Circular No. 183/2014/TT-BTC on the management and use of funds allocated for the implementation of a financial mechanism pilot for the Insurance Management and Supervision Department - Ministry of Finance

 CIRCULAR

Regulations on the management and use of funds allocated for piloting financial mechanisms for the Insurance Supervision and Management Department - Ministry of Finance

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

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;

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

Pursuant to the Government Decree No. 130/2005/NĐ-CP dated October 17, 2005 stipulating the self-management and self-responsibility regime regarding staffing and administrative management expenses for state agencies;

Pursuant to the Government Decree No. 117/2013/NĐ-CP dated October 7, 2013 amending and supplementing certain articles of the Government Decree No. 130/2005/NĐ-CP dated October 17, 2005 stipulating the self-management and self-responsibility regime regarding staffing and administrative management expenses for state agencies;

Pursuant to the Prime Minister's Decision No. 53/2014/QĐ-TTg dated September 19, 2014 on piloting financial mechanisms for the Insurance Supervision and Management Department - Ministry of Finance;

At the proposal of the Director of the Administrative and Public Financial Affairs Department,

The Minister of Finance hereby issues this Circular regulating the management and use of funds allocated for piloting financial mechanisms for the Insurance Supervision and Management Department - Ministry of Finance.

Article 1. Scope of Regulation

This Circular guides the management and use of funds allocated for piloting financial mechanisms for the Insurance Supervision and Management Department - Ministry of Finance from January 1, 2015 to December 31, 2019.

Article 2. Applicability

The objects subject to this Circular include:

1. The Insurance Supervision and Management Department under the Ministry of Finance.

2. Agencies, units, and organizations related to the management and use of revenue for supervising insurance business enterprises.

3. For public service units under the Insurance Supervision and Management Department operating from revenue as prescribed in point c, Clause 1, Article 2 of the Prime Minister's Decision No. 53/2014/QĐ-TTg dated September 19, 2014 on piloting financial mechanisms for the Insurance Supervision and Management Department - Ministry of Finance (hereinafter referred to as Decision No. 53/2014/QĐ-TTg), shall implement the self-management mechanism for public service units as prescribed in the Government's Decrees and guiding documents.

Article 3. Sources of annual self-management funds for the Insurance Supervision and Management Department

1. State budget funds ensuring regular operations according to current regulations, including:

a) One-time payment of salary, wages, allowances, and contributions as prescribed by state regulations (social insurance, health insurance, unemployment insurance (if applicable), trade union fees) for staff and indefinite-term contract workers in certain positions as prescribed by law assigned by the Minister of Finance.

b) Regular expenditure funds:

- In 2015, the state budget will allocate regular expenditure funds based on the number of staff assigned and the current state budget allocation standard for administrative management expenses.

- From 2016 onwards, the level of regular expenditure funds provided by the state budget will be determined based on the projected revenue contribution from insurance business enterprises as prescribed in point b, Clause 1, Article 2 of Decision No. 53/2014/QĐ-TTg and the needs for regular operational expenses of the Insurance Supervision and Management Department as stipulated in this Circular.

2. Contributions from insurance business enterprises as prescribed in point b, Clause 1, Article 2 of Decision No. 53/2014/QĐ-TTg.

3. Other lawful sources of funds.

Article 4. Contents of Expenditure

1. Payments to individuals: Salary, wages, allowances, contributions based on salary, bonuses as prescribed for civil servants and employees of the Insurance Supervision and Management Department, collective welfare, and other payments to individuals as prescribed.

2. Administrative management expenses: Expenses for public services, rental costs, office supplies, information, publicity, communication, conference fees, domestic and foreign travel expenses, regular maintenance and repair of fixed assets, and other administrative expenses.

3. Special inspection uniforms.

4. Awards for collectives and individuals (outside the Insurance Supervision and Management Department) who have made direct contributions to insurance management and supervision activities (excluding annual awards as prescribed by the Law on Encouragement and Reward).

5. Strengthened management, supervision, inspection, and auditing expenses:

a) Travel expenses for inspection and auditing teams for enhanced and urgent tasks as required for management and supervision;

b) Information technology application expenses in management and supervision activities;

c) Training, upgrading, and seminar expenses to enhance professional knowledge, language skills, and other relevant knowledge (including training, upgrading, and seminars both domestically and internationally) for staff directly involved in insurance management and supervision work and those related to such work at the Ministry of Finance and relevant organizations and individuals.

d) Expenses for organizing conferences and seminars on the insurance market and enhancing insurance management and supervision capabilities;

đ) Expenses for the operation of the Insurance Supervision and Management Department’s website, annual publication of the Vietnam Insurance Market Yearbook, and Global Insurance Market Newsletter.

