Circular No. 81/2006/TT-BTC guides the expenditure control regime for public service units exercising autonomy and self-responsibility over tasks, organizational structure, staffing, and finance.

CIRCULAR

Guidelines for the expenditure control system for public service units operating under autonomy and self-responsibility for task implementation, organizational structure, staffing, and finance

exercising autonomy and self-responsibility for task implementation,

organizational structure, staffing, and finance

_________________________

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the State Budget Law; Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government; and Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government on autonomy and self-responsibility for task implementation, organizational structure, staffing, and finance for public service units; the Ministry of Finance issues guidelines for the state budget expenditure control system through the National Treasury for public service units exercising autonomy and self-responsibility for task implementation, organizational structure, staffing, and finance 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. Scope and regulated subjects:

This Circular guides the state budget expenditure control system through the National Treasury for public service units (independent budget entities with their own seals and bank accounts, having accounting organizations as prescribed by the Accounting Law) established by competent state authorities and exercising autonomy and self-responsibility for task implementation, organizational structure, staffing, and finance according to Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government (hereinafter referred to as public service units implementing the autonomous regime), including:

- Public service units operating in education and training, healthcare, social security, culture and information (including local radio and television units), sports, economic services, and other fields;

- For Voice of Vietnam Radio, Vietnam News Agency, and public service units with special operational procedures, the subject exercising autonomy and self-responsibility for finance is the subordinate public service units that meet the conditions of being independent budget entities, having their own seals and bank accounts, and organizing accounting systems as prescribed by the Accounting Law;

- Public service units under the Ministry of Defense, Ministry of Public Security, and political organizations, and political-social organizations exercising autonomy and self-responsibility for tasks, organizational structure, staffing, and finance according to Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government and Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance;

- Public service units currently implementing Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government on financial regulations applicable to revenue-generating public service units transitioning to the autonomous regime according to Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government and Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance;

For public science and technology organizations implementing the autonomous mechanism, expenditure control through the National Treasury shall be carried out according to Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government; Joint Circular No. 12/2006/TTLT/BKHCN-BTC-BNV dated June 5, 2006 of the Ministry of Science and Technology, Ministry of Finance, and Ministry of Home Affairs guiding the implementation of Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government, and according to the principles and procedures for control and payment stipulated in this Circular.

2. Principles for management, allocation, and payment of state budget expenditures through the National Treasury:

2.1. Public service units implementing the autonomous regime must open accounts at the National Treasury to conduct receipts and payments through the National Treasury for funds from the state budget as prescribed by the State Budget Law (including state budget funds allocated, revenues and expenditures as prescribed for fees and charges from the state budget, and other state budget funds if any); they must comply with the supervision and control of the National Treasury during the process of concentrating and using state budget funds.

For service, joint venture, and joint operation revenues and expenditures, public service units implementing the autonomous regime may open accounts at the National Treasury or banks for transactions and payments. The National Treasury does not supervise these revenues and expenditures of the unit (even if the unit opens an account at the National Treasury).

2.2. All state budget expenditures must be supervised and controlled during the payment and settlement process. Expenditures must be included in the state budget approved by the competent authority; they must comply with the state budget expenditure regulations, standards, and quotas prescribed by state authorities or internal expenditure regulations set by the unit; and they must have been decided by the head of the public service unit implementing the autonomous regime or the person authorized to make such decisions.

2.3. All state budget expenditures must be recorded in Vietnamese Dong, according to the fiscal year, level of budget, and current state budget classification. State budget expenditures in foreign currency, in-kind, or in labor days must be converted and recorded in Vietnamese Dong according to the exchange rate for foreign currency accounting, the value of in-kind, or the labor day rate prescribed by state authorities.

2.4. During the management, settlement, and finalization of state budget expenditures, any incorrect expenditures must be recovered. Based on the decision of the financial authority or the competent state authority, the National Treasury will recover the funds for the state budget.

