Circular No. 54/2007/TT-BTC guiding the establishment, allocation of plans, and financial management in the field of providing public utility services ensuring maritime safety

CIRCULAR

Guidelines for the establishment, allocation, and management of financial plans in the field of providing public services to ensure maritime safety.

In the field of providing public services to ensure maritime safety.

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Pursuant to the Maritime Code;

Pursuant to the Decree on Fees and Charges;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations for State-owned Enterprises and the Management of State Capital Invested in Other Enterprises;

Pursuant to Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Procurement Regulations for ordering, allocating plans for production and supply of public goods and services;

Pursuant to Decision No. 888/QĐ-BGTVT dated April 16, 2007 of the Minister of Transport recognizing again the state-owned enterprises performing public service tasks under the Vietnam Maritime Administration;

The Ministry of Finance hereby issues guidelines for the establishment, allocation, and management of financial plans in the field of providing public services to ensure maritime safety as follows:

I. GENERAL PROVISIONS:

1. Scope of application:

The Maritime Safety Assurance Company I and the Maritime Safety Assurance Company II (hereinafter referred to as the two Maritime Safety Assurance Companies) shall be established by decision of the Minister of Transport.

2. The objects subject to maritime safety assurance work are: The maritime channel system and the lighthouse system managed and operated by the two Maritime Safety Assurance Companies.

3. Public services to ensure maritime safety include:

3.1. Regular maritime safety assurance work, including:

a) Operation of the lighthouse system;

b) Operation of the maritime channel system;

c) Survey and issuance of maritime notices.

3.2. Irregular maritime safety assurance work, including:

a) Major repair works on facilities;

b) Dredging and maintenance of maritime channels;

c) Other urgent tasks.

4. The two Maritime Safety Assurance Companies shall be allocated capital, assets, and personnel necessary to perform maritime safety assurance tasks according to economic and technical norms prescribed by the Minister of Transport.

In addition to performing public service tasks, the two Maritime Safety Assurance Companies have the right to utilize the allocated capital, assets, and other resources from the state to organize business activities in accordance with the law without affecting the public service tasks assigned by the state and must be responsible for the efficiency of the use of state capital and assets.

II. ESTABLISHMENT AND ALLOCATION OF PLANS FOR PROVIDING PUBLIC SERVICES TO ENSURE MARITIME SAFETY:

1. Sources of funds for maritime safety assurance work:

1.1. Maritime safety fees are revenue fees collected by the state as specified in the fee list attached to the Law on Fees and Charges, and are managed and used by the two Maritime Safety Assurance Companies in accordance with regulations. Revenue from maritime safety fees is used entirely for maritime safety assurance work and constitutes the income from public service activities of the Maritime Safety Assurance Companies; the two Maritime Safety Assurance Companies are not required to pay value-added tax on this revenue.

1.2. Sources of revenue from maritime safety fees include:

a) Revenue from maritime safety fees from maritime channels managed by the two Maritime Safety Assurance Companies;

Marine port authorities collect maritime safety fees and are entitled to a bonus based on a percentage of the collected maritime safety fees as stipulated by the Minister of Finance. After deducting the bonuses for the port authorities, the remaining amount is transferred to the two Maritime Safety Assurance Companies according to the regulations of the competent authority.

b) Revenue from maritime safety fees from maritime channels invested in and constructed by businesses at a ratio prescribed by the Minister of Finance.

2. Plan formulation:

Annually, based on the technical condition of the maritime channel systems and lighthouse systems under their management and the revenue collection plan, the two Maritime Safety Assurance Companies shall formulate plans for providing public services to ensure maritime safety and financial plans for providing such services, which they shall submit to the Vietnam Maritime Administration. The Vietnam Maritime Administration is responsible for reviewing and consolidating these plans and reporting them to the Ministry of Transport before July 20 each year so that the Ministry of Transport can consolidate the next year's budget plan of the Ministry and submit it to the Ministry of Finance as prescribed.

2.1. Principles of plan formulation:

a) Prioritize the allocation of funds for regular maritime safety assurance work.

b) Do not develop expenditure plans exceeding the total expected revenue from maritime safety fees in the planning year.

2.2. Basis for plan formulation includes:

a) Volume of public service provision.

b) Technical procedures for repair, upgrading, maintenance, and service of public services to ensure maritime safety, as well as economic and technical norms issued by the Ministry of Transport and competent authorities.

3. Allocation of plans for providing public services to ensure maritime safety:

The Ministry of Transport allocates plans for providing public services and financial plans for the operation of public service provision to the two Maritime Safety Assurance Companies after obtaining written agreement from the Ministry of Finance. The allocation of plans to the companies must be completed before December 31 of the previous year.

4. Content of plan allocation: Includes two parts:

4.1. Plan for providing public services:

a) Name of public service;

b) Volume;

c) Quality;

4.2. Financial plan:

d) Implementation time.

a) Revenue from providing public services;

b) Costs of providing public services, including: Regular costs and irregular costs.

c) Difference between revenue and expenditure in providing public services.

III. FINANCIAL MANAGEMENT OF THE TWO MARITIME SAFETY ASSURANCE COMPANIES:

1. The two Maritime Safety Assurance Companies are designed to consistently and stably perform their main task of providing public services to ensure maritime safety; they are provided with minimum additional capital by the state to fulfill the public service tasks assigned by the state in accordance with the law. The two Maritime Safety Assurance Companies must concentrate their capital and resources to perform maritime safety assurance tasks.

