Circular No. 327/2016/TT-BTC stipulates the preparation of budgets, management, use, and settlement of funds extracted from recovered revenues discovered through audit work that have been actually paid into the state budget.

CIRCULAR

Regulations on the preparation of budgets, management, use, and settlement of funds to ensure activities for popularizing, educating about laws, standardizing access to laws, and grassroots mediation
derived from revenues recovered through inspection work
that have actually been deposited into the state budget

Pursuant to the Inspection Law 2010;

Pursuant to the State Budget Law 2015;

Pursuant to Decree No. 86/2011/NĐ-CP dated September 22, 2011 of the Government detailing and guiding the implementation of certain provisions of the Inspection Law;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Administrative and Public Financial Affairs Department,

The Minister of Finance issues this Circular to regulate the preparation of budgets, management, use, and settlement of funds derived from revenues recovered through inspection work that have actually been deposited into the state budget.

Article 1. Scope of Regulation and Applicability

1. This Circular regulates the preparation of budgets, management, use, and settlement of funds derived from revenues recovered through inspection work that have actually been deposited into the state budget.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) State inspection agencies as stipulated in Clause 1, Article 4 of Law on Inspection No. 56/2010/QH12, including:

- Government Inspectorate;

- Inspectorate of ministries and ministerial-level agencies (hereinafter referred to collectively as Inspectorate of ministries);

- Inspectorate of provinces and centrally-administered cities (hereinafter referred to collectively as Inspectorate of provinces);

- Inspectorate of departments;

- Inspectorate of districts, towns, and provincial cities (hereinafter referred to collectively as Inspectorate of districts).

b) Agencies and organizations subject to inspection.

c) Relevant agencies, organizations, and individuals.

1. Amounts increased to the state budget from taxes, fees, and other revenues already paid into the state budget or settled through offsetting methods, including:

State inspection agencies may extract a portion from revenues recovered through inspection work that have actually been deposited into the state budget, including:

1. Funds belonging to the state budget that have been embezzled, misused, or lost due to illegal acts.

2. Increased revenue for the state budget from taxes, fees, charges, and other revenues that have actually been deposited into the state budget, including:

a) Increased revenue from agencies, organizations, and individuals who have obligations to declare and pay the state budget but fail to declare, declare incorrectly, evade taxes, commit tax fraud, or violate other regulations on declaration and payment of taxes, leading to underpayment of taxes, fees, charges, and other revenues payable to the state budget, and over-refunds of taxes not in accordance with the law, as identified and recommended by the inspection agency in working records or inspection conclusions, and actually paid into the state budget by the inspected entity.

b) Revenue collected by agencies and units from entities that were not permitted to collect according to the law or collected beyond the prescribed limits, as identified and recommended by the inspection agency, and actually paid into the state budget by the collecting unit. Interest accrued and late payment penalties for state budget funds that have been recovered and actually paid into the state budget.

3. Expenditures managed improperly and returned to the state budget (for expenditures that have been settled), including:

a) Incorrect unit prices, quantities, norms, and other discrepancies in investment construction projects;

b) Using state budget funds for purposes not within the scope of state budget expenditures, not in accordance with assigned tasks, or in violation of expenditure standards and norms;

c) Using state budget funds allocated without self-management (for administrative agencies) or non-recurring allocations (for public institutions) for purposes that should be funded by self-managed or recurring state budget allocations;

d) Entities reporting incorrect data leading to the state budget allocating and disbursing higher amounts than the entities are entitled to according to the law;

đ) Using state budget funds that should be refunded to the state budget but retained by the entity;

e) Improperly established reserve funds; exceeding internal expenditure regulations.

