Consolidated Document number 64/VBHN-BTC Circular guiding the financial regime of the State Bank of Vietnam

MINISTRY OF FINANCE --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 64/CONSOLIDATED DOCUMENT - MINISTRY OF FINANCE	Hanoi, December 31, 2020

CIRCULAR[1]

GUIDELINES ON THE FINANCIAL REGIME OF THE STATE BANK OF VIETNAM

Circular No. 195/2013/TT-BTC dated December 18, 2013, issued by the Ministry of Finance to guide the financial regime of the State Bank of Vietnam, which took effect from February 3, 2014, was amended and supplemented by:

Circular No. 84/2020/TT-BTC dated October 1, 2020, issued by the Ministry of Finance to amend and supplement regulations on periodic reporting within the authority of the Minister of Finance in the field of banking finance, which took effect from November 15, 2020.

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister's Decision No. 07/2013/QĐ-TTg dated January 24, 2013 on the financial system of the State Bank of Vietnam;

At the proposal of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance issues this Circular to guide the financial regime of the State Bank of Vietnam,[2]

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

1. This Circular guides the implementation of the financial regime of the State Bank of Vietnam (hereinafter referred to as the State Bank), including: the Central State Bank; provincial and municipal branches of the State Bank; domestic and foreign representative offices; units under the State Bank that have not yet implemented the self-financing and self-responsibility regime.

2. Public service units that have already implemented the self-financing and self-responsibility regime and independent economic accounting enterprises directly subordinate to the State Bank are not subject to the provisions of this Circular.

Article 2. Principles of Financial Management of the State Bank

1. The principles of financial management of the State Bank shall be implemented in accordance with Articles 2, 3, and 4 of the Financial Regime of the State Bank promulgated together with Decision No. 07/2013/QĐ-TTg dated January 24, 2013, of the Prime Minister on the financial regime of the State Bank of Vietnam (hereinafter referred to as Decision No. 07/2013/QĐ-TTg).

2. The State Bank implements accounting, statistics, and reporting systems in accordance with the relevant regulations.

Chapter II

SPECIFIC PROVISIONS

Article 3. Capital of the State Bank

1. Statutory capital.

1.1. The level of statutory capital of the State Bank is 10,000 (ten thousand) billion VND, formed from existing capital (as of December 31, 2012) and additional capital according to the provisions of Article 8 of the Financial Regime of the State Bank promulgated together with Decision No. 07/2013/QĐ-TTg.

The State Bank coordinates with the Ministry of Finance to determine the existing capital as of December 31, 2012, for reporting to the Prime Minister for approval.

1.2. The State Bank may use statutory capital to invest in basic construction and purchase fixed assets. Investment in basic construction and purchase of fixed assets by the State Bank shall be carried out in accordance with the laws on investment management and construction.

1.3. The State Bank may use statutory capital to contribute to the establishment of special-purpose enterprises in accordance with Clause 10, Article 4 of the Law on the State Bank of Vietnam.

2. Issued currency in circulation.

The issuance of currency into circulation to implement national monetary policy shall be carried out in accordance with the Law on the State Bank of Vietnam and related legal documents.

3. Deposits of credit organizations, State Treasury, and other organizations.

3.1. The State Bank manages deposits of credit organizations, State Treasury, and other organizations in accordance with the Law on the State Bank of Vietnam and related legal documents.

3.2. The balance of deposits of credit organizations, State Treasury, and other organizations shall be paid interest in accordance with the regulations of the Governor of the State Bank.

4. Borrowed capital.

4.1. The borrowing of capital by the State Bank, including borrowing through bond issuance and foreign borrowing, shall be carried out in accordance with the Law on the State Bank of Vietnam and related legal documents.

4.2. The State Bank shall manage and utilize borrowed capital for its intended purpose and effectively.

5. Other capital as prescribed by law.

Article 4. Management and use of the financial reserve fund

1. The State Bank shall establish the financial reserve fund according to the provisions set forth in Clause 2, Article 10 and Clause 2, Article 16 of the Financial Regulations of the State Bank issued together with Decision No. 07/2013/QĐ-TTg.

2. The financial reserve fund shall be used as follows:

2.1. To cover the remaining losses and damages to assets occurring during operations after compensation has been provided by organizations and individuals causing the loss, insurance organizations, and risk reserves established within costs, as stipulated in Point 3.3, Clause 3, Article 6 of this Circular by a written decision of the Governor of the State Bank.

