Joint Circular No. 19-TT-LB stipulates procedures for issuing and controlling salary fund quotas in non-material production sectors.

JOINT CIRCULAR

Regulations on procedures for issuing and controlling salary fund quotas in non-material production sectors

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Implementing Circular No. 36-TTg dated May 7, 1963 of the Prime Minister on management and control of salary fund quotas in non-material production sectors, and following Circular No. 27-TC-TX dated December 5, 1963 of the Ministry of Finance guiding the implementation of the aforementioned circular;

The Joint Ministry of Finance and State Bank hereby stipulates below the procedures for issuing and controlling salary fund quotas for departments, units in non-material production sectors, financial agencies and banks at all levels to implement.

I. PROCEDURES FOR REVIEWING, APPROVING LIMITS AND ISSUING SALARY FUNDS

1. To review and approve salary fund limits (including item 1 "Salary," item 2 "Salary Allowances" in the plan and item 26 "Payment for Other Labor Services" which means "Salary and Allowances Outside the Plan"), financial agencies must base on:

a) Labor quotas and salary fund quotas approved by the Council of Ministers for each Ministry, agency, organization at the central level, and for each region, province, city, from which the administrative committees of regions, provinces, cities have distributed to local agencies and organizations;

b) Registers of personnel present and receiving salaries at the beginning of the year and supplementary registers if any (accompanied by relevant legal documents such as decisions on recruitment, transfer, promotion, termination, adjustment of salaries, increase in allowances, etc.);

c) Quarterly salary fund budgets, divided monthly, prepared and submitted by the unit, no later than the last 15 days of the previous quarter.

2. To avoid confusion between planned salary and salary allowances (items 1 and 2) and unplanned salary and salary allowances (item 26), financial agencies must record on the notification of approved budget limits as follows:

- On the front side: the amount approved for item 26 must be included under "other items," not combined with items 1 and 2.

- On the back side: item 26 must be analyzed separately by adding a new line below the current item 25.

(Units preparing first and second-level budgets must also analyze correctly and fully as above in their own budget limit distribution notifications and those for subordinate units.)

3. All levels of the State Bank need to pay attention to the fact that for salary funds, it is not necessarily required that the approved or distributed quota be fully utilized. Therefore, in addition to basing on the notification of approved budget limits transferred by the financial agency to monitor and control the distribution and withdrawal of funds by budgetary units, the bank must also base on other documents provided by the unit to monitor and handle specific cases as follows:

a) Must base on the register of personnel present and receiving salaries at the beginning of the year and supplementary registers (if any) certified by the financial agency or the superior managing unit to determine the salary limit that each unit can withdraw each month. This limit is determined based on the previous month's withdrawal limit, plus the additional salary and allowance amounts due to recruitment, promotion, transfer, etc., and minus the reduced salary and allowance amounts due to transfer out, termination, etc. All these increases and decreases (if any) must be accompanied by legal documents such as decisions, decrees of the competent authority, etc., to prove. If the above documents are not complete, the bank has the right to refuse issuance according to the unit's request, even though the salary fund quota still remains.

b) According to general principles, social insurance funds cover salaries and allowances of cadres, workers, and staff during days off due to illness, maternity, work accidents, etc. However, since these cannot be predicted, annual and quarterly budgets approved by financial agencies already include these amounts. During the spending process, these amounts will naturally remain surplus. Therefore, after determining the salary limit according to point a above, the basic bank must also base on the "Statement of Salary and Allowance Amounts Covered by Social Insurance Funds Instead of Salary Funds" for the previous month (Form No. 1)(1) to reduce the salary limit issued to the unit in the next month. This statement must be sent to the bank at least three days before withdrawing funds for the second salary payment of the next month so that the bank can deduct immediately when issuing salaries in that period. For example:

 In case the bank cannot deduct as above, for example: In the early months of 1964, some units withdrew the entire approved salary fund quota (including amounts that should not have been withdrawn because they were covered by the social insurance fund), then the unit must prepare a statement according to Form No. 1 attached (1) and simultaneously submit a payment voucher. One of the two payment methods must be applied:

- If the unit has excluded the amount covered by the social insurance fund instead of the salary fund, not recorded in the settlement, because it was temporarily advanced to sick, pregnant cadres, workers, etc., then use the "Excess Fund Payment Voucher" (Form No. 5-TC in the budget allocation system), submit and restore the previously withdrawn budget limit category.

