JOINT DECISION

Issuing temporary regulations on some issues regarding financial management of agricultural tractor stations

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HEAD OF THE CENTRAL AGRICULTURAL COMMITTEE MINISTER OF FINANCE GENERAL DIRECTOR OF THE STATE BANK OF VIETNAM

Based on Decree No. 234-CP dated December 18, 1971 of the Council of Ministers stipulating the functions and organizational structure of the Central Agricultural Committee;

Based on Decree No. 197-CP dated November 7, 1961 of the Council of Ministers stipulating the tasks, authorities, and organizational structure of the Ministry of Finance;

Based on Decree No. 171-CP dated October 26, 1961 of the Council of Ministers stipulating the tasks, authorities, and organizational structure of the State Bank of Vietnam.

DECISION:

Article 1. The attached decision hereby promulgates the Temporary Regulations on some issues regarding financial management of agricultural tractor stations.

Article 2. These temporary regulations shall be uniformly applied from January 1, 1973 to all agricultural tractor stations managed under independent economic accounting systems at the district or inter-district level.

Article 3. Within their respective responsibilities and authorities, and after reaching consensus with relevant parties, each ministry shall provide specific guidance for the implementation of this decision within their sectors.

Article 4. Any previous regulations on financial management of agricultural tractor stations that conflict with this decision are hereby abolished.

Article 5. The chairmen of provincial and municipal administrative committees where there are tractor stations shall be responsible for implementing this decision.

The heads of the Accounting and Financial Department, the Director of the Agricultural Machinery and Mechanization Bureau under the Central Agricultural Committee, the Director of the Agriculture, Forestry, and Water Resources Department, the Director of the Accounting System and Reporting Department under the Ministry of Finance, and the Director of the Agricultural Credit Department under the State Bank of Vietnam shall be responsible for implementing this decision./.

TEMPORARY REGULATIONS ON SOME ISSUES REGARDING FINANCIAL MANAGEMENT OF AGRICULTURAL TRACTOR STATIONS

(Issued together with Joint Decision No. 253-TT/LB dated November 25, 1972 of the Central Agricultural Committee, Ministry of Finance, State Bank of Vietnam)

To contribute to bringing the management of tractor stations into a regular system, promoting these stations to gradually implement economic accounting, enhancing the sense of responsibility among agricultural machinery staff, continuously improving labor productivity, increasing the efficiency of machine usage, conserving materials, reducing production costs, and contributing to the gradual expansion of agricultural mechanization;

While awaiting the research and issuance of a complete financial management system for tractor stations;

Based on the financial and accounting systems of the state applicable to state-owned enterprises, the Central Agricultural Committee, the Ministry of Finance, and the State Bank of Vietnam temporarily stipulate certain specific issues regarding financial management to be uniformly applied to all tractor stations nationwide.

Article 1. Agricultural tractor stations (hereinafter referred to as stations) are independent economic accounting units and are under the management of provinces or cities. Depending on the scale of operations, the number of tractors, and the number of workers, stations are classified into three types: large, medium, and small. The superior management body of the station is the Agricultural Machinery and Mechanization Company of the province or city.

ON FIXED CAPITAL AND CURRENT CAPITAL.

Article 2. Fixed assets of the station must be subject to basic depreciation and major repair depreciation, ensuring full asset replacement. Based on the current general regulations on fixed asset depreciation for state-owned enterprises, the Central Agriculture Committee shall specify the details of depreciation deductions for stations after reaching consensus with the Ministry of Finance.

Article 3. In any case (whether profitable or loss-making), the station must deduct and pay basic depreciation to the State Budget monthly, and transfer the money deducted for major repair depreciation according to the current regulations.

