Circular No. 50 TC/TCĐN guiding the management of the temporary holding fund of the state budget at embassies and diplomatic missions abroad

CIRCULAR

Guidelines for managing the temporary holding fund of the state budget at embassies and diplomatic missions abroad.

Embassies and diplomatic missions of our country abroad (hereinafter referred to collectively as the mission) often receive foreign currency revenues belonging to the state's sources of income. Since these funds cannot be immediately deposited into the centralized foreign currency fund of the state, they must temporarily be held at the missions abroad until they can be transferred back to the country. In some cases, the temporarily held revenue is allocated by the Ministry of Finance as a source for expenditures at the mission according to approved plans. The Ministry of Finance provides guidance on the collection and expenditure of the temporary holding fund as follows:

I. FOREIGN CURRENCY REVENUES BELONGING TO THE TEMPORARY HOLDING FUND OF THE STATE BUDGET:

1. Foreign currency from labor cooperation and experts, after deducting the portion left for workers and experts and the expenses for the management staff abroad (except in cases with specific regulations by the Chairman of the Council of Ministers).

2. Foreign currency collected from officials sent to work at international organizations abroad, after deducting the personal share; foreign currency regulated from the income of officials on short-term missions abroad whose travel costs are covered by the host country.

3. Foreign currency from international organizations, mass organizations, and individuals from foreign countries donated to our government and people; donations and contributions for national construction made by officials, employees, students, and interns abroad.

Money from foreign organizations and individuals supporting localities or organizations and agencies shall be the responsibility of the mission to transfer to the recipient locality or agency, and therefore, it is not considered part of the revenue of the temporary holding fund under the state budget.

4. Refunds of money from delegations traveling abroad that were temporarily advanced by the state budget before departure (such as advance payment for air tickets, travel expenses along the way...).

For surplus money from delegations traveling to countries where the local currency is non-convertible foreign currency, if not fully spent, it may be brought back to the country for deposit or deposited into the temporary holding fund. (In the case of strong foreign currency surplus, it must be brought back to the country for deposit).

5. Other revenues such as proceeds from asset liquidation, fees from consular service charges, income from guesthouses of working delegations, training compensation from scholarship students, interns, and workers, and other revenues collected by the mission.

6. Now abolish the reserve fund established by Directive No. 102/TTg-TM dated April 10, 1968, of the Prime Minister. Any remaining balance in the reserve fund will be transferred to the temporary holding fund.

II. PROCEDURES FOR RECEIVING FOREIGN CURRENCY INTO THE TEMPORARY HOLDING FUND OF THE STATE BUDGET AND BOOKKEEPING DOCUMENTS AT MISSIONS

1. Each time money is received, a "money receipt certificate" must be issued in three copies:

- One copy given to the person making the deposit.

- One copy used as accounting documentation.

- One copy sent to the Ministry of Finance.

2. In cases where money is transferred via postal services or local banks for deposit into the mission, a "money receipt certificate" should also be issued in two copies:

- One copy retained together with the withdrawal receipt from the post office or bank for accounting purposes.

- One copy sent to the Ministry of Finance.

3. Foreign currency revenues deposited into the state's temporary holding fund at missions need to be recorded separately in the books, not managed jointly with the mission's operating budget.

III. REGULATIONS ON THE USE OF FOREIGN CURRENCY FROM THE TEMPORARY HOLDING FUND OF THE STATE BUDGET AT MISSIONS

1. Generally, foreign currency formed in the temporary holding fund, if convertible, must be promptly transferred back to the country for the state's centralized foreign currency fund (via banks or diplomatic mail). The Ministry of Finance will stipulate regular transfers or transfers when certain amounts are reached so that missions in countries with freely convertible currencies can promptly transfer money back to the country.

The temporary holding fund can be used as a source of local expenditures according to the budget's spending tasks (especially for non-convertible foreign currency) for:

- Expenditures for mission operations;

- Delegations dispatched by the state budget;

- Fees and transportation costs related to transferring and withdrawing money from the fund;

- Other expenditures for the state budget.

2. All expenditures from the temporary holding fund must follow the withdrawal order from the Ministry of Finance based on written documents or encrypted telegrams through the communication system of the mission. Except for the following cases, the mission is allowed to make expenditures without individual withdrawal orders from the Ministry of Finance:

- Fees for transferring money through banks and transportation costs for sending money via diplomatic mail.

- Additional funding for delegations dispatched by the state budget that have extended their stay beyond the initial plan, exceeding the pre-departure foreign currency advance.

3. Each time the temporary holding fund is withdrawn, the mission needs to issue an expenditure voucher detailing the purpose of the expenditure and retain it with the withdrawal order.

4. Specifically, for emergency advance payments to delegations, the mission needs to issue three copies of an advance payment form (according to attached Form No. 1):

- One copy given to the person borrowing the money.

- One copy sent to the Ministry of Finance.

- One copy retained at the mission.

IV. REPORTING SYSTEM FOR FOREIGN CURRENCY INCOME AND EXPENDITURE FROM THE TEMPORARY HOLDING FUND OF THE STATE BUDGET:

1. Monthly, the mission reports to the country via encrypted telegram the total income and expenditure figures for the Ministry of Finance to take timely measures to avoid accumulation.

2. Monthly, the mission compiles statistics on advance payments made to domestic agencies for each delegation according to attached Form No. 2 and sends them to the Ministry of Finance along with expenditure receipts for the Ministry of Finance to settle accounts with the units receiving advances.

3. Quarterly and annually, the mission prepares a comprehensive report on foreign currency income and expenditure from the temporary holding fund according to attached Form No. 3 and sends it to the Ministry of Finance and the Ministry of Foreign Affairs.

V. SETTLEMENT OF EXPENSES FROM THE TEMPORARY HOLDING FUND

WITH ACCOUNTS FUNDED BY VIETNAMESE DONG

AT VIETNAM FOREIGN TRADE BANK

1. For expenditures funded from the budget for diplomatic missions (embassies, trade offices, military attaché offices, etc.), based on the withdrawal orders issued by the Ministry of Finance; the Ministry of Foreign Affairs, the Ministry of Foreign Trade, the Ministry of National Defense, etc., shall convert the amount according to the official exchange rate published by the State Bank at the time of funding into Vietnamese dong and deposit it into the Vietnamese dong account of the state budget at the Vietnam Bank for Foreign Trade (account number 03-720-001).

2. For advance payments for outgoing delegations.

Outgoing delegations funded by the state budget that have received advance payments from the temporary holding fund must repay the borrowed amount in Vietnamese dong within fifteen days upon returning to the country, depositing it into the Vietnamese dong account of the state budget at the Vietnam Bank for Foreign Trade (account number 03-720-001) and report the final settlement to the Ministry of Finance.

VI. IMPLEMENTATION PROVISIONS.

1. Based on this circular, diplomatic missions shall reconcile foreign currency revenues recorded in Section I and the status of the contingency fund (if any), transferring them immediately to the state's temporary holding fund and reporting to the Ministry of Finance.

2. The heads of diplomatic missions are primarily responsible for managing receipts and expenditures from the temporary holding fund in accordance with the provisions of this circular. If discrepancies in accounting records or non-compliance with regulations are discovered, the Ministry of Finance will coordinate with the Ministry of Foreign Affairs to request explanations, adjustments, or audits from the diplomatic missions. When necessary, both ministries will cooperate to conduct on-site inspections.

3. This circular takes effect from the date of issuance. Any previous documents that conflict with the provisions of this circular are hereby invalidated.