Circular No. 27/2008/TT-BTC guiding the financial management regime for Vietnamese agencies abroad

CIRCULAR

Guidelines on financial management for Vietnamese agencies abroad

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

Based on Decree No. 157/2005/NĐ-CP dated December 23, 2005 of the Government stipulating certain regulations for officials and civil servants working on assignment at Vietnamese agencies abroad;

Based on Decree No. 131/2007/NĐ-CP dated August 6, 2007 of the Government amending and supplementing Decree No. 157/2005/NĐ-CP dated December 23, 2005 of the Government stipulating certain regulations for officials and civil servants working on assignment at Vietnamese agencies abroad;

Based on 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,

The Ministry of Finance hereby issues guidelines on financial management for Vietnamese agencies abroad as follows:

I. SCOPE AND APPLICABILITY

These Circulars apply to Vietnamese representative agencies abroad as defined in the Ordinance on Vietnamese Representative Agencies Abroad dated December 2, 1993, and other Vietnamese agencies operating abroad established by Ministries, ministerial-level agencies, government agencies, and central agencies based on agreements with relevant countries, not part of the organizational structure of Vietnamese representative agencies, and receiving funding from the state budget or retained revenue from the state budget according to current regulations (hereinafter referred to as Vietnamese agencies abroad).

II. ESTABLISHING ANNUAL BUDGET PROJECTIONS AND IMPLEMENTATION OF THE STATE BUDGET

1. Establishing annual state budget projections:

Vietnamese agencies abroad shall base their annual state budget revenue and expenditure projections on assigned political tasks, current state budget revenue and expenditure standards, cost-of-living changes in the host country, fluctuations of the US dollar against local currency, audit reports on state budget projections provided by supervisory authorities, previous years' budget implementation status, and prepare annual state budget revenue and expenditure projections in accordance with the prescribed forms under the State Budget Law, implementing regulations of the Law, and this Circular, accompanied by explanations of calculation bases and grounds to be submitted to the supervising agency for consolidation within their unit's annual budget projection to be sent to the Ministry of Finance before July 20 each year. Projections are made in Vietnamese dong and converted to US dollars according to the exchange rate specified by the Ministry of Finance at the time of preparation.

2. Implementation of the state budget at Vietnamese agencies abroad:

2.1. Allocation and allocation of state budget expenditures:

Based on the Prime Minister's decision allocating the annual state budget to Ministries, ministerial-level agencies, government agencies, and central agencies (hereinafter collectively referred to as supervising agencies), these agencies allocate state budget projections to each subordinate Vietnamese agency abroad according to four categories as stipulated by the State Budget Law, and submit them to the Ministry of Finance for review according to prescribed procedures. After the state budget allocation plan is agreed upon by the Ministry of Finance, the supervising agency implements the allocation of state budget projections to each subordinate Vietnamese agency abroad, simultaneously sending it to the Ministry of Finance and the State Treasury (Trading Department) as the basis for disbursement.

2.2. Execution of state budget expenditures:

Based on the annual state budget projection notified by the Ministry of Finance, responsibilities and procedures for disbursing funds to Vietnamese agencies abroad are carried out as follows:

2.2.1. Responsibilities of the supervising agency:

- Submitting consolidated state budget allocations for the year in Vietnamese dong and converted to US dollars at the time of plan allocation for each subordinate Vietnamese agency abroad to the Ministry of Finance and the State Treasury (Trading Department).

- Quarterly, disbursing funds according to the budget for its own Vietnamese agency abroad from the centralized foreign currency fund of the state, by preparing a Foreign Currency Budget Withdrawal Form C2-09/NS as stipulated in Decision No. 24/2006/QĐ-BTC dated April 6, 2006 of the Minister of Finance on issuing the state budget accounting system and State Treasury operations, along with Form 6 attached to this Circular.

For the Ministry of Foreign Affairs, the Ministry of Finance authorizes management and utilization of the Temporary Holding Fund of the state budget at Vietnamese representative agencies abroad for disbursement purposes. When using this fund to disburse funds to its own representative agencies, two copies of the Request for Expenditure from the Temporary Holding Fund of the state budget at Vietnamese representative agencies abroad (Form 7 attached to this Circular) must be prepared, along with two copies of the Request for State Revenue Collection (Form 8 attached to this Circular), to be sent to the State Treasury (Trading Department).

