JOINT CIRCULAR No. 38/1997/TTLT/BTC-TCCBCP of the Ministry of Finance and the Government Civil Service Organization Board guiding the tasks of financial management, budget, and organizational structure of financial management agencies under local authorities at all levels.

CIRCULAR JOINT CIRCULAR

Joint Circular No. 38/1997/TTLT/BTC-TCCBCP dated June 25, 1997 issued by the Ministry of Finance and the Government Organization and Civil Service Board on guiding tasks related to financial management, budget, and organizational structure of financial management agencies at all levels of local government

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Pursuant to the Law on Government Organization dated September 30, 1992; the Law on People's Councils and People's Committees dated July 5, 1994; the State Budget Law dated March 20, 1996;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

To strengthen state financial management at the local level in accordance with current regulations of the State, the Ministry of Finance and the Government Organization and Civil Service Board hereby guide on the tasks of financial management, budget, and organizational structure of state financial management agencies directly under People's Committees at all levels as follows:

A. DEPARTMENT OF FINANCE AND PRICES OF PROVINCES AND MUNICIPALITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT:

The Department of Finance and Prices is a specialized agency under the People's Committee of provinces and municipalities directly under the Central Government (hereinafter referred to as province), responsible for assisting the People's Committee of the province in implementing state administration over finance and prices within the scope of its duties as prescribed by law.

The Department of Finance and Prices is subject to professional guidance from the Ministry of Finance and the Government Price Board.

1. TASKS OF FINANCIAL MANAGEMENT AND BUDGET OF THE DEPARTMENT OF FINANCE AND PRICES:

1. Assist the People's Committee (PC) of the province in implementing and guiding subordinate agencies and lower-level financial agencies to implement laws, policies, systems, and regulations of the State concerning finance, budget, accounting, and auditing within their jurisdiction.

2. Develop regulatory documents regarding the collection of fees, surcharges, loans, and repayments, and the mobilization of contributions from individuals and organizations within the authority of the locality, submit them to the competent authority for consideration and issuance; provide guidance and organize implementation in accordance with the law.

3. Guide state agencies, public service units under the province, and lower-level financial agencies in preparing annual state budget estimates according to the guidelines of the Government and the Ministry of Finance, review and consolidate to prepare the provincial budget estimate, the amount to supplement the district budget, stipulate the supplementation of the commune budget; prepare adjusted provincial budget estimates when necessary for submission to the PC of the province for consideration and the Provincial People's Council for decision; determine the ratio of revenue distribution for lower-level budgets for submission to the PC of the province for decision; propose necessary measures to complete budget revenue and expenditure tasks, practice thrift, and combat corruption and waste for decision by the competent authority.

4. Prepare the provincial budget allocation plan for submission to the PC of the province for consideration and the Provincial People's Council for decision; manage the provincial budget that has been decided. Participate with the Department of Planning and Investment in the planning of basic construction investment and the allocation of investment capital for basic construction projects for decision by the PC of the province. Coordinate with tax collection agencies in managing tax, fee, and other revenue collection activities within the jurisdiction; coordinate with the National Treasury to ensure timely and adequate disbursement according to regulations and standards for users of the provincial budget.

5. Manage state-owned assets in the administrative and public service sectors in the locality in accordance with the guidelines of the Government and the Ministry of Finance.

6. Examine and audit financial aspects of the establishment of investment projects funded by the provincial budget and local borrowing projects, assist the PC of the province in auditing the use of funds and repayment plans; manage and audit the use of local aid funds and assets.

7. Manage and utilize the provincial financial reserve fund in accordance with the law and decisions of the PC of the province.

8. Manage central delegated funding sources.

9. Audit and approve final accounts of state agencies, administrative units, public service units, and organizations using the provincial budget.

10. Guide lower-level financial agencies in consolidating data on state budget revenue and expenditure within their jurisdiction and implementing their own budget settlement. Consolidate the situation of state budget revenue and expenditure, prepare the annual consolidated state budget settlement report of the locality for approval by the competent authority as prescribed.

11. Report on finance and budget as prescribed.

12. Administer state management over lottery operations, business activities, services, and financial, insurance, accounting, and auditing consulting activities in the locality in accordance with the law. Participate with the agency managing state capital and assets in enterprises in the financial management of enterprises according to the division of responsibilities.

13. Inspect and audit financial and budget management of lower-level governments and administrative, public service, and enterprise units in the locality directly related to their responsibilities and obligations towards the provincial budget and the implementation of state financial management systems and state asset management systems in the locality as prescribed. 14. Uniformly manage planning, training, and utilization of specialized financial and accounting personnel in the locality.

2. ORGANIZATIONAL STRUCTURE:

The general organizational model of the Department of Finance and Prices includes the following units:

- Budget Management Division

- Administrative and Public Service Financial Division

- State Asset Management Division

- District and Commune Budget Management Division

- Price Board

- Financial and Price Inspection

- Department Office (Organizational and Civil Service, Administrative Management, Accounting and Finance)

Based on the general organizational model and depending on the scale and scope of financial and budgetary management and price control in the locality, the Director of the Department of Finance and Prices shall coordinate with the Head of the Provincial Organization and Civil Service Board to submit to the Chairman of the Provincial People's Committee for decision, without necessarily organizing fully according to the general model.

3. STAFFING:

The staffing of the Department of Finance and Prices belongs to the civil service staff quota, determined based on ensuring the performance of financial management, budget, and price control tasks in the locality. The People's Committee of the province shall determine the staffing of the Department of Finance and Prices based on the specific circumstances of the locality and the staffing quota assigned to the province.