2.2. To cover annual expenditure exceeding revenue due to the impact of national monetary policy management activities. The State Bank is responsible for evaluating and accurately determining the amount of annual expenditure exceeding revenue caused by the impact of national monetary policy management activities. The Governor of the State Bank decides (in writing) and is responsible for using the financial reserve fund to cover annual expenditure exceeding revenue due to the impact of national monetary policy management activities.

3. In cases where the financial reserve fund is insufficient to cover losses, damages, and annual expenditure exceeding revenue (if any), the State Bank shall coordinate with the Ministry of Finance to propose measures to address the shortfall to the Prime Minister.

Article 5. Risk Provision

1. The State Bank shall establish, manage, and use the risk provision according to the provisions set forth in Article 9 of the Financial Regulations of the State Bank issued together with Decision No. 07/2013/QĐ-TTg.

2. In cases where the balance of the risk provision exceeds the amount required to be established as a risk provision, the State Bank must record the difference between the balance of the risk provision and the amount required to be established as income for the period.

Article 6. Use of Capital and Assets

1. The State Bank is responsible for managing, using, and monitoring all capital and assets assigned by the State, implementing accounting according to current accounting regulations; fully, accurately, and promptly reflecting the situation of capital and asset usage and changes during business operations; clearly defining responsibilities and forms of handling for each department and individual in cases of damage or loss of assets and bank capital.

2. The State Bank shall revalue the value of assets in the following situations:

2.1. Inventory and revaluation of asset values according to the decision of the competent state authority.

2.2. Transfer or sale of assets to organizations outside the State Bank.

The inventory and revaluation of assets shall be carried out in accordance with the law. Any increases or decreases in value resulting from the revaluation of asset values shall be handled according to specific regulations for each case.

3. Transfer, liquidation, sale of assets, and losses at the State Bank are regulated as follows:

3.1. The transfer of State assets at the State Bank shall be carried out in accordance with the laws on the management and use of State assets and other relevant regulations.

3.2. Liquidation and sale of assets for operational needs shall be decided by the Governor of the State Bank. The liquidation and sale process shall be carried out in accordance with the law.

3.3. Losses at the State Bank must be determined by the Loss Assessment Council established by the Governor of the State Bank. The Council shall prepare a detailed report on the causes and extent of the loss and report to the Governor of the State Bank for consideration and decision-making according to the principle:

a) If it is due to subjective reasons, the person responsible must bear the responsibility for compensation;

b) For insured assets, they shall be handled according to the insurance contract;

c) Remaining losses (after deducting the compensation of the person responsible and the insurance organization's indemnity) shall be covered by the financial reserve fund.

4. The handling of principal debt write-offs and interest arrears of the State Bank to credit institutions shall be implemented based on the Prime Minister's Decision upon the proposal of the Ministry of Finance - State Bank Joint Proposal.

5. State capital and assets at the State Bank shall be inventoried at the end of December each year. Any discrepancies in physical inventory and value shall be handled according to the law.

Article 7. Management of Income

1. The income of the State Bank is the total amount of receivables from the operations of the State Bank as prescribed in Article 12 of the Financial Regulations of the State Bank issued together with Decision No. 07/2013/QĐ-TTg, including:

1.1. Income from deposit, credit, and investment activities, including:

a) Interest from lending;

b) Interest income from deposits;

c) Income from securities investments;

d) Other income from credit activities.

1.2. Income from open market operations, including income from buying and selling securities as prescribed (Treasury bills, State Bank bills, and other types of securities) on the money market.

1.3. Income from foreign exchange transactions (foreign currencies and gold) as prescribed.

1.4. Income from payment services, information, cash reserves, and other banking service fees.

1.5. Exchange rate differential income as prescribed by accounting standards (excluding exchange rate differentials when revaluing foreign currency and gold in the state foreign exchange reserve).

1.6. Profit derived from equity contributions to special enterprises.

1.7. Fees and charges as prescribed by law.

1.8. Recovery of previously set aside risk provisions.

1.9. Other income, including:

a) Income from banking activities, including: Excess fund income; economic contract breach penalties; recovered debt that was previously written off; income from publishing magazines, materials, and press;

b) Income from destroying currency;

c) Income from the sale and liquidation of fixed assets; income from the liquidation of labor tools and easily damaged items;

d) Income from destroyed money;

đ) Other income.

