Circular No. 73/2006/TT-BTC guides the establishment, management, and use of the Competition 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 provisions of the Law on Competition and Rewards and the Law Amending and Supplementing Certain Provisions of the Law on Competition and Rewards.

CIRCULAR

Guidelines for the establishment, management, and use of the Commendation Fund pursuant to Decree No. 121/2005/NĐ-CP dated September 30, 2005 of the Government detailing and guiding 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 of the Law on Encouragement of Competition and Rewards

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Pursuant to Decree No. 121/2005/NĐ-CP dated September 30, 2005 of the Government "detailing and guiding 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".

After reaching consensus with the Central Steering Committee for Encouragement and Reward, the Ministry of Finance provides guidance on the establishment, management, and use of the Commendation Fund for state agencies, organizations, public service units, and organizations funded by the State budget for regular operations as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Object and scope of application

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

a. Ministries, ministerial-level agencies, government agencies, the National Assembly Office, the President's Office, the Supreme People's Procuracy, the Supreme People's Court, the State Audit Office, and their subordinate budgetary units;

b. Provincial People's Committees, municipal people's committees under central cities; district, county, town, and city people's committees under provinces; village people's committees; People's Council offices at all levels; and specialized agencies under people's committees at all levels;

c. Political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations at all levels and their subordinate budgetary units;

d. State-owned enterprises;

e. Agricultural, forestry, fishery cooperatives, small-scale handicraft cooperatives, transport cooperatives, construction cooperatives, fishing cooperatives, salt-making cooperatives, and other professional cooperatives.

2. Principles for managing and using the Commendation Fund:

- The head of the agency or unit that issues the commendation decision shall be responsible for disbursing the award money accompanying the commendation form from the agency or unit's Commendation Fund.

- For cases where collective or individual entities under central ministries, sectors, mass organizations, and localities are awarded by the Prime Minister or the President, the relevant ministries, sectors, mass organizations, and localities proposing the commendation shall be responsible for allocating funds from their own Commendation Funds to disburse the awards.

- The Commendation Fund must be used for its intended purpose, transparently, and publicly, and annual reports on the fund's usage must be submitted according to current regulations.

- Any surplus in the Commendation Fund at year-end that has not been fully utilized may be carried over to the next year for continued use in encouragement and reward activities.

II. SPECIFIC PROVISIONS

1. Sources and allocation rates for the Commendation Fund:

a. The Commendation Fund of Ministries, ministerial-level agencies, government agencies, the National Assembly Office, the President's Office, the Supreme People's Procuracy, the Supreme People's Court, the State Audit Office, and their subordinate budgetary units:,and units included in the budgetary plan:

- Sources of formation:

 + From the annual state budget expenditure plan allocated by the competent authority.

           + From contributions by domestic and foreign organizations and individuals for the purpose of encouragement and reward (if applicable).

           + From other lawful sources permitted to be allocated (if applicable).

           - Regarding the allocation rate from the state budget expenditure plan to establish the fund:

Annually, based on the state budget expenditure plan already allocated by the competent authority; based on the total salary fund according to rank and grade of the number of officials, civil servants, and employees within the establishment and approved annual wages (excluding the salary fund according to rank and grade of public service units self-financing all regular operational costs); based on the results of the previous year's Commendation Fund utilization and the projected total commendation expenditure for the current year, the agencies shall allocate the Commendation Fund up to a maximum of 15% of the total salary fund according to rank and grade of the number of officials, civil servants, and employees within the establishment and approved annual wages mentioned above.

Based on the total amount allocated for the Commendation Fund, based on the needs for encouragement and reward expenditures of the agency and its subordinate budgetary units; the head of the superior agency decides the amount of the Commendation Fund for the agency and its subordinate budgetary units appropriately.

The Commendation Fund is allocated together with the annual state budget expenditure plan according to current regulations.

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

- Sources of formation:

 + From the annual state budget expenditure plan allocated by the competent authority to the provincial budget, district budget, and commune budget.

           + From contributions by domestic and foreign organizations and individuals for the purpose of encouragement and reward if applicable.

           + From other lawful sources permitted to be allocated (if applicable).

