Circular No. 81/2002/TT-BTC guides the control of expenditures for administrative state agencies implementing quota staffing and administrative management expenses; and units applying financial systems for revenue-generating public institutions.

CIRCULAR

Guidelines for Controlling Expenditures for Administrative State Agencies

Implementing the Quota System for Staff Complement and Administrative Management Costs; Units

Implementing the Financial System Applicable to Revenue-Generating Public Service Units 

Pursuant to Decision No. 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister on piloting the quota system for staff complement and administrative management costs for state administrative agencies and Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government on the financial system applicable to revenue-generating public service units, the Ministry of Finance guides the control of state budget expenditures through the State Treasury as follows:

I. General Provisions:

1/ Scope of Application: Implemented according to the provisions of Circular Joint Circular No. 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002 of the Ministry of Finance and the Government Organizational Cadre Department; Circular No. 25/2002/TT-BTC dated March 21, 2002 of the Ministry of Finance; other regulatory documents guiding the implementation of Decision No. 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister and Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government.

2/ The Ministry of Finance, Provincial Departments of Finance and Prices, District and County Finance Offices under provinces and centrally-administered cities (hereinafter referred to collectively as financial authorities) shall be responsible for participating with the competent authorities in reviewing and approving expenditure quotas for administrative agencies; auditing budgets for revenue-generating public service units, inspecting the use of funds, approving final accounts of units, and consolidating state budget final accounts.

3/ Internal expenditure regulations and salary payment systems implemented by administrative agencies piloting the expenditure quota system shall be established in accordance with the provisions at Point 3, Section III of Joint Circular No. 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002 of the Ministry of Finance and the Government Organizational Cadre Department; internal expenditure standards and systems established by public service units implementing the autonomous financial mechanism shall be based on the provisions of Sections III and IV of Circular No. 25/2002/TT-BTC dated March 21, 2002 of the Ministry of Finance. Except for the following standards and systems which must be implemented in accordance with national regulations: the system for implementing state-level and ministry-level scientific research projects; national target programs; expenses for executing government orders; matching funds for projects with foreign capital; construction investment, equipment procurement, fixed asset purchases (such as cars, machinery, equipment, etc.), major repairs, investment project execution, telephone usage, and expenses for urgent tasks assigned by authorized bodies.

4/ The State Treasury shall be responsible for controlling expenditure files, vouchers, and conditions, and promptly disbursing and settling state budget expenditures in accordance with regulations. Participating with financial authorities and authorized state management agencies in inspecting the use of state budgets and confirming actual state budget expenditures through the State Treasury of units.

The State Treasury has the right to temporarily suspend, refuse to settle payments, and notify the unit using state budget funds and send to the same-level financial authority for resolution in the following cases:

Expenditure not in accordance with the approved budget purpose and object.

Expenditure not in accordance with the prescribed expenditure standards and quotas.

Not meeting the expenditure conditions stipulated in this Circular.

5/ Units using the state budget must open accounts at the State Treasury; subject to inspection and control by financial authorities and the State Treasury during the management and use of the state budget; responsible for using funds for their intended purposes effectively and fully accountable for their expenditure decisions.

6/ Foreign currency revenues, the State Treasury will convert into Vietnamese Dong at the exchange rate published by the State Bank. Foreign currency expenditures, in-kind expenditures, and labor days will be converted and recorded as expenditures in Vietnamese Dong according to the exchange rates, in-kind prices, and labor day prices set by authorized bodies.

7/ During the management, disbursement, and settlement of state budget expenditures, incorrect expenditures must be recovered and reduced based on the decision of the financial authority or the authorized body, and the State Treasury will implement the recovery and reduction of state budget expenditures.

II. Control, Disbursement, and Settlement for State Administrative Agencies Implementing the Quota System for Staff Complement and Administrative Management Costs:

1/ For expenditure items under the quota system:

Based on the provisions of Joint Circular No. 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002 of the Ministry of Finance and the Government Organizational Cadre Department and the pilot quota implementation plan approved by the authorized body, the agency implementing the pilot quota shall establish internal expenditure regulations and salary payment systems to be decided upon by the staff conference of the agency, sent to the financial authority and the same-level State Treasury for disbursement and settlement.

1.1- Conditions for Disbursement and Settlement:

The State Treasury shall carry out disbursement and settlement of expenditure quotas for units when all of the following conditions are met:

Approval by the authorized body allowing the unit to implement the quota system for staff complement and administrative management costs and the allocated quota funds.

