Joint Circular No. 71/2012/TTLT-BTC-BTP stipulates the preparation of budgets, management, use, and settlement of funds for the State's compensation responsibilities.

JOINT CIRCULAR

Regulations on the preparation of budgets, management, use, and settlement of funds to ensure activities for popularizing, educating about laws, standardizing access to laws, and grassroots mediation

implement the State's liability for compensation

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Pursuant to the Law on State Compensation Liability No. 35/2009/QH12 dated June 18, 2009;

Pursuant to the Law on State Budget No. 01/2002/QH11 dated February 16, 2002;

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. 16/2010/NĐ-CP dated March 3, 2010 of the Government detailing and guiding the implementation of certain provisions of the Law on State Compensation Liability;

Pursuant to the 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. 93/2008/NĐ-CP dated August 22, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Justice;

The Minister of Finance and the Minister of Justice issue a Joint Circular stipulating the procedures for preparing budgets, managing, using, and settling accounts for funds from the State budget to implement the State's liability for compensation as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

1. This Circular stipulates the following contents:

a) Preparing budgets, managing, using, and settling accounts for compensation funds from the State budget to implement the State's liability for compensation to individuals and organizations that have suffered losses due to public officials' actions during administrative management, litigation, and enforcement activities (hereinafter referred to as compensation funds); expenses incurred in handling compensation claims by responsible agencies; collecting payments for damages made by public officials causing losses.

b) Preparing budgets, managing, and using funds from the State budget for state management work related to compensation.

2. Determining liability for compensation, types of damages to be compensated, determining the amount of repayment, and procedures for compensation in administrative management, civil enforcement, criminal enforcement, civil litigation, criminal litigation, and administrative litigation shall be carried out in accordance with the provisions of legal documents guiding the implementation of State compensation liability in these activities.

Article 2. Applicability

1. Agencies responsible for compensation in administrative management, litigation, and enforcement; public officials who have caused damage must compensate for the damage and repay compensation funds according to the provisions of the Law on State Compensation Liability.

2. Organizations and individuals suffering losses due to the activities of agencies or public officials shall be compensated according to the provisions of the Law on State Compensation Liability.

3. State agencies responsible for compensation management according to the provisions of the Law on State Compensation Liability.

Article 3. Sources of Funds

1. Compensation funds:

a) The central budget ensures compensation funds for central agencies responsible for compensation, which include Ministries, ministerial-level agencies, and other central agencies (hereinafter referred to as central agencies);

b) Local budgets ensure compensation funds for local agencies responsible for compensation, which include provincial departments, bureaus, and local agencies (hereinafter referred to as local agencies).

2. Funds for implementing the resolution of compensation by responsible agencies shall be used within the administrative management expenditure budget of the responsible agency.

3. Funds for ensuring state management work related to compensation shall be allocated within the regular expenditure budget of the agency or organization assigned the task of state management related to compensation.

Chapter II

SPECIFIC PROVISIONS

Section 1

COMPENSATION FUNDS AND PAYMENTS FOR COMPENSATION

Article 4. Preparation of compensation budgets and allocation of funds

1. Annually, based on actual compensation in the previous year, the Ministry of Finance will coordinate with central ministries and sectors to prepare budgets and consolidate the compensation budget for central agencies to submit to the Government and the National Assembly for consideration and decision in the central budget; the Provincial Department of Finance will coordinate with provincial departments, bureaus, and local agencies to prepare the compensation budget and consolidate it in the local budget to submit to the People's Council at the provincial level for consideration and decision.

2. Compensation funds can only be allocated to agencies responsible for compensation when there is a legitimate request for payment of compensation.

Article 5. Use of compensation funds

1. When a request for payment of compensation arises based on a judgment or decision of a competent authority, the responsible compensation agency shall proactively withdraw the administrative management budget allocated by the competent authority (if any) to cover the payment to the person suffering losses. Based on the amount paid to the person suffering losses, the responsible compensation agency shall compile and report to the financial agency to supplement the compensation fund to repay the advance payment made to the person suffering losses.

2. In cases where the responsible compensation agency does not have sufficient budget to cover the advance payment to the person suffering losses as stipulated in Clause 1 of this Article, it shall prepare a dossier requesting allocation of the compensation fund and submit it to the competent authority for payment to the person suffering losses in accordance with regulations.

