Circular No. 67/2005/TT-BTC guiding the implementation of Decision No. 169/2005/QD-TTg dated July 7, 2005 of the Prime Minister on the implementation of staffing quotas and operating funds for the State Treasury for the period 2005-2007.

CIRCULAR

Guidelines for implementing Decision No. 169/2005/QĐ-TTg dated July 7, 2005

of the Prime Minister on the implementation of personnel quotas and operating funds for State Treasury for the period of 2005

activities with the State Treasury for the period of 2005 - 2007

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

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 169/2005/QĐ-TTg dated July 7, 2005 of the Prime Minister on the implementation of personnel quotas and operating funds for State Treasury for the period of 2005-2007;

The Ministry of Finance hereby guides the implementation of personnel quotas and operating funds for State Treasury as follows:

I. GENERAL PROVISIONS

1. Implement personnel quotas and operating funds for State Treasury (KBNN) under the Ministry of Finance according to Decision No. 169/2005/QĐ-TTg dated July 7, 2005 of the Prime Minister.

Personnel quotas and operating funds shall not be implemented for subordinate units of KBNN, including: Information and Statistics Center, Training Center, National Treasury Management Magazine. These units shall operate under the financial management mechanism for public service organizations.

2. The implementation of personnel quotas and operating funds for KBNN must ensure the following objectives and requirements:

a) Effectively perform the state management function of the state budget fund, financial funds, and other state funds; complete the task of raising funds for the state budget and managing national precious assets; improve the quality of business operations and serve service activities through transactions and payments with agencies, organizations, and individuals.

b) Reform the management mechanism of personnel quotas and operating funds for KBNN; promote the restructuring, organization, and building of a clean, strong, and highly qualified workforce; grant autonomy and responsibility to unit heads in organizing work, using labor, and utilizing financial resources.

c) Create autonomy in the use of allocated operating funds, practice thrift, and prevent waste; focus on modernizing information technology and equipping advanced technology to enhance efficiency and modernize management technology to effectively fulfill assigned state functions and meet international integration conditions; strengthen training and supplement income for officials and civil servants.

d) Implement transparency and democracy in accordance with the provisions of the law, ensuring the legitimate rights of KBNN officials and civil servants.

3. Sources of funding for KBNN's activities include: Operating funds allocated (state budget funds and funds from business activities); state budget funds allocated to implement non-allocated expenses and other lawful sources of funding as prescribed by law.

4. KBNN is responsible for managing and using personnel quotas, assets and operating funds allocated in accordance with current regulations of the State and the guidelines set forth in this Circular.

5. Within the allocated personnel quotas and operating funds, based on the characteristics and nature of each unit's activities, the General Director of KBNN decides to allocate to units within the KBNN system appropriately.

II. SPECIFIC PROVISIONS

1. Allocation of personnel quotas:

a) The number of personnel quotas allocated to units implementing allocation within the KBNN system is carried out according to the Decision of the Minister of Finance and is included in the total number of personnel quotas managed by the Ministry of Finance.

b) Within the allocated personnel quotas, KBNN may proactively organize, restructure, reduce personnel quotas, manage, and use civil servants in accordance with the Civil Servant Law, current guiding documents of the State, and the Ministry of Finance.

KBNN is responsible for allocating personnel quotas to units implementing allocation within the KBNN system, ensuring that the total number of allocated personnel quotas does not exceed the number allocated by the Minister of Finance to KBNN.

In addition to the allocated personnel quotas, KBNN may enter into contractual engagements and labor contracts in accordance with the law.

c) The number of personnel quotas allocated to KBNN will be reviewed and adjusted in cases where new KBNNs are established (or merged) in provinces and centrally-administered cities or when their functions and tasks are supplemented according to decisions of competent authorities.

When it is necessary to adjust the allocated personnel quotas, the General Director of KBNN has the responsibility to report to the Minister of Finance for consideration and to coordinate with the Minister of Home Affairs to submit to the Prime Minister for decision.

2. Allocation of operating funds:

a) Sources of allocated operating funds for KBNN include:

- State budget allocation is 210 billion VND/year.

- Operating funds derived from KBNN's business activities as prescribed by law, including:

+ Income generated from payment and money transfer activities; gold, silver, precious stones, foreign currency, and securities storage, inspection, and custody activities.

+ Interest and fee income minus fees payable at the State Bank and commercial banks.

+ Income from temporary idle funds loaned out by KBNN as prescribed by the Ministry of Finance.

+ Income from selling seals to customers and service fees for collecting electricity and water bills...

b) Operating funds allocated to KBNN can be used for the following purposes:

- Regular operational expenses:

+ Personal payment expenses: Salary, wages, allowances, social insurance contributions (including: Social insurance, health insurance, trade union fees), and other personal payment expenses as prescribed by the state.

+ Administrative management expenses: Payment for public services; office supplies; information, propaganda, communication; conferences; travel expenses; rental expenses; regular maintenance and repair of fixed assets and other administrative management expenses.

