Circular No. 71/2011/TT-BTC guides the establishment, management, and use of the Competition and Reward Fund according to Decree No. 42/2010/NĐ-CP dated April 15, 2010, of the Government detailing the implementation of certain provisions of the Law on Competition and Reward.

CIRCULAR

Guidelines for the establishment, management, and use of the Commendation Fund in accordance with Decree No. 42/2010/NĐ-CP dated April 15, 2010 2020 of the Government detailing the implementation of certain provisions of the Law on Commendation and Reward

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Pursuant to the State Budget Law;

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

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 Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government detailing the implementation of certain provisions of the Law on Encouragement and Reward;

After reaching consensus with the Ministry of Home Affairs, the Ministry of Finance provides guidelines for the establishment and use of the Commendation Fund established according to Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government detailing the implementation of certain provisions of the Law on Encouragement and Reward as follows:

Article 1. Scope and Applicability

This Circular guides the establishment, management, and use of the Commendation Fund belonging to:

1. Ministries, agencies at the level of ministries, government agencies, the Office of the National Assembly, the Office of the President, Supreme People's Procuracy, Supreme People's Court, State Audit Agency, and directly affiliated budgetary units and public service organizations. high, State Audit Organization and budgetary units, public service units directly under it.

2. People's Committees of provinces and centrally-administered cities; People's Committees of districts, counties, towns, and cities under provinces; People's Committees of communes, wards, and towns (hereinafter referred to collectively as People's Committees at all levels); Offices of People's Councils at all levels; People's Committee Offices; specialized agencies under People's Committees at all levels.

3. Political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations at all levels and their directly affiliated budgetary units.

4. State-owned joint-stock companies with a single shareholder, foreign-invested enterprises, businesses under various economic sectors; agricultural, forestry, fishery cooperatives, small-scale handicraft cooperatives, transportation cooperatives, construction cooperatives, fishing cooperatives, salt-making cooperatives, and other fields.

Article 2. Principles for managing and using the Commendation Fund.

1. The head of the agency issuing the commendation decision shall be responsible for disbursing rewards from the reward fund managed by that level.

Collectives and individuals under central ministries, departments, mass organizations, and localities who are awarded commendations by the Prime Minister or the President shall have the responsibility to allocate funds from their own Commendation Fund to cover the rewards and record them as separate items. If the Prime Minister or the President decides to award commendations, then the Ministry, Council, sector, social organization, or locality shall be responsible for allocating from their own Competition and Commendation Fund to provide awards and record the expenditure as a separate item.of their own agency or unit for awarding and accounting as a separate item

2. The Commendation Fund must be used for its intended purpose, transparently, and openly.

Article 3. Sources and levels of contribution to the Commendation Fund.

1. The Commendation Fund of Ministries, agencies at the level of ministries, government agencies, the Office of the National Assembly, the Office of the President, the Supreme People's Court, the Supreme People's Procuracy, the State Audit Agency, and their directly affiliated budgetary units:

a) Sources of formation:

- State budget;

- Contributions from domestic and foreign individuals and organizations for the purpose of encouragement and reward;

- Other lawful revenues (if any).

b) Contribution levels:

- Annually, based on the state budget expenditure plan approved by the competent authority; based on the total salary fund according to rank and grade of the number of civil servants, public officials, and employees within the establishment and the annual approved wages of the number of contractual workers paid according to the wage scale prescribed by the State (excluding the salary and wages of units under self-financing); based on contributions from domestic and foreign individuals and organizations for the purpose of encouragement and reward; other lawful revenues; results of the previous year's Commendation Fund implementation and the projected total reward expenditure for the current year; Ministries, agencies at the level of ministries, government agencies, the Supreme People's Court, the Supreme People's Procuracy, and the State Audit Agency shall establish the Commendation Fund from the state budget with a maximum level of up to 20% of the total salary fund according to rank and grade or rank of the number of civil servants, public officials, and employees within the establishment and the annual approved wages mentioned above.

- Based on the total contribution level of the Commendation Fund; based on the need for encouragement and reward expenditures of the agency and its directly affiliated budgetary units; the head of the superior agency shall decide the level of the Commendation Fund for the agency and its directly affiliated budgetary units appropriately.

