Circular No. 53 TC/CNA guiding the system for setting aside and using the Minister's Fund in 1984

CIRCULAR

Guidelines for the Establishment and Use of the Minister's Fund in 1984

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 Implementing Article 20, Chapter V, Decree No. 35/CP dated February 9, 1981 of the Council of Ministers, which permits the establishment of the Minister's Fund;

To create favorable conditions for Ministers to utilize economic leverage to encourage material incentives for enterprises and staff within their sectors to enhance production efficiency and work quality, promote the socialist emulation movement, and practice thrift;

The Ministry of Finance hereby provides guidelines for the establishment and use of the Minister's Fund in 1984 as follows:

I. OBJECTS AND SOURCES OF THE MINISTER'S FUND ESTABLISHMENT.

The Minister's Fund shall be established at Ministries, State Committees, State Management Councils, and agencies equivalent to Ministries directly under the Council of Ministers (hereinafter referred to as Ministries) to reward enterprises and staff within the sector who have outstanding achievements in production management and business operations.

Depending on the nature of activities of the Ministries, the sources for establishing the Minister's Fund are stipulated as follows:

1. For Ministries managing production and business operations.

The source for establishing the Minister's Fund is 2% of the total amount of the reward fund and welfare fund extracted during the year from State-owned corporations, companies, industrial unions, joint ventures, factories, and economic accounting organizations that are eligible to extract funds for rewards and welfare (hereinafter referred to as factories).

State-owned corporations, companies, industrial unions, and non-economic accounting organizations that have subordinate factories with independent economic accounting must extract and contribute to the reward and welfare funds to establish the Minister's Fund according to the provisions of this Circular.

The total amount of the reward and welfare funds of factories serving as the basis for calculating the Minister's Fund extraction includes all amounts extracted during the year from main production and business profits, secondary production and business profits, profits within and exceeding plans, and other contributions to the two funds.

2. For Ministries managing administrative and public services:

The source for establishing the Minister's Fund for Ministries managing administrative and public services is stipulated as follows:

a. For Ministries managing administrative and public services having one or more subordinate units engaged in production and public services with economic accounting or without economic accounting but eligible to extract reward and welfare funds, the source for establishing the Minister's Fund is:

- 2% of the reward and welfare funds of the subordinate units contributing to the Ministries. In cases where the subordinate units have second-level units under vertical management eligible to extract the two funds, the Minister's Fund will also be extracted from these second-level units.

- If the amount extracted from the subordinate units is insufficient to cover one and a half months of the average new basic salary actually implemented in the year for state-managed civil servants and employees under the Ministry's establishment, then the Central Budget will supplement the difference to reach one and a half months of the new basic salary. One and a half months of the average new basic salary actually implemented in the year for state-managed civil servants and employees under the Ministry's establishment includes:

the grade salary and temporary allowances for civil servants and employees according to Decision No. 219-CP dated May 29, 1981 of the Council of Ministers. If the amount extracted to establish the Minister's Fund from the subordinate units exceeds one and a half months of the average new basic salary actually implemented in the year for state-managed civil servants and employees under the Ministry's establishment, it can still be retained in the Minister's Fund for use, and the Central Budget does not need to provide funding to establish the fund.

b. For Ministries managing administrative and public services that completely lack reward and welfare funds from subordinate production and public service units, the source for establishing the Minister's Fund is provided by the Central Budget equal to one and a half months of the average new basic salary actually implemented in the year for civil servants and employees in state-managed areas under the Ministry's establishment.

One and a half months of the average new basic salary actually implemented in the year is determined as specified in paragraph "a" of point "2" above.

II. PROCEDURES FOR EXTRACTING AND MANAGING THE MINISTER'S FUND

1. Production and business units and public service units under Ministries with reward and welfare funds, when temporarily extracted, must simultaneously temporarily remit 2% of the temporarily extracted amount from the two funds to establish the Minister's Fund. When officially approved the amount extracted from the two reward and welfare funds, the unit will calculate the officially remitted amount to the Ministry to establish the Minister's Fund. If the temporarily extracted amount is insufficient, additional extraction is required. If over-extracted, it can be deducted from the next period's extraction, or the Ministry may refund it upon the unit's request.

