Circular No. 50/2003/TT-BTC guides units with revenue to establish internal expenditure regulations according to the provisions of Government Decree No. 10/2002/NĐ-CP dated January 16, 2002.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 50/2003/TT-BTC ON MAY 22, 2003 GUIDING ORGANIZATIONS WITH REVENUE TO ESTABLISH INTERNAL EXPENSE REGULATIONS IN ACCORDANCE WITH THE DECREE
NUMBER 10/2002/NĐ-CP ON JANUARY 16, 2002 OF THE GOVERNMENT

On the basis of Decree number 10/2002/NĐ-CP dated January 16, 2002 of the Government on financial regulations applicable to organizations with revenue.

The Ministry of Finance guides organizations with revenue to establish internal expense regulations as follows:

I-OBJECTS:

The objects subject to this Circular are organizations with revenue that have been granted financial autonomy by competent authorities in accordance with Decree number 10/2002/NĐ-CP dated January 16, 2002 of the Government and guiding documents for Decree number 10/2002/NĐ-CP.

II-PRINCIPLES FOR ESTABLISHING INTERNAL EXPENSE REGULATIONS:

1. Internal expense regulations include provisions on systems, standards, and quotas for expenses uniformly applied within the organization, ensuring that organizations with revenue complete assigned political tasks, conduct regular activities consistent with their specific operations, utilize funds efficiently, and enhance management work.

2. For items within the scope of establishing internal expense regulations which already have systems, standards, and quotas established by competent authorities, the Head of the organization may stipulate higher or lower expenditure levels than those prescribed by the State (except for certain standards, quotas, and expenditure items specified in Part IV of this Circular). For necessary expenditures serving organizational activities within the scope of establishing internal expense regulations but not yet regulated by the State, the Head of the organization may establish expenditure levels for each task and activity within the organization's financial resources.

3. Organizations with revenue shall not use organizational funds to purchase equipment, supplies, or assets for personal residences or lend them to individuals in any form (except for the provision of official telephones at personal residences as specified in Point 4, Section III below).

4. Internal expense regulations must be widely discussed, democratically, and publicly within organizations with revenue, with participation from the organization's trade union. Internal expense regulations of organizations with revenue shall be submitted to superior management agencies for reporting and to the State Treasury where the organization maintains its transaction account as a basis for controlling expenditures. III-RANGE AND CONTENT FOR ESTABLISHING INTERNAL EXPENSE REGULATIONS:

1. Salaries, wages, and special allowances (if any):
In the regulation, it is necessary to determine: The total salary fund of the organization implemented according to Circular number 25/2002/TT-BTC dated March 21, 2002 of the Ministry of Finance "Guiding the Implementation of Decree number 10/2002/NĐ-CP dated January 16, 2002 of the Government on Financial Regulations Applicable to Organizations with Revenue" and ensuring the following principles:

- Adjustment coefficient to increase the minimum wage to establish the organization's salary fund (based on revenue and the ability to save regular expenses of the organization), maximum not exceeding 2.5 times the national minimum wage set by the State for organizations fully self-financing regular operational costs; not exceeding twice the national minimum wage set by the State for organizations partially self-financing regular operational costs.

- Salary scheme: First, ensure the minimum wage and allowances prescribed by the State for personnel within the establishment and labor contracts lasting one year or more; then distribute according to the adjustment coefficient for each employee. The adjustment coefficient for each employee is based on the principle that those with high work efficiency and significant contributions to revenue generation and cost savings receive more benefits.

- For scientific research organizations not allocated staffing and salary funds from research funding sources, the cost of wages can be calculated based on the approved staffing level into the cost of implementing research projects and scientific services provided by the organization.

- For personnel under one-year labor contracts,

the organization implements according to the signed contract between the organization and the employee.

- In cases where the salary fund of organizations with revenue exceeds the product unit price set by the State as stipulated in Article 11 of Decree number 10/2002/NĐ-CP, the entity performs according to the contract signed between the entity and the employee.

