Joint Circular No. 19/2008/TTLT-BTC-BTP guides the establishment, management, use, and settlement of funds to ensure the operation of civil enforcement agencies and Asset Management and Liquidation Teams of enterprises and cooperatives in bankruptcy.

JOINT CIRCULAR

Guidelines for the establishment, management, use, and settlement of funds ensuring the operation of civil enforcement agencies and the Management and Liquidation Organization of assets of enterprises and cooperatives in bankruptcy.

Activities of civil enforcement agencies and the Management and Liquidation Organization of assets of enterprises and cooperatives in bankruptcy.

Enterprises and cooperatives entering a state of bankruptcy.

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Pursuant to the Civil Enforcement Law dated January 14, 2004;

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

Pursuant to Decree No. 67/2006/NĐ-CP dated July 11, 2006 of the Government guiding the application of the Bankruptcy Law to special enterprises and organizations, and the activities of the Management and Liquidation Organization of assets;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 62/2003/NĐ-CP dated June 6, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Justice;

The Ministry of Finance and the Ministry of Justice jointly issue guidelines for the establishment, management, use, and settlement of funds ensuring the operation of civil enforcement agencies and the Management and Liquidation Organization of assets of enterprises and cooperatives in bankruptcy as follows:

I. OBJECTS AND SCOPE OF APPLICATION

1. This Circular guides the establishment, management, use, and settlement of funds ensuring the operation of civil enforcement agencies and the Management and Liquidation Organization of assets of enterprises and cooperatives in bankruptcy (hereinafter referred to as the Management and Liquidation Organization of assets).

For funds to enforce civil enforcement actions, they shall be implemented according to the provisions of Joint Circular No. 68/2006/TTLT-BTC-BTP dated July 26, 2006 of the Ministry of Finance and the Ministry of Justice.

2. Funds ensuring the operation of civil enforcement agencies are guaranteed by the state budget from retained fees for civil enforcement actions as prescribed by competent authorities and from other sources as provided by law (if applicable).

3. According to Clause 8, Article 20 of Decree No. 67/2006/NĐ-CP dated July 11, 2006 of the Government guiding the application of the Bankruptcy Law to special enterprises and organizations, and the activities of the Management and Liquidation Organization of assets, funds ensuring the operation of the Management and Liquidation Organization of assets are sourced from the revenue of bankrupt enterprises and cooperatives. The Management and Liquidation Organization of assets may temporarily borrow funds from the civil enforcement agency. When proceeds are obtained from the disposal of assets of bankrupt enterprises and cooperatives, the Enforcement Officer must process the refund of the borrowed amounts to cover the costs of the Management and Liquidation Organization of assets' operations.

4. Funds for the operation of civil enforcement agencies and the Management and Liquidation Organization of assets must be used for their intended purposes and objects in accordance with current financial expenditure standards, and must comply with regulations on reporting and settling expenditures as prescribed by law.

II. CONTENTS OF EXPENSES, EXPENSE LEVELS, BUDGET ESTIMATION, AND SETTLEMENT OF FUNDS FOR CIVIL ENFORCEMENT AGENCIES AND THE MANAGEMENT AND LIQUIDATION ORGANIZATION OF ASSETS

1. Contents and levels of expenses for the operation of civil enforcement agencies:

a) Items of expenditure:

- Expenses for payment to individuals: salaries, wages, allowances, contributions based on salary (social insurance, health insurance, trade union fees), bonuses, collective welfare, and other payments to individuals as prescribed.

- Expenses for public services, office supplies, information, publicity, communication, rental fees, purchase of books and materials for work.

- Expenses for domestic conferences, travel expenses, expenses for foreign trips, and reception of foreign delegations, expenses for organizing training and specialized professional courses.

- Specialized professional expenses, including:

+ Expenses for uniforms for civil enforcement officers;

+ Transportation and accommodation allowances, and rental fees for lodging for those not receiving government salary who participate in enforcement verification and notification work at the request of the civil enforcement agency;

+ Rental fees for local guides and ethnic language interpreters (if necessary) during the enforcement verification and notification process;

+ Rental fees for protective equipment and medical supplies;

+ Rental fees for fire prevention facilities (if necessary);

+ Rental fees for venues and means of transportation for asset valuation and sale;

+ Rental fees for asset storage and preservation;

+ Expenses for destroying evidence;

+ Rental fees for asset value appraisal and verification;

+ Expenses for publicizing civil enforcement actions through mass media;

+ Allowances for participants in civil enforcement work;

+ Other specialized professional expenses as prescribed.