The unit's expenditure budget has been approved within the scope of the allocated quota according to the state budget classification.

There are sufficient funds for settlement.

It has been approved by the head of the unit or the authorized person.

There are complete supporting documents for each expenditure item. Depending on the nature of each expenditure item, the settlement documents include:

For salary and allowance expenditures, they include the registered staff complement, the approved salary fund, the unit's salary payment plan, the list of recipients, the staff complement increase/decrease report, and the salary fund.

For expenditures on purchasing materials, equipment, minor repairs, the documents include: approved purchase and minor repair budget, tender approval decision (if required), purchase contract, supplier quotation, and other related documents such as checks, payment orders...

For other regular items listed in the payment voucher with the signature of the Head or authorized representative, and the Chief Accountant.

1.2- Control andpayment:

When there is a needfor payment, the unit that implements the allocated expenditure sends to theState Treasury at the transaction location the following related documents andpayment vouchers:

Payment authorization

The request for budgetlimit withdrawal accompanied by a detailed list of expenditures according tothe budget classification (for expenditures whose nature has been determined)serving as the basis for the State Treasury to record government budgetexpenditures. Although the funds are allocated under item 134 (other expenses),according to current regulations when withdrawing budget limits, they must bedetailed into specific expenditure items in the budget classification. Therefore,for those expenditures whose nature has not yet been determined, the StateTreasury temporarily records them under item 134 and requires the unit to clearlydefine the budget expenditure item for each expenditure before making the nextpayment.

1.3- Allocation andpayment for major expenditures:

Salary and wageexpenses:

For rank and positionwages: The State Treasury bases on items 100, 101, and 102 in the budget allocationunder the budget classification to make payments to the unit.

For additional salarycomponents: The State Treasury bases on the approved plan for using saved fundsissued by the competent authority in accordance with Point 7, Section II ofCircular Joint Circular 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002, issuedby the Ministry of Finance and the Government Civil Service Organization Boardto check and make payments to the unit.

Administrative andprofessional fees: Based on the allocated funds, the State Treasury makespayments according to the Head's proposal.

Procurement of materialsand regular maintenance of fixed assets shall be carried out in accordance withcurrent regulations.

For other expenditures:The State Treasury makes payments according to the account holder's proposal.The account holder is responsible under the law for their spending decisions.

2/ For expenditures notsubject to allocation as stipulated in Article 5 of Decision 192/2001/QĐ-TTgdated December 17, 2001, of the Prime Minister: Based on the approvedbudget of the agency, the State Treasury controls and makes payments for theseexpenditures to the unit in accordance with current regulations on regular andinvestment construction expenditure control.

3/ Regarding the use offunds saved: The State Treasurymakes payments to the unit in accordance with the regulation on the use of savedfunds established by the unit in compliance with the provisions of Point 7,Section II of Joint Circular No. 17/2002/TTLT/BTC-BTCCBCP dated February 8,2002, issued by the Ministry of Finance and the Government Civil ServiceOrganization Board.

4/ Handling of annualbudget limits:

For allocated funds: Ifnot fully spent, the remaining amount can be transferred to the next year foruse. The State Treasury handles as follows:

For budget limits: ByDecember 31st of each year, unused budget limits must be canceled. Simultaneously,based on the unit's request, the State Treasury restores the budget limit forthe canceled amount to the unit.

For balances in thedeposit account: The State Treasury transfers the balance to the next year forthe unit in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998,issued by the Ministry of Finance.

For non-allocatedfunds: Unused budget limits within the year cannot be transferred to the nextyear. Budget limits belonging to which level must be fully returned to thatlevel.

5/ Settlement:

Units implementingallocated expenditures settle accounts according to the specific budgetclassification items; confirming actual expenditures according to the budgetclassification of the State Treasury where the account is opened serves as thebasis for the unit to submit settlement reports to the superior managementagency and the same-level financial agency.

III. Control, allocationand payment for units implementing the financial mechanism of public serviceswith income:

1- Opening and usingaccounts:

The State Treasuryguides public service units with income to open two accounts:

A budget limit accountto receive state budget funds.

A deposit account tocarry out collection and payment of fees and charges under the state budget butwhich the unit is allowed to retain for its own use as prescribed.

For revenues andexpenditures from production and service provision activities, the unit mayopen an account at the State Treasury or bank.

Strictly prohibitshifting funds from the state budget into deposit accounts at banks. Transferringbudget limits from the budget limit account to the deposit account (for certainspecial cases) must be approved in writing by the head of the same-levelfinancial agency.

