Joint Circular No. 40-TT/LBTLĐL/TC on the delegation of management of financial resources for hydrological activities to localities.

JOINT CIRCULAR

Regarding the delegation of management of water resources expenses to localities

Currently, water level stations scattered throughout the northern region serve to survey, measure, calculate, and study water forces, rainfall amounts, etc., to support the protection and development of the national agricultural foundation. Therefore, local authorities at all levels have the responsibility to manage and oversee the activities of these stations...

However, up until now, water resources expenses have been covered by the central budget and directly managed by the Ministry of Water Resources and Electricity, thus localities lack the conditions to monitor expenditures and assist in various aspects of the operations of local water level stations.

From the perspective of the central government, due to the dispersed nature of the stations, it has not been possible to reach out sufficiently.

As a result, not only is there difficulty in promptly preventing unreasonable or unnecessary expenditures and wasteful practices, but also timely measures to enhance service work for agriculture are not implemented quickly enough.

To address this situation, the Ministry of Water Resources and Electricity is studying the possibility of delegating full management authority to localities for water level stations.

In the meantime, the Ministry of Water Resources and Electricity and the Ministry of Finance have decided that starting from the second quarter of 1962, they will delegate the management of water resources expenses (common stations) to the People's Committees of provinces, municipalities, and regions according to the following procedures:

I. ESTABLISHING AND REVIEWING ANNUAL AND QUARTERLY BUDGETS AND FINAL ACCOUNTS

1. Budget:

1. Annually: By the end of September each year, the Departments and Offices of Water Resources base their plans for surveying and measuring activities and accompanying budgets divided by quarters on the direction and policy of the State regarding water resources work, economic and technical indicators, and productivity standards. These plans and budgets must be reviewed and submitted to the local People's Committee no later than October 15th, along with necessary comments and suggestions. One copy will be sent to the financial department at the same level for monitoring.

The Ministry of Water Resources and Electricity is responsible for reviewing and consolidating the annual budget for water resources expenses into the Ministry's overall budget for submission to the Government for approval. After the budget is approved, the Ministry of Water Resources and Electricity will send a distribution plan for water resources expenses to each locality, divided by quarters, to the Ministry of Finance and the Bank, while simultaneously informing each locality of the approved indicators as a basis for implementation (one copy for the People's Committee, one for the Office of Water Resources, and one for the Office of Finance).

2. Quarterly: Based on the annual plans and budgets already approved as mentioned above and the actual situation in the locality, the Departments and Offices of Water Resources prepare quarterly plans and budgets divided by months for submission to the local People's Committee for review and submission to the Ministry of Water Resources and Electricity 20 days before the start of each quarter. After review, the Ministry of Water Resources and Electricity compiles a summary of the quarterly plan to send to the Ministry of Finance for allocation of quarterly limits. On this basis, the Ministry of Water Resources and Electricity distributes monthly limits to each locality and sends a copy for monitoring to the Ministry of Finance and another copy for transferring the allocation limit to the State Bank.

3. Distribution: The quarterly budget approved by the Ministry of Water Resources and Electricity, divided by months, constitutes the limit distributed and handed over to the local People's Committee (local finance departments) for management. Whenever expenditure is required, the Departments and Offices of Water Resources must follow the proper procedures to request funds from the local financial department.

Except in special cases decided by the local People's Committee, it is strictly prohibited to pre-fund an entire quarter or more than one month ahead for the stations. For unforeseen expenditures not included in the planned budget, approval from the local People's Committee and within the scope of the quarterly limit set by the Ministry of Water Resources and the Office of Finance is required. If the expenditure exceeds the quarterly budget, a report must be made to the Ministry of Water Resources for adjustment before spending can occur.

II. FINAL ACCOUNTS AND REPORTS ON FINAL ACCOUNTS

Up until now, grassroots units have not actively complied with the reporting system for final accounts. From now on, efforts must be made to overcome difficulties to ensure financial discipline. The Departments and Offices of Water Resources need to plan assistance and supervision to improve performance.

Monthly and quarterly final accounts of the Departments and Offices of Water Resources will be reviewed and kept by the local People's Committee, with only one copy of the reviewed report sent to the Ministry of Water Resources and Electricity. The Ministry of Water Resources and Electricity will consolidate the total water resources expenses and submit monthly, quarterly, and annual reports to the Ministry of Finance.