- Monitoring expenditures after receiving supporting documents from Vietnamese agencies abroad.

- Bearing full responsibility for all expenditures of its own representative agencies abroad.

2.2.2. Responsibilities of the State Treasury:

Disbursing funds to Vietnamese agencies abroad based on the supervising agency's request, specifically:

- In cases of disbursement from the centralized foreign currency fund of the state:

The State Treasury (Trading Department) will base disbursements from the centralized foreign currency fund of the state to Vietnamese agencies abroad on the annual state budget projections of Vietnamese agencies abroad submitted by the supervising agency at the beginning of the year and the foreign currency budget withdrawal form submitted by the supervising agency as stipulated in Point 2.2.1 above.

- In cases of utilizing the Temporary Holding Fund of the state budget abroad:

The State Treasury (Trading Department) shall base on the state budget estimates of Vietnamese agencies abroad sent by the Ministry of Foreign Affairs at the beginning of the year and the related vouchers that the Ministry of Foreign Affairs has sent according to point 2.2 above (applicable only to the Ministry of Foreign Affairs) to conduct checks on the elements signed on the related vouchers and handle as follows: use voucher number 1 "Request for Recording State Budget Revenue" to record state budget revenue "Consular fees or other revenues abroad"; simultaneously use voucher number 1 of the request for expenditure from the Temporary Holding Fund of the state budget at Vietnamese agencies abroad to account for expenditures for the Ministry of Foreign Affairs (corresponding to Chapter, Clause, Section, Subsection of the State Budget Manual). The remaining vouchers shall be returned to the Ministry of Foreign Affairs so that the Ministry of Foreign Affairs can account for them and notify (by encrypted telegraph) the Vietnamese agencies abroad to draw from the Temporary Holding Fund of the state budget abroad for use.

2.3. Organization of state budget revenue collection:

Revenues of the state budget at Vietnamese agencies abroad shall be deposited into the Temporary Holding Fund of the state budget at Vietnamese agencies abroad according to Circular No. 29/2000/TT-BTC dated April 24, 2000 of the Ministry of Finance.

2.4. Model forms guiding the compilation of revenue and expenditure budget estimates as prescribed in Model Forms No. 1, 2, 3, 4, 5; guidelines for expenditure from the centralized foreign currency fund of the state according to Model Form No. 6 attached hereto; guidelines for recording revenue and expenditure from the Temporary Holding Fund of the state budget abroad according to Model Forms No. 7, 8 of this Circular.

III. REGIME, STANDARDS AND MANAGEMENT OF FINANCES AND ASSETS

1. Regime of officials and civil servants:

Officials, civil servants, and spouses are entitled to the regimes stipulated in Decree No. 157/2005/NĐ-CP, Decree No. 131/2007/NĐ-CP of the Government, Joint Circular No. 29/2006/TTLT-BNG-BTC-BNV-BLĐTBXH dated November 8, 2006 of the Joint Circular of the Ministry of Foreign Affairs - Ministry of Home Affairs - Ministry of Finance - Ministry of Labor, Invalids and Social Affairs and Joint Circular No. 02/2007/TTLT-BNG-BTC-BNV-BLĐTBXH dated October 30, 2007 of the Joint Circular of the Ministry of Foreign Affairs - Ministry of Home Affairs - Ministry of Finance - Ministry of Labor, Invalids and Social Affairs including:

1.1. Living expenses:

Based on the decision on assignment for duty term issued by the competent authority, the living expense allowance is calculated according to the provisions of Joint Circular No. 29/2006/TTLT-BNG-BTC-BNV-BLĐTBXH dated November 8, 2006 of the Joint Circular of the Ministry of Foreign Affairs - Ministry of Home Affairs - Ministry of Finance - Ministry of Labor, Invalids and Social Affairs, officials, civil servants, and spouses will enjoy living expense allowances as follows:

1.1.1 Living expense allowance is paid based on the actual days present in the host country, consistent with the time recorded in the decision on assignment for duty at Vietnamese agencies abroad (except for cases returning to Vietnam for work as specified in point 6.3 of Part III below).

Living expense allowance for less than one month is calculated as follows:

1.1.2 Payment of living expense allowance is carried out based on:

- Living expense table model CD2a issued together with Decision No. 19/2006/QĐ-BTC dated March 30, 2006 of the Ministry of Finance;

- Monthly living expense allowance = Minimum SHP x SHP index of the individual.