Article 3. Rate of Deduction

1. State inspection agencies shall deduct according to the specific rates below:

a) For the Government Inspectorate:

- Shall be entitled to deduct up to 30% of the total amount actually paid into the state budget for amounts up to VND 50 billion/year;

- Shall be entitled to deduct additionally up to 20% of the total amount actually paid into the state budget for amounts from over VND 50 billion to VND 80 billion/year;

- Shall be entitled to deduct additionally up to 10% of the total amount actually paid into the state budget for amounts over VND 80 billion/year.

b) For inspectors of ministries, agencies at the ministerial level, provincial inspectors:

- Shall be entitled to deduct up to 30% of the total amount actually paid into the state budget for amounts up to VND 10 billion/year;

- Shall be entitled to deduct additionally up to 20% of the total amount actually paid into the state budget for amounts from over VND 10 billion to VND 20 billion/year;

- Shall be entitled to deduct additionally up to 10% of the total amount actually paid into the state budget for amounts over VND 20 billion/year.

c) For department inspectors, district, county, city, town inspectors under provinces:

- Shall be entitled to deduct up to 30% of the total amount actually paid into the state budget for amounts up to VND 2 billion/year;

- Shall be entitled to deduct additionally up to 20% of the total amount actually paid into the state budget for amounts from over VND 2 billion to VND 3 billion/year;

- Shall be entitled to deduct additionally up to 10% of the total amount actually paid into the state budget for amounts over VND 3 billion/year.

2. Based on the budget capacity and the actual implementation of tasks of state inspection agencies at local levels, the People's Committee of the province shall submit to the Provincial People's Council for decision the specific deduction rate (percentage) on the total amount actually paid into the state budget, ensuring it does not exceed the deduction rate prescribed in Clause 1 of this Article.

Article 4. Procedures for Deduction and Payment

1. For state inspection agencies:

a) For recovered funds actually paid into the state budget through the temporary holding account of the inspection agency:

State inspection agencies shall open a temporary holding account at the National Treasury to temporarily hold recovered funds discovered through inspections pending resolution.

When there is sufficient basis to conclude that funds belonging to the state budget have been improperly used or lost and must be recovered and returned to the state budget as stipulated in Article 2 of this Circular, the inspection decision maker shall issue a recovery decision. The recovery decision must be in writing, clearly stating the amount to be recovered, the responsibility of the inspected entity to implement, the time frame for implementation; and the temporary holding account number opened by the state inspection agency at the National Treasury.

After ten working days from the expiration date of the appeal or lawsuit period as prescribed by the Law on Petitions and the Administrative Procedure Law, if the inspected entity does not appeal or sue, the state inspection agency shall deduct from the temporary holding account and pay into the state budget the amount specified in the recovery decision.

After completing the deduction from the temporary holding account and paying into the state budget, the inspection agency shall notify the inspected entity in writing about the payment of the recovered funds into the state budget as decided by the inspection agency. In the notification, the inspection agency shall provide detailed information on each amount paid into the state budget, such as the recovery decision number, the content of the recovery, and for construction projects, the name of the project sponsor, the project, the source of funding, and the fiscal year.

b) For recovered funds actually paid into the state budget without going through the temporary holding account of the inspection agency:

Based on the report on the implementation of conclusions, recommendations, and decisions on handling by the inspection agency accompanied by the receipt of payment into the state budget and related documents (if any) of the inspected entities, the inspection agency shall consolidate the recovered funds into the results of post-inspection handling.

Any improper funds identified by the inspection agencies and immediately paid into the state budget during the inspection process (before issuing the inspection conclusion), the head of the inspection team shall specifically mention these payments in the inspection conclusion; the inspection agency shall consolidate these recoveries into the results of post-inspection handling and reconcile with the tax authority.

c) The state inspection agency shall be responsible for monitoring, inspecting, and urging the implementation of inspection conclusions, recommendations, and handling decisions.

d) At the end of the year, based on the results of recovered funds actually paid into the state budget and the deduction rate prescribed in Article 3 of this Circular, the state inspection agency (in cases where the state inspection agency is a budgetary unit) or the management agency of the state inspection agency (in cases where the state inspection agency is not a budgetary unit) shall submit a written request along with payment receipts, relevant documents, and materials proving the payment of improper funds into the state budget, confirmed by relevant agencies, to the financial agency at the same level requesting the deduction of funds as prescribed.

