Joint Circular No. 55/2014/TTLT-BTC-BGTVT guiding the financial management mechanism for the Vietnam Vehicle Registration Agency

JOINT CIRCULAR

Hguiding financial management mechanisms for Cục 3. Amend Clause 3 Article 2 as follows:Inspection Vstrict N |||at s

________________

Pursuant to Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 57/2002/ND-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on fees and charges; Decree No. 24/2006/ND-CP dated March 6, 2006 of the Government amending and supplementing some articles of Decree No. 57/2002/ND-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on fees and charges;

Pursuant to Decree No. 71/2013/ND-CP dated July 11, 2013 of the Government on investment of state capital in enterprises and financial management for state-owned enterprises holding 100% of charter capital;

Pursuant to Decree No. 99/2012/ND-CP dated November 15, 2012 of the Government on the delegation and decentralization of the rights, responsibilities, and obligations of state owners towards enterprises and state capital invested in enterprises;

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;

The Ministers of the Ministry of Public Security, the Ministry of National Defense, and the Ministry of Transportation hereby issue this consolidated joint circular

Pursuant to Decision No. 67/2013/QD-TTg dated November 12, 2013 of the Prime Minister on the financial mechanism of the Vietnam Vehicle Inspection Agency.

The Minister of Finance and the Minister of Transport jointly issue this Circular guiding the financial management mechanism for the Vietnam Vehicle Inspection Agency as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular stipulates the financial management mechanism applicable to the Vietnam Vehicle Inspection Agency and its subordinate units.

Article 2. Administrative and service expenses that are allocated from the State Budget to the Vietnam Vehicle Inspection Agency shall be managed, recorded, and settled separately according to the provisions of the State Budget Law, and shall not apply the provisions of this Circular.

Chapter II

SPECIFIC PROVISIONS

I. MANAGEMENT AND USE OF CAPITAL AND ASSETS

Article 2. Operating Capital and Preservation of Capital at the Vietnam Vehicle Inspection Agency

Clause 1. The operating capital of the Vietnam Vehicle Inspection Agency includes: State capital invested in the Vietnam Vehicle Inspection Agency and other sources of capital as prescribed by law.

Clause 2. State capital invested in the Vietnam Vehicle Inspection Agency includes: Capital provided by the State when establishing the Vietnam Vehicle Inspection Agency and throughout its operation; capital received from other places transferred according to the decision of the competent authority; value of grants, gifts, unclaimed property; capital supplemented from post-tax profits; value of land use rights and other items included in state capital according to the provisions of law.

Clause 3. Preservation of Capital:

The Vietnam Vehicle Inspection Agency has the responsibility to preserve and develop state capital invested in the Vietnam Vehicle Inspection Agency. Every six months and annually, the Vietnam Vehicle Inspection Agency must evaluate the effectiveness of capital usage according to regulations. In case of capital fluctuations, the Vietnam Vehicle Inspection Agency has the responsibility to report to the Ministry of Transport and the Ministry of Finance for monitoring and supervision.

Point a. Preservation of Capital:

Based on the profit and loss indicators of the Vietnam Vehicle Inspection Agency according to quarterly and annual financial reports to assess the degree of capital preservation.

For cases with profit or no loss, the degree of capital preservation is determined according to the coefficient H:

Where:

- The capital stock to determine the degree of capital preservation includes the owner's investment capital (code 411), development fund (code 417), basic construction capital (code 421) on the Balance Sheet according to the quarterly or annual Financial Report (Form B 01-DN issued together with Decision No. 15/2006/QD-BTC dated March 20, 2006 of the Minister of Finance and any subsequent amendments, supplements, or replacements).

- When determining the capital preservation coefficient according to the above provisions, the Vietnam Vehicle Inspection Agency must exclude external factors affecting capital changes during the reporting period such as additional state capital invested in the Vietnam Vehicle Inspection Agency, state capital transferred from other places.

Method of evaluating the degree of capital preservation: if the coefficient H = 1, the Vietnam Vehicle Inspection Agency preserves the capital, and if the coefficient H > 1, the Vietnam Vehicle Inspection Agency develops the capital.