- If living expense allowance is paid in local currency, it shall be converted from the living expense allowance in US dollars (USD) to local currency according to the exchange rate announced by the local bank at the time of payment of living expense allowance (attached with the exchange rate of the local bank).

1.1.3 For cases where spouses are continuously present for one month at Vietnamese agencies abroad and are entitled to the living expense allowance of that month, payment shall be made based on the entry and exit dates in the passport.

1.2. Allowances and subsidies:

1.2.1 Allowance for concurrently holding positions in different areas:

Ambassadors and Heads of Vietnamese agencies abroad who are assigned by the competent authorities of the Party and State to work in other countries or international organizations in other countries shall be entitled to an allowance for concurrently holding positions in different areas at a rate of: concurrently holding positions in up to two countries or international organizations in other countries shall be entitled to 10% of the minimum living expense allowance in their home area as decided by the managing agency; concurrently holding positions in three or more countries or international organizations in other countries shall be entitled to 15% of the minimum living expense allowance in their home area as decided by the managing agency.

1.2.2 Allowance for concurrently holding duties (including concurrently holding driver duties):

Vietnamese agencies abroad which are not allocated sufficient staff according to the approved establishment by the Ministry of Home Affairs, officials and civil servants assigned by the managing agency to concurrently hold duties shall be entitled to an allowance not exceeding 15% of the minimum living expense allowance.

1.2.3 Allowance for working in areas affected by war or epidemics:

Officials and civil servants assigned to work in areas affected by serious wars or epidemics threatening lives shall be entitled to a maximum subsidy not exceeding 30% of the minimum living expense allowance, as decided by the head of the managing agency.

1.2.4 Allowance for women:

Female officials and civil servants and female spouses assigned to work shall be entitled to a monthly allowance of 5% of the minimum living expense allowance.

1.2.5 Allowance for overtime work:

- Officials and civil servants assigned to work who must work at night or overtime shall be arranged compensatory leave; if compensatory leave cannot be arranged, the Head of Vietnamese agencies abroad shall approve the entitlement to overtime allowance according to the provisions of Joint Circular No. 08/2005/TTLT-BNV-BTC dated January 5, 2005 of the Joint Circular of the Ministry of Home Affairs and the Ministry of Finance as follows:

- The limit according to the Labor Law is 20 hours/person/month and not more than 200 hours/person/year.

- The basis for payment of overtime allowance is the declaration form of overtime time and content of work by individuals confirmed by the Head of Vietnamese agencies abroad.

- For Vietnamese agencies abroad with special nature of operations such as Permanent Mission of Vietnam to the United Nations and other international organizations, Vietnam News Agency, Voice of Vietnam Radio, Vietnam Television, People's Daily Newspaper, the managing agency is requested to provide specific guidance after consultation with the Ministry of Finance on the maximum number of overtime hours suitable for each sector.

1.3. Other regimes:

During their term of duty at Vietnamese agencies abroad, officials and civil servants, as well as their spouses, specified in Decree No. 157/2005/NĐ-CP dated December 23, 2005, and Decree No. 131/2007/NĐ-CP dated August 6, 2007, of the Government, shall be reimbursed for housing expenses, electricity, water, and fuel costs by the State.

1.4. Remuneration for hiring local workers abroad:

Depending on specific cases, the Head of the Vietnamese Agency Abroad may decide to hire local workers after obtaining written permission from the supervising agency. The remuneration paid to hired workers shall be stipulated in the contract signed between the Vietnamese Agency Abroad and the worker, consistent with the price level in the host country and within the allocated budget framework of the Vietnamese Agency Abroad.

2. Payments to individuals include:

2.1. Uniforms and other items for officials, civil servants, and their spouses during their term of duty abroad:

Officials, civil servants, and their spouses shall be granted a subsidy to purchase uniforms, bedding, pillows, bed sheets, and other essential items for personal use during their term of duty, which will be allocated for the entire term, specifically:

2.1.1. A sum of 1,100 USD per person per term for the Head of the Vietnamese Agency Abroad; officials and civil servants at the level of chargé d'affaires or higher, and those with living allowances equivalent to that of a chargé d'affaires (196%); and spouses accompanying these officials and civil servants on their term of duty.

