Joint Circular No. 54/2004/TTLT/BTC-BCA guides the preparation, implementation, settlement of state budget, and management of state assets for certain activities in the field of security.

JOINT CIRCULAR
Guidelines for the preparation, implementation, settlement of state budget and management of state assets for certain activities in the field of security
and state management of state property for certain activities within the security sector

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

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

Pursuant to Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government on the management and use of the state budget and state assets for certain activities in the fields of national defense and security;

The Ministry of Finance and the Ministry of Public Security hereby issue guidelines for the preparation, implementation, settlement of the state budget and management of state assets for certain activities in the field of security as follows:

I .GENERAL PROVISIONS

1. Expenditure from the state budget for the field of security includes:

1.1. Expenditure for security work under the responsibility of the Ministry of Public Security as stipulated in Clause 2, Article 5 of Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government;

1.2. Expenditure for security work at ministries, agencies equivalent to ministries, government agencies, other central agencies, and localities as stipulated in point b, Clause 3, Article 5 and Clause 2, Article 6 of Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government. This expenditure is included in the budgets of central agencies and localities.

2. Revenue (including foreign currency) from the field of security includes:

2.1. Fees, charges, and fines retained for expenditure according to current regulations;

2.2. Revenue from the liquidation of assets, disposal of weapons, equipment, and support tools;

2.3. Revenue from state-owned enterprises under the Ministry of Public Security;

2.4. Revenue from public service activities of units under the Ministry of Public Security;

2.5. Revenue from the labor results of prisoners, inmates, and students in detention centers, educational facilities, and correctional schools;

2.6. Other revenues.

3. State budget revenue and expenditure in the field of security shall be recorded in Vietnamese Dong in accordance with the fiscal year, budget level, and State Budget Item List. State budget revenue and expenditure in foreign currency, in-kind, and labor days shall be converted into Vietnamese Dong based on the exchange rate for foreign currency, price of in-kind, and value of labor days as prescribed by the competent authority at the time of occurrence for accounting purposes.

4. Revenues retained to fulfill expenditure tasks as stipulated in Article 2 of Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government must be consolidated in the annual revenue and expenditure budget estimates of the unit, reported to the Ministry of Public Security for consolidation and submitted to the Ministry of Finance for consideration and submission to the Prime Minister. The use of revenue sources must have the approval of the competent authority.

Public service units with revenue, including self-financing public service units and partially self-financing public service units, shall operate in accordance with current regulations.

5. All state budget expenditures in the field of security must be inspected and controlled before, during, and after the disbursement process. Expenditures must be within the allocated budget estimate, in compliance with established standards, norms, and regulations set by the competent state authorities, and approved by the head of the unit or authorized person. The decision-maker must bear responsibility for their decisions; if there is improper expenditure, they must compensate the public treasury and may face disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation.

6. Units under and affiliated with the Ministry of Public Security are responsible for:

6.1. Paying all taxes and other state budget revenues (if applicable) into the state budget in accordance with the law;

6.2. Managing and using state-provided funds and support in accordance with the intended purpose, regulations, thrift, and efficiency;

6.3. Organizing accounting, reporting, and settlement of revenue and expenditure in accordance with the state accounting system, State Budget Item List, and Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance, and other provisions in this Circular.

7. Scope of application: This Circular provides guidelines for the preparation, implementation, settlement of the state budget and management of state assets for the Ministry of Public Security and its subordinate units.

Matters not covered in this Circular shall be implemented in accordance with Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the State Budget Law; Circular No. 79/2003/TT-BTC dated August 13, 2003 of the Ministry of Finance guiding the management, allocation, and settlement of state budget expenditures through the State Treasury, and other current guiding documents.

Ministries, agencies equivalent to ministries, government agencies, other central agencies, and localities with responsibilities for security work shall implement in accordance with the State Budget Law; Decree No. 60/2003/NĐ-CP dated June 6, 2003, Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government, and other current guiding documents implementing the State Budget Law.

II. PREPARATION OF ANNUAL STATE BUDGET ESTIMATES

1. Guidance on the preparation of budget estimates and notification of estimated budget allocations:

1.1. Annually, the Ministry of Public Security guides subordinate budget units on requirements, contents, and deadlines for preparing budget estimates; notifies estimated budget allocations to subordinate budget units based on the following grounds:

a) The Prime Minister's Directive on the development plan and state budget estimate for the next year;

b) Directions and tasks to strengthen national security work;

c) Implementation status of the previous year's state budget estimate;

d) Circulars issued by the Ministry of Finance on the preparation of budget estimates;

e) Estimated budget allocations for the Ministry of Public Security announced by the Ministry of Finance.

1.2. Budgetary units under the Ministry of Public Security shall guide and announce the estimated budget allocation figures according to the principle that higher-level units guide and announce the estimated budget allocation figures to their directly subordinate units. When announcing the estimated budget allocation figures to directly subordinate budgetary units, it must ensure that the revenue figure is not lower than the estimated revenue allocation figure, and the expenditure must be consistent with the total amount and detailed areas of expenditure.

1.3. The deadline for announcing the estimated budget allocation figures:

The Ministry of Finance shall announce the estimated budget allocation figures to the Ministry of Public Security before June 10 of the previous year, including the total amount and each area of revenue and expenditure.

The Ministry of Public Security shall stipulate the time for announcing the estimated budget allocation figures to its subordinate units in accordance with the time required for preparing and submitting annual budget reports.

2. Requirements for preparing the state budget:

2.1. The budget must fully include all revenue and expenditure items, including those revenues retained to supplement the budget and detailed expenditure items from these revenues; it must comply with policies and regulations and be calculated based on standards and norms issued by competent state agencies.