2. Principles for recognizing income.

2.1. Income from deposit, credit, and investment activities is recognized as the interest receivable during the period according to the following principles:

a) The State Bank records interest receivable during the period from deposits, investments, and loans within their due dates as income.

b) For overdue loan interest receivable, it is not recorded as income; the State Bank monitors such amounts off-balance sheet until they are collected, at which point they are recorded as income.

2.2. For remaining operational income: Income is the total amount of service fees and sales proceeds accepted by customers for payment, regardless of whether the funds have been received or not.

2.3. If income receivable has been recorded as income but remains uncollected by the due date, the State Bank reduces income (if in the same accounting period) or records it as an expense (if in a different accounting period), and monitors it off-balance sheet until collection, at which point it is recorded as income.

3. All income generated by the State Bank during the period must be supported by invoices or valid receipts and must be fully recorded as income.

Article 8. Management of Expenses

1. The expenses of the State Bank are the total amount of expenditures incurred during the period to maintain the operations of the State Bank as prescribed in Article 13 of the Financial Regulations of the State Bank issued together with Decision No. 07/2013/QĐ-TTg. Some expenses of the State Bank are implemented as follows:

1.1. Operational and banking service expenses, including:

a) Interest expense on deposits, interest expense on loans; expenses related to foreign exchange transactions (foreign currencies and gold); expenses related to open market operations;

b) Expenses for printing, minting, storage, protection, transportation, delivery, issuance, recall, replacement, destruction of currency. These expenses are carried out as follows:

- Expenses for designing currency models, making currency plates, and special expenses serving strategic tasks of the State decided by the Governor of the State Bank;

- Printing and minting costs: Printing and minting costs are recorded annually as expenses of the State Bank in accordance with the volume of new currency put into circulation. The unit price of paper money and other securities; production of metal coins is appraised by the State Bank and submitted to the Ministry of Finance for approval of the maximum unit price within its authority;

- Security expenses: The level of security expenses for currency in a year is established and explained in the annual financial plan by the State Bank, including:

+ Expenses for purchasing labor tools, materials, equipment for currency preservation, transfer, appraisal;

+ Allowances paid according to regulations for guard forces protecting warehouses, transporting money, precious metals, gems, and payment instruments;

+ Other expenses for currency security work.

- Transportation and handling expenses, including:

+ Fuel expenses for transportation vehicles;

+ Transportation vehicle rental expenses settled according to contracts signed with service providers;

+ Handling expenses at ports, stations, airports according to contracts signed with service providers. Over-budget handling expenses for goods entering and leaving the currency warehouse are regulated by the State Bank and explained in the annual financial plan.

- Expenses for currency counting materials, sorting, packaging: The State Bank is allowed to spend and settle the value of materials actually used in the year (packaging, binding cords, adhesive).

- Destruction expenses: Standards for destruction expenses, including allowances for staff participating in destruction work, material, tool, spare part expenses for destruction work, are decided by the Governor of the State Bank and explained in the annual financial plan. Special approval from the Ministry of Finance is required for the allowance for staff participating in destruction work.

c) Expenses for payment and information services;

d) Expenses for transportation, processing, storage, supervision of gold processing, and other related management expenses;

đ) Other operational activity expenses;

1.2. Expenses for anti-money laundering activities.

1.3. Expenses implemented under the quota system, including:

a) Expenses for State Bank employees, civil servants, and contractual workers, including:

- Salary and salary allowances for State Bank employees and civil servants as prescribed by the State;

- Payment for contractual workers' services as prescribed;

- Lunch expenses for State Bank employees and civil servants and contractual workers present at work during the year. Monthly lunch expenses for each employee are decided by the Governor of the State Bank but shall not exceed the basic salary stipulated for civil servants.

- Uniform allowance: The annual uniform allowance for officers, civil servants, and contractual employees of the State Bank shall be determined by the Governor of the State Bank, not exceeding two million VND per person per year. Officers and civil servants under the Inspection and Supervision Agency of the State Bank and those at the State Bank branches in provinces and cities shall follow the national regulations on uniform allowances for inspectors.

- Personal protective equipment allowance: This applies to individuals provided with personal protective equipment according to the current national regulations.

- Regular and extraordinary allowances for rewards and welfare for officers, civil servants, and employees of the State Bank; the annual amount for these two items shall equal the total actual salary fund implemented in the year, excluding position allowances.