- In the case where the wage fund of state-owned units with revenue is implemented based on the unit price for products ordered by the State and exceeds the wage fund calculated at the maximum level prescribed in Article 11 of Decree No. 10/2002/NĐ-CP, The excess payroll fund shall be transferred to the income stability reserve fund of the unit to ensure income for workers in cases where revenue decreases.

- The unit may choose to pay wages based on time or on a lump-sum basis.

- Special allowances for specific industries shall be implemented according to current regulations.

2. Domestic travel expenses:

The internal expenditure regulation of the unit may set higher or lower spending limits than those prescribed by the State regarding domestic travel expenses for officials and staff members on business trips within the financial resources of the unit, including the following contents:

- Travel allowance

- Rent for accommodation at the destination (which can be allocated to officials on business trips)

- Standards for transportation means used by officials for business trips

The documents for reimbursement of domestic travel expenses for officials and staff members on business trips include:

- A travel permit signed off by the head of the agency sending the official on a business trip and confirmed by the agency at the destination

- Train, bus, bridge, ferry tickets, and baggage fees (if applicable)

- Receipts for accommodation rental at the destination. For units that allocate accommodation rental costs to officials and staff members, there is no need to attach receipts for accommodation rental at the destination.

3. Conference expenditures:

Based on current regulations on conference expenditures, the unit shall establish a conference expenditure regulation suitable for the nature of the conference and the financial capacity of the unit. The level of expenditure may be higher or lower than the State's prescribed levels.

4. Expenses for using official telephones at home and mobile phones:

- Regarding the provision of official telephones at home and mobile phones: The standards for providing telephones and the costs for purchasing telephone equipment, installation, and network connection shall be carried out in accordance with Decision No. 78/2001/QĐ-TTg dated May 16, 2001, issued by the Prime Minister on the issuance of regulations on standards and quotas for the use of official telephones at home and mobile phones for leaders in administrative agencies, public institutions, political organizations, and political-social organizations, and Decision No. 179/2002/QĐ-TTg dated December 16, 2002, issued by the Prime Minister on amending and supplementing the regulations on standards and quotas for the use of official telephones at home and mobile phones for leaders in administrative agencies, public institutions, political organizations, and political-social organizations. Specifically, the payment for telephone usage fees, the unit may establish a higher or lower payment level for telephone usage fees compared to the provisions in Decision No. 179/2002/QĐ-TTg dated December 16, 2002, issued by the Prime Minister, but the maximum payment for telephone usage fees shall not exceed 200,000 VND per phone per month for fixed-line telephones at home and 400,000 VND per phone per month for mobile phones.

For cases where the standard for providing fixed-line telephones at home and mobile phones does not meet the above regulations, but it is deemed necessary in practice to provide them to serve work purposes, the head of the unit has the authority to expand the scope of individuals eligible for payment to cover telephone usage fees appropriately (except for the cost of purchasing the phone, installation, and network connection which must be paid by the individual themselves). The maximum payment for telephone usage fees shall not exceed 200,000 VND per phone per month for fixed-line telephones at home and 400,000 VND per phone per month for mobile phones.

5. Provision, management, and use of telecommunications devices and fax machines at the unit:

Units shall equip devices according to their needs and financial capabilities and establish effective and economical management and use regulations for these assets.

The unit may establish monthly or quarterly allocation levels for telephone usage for each department.

For newly established departments, the head of the unit shall base the allocation levels on those of corresponding departments to determine appropriate allocation levels. 6. On the provision and management of lighting equipment: Regulations should clearly stipulate the provision of electrical equipment in the office and measures to save electricity, avoiding its use for personal needs.

7. On the use of office supplies:

The unit may establish allocation levels for office supplies for each department within the unit. Regulations on printing and photocopying common documents of the office.

8. Payment of regular business expenses:

Regular business expenses in each field have their own characteristics (regular business expenses in the education sector include textbook writing costs, internship fees, fees for hiring experts and lecturers both domestically and internationally, overtime teaching fees for teachers, teacher training and development costs; costs for organizing admissions, graduation exams...; regular business expenses in the health sector include medical examination and treatment costs, disease prevention costs, clothing and bedding for patients, labor protection uniforms for workers...), therefore, depending on the type of activity, public service units with revenue shall establish expenditure regulations on specialized business activities higher or lower than the State's prescribed levels as appropriate.