Point b. In cases where the Vietnam Vehicle Inspection Agency fails to preserve capital (total revenue is less than total expenditure), the Director of the Vietnam Vehicle Inspection Agency must submit a report explaining the reasons and measures to improve the situation in the future to the Ministry of Transport, the Ministry of Finance, and bear responsibility for the financial status of the Vietnam Vehicle Inspection Agency.

Point c. The Vietnam Vehicle Inspection Agency has the responsibility to preserve capital through the following measures:

- Implementing the regulations on the management and use of capital and assets, profit distribution, and other financial management and accounting systems as prescribed by law.

- Purchasing insurance for assets according to the provisions of law.

- Promptly handling the value of lost assets, unrecoverable debts, and setting aside risk reserves as prescribed.

- Other measures for preserving capital and state assets as prescribed by law.

Article 3. Management of receivables and payables

1. Management of receivables

a) Responsibilities of the Vietnam Vehicle Inspection Center

- Establishing and promulgating regulations on the management of receivables, assigning and clearly defining the responsibilities of collectives and individuals in tracking, recovering, and settling debts;

- Maintaining ledgers to track receivables by debtor category; regularly classifying receivables (current receivables, difficult-to-collect receivables, unrecoverable receivables), and urging their recovery.

- Detailed tracking must be conducted for each type of foreign currency for receivables denominated in foreign currencies; at the end of the period, re-evaluating and handling exchange rate differences according to regulations.

- The Director of the Vietnam Vehicle Inspection Center and the Directors of subordinate units have the responsibility to promptly handle difficult-to-collect receivables and unrecoverable receivables. If they fail to promptly handle unrecoverable receivables as stipulated herein, the Director of the Vietnam Vehicle Inspection Center or the Director of the relevant subordinate unit will be relieved of their positions as if they had reported financial situations of the unit inaccurately from two times or more. If failure to promptly handle leads to loss of state investment capital at the Vietnam Vehicle Inspection Center, the Director of the Vietnam Vehicle Inspection Center and the Directors of subordinate units must bear responsibility before the Ministry of Transport and under the law.

- Difficult-to-collect receivables are receivables overdue for payment for over six months (based on the original repayment term, excluding extended repayment periods), where the Vietnam Vehicle Inspection Center has applied measures such as reconciliation and urging payment but still cannot recover; or receivables not yet due for payment but the debtor is an economic organization that has entered bankruptcy, is undergoing dissolution procedures, the debtor is missing, absconded, is being prosecuted, detained, tried, or executed, or has died. The Vietnam Vehicle Inspection Center is responsible for setting aside provisions for difficult-to-collect receivables according to the regulations of the Ministry of Finance.

- Unrecoverable receivables, the Vietnam Vehicle Inspection Center is responsible for compensating related individuals and collectives, with the remainder covered by the provision for difficult-to-collect receivables. If there is still a shortfall, it shall be recorded as operating expenses of the Vietnam Vehicle Inspection Center.

After handling as above, the Vietnam Vehicle Inspection Center must continue to monitor unrecovered receivables outside the balance sheet and organize their recovery. Recovered amounts shall be recorded as income of the Vietnam Vehicle Inspection Center.

b) Rights of the Vietnam Vehicle Inspection Center

The Vietnam Vehicle Inspection Center has the right to sell overdue receivables, difficult-to-collect receivables, and uncollectible receivables to recover capital. Sales can only be made to economic organizations with the function of buying and selling debts, and direct sales to debtors are prohibited. Sale prices are agreed upon by the parties involved and they are responsible for the decision to sell receivables. In cases where selling debts results in losses, capital loss, or loss of solvency leading to financial imbalance, the Director of the Vietnam Vehicle Inspection Center and those directly related to the generation of receivables must compensate according to the law.

2. Management of Payables

a) Maintaining complete ledgers for all payables including interest payable;

b) Settling payables strictly according to the committed deadlines. Regularly reviewing, evaluating, and analyzing the ability to settle debts of the Center, early identifying difficulties in debt settlement to promptly address them and prevent the occurrence of overdue payables. Payables that do not need to be paid or have no payee shall be recorded as income of the Vietnam Vehicle Inspection Center.

Article 4. Investment, Construction, and Procurement of Fixed Assets

1. The Vietnam Vehicle Inspection Agency must develop plans for investment projects over five years to be submitted to the Ministry of Transport for approval.