Reward allowances include: allowances according to the state regulations and regular or extraordinary allowances as prescribed by the Governor of the State Bank.

b) Allowances for contributions based on salary including union fees, social insurance, health insurance, and other contributions as stipulated by the current regulations.

c) Support for activities of the Party and mass organizations within the agency according to the provisions of the law (excluding allowances for supporting unions in sectors, localities, social organizations, and other agencies).

d) Allowances for hardship subsidies and termination benefits: The objects and amounts of such allowances shall be carried out according to the provisions of the law.

đ) Allowances for management and public service activities include:

- Office supplies expenses;

- Postal and telecommunication expenses: Including postal fees, telecommunications, telegrams, leased line transmission fees, telex, and fax charges paid according to the invoices of postal agencies;

- Electricity, water, health, and office sanitation expenses;

- Fuel expenses: Expenses for purchasing fuel for transportation services for officers, civil servants, and contractual employees of the State Bank on official duties and leaders traveling according to the state regulations;

- Travel expenses: Travel expenses for officers, civil servants, and contractual employees traveling domestically and internationally, settled according to the current regulations;

- Reception and conference expenses: Including expenses for organizing conferences, receiving international and domestic guests, and expenses for organizing meetings on significant anniversaries. These expenses shall be carried out according to the current regulations;

- Expenses for inspection and auditing activities of the State Bank according to the prescribed regulations;

- Training, vocational training, and scientific research expenses include:

+ Expenses for organizing short-term training, enhancement, and vocational training classes in computing, foreign languages, etc., for officers, civil servants, and contractual employees of the State Bank according to the prescribed regulations;

+ Expenses for purchasing materials, printing, and translating documents for training, enhancement, and vocational training activities, and research;

+ Expenses for organizing scientific seminars;

+ Expenses for researching scientific topics;

+ Expenses for drafting and building legal documents according to the regulations;

+ Expenses for implementing and applying banking science and technology;

+ Other expenses related to training, vocational training, and scientific research. These expenses shall be based on the training, vocational training, and research plans decided and approved by the Governor of the State Bank. Expenditure shall be carried out according to the state regulations;

- Expenses for innovation and technical improvement initiatives;

- Expenses for purchasing research materials and books serving the activities of the State Bank;

- Expenses for publishing magazines, newsletters, and professional documents: Royalty payments for authors shall be applied according to general regulations; printing costs shall be settled according to contracts with printing establishments;

The publication plan for magazines, newspapers, newsletters, and professional documents must be approved by the Governor of the State Bank and included in the annual financial plan;

- Advertising expenses: Advertising expenses shall be based on advertising contracts between the advertiser and the State Bank;

e) Repair and maintenance expenses: Actual expenses incurred in the year for this purpose. Costs for repair and maintenance work completed shall not be recorded as an increase in asset value;

g) Purchase expenses for labor tools;

h) Other expenses are incidental expenses during operations that are not covered by the above regulations, mainly including:

- Expenses for recovering written-off debts;

- Losses after compensation from sources specified in Point 3.3 Clause 3 Article 6 of this Circular;

- Expenses for preserving files, vouchers, accounting books, and documents;

- Tax and fee payment expenses (excluding taxes and fees when purchasing fixed assets that must be recorded in the value of fixed assets according to the law);

- Insurance expenses for assets;

- Year-end settlement bonuses as decided by the Governor of the State Bank regarding the recipients and bonus amounts;

- Other incidental expenses with valid receipts;

During the process of determining the budget allocation for each period, expenses under the budget allocation mechanism but only occurring unexpectedly in one year and not regularly shall be excluded from the budget allocation by the Ministry of Finance.

1.4. Depreciation expense for fixed assets: The depreciation of fixed assets of the State Bank shall be applied according to the regulations of the Ministry of Finance for enterprises.

1.5. Rental expenses: Rental expenses shall be recorded as expenses based on the amount payable in the year according to the lease contract. In cases where rental payments are made in one lump sum for multiple years, the rent shall be gradually allocated to expenses according to the number of years of leasing.

1.6. Investment development expenses for technical and banking technology: The State Bank may record investment development expenses for technical and banking technology at 12% of the average value of fixed assets in the year as stipulated in Clause 7 Article 13 of the Financial Regulations of the State Bank issued together with Decision No. 07/2013/QĐ-TTg.