2.1.2. A sum of 900 USD per person per term for officials and civil servants not covered under point 2.1.1 above.

2.1.3. A sum of 700 USD per person per term for spouses of officials and civil servants who are: First Secretary or civil servants enjoying living allowances equivalent to that of a First Secretary (180%); Second Secretary; Third Secretary; and civil servants with diplomatic ranks enjoying living allowances outside the country equivalent to that of a Second Secretary or Third Secretary accompanying them on their term of duty.

2.1.4. In cases where officials, civil servants, and their spouses have received this allowance but must return home prematurely due to subjective reasons, they shall repay a portion of the funds to the agency according to the ratio of time spent working abroad using the following formula:

2.1.5. In cases where the term of duty exceeds 12 months, with a decision from the supervising agency, additional allowances will be provided based on the extended period using the following formula:

2.2. Airfare, train fare, and baggage fees:

2.2.1. Officials, civil servants, and their spouses when leaving Vietnam to take up their post and upon completion of their term of duty shall be entitled to economy class airfare on the shortest direct route.

2.2.2. Ambassadors and Heads of Vietnamese Representative Offices abroad shall be entitled to business class airfare on the shortest direct route, or first-class train or other means of transportation when traveling to their post for the first time, upon completion of their term of duty, to present credentials, or to attend the end of their term in countries where they concurrently serve, or when traveling with local officials or organized by the diplomatic delegation. If spouses travel with the Ambassador or Head of the Representative Office, they shall also be entitled to the airfare and other means of transportation as stipulated in point 2.2.2.

2.2.3. Baggage fees of 50 kg per trip/per term (in addition to the free baggage allowance according to airline regulations) shall be reimbursed based on the airline's fee schedule, on the same flight as the official or civil servant.

For travel by other means, reimbursement shall be made at a rate of 50 kg per trip/per person/per term according to the fee schedule of the respective means of transportation.

2.2.4. Reimbursement for airfare, train tickets, bus fares, and baggage fees of 50 kg shall be as follows:

- When departing Vietnam to take up the post, it shall be reimbursed within the budget estimate for the outgoing delegation of the supervising agency.

- Upon completion of the term of duty and returning to Vietnam, it shall be reimbursed within the budget allocated to the Vietnamese Agency Abroad.

- Payment vouchers shall be invoices or legal receipts for payment or airfare quotes from the airline accompanied by copies of the air ticket stubs or tickets of other means of transportation; in case of electronic tickets, proof of payment for the ticket shall be attached.

2.2.5. In cases where officials, civil servants, and their spouses change their place of duty according to the decision of the competent authority, they shall be reimbursed for airfare and baggage fees as stipulated in point 2.2.4.

2.2.6. Lodging expenses incurred due to mandatory overnight stays during the waiting period for flights when starting and ending the term of duty shall be reimbursed, but not exceeding four days, at the living allowance rate of the transit location as stipulated in point 1.1.1, Section 1, Part III of this Circular.

Payment for lodging expenses when going and returning shall be made by the Vietnamese Agency Abroad where the official or civil servant serves.

2.3. Reimbursement for health insurance premiums:

2.3.1. Based on the decision to assign a term of duty, the state budget shall support a premium of 400 USD per person per year for health insurance for officials, civil servants, and their spouses. With this premium, it must ensure the purchase of health insurance with coverage levels according to the rules of the Vietnam Insurance Corporation.

In cases where officials, civil servants, and their spouses purchase health insurance with a higher premium than the state budget support, the individual shall bear the difference in premium themselves.

If officials, civil servants, and their spouses do not purchase health insurance as prescribed in this Circular, the state budget shall not cover the medical examination and treatment costs for such individuals.

2.3.2. In cases where emergency treatment must be immediately addressed or serious illnesses require immediate treatment, but the insurance organization only covers part of the medical expenses according to the insurance contract, the remaining costs shall be borne by the individual. In special cases, the state budget may consider supporting part of the costs after receiving a request from the managing authority.

Payment shall be based on legitimate invoices issued by the insurance organization and the healthcare facility.

2.4. For family members of officials and civil servants visiting or accompanying them who are not covered by the state budget, during their stay at housing under the management of Vietnamese agencies abroad, they must pay for the use of housing, electricity, water, and fuel to Vietnamese agencies abroad as follows:

The charge rate is 7% of the minimum SHP/person/month. For children under 18 years old, the charge is half of the above rate. Charges are calculated based on the actual number of days present at Vietnamese agencies abroad.