2. For inspected agencies and units:

Based on the inspection conclusions, recommendations, and handling decisions of the state inspection agency, the inspected entity shall be responsible for paying the improper funds stipulated in Article 2 of this Circular into the state budget. When processing the payment, the inspected entity shall accurately record the content of each payment made in accordance with the inspection, the inspection conclusion (clearly stating the number, month, and year) on the payment document.

Based on the deadline for implementing the inspection conclusion as prescribed in the Inspection Law No. 56/2010/QH12, the inspected entity shall prepare a report on the implementation of the inspection conclusions, recommendations, and handling decisions of the Inspection Agency (accompanied by relevant documents and materials proving the payment of improper funds into the state budget, confirmed by relevant agencies) and send it to the superior management unit for consolidation and reporting to the inspection agency that issued the inspection conclusion.

3. Responsibilities of the Financial Agency:

BASED ON THE PROPOSAL DOCUMENT OF THE STATE INSPECTION AUTHORITY OR THE SUPERVISING AUTHORITY OF THE STATE INSPECTION AUTHORITY ACCOMPANIED BY THE PAYMENT RECEIPT TO THE STATE BUDGET (INCLUDING BOTH CENTRAL AND LOCAL BUDGETS) WITH ATTACHED EVIDENCES AND DOCUMENTS CONFIRMING THE PAYMENT OF VIOLATION AMOUNTS INTO THE STATE BUDGET, AND CONFIRMED BY RELEVANT AUTHORITIES; BASED ON THE PERCENTAGE SPECIFIED IN CLAUSE 1 OF ARTICLE 3 OF THIS CIRCULAR, THE FINANCIAL AUTHORITIES AT ALL LEVELS SHALL REVIEW AND SUBMIT TO THE AUTHORIZED AUTHORITY FOR DECISION ON THE AMOUNT OF FUNDS TO BE ALLOCATED AND ORGANIZE THE DISTRIBUTION OF FUNDS TO THE STATE INSPECTION AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 6 OF THIS CIRCULAR.

THE ALLOCATION OF FUNDS TO BE ALLOCATED TO THE STATE INSPECTION AUTHORITY AT WHICH LEVEL SHALL BE ARRANGED FROM THE BUDGET OF THAT LEVEL BASED ON THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET.

ARTICLE 5. USE OF FUNDS TO BE ALLOCATED

1. THE STATE INSPECTION AUTHORITY IS ENTITLED TO USE FUNDS TO BE ALLOCATED FOR THE FOLLOWING PURPOSES:

a) ENHANCING MATERIAL INFRASTRUCTURE, PURCHASING, REPAIRING ASSETS, MACHINERY, EQUIPMENT, WORKING TOOLS, AND MEANS OF TRANSPORTATION TO SUPPORT INSPECTION WORK, COMPLAINT HANDLING, REPORTING, AND ANTI-CORRUPTION EFFORTS.

b) SUPPLEMENTING TRAINING, SKILL DEVELOPMENT, AND WORKSHOPS TO IMPROVE PROFESSIONAL SKILLS, AND ORGANIZING DELEGATIONS TO LEARN EXPERIENCES DOMESTICALLY AND INTERNATIONALLY FOR INSPECTORS, STAFF, AND EMPLOYEES OF THE STATE INSPECTION AUTHORITY.

c) SUPPLEMENTING EXPENSES FOR INSPECTION ACTIVITIES; PURCHASING INFORMATION TO SUPPORT THE COLLECTION OF VIOLATION MONEY; SPREADING AND PROMOTING LEGAL EDUCATION ON INSPECTION, COMPLAINT HANDLING, REPORTING, AND ANTI-CORRUPTION.

d) PROVIDING SUPPORT, INCENTIVES, AND MOTIVATION FOR COLLECTIVES AND INDIVIDUALS INSIDE AND OUTSIDE THE STATE INSPECTION AUTHORITY WHO HAVE ACTIVELY COOPERATED IN INSPECTION WORK, COMPLAINT HANDLING, AND ANTI-CORRUPTION EFFORTS.