When necessary, the Ministry of Transport has the right to reallocate capital and assets among companies performing public service tasks through capital increase or decrease methods. Such reallocation shall not affect the provision of public services by the Maritime Safety Assurance Companies being reallocated.

1. Two Marine Safety Assurance Companies are designed to regularly and stably perform their primary tasks of providing public maritime safety services; they shall be supplemented with a minimum capital investment by the State to fulfill the public service tasks assigned by the State in accordance with the law. The two Marine Safety Assurance Companies must concentrate their capital and resources to carry out maritime safety assurance tasks.

When necessary, the Ministry of Transport has the authority to mobilize capital and assets between companies performing public service tasks in the form of increased or decreased capital. Such mobilization shall not affect the provision of public services by the two Marine Safety Assurance Companies being mobilized.

2. The transfer, liquidation of assets directly serving public interest tasks must be with the agreement of the Ministry of Transport. Investment of capital outside the company must be submitted to the Ministry of Transport for decision.

3. Management of revenue and expenses from the provision of public service activities ensuring maritime safety:

3.1. Revenue from providing public service activities ensuring maritime safety: is the revenue obtained from annual maritime safety fees and other revenues generated from public service activities ensuring maritime safety.

3.2. Expenses of maritime public service activities: Are business operation costs as prescribed in Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations of State-owned Enterprises and the Management of State Capital Invested in Other Enterprises to implement regular maritime safety work and non-regular maritime safety work.

4. Profit distribution:

Profits from the provision of public service activities ensuring maritime safety are not subject to corporate income tax.

Profit distribution shall be carried out according to current regulations. The portion of profit distributed according to state investment capital is used for reinvestment to supplement state capital for the two Maritime Safety Assurance Companies. In cases where, after setting aside funds as prescribed, the Maritime Safety Company does not have enough to set aside bonus and welfare funds at the level of two months' actual salary, the following measures will be taken:

4.1. In cases where profits are insufficient to establish funds, the company may reduce the amount allocated to the development fund, reduce the portion of profit distributed according to state investment capital to ensure two months' salary for the two funds. If reducing the entire amount above still does not suffice for two months' salary for the two funds, the State will consider providing assistance.

4.2. In cases where there is no profit, the State will provide sufficient assistance to establish bonus and welfare funds at the level of two months' salary.

5. In addition to the provisions mentioned above, the management of other capital and assets and other financial regulations, the two Maritime Safety Assurance Companies shall implement them according to the regulations applicable to state-owned enterprises engaged in business operations.

IV. ACCEPTANCE AND SETTLEMENT OF QUANTITY

PROVIDING PUBLIC SERVICES ENSURING MARITIME SAFETY:

1. Acceptance of quantity provided for public services:

1.1. Basis for acceptance:

a) Quantity of public service completed within the assigned plan;

b) Technical design, budget estimate, and total budget estimate approved by the competent authority (if any);

c) Decision of the competent authority approving the tender results according to current regulations (if any);

d) Quotas, unit prices, and acceptance regulations and procedures issued by the Ministry of Transport and relevant state authorities;

e) Other related documents concerning the provision of public services.

1.2. Acceptance record: The acceptance record must reflect the contents as stipulated in the assigned public service supply plan.

1.3. Acceptance body: The Ministry of Transport (or delegated to the Vietnam Maritime Administration) organizes the acceptance of public service supply activities ensuring maritime safety.

2. Financial reports:

Quarterly and annually, the two Maritime Safety Assurance Companies prepare financial settlement reports to submit to the Vietnam Maritime Administration, the Ministry of Transport, and the Ministry of Finance according to the timeframes specified in current regulations.

The General Directors of the two Maritime Safety Assurance Companies are responsible for implementing financial regulations as stipulated in Clause 8, Article 34 of Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations of State-owned Enterprises and the Management of State Capital Invested in Other Enterprises.

Annually, the two Maritime Safety Assurance Companies conduct independent audits on their annual financial reports as required. The two Maritime Safety Assurance Companies are subject to inspection, examination, and supervision by financial agencies regarding financial management according to the law.

3. The Ministry of Transport shall take the lead in coordinating with the Ministry of Finance and the Vietnam Maritime Administration to inspect and settle public service activities ensuring maritime safety. Payment for public services shall only be made upon receipt of the acceptance record from the competent authority.

In cases where emergency traffic restoration is required due to natural disasters, typhoons, floods, or accidents caused by objective reasons outside the planned tasks, the two Maritime Safety Assurance Companies must prepare records confirming the extent of damage restored (with confirmation from the maritime port authority), compile, and report to the Vietnam Maritime Administration and the Ministry of Transport to record and settle in the following year's plan.

Expenditures exceeding quotas, unplanned expenditures, and expenditures not in accordance with regulations must be accounted for; simultaneously, the person who orders incorrect expenditures must compensate and bear responsibility according to the law.

V. IMPLEMENTATION ORGANIZATION:

1. In addition to the provisions stipulated in this Circular, the two Maritime Safety Assurance Companies must also comply with other legal regulations applicable to state-owned enterprises.

2. This Circular takes effect fifteen days after its publication in the Official Gazette. This Circular replaces Joint Circular No. 56/1998/TTLT-BTC-GTVT dated April 23, 1998 of the Ministry of Finance and the Ministry of Transport guiding the financial management system for state-owned enterprises engaged in public service activities ensuring Vietnam's maritime safety.

3. During implementation, if there are difficulties, the two Maritime Safety Assurance Companies and related units are requested to compile and report to the Ministry of Finance for research and appropriate amendments and supplements./.