JOINT CIRCULAR No. 38/TC-TCCBCP GUIDING THE TASKS OF FINANCIAL MANAGEMENT, BUDGET AND ORGANIZATIONAL STRUCTURE OF LOCAL FINANCIAL MANAGEMENT AUTHORITIES AT ALL LEVELS

JOINT CIRCULAR

Guidelines on financial management, budget, and organizational structure of financial management agencies under local authorities at all levels
Guidelines on the tasks of financial management, budget, and organizational structure of financial management agencies under local authorities at all levels

Pursuant to the Government Organization Law dated September 30, 1992; the Law on Organization of 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 national regulations, the Ministry of Finance and the Government's Civil Service Board issue guidelines on the tasks of financial management, budget, and organizational structure of state financial management agencies directly subordinate to People's Committees at all levels as follows:

A. DEPARTMENT OF FINANCE AND PRICES OF PROVINCES AND MUNICIPALITIES 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 collectively as provinces), 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's 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 agencies under the province and lower-level financial agencies in implementing laws, policies, systems, and national regulations concerning finance, budget, accounting, and auditing within their jurisdiction.

2. Develop regulatory documents on fee, tax, surcharge collection, borrowing and repayment, and contributions from individuals and organizations within the authority of the locality, submit them to competent authorities for consideration and issuance; guide and organize implementation according to the law.

3. Guide state agencies, public institutions under the province, and lower-level financial agencies in preparing annual state budget estimates according to government regulations and the Ministry of Finance's directives; review and consolidate to prepare the provincial budget estimate, supplementary funding for district budgets, and regulations on supplementary funding for commune budgets; establish adjusted provincial budget estimates when necessary, submit them to the PC of the province for consideration and the Provincial People's Council for decision; determine the proportion of revenue distribution to lower-level budgets for the province's PC to decide; propose necessary measures to complete budget revenue and expenditure tasks, practice thrift, and combat corruption and waste for competent authorities to decide.

4. Prepare the provincial budget allocation plan, submit it to the PC of the province for consideration and the Provincial People's Council for decision; manage the provincial budget as decided. Participate with the Department of Planning and Investment in investment construction plans and capital allocation for basic construction projects for the PC of the province to decide. Coordinate with revenue collection agencies in managing tax, fee, and other revenue collection activities within the province; coordinate with the National Treasury to ensure timely, full, and standard disbursements to budget users.

5. Manage state-owned assets in the administrative and public service sectors in the locality according to government regulations and the Ministry of Finance's directives.

6. Examine and audit financial aspects of local budget-funded investment projects and local loan projects; assist the PC of the province in auditing the use of funds and implementing loan repayment plans; manage and audit the use of local aid funds and assets.

7. Manage and utilize the provincial financial reserve fund according to the law and decisions of the PC of the province.

8. Manage central government delegated funds.

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

10. Guide lower-level financial agencies in consolidating data on national budget revenue and expenditure within their jurisdiction and completing their own budget settlements; compile the provincial annual national budget settlement report for competent authorities to approve according to regulations.

11. Report on finance and budget as prescribed.

12. Administer lottery operations, financial business, services, and consulting activities, insurance, accounting, and auditing in the locality according to the law. Participate with state asset management agencies in enterprises in managing enterprise finances according to the division of responsibilities.

13. Inspect and audit financial management and budgeting of lower-level governments and administrative, public service, and enterprise units directly related to provincial budget responsibilities and the implementation of state financial management systems and local state asset management according to regulations. 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 Finance Division

Asset Management Division

County and Commune Budget Management Division

Price Board

Financial and Price Inspection

Department Office (Organizational Affairs, Administrative Management, Accounting and Finance)

Based on the general organizational model and depending on the scale of financial and budgetary management tasks and price control in the locality, the Director of the Department of Finance and Prices coordinates with the Head of the Provincial Civil Service Board to submit to the Chairman of the PC of the province for decision, without necessarily organizing fully according to the general model.

3. STAFFING

The staffing of the Department of Finance and Prices is part of the state administrative staff, determined based on ensuring the performance of financial management, budget, and price control tasks in the locality. The People's Committee of the province determines the staffing of the Department of Finance and Prices based on specific local conditions and the allocated staffing of the province.

B. DISTRICT, COUNTY, CITY, AND MUNICIPALITY FINANCE DEPARTMENTS

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分级管理的规定。区财政和价格部门受省财政和物价局的专业指导。

In areas where there is no Department of Finance and Prices, the Planning and Finance Department or the Department of Finance and Commerce shall perform financial and budget management tasks as stipulated in this Circular.

1. DUTIES OF FINANCIAL AND BUDGET MANAGEMENT OF THE DISTRICT FINANCE DEPARTMENT

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 estimate to build annual state budget estimates; build the district's state budget estimate according to the guidance of the Provincial Department of Finance and Prices, submit for consideration by the People's Committee of the district to be submitted to the People's Council of the district for decision;

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

4. Inspect the financial and 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 State Treasury to timely and fully implement disbursements 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 district-level budget settlement and the overall budget settlement on the territory according to regulations;

6. Report on finance and budget as prescribed;

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 Finance Department 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 efficient structure.

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

C. VILLAGE FINANCE BOARD, TOWN, WARD

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

Duties of financial and budget management of the Village Finance Board:

1. Build the village's state budget estimate according to the guidance of higher-level financial agencies, submit for consideration by the Village People's Committee to be submitted to the Village People's Council for decision;

2. Implement revenue and expenditure management and budget settlement of the village according to the approved estimates; manage public assets in the village according to regulations. 3. Assist the Village People's Committee in tapping all revenue sources on the territory, ensuring healthy and compliant financial and budget activities of the village with state regulations;

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

5. Report on finance and budget as prescribed.

The Village Finance Board consists of a Director concurrently serving as a member of the Village People's Committee, a dedicated Accountant, and a dedicated Cashier or concurrently serving.

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

Professional staff members (Accountant, Cashier) of the Village Finance Board enjoy benefits and other entitlements as prescribed by the Government in Decree No. 50/CP dated July 26, 1995, and Joint Circular No. 97/TTLB-TC dated August 16, 1995, issued by the Government Cadre Organization Board and the Ministry of Finance regarding living allowances for village, town, and ward cadres. The above provisions concerning the organization of the Village Finance Board replace the provisions on the organization of Village Finance Boards stipulated 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 duties and organizational structures of financial management agencies at various local government levels stipulated in Joint Circular No. 37/TTLB dated August 5, 1992, issued by the Ministry of Finance - Government Cadre Organization Board - National Price Control Commission, and replaces Circular No. 03/TC-TC-TCCB dated January 4, 1995, issued by the Ministry of Finance.

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

Based on the guidance provided 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 Governments to prepare and submit specific implementation contents and measures for the Chairman of the Provincial People's Committee to decide, while guiding relevant departments and local governments 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./.