6. Special activity expenses:

a) Domestic and international expert hiring expenses: experts in insurance, finance, risk management, corporate governance, calculation...

b) Publicity and dissemination expenses for laws and regulations on insurance and the insurance market.

7. Purchase expenses for assets, equipment, and means of transportation (excluding fixed asset purchase expenses as prescribed in Clause 1, Article 7 of this Circular).

8. Other expenses as prescribed by law.

Article 5. Funding Levels

The expenditure system and expense standards for the Insurance Supervision and Management Department's activities shall be implemented according to the current state regulations. This Circular provides additional guidance on the following matters:

1. Average salary with a maximum salary coefficient not exceeding two times the basic salary level as prescribed by the state (grade, rank, and various allowances, excluding night shift and overtime pay).

The Director of the Insurance Management and Supervision Department decides on the distribution of additional salary based on the principle of fair and reasonable equity, linking salary to work performance and quality, and such decision must be stipulated in the internal expenditure regulation of the unit.

2. Expenditure for infrastructure investment and equipment procurement shall be carried out according to current standards and norms set by the State and the Ministry of Finance; the organization of investment and procurement must comply with the provisions of the law on bidding and the regulations of the Ministry of Finance.

3. Expenditure for information technology application shall be implemented in accordance with Decree No. 102/2009/ND-CP dated November 6, 2009 of the Government on management of investment in information technology applications using state budget funds; Circular Joint No. 19/2012/TTLT-BTC-BTTTT-BKH&ĐT dated February 15, 2012 of the Ministry of Finance, the Ministry of Information and Communications, and the Ministry of Planning and Investment guiding the management and use of funds for information technology application in the activities of state agencies.

4. Expenditure for training and capacity building for officials and civil servants shall be implemented in accordance with Circular No. 139/2010/TT-BTC dated September 21, 2010 of the Ministry of Finance on the preparation of budgets, management, and use of funds from the state budget allocated for training and capacity building for officials and civil servants.

In case of necessity, the Director of the Insurance Management and Supervision Department may decide to invite foreign lecturers, determine the remuneration for foreign lecturers based on agreements with them, ensuring it is consistent with the available budget, and bear responsibility for their decisions.

5. For special expenditures in insurance management and supervision work not specified in the legal documents of competent authorities: The Insurance Management and Supervision Department may apply to determine corresponding expenditure levels for similar tasks already regulated in legal documents, but not exceeding the prescribed expenditure levels and must be stipulated in the internal expenditure regulation of the agency or decided in writing by the Director of the Insurance Management and Supervision Department in cases not covered by the internal expenditure regulation, and the Director shall be responsible for their decisions.

6. Expenditure for serving the operation of the Electronic Information Portal, Global Insurance Market Bulletin, and the Annual Vietnam Insurance Market Yearbook shall be carried out according to the current expenditure system and norms.

7. Expenditure for rewarding teamwork and individual contributions outside the Insurance Management and Supervision Department that directly contribute to insurance management and supervision activities (excluding annual rewards under the Law on Encouragement and Reward): The maximum total expenditure corresponds to one month's salary or wages actually performed by the Insurance Management and Supervision Department in the year. Specific reward amounts for each team or individual shall be decided by the Director of the Insurance Management and Supervision Department.

Article 6. Utilization of saved funds

Annually, after the end of the fiscal year, based on the completion of assigned tasks, the unit determines the saved funds according to point a, Clause 7, Article 3 of Circular Joint No. 71/2014/TTLT-BTC-BNV dated May 30, 2014 of the Ministry of Finance and the Ministry of Home Affairs on the self-management and self-responsibility system for administrative management expenses for state agencies. The saved funds shall be used for the following purposes:

1. Supplementing income for officials and civil servants. The maximum additional fund ratio for salary payment does not exceed 1.0 (one) times the salary grade, rank, and position stipulated by the State. The method of determining and paying additional income shall be carried out according to Clause 8, Article 3 of Circular Joint No. 71/2014/TTLT-BTC-BNV dated May 30, 2014 of the Ministry of Finance and the Ministry of Home Affairs.

2. Expenditure for rewards and welfare:

Total expenditure for rewards and welfare shall not exceed three months' salary and allowances performed in the year.

a) Expenditure for regular or extraordinary rewards for groups and individuals based on work results and contributions beyond the current reward system under the Law on Encouragement and Reward;

b) Expenditure for collective welfare activities: Supporting group activities; supporting holidays, festivals, and commemorative days (Women's Day, Martyrs' Day, Army Day...); providing regular and emergency hardship assistance; meal allowances, uniform costs for officials and civil servants; condolences for bereavements and celebrations; retirement and disability allowances; support for employees when implementing staff reduction; health check-up and medical drug expenses within the agency; construction and repair of welfare facilities;

3. Establishing a reserve fund to stabilize income for officials and civil servants: The contribution level ensures that the balance of the Fund does not exceed three months' salary and allowances performed in the year. The income stabilization reserve fund shall be used in cases where the saved funds are insufficient to ensure stable income for officials and civil servants of the Insurance Management and Supervision Department.