Article 6. Procedures for Supplementing and Allocating Compensation Funds

1. In cases where the responsible compensation agency has advanced its budget to pay compensation to the person suffering losses:

In cases where the responsible compensation agency has advanced funds to pay compensation to the person suffering losses, within five working days from the date of completion of compensation as prescribed in the judgment or decision on compensation, the responsible compensation agency shall collect all related dossiers and submit them to the financial agency at the same level responsible for ensuring the funds for review and supplementary funding. The time limit for reviewing and allocating additional funds is as prescribed in Point c, Clause 2 and Clause 3 of this Article. If the responsible compensation agency has a superior supervisory agency, it shall send the dossier to the superior supervisory agency for review and then submit it to the financial agency responsible for ensuring the funds for consideration of supplementary funding. The time limit for reviewing and allocating additional compensation funds is as prescribed in Points b and c, Clause 2 and Clause 3 of this Article.

2. In cases where the responsible compensation agency has not advanced its budget to cover the advance payment to the person suffering losses.

c) The compensation request dossier shall be implemented in accordance with Article 54 of the Law on State Compensation Liability. If the dossier is not valid, the agency receiving the dossier shall guide the responsible compensation agency to supplement the dossier or modify and supplement the decision on compensation appropriately. The deadline for supplementing the dossier shall not exceed fifteen days from the date of receipt of the document requesting supplementation from the superior supervisory agency.

3. Within ten working days from the date of receipt of a valid compensation request dossier, the financial agency responsible for ensuring the funds (the Ministry of Finance for central agencies responsible for compensation or the Department of Finance for local agencies responsible for compensation) shall be responsible for allocating supplementary funds to the responsible compensation agency to pay to the person suffering losses. For complex cases involving large amounts of money requiring examination and verification, the financial agency shall consult with the state management agency on compensation and relevant agencies to temporarily allocate funds for compensation payments. After the responsible compensation agency completes the compensation dossier and determines the responsibility for repayment of individuals and organizations, it shall issue a document to the financial agency for review and notification of the supplementary budget estimate.

c) The claim compensation application file shall be implemented in accordance with the provisions of Article 54 of the Law on State Compensation Liability. In cases where the file is not valid, the agency receiving the file shall guide the responsible compensation agency to supplement the file or amend the decision on compensation resolution accordingly. The deadline for supplementing the file shall not exceed fifteen days from the date of receipt of the request document from the higher management agency.

3. Within ten working days from the date of receipt of a valid claim compensation application file, the financial agency responsible for ensuring funds (the Ministry of Finance for central agencies responsible for compensation or the Department of Finance for local agencies responsible for compensation) shall ensure additional funding for the responsible compensation agency to pay to the person suffering losses. In cases involving complex matters with large amounts requiring inspection and review, the financial agency shall consult with the state management agency on compensation and related agencies to temporarily allocate funds for compensation payments. After the responsible compensation agency completes the compensation file and determines the liability for repayment of individuals and organizations, it shall send a document to the financial agency for verification and notification of the supplementary budget estimate.

Article 7. Implementation of Compensation Payment

1. Within the latest five working days after withdrawing the administrative management expenditure budget or after receiving funds from the financial authority according to the provisions of Clause 6 of this Circular, the compensation responsible agency must organize the implementation of compensation payment to the person suffering losses or the relatives of the person suffering losses (hereinafter referred to collectively as the recipient of compensation funds).

2. The payment shall be made in one lump sum in cash to the recipient of compensation funds or transferred to their account at the request of the recipient of compensation funds, and must be notified at least two days in advance to the recipient of compensation funds for them to arrange for the receipt of compensation funds. In cases where the recipient of compensation funds requests payment by transfer, it shall be carried out according to the request of the transferee and notify the recipient of compensation funds.

3. The compensation payment must be recorded in a record consistent with the form of payment prescribed in Clause 2 of this Article, each party involved in the handover of compensation funds retains one copy.

Article 8. Settlement of Compensation Expenditure

1. The settlement of compensation expenditure shall be implemented in accordance with the provisions of the State Budget Law and guiding documents of the Law.

