Circular No. 188/2011/TT-BTC guiding the financial regime for the Telecommunications Administration

CIRCULAR

Guidelines on financial management for the Telecommunications Administration

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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. 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. 43/2006/NĐ-CP dated April 25, 2006 of the Government stipulating the rights to self-management and self-responsibility for the implementation of tasks, organizational structure, staffing, and finance for public service units;

Pursuant to Decision No. 35/2011/QĐ-TTg dated June 27, 2011 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the Telecommunications Administration under the Ministry of Information and Communications;

The Ministry of Finance provides guidelines on financial management for the Telecommunications Administration under the Ministry of Information and Communications as follows:

Article 1. General Provisions

1. The Telecommunications Administration is a state administrative agency, due to its organizational and operational characteristics, it applies a financial mechanism similar to that of a self-financing public service unit taking into account factors such as investment, regular expenses, labor, and salaries according to Decision No. 35/2011/QĐ-TTg dated June 27, 2011 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the Telecommunications Administration under the Ministry of Information and Communications.

The implementation of financial management regulations for the Telecommunications Administration must ensure the following principles:

a) Properly fulfill assigned functions and tasks.

b) Actively utilize allocated financial resources according to the principle of ensuring efficiency, creating conditions for investment in equipment and infrastructure serving professional activities, thriftiness, and prevention of waste.

c) Proactively develop human resources, organize the organizational structure, and build a cadre and civil servant team with appropriate quantity and structure, having high professional qualifications.

d) Ensure the right of the head of the unit to self-management and self-responsibility in organizing work, using labor, and financial resources.

e) Implement transparency and democracy in accordance with the law, ensuring the legitimate rights of cadres, civil servants, and workers.

2. The Telecommunications Administration has the responsibility to open accounting books and organize accounting records to fully track all generated revenue in accordance with the state regulations; timely and fully remit state budget revenues for fees and charges required to be paid according to regulations.

3. The Telecommunications Administration has the right to self-manage and take responsibility for organizing services consistent with its specialized field and capabilities in accordance with the law. The Telecommunications Administration is permitted to participate in tendering activities for service provision according to current legal provisions. Service activities must be organized and accounted for, ensuring profitability, without subsidizing losses from state-assigned activities with profits from business service activities.

Article 2. Financial Sources

1. Telecommunication Management Fees and Charges:

a) Revenue from telecommunication management fees and charges of the Telecommunications Administration (referred to as telecommunication activity fees and charges) is retained for use in supporting the operations of the Telecommunications Administration according to the law, including:

a1) Revenue from licensing, allocation, and use of national telecommunications number pools as stipulated in Decision No. 215/2000/QĐ-BTC dated December 29, 2000 of the Minister of Finance promulgating the fee collection rates for postal and telecommunications operation licenses and Decision No. 76/2006/QĐ-BTC dated December 29, 2006 of the Minister of Finance amending and supplementing Decision No. 215/2000/QĐ-BTC dated December 29, 2000.

a2) Revenue from certification fees for telecommunications equipment conformity as stipulated in Decision No. 89/2004/QĐ-BTC dated November 22, 2004 of the Minister of Finance regarding fees and charges for postal quality management and postal and telecommunications activities.

a3) Revenue from quality inspection fees as stipulated in Decision No. 89/2004/QĐ-BTC dated November 22, 2004 of the Minister of Finance regarding fees and charges for postal quality management and postal and telecommunications activities and Decision No. 24/2007/QĐ-BTC dated April 11, 2007 of the Minister of Finance amending and supplementing Decision No. 89/2004/QĐ-BTC dated November 22, 2004.

a4) Other telecommunication fees and charges.

