Circular No. 36/1998/TT-BTC guiding the financial regime for the Civil Aviation Air Traffic Management Center of Vietnam

CIRCULAR

HGuidelines on financial management for the Civil Aviation Control Center of Vietnam

Based on Decree No. 56/CP dated October 2, 1996 of the Government regarding state-owned enterprises engaged in public services and Circular No. 06 TC/TCDN dated February 24, 1997 of the Ministry of Finance guiding the financial management regime for state-owned enterprises engaged in public services;

Based on Decision No. 15/1998 QD-TTg dated January 24, 1998 of the Prime Minister "Regarding the conversion of the Civil Aviation Control Center of Vietnam into a state-owned enterprise engaged in public services";

To align with the specific characteristics of operations in the field of air traffic control management, the Ministry of Finance provides detailed guidance on certain aspects of financial management for the Civil Aviation Control Center of Vietnam as follows:

A. GENERAL PROVISIONS

The Civil Aviation Control Center of Vietnam (TTQLBDDVN) is a state-owned enterprise engaged in public services, tasked with providing air traffic control services according to state policy, assigned plans by the state, charged at prices and fees set by the state, primarily not for profit purposes, and implements the financial regime prescribed in Circular No. 06 TC/TCDN dated February 24, 1997 of the Ministry of Finance: "Guidelines on financial management for state-owned enterprises engaged in public services" and the specific provisions in this Circular.

In addition to its public service tasks, the Civil Aviation Control Center may organize additional business activities commensurate with the capabilities of the enterprise and market demand under the following conditions:

With written approval from the Civil Aviation Administration of Vietnam.

Without affecting the fulfillment of public service tasks assigned by

the state.

Supplementing business activities in accordance with current regulations.

Maintaining separate accounting for additional business activities.

Fulfill tax obligations for additional business activities in accordance with the law.

B. SPECIFIC PROVISIONS

I. FINANCIAL RESULTS AND DISPOSITION OF FINANCIAL RESULTS

1. Financial income and expenditure

1.1. Revenue of TTQLBDDVN: Includes revenue from public service activities and revenue from production and business operations (if any) and other activities.

a. Revenue from public service activities includes:

Income from air traffic control services for aircraft passing through Vietnam's airspace.

Income from air traffic control services for flights arriving at and departing from Vietnamese airports.

Income from state subsidies and price supports (if any) and other revenues.

b. Revenue from production and business operations and other activities shall be applied as prescribed for state-owned enterprises engaged in business operations.

1.2. Expenses of TTQLBDDVN: Include expenses for public service activities, expenses for business operations, and other activities.

a. Contents of expenses for public service activities include:

Wages and allowances.

Social insurance, health insurance, trade union funds.

Depreciation of fixed assets.

Purchase and supply of labor tools.

Costs for regular maintenance and repair of fixed assets.

Costs for major repairs of fixed assets.

Costs for raw materials, fuel, and power.

Training and application costs for specialized science and technology.

Flight calibration equipment costs.

Satellite communication channel rental costs.

Costs for supplementary air traffic control services at transit airports. - Management costs to ensure operational activities (including: Industry-related costs, office supplies, labor protection, travel expenses, conference costs, reception and protocol costs, hospitality costs, bank fees, insurance for means of transportation and property, meal costs for air traffic controllers, and other costs...)

Other related costs.

b. Contents of expenses for business operations shall be implemented as prescribed for state-owned enterprises engaged in production and business operations.

1.3. Financial income and expenditure management of TTQLBDDVN.

TTQLBDDVN may use revenue to offset expenses, where: revenue from public service activities is used to offset expenses for public service activities, revenue from business operations and other activities is used to offset the total cost of products and services consumed, other costs, taxes, and state payments as prescribed by law (excluding corporate income tax). Business operations of TTQLBDDVN must maintain separate accounting books, record, and track the financial results of business operations separately, and cannot use the financial results of public service activities to cover losses (if any) in business operations.