1.7. Rewards for outstanding contributions to the State Bank by individuals and collectives in relevant sectors according to the law; the maximum amount is equal to one month's average actual salary implemented in the year. The recipients, forms, and specific amounts of rewards shall be decided by the Governor of the State Bank.

1.8. Allocate funds for trade union officers of the State Bank of Vietnam to ensure collective rights and benefits in accordance with the Trade Union Law.

1.9. Expenditures from state budget funds allocated according to regulations shall be accounted for separately by the State Bank in accordance with the provisions of the law.

1.10. Expenditures related to business operations involving special-purpose enterprises (excluding equity contributions).

1.11. Expenditures for establishing risk reserves as stipulated in Article 5 of this Circular.

1.12. Supplementary income expenditures under the quota mechanism.

1.13. Expenditures supporting the activities of State Bank's public institutions operating under a partially self-financing mechanism.

1.14. Other expenditures as prescribed by law (including expenditures for selling off or liquidating assets, residual value of sold or transferred assets, expenditures under the quota mechanism that are not regular annual expenses and thus not determined by the Ministry of Finance in the quota budget).

2. Principles for recognizing expenses.

2.1. Expenses of the State Bank are expenditures required to be incurred during the period related to the State Bank's operations.

2.2. Expenditures recorded in the State Bank's expenses must have reasonable and legitimate grounds and must be supported by valid invoices and receipts in accordance with the provisions of the law.

2.3. The State Bank shall not record the following items as expenses:

a) Penalties payable to the state or customers due to material losses caused by the State Bank's subjective reasons during the execution of banking transactions;

b) Administrative fines that individuals must pay according to the law;

c) Expenditures on basic construction investment, procurement, renovation, and upgrading of fixed assets. Expenditures for constructing, repairing, maintaining, and equipping welfare facilities such as housing and rest houses for State Bank staff and contractual employees; expenditures for other welfare projects;

d) Expenditures supporting localities, social organizations, and other agencies;

đ) Expenditures unrelated to the State Bank's operations;

e) Expenditures covered by other sources of funding;

g) Other unreasonable or illegitimate expenditures.

Article 9. Mechanism for Allocating Operating Budgets to the State Bank

1. Based on the orientation of monetary policy management, banking tasks, and relevant policies and guidelines of the Party and the State, the State Bank forecasts and prepares a three-year medium-term financial plan, broken down by year, to submit to the Ministry of Finance for review of the cost allocation scheme.

2. On the basis of the State Bank's proposal, the Minister of Finance decides on the cost allocation scheme for each period for the State Bank, three years, including breakdown by year. The allocation scheme includes the following main contents:

2.1. Determining the percentage to be set aside from revenue-expenditure differences to supplement the allocated budget for each year of the allocation period.

2.2. Determining the total amount of expenditures for items allocated according to Point 1.3 Clause 1 Article 8 of this Circular for each year of the allocation period.

2.3. Specifying the detailed use of savings from the allocated budget and additional funds from revenue-expenditure differences.

3. Savings from the allocated budget and additional funds from revenue-expenditure differences shall be used for the following purposes:

3.1. Supplementing income for State Bank staff. The maximum expenditure shall not exceed 0.8 times the actual salary and allowances paid in the year, excluding duty allowances. Of which, the maximum supplementary amount from revenue-expenditure differences shall not exceed 0.55 times the aforementioned maximum expenditure, the remainder being supplemented from the savings of the allocated budget.

3.2. Establishing a Stable Income Reserve Fund. The contribution level ensures that the fund balance does not exceed three months' salary.

The Stable Income Reserve Fund is used to ensure stable income for State Bank staff when savings from the allocated budget and additional funds from revenue-expenditure differences are insufficient to ensure stable income for State Bank staff; to support State Bank staff facing particularly difficult circumstances or suffering from serious illnesses; to support retired staff and other special cases. The total supplementary income expenditure for State Bank staff annually from this fund and from savings from the allocated budget and additional funds from revenue-expenditure differences shall not exceed the maximum expenditure level specified by the Minister of Finance in the allocation scheme.

3.3. Additional subsidies outside the general policy for those who voluntarily retire during the process of labor restructuring in accordance with the Governor's regulations.

3.4. Any remaining amount (if any) shall be remitted to the state budget.

The Governor of the State Bank decides on the distribution of income based on work results and quality, in a fair and reasonable manner, linked to income and work performance.

