Joint Circular No. 62/TT-LT 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

Regarding the allocation 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

Pursuant to Decree No. 34/CP of the Government dated May 27, 1995 on tasks, authorities, and organizational structure of the State Capital and Asset Management General Department at enterprises.
Pursuant to Decision No. 397/TTg of the Government dated July 7, 1995 on transferring the task of managing capital and assets under state ownership at enterprises.
Pursuant to Circular No. 144/KTTH of the Office of the Government dated January 9, 1996 on managing state capital and assets 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 establishing 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 shall stipulate the responsibilities and authorities of each ministry in managing financial affairs for enterprises under the Ministry of National Defense as follows:

1. Responsibilities and authorities of the Ministry of Finance

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

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

1.3. Participating in advising the Ministry of National Defense to decide on capital mobilization and investment plans outside enterprises when exceeding the authority of the enterprise (excluding public welfare enterprises of type 1).

1.4. Participating in advising the Ministry of National Defense to decide on leasing, transfer, and liquidation plans of assets when exceeding the authority of the enterprise according to state regulations (excluding public welfare enterprises of type 1).

1.5. Deciding on plans to increase or decrease the basic depreciation rate of fixed assets when exceeding the authority of the enterprise (excluding public welfare enterprises of type 1).

1.6. Submitting to competent authorities for decision-making or deciding according to the level of authority on initial capital investment, additional capital investment, 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 compliance with financial-accounting systems, budget revenue discipline, and annual financial reports of State-owned Corporations and enterprises (excluding public welfare enterprises of type 1).

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

1.9. Establishing a Board to appraise the value of joint-stock enterprises with state capital over 10 billion VND. Deciding on the enterprise value for implementing joint-stock conversion.

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

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

- Consolidating annual budget revenue and expenditure forecasts of public welfare enterprises, business-operating enterprises, and State-owned Corporations submitted to the Ministry of Finance.

- Allocating annual budget revenue and expenditure forecasts for public welfare enterprises within the approved annual state budget revenue and expenditure forecast, and simultaneously submitting to the Ministry of Finance.

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

2.2. Reviewing data and organizing capital allocation for public welfare enterprises of type 1. Submitting 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 for State-owned Corporations and independent enterprises (excluding public welfare enterprises of type 1).

2.3. Deciding on capital mobilization and investment plans outside enterprises of enterprises and State-owned Corporations when exceeding the authority of the enterprise according to state regulations.

2.4. Deciding on leasing, transfer, and liquidation plans of assets when exceeding the authority of enterprises according to state regulations.

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

- Participating in advising the Ministry of Finance to decide on plans to increase or decrease the basic depreciation rate of fixed assets when exceeding the authority of business-operating enterprises and public welfare enterprises of type 2.

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

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

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

Implementing management of joint ventures and joint-stock enterprises with state capital under the Ministry of National Defense according to state regulations.

2.9. Organize annual financial report inspections and approvals for public utility enterprises, and notify the results to the Ministry of Finance.

2.10. Establish a Valuation Review Board for state-owned enterprises undergoing shareholding with state capital of up to 10 billion VND, and appoint representatives to participate in the Valuation Review Board for state-owned enterprises undergoing shareholding chaired by the Ministry of Finance for those with state capital exceeding 10 billion VND.

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 State Capital and Asset Management General Department at Enterprises shall direct business operations to the State Capital and Asset Management Branch at Enterprises under the Ministry of National Defense.

5. This Circular takes effect from the date of signature. Any difficulties encountered during implementation shall be supplemented by regulations issued by the two Ministries to ensure compliance.