2. The Director of the Vietnam Vehicle Inspection Agency decides on procurement of assets and investment and construction projects with values not exceeding 30% of the owner's equity (codes 411 + 417 + 421) recorded in the most recent published Financial Report of the Agency, but not exceeding the highest limit of Class B projects as stipulated by the Law on Project Management for Investment and Construction.

3. For procurement of assets or investment and construction projects exceeding the limits set forth in Clause 2 of this Article, the Vietnam Vehicle Inspection Agency shall have the responsibility to submit such matters for approval in writing by the Ministry of Transport or competent authority.

4. The procedures for investment implementation shall be carried out according to the provisions of the Law on Project Management for Investment and Construction.

5. The Director of the Vietnam Vehicle Inspection Agency may decide on the internal reallocation of assets within subordinate units of the Vietnam Vehicle Inspection Agency. However, for assets that are office premises, prior written approval from the Ministry of Transport is required before such reallocation can take place.

Article 5. Depreciation of Fixed Assets

Current fixed assets of the Vietnam Vehicle Inspection Agency shall be managed, utilized, and depreciated in accordance with regulations issued by the Ministry of Finance.

Article 6. Liquidation and Sale of Fixed Assets

1. The Vietnam Vehicle Inspection Agency may sell or liquidate fixed assets that are damaged, obsolete, unnecessary, or unusable to recover capital on the principle of transparency and asset preservation.

2. Authority to Decide on Liquidation and Sale of Fixed Assets:

a) Assets directly serving the provision of public services by the Vietnam Vehicle Inspection Agency (workshops, inspection and testing equipment, certification lines, etc.) when sold or liquidated must be approved in writing by the Ministry of Transport. The Ministry of Transport will consider delegating authority to the Vietnam Vehicle Inspection Agency to independently liquidate certain assets in specific cases.

b) For other assets, the Director of the Vietnam Vehicle Inspection Agency may decide on plans for liquidation and sale of fixed assets with remaining values under 50% of the owner's equity recorded in the most recent published Financial Report of the Vietnam Vehicle Inspection Agency. For plans involving fixed assets with higher values than the aforementioned classification level, the Director of the Vietnam Vehicle Inspection Agency must report to the Ministry of Transport for decision-making.

3. In cases where the plan for selling fixed assets of the Vietnam Vehicle Inspection Agency cannot recover sufficient capital, the Vietnam Vehicle Inspection Agency must clearly explain the reasons and report to the Ministry of Transport and the Ministry of Finance before selling the fixed assets to ensure supervision.

4. Specifically, if newly invested fixed assets fail to generate economic benefits as initially approved, and the Vietnam Vehicle Inspection Agency has no need to continue using them, and the sale of these assets cannot recover sufficient investment capital leading to the inability to repay loans according to loan agreements, then the responsibilities of those involved must be clarified and reported to the Ministry of Transport for handling in accordance with the law.

5. Methods for Liquidation and Sale of Fixed Assets: The sale of fixed assets shall be conducted through public auction via an organization authorized to conduct asset auctions or by the unit itself following the prescribed procedures and formalities under the Law on Asset Auctions. If the remaining value of the fixed assets recorded in the accounting books is less than 100 million VND, the Director of the Vietnam Vehicle Inspection Agency may choose to sell through public auction or negotiation, but not below market price. If there is no market transaction for the fixed assets, the Vietnam Vehicle Inspection Agency may hire an organization authorized to appraise prices to determine the basis for selling the assets through the above methods.

6. Procedures for Liquidation of Fixed Assets shall be implemented in accordance with regulations issued by the Ministry of Finance.

Article 7. Inventory of Assets

1. The Vietnam Vehicle Inspection Agency must organize regular or sudden inventory to determine the quantity of assets (fixed assets and long-term investments, current assets and short-term investments), reconcile accounts receivable and payable when closing the accounting books to prepare the annual financial report; when implementing decisions on division, separation, merger, consolidation, ownership transfer; after natural disasters or enemy attacks; or for any other reasons causing asset fluctuations within the unit; or according to the State's policy. For excess or missing assets, uncollectible debts, overdue debts, the causes, responsibilities of those involved, and the level of material compensation must be clearly determined according to regulations.