Vietnamese agencies abroad must maintain records of the aforementioned income and account for reductions in state budget expenditures in the corresponding budget expenditure categories.

3. Standards, systems, and management of assets, equipment, and work tools.

3.1. Based on Decision No. 170/2006/QĐ-TTg dated July 18, 2006, of the Prime Minister regarding standards and quotas for equipment and work tools of agencies and state officials, the equipment and work tools of Vietnamese agencies abroad will be regulated by the managing authorities after consultation with the Ministry of Finance.

According to the annual state budget allocation, Vietnamese agencies abroad shall purchase equipment and work tools in accordance with current national regulations, ensuring efficiency, thrift, and preventing waste.

3.2. Management and use of assets:

The management and use of state assets at Vietnamese agencies abroad shall comply with current Vietnamese laws and local laws.

Vietnamese agencies abroad shall submit to the managing authorities for issuance of regulations on分级管理国家资产的规定。

When the term of service ends, officials and civil servants must hand over all assigned public assets to Vietnamese agencies abroad; it is strictly prohibited to use equipment and work tools for personal purposes.

3.3. Liquidation of fixed assets:

The liquidation of fixed assets must go through a liquidation committee comprising representatives from relevant departments, chaired by the Head of the Vietnamese Agency Abroad, after obtaining the opinion of the managing authority for assets with a total book value of 100 million VND or more, and in accordance with the current regulations of the Ministry of Finance on the liquidation of fixed assets.

4. Management and use of premises and housing:

The Head of the Vietnamese Agency Abroad is responsible for establishing rules for the management and use of housing and premises, reporting to the managing authority for review and approval.

4.1. Rented Housing:

When there is a need to rent new housing, change rented housing, or extend the rental contract, Vietnamese agencies abroad must report to the managing authority for permission. After obtaining approval from the managing authority, specific housing can be sought and a draft lease agreement reported to the managing authority before signing the formal contract.

If the lease agreement requires a deposit, Vietnamese agencies abroad shall record this in the advance payment account and recover the deposit upon expiration of the lease agreement to return the funds. In case of damage requiring compensation or repair to the original condition, expenses may be incurred after obtaining the managing authority's approval.

4.2. Housing owned by Vietnamese agencies abroad:

All properties and construction projects on land must be insured according to the regulations of the host country.

4.3. Regular maintenance, major repairs, and upgrades of premises and housing: Any renovation and regular maintenance, major repairs, and upgrades of premises must have a plan and budget for each item included in the annual budget and approved by the competent authority. Managing authorities must establish regulations on the分级审批日常维护、大修和升级办公场所及住房的决定权。

4.4. For areas where premises and housing are owned by us or jointly arranged for inter-agency use within the same premises or housing, if separate arrangements cannot be made, the managing authority shall report to the Government for adjustments to the premises and housing of inter-agencies.

5. Vehicle provision, management, and use:

The Ministry of Finance will regulate vehicle provision, management, and use in a separate document.

If Vietnamese agencies abroad do not provide vehicles or provide fewer than the quota due to specific conditions, officials and civil servants will be allocated travel allowances equivalent to the monthly fare for public transportation in that area.

6. Travel Allowances System:

Based on domestic or international missions decided by the competent authority, travel allowances are defined as follows:

6.1. Domestic travel refers to officials and civil servants traveling within the host country. Dispatching civil servants for domestic travel must be authorized in writing by the Head of the Vietnamese Agency Abroad.

Domestic travel allowances are calculated as follows:

- Train, bus, or economy class airfare to the destination is reimbursed based on the ticket price or receipt.

- Hotel accommodation expenses are reimbursed based on actual costs at mid-range prices in the locality.

- Travel allowance is calculated as follows:

6.2. Officials and civil servants of Vietnamese agencies abroad who are assigned to work in another country (outside their place of residence) must be decided in writing by the head of the managing agency.

Travel expenses abroad or in overseas territories shall be paid according to Circular No. 91/2005/TT-BTC dated October 18, 2005, issued by the Ministry of Finance, which stipulates travel expense regulations for state officials on short-term missions abroad funded by the state budget.

6.3. In cases where they work in Vietnam, they shall be reimbursed according to the following travel expense regulations:

State officials from Vietnamese agencies abroad who work in Vietnam for a continuous period of 30 days (from the day they leave their host country until the day they leave Vietnam) shall receive the full subsistence allowance applicable at their place of work abroad.