4. From the second year onwards of the allocation period, the State Bank adjusts the allocated operating budget according to Point a Clause 2 Article 14 of the Financial Regulations issued together with Decision No. 07/2013/QĐ-TTg.

5. During the implementation of the allocation scheme, if the state changes policies or systems outside the provisions of Clause 4 of this Article, the State Bank must cover any additional costs arising from new policies or systems.

6. In cases where the Government has a policy of saving to create resources for salary reform or reduce public spending for central ministries, agencies, and localities, the State Bank must also implement corresponding reductions in the allocated budget according to the Government's policy.

Article 10. Accounting Records

1. The State Bank shall be responsible for recording all revenues and expenses fully, accurately, and promptly in accordance with the laws on accounting and statistics.

2. The State Bank's revenues and expenditures shall be recorded based on the accrual accounting principle.

3. Foreign currency and gold transactions must be converted into Vietnamese Dong at the exchange rate specified by the State Bank at the time of transaction to record in income and expense accounts.

4. All revenues and expenditures must be supported by valid invoices or documents as prescribed by law.

5. The recognition of foreign exchange rate differences shall be carried out in accordance with the accounting standards.

6. Reductions, exemptions, or refunds of interest revenue of the State Bank shall be implemented in accordance with the law, decisions of competent authorities, and must be fully reported in the financial settlement report.

Article 11. Distribution of Revenue and Expenditure Differences and Payment to the State Budget

1. At the end of the fiscal year, the State Bank shall base its determination of additional budgeted funds, distribution, and payment to the state budget on actual revenues and expenses incurred during the year as follows:

1.1. Determine the actual revenue and expenditure difference as follows:

Actual revenue and expenditure difference

=

Total actual revenue

-

Total of items listed in Points 1.1, 1.2, 1.4, 1.5, 1.6, 1.7, 1.8, 1.9, 1.10, 1.11, 1.13, and 1.14 of Clause 1, Article 8 of Circular, actually occurring during the year

+

The allocated cost as stipulated in Point 1.3 of Clause 1, Article 8 of Circular

(1)

1.2. Determine the additional budgeted funds as follows:

Additional budgeted funds

=

Actual revenue and expenditure difference

x

Percentage extracted from the revenue and expenditure difference to supplement the budgeted funds

(2)

1.3. Determine the State Bank's revenue and expenditure difference for distribution and payment to the state budget as follows:

State Bank's revenue and expenditure difference

=

Actual revenue and expenditure difference

-

Additional budgeted funds

(3)

2. The State Bank's revenue and expenditure difference shall be determined according to Formula (3) and distributed in accordance with the provisions of Article 16 of the Financial Regulations of the State Bank issued together with Decision No. 07/2013/QĐ-TTg.

3. The State Bank shall be responsible for timely and fully paying the entire amount of revenue and expenditure difference required to be paid to the state budget in accordance with regulations.

3.1. Quarterly, the State Bank shall pay temporarily into the state budget 60% of the actual revenue and expenditure difference of the quarter, the remaining portion will be paid into the state budget after the annual financial settlement report has been approved by the Governor of the State Bank. The temporary payment shall be made within the first ten days of the next quarter. In case of necessity, the Ministry of Finance may request the State Bank to temporarily pay more than 60% of the actual quarterly revenue and expenditure difference, ensuring that the total temporary payment in the year does not exceed the annual revenue and expenditure difference required to be paid.

3.2. At the end of the fiscal year, within ten days from the date the annual financial settlement report is approved by the Governor, the State Bank shall be responsible for paying the entire annual revenue and expenditure difference required to be paid to the state budget based on the settlement figures.

3.3. The State Bank's annual revenue and expenditure difference required to be paid to the state budget shall be officially determined based on the audit results of the National Audit Office. If the amount paid exceeds the amount required according to the official audit conclusion, the excess amount paid shall be deducted from the amount required to be paid in the following year.

4. In cases where revenues are insufficient to cover expenditures (expenditures exceed revenues), the State Bank shall report to the Prime Minister for consideration and handling of sources to offset the shortfall from the financial reserve fund or other sources.

