Circular No. 54/2016/TT-BTC on the management and use of interest from loans from the National Employment Fund

CIRCULAR

Regulations on the management and use of interest from loans from the National Employment Fund
National Employment Fund

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

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 61/2015/NĐ-CP dated September 7 2015 of the Government on employment support policies and the National Employment Fund (hereinafter referred to as Decree No. 61/2015/NĐ-CP);

At the proposal of the Director of the Department of Administrative Financial Affairs;

The Minister of Finance issues this Circular regulating the management and use of interest from loans from the National Employment Fund

Article 1. Scope of Regulation

Article 1. This Circular regulates the management and use of interest from loans from the National Employment Fund.

Article 2. This Circular does not apply to interest from loans from the Vietnam Bank for Social Policies' capital mobilized for job creation loans subsidized by the State for interest rate differential.

Article 2. Applicability

1. The Vietnam Bank for Social Policies.

2. Agencies, units, organizations, and individuals related to the management and use of interest from loans from the National Employment Fund.

Article 3. Management and use of interest from loans from the National Employment Fund

Clause 1. The Vietnam Bank for Social Policies manages and records the interest income received from lending the National Employment Fund into the bank's revenue (interest income account). Implement the establishment of the Reserve Fund and other expenses of the Vietnam Bank for Social Policies according to Decision No. 180/2002/QĐ-TTg dated December 19, 2002 of the Prime Minister and guidance documents of the Ministry of Finance.

Clause 2. Based on the amount of interest received, the Vietnam Bank for Social Policies shall allocate funds for management, inspection, supervision work, and supplementing the National Employment Fund's capital as follows:

Point a. Allocate funds for management, consolidation, inspection, and supervision work of the Department of Labor, Invalids, and Social Affairs:

- Allocate 0.3% of the interest received to support the management, consolidation, inspection, and supervision costs of the Ministry of Labor, Invalids, and Social Affairs. Quarterly, before the 30th day of the first month of each quarter, the Vietnam Bank for Social Policies reports and transfers the allocated interest of the previous quarter to the Ministry of Labor, Invalids, and Social Affairs;

- Allocate 15% of the interest received to cover the management, consolidation, inspection, and supervision costs of the local Department of Labor, Invalids, and Social Affairs. Based on the projected interest income, loan disbursement plan, job creation, inspection, supervision, and evaluation plans at the district and provincial levels, the Department of Labor, Invalids, and Social Affairs submits to the Chairman of the People's Committee of the province or centrally-administered city for deciding the allocation ratio for the Department of Labor, Invalids, and Social Affairs and its branches. Quarterly, before the 20th day of the first month of each quarter, the branch of the Vietnam Bank for Social Policies transfers the allocated interest of the previous quarter to the relevant Departments of Labor, Invalids, and Social Affairs based on the results of interest collection and the allocation ratio decided by the People's Committee of the province or centrally-administered city;

Point b. Allocate 10% of the interest received to supplement the National Employment Fund's capital. Annually, every six months, the Vietnam Bank for Social Policies reports the results of the interest allocated to supplement the National Employment Fund to the Ministry of Labor, Invalids, and Social Affairs, the Ministry of Finance, and the Ministry of Planning and Investment by July 31 each year and January 30 of the following year for monitoring and management.

Article 4. The content and expenditure levels for management, consolidation, inspection, and supervision work of the Department of Labor - Invalids and Social Affairs as stipulated in Point a, Clause 2, Article 3 of this Circular

1. Expenditure for training meetings; mid-term and final reviews of lending activities to solve employment issues; inspection, supervision, evaluation of new job creation targets, activities serving the management of the National Employment Fund, and reporting on lending results. The content and expenditure levels shall be implemented in accordance with Circular No. 97/2010/TT-BTC dated July 6, 2010, issued by the Ministry of Finance, which stipulates the travel expenses and expenditure regulations for organizing meetings for state agencies and public service units.

2. Expenditure for purchasing and repairing assets serving the management of the National Employment Fund shall be carried out in accordance with current laws on bidding.

3. Expenditure for surveys and investigations related to lending for job creation, maintaining, and expanding employment. The content and expenditure levels shall be implemented in accordance with Circular No. 58/2011/TT-BTC dated May 11, 2011, issued by the Ministry of Finance, which stipulates the management, utilization, and settlement of funds for statistical surveys.

4. Expenditure for disseminating and popularizing laws on lending from the National Employment Fund. The content and expenditure levels shall be implemented in accordance with Circular Joint Circular No. 14/2014/TTLT-BTC-BTP dated January 27, 2014, issued by the Ministry of Finance and the Ministry of Justice, which stipulates the preparation of budgets, management, utilization, and settlement of state budget funds to ensure the dissemination and education of laws and equitable access to the legal system for the people at the grassroots level.

5. Expenditure for rewarding collectives and individuals who have made significant achievements in managing and lending to solve employment issues (Department of Labor - Invalids and Social Affairs, Associations, Mass Organizations, Social Policy Bank); project leaders, borrowers who effectively utilize loans to create many new jobs. The expenditure level for collectives is two times the base salary per year, and for individuals, it is one time the base salary per year.

6. Other expenditures directly related to the management of lending from the National Employment Fund:

a) Stationery and communication: expenditure levels are based on valid invoices and expense receipts;

b) Overtime work: implemented in accordance with Joint Circular No. 08/2005/TTLT-BNV-BTC dated January 5, 2005, issued by the Ministry of Home Affairs and the Ministry of Finance, guiding the payment of wages for night work and overtime for civil servants and public officials;

c) Other expenditures: expenditure levels are based on valid invoices and expense receipts within the approved budget.

7. Departments of Labor - Invalids and Social Affairs allocated funds from interest income from the National Employment Fund are responsible for using the funds according to current financial expenditure regulations and the provisions of this Circular; annually consolidating and settling into their unit's other sources of funding and reporting the settlement to the same-level finance authority as prescribed. In cases where the amount deducted from interest income is insufficient for the agencies to carry out their tasks, they are permitted to use their regular operating funds to cover the expenditures as specified in this Article. At the end of the year, any remaining funds from interest income may be transferred to the next year for continued use and settlement.

Article 5. Effective Date

1. This Circular takes effect from May 5, 2016, and is applied from the 2016 fiscal year.

2. Abolish the provisions regarding the management fund of the National Employment Fund, the preparation and allocation of operational budgets for the Steering Committee implementing the National Target Program on Employment in the administrative management budget of the Departments of Labor - Invalids and Social Affairs in Clause 1, Clause 2 Section II and Clause 1, Clause 2 Section III of Circular No. 73/2008/TT-BTC dated August 1, 2008, issued by the Ministry of Finance, guiding the preparation, management, and utilization of local employment resolution funds and the management fund of the National Employment Fund.

3. In cases where the regulatory legal documents cited in this Circular are amended, supplemented, or replaced by other regulatory legal documents, the provisions of the amended, supplemented, or replacing documents shall apply.

4. During implementation, if there are difficulties, please reflect them to the Ministry of Finance for research, amendment, and supplementation to make them appropriate./.