2. Inventory processing:

a) Handling loss of assets after inventory

Asset losses are assets that are lost, missing, damaged, deteriorated, out of fashion, technologically obsolete, and stagnant in regular and sudden inventories. The Vietnam Vehicle Inspection Agency must determine the value of the loss, the cause, responsibility, and handle it as follows:

- If due to subjective reasons, the person causing the loss must compensate according to the law. The Director of the Vietnam Vehicle Inspection Agency decides on the level of compensation according to the law and bears responsibility for their decision.

- Insured assets, if there is a loss, will be handled according to the insurance contract.

- The value of the asset loss, after being compensated with personal or collective money, or insurance organization money, if still insufficient, the shortfall will be recorded as production and business expenses for the period.

- In special cases caused by natural disasters or force majeure resulting in serious damage, which the Vietnam Vehicle Inspection Agency cannot overcome, the Director of the Vietnam Vehicle Inspection Agency will develop a plan to handle the loss and submit it to the Ministry of Transport and the Ministry of Finance. After receiving the opinion of the Ministry of Finance, the Ministry of Transport will decide on handling the loss within its authority.

- The Vietnam Vehicle Inspection Agency has the responsibility to promptly handle asset losses. If asset losses are not handled, the Director of the Vietnam Vehicle Inspection Agency will bear responsibility before the Ministry of Transport as in the case of reporting inaccurate financial conditions of the enterprise.

b) Excess assets after inventory are the differences between the actual number of assets inventoried and the number recorded in the accounting books, the value of excess assets from the inventory will be recorded as income of the enterprise.

Article 8. Revaluation of Assets

1. The Vietnam Vehicle Inspection Agency implements revaluation of assets according to the decision of the competent state agency.

2. The revaluation of assets must comply with the provisions of the State. Any increases or decreases in value due to revaluation of assets shall be handled according to the current regulations of the State for each specific case.

II. REVENUE, EXPENSES AND OPERATING RESULTS

Article 9. Revenue and Other Income

1. The revenue of the Vietnam Vehicle Inspection Agency includes service provision revenue and financial activity revenue, including:

a) Service provision revenue is the total amount of money receivable generated during the period from the provision of services by the Vietnam Vehicle Inspection Agency, including:

- Vehicle inspection activity revenue, including: Approval, review of design of vehicles and equipment in the transport sector before new construction or modification; safety technical inspection and environmental protection testing of vehicles and equipment in the transport sector; evaluation of safety management systems, security systems, and security plans for Vietnamese ships according to the International Safety Management Code (ISM Code) and the International Ship and Port Facility Security Code (ISPS); inspection and assessment of seafarer labor according to the Maritime Labor Convention 2006 (MLC 2006); evaluation and issuance of quality management system certification and environmental protection certification according to the requirements of organizations and enterprises under the law; technical condition appraisal of transport vehicles and equipment and offshore exploration, exploitation, and transportation equipment according to the requirements of state agencies or vehicle owners; cooperation with foreign inspection organizations in mutual inspection according to agreements and other inspection activities as prescribed by the state.

- Other revenues related to inspection activities such as: Training of inspectors, issuing the Inspection Magazine, issuing stamp templates and registers uniformly for inspection units throughout the industry; collecting fees for certificate issuance and road usage fees based on the number of vehicles according to the law.

- Revenue from non-public welfare service activities, including: acting as an agent for selling insurance for motor vehicles, consulting, scientific and technological services related to the safety technology of transport vehicles and equipment, and other revenues as prescribed by law.

b) Financial activity revenue: Interest from bank deposits, interest from foreign exchange rate differences according to current regulations.

2. Other income includes revenues from the liquidation and sale of fixed assets, insurance compensation payments, increased income from debts owed but now lost, fines from customers for breach of contract, and other revenues as prescribed by law.

Article 10. Costs

The costs of the Vietnam Vehicle Inspection Agency include all expenses arising from its activities in the fiscal year, including service provision costs, financial activity costs, and other costs.

1. Service provision costs:

a) Inspection activity costs, including:

- Raw material, fuel, power, semi-finished product, and external service purchase costs (based on actual consumption and original cost), tool and equipment labor costs, fixed asset repair costs, and pre-funded major fixed asset repair costs.