2. The Commendation Fund of provincial, district, and commune levels:

a) Sources of formation:

- State budget;

- Contributions from domestic and foreign individuals and organizations for the purpose of encouragement and reward;

- Other lawful revenues (if any).

b) Contribution levels:

Based on the state budget expenditure plan assigned and the contribution level of the Commendation Fund stipulated in Clause 2, Article 67 of Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government detailing the implementation of certain provisions of the Law on Encouragement and Reward and the Law Amending and Supplementing Certain Provisions of the Law on Encouragement and Reward; based on contributions from domestic and foreign individuals and organizations for the purpose of encouragement and reward; other lawful revenues; results of the previous year's Commendation Fund implementation and the projected total reward expenditure for the current year; the People's Committees at all levels in the locality shall submit to the People's Councils at the same level to decide the ratio of the Commendation Fund contribution in the annual state budget. The maximum contribution level from the state budget is 1.0% of regular state budget spending for each budget level in plains provinces and centrally-administered cities, and the maximum contribution level is 1.5% of regular state budget spending for each budget level in mountainous, midland, Central Highlands, remote, and far-flung areas.

- Based on the situation of encouragement and reward in the previous year and the planned year; the Chairman of the People's Committees at all levels shall decide the contribution level of the Commendation Fund for the directly affiliated budgetary units.

- In the decision assigning the budget of the Chairman of the People's Committees at all levels to the directly affiliated budgetary units, it must clearly note the contribution level of the Commendation Fund.

3. The Commendation Fund of political organizations, the Central Committee of the Vietnam Fatherland Front at all levels, and political-social organizations:

a) Sources of formation:

- State budget;

- Contributions from domestic and foreign individuals and organizations for the purpose of encouragement and reward:

- Other lawful revenues (if any).

b) Contribution levels:

Annually, based on the specific nature of their activities; based on the budget expenditure forecast that has been assigned by the competent authority; on the basis of contributions from individuals and organizations both domestic and foreign for the purpose of competition and commendation; other lawful sources of income; based on the results of the Competition and Commendation Fund in the previous year and the projected total amount to be allocated to the Competition and Commendation Fund in the current year; political organizations, the Central Committee of the Vietnam Fatherland Front, and political-social organizations shall propose the amount to be allocated to the Competition and Commendation Fund and consolidate this with the proposed budget allocation plan to submit to the financial authority for review to determine the allocation level of the Competition and Commendation Fund for the year.

Based on the budget allocated to establish the Competition and Commendation Fund, political organizations and political-social organizations allocate the Competition and Commendation Fund to their own management levels and subordinate budget units appropriately.

4. Professional-political-social organizations, social organizations, and social-professional organizations (collectively referred to as associations) shall independently decide the amount to be allocated to the Competition and Commendation Fund based on their financial capacity and from contributions from individuals and organizations both domestic and foreign, and from other lawful sources of income.

Specifically, for special associations as stipulated in Decision No. 68/2010/QĐ-TTg dated November 1, 2010 of the Prime Minister regarding special associations; the maximum amount to be allocated from the state budget for commendation purposes shall not exceed 20% of the total salary for positions, ranks, and grades of the assigned staff.

5. For public service establishments:

a) For public service establishments that fully self-fund their regular operational expenses: The Competition and Commendation Fund shall be established according to the financial regulations applicable to public service establishments and from contributions from organizations and individuals for the purpose of competition and commendation (if any).

b) For public service establishments that partially self-fund their regular operational expenses and those fully funded by the state budget for regular operational expenses: The Competition and Commendation Fund shall be established from the state budget expenditure forecast assigned by the superior administrative body; from the surplus of revenue over expenditure and from contributions from organizations and individuals for the purpose of competition and commendation (if any).

6. For limited liability companies wholly owned by the State, foreign-invested enterprises, and enterprises belonging to various economic sectors; agricultural, forestry, fishery cooperatives, small-scale industrial cooperatives, transport cooperatives, construction cooperatives, fishing cooperatives, salt-making cooperatives, and in other fields:

a) For agricultural, forestry, fishery cooperatives, small-scale industrial cooperatives, transport cooperatives, construction cooperatives, fishing cooperatives, salt-making cooperatives, and in other fields, the establishment of the Competition and Commendation Fund shall be carried out in accordance with the provisions of the Law on Cooperatives and Decree No. 42/2010/NĐ-CP, specifically:

- The Competition and Commendation Fund shall be stipulated in the Charter of the Cooperative and decided by the General Assembly of Members in accordance with the specific conditions of each cooperative; the specific ratio for establishing funds shall be decided by the General Assembly of Members.

- Source of establishment: as provided for in Clause 7 Article 67 of Decree No. 42/2010/NĐ-CP.

- Purpose, management method, and use of the Competition and Commendation Fund of the cooperative shall be stipulated in the Charter of the cooperative.

b) For limited liability companies wholly owned by the State: The establishment of the Competition and Commendation Fund shall be implemented in accordance with Circular No. 138/2010/TT-BTC dated September 17, 2010 of the Ministry of Finance guiding the profit distribution regime for limited liability companies wholly owned by the State.

c) For foreign-invested enterprises and enterprises belonging to various economic sectors (excluding enterprises specified in point b of this clause): The Competition and Commendation Fund shall be established from post-tax profits and from the wage fund. The amount to be established shall be decided by the Board of Members/General Meeting of Shareholders or the Board of Directors/Management Board of the enterprise in accordance with the provisions of the Enterprise Law and the Charter of the enterprise.