- Regarding the allocation rate from the state budget expenditure plan:

Based on the state budget expenditure plan allocated by superiors and the allocation rate for establishing the Commendation Fund stipulated in Clause 2, Article 66 of Decree No. 121/2005/NĐ-CP dated September 30, 2005 of the Government detailing and guiding 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; the People's Committees at all levels in localities submit to the People's Councils at the same level to decide the state budget expenditure plan for the task of allocating the Commendation Fund in the annual budget plan. The maximum rate is 1% of the regular state budget expenditure of the respective level in plains provinces and cities, and 1.5% of the regular state budget expenditure of the respective level in mountainous, midland, Central Highlands, remote, and far-flung areas.

BASED ON THE ANNUAL COMPETITION AND RECOGNITION SITUATION, THE CHAIRMAN OF THE PEOPLE'S COMMITTEE AT ALL LEVELS DECIDES TO ASSIGN THE AMOUNT OF THE COMPETITION AND RECOGNITION FUND FOR SUBORDINATE BUDGET UNITS ALONG WITH THE ANNUAL STATE BUDGET EXPENDITURE ESTIMATE IN ACCORDANCE WITH CURRENT REGULATIONS.

c. THE COMPETITION AND RECOGNITION FUND OF POLITICAL ORGANIZATIONS AND POLITICAL-SOCIAL ORGANIZATIONS:

- Sources of formation:

+ ALLOCATED FROM THE ANNUAL STATE BUDGET EXPENDITURE ESTIMATE AS ASSIGNED BY THE AUTHORIZED AUTHORITIES;

+ CONTRIBUTIONS FROM DOMESTIC AND FOREIGN ORGANIZATIONS AND INDIVIDUALS FOR THE PURPOSE OF COMPETITION AND RECOGNITION (IF ANY).

+ FROM OTHER LEGAL SOURCES PERMITTED TO BE DRAWN (IF ANY).

- REGARDING ALLOCATION FROM THE ANNUAL STATE BUDGET EXPENDITURE ESTIMATE:

EACH YEAR, BASED ON THE NATURE OF ACTIVITY AND THE RESULTS OF THE IMPLEMENTATION OF THE COMPETITION AND RECOGNITION FUND IN THE PREVIOUS YEAR; THE TOTAL AMOUNT OF EXPENSES FOR COMPETITION AND RECOGNITION IN THE CURRENT YEAR IS PROJECTED AND BASED ON THE STATE BUDGET EXPENDITURE ESTIMATE ASSIGNED BY THE AUTHORIZED AUTHORITIES, POLITICAL ORGANIZATIONS AND POLITICAL-SOCIAL ORGANIZATIONS SHALL CONSULT WITH THE FINANCE DEPARTMENT TO ALLOCATE THE FUNDS FOR THE COMPETITION AND RECOGNITION FUND IN THE STATE BUDGET EXPENDITURE ESTIMATE IN ACCORDANCE WITH THE REGULATED SYSTEM.

BASED ON THE FUNDS ALLOCATED TO ESTABLISH THE COMPETITION AND RECOGNITION FUND, POLITICAL ORGANIZATIONS AND POLITICAL-SOCIAL ORGANIZATIONS SHALL DISTRIBUTE THE COMPETITION AND RECOGNITION FUND TO THEIR OWN LEVEL OF MANAGEMENT AND TO SUBORDINATE BUDGET UNITS IN A SUITABLE MANNER.

d. THE COMPETITION AND RECOGNITION FUND OF PUBLIC SERVICE ENTERPRISES:

- FOR PUBLIC SERVICE ENTERPRISES THAT SELF-FINANCE ALL REGULAR OPERATING COSTS: EXPENSES FOR COMPETITION AND RECOGNITION ARE FUNDED FROM THE RECOGNITION FUND ESTABLISHED IN ACCORDANCE WITH THE FINANCIAL REGIME APPLICABLE TO THE ENTERPRISE AND FROM CONTRIBUTIONS FROM ORGANIZATIONS AND INDIVIDUALS FOR THE PURPOSE OF COMPETITION AND RECOGNITION (IF ANY).