+ Business activity expenses: Supplies, specialized goods; safety equipment for vaults, inspection and counting devices; various seals; uniforms, labor protection; expenses for inventory rotation, transfer, security of cash, valuable certificates, and precious assets; coordination and organization expenses for tasks; other business expenses.

- Non-recurring activity expenses:

+ Outbound and inbound expenses.

+ Modernization expenses for the industry, purchase of fixed assets to serve professional work; support expenses for building headquarters, cash vaults; major repairs of working premises, equipment, and other fixed assets according to the program and plan of the State Treasury and the Ministry of Finance.

+ Expenses for maintaining and developing, modernizing information technology according to the program and plan of the State Treasury and the Ministry of Finance.

+ Training and professional development expenses for State Treasury staff according to the program and plan of the State Treasury and the Ministry of Finance.

+ Special expenses as prescribed by the Minister of Finance.

c) Standards, norms, and expenditure regimes for the implementation of budgetary allocations:

- For salary expenses: Based on staffing levels and allocated budget, the State Treasury can allocate an average salary level for the entire State Treasury system at 1.8 times the salary regime stipulated by the state for civil servants and officials.

Allowances are adjusted according to the salary expense and increased income, including position allowances, regional allowances, responsibility allowances, and seniority allowances beyond the framework as prescribed.

The implementation of the contribution deduction system based on salary is carried out according to the current regulations of the state (excluding salary adjustment levels).

- For administrative management expenses, professional activity expenses, and training and professional development expenses for State Treasury staff: Based on applying standards, norms, and regimes according to current regulations and within the scope of the allocated budget, the General Director of the State Treasury establishes internal expenditure standards, norms, and regimes suitable for special activities and reports to the Minister of Finance for approval before issuance.

- For non-recurring activity expenses (excluding training and professional development expenses for State Treasury staff), the State Treasury implements according to current financial management standards, norms, and regimes.

d) The State Treasury may use additional revenue and savings compared to the allocated budget to fund the following items:

- Establishing a Fund for Income Stability and Development of Activities of the State Treasury System. The contribution rate and usage are regulated by the Minister of Finance.

- Additional subsidies for those voluntarily retiring during the restructuring and reorganization process.

- Supplementing income for State Treasury staff: In addition to the salary expenses mentioned above, the State Treasury may use the surplus from additional revenue and savings compared to the allocated budget to supplement income for staff; the supplementary income level for State Treasury staff is decided by the Minister of Finance.

- Supporting affiliated public institutions under the State Treasury system.

- Reward and welfare expenses. The annual reward and welfare expenses shall not exceed three months' salary.

đ) The General Director of the State Treasury decides the salary and income levels for subordinate State Treasuries and directs and guides the payment of salaries and incomes for State Treasury staff based on their performance and quality of work, ensuring fairness and reasonableness.

Heads of units under the State Treasury system must coordinate with the trade union organizations at their units to develop and issue salary and income payment plans for staff according to the guidance of the General Director of the State Treasury.

e) Based on the allocated budget and the content of the allocation, and the standards, norms, and regimes prescribed in points a, b, and c above, the General Director of the State Treasury allocates budgets to units under the State Treasury system to clearly define the content and budget levels for regular activities and non-recurring task expenses.

g) During the period of implementing staffing and operational budget allocations, when the state changes policies and systems, the State Treasury must cover additional costs according to the new policies and systems.

h) The allocation level of the state budget for the State Treasury will be reviewed and adjusted in certain cases where the allocated budget is insufficient to ensure the minimum salary expenditure level as prescribed by the state and maintain the operation of the State Treasury system; specifically:

- Adding functions and responsibilities according to the decision of the competent authority,

- Natural disasters and other objective reasons.

- Decrease in income from professional activities due to changes in state mechanisms and policies.

The General Director of the State Treasury has the responsibility to report to the Minister of Finance for review and submission to the Prime Minister for appropriate adjustments to ensure that the State Treasury fulfills its assigned tasks.

3. Contents Not Subject to Allocation:

In addition to the allocated budget sources specified in point a, clause 2 above, the State Treasury also uses the following sources annually:

a) Budget funds provided by the state budget to implement specific tasks:

- Construction expenses centrally funded by the state budget;

- Expenses for national-level scientific research projects;

- Expenses for national target programs; training and professional development of civil servants and other programs and projects according to the government's plan.

- Expenses for streamlining staffing according to the state-prescribed system (if applicable);

- Expenses for issuing, settling treasury bills, bonds, and State Treasury bills.

b) Other lawful sources as prescribed by law.

The management and use of these non-allocated budget sources, the State Treasury is responsible for implementing according to current standards, norms, and regimes prescribed by the state.

