Circular No. 76/2006/TT-BTC guiding the implementation of Decree No. 68/2006/NĐ-CP dated July 18, 2006 of the Government detailing and guiding the implementation of certain Articles of the Law on Thrift and Combating Wastefulness.

CIRCULAR

Guidelines for implementing Decree No. 68/2006/NĐ-CP dated July 18, 2006

of the Government detailing and guiding the implementation of certain Articles of the Law on Thrift and Anti-Waste

Decree No. 68/2006/NĐ-CP dated July 18, 2006 of the Government detailing and guiding the implementation of certain Articles of the Law on Thrift and Anti-Waste, the Ministry of Finance provides guidelines for implementing certain provisions of the Decree as follows:

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On the basis of I. On Standards, Criteria, and Regulations:

1. Standards, criteria, and regulations issued by competent state agencies serve as the basis for implementing, evaluating, inspecting, auditing, and supervising thrift and anti-waste activities, including standards, criteria, and regulations defined in terms of physical goods; monetary value; labor and working hours (hereinafter referred to collectively as standards, criteria, and regulations).

2. Standards, criteria, and regulations issued by competent state agencies must meet the following conditions:

a) Issued within the scope of authority,

in accordance with the provisions of the law. b) Based on scientific grounds that are consistent with technological progress and ensure requirements for thrift and anti-waste.

c) Consistent with reality and capable of ensuring implementation (through state budget funds, financial resources as prescribed by law for monetary standards, criteria, and regulations; through materials, raw materials, and other physical goods for physical standards, criteria, and regulations; through labor and working hours for labor standards). d) Publicized to relevant agencies, organizations, and entities subject to implementation according to the provisions of the law.

3. During the implementation of standards, criteria, and regulations, if it is found that they do not meet the conditions stipulated in Point 2 of this Section and Clause 2 of Article 7 of Decree No. 68/2006/NĐ-CP dated July 18, 2006 detailing and guiding the implementation of certain provisions of the Law on Thrift and Anti-Waste, or do not meet the requirements for thrift and anti-waste, then the agencies, organizations, and entities subject to implementation have the responsibility to promptly amend and supplement within their authority or report to the competent authority for consideration and amendment to ensure compliance.

II. On Programs for Thrift and Anti-Waste:

1. Programs for thrift and anti-waste (hereinafter referred to collectively as Programs) serve as the basis for organizing and implementing thrift and anti-waste activities in agencies and organizations. All agencies and organizations entrusted with managing and using state budgets, money, state assets, labor, and working hours in the public sector, and natural resources must develop Programs for thrift and anti-waste. 2. Programs for thrift and anti-waste include annual programs and long-term programs:

a) Annual programs are developed annually along with the time frame for developing socio-economic development plans.

b) Long-term programs are developed based on the requirements for developing socio-economic development plans for each period and guidance from competent state agencies.

3. When developing Programs, agencies and organizations must base them on socio-economic development plans, functions, tasks, assigned resources, and guidance from competent state agencies (if any) to determine specific goals to be achieved, measures to implement these goals, and evaluation criteria. Specifically:

a) Regarding goals: clearly define the goals for saving state budget funds, money, assets, labor, working hours, and natural resources.

b) Regarding measures: include organizational management measures, administrative reform, technological innovation, application of scientific and technological advances, enhanced responsibility, and other measures (if any).

c) Regarding evaluation criteria: must be linked to the set goals to evaluate the results achieved (expressed in terms of money saved, materials, raw materials, assets, natural resources, labor, and working hours saved); while evaluating quantity, quality performance according to assigned functions and tasks, effectiveness of management activities must also be evaluated.

4. Programs for thrift and anti-waste must be submitted to higher-level agencies for consolidation into Programs for thrift and anti-waste of ministries, sectors, and localities for direction and organization of implementation, and sent to the Ministry of Finance for consolidation into an overall Program to be approved by the Government according to Article 11 of Decree No. 68/2006/NĐ-CP dated July 18, 2006 of the Government.

5. At the end of the planning year and the final year of implementing long-term Programs for thrift and anti-waste (if applicable), agencies and organizations must conduct mid-term reviews, summaries, and report the results of implementation to higher-level management agencies to consolidate into the results of implementation of ministries, sectors, and localities. Reports of ministries, sectors, and localities must fully cover the following contents:

a) The situation regarding the implementation of thrift and anti-waste measures outlined in the Government's Program, the Program of ministries, sectors, and localities.

b) Results of thrift and anti-waste efforts in monetary and physical terms achieved in various fields: management and use of state budget funds; construction investment, projects funded by the state budget, money, and state assets; land management and use, office premises, official residences, means of transportation, work equipment; management, exploitation, and use of natural resources; training, management, and use of labor and working hours; management and use of state capital and assets at enterprises; production and consumption by the people.

c) Evaluation of the situation regarding thrift and anti-waste within the scope of management; positive changes in content and activities, areas without change; causes and measures to address issues.

d) Other contents (difficulties, proposals, recommendations...).

III. On Certain Provisions for Thrift and Anti-Waste:

1. Management and use of commissions:

d) Other contents (obstacles, proposals, recommendations...).