- FOR PUBLIC SERVICE ENTERPRISES THAT SELF-FINANCE PART OF THE REGULAR OPERATING COSTS: EXPENSES FOR COMPETITION AND RECOGNITION ARE FUNDED FROM THE COMPETITION AND RECOGNITION FUND ASSIGNED BY THE SUPERIOR MANAGING AUTHORITY IN THE STATE BUDGET EXPENDITURE ESTIMATE, FROM THE RECOGNITION FUND ESTABLISHED IN ACCORDANCE WITH THE FINANCIAL REGIME APPLICABLE TO THE ENTERPRISE, AND FROM CONTRIBUTIONS FROM ORGANIZATIONS AND INDIVIDUALS FOR THE PURPOSE OF COMPETITION AND RECOGNITION (IF ANY).

- FOR PUBLIC SERVICE ENTERPRISES THAT ARE FULLY FUNDED BY THE STATE BUDGET FOR REGULAR OPERATING COSTS: THE AMOUNT OF THE COMPETITION AND RECOGNITION FUND IS ESTABLISHED FROM THE STATE BUDGET EXPENDITURE ESTIMATE ASSIGNED BY THE AUTHORIZED AUTHORITIES AND FROM CONTRIBUTIONS FROM ORGANIZATIONS AND INDIVIDUALS FOR THE PURPOSE OF COMPETITION AND RECOGNITION (IF ANY).

đ. FOR PROFESSIONAL-POLITICAL SOCIAL ORGANIZATIONS, SOCIAL ORGANIZATIONS, AND PROFESSIONAL-SOCIAL ORGANIZATIONS THAT ARE SUPPORTED BY THE STATE BUDGET TO COVER REGULAR OPERATING COSTS FOR THE NUMBER OF STAFF MEMBERS ASSIGNED BY THE AUTHORIZED AUTHORITIES; THE AMOUNT OF THE COMPETITION AND RECOGNITION FUND DRAWN FROM THE STATE BUDGET SUPPORT SHOULD NOT EXCEED 15% OF THE SALARY POOL OF THE NUMBER OF STAFF MEMBERS ASSIGNED BY THE AUTHORIZED AUTHORITIES.

FOR OTHER PROFESSIONAL-POLITICAL SOCIAL ORGANIZATIONS, SOCIAL ORGANIZATIONS, AND PROFESSIONAL-SOCIAL ORGANIZATIONS, THE AMOUNT OF THE COMPETITION AND RECOGNITION FUND IS DETERMINED BY THESE ORGANIZATIONS FROM THEIR OWN FINANCES AND FROM CONTRIBUTIONS FROM DOMESTIC AND FOREIGN INDIVIDUALS AND ORGANIZATIONS AND FROM OTHER LEGAL SOURCES.

e. THE COMPETITION AND RECOGNITION FUND OF STATE ENTERPRISES IS DRAWN FROM THE RECOGNITION FUND OF THE UNIT IN ACCORDANCE WITH CURRENT REGULATIONS FOR ENTERPRISES.

g. COOPERATIVES IN AGRICULTURE, FORESTRY, FISHERIES, SMALL INDUSTRY, TRANSPORT, CONSTRUCTION, SALT INDUSTRY, AND OTHER PROFESSIONAL COOPERATIVES SHALL IMPLEMENT THE ESTABLISHMENT OF THE COMPETITION AND RECOGNITION FUND IN ACCORDANCE WITH THE LAW ON COOPERATIVES.

2. CONTENT AND AMOUNT OF EXPENSES FROM THE COMPETITION AND RECOGNITION FUND:

a. CONTENT OF EXPENSES:

- EXPENSES FOR PRINTING CERTIFICATES, AWARDS, MEDALS, COMMEMORATIVE BADGES, BADGES, COMPETITION FLAGS, FRAMED AWARDS UNDER CONTRACTS WITH PRODUCTION UNITS.

