Joint Circular No. 37-TT/LB provides guidance on the sale and settlement of monthly bus tickets for officials, workers, employees going to work and students going to school daily by bus.

JOINT CIRCULAR

GUIDELINES ON THE DISTRIBUTION OF PROFITS FOR STATE-FUNDED AGRICULTURAL PRODUCTION ENTERPRISES ISSUED BY THE MINISTRY OF FINANCE AND AGRICULTURE NO. 37-TT/LB ON DECEMBER 30, 1982

Pursuant to Decision No. 146-HĐBT dated August 25, 1982 of the Council of Ministers supplementing Decision No. 25-CP dated January 21, 1981.
Considering the characteristics of agricultural production.
The Joint Ministry of Finance - Agriculture hereby provides guidelines for the distribution regime of profits for state-owned agricultural enterprises implementing economic accounting as follows.

I. PRINCIPLES FOR BUILDING AND DETERMINING THE RESULTS OF IMPLEMENTING PRODUCTION PLANS USING STATE-PROVIDED MATERIALS AND SELF-SOURCED MATERIALS IN THE AGRICULTURAL SECTOR

1. Land is one of the main raw materials for agricultural production enterprises. Based on this characteristic and to enable these enterprises to conduct production, the State provides certain materials such as fuel, chemical fertilizers, pesticides, machinery and equipment, protein feed, minerals; other materials are assigned to the enterprise to produce and exploit locally such as manure, green manure, fine and coarse feed, pastures, seeds, and animal traction (buffaloes, cows...). All these materials must be considered as State-provided materials for planning product production and accumulation for the State.

2. Enterprises using self-sourced materials for planting and breeding separately must account for production costs and profit or loss separately.

For enterprises that use self-sourced materials in addition to State-provided materials to intensify production and increase crop and livestock yields, where it is difficult to distinguish the production and financial results from each source of materials, in this case, the planning, statistics, and accounting work shall be regulated as follows:

The enterprise shall establish a plan for submitting products and accumulating funds corresponding to the State-provided materials. If there is additional self-sourced material, the products and accumulations created must necessarily be higher than the State's plan. The enterprise may register to exceed the State's plan regarding the number of products and accumulations produced using self-sourced materials. When settling the excess over the plan, it may be due to many subjective efforts (improving technology, strengthening management, self-sourcing materials...), but to simplify accounting work, all these achievements are accounted for as part of the excess over the State's plan.

3. Agricultural production results depend not only on human subjective influence but also on soil fertility. To encourage enterprises to both extract products and reduce costs while effectively implementing intensive cultivation of orchards and livestock herds, ensuring long-term benefits, the State will stabilize the level of product submission and accumulation for 3 to 5 years for enterprises with production responsibilities and relatively stable material supply conditions, but this level must not be lower than the average level achieved in 1980-1981-1982.

Any excess over the stabilized level, regardless of the cause, shall be considered as exceeding the State plan.

II. ACCOUNTING FOR COST PRICE, FACTORY PRICE, AND WHOLESALE PRICE OF AGRICULTURAL PRODUCTS

1. Cost Accounting:

a) For products produced using State-provided materials, the enterprise shall account for cost prices according to the State's guidance price.

b) For products organized for separate production using self-sourced materials, costs must be accounted for individually based on actual purchase prices.

c) For products produced using both State-provided and self-sourced materials:

All types of materials used in production (including self-sourced materials) are accounted for in cost prices according to the State-supplied material price, plus transportation and storage costs (if any) to calculate into the cost price for products within the State's plan.

- Enterprises separately account for the price difference of self-sourced materials (actual purchase price (-) State-supplied material price) and distribute this difference to products produced using self-sourced materials (commonly referred to as products exceeding the plan). Thus, the cost price of products produced using self-sourced materials will equal the cost price of products produced using State-supplied materials plus (or minus) the price difference between the two types of materials.

2. Prescribed Profit:

a) The principle for determining prescribed profit must be sufficient to cover enterprise fund expenses, self-compensation outside cost price, repayment of bank loans, and approximately 15-20% to be paid to the State budget.

In Circular No. 327-VGNN/THBB dated August 27, 1981, the State Price Commission has stipulated the standard profit rate at 125 percent of the total cost price of agricultural products. If, when calculating according to this ratio, the standard profit amount is excessively high or low compared to the requirement above, the enterprise must prepare a recalculation plan and submit it for review and decision by the relevant ministries (if it is a central enterprise) or the Chairman of the People's Committee of the province or centrally-administered city (if it is a local enterprise).

b) For products produced using self-sourced materials, the prescribed profit (in absolute terms) is equal to the prescribed profit of products produced using State-provided materials.

3. Factory Price and Wholesale Price of Agricultural Products:

Up until now, the State has not set enterprise prices or wholesale prices for state-owned agricultural products (except for raw rubber), thus most current agricultural products are temporarily settled at the procurement price specified for collective areas. Recently, the cost of many products has exceeded the aforementioned procurement price, causing many agricultural enterprises to incur losses. Currently, the Ministry of Agriculture, together with the State Price Commission and related sectors, are urgently studying and building enterprise prices and wholesale prices for agricultural products in accordance with Decision No. 95-HĐBT dated September 26, 1981, of the Council of Ministers and the current State pricing management system.

Until new regulations are issued, the Joint Ministries temporarily provide the following guidance:

a) For raw rubber:

The State has established a wholesale price for materials, the Rubber General Department will collaborate with the State Price Commission and the Ministry of Finance to study and build factory prices, determine the state revenue level according to the current system.

b) For other agricultural products:

If the products are still sold at the procurement price for collective areas and there is still revenue submitted to the budget, sufficient to cover the standard profit and extra-costs outside the cost price, they will continue to be sold at this price until new regulations are issued.