III. On certain provisions for practicing thrift and combating waste:

1. Management and use of commissions:

a) When using state budget funds or self-managed financial resources to purchase, repair transportation means, working equipment, other assets, or pay for services, if receiving commissions, entities, organizations, and individuals must declare and promptly return them fully to the managing entity or organization and manage and use them as follows:

- Commissions received in cash shall be treated as state budget funds or self-managed funds, managed and used like regular operating funds of the entity or organization;

- For commissions received in kind, the entity or organization must manage and use them according to the current asset management regulations. Commissions received in kind that the entity or organization does not need to use must be publicly auctioned to collect money and managed and used according to the regulations applicable to cash commissions.

b) Entities and organizations must disclose declarations, returns, management, and use of commissions. Disclosure of commissions is part of the disclosure of assets and finances of entities and organizations, implemented through the following forms:

- Commissions received in cash must be disclosed in the financial reports of the entity or organization.

- Commissions received in kind must be disclosed in the public report on asset management and use of the entity or organization.

2. Regarding recycling, reusing resource projects and renewable energy sources:

a) Recycling, reusing resource projects and utilizing renewable energy sources are new or expanded production projects that use expired products, discarded items, or energy from wind, tidal, solar, geothermal, biomass, and other renewable energy sources.

Investment projects for recycling, reusing resources, or utilizing renewable energy sources (referred to as Projects) enjoy incentives under current laws and the incentives stipulated in Article 18 of Decree No. 68/2006/NĐ-CP detailing and guiding the implementation of certain provisions of the Law on Thrift and Anti-Waste when meeting the following conditions:

- The project is approved by the competent authority.

- Upon implementation, the project will achieve specific savings in resources and energy.

- Ensuring environmental standards and committing to environmental protection.

b) The application dossier for incentive policies includes:

- Decision approving the project by the competent authority.

- Investment certificate issued by the competent authority (if any).

- Explanation of the method for determining specific savings in resources and energy of the Project and forecasts of specific savings achieved, confirmed by the competent authority.

- Other documents and materials to prove the significance and savings results of the Project.

IV. Inspection and Audit of Thrift and Anti-Waste:

1. Inspection and audit of thrift and anti-waste are part of the inspection and audit activities within the jurisdiction and management functions of entities and organizations. In administrative inspections and specialized inspections, the content of inspection and audit of thrift and anti-waste must be included.

2. On inspection:

Entities and organizations must regularly conduct self-inspection and develop plans for inspecting thrift and anti-waste within their organization and subordinate units. The inspection content includes:

a) Inspecting the implementation of management regulations by state agencies related to thrift and anti-waste such as: management and use of office premises, transportation means, working equipment, electricity, water, telephone, labor management, working hours...

b) Inspecting the management of state budget, money, state assets, natural resources according to the Law on Thrift and Anti-Waste.

c) Inspecting the implementation of goals, measures, and plans for thrift and anti-waste in the annual and long-term Thrift and Anti-Waste Program (if any).

3. On audit:

The audit agency must include the audit of thrift and anti-waste in its annual audit plan. The audit content includes:

a) Auditing the establishment of standards, norms, systems; the issuance of regulatory documents, management documents based on the principle of thrift and anti-waste. Standards, norms, systems, and management documents that do not meet the requirements of thrift and anti-waste must be identified and handled according to the Law on Thrift and Anti-Waste.

b) Auditing the implementation of standards, norms, systems established by state agencies in the management of state budget, money, state assets, natural resources, labor, working hours in the public sector.

c) Auditing the implementation of the thrift and anti-waste program of ministries, sectors, localities, and the Government.

4. Handling the results of audit and inspection.

Violations of the law on thrift and anti-waste discovered through inspection and audit must be strictly dealt with according to the provisions of the law on compensation for damages, disciplinary action, and administrative penalties in thrift and anti-waste. The handling results of violations must be disclosed according to the provisions of the Law on Thrift and Anti-Waste.

V. Management and Use of Savings from Operating Funds:

1. State agencies implementing the self-management mechanism, responsible for using staffing and administrative management funds, or public service units implementing the self-management system, responsible for performing tasks, organizational structure, staffing, and finance may use saved funds to support the operation of the entity or organization and increase income for civil servants, public officials, civil servants, and employees according to current mechanisms.

2. For agencies and organizations that have not implemented the self-management mechanism and self-responsibility for staffing and administrative management expenses, or that exercise self-management and self-responsibility for task implementation, organizational structure, staffing, and finance, the saved funds from operational expenses shall be managed and utilized as follows:

a) At the end of the fiscal year and after completing assigned tasks, agencies and organizations using operational funds from state budget sources must reconcile actual expenditures with approved operational budgets to determine the amount of saved operational funds, on this basis, they shall request the competent financial authority to review and confirm.

b) The saved funds from operational expenses, after being confirmed by the competent financial authority, shall be retained by the agency or organization for the following purposes:

- Allocate at least 50% of the saved funds to supplement operational funds for the agency or organization.

- Allocate up to 30% of the saved funds to reward collectives and individuals for their achievements in practicing thrift and combating waste.

- The remainder shall be used for propaganda and mobilization activities promoting thrift and combating waste, and for welfare activities within the agency or organization.

c) The plan for utilizing saved funds shall be decided by the head of the agency or organization after reaching a written consensus with the agency's or organization's Trade Union.

If the saved funds are not fully utilized in the year, they may be carried over to the next year for continued use. Management, utilization, and settlement of saved funds shall be conducted in accordance with the provisions of the State Budget Law and guiding documents.

VI. Implementation:

1. Ministers, Heads of ministerial-level agencies, government-affiliated agencies, Chairpersons of People's Committees at all levels, and heads of agencies and organizations are responsible for organizing and implementing this Circular.

2. This Circular shall take effect fifteen days after its publication in the Official Gazette.

During the implementation process, if there are difficulties or obstacles, units are requested to report them to the Ministry of Finance for timely amendments and supplements to ensure appropriateness./.