B. DISTRICT AND COUNTY FINANCE DEPARTMENTS, CITY DISTRICTS, AND TOWN FINANCE DEPARTMENTS BELONGING TO PROVINCES:

The Department of Finance and Prices at the district level (hereinafter referred to as the district) is a specialized agency under the People's Committee of the district, with the function of assisting the People's Committee of the district in performing financial and budget management tasks on the district's territory according to the State’s classification and management levels. The District Department of Finance and Prices is subject to professional guidance from the Provincial Department of Finance and Prices.

In localities without a Department of Finance and Prices, the Planning and Finance Department, or the Department of Finance and Commerce shall perform financial and budget management tasks in accordance with the provisions of this Circular.

1. THE FINANCIAL AND BUDGET MANAGEMENT TASKS OF THE DISTRICT DEPARTMENT OF FINANCE:

1. Assist the People's Committee of the district in guiding and organizing the implementation of financial and state budget management tasks on the district's territory in accordance with the law;

2. Guide agencies and units under the district's budgetary forecast to build annual state budget forecasts; build the district's state budget forecast according to the guidance of the Provincial Department of Finance and Prices, submit to the People's Committee of the district for consideration and submission to the People's Council of the district for decision;

3. Develop plans for allocating the district's state budget forecast, develop adjusted state budget forecasts when necessary according to regulations, submit for the People's Committee's consideration and the People's Council's decision; ensure management according to the progress and approved budget; guide and inspect the management, operation, and settlement of village-level budgets;

4. Inspect the financial and state budget management of village-level authorities and administrative and public service agencies under the district;

Coordinate with tax collection agencies in managing state budget revenue work on the district's territory in accordance with the law; coordinate with the National Treasury to implement timely and full disbursement according to regulations and standards for budget users at the district level;

5. Aggregate state budget revenue and expenditure on the district's territory; guide and inspect the settlement of village-level budgets; prepare the settlement of the district-level budget and the overall settlement of the budget on the territory according to regulations;

6. Report on finance and the state budget in accordance with regulations;

7. Manage state assets in the administrative and public service sector at the district level in accordance with the Government's regulations and the guidance of the Ministry of Finance;

8. Manage the authorized funding sources from higher levels.

2. ORGANIZATION AND STAFFING:

The District Department of Finance is organized into specialized and professional teams based on specific requirements of financial and budget management tasks on the district's territory, but must ensure a streamlined and effective organizational structure.

The staffing of the District Department of Finance belongs to the administrative staffing of the People's Committee of the district and is determined based on ensuring the performance of financial and budget management tasks and other assigned tasks.

The People's Committee of the district bases the determination of the staffing of the District Department of Finance on the specific situation of the locality and the total number of staff allocated to the district.

C. THE VILLAGE FINANCE BOARD, TOWN, WARD:

To perform village-level financial and budget management tasks, towns, and wards (hereinafter referred to as villages), there is a Village Finance Board under the People's Committee of the village. The Village Finance Board has the task of assisting the People's Committee of the village in implementing financial and budget management according to State regulations and the guidance and direction of higher-level financial agencies.

The financial and budget management tasks of the Village Finance Board:

1. Build the village's state budget forecast according to the guidance of higher-level financial agencies, submit to the People's Committee of the village for consideration and submission to the People's Council of the village for decision;

2. Implement the management of income and expenditure, and the settlement of the village's state budget according to the approved forecast; manage public assets in the village according to regulations;

3. Assist the People's Committee of the village in exploiting all sources of income on the territory, ensuring the healthy functioning of village financial and budget activities and compliance with State regulations;

4. Conduct financial and budget inspections according to the guidance of higher-level financial agencies;

5. Report on finance and the state budget in accordance with regulations.

The Village Finance Board consists of a Director appointed by a member of the People's Committee of the village, a dedicated Accountant, and a dedicated Treasurer or兼任。

The dedicated Accountant of the Village Finance Board must be a specialist trained in financial and accounting expertise; the arrangement and transfer of accounting personnel in the village must be agreed upon by the Head of the District Department of Finance.

The professional staff (Accountant, Treasurer) of the Village Finance Board enjoy benefits and other entitlements as stipulated by the Government in Decree No. 50/CP dated July 26, 1995, and Joint Circular No. 97/TTLB-TC dated August 16, 1995, of the Government Cadre Organization Board and the Ministry of Finance regarding living allowances for village, town, and ward cadres. The above provisions regarding the organization of the Village Finance Board replace the provisions on the organization of the Village Finance Boards specified in Point 7, Part I of Circular No. 14/TC-NSNN dated March 28, 1997, issued by the Ministry of Finance to guide the management of village, town, and ward revenues and expenditures.

This Circular replaces the provisions on the tasks and organizational structures of financial management agencies at various levels of local government as stipulated in Joint Circular No. 37/TTLB dated August 5, 1992, of the Ministry of Finance - Government Cadre Organization Board - State Price Control Commission, and replaces Circular No. 03/TC-TC-TCCB dated January 4, 1995, of the Ministry of Finance.

The tasks and organizational structure of the price management of the Provincial Department of Finance and Prices stipulated in Joint Circular No. 37/TTLB dated August 5, 1992, of the Ministry of Finance - State Price Control Commission - Government Cadre Organization Board remain valid until new guidelines are issued by the Government Cadre Organization Board and the Government Price Control Board.

Based on the guidelines in this Circular, the People's Committees of provinces and centrally-administered cities instruct the Provincial Departments of Finance and Prices and the Organization of Local Administration to prepare and submit specific contents and measures for implementation for approval by the Chairman of the People's Committee of the province, while guiding relevant departments and local administrations at the county and village levels to organize implementation from July 1, 1997. Any issues encountered during implementation should be reported for resolution by the Joint Ministries.