Joint Circular No. 42/2006/TTLT/BTC-TTCP guides the preparation, management, use, and settlement of funds to ensure the operation of state inspection agencies.

JOINT CIRCULAR

Guidelines for the establishment, management, use, and settlement of funds ensuring the operation of state inspection agencies

Ensuring the activities of state inspection agencies

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 41/2005/NĐ-CP dated March 25, 2005 of the Government detailing and guiding the implementation of certain provisions of the Inspection Law.

The Ministry of Finance and the Government Inspectorate jointly issue guidelines on the establishment, management, use, and settlement of funds ensuring the operation of state inspection agencies in accordance with Article 48 of Decree No. 41/2005/NĐ-CP dated March 25, 2005 of the Government as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope of application:

This Circular guides the establishment, management, use, and settlement of funds ensuring the operation of state inspection agencies, including:

a) State inspection agencies established according to administrative levels:

- The Government Inspectorate;

- Provincial and centrally-administered city inspectors;

- District, town, and centrally-administered city inspectors under provinces;

b) State inspection agencies established within sectoral management agencies:

- Ministry and ministerial-level inspectorates;

- Inspectorates of government agencies with national management functions by sector;

- Department inspectorates.

2. This Circular does not apply to Tax Inspectors and Customs Inspectors. The funds ensuring the operation of Tax Inspectors and Customs Inspectors are allocated from the budget quota of the General Department of Taxation and the General Department of Customs according to Decision No. 107/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister on piloting the allocation of personnel quotas and operating funds for the General Department of Taxation for the period 2005-2007 and Decision No. 109/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister on piloting the allocation of personnel quotas and operating funds for the General Department of Customs for the period 2005-2007.

3. Funds ensuring the operation of state inspection agencies at which level are managed shall be guaranteed by the corresponding budget and supplemented from other sources of funds in accordance with the law.

4. State inspection agencies have the responsibility to use funds for their intended purposes and objects in accordance with current financial expenditure standards, and to report and settle the funds used to the same-level finance agency in accordance with the law.

II. SPECIFIC PROVISIONS

1. Contents of expenditures for the operation of state inspection agencies:

a) Expenditures for individual payments: salaries, wages, allowances, contributions based on salary (social insurance, health insurance, trade union fees), bonuses, collective welfare, and other individual payments as prescribed.

b) Payments for public services, office supplies, information, propaganda, communication, rental expenses, purchase of books and materials for inspection work.

c) Conference and domestic travel expenses, expenses for foreign trips and welcoming foreign delegations to Vietnam, expenses for organizing training and specialized courses.

d) Specialized professional expenses, including:

- Fuel costs and travel expenses for inspection teams.

- Expenses for requesting expert appraisals related to inspection content.

- Expenses for collecting information, documents, and evidence related to inspection content.

- Expenses for serving complaint resolution, anti-corruption work within the scope of management.

- Expenses for propaganda, dissemination, and education on inspection laws, complaint resolution, and anti-corruption.

- Expenses for uniforms, insignia, badges, and signs for inspectors.

- Other expenses directly serving specialized inspection work.

e) Expenses for regular purchases, repairs, and major repairs of fixed assets.

2. Expenditure levels:

The above contents of expenditures serving the operation of state inspection agencies shall be implemented in accordance with the standards, norms, and financial expenditure regulations issued by the competent authority, specifically as follows:

a) Conference and travel expenses shall be carried out in accordance with the regulations of the Minister, head of a ministry-level agency, agency under the Government, provincial People's Committee, and centrally-administered city People's Committee based on the detailed provisions of Circular No. 118/2004/TT-BTC dated December 8, 2004 of the Ministry of Finance on travel expenses and conference regulations for administrative agencies and public service units nationwide.