2.2. The budget must be prepared in accordance with the requirements, contents, forms, and deadlines specified in this Circular and the Circular guiding the preparation of the annual state budget issued by the Ministry of Finance.

2.3. The budget of upper-level budgetary units must be prepared based on the consolidation of the budgets of lower-level budgetary units; it must analyze according to sources of funds and areas of expenditure.

2.4. The budget must be accompanied by a detailed explanation of the bases and grounds for calculation. For expenditure items requiring high confidentiality as prescribed by the Prime Minister and the Ministry of Public Security, the Ministry of Public Security shall send the Ministry of Finance only the aggregated figures without detailed explanations.

Based on Decision No. 200/2003/QĐ-TTg dated September 29, 2003 of the Prime Minister regarding the list of State Secrets classified as Top Secret and Confidential within the People's Public Security Force and Decision No. 738/2003/QĐ-BCA(A11) dated October 6, 2003 of the Minister of Public Security regarding the list of State Secrets classified as Secret within the People's Public Security Force, the relevant ministries shall guide the expenditure items requiring high confidentiality in the field of security as follows:

a) Expenditure items related to personnel strength, organization, and structure within the People's Public Security Force (salary, various allowances, subsidies, additional food expenses, allowances, recruitment, discharge-related expenditures, and expenditures calculated based on standards and organizational structures); expenditure items related to detained individuals;

b) Expenditure items for purchasing, investing in construction, producing, preserving, and repairing specialized assets serving security as stipulated in Clause 1, Article 26 of Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government;

c) Expenditure items for purchasing specialized materials for security purposes;

d) Expenditure items for training, exercises, troop movements, security cargo transportation, readiness for combat; production and testing of weapons, equipment, support tools, and specialized equipment serving security;

e) Expenditure items for implementing special projects and programs; research topics and projects in science and technology serving security;

f) Expenditure items for intelligence, counterintelligence, police operations, investigation, and pursuit of criminals;

g) Expenditure items related to professional activities of the public security sector.

2.5. The local public security agency's budget must clearly distinguish:

a) The portion guaranteed by the central budget, which is consolidated and reported upwards according to the分级管理权限的公安部；

b) The portion guaranteed by the local budget as prescribed by law, which is submitted to the local financial authority at the same level for submission to the local People's Congress for decision-making, and simultaneously reported to the superior authorities at each level for the Ministry of Public Security to consolidate. Upon receiving the notification from the local government regarding the budget allocation to their unit, the local public security agency shall report upwards to each level until reaching the Ministry of Public Security for consolidation.

3. Basis for preparing the state budget:

3.1. Tasks for economic and social development; orientation for building and developing a regular, revolutionary, efficient, and gradually modern People's Public Security Force within the five-year plan and long-term goals of the Party and the State; specific indicators reflecting the requirements, scale, and ensuring scientific and technological development linked to the characteristics of the Public Security Ministry's operations in the planning year.

3.2. Personnel strength, organization, detention subjects, needs for construction, procurement, preservation, repair, and production of equipment, means, weapons, equipment, support tools, and specialized equipment in the planning year.

3.3. Laws, tax decrees, collection systems; budget expenditure standards and norms prescribed by competent authorities.

In cases where it is necessary to amend and supplement existing systems and policies to serve as the basis for preparing revenue and expenditure budgets, such amendments and supplements must be studied, made, and promulgated before the annual state budget preparation period.

3.4. Investment projects, plans, and programs for equipping means, major repairs, and basic construction; legislative drafting programs; research topics and trial production aimed at developing the People's Public Security Force approved by the Prime Minister and the Minister of Public Security.

3.5. Provisions on budget management levels as stipulated in Articles 5 and 6 of Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government.

3.6. Directive of the Prime Minister on the formulation of economic and social development plans and the state budget for the following year; Circulars guiding the preparation of the state budget issued by the Ministry of Finance.

3.7. Estimated budget allocation figures announced by the competent authority.

3.8. Implementation status of the previous year's budget and some recent years.

4. Preparation and consolidation of the state budget:

4.1. Directly subordinate budgetary units under the Ministry of Public Security shall prepare the revenue and expenditure budget within their assigned scope and tasks and submit it to the direct superior management agency.

4.2. The second-level budget units shall examine the state budget estimates prepared by their subordinate units; consolidate and prepare state budget revenue and expenditure estimates within their management scope to be submitted to the Ministry of Public Security.

4.3. Based on the revenue and expenditure estimates submitted by subordinate units, the Ministry of Public Security shall prepare the revenue and expenditure estimates of the Ministry to be submitted to the Ministry of Finance, the Ministry of Planning and Investment (for the part of the expenditure estimate for national reserves and centralized construction investment) and the Ministries managing national programs and targets (for the part of the expenditure estimate for national programs and targets).

The state budget revenue and expenditure estimates must be accompanied by a detailed explanatory note setting out the basis for calculating each item of revenue and expenditure.

4.4. The time for submitting the consolidated report to the Ministry of Finance, the Ministry of Planning and Investment, and the Ministries managing national programs and targets shall be before July 20 of the preceding year.

Depending on the characteristics of the unit, the Ministry of Public Security shall stipulate the time for preparing and submitting the state budget estimates for subordinate units in accordance with the specific circumstances.

4.5. Due to the nature of security tasks, within the annual regular expenditure, the state budget shall allocate a portion for construction investment in certain special projects related to security activities (hereinafter referred to as construction investment within regular expenditure). For this expenditure, when preparing the state budget annually, the Ministry of Public Security shall comply with current regulations on state investment and construction management.