2- Conditions forallocation and payment:

The State Treasury onlyimplements allocation and payment for units when the following conditions are met:

2.1- Included in theapproved budget

For the first year, theunit's budget allocation has been approved by the main ministry (for centralpublic service units) and the People's Committee Chair at various levels(approved for local public service units) detailed according to the budgetclassification and some key expenditure items submitted to the superiormanagement agency, the financial agency, and the State Treasury where thetransaction takes place. In the following two years, the budget is prepared by theunit itself.

For unexpectedexpenditures outside the approved budget but cannot be delayed such as disasterrelief, fire fighting... The State Treasury bases on the decision of thecompetent authority to allocate and pay to the unit. The unit is responsible forsupplementing the budget within one month from the date of occurrence of theexpenditure.

For regular operationalactivities, if the unit does not have an approved budget at the beginning ofthe year; based on the unit's request, the State Treasury considers a temporaryadvance equal to one month of regular operational expenses of the previous year.

2.2- In accordance withthe standards, quotas, and regulations set by the competent state agencies.

For expenditures thatmust comply with national common standards, quotas, and regulations (as stipulatedin Point 3, Section I of this Circular), the expenditure amount does not exceedthe prescribed standards, quotas, and regulations.

For administrative management expenses (travel expenses, conference fees, telephone charges, service fees, etc.), operational expenses, salary expenses, and other expenses, the level of expenditure shall be decided by the head of the unit within the scope of the available funds, in accordance with the internal expenditure regulations and salary payment regulations of the unit which have been approved by the agency's civil servants.

2.3- Has been authorized for advance payment by the head of the unit or the person authorized to do so.

2.4- The unit's deposit account and budget limit still have sufficient balance.

3- Control and payment for certain main expense items:

3.1/ Control of salaries and wages:

Rank and position salaries: The State Treasury shall base on items 100, 101, and 102 in the budget allocation according to the state budget classification to control and pay the unit.

For additional salary from the unit's business income and savings from regular expenses, the State Treasury shall base on the approved salary payment plan to pay the unit, ensuring that the total approved salary fund does not exceed three times the national minimum wage (for units partially self-financing) and does not exceed 3.5 times (for fully financed units).

3.2/ For procurement expenses for materials and regular maintenance of fixed assets, they shall be carried out in accordance with current regulations.

3.3/ For administrative management expenses, specialized business expenses, and other expenses: within the scope of the unit's funds, the State Treasury shall implement payments based on the account holder's proposal. The account holder is responsible under the law for their spending decisions.

3.4/ Regarding the establishment and use of unit funds, the State Treasury shall implement according to the provisions of Article 17 and Article 18 of Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government on financial systems applicable to revenue-generating public institutions.

4- Allocation of state budget funds:

For the portion of state budget funds ensuring regular operations (units partially financing themselves), the finance authority allocates the budget limit to item 134 (other expenses). The State Treasury shall allocate funds to the unit and record them according to the state budget classification (if the purpose of the expenditure has been determined). In cases where the purpose of the expenditure has not yet been determined, the State Treasury shall make payments to the unit and temporarily record them under item 134, while requiring the unit to clearly define the purpose of the expenditure for actual recording according to the state budget classification before making subsequent payments.

5 - Recording of state budget revenues and expenditures:

For fees, charges, depreciation of fixed assets, disposal of fixed assets, and other revenues belonging to the state budget retained by the unit according to regulations, the unit must prepare detailed reports on actual revenues and expenditures according to the state budget classification every quarter and submit them to the finance authority for the recording of state budget revenues and expenditures for the unit. Based on the revenue and expenditure vouchers provided by the finance authority,n the State Treasury shall record state budget revenues and expenditures.

6- Handling of year-end budget transfers:

For state budget funds allocated to ensure regular operations, unused business revenues at the end of the year can be transferred to the next year for continued use. Based on the unit's request, the State Treasury shall transfer the budget limit and deposit account balance to the unit as guided in point 4 of Section II of this Circular for units implementing personnel quotas and administrative management budgets.

IV. Implementation Organization

1/ This Circular takes effect 15 days from the date of signature.

2/ Heads of Ministries, agencies equivalent to Ministries, agencies under the Government, Chairpersons of People's Committees at all levels, heads of administrative agencies implementing personnel quotas and administrative management budgets, units implementing financial systems for revenue-generating public institutions, finance authorities, and the State Treasury are responsible for organizing guidance and implementation of this Circular./.