Revenue receipts are issued by the Ministry of Finance (General Department of Taxation); in cases where special revenue receipts are used, TTQLBDDVN must register with the General Department of Taxation to implement them.

2. Disposition of financial results

The Civil Aviation Control Center of Vietnam is a state-owned enterprise engaged in public services, and the financial results of public service activities are accounted for based on the difference between income and expenditure.

2.1. The difference between income and expenditure for public service activities is handled as follows:

Setting aside funds

Setting aside the development investment fund at 25% of the difference.

Setting aside the financial reserve fund at 5% of the difference, but the maximum balance of the reserve fund shall not exceed 25% of the charter capital of the enterprise.

Setting aside up to two reward and welfare funds totaling no more than three months' salary for the implementation year if the annual budget revenue exceeds the previous year, or two months' salary if the annual budget revenue is lower than the previous year.

b. The remaining amount is paid into the state budget.

2.2. Distribution of profits from the results of production and business operations is carried out as prescribed for state-owned enterprises engaged in business operations, but the total amount allocated to each fund shall not exceed the limit set for production and business enterprises.

II. FINANCIAL PLAN

1. Annually, the Civil Aviation Control Center of Vietnam is responsible for preparing production plans and financial income and expenditure plans for public service activities in accordance with state regulations, reporting to the Civil Aviation Administration of Vietnam and the Ministry of Finance.

2. After receiving written agreement from the Ministry of Finance on the annual financial income and expenditure plan of TTQLBDDVN, the Civil Aviation Administration of Vietnam will approve and assign the annual plan to TTQLBDDVN while organizing and directing the unit to implement the financial income and expenditure plan and ensuring the state budget revenue plan.

III. ACCOUNTING AUDIT, FINANCIAL REPORTING, AND FINANCIAL TRANSPARENCY

1. Preparing financial reports

The Civil Aviation Authority of Vietnam shall be responsible for preparing financial statements in accordance with current regulations. The General Director of the Civil Aviation Authority of Vietnam shall bear responsibility before the state and the law for the accuracy and truthfulness of the financial statements.

Quarterly and annual financial statements must be submitted to the Civil Aviation Administration of Vietnam, the Ministry of Finance, tax authorities, and statistical agencies in accordance with the content and format prescribed in Decision No. 1141 TC/QĐ-CĐKT dated November 1, 1995, issued by the Minister of Finance on accounting regulations for state-owned enterprises.

2. Audit of Financial Statements

Quarterly and annually, the Civil Aviation Authority of Vietnam must conduct self-audits of its accounting and financial statements in accordance with Decision No. 832 TC/QĐ-CĐKT dated October 28, 1997, issued by the Minister of Finance, accompanying internal audit regulations.

The Civil Aviation Administration of Vietnam shall cooperate with the Ministry of Finance (the agency managing state capital and assets in enterprises) to conduct audits and organize the approval of the Civil Aviation Authority of Vietnam's annual financial statements.

Financial agencies have the duty to audit compliance with financial and accounting systems, budget discipline, and the accuracy and truthfulness of financial statements. Any violations of accounting systems, reserve fund establishment and usage regulations will be subject to administrative and economic penalties as prescribed by law.

3. Public Disclosure of Financial Statements

Based on the annual financial report approved by the competent authority, the Civil Aviation Authority of Vietnam shall publicly disclose certain financial indicators at the workers' and staff congress of the enterprise.

The content of the disclosed financial indicators shall follow the model prescribed in Circular No. 06 TC/TCDN dated February 24, 1997, issued by the Ministry of Finance.

C. IMPLEMENTATION PROVISIONS

In addition to the provisions of this Circular, the Civil Aviation Authority of Vietnam must also comply with other legal regulations applicable to state-owned enterprises.

This Circular shall take effect from 1998. All previous regulations concerning the financial management of the Civil Aviation Authority of Vietnam that conflict with this Circular shall cease to be enforceable.

During implementation, if any issues arise, the Civil Aviation Management Center of Vietnam shall promptly report them to the Ministry of Finance for study and appropriate supplementation./.