5. Budget preparation forms for annual state budgets:

The forms for preparing the budget shall be implemented according to Appendix No. 2 of Circular No. 59/2003/TT-BTC dated June 23, 2003, and the Circular guiding the preparation of the annual state budget of the Ministry of Finance.

6. Organization of work on annual state budget estimates:

After announcing the estimated allocation of the state budget and receiving the state budget estimate report from the Ministry of Public Security, the Ministry of Finance shall take the lead in working with the Ministry of Public Security to discuss the state budget estimate for the Ministry's security tasks before presenting it to the Government.

During the discussion on the state budget estimate, if there are differing opinions between the Ministry of Finance and the Ministry of Public Security, the Ministry of Finance shall have the responsibility to report to the Prime Minister for decision.

7. Decision on the State Budget Estimate:

7.1. Based on the National Assembly's resolution on the state budget estimate and the central budget allocation, the Ministry of Finance shall submit to the Prime Minister the assignment of state budget revenue and expenditure tasks for the Ministry of Public Security before November 20 of the preceding year and provide guidance on state budget revenue and expenditure tasks before November 25 of the preceding year.

7.2. After receiving the state budget revenue and expenditure estimate assigned by the competent authority, the Ministry of Public Security shall organize the allocation and assignment of the state budget revenue and expenditure estimate to subordinate budget units. The allocation and assignment of the budget estimate to budget-using units must be completed before December 31 of the preceding year.

III. IMPLEMENTATION OF THE STATE BUDGET:

1. Allocation and Assignment of State Budget Expenditure Estimates:

1.1. After being assigned the state budget estimate by the Prime Minister, the Ministry of Public Security shall proceed to allocate and assign the state budget expenditure estimate to second and third-level budget units directly related to first-level budget units and authorize second-level units to allocate and assign the budget estimate to subordinate budget-using units according to the following principles:

a) The total amount allocated to subordinate units shall not exceed the state budget estimate assigned by the Prime Minister both in total and in detail by each expenditure category;

b) When allocating the assigned state budget estimate, the allocating unit must ensure the allocation of funds and project costs that have been advanced;

c) For construction investment expenditure tasks, priority must be given to important ongoing projects; for new projects, allocation and assignment of the budget estimate can only occur when all conditions stipulated by law on investment and construction management are met.

1.2. The budget estimate assigned to budget-using units shall be allocated according to each type in the State Budget Classification, under the following categories:

a) Personal payment expenses including items 100, 101, 102, 103, 104, 105, 106, 108, and 122 of the current State Budget Classification.

b) Professional business expenses including items 109, 110, 111, 112, 113, 114, 115, 116, 117, and 119 of the current State Budget Classification.

c) Purchase, major repair, and construction investment within regular expenditure including items 118, 144, 145, 147, 148, and 149 of the current State Budget Classification.

d) Other expenses including items not belonging to the three groups of expense items above in the current State Budget Classification.

For construction investment, major repair, purchase, and other non-recurring expenses, the annual budget estimate assigned to budget-using units must also comply with the implementation schedule by quarter.

1.3. In cases where some expenditure tasks in the initial budget estimate cannot be clearly identified by implementing units, the Ministry of Public Security may retain them for later allocation but must send them to the Ministry of Finance for review according to the procedures specified in point 1.4 and point 1.5, Section 1, Part III of this Circular.

1.4. The allocation plan for the state budget estimate for subordinate budget units, including unallocated amounts and centralized expenditures of the Ministry of Public Security, must be sent to the Ministry of Finance for review.

The Ministry of Public Security shall be responsible for reviewing the allocation plan for the state budget estimate of second-level budget units authorized by the Ministry of Public Security to allocate the budget estimate. Based on the guidelines in this Circular, the Ministry of Public Security shall specify the procedures and deadlines for reviewing the allocation plan for the state budget estimate of second-level budget units.

The content of the review includes:

a) Reviewing the accuracy of the allocation to subordinate budget units in accordance with the content of the budget estimate assigned by the competent authority;

b) Reviewing whether the allocation of the budget estimate complies with current policies, systems, standards, and norms for state budget expenditure.

Through the review, if the Ministry of Finance finds that the allocation plan of the Ministry of Public Security does not meet the requirements mentioned above, it shall request the Ministry of Public Security to adjust it. If the Ministry of Public Security disagrees with the adjustment request of the Ministry of Finance, it shall report to the Prime Minister for consideration and decision.

1.5. The Ministry of Finance shall conduct the review of the allocation of the budget estimate within a maximum of seven working days (from the date of receipt of the budget allocation plan) and issue a written notification of the review results to the Ministry of Public Security.

1.6. After being in agreement with the Ministry of Finance on the budget allocation plan, the Ministry of Public Security decides to allocate the budget estimate to its subordinate budget units, simultaneously sending it to the Ministry of Finance, State Treasury, and the State Treasury where transactions take place for coordination in implementation.

After receiving the audit opinion from the Ministry of Public Security, the second-level budget unit decides to allocate the budget estimate to its subordinate units, simultaneously sending it to the Ministry of Public Security and the State Treasury where transactions take place.

1.7. In cases where the budget estimate is supplemented from the central government's reserve fund or increased revenue according to the decision of the competent authority, the Ministry of Public Security must allocate it to the using units in accordance with the assigned objectives, sending it to the Ministry of Finance, State Treasury, and the State Treasury where transactions take place.

2. Adjusting budget estimates allocation:

2.1. When it is necessary to adjust the budget estimate between units under and directly under the Ministry of Public Security or within groups of items in the budget estimate without changing the total amount and details according to the assigned budget field, the Ministry of Public Security issues a letter requesting adjustment of the budget allocation plan to be sent to the Ministry of Finance and the State Treasury.