Article 12. Financial Plan

1. The fiscal year of the State Bank begins on January 1 and ends on December 31 of each calendar year.

2. The financial plan:

2.1. The State Bank prepares annual financial plans and for each assigned period according to the guidelines of the Ministry of Finance. The financial plan of the State Bank includes the following components:

a) Income-expenditure plan (accompanied by detailed explanations about income and expenditure items and specific budgeted expenditure levels expected for the planning year).

b) Basic construction and fixed asset acquisition plan (accompanied by detailed explanations about planned basic construction and fixed asset acquisitions and balancing of funds).

c) Staffing - salary - income plan.

2.2.[3] The State Bank's financial income and expenditure plan is prepared annually, submitted to the Ministry of Finance for review and consolidation into the state budget estimate in accordance with the State Budget Law and other guiding documents..

2.3. Based on the approved state budget estimate by the National Assembly, the Ministry of Finance reports to the Prime Minister on the State Bank's income and expenditure plan and state budget revenue.

2.4.[4] The method of submitting the financial plan is carried out in the form of paper documents through one of the following methods:

a) Direct delivery;

b) Sending via postal service.

Article 13. Financial Report

1. The State Bank implements final accounts and strictly complies with all regulations regarding the preparation and submission of financial reports to the Ministry of Finance as stipulated by accounting and statistical laws and specifically in this Circular.

2. The financial report sent to the Ministry of Finance includes:

2.1. Quarterly report sent to the Ministry of Finance no later than twenty days after the end of the quarter, including:

a) Implementation report of the income-expenditure plan;

b) Detailed explanation of the implementation status of the income-expenditure plan;

c) Report on the fluctuation of the national foreign exchange reserve, the fund for implementing monetary policy, the financial reserve fund, and risk provisions.

2.2. Annual financial report sent to the Ministry of Finance no later than forty-five days after the end of the fiscal year, including:

a) Year-end balance sheet and trial balance;

b) Implementation of the annual income-expenditure plan;

c) Detailed explanation of the implementation status of the annual income-expenditure plan and financial recommendations for handling;

d) Report on the fluctuation of the national foreign exchange reserve, the fund for implementing monetary policy, the financial reserve fund, and risk provisions;

đ) The annual financial report of the State Bank must be audited and confirmed by the State Audit Agency. The audit results are reported to the Prime Minister and notified to the Ministry of Finance.

2.3[5]The method of submitting financial reports is carried out in the form of paper documents through one of the following methods:

a) Direct delivery;

b) Sending via postal service

Article 14. Responsibility System

1. The Governor of the State Bank is responsible before the Prime Minister for the preparation of plans; implementation of the financial income and expenditure plan and compliance with financial management regulations; ensuring safety, proper use, and effective utilization of state resources and assets assigned under Decision No. 07/2013/QĐ-TTg and specific guidance in this Circular.

2. The Ministry of Finance performs state management functions over finance, including: Guidance on the financial income and expenditure system of the State Bank; proposing to the Prime Minister to supplement and amend the financial system of the State Bank in accordance with the law and the actual operation of the State Bank; determining the quota for the State Bank's management expenses; inspecting the implementation of the State Bank's financial system to assess its suitability for the purpose of perfecting the financial mechanism and system of the State Bank.

Chapter III

IMPLEMENTATION

Article 15. Transitional Provisions

1. The financial systems of the State Bank of Vietnam are implemented from January 1, 2013, as stipulated in Decision No. 07/2013/QĐ-TTg dated January 24, 2013, of the Prime Minister on the financial system of the State Bank of Vietnam.

2. The specific provisions on the financial system of the State Bank in this Circular are implemented from January 1, 2013.

Article 16. Implementation Provisions

[6]

1. This Circular takes effect from February 3, 2014, replacing Circular No. 35/2006/TT-BTC dated April 20, 2006, of the Ministry of Finance guiding the implementation of Decree No. 07/2006/NĐ-CP dated January 10, 2006, of the Government on the financial system of the State Bank of Vietnam.

2. The State Bank is responsible for guiding subordinate units to implement the financial system in accordance with Decision No. 07/2013/QĐ-TTg dated January 24, 2013, of the Prime Minister on the financial system of the State Bank and the guidance content in this Circular. The State Bank is responsible for sending internal guidance documents on this Circular to the Ministry of Finance for monitoring implementation.

3. In the course of implementation, if there are difficulties, please reflect them to the Ministry of Finance for research, consideration, and resolution./.

CERTIFIED CONSOLIDATED DOCUMENT DEPUTY MINISTER DEPUTY MINISTER Huynh Quang Hai