Article 4. The working capital necessary for the operation of the station, including the operation of small repair workshops, includes:

a) Production reserve capital: - Fuel, lubricants. - Materials - Replacement parts and repair components, - Consumables that wear out quickly,

b) Production capital: - Uncompleted production costs, - Completed production costs,

Article 5. The working capital quota of the station is based on the following factors:

a) The fuel, lubricant, repair parts, and material reserve quota is the average daily turnover multiplied (×) by the number of days in reserve. - The number of days for fuel and lubricant reserves is specifically defined for each station, depending on transportation conditions, supply situation, and receipt at the station. - The number of days for replacement and repair parts reserves ranges from 90 to 180 days. - The number of days for material reserves: 90 days.

b) The reserve quota for consumables that wear out quickly is calculated based on the average surplus of the four quarters of the previous year. For newly established stations, the reserve quota is calculated as the value of consumables purchased according to the plan minus (-) the amount allocated to production costs.

c) The uncompleted production cost quota is the average daily production cost multiplied (×) by the quota days. The average daily production cost is the total annual production cost divided by 360 days. The quota days are the average time from when the tractor starts operating (plowing, harrowing, sowing, fertilizing, harvesting) on the agricultural cooperative's fields until the work is completed and handed over to the cooperative. The quota days should not exceed 20 days.

d) The completed production cost quota is the average daily income from completed production multiplied (×) by the quota days. The average daily income from completed production (excluding income from price subsidies mentioned in Article 15 below) is the total annual income from production activities such as plowing, harrowing, sowing, caring, harvesting... divided by 360 days. The quota days are counted from the day the completed production work is handed over to the cooperative until the day the cooperative is required to settle the production fee, with the average quota days not exceeding 10 days.

Article 6. The station's working capital quota is provided according to the current working capital allocation and management system for local state-owned industrial enterprises and is fully provided at the beginning of the planning year after the annual working capital quota has been officially reviewed.

Article 7. The State Bank will provide loans to the station within the plan, outside the plan, for major repairs of fixed assets, and for payment as needed according to the current regulations.

ON COST PRICES AND PRICE SUBSIDIES.

Article 8. Stations must organize separate accounting for calculating cost prices for each different type of agricultural work:

Calculating according to - Cultivation on fields (plowing, sowing, caring, harvesting...) - Transportation - Pumping water hectare standard ton/kilometer cubic meter In addition, for internal economic accounting, the station must calculate the cost price of repair work or production of spare parts... of small repair workshops.

Article 9. The station must account for production costs monthly and calculate the cost price of agricultural work quarterly and annually.

Furthermore, specifically for field cultivation work, to facilitate cost analysis, the station must calculate the cost price according to the agricultural crop season.

Article 10. Small repair workshops are part of the auxiliary production workshop of the station, which shall be accounted for production and repair costs as follows:

- For the production of spare parts for the station and for internal repair work of the workshop, the actual cost shall be included in the cost price of the station's work; profit and loss shall not be calculated separately. - For spare parts produced for sale outside and external repair work: The selling price of spare parts and repair work shall be uniformly determined by the Central Agricultural Committee based on the national system of spare parts prices and general rules for pricing repair work, after consultation with the Ministry of Finance. The difference between the above-determined price and the actual cost of the workshop is the profit or loss of the station from selling spare parts externally and performing external repairs.

Article 11. The establishment of cost plans, cost accounting, and cost reporting for stations and small repair workshops must follow the regulations set by the Central Agricultural Committee and the Ministry of Finance, based on the current national cost system.

Article 12. For field cultivation work such as plowing, harrowing, sowing, caring, harvesting, etc., calculated per standard hectare unit, the Central Agricultural Committee together with the Ministry of Finance will study and establish and stipulate standard prices for each region or province... The provincial agricultural committee will base on this standard value, while considering the equipment, organization, and operational area of the station, and referring to general and specific economic and technical norms of each station, to determine a reasonable individual standard price for each station. The reasonable individual standard price of each station is determined by the local agricultural committee, which may be higher or lower than the standard price, but the total of all stations in the province or city must not exceed the standard price set by the Central Agricultural Committee for that region, province, or city.

The reasonable individual standard price for each station applies for several years if there is no significant change in the organizational operation conditions of the station, economic and technical norms, equipment prices, and fuel prices...

Article 13. Annually, the station builds a cost plan aimed at reducing below the reasonable individual standard price as prescribed. The Agricultural Machinery and Mechanization Company reviews, consolidates, and submits to the Agricultural Committee for review and approval by the local Agricultural Committee. The difference between the standard price and the approved annual cost plan is the planned profit of the station. The station shall not have a loss plan. The difference between the standard price and the actual cost of the station is the actual profit or loss of the station.