9. Production and service supply activities:

Public service units with revenue shall establish a regulation on production and service supply cost allocation for subordinate units, specifying:

- Service management costs: carried out according to the internal expenditure regulation of the unit.

- Management and use regulations for assets and tools serving production and service activities; use of cars, machinery, and equipment for combined production and service activities, among which the depreciation rate of fixed assets used in production and services shall be implemented according to Decision No. 166/1999/QĐ-BTC dated December 30, 1999, of the Minister of Finance. When formulating production and service supply plans, the unit shall determine the factor of fixed asset depreciation in the service price to ensure the principle of covering costs and accumulating funds.

- Regulations on the ratio of contributions to the unit for general management costs.

- Management and usage regulations for assets and tools serving production and service activities; usage of cars, machinery and equipment put into operation in combined production and service labor activities... Among these, the depreciation rate of fixed assets used in production and services shall be carried out in accordance with the provisions of Decision No. 166/1999/QĐ-BTC dated December 30, 1999 of the Minister of Finance. When developing a production and service supply plan, the entity must determine the depreciation factor of fixed assets in the service price to ensure the principle of covering costs and accumulating funds.

Specifies the ratio to be set aside for the entity to cover general management expenses of the entity.

- The allocation ratio for services: In this context, the allocation ratio for subordinate units under the regulations must specify the expenditure levels implemented according to the internal expenditure regulations of the unit and have complete accounting vouchers as prescribed by law.

10. Establishment and use of Funds:

Based on the provisions of Article 17 and Article 18 of Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government, the unit shall establish regulations on the amount to be allocated for each fund; regulations on the use of each Fund for the unit.

11. Necessary expenditure contents to serve the activities of the unit within the scope of building internal expenditure regulations, but which the State has not yet issued systems, the Head of the unit may establish expenditure levels for each task, content of work within the financial resources of the unit.

IV- THE STANDARDS, QUANTUMS AND CONTENT OF EXPENDITURE THAT PUBLIC INSTITUTIONS WITH REVENUE MUST COMPLY WITH INCLUDE:
THE REGULATIONS OF THE STATE ARE AS FOLLOWS:

1. Standards and quantum for the use of motor vehicles in administrative and public service agencies and state-owned enterprises as stipulated in Decision No. 122/1999/QĐ-TTg dated May 10, 1999 of the Prime Minister and Decision No. 208/1999/QĐ-TTg dated October 26, 1999 of the Prime Minister amending and supplementing the regulations on standards and quantum for the use of motor vehicles in administrative and public service agencies and state-owned enterprises.

2. Standards for office space as stipulated in Decision No. 147/1999/QĐ-TTg dated July 5, 1999 of the Prime Minister regarding standards and quantum for the use of office premises at state agencies and public institutions.

3. Foreign travel allowance system as stipulated in Circular No. 45/1999/TT-BTC dated May 4, 1999 and Circular No. 108/1999/TT-BTC dated September 4, 1999 of the Ministry of Finance regarding the allowance system for state officials and civil servants on short-term foreign trips.

4. The reception allowance system for foreign guests and international conferences in Vietnam is implemented according to the provisions of Circular No. 100/2000/TT-BTC dated October 16, 2000 of the Ministry of Finance regarding the allowance system for foreign guests working in Vietnam and the organization of international conferences and seminars in Vietnam.

Program funds for national target programs.

Urgent tasks assigned by competent authorities.

7. Funding for state-level, ministry-level, and sector-level scientific research projects.

8. Funding for staff reduction.

9. Capital for basic construction investment; counterpart project capital and aid capital.

Funding for the purchase and major repair of fixed assets.

V- IMPLEMENTATION:

1. Based on this Circular, revenue-generating public institutions shall proceed to establish internal expenditure regulations suitable for the specific characteristics of their operations, with the aim of strengthening management and effective use of funds, thereby improving the quality of institutional activities and creating conditions to increase income for employees.

2. The State Treasury Agency shall base its inspection, review, and implementation of payments to the unit according to current regulations on the unit's internal expenditure regulations.

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