Circular No. 33/2006/TT-BTC guiding the management of cash receipts and payments through the State Treasury system

CIRCULAR

Guidelines for managing cash receipts and expenditures through the State Treasury System

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Pursuant to 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;

Pursuant to Decision No. 235/2003/QĐ-TTg dated November 13, 2003 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance;

To strengthen the management of the state budget fund and implement the state's monetary policy, the Ministry of Finance guides the management of cash through the State Treasury as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. All cash receipts and expenditures processed through the State Treasury must be strictly monitored and controlled to effectively manage budget revenues and expenditures; at the same time, gradually reduce the proportion of cash transactions through the State Treasury system to minimize costs related to treasury operations.

2. All units using the state budget, entities transacting with the State Treasury, communes, wards, towns (hereinafter referred to collectively as transaction entities) that have cash transactions must comply with current state regulations on cash management and the contents specified in this Circular.

3. The State Treasury manages cash within its system to ensure the need for cash payments and disbursements to transaction entities; simultaneously, it proactively coordinates with the State Bank and state commercial banks where accounts are opened to provide cash for the State Treasury.

4. Based on the cash reserve quota prescribed, State Treasuries may retain direct cash receipts to meet the needs of cash payments and disbursements to transaction entities; concurrently, they shall agree with the bank where the account is opened so that entities transacting with the State Treasury can withdraw cash directly from the bank.

II. SPECIFIC PROVISIONS

1. Contents of cash expenditures:

Transaction entities are permitted to expend cash for the following items:

1.1. Personal payment items such as salaries, wages; allowances, scholarships for students; bonuses; collective welfare; expenditures for village cadres; expenditures for revolutionary martyrs and social affairs; retirement pensions and social insurance benefits; insurance payments to individuals; other personal payment items.

1.2. Cash expenditures for construction projects, including: direct compensation payments to residents for land clearance, procurement of certain materials supplied by local people approved by local authorities and project investors (including payments made by investors to subcontractors); construction of community projects by villagers; administrative expenses for project management (salaries, allowances, travel expenses, training costs, conference fees, hospitality expenses, awards, and some emergency expenditures due to natural disasters or enemy attacks).

In special cases, contractors who have opened deposit accounts at the State Treasury according to authorized regulations may be paid in cash for salary payments; procurement of materials and other small expenditures not exceeding five million dong per item.

1.3. Expenditures for certain tasks of units under the Ministry of National Defense, Ministry of Public Security, and the Office of the Government's Confidential Services, including secret funds, prisoner maintenance costs, and other regular cash expenditures.

1.4. Repayment to citizens (limited to bond repayments, retail bonds issued within the State Treasury system to individuals, and repayment in cash for seized gold, jewelry, and personal effects to their original owners).

1.5. Purchase of food reserves (limited to purchases directly from the public by the National Food Reserve Agency; excluding purchases through General Companies or Food Companies settled by transfer).

1.6. Other cash expenditures from the state budget and expenditures from transaction entity deposit accounts to entities or individuals without accounts at the State Treasury or banks.

If transaction entities require, the State Treasury will process non-cash payments for the expenditures specified in Clause 1, Section II of this Circular.

2. Registration for cash withdrawal at the State Treasury:

2.1. Amounts requiring prior registration: Transaction entities with the State Treasury that need to withdraw cash from the State Treasury on a given day (one or multiple transactions) exceeding the limits set forth below must submit a written application to the State Treasury where the account is held one day in advance specifying the amount and time of withdrawal to allow the State Treasury to prepare and supply cash promptly.

The amounts requiring prior registration with the State Treasury are specified as follows:

- Two hundred million dong or more for transaction entities with provincial State Treasuries (hereinafter referred to collectively as provincial State Treasuries).

- One hundred million dong or more for transaction entities with district, county, town, or city-level State Treasuries (hereinafter referred to collectively as district-level State Treasuries).

Transaction entities must register their daily cash withdrawal requirements or register for multiple different days, clearly stating the amount and time of each withdrawal.

In urgent cases where transaction entities need to withdraw cash from the State Treasury on the same day exceeding the specified limit, the entity may apply by phone to the authorized officer at the State Treasury (Director or Head of Treasury Department for provincial State Treasuries or Chief Cashier for district-level State Treasuries) for immediate consideration; subsequently, the entity must submit a formal written application.

2.2. The Minister of Finance authorizes the Director-General of the State Treasury to adjust the threshold for cash transactions requiring prior registration with the State Treasury as stipulated in Point 2.1, Clause 2, Section II of this Circular to suit economic and social development conditions over time.

3. Cash reserve quotas at State Treasury units:

3.1. The cash reserve quota is the necessary level of cash reserves to ensure cash payment and disbursement needs within a specific period at each State Treasury unit.

3.2. The cash reserve limit for State Treasury offices is determined according to the following formula:

Where:

- The number of working days in the planned quarter is set at 65 days.

- The cash reserve standard is specified by the Director of the Provincial State Treasury based on the cash disbursement tasks in the quarter and the number of transactions involving deposits and withdrawals of cash between the State Treasury and the bank where the account is opened.