The Ministry of Finance is responsible for reviewing the request for budget adjustment according to the procedures stipulated in Points 1.4 and 1.5 of Section 1, Part III of this Circular.

2.2. Based on the unified opinion of the Ministry of Finance, the Ministry of Public Security decides to adjust the allocated budget estimate, simultaneously sending it to the Ministry of Finance, State Treasury, and the State Treasury where transactions take place.

2.3. In cases where the second-level budget unit of the Ministry of Public Security is authorized to allocate and assign the budget estimate, it is also authorized to adjust the budget estimate. After receiving the audit opinion from the Ministry of Public Security, the second-level budget unit decides to adjust the allocated budget estimate, simultaneously sending it to the Ministry of Public Security and the State Treasury where transactions take place.

3. Provisional funding:

3.1. In cases where at the beginning of the fiscal year, the budget estimate and allocation plan have not been decided by the competent state agency, the Ministry of Finance and the State Treasury temporarily provide funds according to the provisions of Article 45 of Decree No. 60/2003/NĐ-CP dated September 6, 2003 of the Government.

3.2. To ensure regular operations for police forces in the early days of the year, upon the proposal of the Ministry of Public Security, in December of the previous year, the Ministry of Finance and the State Treasury implement provisional payment of salaries, allowances with salary characteristics, business expenses, and other necessary expenditures. The maximum advance payment level equals the average of one month of the previous year for the expenditure items that are provisionally funded.

4. Organizing quarterly budget spending:

4.1. Based on the annual budget spending estimate assigned and the requirements for spending in the quarter, budget-using units prepare detailed spending needs (divided by month) according to the expenditure categories specified in Point 1.2 of Section 1, Part III of this Circular, to be submitted to the State Treasury where transactions take place and the superior management agency before the 15th day of the last month of the quarter. Personal payment items and regular payment items must be arranged monthly throughout the year to comply with the prescribed regulations. Items with seasonal characteristics or only occurring at certain times such as basic construction investment, procurement, major repairs, and other non-regular items must follow the progress of the assigned quarter.

The Ministry of Public Security compiles the quarterly spending needs (divided by month) to be submitted to the Ministry of Finance before the 25th day of the last month of the quarter.

4.2. The Ministry of Finance bases on the revenue capacity and quarterly spending needs, formulates a quarterly budget management plan to ensure sufficient sources to meet the spending needs within the budget estimate, in accordance with the regulations of the units under the Ministry of Public Security. In special cases requiring rearrangement of spending priorities or temporary suspension of payments for some items, the Ministry of Finance has the responsibility to notify the Ministry of Public Security to proactively implement. If by the first day of the first month of the quarter, the Ministry of Public Security does not receive a notification from the Ministry of Finance, it is considered that the spending needs registered by the Ministry of Public Security will be guaranteed in terms of sources.

4.3. In cases of urgent spending needs arising within the annual budget estimate assigned but exceeding the quarterly spending needs already submitted by the budget unit to the State Treasury, the State Treasury still pays and promptly reports through the State Treasury system to the Ministry of Finance to proactively balance the sources.

5. Conditions for national budget spending:

5.1. Already included in the assigned budget estimate. In cases where the budget estimate and budget allocation plan have not been decided by the competent authority, the Minister of Finance decides to temporarily provide funds for tasks that cannot be delayed.

5.2. Complying with the standards, norms issued by the competent state agency applicable to the security sector;

5.3. Having been decided by the head of the budget-using unit or the person authorized to decide on spending;

5.4. In addition to the above conditions, when using state budget funds for basic construction investment, production investment, procurement of equipment, working tools, and other works that require bidding or price assessment, they must organize bidding or price assessment according to the law, except for works with high confidentiality requirements as proposed by the Ministry of Public Security.

In cases permitted to designate contractors according to the Government's regulations, a price assessment must be conducted, and the person making the decision to designate the contractor must bear legal responsibility to the state regarding prices and quality of equipment and projects.

5.5. Regular payment items are evenly distributed throughout the year for spending: seasonal payment items or those only occurring at certain times such as basic construction investment, procurement, major repairs, and other non-regular items must be implemented according to the budget estimate assigned by the Ministry of Public Security.

6. Principles for payment and settlement of budget expenditures:

BASED ON THE STATE BUDGET PROJECTION ALLOCATED AND THE REQUIREMENTS TO IMPLEMENT THE TASKS OF THE UNIT IN ACCORDANCE WITH REGULATIONS, STANDARDS, AND QUOTAS, THE MINISTRY OF FINANCE AND THE STATE TREASURY SHALL MAKE PAYMENTS AND SETTLEMENTS FOR STATE BUDGET EXPENSES IN ACCORDANCE WITH THE PRINCIPLE OF DIRECT SETTLEMENT FROM THE STATE TREASURY TO THE SUPPLIERS OF GOODS AND SERVICES AND CONTRACTORS; OR TO THE BUDGET USING UNITS FOR EXPENSES REQUIRING HIGH SECURITY.

THE SETTLEMENT OF CAPITAL FOR CONCENTRATED BASIC CONSTRUCTION INVESTMENT BY THE STATE AND FOREIGN CURRENCY PAYMENTS SHALL BE CONDUCTED IN ACCORDANCE WITH THE REGULATIONS OF THE MINISTER OF FINANCE.