- Depreciation costs of fixed assets as stipulated in Article 5 of this Circular;

- Wages, salaries, and wage-like payments to employees according to current state regulations;

- Social insurance premiums, trade union fees, health insurance, unemployment insurance for employees that the Vietnam Vehicle Inspection Agency must pay according to regulations;

- Transaction, brokerage, hospitality, marketing, trade promotion, advertising, meeting costs based on actual expenses incurred and the Enterprise Income Tax Law provisions;

- Other monetary costs as prescribed, including resource taxes, land taxes, business license fees, etc.; land rental fees; severance pay, unemployment benefits for employees; training costs to enhance management capabilities and skills of employees; medical work costs as prescribed; innovation award, productivity increase award, material savings award, and other cost-saving awards. The award amount is decided by the Director of the Vietnam Vehicle Inspection Agency based on the effectiveness of the work but shall not exceed the cost savings generated by such work within one year; female employee costs; environmental protection costs; meal costs for employees; Party and mass organization work costs at the Vietnam Vehicle Inspection Agency (the portion outside the funding provided by the Party and mass organizations) and other monetary costs.

- Actual value of lost property, unrecoverable receivables as stipulated in Articles 3 and 7 of this Circular.

- Value of inventory write-downs, doubtful debt provisions, and foreign exchange rate differences on long-term foreign currency loans, pre-funded warranty costs, and provisions as prescribed by law for businesses operating in special sectors.

b) Costs of other activities related to inspection activities:

- Instructor rental costs as prescribed and related training organization costs, editing, royalties, printing costs related to magazine publication, printing of forms, stamps, books for distribution to inspection units as prescribed;

- Costs related to vehicle inspection certificate fee collection and road usage fee collection for motor vehicles based on vehicle type.

c) Costs for non-public welfare inspection service activities, including:

- Salaries for individuals directly involved in service activities according to regulations;

- Raw materials, supplies, office supplies, tools, and equipment costs;

- Fixed asset depreciation costs as prescribed;

- Travel expenses according to regulations;

- Fixed asset rental costs (if applicable);

- Allocation costs for non-public welfare inspection service activities, including premises rental, workplace location costs, electricity, water, telephone, fax, internet, book, magazine, and public service costs.

- Other monetary costs as prescribed.

2. Financial activity costs, including interest, foreign exchange rate differences, payment discount costs, and other financial costs as prescribed;

3. Other costs, including fixed asset disposal and liquidation costs (including residual values when disposed of or sold); shortages found after inventory checks (after deducting the responsibility of related collectives and individuals); costs for recovering written-off debts; penalty costs due to contract violations; other costs as prescribed by law.

4. The following items shall not be included in production and business costs if they have alternative sources of funding or are unrelated to production and business activities:

a) Purchase and installation costs of tangible and intangible fixed assets;

b) Interest costs of borrowed funds included in investment and construction costs;

c) Other costs unrelated to the activities of the Vietnam Vehicle Inspection Agency; costs without valid documentation;

d) Penalties for legal violations not in the name of the Vietnam Vehicle Inspection Agency but caused by individuals.

Article 11. Management of Costs

The Vietnam Vehicle Inspection Agency must strictly manage all cost items to reduce costs and increase profits through the following management measures:

1. Establishing, promulgating, and implementing appropriate economic and technical norms in accordance with the economic and technical characteristics, organizational management model, and equipment level of the Vietnam Vehicle Inspection Agency. These norms must be disseminated to the implementers and publicly announced to all staff members of the Vietnam Vehicle Inspection Agency for implementation and supervision.

In cases where the norms cannot be implemented, leading to increased costs, the causes and responsibilities must be clearly analyzed and handled according to the provisions of the law. If it is due to subjective reasons, compensation for losses must be provided. The authority to decide on the amount of compensation is stipulated in Clause 2, Article 7 of this Circular.

2. Regularly organize cost analysis to identify weak and poor management stages, factors increasing costs, and timely solutions to address them.

3. In cases where the volume of work increases, leading to costs exceeding the financial plan by more than 15%, the Vietnam Vehicle Inspection Agency must report to the Ministry of Transport for consideration and seek opinions from the Ministry of Finance before adjusting the budget.

Article 12. Realized Profit

The realized profit of the Vietnam Vehicle Inspection Agency in a year is the difference between the total revenue realized in that year as stated in Article 9 and the total costs incurred in that year as stated in Article 10 of this Circular.