4. Budget Preparation, Allocation, Distribution, Withdrawal, and Settlement:

a) Establishment of budget estimates: Annually, KBNN is responsible for preparing the budget estimate of revenue and expenditure of the State Budget to be sent to the Ministry of Finance (primary budget entity) for review and consolidation to be submitted to the Ministry of Finance, the Ministry of Planning and Investment, and relevant agencies in accordance with the provisions of the State Budget Law and guiding documents.

b) Allocate the budget:

- For allocated funds: Annually, The Ministry of Finance allocates the budget for allocated funds to KBNN, including: State Budget sources amounting to 210 billion VND; income from business activities.

- As for the non-allocated funds: Based on the budget expenditure assigned by the Prime Minister, the Ministry of Finance allocates the budget expenditure to KBNN in accordance with current regulations.

c) Allocate the budget:

Based on the budget allocated by the Ministry of Finance, unused allocated funds from the previous year (if any), assigned tasks, and guidance from the Ministry of Finance, KBNN implements the allocation of the budget to units under the KBNN system to be reviewed by the Ministry of Finance according to the State Budget Law and current guiding documents. The budget allocation must ensure the following contents:

- Allocation based on fund sources, including: Allocated operating funds; funds for expenditures not subject to allocation.

- According to four categories: Personal payment expenses; specialized professional expenses; procurement and repair expenses; other expenses.

- Additionally, for allocated operating funds, the implementation of budget allocation ensures the division into two aspects: Funds ensuring regular expenditure; funds implementing irregular expenditure.

After the Ministry of Finance reviews the budget allocation, KBNN implements the allocation of the budget to budget entities under the KBNN system according to current regulations.

d) Adjust the budget:

- For the budget of allocated operating funds:

+ Regular expenditure budget: Budget entities allocating operating funds within the KBNN system may adjust the budget among personal payment expense categories, specialized professional expenses, and other expenses within the scope of allocated funds or adjust from these three expense categories to supplement procurement and repair expenses according to the decision of the competent authority.

When there is a need to adjust between these expense categories, the budget entity prepares an adjustment budget proposal and sends it to the KBNN where the entity has its transaction account; KBNN is responsible for making payments and settlements according to the request of the head of the entity allocating funds.

+ For cases requiring adjustments in the budget for irregular expenditure items, transferring from irregular activity expenditure to regular activity expenditure, adjusting the allocated budget of KBNN provincial and city levels; budget entities allocating funds prepare an adjustment budget proposal and send it to the higher-level KBNN for consolidation and submission to the Ministry of Finance for review according to current regulations.

- For the adjustment of the budget for items not subject to allocation: KBNN implements according to current regulations.

đ) Unused funds at the end of the year:

- For allocated funds: At the end of the fiscal year, if there are remaining allocated funds, the unit can transfer them to the next year for continued use. The implementation of transferring surplus funds is carried out as follows:

+ For expenses that the unit has temporarily withdrawn from the budget at KBNN during the year: The unit should promptly complete payment documents to settle accounts according to regulations. Specifically, for cash withdrawals from the budget that have not been spent (or have no spending items) by December 31, the unit must return the budget to the KBNN where the unit has its transaction account to complete the procedures for transferring the budget surplus to the next year.

+ KBNN consolidates the budget surplus at KBNN (including recovered budget surplus) for each allocating unit and by expense category (confirmed by the KBNN where the transaction account is opened) and submits it to the Ministry of Finance to process the transfer of the budget surplus to the next year according to regulations.

- For non-allocated funds: At the end of the fiscal year, if there are remaining funds not used, the unit must refund the State Budget according to current regulations. If necessary, to transfer funds to the next year for continued use, KBNN reports and explains the reasons clearly to the Ministry of Finance for consideration and decision.

e) Withdrawal of the budget, accounting, and final settlement report: KBNN and budget entities under the KBNN system implement withdrawal of the budget, accounting, and final settlement report according to current regulations.

III. IMPLEMENTATION

1. The General Director of KBNN is responsible for guiding and organizing the pilot implementation of staff quota and operating fund allocation for budget entities under the KBNN system in accordance with Decision No. 169/2005/QĐ-TTg dated July 7, 2005 of the Prime Minister, the guidance in this Circular, and the regulations of the Minister of Finance.

2. Annually, KBNN organizes inspections, interim summaries, and evaluations to draw lessons from the pilot implementation of staff quota and operating fund allocation.

In August 2007, the General Director of KBNN will organize a summary evaluation of the results of the pilot implementation of staff quota and operating fund allocation for the period 2005-2007 and the plan for staff quota and operating fund allocation for the subsequent period to report to the Minister of Finance for presentation to the Prime Minister for decision.

3. This Circular takes effect 15 days after its publication in the Official Gazette. Circular No. 111/2002/TT-BTC dated December 12, 2002, guiding the pilot implementation of staff quota and operating fund allocation for KBNN for the period 2002-2004 is abolished.

During the implementation process, if there are difficulties or obstacles, units are requested to reflect them to the Ministry of Finance for timely research and resolution./.