THE MINISTRY OF FINANCE SHALL MAKE STATE BUDGET EXPENDITURES IN TWO FORMS: PAYMENT AND SETTLEMENT ACCORDING TO THE BUDGET PROJECTION FROM THE STATE TREASURY AND PAYMENT AND SETTLEMENT THROUGH ORDER OF PAYMENT. ANNUALLY, THE MINISTRY OF FINANCE SHALL ANNOUNCE THE CONTENTS OF EXPENDITURE THROUGH ORDER OF PAYMENT IN THE NOTIFICATION OF THE RESULTS OF REVIEWING THE DISTRIBUTION SCHEME OF THE STATE BUDGET OF THE MINISTRY OF PUBLIC SECURITY.

7. PAYMENT AND SETTLEMENT ACCORDING TO THE BUDGET PROJECTION FROM THE STATE TREASURY:

7.1. PAYMENT AND SETTLEMENT ACCORDING TO THE BUDGET PROJECTION FROM THE STATE TREASURY INCLUDES REGULAR EXPENSES IN THE BUDGET PROJECTION ALLOCATED TO THE MINISTRY OF PUBLIC SECURITY (EXCEPT EXPENSES IN FOREIGN CURRENCY AND TASKS THAT ARE PAID AND SETTLED THROUGH ORDER OF PAYMENT AS PROVIDED FOR IN POINT 8.1, SECTION 8, PART III OF THIS CIRCULAR).

7.2. THE PROCEDURE FOR PAYMENT AND SETTLEMENT IS AS FOLLOWS:

7.2.1. BASED ON THE QUARTERLY EXPENDITURE NEEDS SUBMITTED TO THE STATE TREASURY, ACCORDING TO THE REQUIREMENTS OF THE EXPENDITURE TASKS, THE HEAD OF THE BUDGETARY UNIT SHALL ISSUE A BUDGET DRAWDOWN DOCUMENT ACCOMPANIED BY THE SETTLEMENT DOCUMENTATION (EXCEPT FOR EXPENSES WITH HIGH SECURITY REQUIREMENTS) AND SEND IT TO THE STATE TREASURY WHERE THE TRANSACTION TAKES PLACE FOR EXPENDITURE OR TO SUBORDINATE BUDGETARY UNITS.

IF THE AUTHORIZED BODY NOTIFIES ADJUSTMENTS TO THE QUARTERLY EXPENDITURE NEEDS, THE UNIT MAY ONLY SPEND WITHIN THE ADJUSTED LIMIT.

7.2.2. THE STATE TREASURY WHERE THE TRANSACTION TAKES PLACE SHALL BASED ON THE SETTLEMENT DOCUMENTATION (EXCEPT FOR EXPENSES WITH HIGH SECURITY REQUIREMENTS), THE CONDITIONS FOR EXPENDITURE AS PROVIDED FOR IN SECTION 5, PART III OF THIS CIRCULAR, AND THE BUDGET DRAWDOWN DOCUMENT ISSUED BY THE HEAD OF THE BUDGETARY UNIT OR THE PERSON AUTHORIZED, SHALL MAKE PAYMENT AND SETTLEMENT.

FOR EXPENSES WITH HIGH SECURITY REQUIREMENTS INCLUDING ITEMS 100, 101, 102, 103, 104, 105, 106, 108, 113, 118, 119, 122, 144, 145, 147, 148, 149 AND SUBITEM 03 OF ITEM 109, SUBITEM 10 OF ITEM 111, THE STATE TREASURY WILL NOT CHECK THE SETTLEMENT DOCUMENTATION BUT WILL MAKE PAYMENT AND SETTLEMENT TO THE BUDGET USING UNITS. THE MINISTRY OF PUBLIC SECURITY AND THE BUDGET USING UNITS SHALL BE RESPONSIBLE FOR THE LEGALITY AND VALIDITY OF THE EXPENDITURE DOCUMENTATION.

7.2.3. IN CASE THERE ARE NOT YET SUFFICIENT CONDITIONS FOR DIRECT SETTLEMENT THROUGH THE STATE TREASURY FOR ALL EXPENSES, THE STATE TREASURY SHALL ISSUE ADVANCES FOR SOME EXPENSES IN ACCORDANCE WITH THE REGULATIONS OF THE MINISTER OF FINANCE. AFTER COMPLETING THE WORK AND HAVING SUFFICIENT SETTLEMENT DOCUMENTATION, THE ADVANCE SHALL BE TRANSFERRED TO ACTUAL EXPENDITURE.

WHEN DRAWING DOWN THE BUDGET TO SPEND, THE BUDGET USING UNITS AND THE STATE TREASURY MUST RECORD THE EXPENDITURE ACCORDING TO THE NATIONAL BUDGET CHART OF ACCOUNTS WITHIN THE TOTAL LIMIT OF THE GROUP OF ITEMS LISTED IN THE ALLOCATED BUDGET PROJECTION, EXCEPT FOR THE GROUP OF ITEMS DRAWN DOWN FROM THE BUDGET TO SPEND ON ALL ITEMS WHICH MUST BE RECORDED ACCORDING TO THE SPECIFIC ITEMS. IN CASE IT IS NECESSARY TO ADJUST THE BUDGET BETWEEN GROUPS OF ITEMS, THE BUDGET USING UNITS MUST REPORT TO THE SUPERIOR MANAGEMENT AUTHORITY TO IMPLEMENT IN ACCORDANCE WITH THE REGULATIONS AT SECTION 2, PART III OF THIS CIRCULAR.