The Minister (or head of the unit with the Minister's Fund) has the authority to decide to exempt or reduce the extraction rate of the Minister's Fund for subordinate factories facing difficulties in submitting reward and welfare funds, but cannot increase the extraction rate for other units beyond the limits set out in this Circular.

Ministries managing administrative and public services, if they have not yet reported officially about the annual actual salary fund and the actual extraction of reward and welfare funds from subordinate units, will be temporarily provided with 75% of the Minister's Fund based on the plan for the salary fund in state-managed areas of the Ministry and the plan for extracting the reward and welfare funds from subordinate units.

Upon receiving the official report on the total actual salary fund approved for the year of the Ministry and the actual amount extracted for the Minister's Fund from subordinate units, the Ministry of Finance will provide supplementary funding to meet the stipulated level. If over-provided, the Ministries must return the excess to the Central Budget or deduct it from future allocations.

3. The money extracted from the reward and welfare funds of units and the money provided by the Central Budget to establish the Minister's Fund shall be deposited in a separate account at the bank named "Minister's Fund Deposit." The interest earned on the deposit shall be added to the Minister's Fund.

3. Funds deducted from the award fund and welfare fund of units, and funds allocated from the Central State Budget to establish the Minister's Fund shall be deposited in a separate account at the Bank under the heading "Minister's Fund Deposit." The interest earned on these deposits shall be added to the Minister's Fund.

The Ministries must maintain a ledger to record transactions of the "Minister's Fund Deposit Account" and organize reconciliations with the bank where the account is opened to monitor the establishment and use of the Minister's Fund.

4. At the end of the reporting period, the Ministries must report on the opening balance, closing balance, amount established and used from the Minister's Fund during the period. The Ministry of Finance will review and examine this report together with the regular settlement examination of the Ministries, ensuring that the Minister's Fund is used for the prescribed purposes.

The balance of the Minister's Fund at the end of the year may be carried forward to the next year for use and does not need to be remitted to the State Budget.

5. The Heads of the Financial and Accounting Department and the Office Chiefs have the responsibility to assist the Minister in establishing and managing the use of the Minister's Fund in accordance with the regulations stipulated in this Circular.

III. USE OF THE MINISTER'S FUND.

The Minister's Fund shall be used for the following purposes:

1. To award bonuses to units and staff within the sector who achieve outstanding results in completing urgent projects or key tasks assigned by the Ministry and the State.

2. To award bonuses to units and staff within the sector who achieve excellent results in the socialist emulation movement, truly representing the sector.

3. To award bonuses to units and staff within the sector who win awards at technical seminars, innovation competitions; who make valuable inventions, innovations, apply new scientific and technological advancements, improve business operations which promote production and business efficiency.

4. To provide additional bonuses and welfare benefits to units and enterprises facing difficulties (caused by natural disasters, enemy threats...) or newly established units and enterprises that have not yet stabilized their production, significantly affected by external factors impacting production and business outcomes.

5. To supplement cultural, social, and common welfare needs of the sector.

6. To supplement expenses for training and remuneration according to the prescribed regulations for management improvement seminars and enhancing professional skills.

7. To supplement hospitality expenses according to the prescribed regulations when invited by the Minister for experience exchange and other work-related needs.

The forms and levels of rewards and subsidies are decided by the Minister, with the participation of Party organizations, mass organizations, and the competition committee, taking into account the general bonus levels set by the Council of Ministers, ensuring reasonable and balanced reward levels across sectors.

When using the Minister's Fund, Ministries must ensure prudent and economical spending, avoiding wastefulness and ostentatious displays, and reducing expenditures previously funded by the State budget.

IV. IMPLEMENTATION PROVISIONS

This Circular applies to the establishment and use of the Minister's Fund in 1984.

The Ministry of Finance will issue a formal Circular guiding the establishment of the Minister's Fund from 1985 onwards in accordance with Resolution No. 156/HĐBT dated November 30, 1984 of the Council of Ministers.

Previous regulations and other regulations issued by Ministries regarding the establishment and use of the Minister's Fund that conflict with this Circular are hereby abolished.

Any issues or difficulties encountered during implementation should be reported to the Ministry of Finance for resolution./.