b) Expenses for paying telephone bills for official use at home and mobile phones shall be carried out in accordance with Decision No. 78/2001/QĐ-TTg dated May 16, 2001, Decision No. 179/2002/QĐ-TTg dated December 16, 2002, Decision No. 168/2005/QĐ-TTg dated July 7, 2005 of the Prime Minister on standards and norms for using telephones for official use at home and mobile phones in administrative agencies, public service units, political-social organizations, and Circular No. 29/2003/TT-BTC dated April 14, 2003 of the Ministry of Finance guiding the implementation of Decision No. 78/2001/QĐ-TTg and Decision No. 179/2002/QĐ-TTg of the Prime Minister.

c) Reward expenses shall be carried out in accordance with Decree No. 121/2005/NĐ-CP dated September 30, 2005 of the Government detailing and guiding the implementation of certain provisions of the Law on Competition and Rewards and the Law Amending and Supplementing Certain Provisions of the Law on Competition and Rewards and the circulars guiding Decree No. 121/2005/NĐ-CP of the Ministry of Finance.

d) Appraisal request expenses shall be carried out in accordance with the expense levels prescribed by the competent authority.

e) Other expenses shall be carried out in accordance with the internal expenditure regulations of the unit. In cases where the unit has not yet established internal expenditure regulations, it shall be carried out in accordance with current regulations.

3. Sources of funds ensuring the operation of state inspection agencies:

a) State budget funds;

b) Supplementary sources from funds illegally embezzled or misappropriated through inspection work that have been recovered and deposited into the state budget.

c) Revenue from administrative penalties as prescribed (if applicable)

d) Other sources of funds as prescribed by law (if applicable).

4. Principles and levels of supplementary funding for the operation of state inspection agencies from the results of inspections recovered and deposited into the state budget:

- When there is a decision by the competent authority to handle funds illegally embezzled or misappropriated through inspection work discovered and deposited into the state budget, the state inspection agency shall transfer from the temporary holding account to the state budget according to the amount specified in the decision of the competent authority.

- The State Inspectorate is entitled to supplement its operational budget with an amount equal to 30% of the total recovered funds from acts of embezzlement and unlawful appropriation discovered through inspection work (excluding arrears in state budget payments and overdue debts...), which have been actually remitted to the state budget according to the competent authority's decision and after the appeal period has expired, but not exceeding 5,000 billion VND annually for the Government Inspectorate, 1,000 billion VND annually for central ministry inspectorates, 500 billion VND annually for provincial inspectorates, and 200 billion VND annually for municipal and district inspectorates under provinces.

5. Budget preparation, execution, and settlement:

The establishment, management, utilization, and settlement of the budget to ensure the operation of state inspectorates from the state budget shall be carried out in accordance with the provisions of the State Budget Law and guiding documents for the implementation of the State Budget Law. This Circular provides specific guidance on the sources of supplementary funding from funds recovered from acts of embezzlement and unlawful appropriation discovered through inspection work that have been actually remitted to the state budget to supplement the operational expenses of state inspectorates as follows:

a) Budget preparation and allocation:

- Annually, based on the actual recovery amounts remitted to the state budget from acts of embezzlement and unlawful appropriation discovered through inspection work in the previous year (calculated at the time of annual budget preparation); Based on the deduction rate and principles stipulated in Clause 4, Section II of this Circular, the inspectorate or the supervising agency of the inspectorate (in cases where the inspectorate is not a state budget unit - hereinafter referred to as the supervising agency) shall prepare a supplementary budget expenditure plan for inspection business activities corresponding to the permissible deduction amount from the actual recovery remitted to the state budget, and consolidate it with the annual budget expenditure plan of the agency to submit to the competent authority for decision in accordance with the State Budget Law and guiding documents.

- The budget for inspection business activity expenses (supplemented from part of the recovery results through inspection work) shall be allocated together with the annual budget revenue and expenditure plans of state inspectorates (or supervising agencies).

b) The allocation and settlement of the budget for retained funds to cover inspection business activities from part of the recovery results through inspection work shall be implemented in accordance with current regulations.

III. IMPLEMENTATION

This Circular takes effect fifteen days from the date of publication in the Official Gazette.

Any difficulties encountered during implementation should be reported to the Ministry of Finance and the Government Inspectorate for study and appropriate amendments./.