đ) PROVIDING REWARDS, INCENTIVES, AND MOTIVATION FOR STAFF AND EMPLOYEES OF THE STATE INSPECTION AUTHORITY (EXCEPT FOR ANNUAL REWARD CHARGES UNDER THE LAW ON COMPETITION AND RECOGNITION). THE AMOUNT OF INCENTIVE AND REWARD FUNDS FOR STAFF AND EMPLOYEES OF THE STATE INSPECTION AUTHORITY FROM FUNDS TO BE ALLOCATED AS PROVIDED IN THIS CIRCULAR AND THE ADDITIONAL INCOME FROM SAVINGS OF THE SELF-GOVERNING UNIT, WHEN AGGREGATED, SHALL NOT EXCEED ONE TIME THE BASIC SALARY OF THE POSITION AS REGULATED BY THE STATE IN A YEAR.

e) PROVIDING SUPPORT FOR OTHER EXPENSES WITH SOCIAL WELFARE CHARACTERISTICS.

2. THE STATE INSPECTION AUTHORITY SHALL INITIATE THE USE OF FUNDS TO BE ALLOCATED FOR THE PURPOSES AS PROVIDED IN THIS CIRCULAR. THE AMOUNT OF EXPENSES FOR THE ABOVE ITEMS SHALL BE DETERMINED BY THE HEAD OF THE STATE INSPECTION AUTHORITY AND MUST BE STIPULATED IN INTERNAL EXPENSE REGULATIONS OR MANAGEMENT AND USE REGULATIONS FOR FUNDS TO BE ALLOCATED. FOR NON-BUDGETARY STATE INSPECTION AUTHORITIES, THE STATE INSPECTION AUTHORITY MUST SUBMIT TO THE HEAD OF THE SUPERVISING AUTHORITY FOR DECISION AND SEND TO THE NATIONAL TREASURY WHERE THE ACCOUNT IS OPENED FOR THE NATIONAL TREASURY TO SERVE AS THE BASIS FOR CONTROLLING STATE BUDGET EXPENDITURES.

ARTICLE 6. PREPARATION OF BUDGET ESTIMATES, ALLOCATION OF BUDGET ESTIMATES, AND SETTLEMENT OF FUNDS TO BE ALLOCATED

1. PREPARATION AND ALLOCATION OF BUDGET ESTIMATES FOR FUNDS TO BE ALLOCATED:

a) ANNUALLY, AT THE TIME OF BUILDING THE BUDGET ESTIMATE FOR STATE BUDGET REVENUE AND EXPENDITURE; THE STATE INSPECTION AUTHORITY SHALL BASED ON THE ESTIMATED AMOUNT OF VIOLATION MONEY ACTUALLY PAID INTO THE STATE BUDGET DISCOVERED BY THE STATE INSPECTION AUTHORITY IN THE CURRENT YEAR TO DETERMINE THE FUNDS TO BE ALLOCATED FOR THE PLANNING YEAR; BUILD THE EXPENDITURE BUDGET ESTIMATE FOR THE FUNDS EXPECTED TO BE ALLOCATED FOR THE PLANNING YEAR; COMBINE THESE IN THE BUDGET ESTIMATE OF THE ORGANIZATION OR UNIT AND SUBMIT TO THE SAME LEVEL FINANCIAL AUTHORITY FOR COMBINATION INTO THE STATE BUDGET ESTIMATE TO BE SUBMITTED TO THE AUTHORIZED AUTHORITY FOR DECISION.

b) THE EXPENDITURE BUDGET ESTIMATE FOR FUNDS TO BE ALLOCATED FROM THE RECOVERY OF VIOLATION MONEY DISCOVERED THROUGH INSPECTIONS SHALL BE SEPARATELY NOTED IN THE ANNUAL BUDGET ESTIMATE OF THE STATE INSPECTION AUTHORITY (OR THE SUPERVISING AUTHORITY IF THE STATE INSPECTION AUTHORITY IS NOT A BUDGETARY UNIT).

