Joint Circular No. 62/1997/TTLT/BTC-BQP of the Ministry of Finance and the Ministry of National Defense on the division of responsibilities and authorities between the Ministry of Finance and the Ministry of National Defense in managing the finances of enterprises under the Ministry of National Defense.

JOINT CIRCULAR

Joint Circular No. 62/1997/TTLT/BTC-BQP dated September 10, 1997 of the Ministry of Finance and the Ministry of National Defense on the division of responsibilities and authorities between the Ministry of Finance and the Ministry of National Defense in managing financial affairs of enterprises under the Ministry of National Defense

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Pursuant to Decree No. 34/CP of the Government dated May 27, 1995 on tasks, authorities, and organizational structure of the General Department for State Capital and Asset Management at Enterprises.
Pursuant to Decision No. 397/TTg of the Government dated July 7, 1995 on the transfer of tasks of state capital and asset management at enterprises.
Pursuant to Circular No. 144/KTTH of the Government Office dated January 9, 1996 on state capital and asset management at enterprises under the Ministry of National Defense.
Pursuant to Decision No. 189/QĐ-QP of the Ministry of National Defense dated March 4, 1997 on the establishment of the State Capital and Asset Management Bureau at enterprises under the Ministry of National Defense.
Considering the nature of activities of enterprises under the Ministry of National Defense.
The Ministry of Finance and the Ministry of National Defense hereby stipulate the responsibilities and authorities of each Ministry in managing the financial affairs of enterprises under the Ministry of National Defense as follows:

1. Responsibilities and authorities of the Ministry of Finance

1.1. Reviewing and announcing the annual budget revenue and expenditure forecast of the State-owned Corporations and public service enterprises.

1.2. Reviewing data and organizing the allocation of capital to State-owned Corporations and independent enterprises (excluding public service enterprises of type 1 as defined in Decision No. 955/QĐ-QP dated July 18, 1997 of the Minister of National Defense).

1.3. Participating in providing opinions for the Ministry of National Defense to decide on capital mobilization and investment plans outside enterprises when such actions exceed the authority of the enterprises (excluding public service enterprises of type 1).

1.4. Participating in providing opinions for the Ministry of National Defense to decide on leasing, transferring, and liquidation plans of assets when such actions exceed the authority of the enterprises according to national regulations (excluding public service enterprises of type 1).

1.5. Deciding on plans to increase or decrease the basic depreciation rate of fixed assets when such actions exceed the authority of the enterprises (excluding public service enterprises of type 1).

1.6. Submitting to the competent authority for decision-making or deciding according to the level of authority on initial capital investments, additional capital investments, financial subsidies, policy prices, state reserve funds at enterprises, and administrative and public service expense limits (if applicable) for enterprises.

1.7. Cooperating with the Ministry of National Defense to organize regular or spot checks on the implementation of financial-accounting systems, budget revenue discipline, and annual financial reports of State-owned Corporations and enterprises (excluding public service enterprises of type 1).

1.8. Cooperating with the Ministry of National Defense to organize reviews and approval of annual financial reports of public service enterprises under the defense-economy model (as defined in Decision No. 955/QĐ-QP dated July 18, 1997 of the Minister of National Defense - referred to as public service enterprises of type 2).

1.9. Establishing a Board to appraise the value of state-owned joint-stock companies with a capital of over 10 billion VND. Deciding on the value of the company for the purpose of shareholding reform.

1.10. Having the right to request State-owned Corporations and independent enterprises (excluding public service enterprises of type 1) to submit financial reports, periodic and spot reports on the management of state capital and assets at enterprises, and related financial accounting documents according to national regulations.

2. Responsibilities and authorities of the Ministry of National Defense.

2.1. Guiding the preparation of annual budget revenue and expenditure forecasts of State-owned Corporations and independent enterprises under the Ministry of National Defense based on general guidelines from the Ministry of Finance.

Approving the annual budget revenue and expenditure forecasts of public service enterprises (including public service enterprises that are members of State-owned Corporations).

- Consolidating the annual budget revenue and expenditure forecasts of public service enterprises, business enterprises, and State-owned Corporations and submitting them to the Ministry of Finance.

- Allocating the annual budget revenue and expenditure forecasts for public service enterprises within the approved annual budget revenue and expenditure forecasts by the state and simultaneously submitting them to the Ministry of Finance.

- Participating with the Ministry of Finance in reviewing the annual state budget revenue and expenditure forecasts of State-owned Corporations for the Ministry of Finance to issue notifications.

2.2. Reviewing data and organizing the allocation of capital to public service enterprises of type 1. Sending the capital allocation files to the Ministry of Finance within 15 days from the date of capital allocation to the enterprise. Participating with the Ministry of Finance in reviewing data and allocating capital to State-owned Corporations and independent enterprises (excluding public service enterprises of type 1).

2.3. Deciding on capital mobilization and investment plans outside enterprises when such actions exceed the authority of the enterprises according to national regulations.

2.4. Deciding on leasing, transferring, and liquidation plans of assets when such actions exceed the authority of the enterprises according to national regulations.

2.5. Deciding on plans to increase or decrease the basic depreciation rate of fixed assets when such actions exceed the authority of public service enterprises of type 1 and reporting to the Ministry of Finance within 15 days from the date of decision.

- Participating in the Ministry of Finance's decision on plans to increase or decrease the basic depreciation rate of fixed assets when such actions exceed the authority of business enterprises and public service enterprises of type 2.

2.6. Submitting to the competent authority for decision-making or deciding according to the level of authority on initial capital investments, additional capital investments, financial subsidies, policy prices, state reserve funds at enterprises, and administrative and public service expense limits (if applicable) for enterprises.

2.7. Implementing registration, management of labor norms, approving and allocating unit price wages, and reviewing product pricing plans for enterprises according to the government's classification.

2.8. Organizing regular or spot checks on the implementation of financial-accounting systems, budget revenue discipline, and annual financial reports of enterprises.

Implement the management of joint venture enterprises and shareholding enterprises with state capital under the Ministry of National Defense in accordance with the provisions of the State.

2.9. Organize inspections and approve annual financial reports of public welfare enterprises, and report the results to the Ministry of Finance.

2.10. Establish a Board to review the value of shareholding enterprises privatizing state capital up to 10 billion VND, and appoint representatives to participate in the Board to review the value of shareholding enterprises privatizing state capital over 10 billion VND, chaired by the Ministry of Finance.

3. In addition to the tasks and authorities of the two Ministries as stipulated in this document, other tasks and authorities related to financial-accounting management, capital and asset management of enterprises shall be carried out in accordance with the provisions of the Law.

4. The General Department for State Capital and Asset Management in Enterprises shall direct the operations of the Department for State Capital and Asset Management in Enterprises under the Ministry of National Defense.

5. This Circular takes effect from the date of signature. Any issues arising during implementation shall be resolved by supplementary regulations issued by the two Ministries as necessary./.