b) The revenue from telecommunication activity fees and charges specified in point a, Clause 1 of this Article shall be regulated as follows:

b1) Licensing, allocation, and use of national telecommunications number pool fees as stipulated in Decision No. 215/2000/QĐ-BTC dated December 29, 2000 of the Minister of Finance promulgating the fee collection rates for postal and telecommunications operation licenses; the Telecommunications Administration retains 90% for its operations and development of the telecommunications industry; it is responsible for declaring, paying, and settling 10% of the collected fees and charges into the state budget according to the corresponding chapters, types, items, and sub-items of the current State Budget Classification. The regulation on the retention rate from the above fee income will apply until December 31, 2013. The Ministry of Information and Communications is responsible for evaluating the ability to collect and the need for expenditure from the licensing, allocation, and use of national telecommunications number pool fees to determine the retention rate for the next phase, to be submitted to the Ministry of Finance for consideration and decision.

b2) Certification fees for telecommunications equipment conformity and quality inspection fees: implemented according to Article 4 of Decision No. 89/2004/QĐ-BTC dated November 22, 2004 of the Minister of Finance regarding fees and charges for postal quality management and postal and telecommunications activities.

b3) Other telecommunication fees and charges (if any): implemented according to the regulations of the competent state authority.

2. Non-recurring funds from the state budget (if any), including:

a) Funds for implementing national-level, ministry-level scientific and technological tasks, and tasks under the national target program;

b) Funds for implementing tasks ordered by the competent state authority (surveys, planning, investigations, other tasks);

c) Funds for implementing urgent tasks assigned by the competent authority;

d) Funds for implementing personnel reduction policies according to state regulations;

đ) Funds for implementing training and capacity building programs for officials and staff;

e) Centralized state investment capital for basic construction;

f) Counterpart funds for implementing projects assigned by the competent authority;

3. Foreign aid funds.

4. Revenue from service activities as prescribed by law.

5. Other lawful revenues (if any).

Article 4. Contents of Expenditure

1. Regular operating expenses, including:

a) Paying salaries, wages, remuneration, allowances to cadres, civil servants, public officials, and workers according to the state-defined rank-based salary and position; contributions to social insurance, health insurance, trade union fees, unemployment insurance, subsidies, and other individual payments under the current state regime;

b) Renting external services for management and development activities such as renting material and technical facilities, office space, outsourcing expertise from domestic and foreign experts, consulting services, information retrieval, translation, data search and provision, evaluation, and appraisal related to telecommunications management;

c) Training costs for cadres, human resource development training, professional training for provincial departments, telecommunications enterprises, and units both within and outside the industry when collaborating on telecommunications management issues such as developing telecommunications infrastructure, managing subscriber accounts, reconciling subscriber data, managing telecommunications equipment and radio stations;

d) Conference, seminar, and survey expenses domestically and internationally on telecommunications specialties and operations; international cooperation expenses, inbound and outbound delegations; contributions to international telecommunications organizations, organization and dissemination costs for laws, policies, strategies, planning, and telecommunications plans; costs for building and implementing research topics, projects, and enhancing professional capabilities in telecommunications;

đ) Maintenance, repair, and regular upkeep costs for assets, machinery, equipment, and working tools serving the execution of work, services, and fee collection; asset insurance purchase costs;

e) Purchase costs for office supplies, raw materials, and other expenses such as printing, purchasing specialized literature, printing forms, certificates, certification papers, and other publications;

f) External service procurement costs: electricity, water, fuel, security, environmental sanitation, communication, and other outsourced services (if applicable);

Costs for services to resolve disputes, complaints regarding competition, disputes in establishing telecommunications networks and providing telecommunications services, regulating the telecommunications service market according to legal provisions;

Expenses for activities related to telecommunications specialties and operations: drafting regulatory legal documents, supervising the implementation of telecommunications licenses by enterprises, costs for inspecting compliance with regulations on telecommunications tariff management, promotional management, number management, and determining the effectiveness of enterprise telecommunications number usage; costs for evaluating telecommunications service quality and periodic and ad hoc telecommunications connection quality;

Material, fuel, energy costs used in the execution of the Bureau's professional tasks according to assigned functions and responsibilities: testing and certification costs to serve nationwide telecommunications equipment certification and related specialized equipment;

Survey, exploration, inspection, interview, data collection, analysis, and service quality evaluation costs, shared postal and telecommunications infrastructure (including public postal and telecommunications services according to current legal regulations);