- Expenses for regular maintenance and major repairs of fixed assets.

b) Amount of expenditure:

- These expense items for the operation of civil enforcement agencies are carried out in accordance with the expenditure standards and regulations issued by competent authorities, specifically as follows:

+ Conference expenses are carried out in accordance with current regulations on conference expenditure standards for state agencies;

+ Expenses for home and mobile phone usage are carried out in accordance with current regulations on the standards and quotas for home and mobile phone usage in administrative agencies, public institutions, and political-social organizations;

+ Transportation and accommodation allowances, and rental fees for lodging (including those not receiving government salary involved in enforcement verification and notification processes) are carried out in accordance with current regulations on travel expenses for state officials, civil servants, and employees on official business;

+ Reward expenses are carried out in accordance with current regulations on reward expenditure standards;

+ Uniform expenses for civil enforcement officers are carried out in accordance with current regulations on the management and issuance of Enforcement Officer cards, uniforms, and insignia for civil enforcement officers;

+ Other expenses are carried out in accordance with internal expenditure regulations of the unit. In cases where the unit has not established such regulations, current regulations shall apply.

- Some specialized expenses in civil enforcement work have specific expenditure levels as follows:

+ Allowance for subjects not receiving salary from the state budget when participating in the verification process, enforcement announcement, and urgent temporary decision enforcement: The maximum allowance is 25,000 VND/person/session.

For subjects not receiving salary from the state budget when participating in the verification process and enforcement announcement, if they have already received accommodation allowance according to regulations, they shall not receive this allowance.

+ Allowance for members participating in asset valuation meetings (excluding forced execution asset valuation): The maximum allowance is 25,000 VND/person/session.

+ Allowance for enforcement officers directly participating in the examination and reduction of litigation fees and fines: The maximum allowance is 30,000 VND/session/person.

- For other expenses: Renting means of transportation and equipment for protection, fire prevention and extinguishing costs, medical expenses; renting venues and means for asset valuation and sale; renting storage, custody, and preservation of evidence and assets for enforcement; transportation rental, purchase cost of raw materials, and other reasonable actual expenses... based on contracts, invoices, and valid expense documents according to regulations and approved by the head of the civil enforcement agency.

2. Contents and levels of expenditure to ensure the operation of the Asset Management and Liquidation Team:

a) Items of expenditure:

- Conference and domestic travel expenses for supervising and inspecting the use of assets by enterprises.

- Venue and means rental for organizing the auction of assets of bankrupt enterprises and cooperatives.

- Office supplies, information dissemination, and purchasing materials for work purposes (if applicable).

- Rental for asset and document preservation, accounting books, and seals of bankrupt enterprises and cooperatives subject to liquidation procedures.

- Remuneration for the Team Leader and members of the Asset Management and Liquidation Team.

b) Amount of expenditure:

Expenditure contents serving the activities of the Asset Management and Liquidation Team are implemented according to the financial expenditure standards and regulations issued by the competent authority, specifically as follows:

- Conference and travel expenses are carried out according to current regulations on conference organization expenditure and travel expenses in state agencies.

- Remuneration for the Team Leader and members of the Asset Management and Liquidation Team of bankrupt enterprises and cooperatives: The maximum remuneration is 25,000 VND/person/session; In cases of overtime or holidays, payment will be made according to the night shift and overtime pay system stipulated in Circular Joint No. 08/2005/TTLT-BNV-BTC dated January 5, 2005, issued by the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the night shift and overtime pay system for officials, civil servants, and public employees.

- For other expenses: Renting means, venue rental for selling assets and goods; rental for storage, custody, and preservation of assets and documents, transportation rental, and other reasonable actual expenses... based on contracts, invoices, and valid expense documents according to regulations and approved by the head of the civil enforcement agency.

3. Advance payment for expenses ensuring the operation of the Asset Management and Liquidation Team:

a) Funding for the operation of the Asset Management and Liquidation Team is sourced from the revenue of the bankrupt enterprise or cooperative.

While not yet able to collect money from the disposal of the enterprise's assets, the civil enforcement agency shall advance funding for the operation of the Asset Management and Liquidation Team from the budget allocated by the competent authority.

b) Advance payment procedure: When the Enforcement Officer has a decision to serve as the Team Leader of the Asset Management and Liquidation Team, the Enforcement Officer bases on the content and level of expenditure stipulated in point a, b clause 2 Section II of this Circular to prepare and submit to the head of the civil enforcement agency for approval of the budget for funding the operation of the Asset Management and Liquidation Team. Based on the approved budget, the Enforcement Officer processes the advance payment for the operation of the Asset Management and Liquidation Team.

c) Advance repayment procedure: When collecting funds from the bankrupt enterprise or cooperative, the Enforcement Officer must immediately process the repayment of the advanced funds used for the operation of the Asset Management and Liquidation Team.

4. Budget preparation, execution, and settlement:

The preparation, execution, and settlement of the budget for the operation of the civil enforcement agency and the budget for the operation of the Asset Management and Liquidation Team are carried out according to the provisions of the State Budget Law, Accounting Law, and related implementing documents.

III. EFFECTIVE DATE OF IMPLEMENTATION

This Circular takes effect 15 days after its publication in the Official Gazette. Any issues encountered during implementation should be reported to the Ministry of Finance and the Ministry of Justice for study, amendment, and supplementation as appropriate./.