7.2.5. IN CASE BUDGET USING UNITS DO NOT HAVE A BUDGET ACCOUNT AT THE STATE TREASURY AND RECEIVE FUNDS FROM SUPERIOR UNITS THROUGH A PAYMENT ORDER (IN ACCORDANCE WITH ARTICLE 18 OF DECREE NO. 10/2004/NĐ-CP OF JANUARY 7, 2004), THE CONTENTS OF EXPENDITURE ON THE PAYMENT ORDER MUST BE DETAILLED ACCORDING TO THE GROUP OF EXPENDITURE ITEMS. WHEN DRAWING DOWN FUNDS TO SPEND, THEY MUST BE SUBJECT TO THE EXPENDITURE CONTROL OF THE STATE TREASURY AS PROVIDED FOR IN SUBSECTION 7.2.2 ABOVE.

8. PAYMENT AND SETTLEMENT THROUGH ORDER OF PAYMENT:

8.1. THE TASKS THAT ARE PAID AND SETTLED THROUGH ORDER OF PAYMENT INCLUDE:

a) SECRET FEES, INVESTIGATION, MANHUNT, PURCHASE, CONSTRUCTION, AND EMERGENCY RESERVE ACCORDING TO THE PROPOSAL OF THE MINISTRY OF PUBLIC SECURITY.

b) SUPPORT FOR STATE ENTERPRISES ENGAGED IN PUBLIC SERVICES UNDER THE MINISTRY OF PUBLIC SECURITY;

c) RECORDING OF STATE BUDGET INCOME AND EXPENDITURE FOR CERTAIN SPECIFIC INCOME AND EXPENDITURE ITEMS AS PROVIDED FOR BY THE MINISTRY OF FINANCE;

d) CERTAIN EMERGENCY EXPENSES AND OTHER EXPENSES ACCORDING TO THE DECISION OF THE MINISTER OF FINANCE.

8.2. THE PROCEDURE FOR PAYMENT AND SETTLEMENT IS AS FOLLOWS:

8.2.1. BASED ON THE ALLOCATED STATE BUDGET PROJECTION AND THE BUDGETARY EXPENDITURE NEEDS FOR THE QUARTER, THE MINISTRY OF PUBLIC SECURITY SHALL ISSUE A LETTER REQUESTING BUDGET TO THE MINISTRY OF FINANCE.

8.2.2. BASED ON THE LETTER REQUEST FROM THE MINISTRY OF PUBLIC SECURITY, THE MINISTRY OF FINANCE SHALL ISSUE A BUDGET ORDER OF PAYMENT INTO THE DEPOSIT ACCOUNT OF THE MINISTRY OF PUBLIC SECURITY OR THE BUDGET USING UNIT; AND DELEGATE THE MINISTRY OF PUBLIC SECURITY TO CONTROL THE SETTLEMENT DOCUMENTATION AND VOUCHERS IN ACCORDANCE WITH CURRENT REGULATIONS.

THE MINISTRY OF PUBLIC SECURITY AND THE BUDGET USING UNITS SHALL BE RESPONSIBLE FOR SPENDING IN ACCORDANCE WITH THE REGULATIONS, QUOTAS, AND STANDARDS ISSUED BY THE AUTHORIZED BODIES AND THE LEGALITY AND VALIDITY OF THE EXPENDITURE DOCUMENTATION.

8.2.3. THE STATE TREASURY SHALL ISSUE THE BUDGET FUNDS, TRANSFER FUNDS INTO THE DEPOSIT ACCOUNT OF THE BUDGETARY UNIT OR ISSUE CASH TO THE MINISTRY OF PUBLIC SECURITY OR THE BUDGET USING UNITS ACCORDING TO THE ORDER OF PAYMENT ISSUED BY THE MINISTRY OF FINANCE.

9. ADVANCE BUDGET DRAWDOWN:

IN CASE IMPORTANT AND URGENG TASKS MUST BE PERFORMED ACCORDING TO THE REGULATIONS OF THE GOVERNMENT AND THE PRIME MINISTER BUT ARE NOT ALLOCATED IN THE BUDGET AND THE RESERVE FUND IS INSUFFICIENT, BASED ON THE PROPOSAL OF THE MINISTRY OF PUBLIC SECURITY, THE MINISTER OF FINANCE SHALL DECIDE TO ADVANCE THE BUDGET OF THE FOLLOWING YEAR (EXCEPT FOR PROJECT GROUP A). THE MINISTRY OF FINANCE AND THE STATE TREASURY SHALL MAKE ADVANCE BUDGET DRAWDOWN ACCORDING TO THE PROCEDURE PROVIDED FOR IN SECTION 7 OR SECTION 8, PART III OF THIS CIRCULAR.

10. OPENING ACCOUNTS TO RECEIVE STATE BUDGET FUNDS:

THE MINISTRY OF PUBLIC SECURITY (THE PRIMARY BUDGETARY UNIT), SECONDARY AND TERTIARY BUDGETARY UNITS DIRECTLY RELATED TO THE PRIMARY UNIT SHALL OPEN BUDGET ACCOUNTS AND DEPOSIT ACCOUNTS; TERTIARY BUDGETARY UNITS DIRECTLY RELATED TO THE SECONDARY UNIT, THE SETTLEMENT UNIT SHALL OPEN DEPOSIT ACCOUNTS AT THE STATE TREASURY WHERE THE TRANSACTION TAKES PLACE TO RECEIVE FUNDS FROM SUPERIOR UNITS, TO PROVIDE FUNDS TO LOWER LEVEL BUDGETARY UNITS OR TO SPEND IN ACCORDANCE WITH THE REGULATIONS.

Units under the Ministry of Public Security at all levels shall open budget accounts and unit deposit accounts at State Treasury at all levels in accordance with the guidelines of the Ministry of Finance; they shall be subject to inspection by the Ministry of Finance and State Treasury during the payment and use of funds.