III. DISTRIBUTION OF PROFITS

Article 13. Distribution of Profits

After covering previous years' losses according to the Enterprise Income Tax Law, setting aside funds for scientific and technological development as required by law, and paying enterprise income tax, the remaining profit of the Vietnam Vehicle Inspection Agency shall be distributed as follows:

1. Covering the losses of previous years that have exceeded the period allowed for deduction from pre-tax profit.

2. The remaining profit after deducting the contents specified in Clause 1 of this Article shall be distributed as follows:

a) Allocating 30% to the Development Investment Fund.

b) Establishing two reward and welfare funds based on criteria evaluating the unit's performance results for the year, specifically as follows:

- Allocating up to three months' actual salary to the two reward and welfare funds when the following conditions are met:

+ Revenue and other income increase compared to the plan, with vehicle inspection public service revenue assigned by the Ministry of Transport being completed beyond the target by 3% or more;

+ The actual profit margin on equity exceeds the planned target;

+ There is no overdue debt and the ability to pay maturing debts is greater than 1;

+ There is no violation of current laws;

+ Ensuring the quality of public service provision.

In cases where the Vietnam Vehicle Inspection Agency fails to meet one of the above criteria, the maximum allocation to the reward and welfare funds is limited to 1.5 months' actual salary.

- Allocating up to 1.5 months' actual salary to the two reward and welfare funds when the following conditions are met:

+ Revenue and other income increase compared to the plan, with vehicle inspection public service revenue assigned by the Ministry of Transport being completed but below 3% of the planned target;

+ The actual profit margin on equity equals the planned target;

+ There is no overdue debt and the ability to pay maturing debts ranges from 0.5 to 1;

+ There is a conclusion from the competent authority regarding violations of current laws but not at a level requiring administrative penalties;

+ Ensuring the quality of public service provision.

- Allocating up to one month's actual salary for other cases.

c) In cases where the realized profit is insufficient to allocate to the two reward and welfare funds as stipulated in Clause 2 of this Article, the portion allocated to the development investment fund can be reduced to supplement the reward and welfare funds, but the reduction cannot exceed the amount allocated to the development investment fund in the fiscal year.

d) The remaining profit after establishing the funds as stipulated in Subparagraphs a and b of Clause 2 of this Article shall be added to the Development Investment Fund of the Vietnam Vehicle Inspection Agency to support investment in projects related to inspection activities approved by authorized authorities.

Article 14. Purposes of using funds

1. Science and Technology Development Fund: The establishment, management, and settlement of fund usage shall be carried out in accordance with current State regulations.

2. Investment Development Fund: It is used for investment to form fixed assets and to supplement State capital at the Vietnam Vehicle Inspection Agency and shall be managed, utilized, and settled according to current State regulations.

3. The incentive fund shall be used for:

a) Year-end or regular bonuses based on labor productivity and work achievements of each staff member within the Vietnam Vehicle Inspection Agency;

b) Special bonuses for individuals and groups within the unit;

c) Bonuses for individuals and units outside the Vietnam Vehicle Inspection Agency that have made significant contributions to the unit's business operations and management tasks;

The bonus levels specified in points a, b, and c of this clause shall be decided by the Director of the Vietnam Vehicle Inspection Agency. For point a, the opinion of the unit's trade union must be sought before making the decision.

4. The welfare fund shall be used for:

a) To invest in constructing or repairing welfare facilities of the Vietnam Vehicle Inspection Agency;

b) To spend on welfare activities for the collective workforce within the unit;

c) To contribute part of the capital to invest in constructing common welfare facilities within the industry or with other units according to contracts;

d) Additionally, a portion of the welfare fund may be used to provide emergency assistance to workers, including retirees, those who are physically exhausted, or those in difficult circumstances without support, or for charitable social work.

The use of the welfare fund shall be decided by the Director or the Unit Manager after consulting the opinion of the unit's trade union.

5. The surplus of the Financial Reserve Fund up to December 31, 2013, shall be supplemented into the Investment Development Fund of the Vietnam Vehicle Inspection Agency.

6. The establishment and use of the aforementioned funds must be approved by the Ministry of Transport and implemented publicly in accordance with financial transparency regulations, grassroots democracy regulations, and State regulations.