For State Treasury offices that frequently have large cash expenditure requirements and face difficulties in travel and transactions involving deposits and withdrawals of cash with banks, the cash reserve limit is set at a level appropriate to the actual conditions in the locality.

3.3. The cash reserve limit for District State Treasuries and Provincial State Treasury Offices is determined and announced by the Director of the Provincial State Treasury or a person authorized by him (Deputy Director of the Provincial State Treasury).

4. Responsibilities of agencies and units in managing and using cash:

4.1. Responsibilities of transaction units:

4.1.1. When there are cash revenues from state budget (such as fees, charges, etc.), the transaction units must promptly deposit the full amount of cash collected into the State Treasury where the unit conducts transactions as prescribed; the transaction unit shall not make cash expenditures except in cases allowed under the prescribed regulations.

4.1.2. Transaction units must carry out cash payments in accordance with the permitted purposes as stipulated in Clause 1, Section II of this Circular. In cases where payments are made to organizations or individuals providing goods or services without a bank account or State Treasury account, the unit must clearly indicate on the cash payment request form (such as budget estimate withdrawal and cash receipt form; village budget expenditure order and cash receipt form; check, etc.) and bear responsibility for the accuracy of the information recorded on the form.

4.1.3. When making payments for purchasing goods or services from other organizations, entities, or individuals with bank accounts or State Treasury accounts, transaction units must make payments through non-cash methods, except for small payments not exceeding VND 5 million for a single expense which may be paid in cash.

4.2. Responsibilities of the State Treasury:

4.2.1. All State Treasury units (District State Treasuries and Provincial State Treasury Offices) must strictly adhere to the cash reserve limits announced. If the actual cash reserve exceeds the announced limit, the State Treasury units must deposit the excess cash into the bank where the account is held at the beginning of the next working day, except with written approval from the Provincial State Treasury Director or an authorized person.

Heads of State Treasury units are responsible for supervising compliance with cash reserve limits within their units; they are accountable to higher-level State Treasury heads if cash reserves exceed the limit or if cash losses occur at the unit's cash fund.

4.2.2. State Treasury units must closely cooperate with revenue collection agencies and financial departments to ensure all cash revenues from the state budget are fully and promptly deposited into the State Treasury.

4.2.3. The State Treasury implements control and payment of cash disbursements to transaction units in conjunction with the process of controlling state budget expenditures and based on the permitted cash disbursement items, the cash withdrawal needs registered by the units (for units requiring large cash withdrawals in one day), lawful and valid payment vouchers issued by the units, ensuring compliance with prescribed regulations.

In cases of cash shortages, State Treasury units may apply preferential treatment in cash payments; first ensuring payments for salaries, salary supplements, defense and security expenses, social insurance contributions, social assistance, debt repayments, and other essential minimum cash payments required by transaction units.

4.2.4. The State Treasury has the right to refuse cash payments and notify the transaction units accordingly; it also bears responsibility for its decisions in the following situations:

- Making cash payments to suppliers of goods or services with bank accounts or State Treasury accounts, including those within the permitted disbursement items as stipulated in Clause 1, Section II of this Circular, except for small payments not exceeding VND 5 million for a single expense for suppliers with bank accounts or State Treasury accounts which may be paid in cash.

- Making cash payments for expenditures not included in the permitted disbursement items as stipulated in Clause 1, Section II of this Circular.

- Making cash payments in large amounts exceeding the previously registered cash disbursement limit (the difference between the requested payment amount and the registered cash disbursement amount).

4.2.5. State Treasury units must proactively coordinate with the Branch of the National Bank of Vietnam or state commercial bank branches where the account is held to provide sufficient and timely cash.

In special cases, when the Provincial State Treasury implements cash transfers with subordinate District State Treasuries, it must accurately determine the cash payment and disbursement needs, transfer requirements, and necessary cash reserve levels to plan cash transfers precisely in line with actual needs, ensuring no idle funds and maintaining each State Treasury unit's liquidity. Cash transfers between the Provincial State Treasury and subordinate District State Treasuries are carried out according to the capital transfer mechanism within the State Treasury system.

5. Inspection and Handling of Violations:

5.1. Provincial and District State Treasury units are responsible for inspecting the management and compliance with cash reserve limits within their units.

The State Treasury at higher levels shall inspect the management and compliance with cash reserve limits of the subordinate State Treasuries.

5.2. During the inspection process, if violations of cash management and usage regulations such as exceeding cash reserve limits; making cash payments for expenditures not included in the contents specified in Clause 1, Section II of this Circular; making cash payments to units that have bank accounts or State Treasury accounts,... the heads of the State Treasury units shall take appropriate measures within their authority and report to the State Treasury at higher levels.

III. IMPLEMENTATION

This Circular shall take effect fifteen days from the date of publication in the Official Gazette, replacing Circular No. 21/1999/TT-BTC dated February 24, 1999 of the Ministry of Finance. Provisions on cash revenue and expenditure management through the State Treasury system in previous documents that conflict with the provisions of this Circular shall cease to be effective.

Units within the State Treasury system and units transacting with the State Treasury are responsible for implementing this Circular./.