It is strictly prohibited for units to withdraw budget appropriations and transfer them into unit deposit accounts, except in cases specified in Article 18 of Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government.

The State Treasury shall specify the procedures for opening accounts for units.

11. Supplementing the budget:

During the implementation of the budget, if urgent and important security tasks or essential expenditures not provided for or inadequately provided for in the assigned budget occur, and after rearranging expenses still cannot meet the needs, units shall report to their superior agencies, the Ministry of Public Security will consolidate and report to the Ministry of Finance. The Ministry of Finance shall be responsible for inspecting, reviewing, and if necessary, reporting to the Prime Minister for decision (or deciding according to the delegation) to handle in accordance with Article 7 of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government.

12. Reporting system:

Regular reports on the implementation of revenue and expenditure, accounting reports, finalization, and financial statements shall be carried out in accordance with Article 61 of the State Budget Law and other reporting systems prescribed by the Ministry of Finance.

In case the Ministry of Public Security fails to submit reports within the stipulated time, the Ministry of Finance shall issue a decision to suspend budget payments and notify the State Treasury to implement together.

IV. ACCOUNTING AND FINALIZATION OF THE STATE BUDGET

1. Responsibilities of budget units:

1.1. The Ministry of Public Security is the first-level budget unit, directly receiving annual budgets assigned by the Prime Minister and directly relating to the Ministry of Finance; it is responsible for:

a) Being accountable to the State for organizing the accounting system, implementing state budget accounting and finalization, and managing state assets throughout the Public Security sector;

b) Reviewing and being responsible for the results of the review of budget finalization reports of subordinate second-level budget units; compiling quarterly reports and annual finalization reports to send to the Ministry of Finance. Inspecting and guiding accounting practices and financial management throughout the Public Security sector.

1.2. Departments, Commands, Bureaus, schools, and equivalent units under the Ministry of Public Security; provincial and centrally-administered city public security organs are second-level budget units, allocated and assigned budgets by the first-level budget unit; they are responsible for:

a) Organizing and implementing accounting and budget finalization, managing state assets at their level and the accounting and budget finalization work of subordinate third-level budget units in accordance with regulations.

b) Reviewing and being responsible for the results of the review of budget finalization reports of subordinate third-level budget units; compiling quarterly reports and annual finalization reports to send to the Ministry of Public Security.

1.3. Departments, Bureaus, detention centers under Bureau V26, some district and county police units and equivalents with large expenditures or special expenditures are third-level budget units, directly using state funds allocated by the first or second-level budget units; they are responsible for:

a) Organizing and implementing accounting and budget finalization, managing assets at their level;

b) Reviewing and being responsible for the results of the review of budget finalization reports of grassroots expenditure units. Inspecting and guiding accounting practices for lower-level expenditure units.

1.4. Subordinate units without independent budgets are grassroots expenditure units, when making expenditures, they must record the receipt of funds from higher-level units and settle accounts with higher-level units.

2. Organization of the state budget accounting system:

2.1. All-level budget units must organize the state budget accounting system in accordance with current regulations.

2.2. Accounting, reporting, and finalizing the state budget in accordance with the national accounting system; strictly adhering to the Accounting Law, Statistics Law, and current financial and budgetary management systems and state asset management systems.

2.3. For grassroots expenditure units, there must be dedicated settlement accountants.

The application of specific contents to suit the characteristics of the Ministry of Public Security must be agreed upon and confirmed in writing by the Ministry of Finance.

3. Closing the books of the state budget accounting:

At the end of each accounting period (month, quarter, year), all-level budget units and the Ministry of Public Security must carry out the closing of the accounting books.

The closing of the accounting books at the end of the year shall be carried out in accordance with Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance and other guidance documents of the Ministry of Finance regarding the closing of accounting books and annual finalization.

By the end of December of the budget year, if a unit has remaining balances in its budget account, unit deposit account, or deposit account with origins from the state budget at the State Treasury, it must return the balance to the state budget. In case of objective reasons preventing timely settlement of budget expenditures, the unit must submit a written request to transfer the remaining balance in the deposit account, along with relevant documents detailing the remaining expenditures (with confirmation from the State Treasury where transactions were conducted) to the Ministry of Public Security for consolidation and submission to the Ministry of Finance for consideration to carry over to the next year for continued use.

4. Principles for preparing the finalization of the state budget:

4.1. Data in the finalization report must be accurate, truthful, and complete. The content of the state budget finalization report must correspond to the content recorded in the assigned budget and detailed according to the State Budget Schedule. The Minister of Public Security and heads of budget-using units must be legally responsible for the accuracy, truthfulness, and completeness; they are responsible for any incorrect accounting and finalization of revenues and expenditures.

4.2. Forms and methods for preparing the finalization report of the state budget shall be in accordance with the general provisions of the Ministry of Finance.

4.3. The quarterly budget execution report and the annual settlement report of subordinate budget units shall be submitted to their direct superior budget units. The Ministry of Public Security shall compile and prepare the annual settlement report of the Ministry of Public Security to be sent to the Ministry of Finance, accompanied by the following documents:

a) A summary of the approved settlement figures for subordinate units, including retained revenue as prescribed.

b) An explanation detailing the reasons for achieving, not achieving, or exceeding the allocated budget according to each indicator, along with recommendations (if any).

4.4. Annual settlement reports from units when submitted to the competent authority for approval or review must be accompanied by confirmation from the State Treasury regarding the total and details thereof.

4.5. Annual settlement reports of budget units and the Ministry of Public Security shall not show expenditures exceeding revenues.