- If all salary and allowance amounts, including those covered by the social insurance fund, have been settled, the financial system's payment receipt form (with four copies) must be submitted to the "other revenue" account under the category "Miscellaneous Revenue" in the budget revenue schedule (specifically, item 116, sub-item 4 in 1964. Additionally, for officials, workers, and employees who have not met the tenure criteria to receive full 100% salary and allowances from the social insurance fund during sick leave or work-related accidents, the difference between the full salary (100%) received in the previous month and the amount covered by the social insurance fund (at a certain percentage) must be recovered in the following month and also submitted to the budget revenue schedule (item 116, sub-item 4 of the revenue schedule for 1964).

a) Finally, the basic bank must base on the balance sheet of the previous month's usage of the budget allocation limit (model number 14-A-TC in the budget allocation system) for administrative agencies and mass organizations, or the last month of the previous quarter for public institutions, to confirm the excess budget allocation limit for the salary fund that needs to be canceled in the following month or at the beginning of the next quarter. To implement this cancellation, the unit must prepare the "Confirmation Form for Excess Budget Allocation Limit for Salary Fund to be Cancelled" (according to model number 2 attached). However, the excess budget allocation limit for the salary fund at the end of December each year does not need to be confirmed through such a form, as it will be automatically canceled together with other types of allocations at the end of December 31st each year.

II. SOME MATTERS TO BE NOTED

In order to ensure the correct implementation of the management and control system for the state salary fund, while not delaying the issuance of salaries to officials, workers, and employees, the following provisions in the budget disbursement system must be strictly enforced:

a) The quarterly salary fund budget and other types of budgets must be sent to the financial agency before the last day of the quarter. Only then will there be sufficient time for the financial agency to review and approve within five days, transfer to the corresponding bank for timely notification to the basic bank and direct spending units;

b) Three days before withdrawing money to pay salaries, the units must submit to the basic bank where they conduct transactions regarding the budget allocation limit, documents, and materials on the salary amount for the period, including:

- The registration list of staff present to receive salaries at the beginning of the year, along with supplementary registration forms (if any), accompanied by legal proof documents, but this registration form must be confirmed by the financial agency (for first-level units) or the superior managing agency (for second and third-level units). For January 1965, the first month of implementing this circular, if a unit has not yet prepared the registration list of staff present to receive salaries in January 1965 and supplementary registration forms, they should submit a registration list of staff present to receive salaries in December 1964 instead of the aforementioned documents. Of course, this registration list must also be confirmed as prescribed.

- A statement of the amounts covered by the social insurance fund instead of the salary fund in the previous month (attached to the monthly second round salary collection documents). If there is a need to pay money into the state budget, necessary payment receipts must be attached.

- The confirmation form for excess budget allocation limit for salary fund to be cancelled (administrative agencies and mass organizations must submit monthly, public institutions must submit in the first months of the quarter, at the latest during the second round of salary collection in that month).

c) The reconciliation of the distribution and usage of the previous month's budget allocation limit (models 14-TC and 14-A-TC in the budget allocation system) must be promptly conducted within the first five days of the following month. Once the bank confirms, these reconciliation sheets must be submitted according to the regulations in the budget allocation system, ensuring that the higher-level managing agency, financial agency, and higher-level bank all have tracking documents.

d) Monthly, quarterly, and annual settlement reports of the units must accurately record and analyze each item and sub-item, particularly focusing on item 1 "Salary," item 2 "Allowance," and item 26 "Other Labor Payments." Additionally, complete tables and forms must be prepared within the specified deadlines in Circular No. 27-TC-VX to clearly reflect the implementation of the salary fund by the unit.

All the above documents and reports are essential for general budget management, especially crucial for strengthening the management and control of salary fund expenditures. Therefore, if any document or report is missing, or if a unit fails to submit them on time or does not prepare them according to the prescribed format, the financial agency and banks at all levels will face difficulties in disbursement and may have to delay part of the salary fund disbursement, as stipulated in Circular No. 36-TTg of the Prime Minister, until receiving complete reports. In such cases, the unit will bear full responsibility.

This circular shall take effect from January 1, 1965. Budgetary units, financial agencies, and banks at all levels need to study, understand thoroughly, and prepare all necessary matters, especially the registration of staff present to receive salaries, dissemination, and guidance to subordinate units to avoid errors and delays during implementation, which could affect the issuance of salaries to officials, workers, and employees.

If any matter remains unclear or difficulties arise, immediate communication with the Ministry of Finance and the State Bank Central Office is required to provide suggestions for resolution.