Telecommunications costs for flood prevention, rescue, security, and defense activities;

Administrative expenses: office supplies, travel expenses, reception and conference expenses, other administrative management expenses;

Expenses for the operation of the Party organization and mass organizations at the unit;

Other expenses as prescribed to support licensing and fee collection activities;

2. Expenses for service activities include:

Salaries, wages, allowances, social insurance, health insurance, trade union fees, unemployment insurance, depreciation of fixed assets, implemented according to current regulations;

Tax payments as prescribed by law;

Fixed asset rental and repair costs; raw material, fuel, and supply purchase costs, external labor costs; interest payment on loans (if any); other costs based on actual expense receipts ensuring cost recovery and profit;

3. Expenses from non-recurring funds provided by the state budget (if any):

The unit implements expenditure regulations for each non-recurring task assigned by the competent authority (non-autonomous funds).

Article 4. Standards, norms, and expenditure regimes:

1. For management expenditure and regular business expenditure that have standards and norms prescribed by competent state agencies; except for the standards, norms, and expenditure contents stipulated in Clause 3 of this Article; the head of the unit may decide on higher or lower expenditure levels than those prescribed by competent state agencies and such decisions must be included in the Internal Expenditure Regulation of the unit.

2. For expenditure contents with special characteristics or not yet regulated by competent authorities, the unit shall establish norms and expenditure regimes within the Internal Expenditure Regulation to ensure regular operations consistent with the characteristics of management and development activities of the telecommunications industry system and to ensure the principle of economical and effective use of funds. The Internal Expenditure Regulation must be approved and issued by the head of the unit and sent to the State Treasury where the unit has its transaction account for expenditure control purposes. Implementation of the Internal Expenditure Regulation must ensure lawful and valid vouchers and invoices according to regulations, except for items allowed to be settled through lump-sum payments under current regulations.

3. Standards, norms, and expenditure regimes must comply with state regulations:

a) Vehicle usage standards and norms;

b) Housing standards and norms;

c) Standards and norms for equipping official telephones at home and mobile phones;

d) Overseas travel expense allowance;

đ) Foreign reception allowance and organization of international seminars and conferences in Vietnam;

e) Management and use of funds for national target programs;

f) Use of funds for urgent tasks assigned by competent authorities;

g) Policies for streamlining staff establishment (if applicable);

h) Management and use of counterpart project funds and foreign aid funds from the state budget;

i) Management and use of capital investment in construction projects, procurement and major repair expenses for fixed assets according to approved projects. Procurement and major repairs of assets and equipment shall be carried out in accordance with current state regulations on bidding.

Article 5. Utilization of financial activity results for the year and additional income distribution:

1. Annually, after covering all expenses, paying taxes, and other payments as prescribed, the surplus revenue exceeding expenditures of the Telecommunications Administration can be used to establish funds and expended in the following order:

a) At least 65% to establish the Development Fund for Operational Activities. In cases where the increase or decrease in telecommunications fee and charge revenue, or changes in the retained percentage of fees and charges lead to an increase or decrease in retained revenue, the level of fund establishment will be adjusted accordingly.

b) Distribute additional income to employees after establishing the Development Fund for Operational Activities as stipulated in point a of this clause. The total additional income for employees in a year shall be implemented according to the Internal Expenditure Regulation of the Telecommunications Administration. The specific amount of additional income paid to each employee shall be decided by the Director of the Telecommunications Administration after consultation with the trade union organization based on the principle that those with higher productivity and work quality will receive higher additional income.

c) Establish the Reward Fund, Welfare Fund, and Income Stability Reserve Fund. For the Reward Fund and Welfare Fund, the maximum contribution rate shall not exceed three months' average salary, wages, and additional income earned during the year. The level of fund establishment shall be decided by the Director of the Telecommunications Administration according to the Internal Expenditure Regulation of the unit as prescribed.