4.6. For funds supported by local budgets, local public security agencies shall prepare quarterly budget execution reports and annual settlement reports to be submitted to the local financial authorities at the same level, and also to higher-level agencies up to the Ministry of Public Security for monitoring, management, and coordination with the Ministry of Finance to implement instructions.

5. Procedures for preparing, submitting, and reviewing state budget settlement reports:

5.1. Subordinate budget units shall prepare annual state budget settlement reports to be submitted to their superior budget units. The head of the superior budget unit shall be responsible for reviewing the settlement and informing the subordinate budget unit of the results of the settlement review.

Within ten days from receiving the settlement notification from the superior budget unit, the subordinate budget unit must complete all requirements stated in the settlement review notification. In case the subordinate budget unit disagrees with the settlement notification from the superior budget unit, it must submit a written document to the higher management units up to the Ministry of Public Security for consideration and decision.

5.2. The Ministry of Public Security is responsible for approving the annual settlement reports of its subordinate budget units; compiling and preparing the annual settlement report to be submitted to the Ministry of Finance.

Within ten days from receiving the annual settlement review notification from the Ministry of Finance, the Ministry of Public Security must complete all requirements stated in the settlement review notification. In case the Ministry of Public Security disagrees with the annual settlement review notification from the Ministry of Finance, it must submit a written document to the Prime Minister for consideration and decision.

5.3. During the process of the Ministry of Public Security's review of the annual settlements of second-level budget units, the Ministry of Finance may participate in the review of the annual settlements of some units depending on specific conditions and contents.

5.4. Apart from the annual settlement report forms and accompanying documents, the settlement review or audit body has the right to request the reporting unit to provide additional explanations or clarifications on certain expenditure items (if deemed necessary) before announcing the settlement approval to the unit.

5.5. The Ministry of Finance is responsible for auditing the annual settlement report of the Ministry of Public Security, handling it within its authority, and notifying the Ministry of Public Security of the settlement review within thirty working days from the date of receipt of the full annual settlement report of the Ministry of Public Security.

5.6. The time for submitting quarterly budget execution reports and annual settlement reports is stipulated as follows:

The Ministry of Public Security shall compile and submit the quarterly budget execution report to the Ministry of Finance no later than twenty-five days after the end of the quarter, and approve and compile the annual settlement report to be submitted to the Ministry of Finance no later than September 30 of the following year.

The Ministry of Public Security shall specify the submission deadlines for the reports of various levels of budget units to ensure timely submission to the Ministry of Finance.

6. All budget units under the Ministry of Public Security must strictly comply with regulations on accounting work and state budget settlement, prepare state budget settlement reports according to the prescribed forms and deadlines. If a unit fails to submit on time, in addition to being subject to administrative penalties for violations in accounting and statistics as prescribed, the Ministry of Finance may temporarily suspend or require the State Treasury to temporarily suspend funding until the unit submits the annual settlement report, except for essential expenses such as salaries, allowances, scholarships, food, and subsidies.

7. The audit of annual settlement reports of budget units under the Ministry of Public Security shall be conducted by the National Audit Office in accordance with Article 66 of the State Budget Law and Article 78 of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government.

V. MANAGEMENT OF STATE ASSETS UNDER THE MINISTRY OF PUBLIC SECURITY

1. State assets assigned to the Ministry of Public Security for management and use include:

1.1. Special-use assets serving national security activities and operations, which include technical equipment, means of transportation, weapons, military equipment, barracks, ports, defense works, combat works, land for security purposes, detention facilities, and other types of assets serving security operations and tasks.

1.2. Assets serving management functions, which are other types of assets under the management and use of the Ministry of Public Security but not included in the aforementioned categories.

1.3. National reserve assets in the field of security managed and preserved by the Ministry of Public Security.

2. Organization of asset management:

2.1. For special-use assets serving national security operations, the Ministry of Public Security is responsible for organizing management and use according to established regulations and confidentiality principles issued by authorized bodies; conducting periodic inventory, evaluation, and reporting to relevant agencies as prescribed by the Government.

2.2. For assets serving management functions, the Ministry of Public Security organizes management and use according to current state regulations on managing state assets.

2.3. For reserve assets, they are managed according to the current regulations on preserving national strategic reserves.

2.4. Assets at enterprises under the Ministry of Public Security are managed according to current regulations on managing assets in state-owned enterprises.

3. The mobilization, conversion, and liquidation of assets under the Ministry of Public Security shall be carried out in accordance with current state regulations.

It is strictly prohibited to use state property for purposes other than those specified by competent state authorities, including personal use, business operations, and other purposes, except in special cases as provided by the Government.

VI. Implementation Organization

1.||| This Circular takes effect from the 2004 fiscal year.

The provisions regarding the delegation of content and budgetary expenditure tasks of the State budget in the field of security shall be implemented in accordance with Decree No. 10/2004/NĐ-CP dated January 6, 2004, of the Government on management and use of the State budget and assets for certain activities in the fields of national defense and security.

This Circular replaces Circular Joint Circular No. 158/1998/TTLT-BTC-BCA dated December 14, 1998, issued by the Ministry of Finance and the Ministry of Public Security guiding the preparation, implementation, settlement of the State budget, and management of State assets in the field of security. Any previous documents and regulations that conflict with this Circular are no longer effective.

2. Ministries, ministerial-level agencies, government agencies, central-level agencies, People's Committees at all levels, and agencies and units under the Ministry of Public Security are responsible for implementing this Circular.

Any difficulties or obstacles encountered during implementation should be promptly reported to the relevant ministries for study and resolution./.