7. The Vietnam Vehicle Inspection Agency can only allocate funds for awards and welfare after settling all debts and other financial obligations due.

IV. FINANCIAL PLAN, ACCOUNTING SYSTEM, STATISTICS AND AUDIT

Article 15. Financial Plan, Accounting System

1. Financial Plan:

a) Based on the implementation of the financial plan in the year and the plan to carry out tasks in the following year, the Vietnam Vehicle Inspection Agency is responsible for building a suitable financial plan for the next year in line with the actual situation of the unit and submitting it to the Ministry of Transport and the Ministry of Finance before November 15th each year (Model of the Vietnam Vehicle Inspection Agency's Financial Plan according to Appendix 01 of this Circular).

b) Within seven working days from receiving the financial plan, the Ministry of Transport will send its comments to the Ministry of Finance. Within seven working days from receiving the request letter from the Ministry of Transport, the Ministry of Finance will send its comments in writing to the Ministry of Transport.

c) After receiving the comments from the Ministry of Finance, within seven working days, the Ministry of Transport will assign the financial plan to the Vietnam Vehicle Inspection Agency according to Appendix 02 of this Circular. The financial plan will be sent simultaneously to the Ministry of Finance for monitoring and supervision.

d) After being assigned the financial plan, within seven working days, the Vietnam Vehicle Inspection Agency will organize the annual financial plan assignment to subordinate units.

The financial plan above shall be sent directly or via postal service. The Ministry of Transport and the Vietnam Vehicle Inspection Agency must complete the assignment of the next year's financial plan before December 31st each year.

2. Accounting System:

The Vietnam Vehicle Inspection Agency shall apply the accounting system of enterprises, accounting standards, and other current legal documents regarding accounting.

The Vietnam Vehicle Inspection Agency is an independent accounting entity; it centrally manages all sources of capital and funds at the agency level. Subordinate units of the Vietnam Vehicle Inspection Agency are dependent accounting entities.

Article 16. Financial Reports

1. At the end of each accounting quarter and year, the Vietnam Vehicle Inspection Agency must prepare, present, and submit financial reports and statistical reports in accordance with the provisions of the law. The Director of the Vietnam Vehicle Inspection Agency shall be responsible for the accuracy and truthfulness of these reports.

The annual financial report of the Vietnam Vehicle Inspection Agency must be audited by an independent auditing organization legally operating in Vietnam that has auditing functions.

2. The Vietnam Vehicle Inspection Agency shall be responsible for preparing and submitting the following reports:

a) Preparing the following reports:

- Quarterly and annual financial reports (as stipulated in Decision No. 15/2006/QD-BTC dated March 20, 2006 of the Minister of Finance) and supplemented with Model Form 2b-DN "Payments to the State Budget" as provided in Appendix 03 of this Circular;

- Report on the implementation of the financial plan according to Appendix 04 of this Circular;

- Public financial situation report in accordance with the regulations of the Ministry of Finance;

- Report on profit distribution after tax according to Appendix 05 of this Circular;

- Settlement report on salaries according to Appendix 06 of this Circular.

b) Time and place of submission of reports:

The Vietnam Vehicle Inspection Agency must submit the reports mentioned in point a, Clause 2 of this Article to the Ministry of Transport, the Ministry of Finance, and the Tax Authority of Hanoi City.

The time limit for submitting the above reports is once a year at the same time as the settlement report as prescribed. The quarterly report submission period follows the current regulations.

3. The Vietnam Vehicle Inspection Agency must organize and implement accounting and statistical work in accordance with the provisions of the law.

4. The Vietnam Vehicle Inspection Agency is subject to inspection, audit, and supervision by authorized financial agencies regarding the unit's financial work in accordance with the provisions of the law.

Article 17. Accounting Inspection, Audit, and Review of Financial Reports

1. Monthly, quarterly, and annually, the Vietnam Vehicle Inspection Agency and its subordinate units are responsible for self-inspection of accounting and financial reports.

2. The Vietnam Vehicle Inspection Agency is responsible for organizing the audit of annual financial reports of its subordinate units (excluding the Agency Office) and is responsible for the results of the audit. Based on the Audit Report of the annual financial report at subordinate units and after receiving the Notification of the review of the financial report from the Ministry of Transport, the Vietnam Vehicle Inspection Agency is responsible for notifying the approval of the annual settlement report to subordinate units.