If they work in Vietnam for more than 30 days, state officials shall not receive subsistence allowances from abroad starting from the day they return to work in Vietnam, but shall receive 100% of their domestic salary.

During their work in Vietnam, if state officials travel away from their workplace, they shall be reimbursed domestic travel expenses according to the domestic travel expense regulations issued by the Ministry of Finance.

The reimbursement of travel expenses in Vietnam shall be paid by Vietnamese agencies abroad in foreign currency based on the conversion rate from Vietnamese dong to foreign currency as announced by the Ministry of Finance at the time of work in Vietnam.

6.4. Payment vouchers: ticket stubs or photocopies of air tickets, train tickets, or other means of transportation accompanied by valid payment invoices, hotel invoices, and foreign exchange rate notifications.

7. Office supplies:

Each quarter, departments must prepare plans for the use of office supplies so that the agency can purchase and distribute them to officials within the annual state budget allocation for Vietnamese agencies abroad.

8. Guesthouses and collective dining halls:

- Where conditions permit the establishment of a collective dining hall, the Head of the Vietnamese Agency abroad shall make specific provisions regarding its operation on the principle of self-financing, with no state budget support or revenue redistribution from this service.

- Any Vietnamese agency abroad that can allocate space in its headquarters for guesthouses or reception rooms shall set the service fee rates for guesthouses. The state budget will not support these services. Vietnamese agencies abroad shall remit a portion of the revenue from these services to the state budget according to Decision No. 29/2005/QĐ-BTC dated May 20, 2005, issued by the Ministry of Finance, concerning financial regulations for certain sources of income of Vietnamese representative agencies abroad.

9. Receptions, hospitality, contributions to diplomatic delegations, gifts:

9.1. Receptions: Heads of managing agencies shall stipulate the reception regulations for their agencies abroad regarding the target audience and standards.

Regular visitors are only served mineral water or tea. No tobacco, alcohol, or beer shall be provided.

For receptions related to business activities, the Head of the Vietnamese Agency abroad shall decide within the agency's budget.

Equipment and supplies for regular receptions shall be funded by the agency's budget and managed and used separately.

9.2. Hospitality: On national holidays such as National Day, Army Day, and the anniversary of diplomatic relations between two countries, the Head of the Vietnamese Agency abroad shall follow the guidelines of the managing agency. Hospitality should be conducted economically.

9.3. Contributions to diplomatic delegations: Contributions to diplomatic organizations in the host country shall be settled according to the notification of the diplomatic organization.

9.4. Gifts for diplomatic purposes: The maximum expenditure for gifts to high-level leaders of the host country, including the head of state, Speaker of Parliament, Prime Minister, and head of the ruling party, is up to 100 USD per gift; for ministers and deputy ministers, it is up to 50 USD per gift, depending on the importance of the recipient; and for other recipients, it is up to 30 USD per gift. Cash shall not be used as gifts.

The number of gifts shall be decided by the Head of the Vietnamese Agency abroad.

In special cases, the Head of the managing agency may decide or delegate the decision to the Head of the Vietnamese Agency abroad to determine the expenditure level appropriate to the actual situation.

10. Construction and investment in offices and residences:

Investment construction projects of Vietnamese agencies abroad shall be carried out in accordance with Decision No. 02/2008/QĐ-TTg dated January 7, 2008, issued by the Prime Minister, on the management regulations for investment construction projects of Vietnamese representative agencies abroad and other Vietnamese agencies abroad, and the relevant laws guiding the implementation of this decision.

IV. ACCOUNTING AND BUDGET SETTLEMENT REGULATIONS

1. Revenue control:

1.1. Cash receipts: Receipt vouchers must be accompanied by supporting documents. If the receipt is required to be submitted to the state budget, a tax receipt form approved by the Vietnamese tax authority must be used.

1.2. Bank receipts: Cheques and bank transfers as reported by the bank (reflected in the bank subsidiary ledger; bank statement of accounts).

2. Expenditure control:

Accounting staff shall verify payment vouchers in compliance with permitted regulations, submit them for approval by the Head of the Vietnamese Agency abroad, and record them as follows:

- Payment voucher: clearly stating the purpose of the expenditure, amount in figures and words, accompanied by invoices and supporting documents from the supplier, and translated into Vietnamese as required by current laws.