4. Any remaining saved funds (if any) after being used for the purposes specified in this Article shall be transferred to the next year for continued use.

5. The Director of the Insurance Management and Supervision Department shall decide on the plan for using the above-mentioned saved funds in the internal expenditure regulation of the agency after reaching a written agreement with the agency's trade union organization.

Article 7. Non-autonomous allocated funds

In addition to the autonomous allocated funds, each year, the Insurance Management and Supervision Department shall be provided with state budget funds to carry out special tasks, including:

1. Expenditure for purchasing and major repairs of fixed assets according to the project approved by the Minister of Finance.

2. Expenditure for annual fees to international organizations and counterpart funds for projects under agreements (if applicable).

3. Expenditure for training staff in specialized inspection.

4. Funds for streamlining the workforce (if applicable).

5. Research funding.

The content and amount of expenditure for the above funds shall be implemented in accordance with current State regulations.

Article 8. Budget Preparation, Allocation, Transfer, and Settlement

1. On Budget Preparation:

Each year, at the time of preparing the state budget, the Insurance Management and Supervision Department shall base on its revenue capacity and expenditure needs for the planned year to prepare the revenue and expenditure budget to be submitted to the Ministry of Finance (primary budget unit) for review and consolidation into the annual state budget in accordance with the State Budget Law and related guiding documents.

2. On Allocation and Assignment of Budget Estimates:

a) Based on the annual state budget revenue and expenditure plan assigned by the Prime Minister, the Ministry of Finance (primary budget unit) shall allocate the revenue and expenditure budget to the Insurance Management and Supervision Department.

b) Based on the allocated budget, the Director of the Insurance Management and Supervision Department shall propose a budget allocation plan for subordinate units to report to the Minister of Finance (head of the primary budget unit) for review in accordance with regulations. On the basis of the Ministry of Finance's review, the Insurance Management and Supervision Department shall implement the budget transfer to subordinate units in accordance with regulations.

c) If necessary, the Minister of Finance may proactively coordinate the use of revenues specified in points b and c, Clause 1, Article 2 of Decision No. 53/2014/QĐ-TTg within the Insurance Management and Supervision Department.

3. Revenue budget execution management:

The Insurance Management and Supervision Department is allowed to open an account at the National Treasury to receive and use contributions from insurance business enterprises as stipulated in point b, Clause 1, Article 2 of Decision No. 53/2014/QĐ-TTg. The National Treasury shall monitor and control expenditures for the Department's activities from this account in accordance with current regulations.

4. Advance payment for additional income, welfare expenses, and rewards:

a) During the year, the Insurance Management and Supervision Department may temporarily use the autonomous budget it has been allocated to cover additional income, reward activities, and welfare expenses.

b) The level of advance payment:

- To motivate officials, civil servants, and employees to strive to complete their tasks, practice thrift, and combat waste; based on the implementation situation of the previous quarter and the potential for cost savings in the current quarter, the Director of the Insurance Management and Supervision Department may decide to prepay additional income for officials, civil servants, and employees on a quarterly basis, with a maximum of 60% of the salary fund for positions, ranks, and posts prescribed by the State for one quarter of the Insurance Management and Supervision Department.

- During the year, the Insurance Management and Supervision Department shall base on the potential for cost savings to decide to prepay for welfare activities and regular or extraordinary rewards for groups or individuals, and record and track the advance payments.

5. Regarding budget settlement:

a) After the end of the fiscal year, the Insurance Management and Supervision Department shall have the responsibility to reconcile the contribution figures with insurance business enterprises to determine the amount of funds used in accordance with regulations.

b) The settlement of contributions from insurance business enterprises shall be consolidated in the annual settlement of the Insurance Management and Supervision Department.

Article 9. Implementation Organization

1. This Circular takes effect from January 15, 2015, and is implemented from the 2015 fiscal year.

2. Other contents regarding the self-management and self-responsibility system for administrative management expenses not specified in this Circular shall be implemented in accordance with Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014, issued by the Ministry of Finance and the Ministry of Home Affairs.

3. In case the legal regulatory documents cited in this Circular are amended, supplemented, or replaced by other legal regulatory documents, the provisions of the amended, supplemented, or replacing documents shall apply.

4. During the implementation process, if there are any difficulties, please promptly reflect them to the Ministry of Finance for research and supplementary guidance to ensure compliance./.