Circular No. 266-TC/VP on directing the implementation of inventory and revaluation of production and business capital

LETTER

NUMBER 266-TC/VP ON February 23, 1990 REGARDING GUIDANCE FOR THE IMPLEMENTATION OF ASSET AUDIT AND REASSESSMENT WORK

Dear Comrades Directors of Provincial Finance Departments,

cities, centrally governed special economic zones,

Pursuant to Decision No. 101/HĐBT dated August 1, 1989 of the Council of Ministers, asset audit and reassessment work for production and business capital is being carried out urgently across sectors, localities, and grassroots units, and is now transitioning to its final phase.

Recognizing the strategic significance and importance of this audit round, especially concerning financial work, many provincial and city finance departments have actively participated in guidance, along with local statistical and price agencies, playing a decisive role in ensuring the progress and results of the audit at the local level. However, in some places, the leadership of the provincial finance departments has not paid sufficient attention to this work, and in certain cases, they have even relaxed their oversight, delegating responsibilities entirely to some specialized staff working with statistical agencies. The time remaining until the end of the audit period is very short, but the work that must be done during this time is crucial for the overall outcome of the audit and for determining the capital to be managed and utilized by grassroots units. The Ministry requests that the comrades Director of the Departments focus on guiding the implementation of the following matters:

1. Consider this audit round as an opportunity for the finance sector to fully and accurately grasp all types of existing capital within the state-owned economy, including budget-funded portions; determine the necessary capital, and implement the transfer of management and utilization rights for each grassroots unit. This is a significant and inevitable step towards transitioning state-owned enterprises to a socialist-oriented business accounting mechanism and implementing new financial policies. In this work, the finance sector plays a critical role and bears heavy responsibility. It is necessary to ensure that financial management leaders and staff at all levels understand this clearly to adopt the correct attitude and actively contribute to the audit work.

2. The Director of the Department must directly guide this work, appointing staff with expertise and experience to join the local audit steering committee, coordinating with the audit steering committee to advise the People's Committee of the province or city on directing and organizing the audit at the local level, promptly addressing emerging issues, particularly those related to prices and finances in accordance with national regulations and guidelines.

3. During the remaining time of the first quarter and the beginning of the second quarter of 1990, it is necessary to concentrate on mobilizing financial management staff and specialists to closely monitor sectors and grassroots units, primarily key sectors and units, to inspect, urge, and assist these sectors and units in effectively carrying out the audit work, especially focusing on valuation procedures, determining intangible and tangible depreciation, recording forms, and compiling audit result reports. The Finance Department must organize training sessions so that these staff members fully and correctly understand the national regulations and guidelines for the audit, particularly recent supplementary guidance documents. Doing this well ensures the quality of the audit and prepares favorable conditions for determining and transferring capital to grassroots units in the future.

4. The Council of Ministers and the Ministry of Finance will soon issue documents regarding financial handling of the audit results, concerning the transfer of management and utilization rights for grassroots units. Financial agencies and supervisory bodies are the primary responsible parties for this work and must complete it within the first six months of 1990. This is a critical and complex task, therefore, from now on, the Finance Departments must proactively plan and allocate personnel resources, assigning leaders to oversee specific sectors and areas, assisting the People's Committee of the province or city in developing plans and schemes for capital transfer in each sector, district, and throughout the province or city to be able to proceed immediately upon receiving State decisions and Ministry guidelines. and key facilities to inspect, urge, and assist sectors and facilities in properly conducting inventory work, with particular attention to valuation procedures of assets, determining intangible and tangible depreciation, recording forms, and preparing reports on the results of the inventory. The Department of Finance must organize training sessions for these officials to fully and correctly understand the State's regulations and recent supplementary guidance documents during this inventory period. Doing this well ensures both the quality of the inventory and prepares favorable conditions for the determination and allocation of capital to units and facilities in the future.

4. The Council of Ministers and the Ministry of Finance will soon issue financial documents to handle the results of the inventory, concerning the transfer of management and usage rights of capital to units and facilities. Financial agencies and supervisory bodies are primarily responsible for this task and must complete it within the first six months of 1990. This is a significant and complex task, so from now on, the Department of Finance must proactively plan and allocate staff resources, assign leaders to oversee each sector and field, assist provincial and municipal People's Committees in developing plans and schemes for allocating capital in each sector, district, and throughout the province or city to be able to immediately implement upon receipt of the State's decision and the Ministry's guidelines.