3. The Ministry of Transport takes the lead and coordinates with the Ministry of Finance:

a) To inspect the annual financial report of the Agency Office;

b) To review the annual financial report of the entire Vietnam Vehicle Inspection Agency.

4. Content of inspection and review of financial reports:

a) Content of inspection of annual financial reports:

- The inspection content includes: Management and use of capital and assets (increase, decrease in fixed assets, sources of equity capital and other fund sources); business operation results (revenue, expenses, profit); relationship with the state budget.

- The inspection will be based on the documents and materials provided by the unit including: Financial reports, Audit Report of financial reports, original documents and vouchers related to financial income and expenditure activities at the unit, other vouchers related to accounting entries and other schedules and reports related to the figures in the Financial Report.

- Review and inspect the implementation of recommendations from competent state agencies through auditing, inspection, and review of financial reports (if any).

b) Content of review of the annual financial report of the Vietnam Vehicle Inspection Agency:

- The review content includes: Management and use of capital and assets (increase, decrease in fixed assets, sources of equity capital and other fund sources); business operation results (revenue, expenses, profit); relationship with the state budget and profit distribution in accordance with the law.

- Review, inspect, and evaluate the implementation of recommendations from competent state agencies through auditing, inspection, and review of financial reports (if any).

- The review is conducted based on the Audit Report of financial reports of subordinate units and the Agency Office; reviewing, comparing, and consolidating data in the Audit Reports of subordinate units and the Agency Office with the consolidated data in the annual financial report of the Vietnam Vehicle Inspection Agency;

Upon completion of the review of the annual financial report, the Ministry of Transport leads and coordinates with the Ministry of Finance to prepare the Review Report as the basis for the Ministry of Transport to notify the review of the annual financial report of the Vietnam Vehicle Inspection Agency.

5. In addition, depending on the nature of work each year, the Ministry of Transport leads and coordinates with the Ministry of Finance to conduct specialized inspections of the Vietnam Vehicle Inspection Agency: Inspect investment procurement of assets, basic construction investment, and other inspection contents (if any). These inspection rounds will be carried out in accordance with the Decision of the authorized authority and ensure the principle of not overlapping with inspection rounds of other functional agencies such as: State Audit Office, Government Inspectorate, Ministry of Finance Inspectorate. The inspection decision will be notified to the Vietnam Vehicle Inspection Agency at least three days before the inspection.

6. When conducting the annual financial report inspection, the Ministry of Transport and the Ministry of Finance have the right to require the Vietnam Vehicle Inspection Agency:

a) To explain or provide necessary information and data for the inspection;

b) To adjust the settlement figures if there are errors and to adjust the settlement report according to the inspection results;

c) To request subordinate units to recover and pay to the state budget any expenditures contrary to regulations and other amounts payable according to regulations;

Article 18. Public Financial Reporting

Based on the annual financial report approved by the authorized agency, the Vietnam Vehicle Inspection Agency and its subordinate units shall publicly announce the report in accordance with the regulations stipulated in Circular No. 171/2013/TT-BTC dated November 20, 2013 of the Ministry of Finance guiding the public disclosure of financial information as prescribed in Decree No. 61/2013/NĐ-CP dated June 25, 2013 of the Government.

Chapter III

IMPLEMENTATION

Article 19. Implementation

This Circular takes effect from June 16, 2014, and applies to the fiscal year 2014, replacing Circular Joint No. 68/2011/TTLT-BGTVT-BTC dated December 30, 2011, issued by the Ministry of Transport and the Ministry of Finance on the financial management mechanism for the Vietnam Vehicle Inspection Agency.

Matters not addressed in this Joint Circular shall be implemented in accordance with the provisions of Government Decree No. 71/2013/NĐ-CP dated July 11, 2013, on state capital investment in enterprises and financial management of enterprises wholly owned by the state, and Circular No. 220/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance guiding the implementation of certain articles of Government Decree No. 71/2013/NĐ-CP.

During the implementation process, if there are difficulties or obstacles, the Vietnam Vehicle Inspection Agency is requested to promptly report to the Ministry of Finance and the Ministry of Transport for guidance./.