If the products sold at the procurement price for collective areas result in losses or lack accumulations, insufficient to cover the standard profit and extra-costs outside the cost price, the enterprise must review and eliminate unreasonable expenses, find ways to reduce product costs.

Based on the recalculated cost price, the enterprise may add the standard profit rate stipulated in point 2, Section II above to establish a temporary enterprise price for approval by the competent authority. The enterprise may use this temporary enterprise price to settle accounts with the recipient until new regulations are issued.

c) For products produced using self-sourced materials (commonly referred to as products exceeding the plan). Since the actual price of self-sourced materials is usually higher than the price of State-supplied materials, the cost price of products produced using self-sourced materials is higher than the cost price of products within the State's plan. To ensure that products made using self-sourced materials have the same absolute standard profit as those within the State's plan, the enterprise price for these products is calculated as the total cost price of products made using self-sourced materials plus the standard profit (i.e., the enterprise price of products within the State's plan plus the price difference between the two types of materials). The enterprise may settle accounts with the recipient at this price.

If the temporary enterprise price is too high, commercial agencies do not buy, and society does not accept (meaning they cannot be sold or sold at a loss), the enterprise must consider changing its production direction. The State budget will not compensate for losses or enterprise funds.

III. DISTRIBUTION OF PROFITS AND ESTABLISHMENT OF ENTERPRISE FUNDS.

1. For the portion of the plan supplied with state-provided materials or within the stable plan level:

If the unit completes the legal targets of the State plan, achieves the stable level of product submission and accumulation, in addition to setting up the production development fund according to the current regulations, it will also set aside profits for the award fund and welfare fund equal to 24% of the total wage fund implemented throughout the year for workers producing products under the State plan supply materials (excluding unreasonable items in the wage fund such as defective products, excess downtime wages beyond permitted levels, and other items contrary to the current State wage policy) with 70% allocated to the award fund and 30% to the welfare fund. After setting aside these funds, the remaining profit shall be submitted to the State budget.

2. For the portion of profit produced using self-sourced materials accounted for by the enterprise or the portion of profit exceeding the State plan, the enterprise may allocate 60% of that profit to supplement the funds in the following ratio:

- Sixty percent for the award fund.

- Twenty percent for the welfare fund.

- Twenty percent for the production development fund.

The remaining profit will be submitted to the state budget.

Subjective factors (such as changes in material prices due to state decisions) must be excluded when reviewing, recognizing, and announcing the completion of the plan.

3. In cases where the enterprise fails to meet three main legal targets: the value of goods output achieved, primary products submitted according to specified quality standards, profit, and tax payments (shortfall in profit realization or failure to meet profit payment targets and tax payments), for each percentage point not met of a main target, 2% of the basic amount allocated to each fund must be deducted.

If the enterprise fails to complete the profit submission plan for production using State-supplied materials without a valid reason, it must make up the shortfall in the planned profit, and only the remainder can be considered as surplus profit from self-sourced materials. If the self-sourced materials are organized into separate production units, cost accounting, and profit and loss calculations, then the enterprise can use the self-sourced profit to cover the shortfall in the State-supplied material profit plan. If the shortfall is covered, when reviewing the completion of the State-supplied material plan, it will be deemed to have completed the profit submission plan.

4. For by-product production:

When selling by-products, the enterprise must pay taxes (or state revenues) according to the current system. Profits from by-product production will be allocated 70% to the funds and distributed as follows:

- 60% for the reward fund.

- Twenty percent for the welfare fund,

- Twenty percent for the production development fund.

The remaining profit will be submitted to the state budget.

5. For units producing export goods by borrowing foreign currency from banks to import key materials:

The unit must comply strictly with State regulations on exports, imports, banking credit, and foreign exchange management. All income and expenditure must be recorded separately and converted into Vietnamese currency at the exchange rate stipulated by the State. The profit obtained from borrowing foreign currency from the bank for production, after repaying the loan and foreign currency interest, fulfilling all tax obligations according to current regulations, may allocate 60% into the funds (no allocation in foreign currency) and distribute according to the following ratio:

- 60% for the reward fund.

- Twenty percent for the welfare fund,

- 20 for the encouragement of production development fund.

The remaining profit will be submitted to the state budget.

6. Penalties for violations of economic and financial management systems and policies:

If during the planning year, the unit violates economic and financial management policies such as product submission regulations, pricing policies, economic contracts, statistical reporting, and tax payments, for each violation within a specific plan (main production plan, auxiliary production plan), the deduction from the award fund and welfare fund will range from 2 to 5% of the amount allocated, depending on the severity of the violation.

7. Control levels for the reward and welfare funds:

If the total of the award fund and welfare fund of the enterprise, which is allocated from different sources (main production, auxiliary production) throughout the year, exceeds six months' average actual wage of production workers, the enterprise may retain 30% of the excess, submit 20% to higher authorities to establish a centralized financial reserve fund, and the remaining 50% shall be submitted to the State budget. The retained portion (30%) shall be distributed among the funds according to the ratio applicable to the surplus plan.

If the enterprise fails to complete parts of the production plans (main production, auxiliary production) resulting in excessive deductions from the award fund and welfare fund, failing to reach an average of 60 dong per person for both funds combined, the State budget will subsidize the difference to reach this average.

This Circular applies to agricultural enterprises in all sectors, including central and local enterprises (state-owned farms, economic stations and camps), and takes effect from January 1, 1983. The profit distribution and fund establishment provisions shall apply from 1982, based on the results of the production and financial plans assigned for 1982.