Circular No. 33/2000/TT-BTC guiding the preparation of budgets, allocation, payment, and settlement of administrative management expenses for units piloting the allocation of staff quotas and administrative management expenses in Ho Chi Minh City.

CIRCULAR

Guidelines for preparing budgets, allocating, settling accounts, and finalizing administrative management expenses for units piloting the allocation of staffing quotas and administrative management expenses in Ho Chi Minh City

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To implement Decision No. 230/1999/QĐ-TTg dated December 17, 1999 of the Prime Minister on piloting the allocation of staffing quotas and administrative management expenses for certain agencies under Ho Chi Minh City, the Ministry of Finance provides guidelines for preparing budgets, allocating, settling accounts, and finalizing administrative management expenses for agencies piloting such allocations as follows:

1. Objectives subject to cost allocation:

The provisions of this Circular apply to agencies that have been approved by the Chairman of the People's Committee of Ho Chi Minh City to pilot the allocation of staffing quotas and administrative management expenses according to Decision No. 230/1999/QĐ-TTg dated December 17, 1999 of the Prime Minister.

2. Contents of cost allocation:

Agencies piloting the allocation will be allocated regular expenditure items including:

1. Salary

2. Wages

3. Allowances

4. Bonuses

5. Collective welfare

6. Payments to individuals

7. Public service payment expenses

8. Office supplies

9. Information, propaganda, and communication

10. Conferences

11. Travel expenses

12. Rental expenses

13. Outgoing transfers

14. Incoming transfers

15. Regular maintenance costs for fixed assets

16. Professional business expenses

17. Other expenses

3. Contents not subject to cost allocation:

1. Periodic repair costs, major repairs of equipment, working tools, and offices, and official residences.

2. Purchase costs of fixed assets, improvements, and construction of offices and official residences.

3. Training costs for officials and civil servants.

4. Budget preparation:

Each year, agencies subject to cost allocation prepare their budgets based on the guidance provided in Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance, which guides the decentralization, preparation, implementation, and settlement of the State budget. The preparation of the budget must detail into two parts:

4.1. Budget for cost allocation contents:

a. The budget for cost allocation contents is prepared based on the following criteria:

- Staffing quota assigned by the competent authority.

- Total salary fund determined based on the number of staff assigned, salary grade, and position level of officials and civil servants as stipulated in Decree No. 25/CP dated May 23, 1993, Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government, and other relevant legal documents concerning salary policies.

Standards, norms, and financial expenditure regulations of the State and guidance from the People's Committee of Ho Chi Minh City consistent with local budget capacity.

- Actual expenditure situation of the agency in the years 1997, 1998, and 1999.

b. The budget may be reviewed and adjusted in the following cases:

- The State supplements or amends salary policies.

- The State supplements or amends standards, norms, and regulations regarding the use of regular budget expenditures.

- Merger or division of units implementing the allocation due to decisions by competent state authorities.

- Certain special cases decided by the People's Committee of Ho Chi Minh City within its jurisdiction: early retirement pay increases for those retiring early; supplementary allowances for officials and civil servants who are terminated according to Decree No. 96/1998/NĐ-CP dated November 17, 1998 of the Government on termination policies for officials and civil servants; special outgoing and incoming delegations not foreseen in the budget.

4.2. Budget for non-cost allocation contents:

The budget for non-cost allocation contents is prepared based on current regulations for annual plan budget preparation.

5. Allocation of budget funds:

After receiving the allocated budget figures, the pilot agencies allocate funds annually and quarterly according to the following:

- For allocated funds: allocate into other expense items (Item 134) of the State budget schedule.

- For non-allocated funds: allocate according to intended use consistent with the State budget schedule.

- Submit all budget allocation documents to the financial department and the State Treasury at the same level as the basis for funding allocation.

6. Allocation of funds:

Based on the quarterly budget funds sent by the pilot agencies, the financial department proceeds to allocate funds to the units through the State Treasury. Funds are allocated in the form of budget limits.

- For allocated funds, they are allocated into other expense items (134).

- For non-allocated funds, they are allocated according to intended use consistent with the State budget schedule.

7. Settlement of funds:

For allocated funds: The State Treasury of Ho Chi Minh City implements the transfer of funds according to the spending proposal of the account holder. The account holder is responsible for spending decisions in accordance with national policies and regulations and the guidance of this Circular.

- For non-allocated funds: The State Treasury bases on the quarterly budget of the agency and settles payments according to current national regulations.

- For procurement and repair expenses, the unit must conduct bidding in accordance with current regulations.

8. Management and utilization of saved funds:

Pilot agencies that reduce staffing and save administrative expenses below the allocated budget, confirmed by the financial department after quarterly and annual settlements, can use the savings for the following purposes:

- Increase income for officials and civil servants in the agency according to the level set by the Government Organizational Cadre Board, 70% of the saved funds. This expenditure item is recorded in Item 108 of the State budget schedule.

- Reward officials and civil servants with 20% of the saved funds. This expenditure item is recorded in Item 104 of the State budget schedule.

- Welfare for the agency with 10%. This expenditure item is recorded in Item 105 of the State budget schedule.

- Support for officials and civil servants in the agency who are part of the reduction in staffing and early retirement programs (if applicable). This expenditure item is recorded in Item 105 of the State budget schedule.

The ratios above have guiding characteristics; depending on the situation of cost-saving expenditures, the head of the unit shall decide on the rates for increasing income, rewards, and benefits accordingly.

In cases where the saved funds are not fully utilized, the agency may transfer them to the following year for continued use to supplement income, rewards, and benefits for civil servants within the agency.

9/ Accounting and settlement of funds:

Units implementing the pilot administrative expenditure quota system shall implement the accounting regime for public institutions as prescribed in Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance; and settle funds according to Circular No. 103/1998/BTC-TT dated July 18, 1998, issued by the Ministry of Finance.

- For allocated expenditure funds: The agency shall settle actual expenditures according to the items listed in the State Budget Schedule, accompanied by a detailed explanation of the annual settlement, analysis of the funds saved during the year, and the use of saved funds to supplement income, reward expenditures, and welfare. Any unused saved funds in the year shall be recorded in the supplementary income, reward, and welfare funds to be carried over to the next year for continued use.

- For non-allocated expenditure funds: Settlement shall be conducted according to current regulations. Unused funds for these expenditure items must be refunded to the state budget.

After approval, the expenditure quota plans need to be submitted to the Government's Organization-Civil Service Department and the Ministry of Finance for monitoring and supervision of implementation. Units implementing the expenditure quota system shall comply with the reporting and accounting systems and be subject to financial inspection and supervision by financial authorities at all levels according to the current financial regulations and the provisions of this Circular.

10/ Implementation Provisions:

This Circular takes effect from January 1, 2000 (the date when Decree No. 230/1999/QĐ-TTg dated December 17, 1999, issued by the Prime Minister comes into force). During the implementation process, if there are any difficulties, they should be reported to the Ministry of Finance for study and resolution.