c) AT THE END OF THE YEAR (THE YEAR OF IMPLEMENTATION OF THE PLAN ALREADY ASSIGNED), BASED ON THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET, THE STATE INSPECTION AUTHORITY SHALL INITIATE THE USE OF FUNDS TO BE ALLOCATED FROM THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET TO COVER THE ITEMS AS PROVIDED IN CLAUSE 1 OF ARTICLE 5 OF THIS CIRCULAR. THE FINANCIAL AUTHORITY WILL REVIEW AND RESOLVE THE DIFFERENCE BETWEEN THE FUNDS ALLOCATED BASED ON THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET AND THE AMOUNT ALLOCATED IN THE BUDGET ESTIMATE OF THE ORGANIZATION OR UNIT AS FOLLOWS:

IF THE FUNDS ALLOCATED BASED ON THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET EXCEED THE AMOUNT ALLOCATED IN THE BUDGET ESTIMATE FOR THE YEAR, THE SHORTFALL WILL BE ALLOCATED IN THE BUDGET ESTIMATE FOR THE NEXT YEAR (FOR EXAMPLE, THE SHORTFALL IN 2015 WILL BE ALLOCATED IN THE BUDGET ESTIMATE FOR 2017). IN CASE OF NECESSITY, THE STATE INSPECTION AUTHORITY (OR THE SUPERVISING AUTHORITY OF THE STATE INSPECTION AUTHORITY) SHALL ISSUE A DOCUMENT REQUESTING THE ADDITIONAL ALLOCATION OF FUNDS TO BE ALLOCATED AND SUBMIT A DETAILED BUDGET ESTIMATE ACCOMPANIED BY THE PAYMENT RECEIPT TO THE STATE BUDGET TO THE SAME LEVEL FINANCIAL AUTHORITY FOR SUBMISSION TO THE AUTHORIZED AUTHORITY TO APPROVE THE ADDITIONAL ALLOCATION OF FUNDS TO BE ALLOCATED AS PROVIDED.

IF THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET IS LOWER THAN THE AMOUNT ALLOCATED IN THE BUDGET ESTIMATE FOR THE YEAR, THE SURPLUS WILL BE CANCELLED AT THE NATIONAL TREASURY (FOR THE CASE WHERE THE STATE INSPECTION AUTHORITY HAS NOT DRAWN DOWN THE BUDGET ESTIMATE) OR OFFSET AGAINST THE AMOUNT TO BE ALLOCATED FOR THE NEXT YEAR (FOR THE CASE WHERE THE STATE INSPECTION AUTHORITY HAS DRAWN DOWN THE BUDGET ESTIMATE FOR EXPENDITURE; FOR EXAMPLE, THE SURPLUS ALLOCATED IN 2015 WILL BE OFFSET AGAINST THE BUDGET ESTIMATE FOR 2017).

2. MANAGEMENT, USE, AND SETTLEMENT OF FUNDS TO BE ALLOCATED:

THE USE AND SETTLEMENT OF FUNDS TO BE ALLOCATED BASED ON THE AMOUNT ACTUALLY PAID INTO THE STATE BUDGET SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF THE STATE BUDGET LAW AND CURRENT GUIDING DOCUMENTS.

FOR NON-BUDGETARY STATE INSPECTION AUTHORITIES, THE SUPERVISING AUTHORITY OF THE STATE INSPECTION AUTHORITY SHALL BE RESPONSIBLE FOR AGGREGATING AND SETTLING IN THE COMBINED REPORT OF THE UNIT.

Article 7. Implementation Organization

1. THIS CIRCULAR SHALL TAKE EFFECT FROM MARCH 1, 2017.

2. The Joint Circular No. 90/2012/TTLT-BTC-TTCP dated May 30, 2012, issued by the Ministry of Finance and the Government Inspectorate on the establishment of budget estimates, management, use, and settlement of funds extracted from recovered revenues identified through inspection work that have been fully paid into the State budget shall cease to be effective from the date this Circular takes effect.

3. In the course of implementation, if there are any difficulties, agencies and units are requested to report them to the Ministry of Finance for consideration and resolution./.