Article 14. The annual business results of the station include:

a) Actual profit or loss from field cultivation work, which is the difference between the reasonable individual standard rate set for the station and the actual cost of a standard hectare multiplied (×) by the number of standard hectares completed in the year.

b) Actual profit or loss from other works such as transportation, pumping water, repairing for external parties, etc. The station's actual profit or loss is handled according to the current system (there is a circular guiding on how to pay profits and compensate losses).

Article 15. In cases where the state sets the working price for land preparation lower than the reasonable individual standard rate of the station due to policy requirements to assist cooperatives in agricultural mechanization development, the difference shall be considered as a state price subsidy.

This price subsidy is temporarily provided by the State Budget (Provincial Budget) at the beginning of each quarter according to the plan and officially distributed based on the station's final settlement report.

Article 16. Annually, the station must sign an economic contract with the agricultural cooperative in accordance with the regulations of the Central Agricultural Committee. In the economic contract, the responsibilities of both parties must be clearly stated: one party, the station, must provide labor services to the cooperative in the agreed quantity, quality, and time, while the other party, the cooperative, must pay the station the full amount for the labor services according to the state-set price within the stipulated period.

Both parties must jointly bear responsibility for fully implementing the signed contract.

Article 17. Based on the acceptance and handover records of completed volumes and considering the agricultural cooperative's loan application, the State Bank will consider granting loans to the cooperative to settle accounts with the station.

ON INCENTIVES.

Article 18. While awaiting the inter-ministerial study on appropriate bonus systems for the tractor industry, stations that successfully complete their assigned tasks may establish enterprise funds under the current system.

ON TYPES OF PLANS AND REPORTS.

Article 19. The station's annual production, technical, and financial plans are established according to the Gregorian calendar and divided into four quarters; quarterly plans are further divided by month.

The plan must be divided into two parts: - Main production includes field labor services. - Other production includes various types of work such as transportation, pumping water, repairing for external parties, etc.

Article 20. The station's annual financial plan includes:

1. Depreciation plan for fixed assets.

2. Plan for circulating capital standards.

3. Special fund and public service expenditure plan.

4. Consumption, profit and loss, and price subsidy plan.

5. Enterprise fund establishment plan.

6. Credit plan.

7. Comprehensive income and expenditure financial plan.

Article 21. The Agricultural Machinery and Mechanization Company reviews, consolidates, and submits the production, technical, and financial plans of the stations to the Provincial or Municipal Agriculture Committee for approval, with the participation of the State Bank's opinion. The Provincial or Municipal Administrative Committee approves the overall plan for the tractor industry in the province or city.

IMPLEMENTING PROVISIONS.

Article 22. When this temporary regulation begins to be implemented, the stations need to:

1. Conduct asset inventory and liquidation according to the current system to re-determine fixed and circulating self-owned capital. For amounts still owed by agricultural cooperatives to the station (excluding debts from other economic units) before 1971, the station may exclude them from circulating self-owned capital but must record them thoroughly in the books for continued tracking and collection until all debts are recovered. The Provincial or Municipal Administrative Committee has the responsibility to guide relevant sectors in the locality to recover debts within two years. Debts recovered are immediately paid into the local budget. The Central Agriculture Committee specifies detailed procedures and measures for debt recovery after consultation with the Ministry of Finance and the State Bank.

2. Improve and consolidate organizational structures; in the short term, it is necessary to improve planning, accounting, finance, and statistics departments.

Article 23. On the basis of the above provisions, each Ministry within the scope of its responsibility shall provide detailed guidance on:

1. The preparation of plans and cost accounting;

2. The preparation of revenue and expenditure plans;

3. The depreciation of fixed assets;

4. The signing of economic contracts and the transfer of completed work between the station and agricultural cooperatives;

5. The disbursement from the State budget and loans from the State Bank;

6. The setting of technical standards for repair work and production costs for spare parts and external repairs;

7. Initial accounting, planned accounting, and reporting.

Article 24. Each Provincial or Municipal People's Committee with a tractor station shall be responsible for implementing this regulation.