2. Advance payment before additional income distribution: Based on the financial results of the unit for the quarter and year, to promptly motivate employees to complete assigned tasks, the Director of the Telecommunications Administration may temporarily distribute additional income to employees in the unit. The maximum advance payment per quarter shall not exceed 60% of the remaining surplus revenue after establishing the Development Fund for Operational Activities as prescribed, determined quarterly by the unit.

By the end of the year, before January 31 of the following year, the Telecommunications Administration shall determine the surplus revenue and additional income expenditure funds of the previous year according to the Internal Expenditure Regulation to pay additional income to employees.

After approval of the annual financial settlement by the Ministry of Information and Communications: If the actual surplus revenue exceeds the self-determined surplus revenue and the allowable additional income expenditure is higher than the amount already distributed to employees, the unit may continue to distribute additional income according to the Internal Expenditure Regulation of the unit. If the actual surplus revenue is lower than the self-determined surplus revenue and the amount already distributed to employees exceeds the allowable additional income expenditure, the excess expenditure must be covered by the Income Stability Reserve Fund (if available); if there is still a shortfall after using the Income Stability Reserve Fund, it shall be deducted from the allowable additional income expenditure of the following year.

Article 6. Use of Funds

1. Development Fund for Public Service Activities:

a) Content of Expenditure: Expenditure to develop and enhance public service activities, supplement capital investment in construction of material facilities, office premises; purchase of equipment and working tools; application of scientific and technological progress; expenditure for establishment, management, and exploitation of network systems, databases, and telecommunications information; expenditure to improve technical infrastructure to enhance operational capacity of the unit and the entire management system, supporting the implementation of tasks of the unit (server rooms, storage and management centers, data analysis systems, telecommunications and information technology systems); expenditure to support the development of telecommunications networks and services nationwide; basic and advanced training expenditure to develop human resources for the unit and the entire system.

b) The use of the Development Fund for Public Service Activities shall be decided by the Director of the Telecommunications Administration according to the internal expenditure regulations of the unit. In cases where the Development Fund for Public Service Activities is used for development investment, it must be consistent with the industry development plan approved by the Minister of Information and Communications.

2. Income Stabilization Reserve Fund:

a) Content of Expenditure: The Income Stabilization Reserve Fund is used to ensure income for employees and implement employee benefits and policies as prescribed by the state.

b) The use of the Income Stabilization Reserve Fund shall be decided by the Director of the Telecommunications Administration according to the internal expenditure regulations of the unit. The level of expenditure to ensure income for each employee shall be decided by the Director of the Telecommunications Administration after consultation with the trade union organization, following the principle applicable to additional income payments based on ensuring the implementation of employee benefits and policies as prescribed by competent state authorities.

3. Reward Fund: Used to award regular and special rewards to collectives and individuals within and outside the unit based on work performance and contributions to the unit's activities. The level of reward shall be decided by the Director according to the internal expenditure regulations of the unit.

4. Welfare Fund: Used to construct and repair welfare facilities, fund collective welfare activities for employees in the Administration; provide emergency assistance to employees, including those retiring, and additional funding for employees in the establishment when implementing staff reduction measures. The Director of the Telecommunications Administration decides on the use of the fund according to the internal regulations of the unit.

Article 7. Management of State Assets

The Telecommunications Administration implements the management of state assets in accordance with the Law on Management and Use of State Assets and current guiding documents. For fixed assets used in service activities, depreciation provisions shall be made in accordance with the regulations applicable to state-owned enterprises. The amount of depreciation of fixed assets and revenue from other units using shared premises from the state budget funds shall be retained to supplement the Development Fund for Public Service Activities.

Article 8. Opening Transaction Accounts

The Telecommunications Administration shall open accounts at the State Treasury and commercial banks to reflect the contents of revenue and expenditure, specifically as follows:

1. Open an account at the State Treasury to reflect revenues and remaining expenditures of the Administration as prescribed (excluding the contents specified in Clause 2 of this Article).

