Circular No. 2640/TTr-BTC guiding the inspection of the establishment and use of public funds

LETTER

OF THE MINISTRY OF FINANCE NUMBER 2640/TTR-BTC ON MAY 31, 1999
GUIDING THE INSPECTION OF THE ESTABLISHMENT AND USE OF PUBLIC FUNDS

Respected: - Ministers of Ministries, Heads of agencies at the level of ministries,

agencies under the Government.

                - Chairmen of People's Committees of provinces and centrally governed cities.

Implementing Directive No. 11/1999/CT-TTg dated May 6, 1999 of the Prime Minister on inspecting and rectifying the management and use of public funds, the Ministry of Finance hereby sends to all Ministries, sectors, and localities the guidance on implementing the inspection of the use of public funds as follows:

I- OBJECTIVES AND REQUIREMENTS:

1- To identify the types of funds existing in each Ministry, sector, locality, and inspected unit, which funds were established correctly according to state regulations, and which were not.

2- To detect violations in the establishment, management, and use of funds to propose appropriate measures for handling.

3- To focus on inspecting funds with large amounts of revenue and expenditure and those established and used without state regulations.

II- INSPECTION TARGETS

All administrative agencies, public service units, and local government levels (provincial, district, and commune).

III- INSPECTION PERIOD: Year 1998

IV- INSPECTION CONTENT

1- For funds established according to current state regulations.

- Identify existing funds: What funds currently exist, sources of fund formation, and the amount already established?

Inspect whether the establishment and use comply with state provisions, whether there are off-the-books revenues and expenditures, and whether there is waste or loss.

2- For funds established without state regulations.

- Clearly identify the sources of fund formation, the amount already established, and who established the fund.

- Management and use: Determine the amount spent, the content and recipients of spending (such as allowances, asset purchases, rewards, gifts...), and how settlements are made.

- Balance as of the inspection date (cash in the fund, temporary advances, loans, savings deposits, bank deposits...). Is this fund continuing to collect and spend, or has it been terminated, and if so, when?

- Related documents concerning the establishment, management, and use of the fund.

- Determine the causes, extent, and consequences of violations due to improper establishment, management, and use of the fund.

- For non-compliant funds but with practical significance, determine the management and use situation to study and propose appropriate management mechanisms to competent authorities.

V- METHODS OF IMPLEMENTATION

- Guide units to self-inspect and report on the funds they have, self-assess strengths and weaknesses in managing and using public funds, and propose corrective measures for non-compliance.

- Depending on specific circumstances, inspection teams can be formed, monitoring units established, directives issued, and results compiled and reported to the Ministry of Finance regarding the implementation of the Prime Minister's directive.

- Implementation schedule:

+ From June 20, 1999 to July 15, 1999: Ministries, sectors, provinces, and centrally governed cities will conduct inspections of their subordinate units according to the Ministry of Finance's guidelines.

+ From July 16, 1999 to July 20, 1999: Ministries, sectors, and localities will compile inspection results and report to the Ministry of Finance.

+ From July 21, 1999 to July 30, 1999: The Ministry of Finance will compile inspection results and report to the Government.

The Minister of Finance requests all Ministries, sectors, and localities to promptly organize the implementation to ensure the inspection of the establishment and use of public funds achieves the desired results.

TABLE 2

REPORT ON THE INSPECTION OF FUNDS WITHOUT REGULATIONS

At: Ministry, Sector, Local

Unit of Measurement