2. At the end of the fiscal year, the compensation responsible agency shall prepare the settlement of compensation expenditure paid, consolidate it in the annual budget settlement report and submit it to the Ministry of Finance (for central agencies) or the Department of Finance (for local agencies) in accordance with the laws on state budget.

For the compensation responsible agency that has a superior managing agency funded by the central budget, the settlement of compensation expenditure paid shall be consolidated in the annual budget settlement report of the agency and submitted to the superior managing agency for consolidation and submission to the Ministry of Finance in accordance with the laws on state budget.

Article 9. Collection and Submission of Repayment Funds

1. A public servant who causes damage due to fault has the obligation to repay to the state budget the amount that the state has compensated to the person suffering losses according to the decision of the competent authority.

2. The collection, management, and use of repayment funds shall be carried out in accordance with the provisions of the State Compensation Liability Law and Decree No. 16/2010/NĐ-CP dated March 3, 2010 of the Government detailing and guiding the implementation of certain articles of the State Compensation Liability Law. Some specific guidance contents are as follows:

a) Based on the decision to repay the state budget, the head of the agency funded by the state budget to implement compensation has the responsibility to urge the person responsible for repayment, coordinate with the head of the agency related to the public servant involved in the repayment to promptly recover the repayment funds and deposit them into the state budget at the Treasury on the territory according to Articles 62 and 63 of the State Compensation Liability Law.

b) In cases where repayment is made by gradually deducting from the monthly salary of the public servant, the minimum rate shall not be less than 10% and the maximum rate shall not exceed 30% of the monthly income from salary. The head of the agency managing civil servants must carry out the repayment responsibility by deducting the monthly salary of the civil servant required to repay according to the ratio decided by the Responsibility Assessment Council to deposit into the state budget that has been used to compensate for damages.

Section 2

EXPENSES FOR THE MANAGEMENT OF COMPENSATION ACTIVITIES

Article 10. Contents of expenditure for state management of compensation work

1. Expenditure on drafting normative legal documents on the State's liability for compensation.

2. Expenditure on disseminating and promoting normative legal documents on the State's liability for compensation.

3. Expenditure on seeking opinions from experts for complex cases involving multiple sectors, levels, or requiring specialized knowledge across various fields, as decided by the head of the agency.

4. Appraisal of assets, damage assessment of property and health damage to serve inspection, audit, complaint resolution, and accusation handling according to the laws on State compensation.

5. Expenditure on inter-sectoral meetings with central and local agencies to determine the responsible compensation agency when requested by the person suffering loss or the responsible compensation agency.

6. Expenditure on organizing working groups pursuant to the decision of the competent authority to determine the responsible compensation agency when requested by the person suffering loss or the responsible compensation agency; monitoring, inspecting, auditing the compensation resolution process; monitoring and urging payment of compensation money, and fulfilling the obligation to repay.

7. Expenditure on training and enhancing skills and expertise in compensation resolution and state management of compensation work for civil servants involved in State compensation work.

8. Expenditure on conferences, seminars, mid-term reviews, and final summaries serving state management of compensation work.

9. Expenditure on conducting investigations, surveys, reviews, statistics, data compilation; building and updating databases on State compensation work.

10. Other expenditures related to state management of compensation work.

Article 11. Budget Levels

1. For expenditure contents that have specific regulations on systems, standards, and quotas, they shall be implemented in accordance with current laws (as detailed in the Appendix attached to this Circular).

2. For expenditure on specialized management activities of State compensation work without specific budget levels, the heads of units shall apply the relevant provisions of current laws to similar activities.

Article 12. Preparation, Execution, and Settlement of State Budget Funds for State Management of Compensation Work

The preparation, execution, and settlement of funds for implementing state management of compensation work shall be carried out in accordance with the State Budget Law, Accounting Law, and other guiding documents.

Chapter III

IMPLEMENTING PROVISIONS

Article 13. Effective Date

This Circular takes effect from June 25, 2012.

Article 14. Implementation Organization

During implementation, if any difficulties arise, it is recommended that agencies, organizations, and individuals promptly report them to the Ministry of Finance and the Ministry of Justice for research and supplementary guidance as appropriate./.