting entries and finalization:

For expenditures under the self-management regime, units and the State Treasury shall make accounting entries in accordance with the provisions of the state budget classification (chapter, type, clause, section, sub-section). For additional income payments to civil servants, these shall be recorded under item 108; rewards expenses shall be recorded under item 104; welfare and additional allowances outside the general policy for those voluntarily retiring during labor restructuring shall be recorded under item 105. For the establishment of a reserve fund for stabilizing income, when the unit sets up the fund, it shall be recorded under sub-item 16 of item 134 of the state budget classification; when the unit withdraws expenses from this fund, the State Treasury and the unit shall make accounting entries in accordance with the actual expenditure items corresponding to each content of the fund.

Units implementing the self-management regime and the State Treasury shall record and finalize expenditures in accordance with the expenditure items of the state budget classification; the confirmation of actual expenditures according to the state budget classification by the State Treasury at the transaction location serves as the basis for the unit to prepare the finalization report to be submitted to the superior administrative management agency and the same-level financial agency.

III. IMPLEMENTATION

1. This Circular shall take effect fifteen days from the date of publication in the Official Gazette; it replaces the provisions on expenditure control for units implementing the expenditure quota system as stipulated in Circular No. 81/2002/TT-BTC dated September 16, 2002, issued by the Ministry of Finance, guiding expenditure control for administrative agencies implementing the quota system for personnel establishments and administrative management expenses; and for units applying the financial system applicable to revenue-generating public institutions.

2. Ministries, ministerial-level agencies, agencies under the Government, People's Committees at all levels, administrative management agencies implementing the self-management and self-responsibility system for the use of personnel establishments and administrative management expenses for state agencies, financial agencies, and the State Treasury shall be responsible for organizing guidance and implementation of this Circular./.