- Method of payment: cash, cheque, or bank transfer.

- Recorded in the corresponding budget account.

- When purchasing goods, materials, or equipment in Vietnam, an invoice must be provided. If the value exceeds 100,000 VND, a VAT invoice as prescribed by the Vietnamese tax authority must also be included. For freight charges, a valid invoice from the carrier must be provided. Foreign currency payments shall be based on the exchange rate from Vietnamese dong to foreign currency as announced by the Ministry of Finance at the time of purchase.

For certain documents or goods of Vietnamese agencies abroad that cannot be sent as consigned cargo, they shall be paid for at the rate of overweight or carry-on baggage charges according to the invoice of the carrier, accompanied by confirmation of the quantity of goods received by the Head of the Vietnamese Agency Abroad.

3. Carrying over funds to the next year:

Any budgetary funds allocated in the current year and revenues retained for expenditure but not fully utilized may be carried forward to the next year to implement approved tasks.

4. Opening transaction accounts:

Vietnamese agencies abroad shall open transaction accounts with local banks to receive funds and reflect income and expenditure contents in accordance with the regulations of the host country and Decree No. 28/2005/PL-UBTVQH11 dated December 13, 2005 on Foreign Exchange issued by the Standing Committee of the National Assembly and guiding documents for its implementation.

The account shall be named after the Vietnamese Agency Abroad, with the account holder being the Head of the Vietnamese Agency Abroad or staff members authorized in writing by the Head of the Vietnamese Agency Abroad.

5. Accounting system for detailed tracking of revenue and expenditure items and financial reporting forms prescribed as follows:

5.1. Vietnamese agencies abroad must organize accounting work, establish accounting structures, prepare annual budget settlement reports in accordance with Decision No. 19/2006/QD-BTC dated March 30, 2006 of the Minister of Finance on the accounting regime for administrative and public institutions, Circular Joint No. 50/2005/TTLT-BTC-BNV dated June 15, 2005 of the Ministry of Home Affairs and the Ministry of Finance guiding standards, conditions, procedures for appointing, dismissing, replacing and granting allowances to chief accountants and accounting supervisors in state accounting units; Decision No. 67/2004/QD-BTC dated August 13, 2004 of the Ministry of Finance on the regulation on self-auditing of finance and accounting in agencies and units using state budget funds and provisions of the Accounting Law and Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in the field of state accounting.

5.2. The content of the annual state budget settlement report shall comply with Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance guiding the examination, verification, and notification of annual settlements for administrative agencies, public institutions, organizations supported by the state budget, and budgets at all levels.

In addition, Vietnamese agencies abroad shall submit to their supervisory agencies annual budget expenditure settlement reports according to Form Nos. 9 and 10 attached to this Circular.

5.3. The supervisory agency is responsible for preparing, examining, and consolidating annual settlement reports of Vietnamese agencies abroad into its own annual settlement report; submitting it to the Ministry of Finance for review in accordance with current regulations, no later than October 1st of the following year.

Annual settlement reports of Vietnamese agencies abroad shall be submitted by the supervisory agency to the Ministry of Finance no later than July 1st of the following year.

During the review of the supervisory agency's annual settlement report, the Ministry of Finance may request a re-examination of the annual settlement approval of Vietnamese agencies abroad if deemed necessary.

V. IMPLEMENTATION

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

The regimes stipulated in this Circular shall be implemented from the 2008 fiscal year.

2. This Circular replaces Circular No. 02/2003/TT-BTC dated March 9, 2003 of the Ministry of Finance guiding the financial management regime for Vietnamese representative agencies abroad.

Decree No. 26/1999/QĐ-BTC dated March 13, 1999 of the Ministry of Finance prescribing the rates for housing, electricity, water, and gas usage by accompanying and self-funded visiting personnel at Vietnamese representative agencies abroad, and any conflicting provisions in previous documents, are hereby abolished.

3. Supervisory agencies are responsible for guiding subordinate Vietnamese agencies abroad in implementing this Circular and issuing internal financial management regulations to guide their overseas representative agencies in utilizing allocated funds for intended purposes, effectively and in compliance with state policies and regimes.

4. In the course of implementation, if there are any difficulties, Vietnamese agencies abroad or relevant agencies are requested to report to the Ministry of Finance for research and appropriate amendments./.