Article 4. Contents and levels of expenditure for commendation and reward activities.

1. Contents of expenditure for commendation and reward activities:

a) Expenditure for printing certificates, awards, medals, making commemorative medals, orders, medals, badges, competition flags, frames for awards and certificates, boxes for orders, medals, commemorative medals, and badges.

For funds to print certificates, awards, medals, making commemorative medals, orders, medals, badges, competition flags, frames for awards and certificates, boxes for orders, medals, commemorative medals, and badges under forms of rewards decided by the Prime Minister and the President of the State for commendation shall be expended from the budget estimate of the Ministry of Home Affairs (Central Steering Committee for Commendation and Reward). If the Prime Minister and the President decide to award commendations, they shall be funded from the state budget of the Ministry of Home Affairs (Central Competition and Commendation Board). for awards funded from the budget estimate of the Ministry of Home Affairs (the Central Awards and Honors Board).

b) Expenditure for monetary rewards or mementos for individuals and groups;

c) Expenditure for organizing and directing competition movements: The amount allocated shall not exceed 20% of the total establishment of the Commendation and Reward Fund at each level for the following tasks:

- Expenditure for holding meetings of the Competition and Reward Councils;

- Expenditure for building, organizing, and implementing competition movements; training in competition and reward business; organizing meetings to sign competition agreements; meetings for mid-term reviews, final summaries, learning experiences, publicity, showcasing, and promoting exemplary models.

- Expenditure for launching competition movements and rewards in waves, special topics, regularly, and peak periods within sectors, fields, agencies, organizations, ministries, departments, localities; activities of competition and reward clusters and blocks; expenditure for inspecting, directing, and supervising the implementation of competition and reward movements.

- Other expenditures directly serving the organization and direction of competition movements.

2. Expenditure levels:

a) Level of expenditure for monetary rewards: Implemented according to Articles 70, 71, 72, 73, 74, 75, and 76 of Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government and rounded up to the nearest ten thousand Vietnamese dong.

b) Expenditure for printing certificates, awards, medals, making commemorative medals, orders, medals, badges, competition flags, frames for awards and certificates, boxes for orders, medals, commemorative medals, and badges according to contracts with production units.

c) Expenditure for officials traveling to direct, inspect, and supervise competition and reward activities; organizing meetings to sign competition agreements; meetings for mid-term reviews, final summaries, learning experiences, publicity, showcasing, and promoting exemplary models, training in competition and reward business, and meetings of the competition council shall be implemented according to Circular No. 97/2010/TT-BTC dated July 6, 2010 of the Ministry of Finance on travel expenses and expenditure for organizing meetings for state agencies and public service units.

Article 5. Establishment, execution, and settlement of budgets for expenditure on commendation and reward activities.

1. The establishment, allocation, management, and settlement of budgets for expenditure on commendation and reward activities shall be carried out in accordance with the provisions of the State Budget Law, Accounting Law, and guiding documents.

2. When withdrawing the budget to establish the Commendation and Reward Fund according to the allocation rate specified in Clause 3 of this Circular, agencies and units shall record it under sub-item 7764 (expenditure for establishing reward funds according to regulations) and item 7750 (other expenditures).

3. The allocation from the budget to establish the Commendation and Reward Fund in any year shall be settled in the fiscal year of that year.

4. At the end of the year, any surplus in the Commendation and Reward Fund that has not been fully utilized shall be transferred to the next year for continued use in commendation and reward activities.

5. Each year, agencies and units must report the settlement of the use of the Commendation and Reward Fund and include it in the annual settlement report of the agency or unit according to current regulations.

Article 6. Implementation Organization

1. This Circular takes effect from July 8, 2011, and replaces Circular No. 73/2006/TT-BTC dated August 15, 2006, of the Ministry of Finance guiding the establishment, management, and use of the Commendation and Reward Fund according to Decree No. 121/2005/NĐ-CP dated September 30, 2005, of the Government detailing and guiding the implementation of certain articles of the Law on Commendation and Reward and the Law Amending and Supplementing Certain Provisions of the Law on Commendation and Reward.

2. In addition to the Commendation and Reward Fund established according to the guidance in this Circular, other reward systems shall be implemented in accordance with current laws.

3. During the process of implementation, if there are difficulties, agencies, organizations, and individuals are requested to promptly reflect them to the Ministry of Finance for research and supplementary guidance to ensure suitability./.