2. An account at a commercial bank for:

a) Collection of fees and charges for telecommunications activities to facilitate customers.

b) Expenditure for certain specific purposes, including: Refund of collected amounts to customers (if any); payment of agency service fees, collection on behalf of organizations, annual membership fees for international organizations; expenditure for overseas business trips; expenditures in foreign currency for purchasing specialized equipment and projects involving importation of such equipment from abroad, repair and maintenance costs for specialized equipment requiring repair and maintenance abroad; expenditure for leasing or renting working premises, outsourcing expertise abroad for the unit’s representatives abroad (if any); special expenses and materials for professional activities according to assigned functions and tasks.

For revenues and expenditures on accounts opened at commercial banks, quarterly, the Telecommunications Administration shall prepare a statement of revenue and expenditure transactions during the period and submit it to the State Treasury where the Administration has opened transaction accounts for monitoring. The Telecommunications Administration shall decide the necessary balance to ensure operations and perform special tasks of the Administration according to the permitted expenditure items at the commercial bank; the remaining amount of fees and charges (after deducting the aforementioned expenditures and the necessary balance on the commercial bank account), the Telecommunications Administration shall be responsible for transferring the amount into the account opened at the State Treasury for the State Treasury to monitor and control expenditures for other activities of the Administration in accordance with current regulations.

c) The Telecommunications Administration shall be responsible for:

c1) Monitoring expenditures from the deposit account opened at the commercial bank to ensure that expenditures comply with prescribed regulations. The State Treasury shall not be responsible for monitoring these expenditures.

c2) Declaring, paying, and settling the amount of fees and charges collected (the portion of fees and charges payable to the state budget) in accordance with current regulations.

Article 9. Preparation and allocation of budget estimates

Annually, based on assigned tasks and guidance from financial authorities, the Telecommunications Administration shall prepare financial revenue and expenditure estimates and submit them to the Ministry of Information and Communications for consolidation into the Ministry's overall revenue and expenditure estimates, which will then be submitted to the Ministry of Finance in accordance with regulations. Based on the revenue and expenditure estimates allocated by the competent authority, after receiving written agreement from the Ministry of Finance, the Ministry of Information and Communications shall issue a decision allocating revenue and expenditure estimates to the Telecommunications Administration.

Article 10. Financial reporting, inspection, and public disclosure

1. Preparing financial reports

Annually, the Telecommunications Administration is responsible for preparing financial reports in accordance with current regulations and submitting them to the Ministry of Information and Communications for consolidation into the Ministry's final accounts report, which will be sent to the Ministry of Finance.

The Director of the Telecommunications Administration is responsible under the law for the accuracy and truthfulness of the report.

2. Inspection and approval of financial reports

a) Quarterly and annually, the Telecommunications Administration is responsible for inspecting accounting and reviewing financial reports of subordinate units;

b) The Ministry of Information and Communications is responsible for organizing the review and notification of the final account approval to the Telecommunications Administration.

3. Public disclosure of financial reports

Based on the annual financial report approved by the Ministry of Information and Communications, the Telecommunications Administration shall publicly announce it at the meeting of civil servants and employees of the Administration.

Article 11. Implementation Organization

1. This Circular takes effect from February 1, 2012, and applies to the fiscal year 2012.

2. The provisions at point b, Clause 1, Article 2 of this Circular regarding the management and use of telecommunications number usage fees replace the provisions at Article 1 of Decision No. 76/2006/QD-BTC dated December 29, 2006, amending and supplementing Decision No. 215/2000/QD-BTC dated December 29, 2000, issued by the Minister of Finance concerning the collection of fees and charges for issuing licenses for postal and telecommunications activities in Item 19 of the List of Fees and Charges: "Telecommunications network numbering licensing, allocation, and usage fees" in the Fee and Charge Collection Table accompanying Decision No. 215/2000/QD-BTC dated December 29, 2000, issued by the Minister of Finance. Other provisions on the management and use of telecommunications fees and charges in the aforementioned Decisions remain effective.

3. In the course of implementation, if there are difficulties, please reflect them to the Ministry of Finance for research, consideration, and resolution./.