Reporting time:

- Quick reports must be sent to the Ministry of Water Resources and Electricity before the 22nd of each month.

- Monthly final account reports must be submitted before the 15th of the following month.

- Final account reports for March, June, September, and December will be included in the quarterly final account reports and sent to the Ministry before the 20th of the following month.

- Annual final account reports must be sent to the Ministry 40 days after the end of the year.

Inventory:

Currently, water level stations are provided with fixed assets, tools, machinery, etc., but the central government does not have a clear understanding of the quality, quantity, and preservation status. It is requested that the Departments and Offices of Water Resources conduct an immediate inventory and submit a report to the Ministry by the end of the second quarter of 1962. The inventory report must detail the name of each type, quantity, serial number (if applicable), supplying agency, original cost, current value (remaining percentage), and preservation status. In the future, the Departments and Offices of Water Resources will be responsible for supervising and assisting in regular inventories according to current regulations, submitting reports to the Joint Ministries, and inspecting usage and preservation at the grassroots level.

III. LIMITATIONS AND RESPONSIBILITIES OF THE LOCAL PEOPLE'S COMMITTEES AND LOCAL FINANCIAL DEPARTMENTS DELEGATED TO MANAGE WATER RESOURCES EXPENSES

Local People's Committees are responsible to the Joint Ministries for implementing water resources work and the approved annual budgets for each locality. The People's Committee has the right;

- Supervise the implementation of work plans by organizations.

- Control all expenditures of Departments, Bureaus, and hydrological stations.

- Suspend works outside the plan or unnecessary to conserve human and material resources for the State.

- Adjust funds between months within the approved quarterly limit.

In cases where it is necessary to exceed the quarterly limit, supplementary estimates must be submitted as provided in the allocation section.

The Finance Departments have the duty to assist the Administrative Committee:

- Examine quarterly and annual budgets and final accounts of Water Resources Departments and Bureaus before submitting them to the Ministry for approval.

- Utilize monthly allocations to continuously monitor the use of funds.

- Monitor compliance with accounting and financial regulations, identify deficiencies or violations of the State's plans, and propose corrective measures or conduct inspections when necessary.

Any disagreements between Water Resources and Finance agencies shall be resolved by the Administrative Committee; if deemed unsatisfactory, relevant agencies shall report directly to their respective Ministries. Such reports must be sent through the local Administrative Committee to the Ministries with comments from the Administrative Committee.

Require local Administrative Committees and relevant Departments and Bureaus to actively comply with the above points to strengthen financial management while ensuring the completion and overfulfillment of the State's plans.

During implementation, if any additional provisions or clarifications are needed, localities should reflect these to the Joint Ministry for further study and supplementation.

This Circular takes effect immediately upon receipt. Upon receiving this Circular, local Administrative Committees need to grasp the situation from the beginning of the year to monitor and direct, and Water Resources Departments and Bureaus need to promptly undertake the following specific tasks:

1. Prepare the second quarter work plan and budget for review by the Administrative Committee and submission to the Ministry of Water Resources and Electric Power.

2. Prepare the first quarter settlement statement for review and approval by the Administrative Committee and submit the first quarter settlement report to the Ministry of Water Resources and Electric Power immediately.

3. Prepare the April settlement statement for review and approval by the Administrative Committee and submit the April settlement report, which has been reviewed by the Administrative Committee, to the Ministry of Water Resources and Electric Power.

This Circular, issued by the Joint Ministry of Water Resources and Electric Power - Finance, aims to assign responsibilities to Water Resources agencies and local Finance agencies to participate in directing the economic and financial affairs of hydrological service units currently managed by the central government.

Therefore, Water Resources agencies and local Finance agencies, as well as central hydrological service units in localities, need to engage in discussions and consultations to properly implement this Joint Ministry Circular, particularly striving to enhance socialist cooperative relations to facilitate the work.

Due to the assigned responsibility, central hydrological units have the obligation to provide complete periodic reports, settlement statements, and related documents to Water Resources agencies and local Finance agencies. Water Resources Departments and Bureaus, in planning, reviewing, and approving budgets and settlement statements for hydrological units, must seek assistance and input from Finance agencies, which have the duty to provide complete plans, periodic settlement reports, and related documents to Finance agencies at the same level to fulfill their duties.