SPECIFICALLY, EXPENSES FOR PRINTING AWARDS, MAKING FRAMED AWARDS, FLAGS, MEDALS, AND DECORATIONS FOR RECOGNITION FORMATS DECIDED BY THE PRIME MINISTER AND THE PRESIDENT ARE HANDLED BY THE NATIONAL COMPETITION AND RECOGNITION BOARD FROM THE STATE BUDGET FUNDS; EXPENSES FOR PRINTING CERTIFICATES, AWARDS, AND FLAGS FOR RECOGNITION FORMATS DECIDED BY THE PROVINCE PEOPLE'S COMMITTEE ARE HANDLED BY THE PROVINCIAL COMPETITION AND RECOGNITION ORGANIZATION (BOARD OR COUNCIL) FROM LOCAL BUDGET FUNDS.

- EXPENSES FOR CASH AWARDS OR REMEMBRANCE GIFTS ACCOMPANYING RECOGNITION FORMATS FOR INDIVIDUALS AND GROUPS DECIDED TO BE RECOGNIZED BY THE AUTHORIZED AUTHORITIES.

b. AMOUNT OF CASH AWARDS: IMPLEMENTED IN ACCORDANCE WITH ARTICLES 69, 70, 71, 72, 73, AND 74, SECTION 3, CHAPTER V OF DECREE NO. 121/2005/ND-CP OF SEPTEMBER 30, 2005, ISSUED BY THE GOVERNMENT.

IF THE SAME PERSON OR GROUP RECEIVES DIFFERENT AWARDS AND RECOGNITION FORMATS FOR THE SAME ACHIEVEMENT AT THE SAME TIME, THEY WILL RECEIVE THE HIGHEST AMOUNT OF CASH AWARD (OR ACCOMPANYING GIFTS) ACCORDINGLY.

3. ACCOUNTING AND SETTLEMENT OF STATE BUDGET EXPENSES FOR THE COMPETITION AND RECOGNITION FUND:

WHEN WITHDRAWING THE BUDGET ESTIMATE TO TRANSFER INTO THE COMPETITION AND RECOGNITION FUND, IT IS ACCOUNTED FOR UNDER ITEM 134 "OTHER EXPENSES", SUBITEM 26 "EXPENSES FOR THE COMPETITION AND RECOGNITION FUND ACCORDING TO DECREE NO. 121/2005/ND-CP OF SEPTEMBER 30, 2005, ISSUED BY THE GOVERNMENT".

ORGANIZATIONS AND UNITS MUST OPEN A DEPOSIT ACCOUNT FOR THE COMPETITION AND RECOGNITION FUND AT THE STATE TREASURY OR COMMERCIAL BANK (FOR FUNDS WITHOUT A STATE BUDGET SOURCE) FOR MANAGEMENT AND MUST MAINTAIN RECORDS OF INCOME AND EXPENSES OF THE FUND IN ACCORDANCE WITH CURRENT REGULATIONS.

THE WITHDRAWAL FROM THE BUDGET ESTIMATE TO ESTABLISH THE COMPETITION AND RECOGNITION FUND IN A GIVEN YEAR IS SETTLED IN THE BUDGET YEAR OF THAT YEAR.

EACH YEAR, ORGANIZATIONS AND UNITS MUST REPORT THE SETTLEMENT OF THE USE OF THE COMPETITION AND RECOGNITION FUND AND THIS INFORMATION MUST BE INCLUDED IN THE ANNUAL SETTLEMENT REPORT OF THE ORGANIZATION OR UNIT IN ACCORDANCE WITH CURRENT REGULATIONS.

III. IMPLEMENTATION

THIS CIRCULAR TAKES EFFECT 15 DAYS AFTER ITS PUBLICATION IN THE GAZETTE AND REPLACES CIRCULAR NO. 25/2001/TT-BTC OF APRIL 16, 2001, ISSUED BY THE MINISTRY OF FINANCE GUIDING THE MANAGEMENT OF FINANCIAL WORKS TO IMPLEMENT THE RECOGNITION SYSTEM FOR OUTSTANDING ACHIEVEMENTS IN ECONOMIC AND SOCIAL TASKS AND NATIONAL DEFENSE.

In addition to the Competition and Reward Fund allocated in accordance with the guidelines set forth in this Circular, other reward systems shall be implemented in accordance with current laws.

During the implementation process, if there are any difficulties, it is recommended that agencies report them to the Ministry of Finance for supplementation and amendment as necessary ./ .