3. Responsibilities and authorities of agencies and units in managing, allocating, and paying state budget expenditures:

3.1. The principal ministry (for central public service units); the Chairman of the People's Committee at various levels or the local management agency authorized by the Chairman of the People's Committee at various levels (for local public service units):

- Decision on granting autonomy and self-responsibility for the performance of tasks, organizational structure, staffing, and finance to public service units implementing the autonomous system; classify public service units and determine the level of state budget regularly guaranteed for subordinate public service units implementing the autonomous system;

- Implement the annual budget allocation for subordinate public service units implementing the autonomous system in detail into two parts: the part of regular expenditure budget allocated into other expense categories; the part of non-regular expenditure budget allocated according to four expense categories as prescribed in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance. Adjust the allocated budget for subordinate public service units implementing the autonomous system in accordance with current regulations;

- Guide, direct, urge, and inspect subordinate public service units implementing the autonomous system in accordance with prescribed regulations;

3.2. Public service units implementing the autonomous system:

- Implement the autonomous system and bear responsibility for performing tasks, organizational structure, staffing, and finance in accordance with prescribed regulations. Subject to inspection and supervision by the financial authority and State Treasury during the implementation of the allocated state budget and final settlement of the state budget in accordance with prescribed regulations. Develop internal expenditure rules in accordance with Section VII of Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance to be submitted to the State Treasury as a basis for expenditure control;

- The head of the unit may proactively allocate and utilize regular expenditure funds to implement the autonomous system in accordance with the assigned tasks and requirements to complete the mission, ensuring economy and effectiveness. Based on the assigned tasks and financial capacity, for regular expenditure items as stipulated in Clause 1, Article 15 of Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government, the head of the public service unit shall ensure funding for operational costs and partially fund operational costs, deciding certain levels of administrative management expenses and specialized professional activity expenses higher or lower than those prescribed by competent state authorities; for regular expenditure items as stipulated in Clause 1, Article 22 of Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government, the head of the public service unit shall ensure full funding for operational costs, setting certain levels of management and professional activity expenses but not exceeding the levels prescribed by competent state authorities;

3.3. The State Treasury has the responsibility to control documents and vouchers and promptly make payments and settlements for state budget expenditures that meet payment conditions as prescribed. Participate with financial agencies and competent state management agencies in inspecting the use of state budgets and confirming the amount of state budget expenditures processed through the State Treasury by public service units implementing the autonomous system;

The State Treasury has the right to decide to temporarily suspend, refuse to settle or pay and notify the public service units implementing the autonomous system and the financial agency; at the same time, bear responsibility for its decisions in the following cases:

- Expenditure not in accordance with the assigned budget recipients;

- Expenditure not in accordance with the prescribed expenditure standards and norms by competent state authorities or internal expenditure rules established by the unit;

- Not meeting the expenditure conditions as stipulated in Point 2.2, Clause 2, Part II of this Circular;

II. SPECIFIC PROVISIONS

1. Opening and using accounts:

- The State Treasury guides public service units implementing the autonomous system to open accounts, including:

+ Budget account to receive state budget funds;

+ Unit deposit account to collect and spend fees and charges under the state budget, but the unit retains them for use in accordance with the Law on Fees and Charges and guiding documents;

- For revenues and expenditures from production and service provision activities, the unit may open accounts at the State Treasury or banks;

- Strictly prohibit the use of state budget funds to cover losses from service activities, joint ventures, or partnerships, or transferring state budget funds into unit deposit accounts opened at banks. Transferring funds from the budget account to the unit deposit account opened at the State Treasury where transactions take place (except for establishing funds as prescribed) for some special cases must be approved in writing by the head of the financial agency;

2. Control and settlement of regular expenditure of public service units implementing the autonomous system:

2.1. Contents of regular expenditure of the unit include:

- Regular operational expenditure according to functions and tasks assigned by competent authorities, including: salaries; wages; allowances; social insurance and health insurance contributions; trade union fees as prescribed; public services; office supplies; professional activity expenses; regular maintenance of fixed assets and other expenses as prescribed;

- Regular operational expenditure serving fee and charge collection work, including: salaries; wages; allowances; social insurance and health insurance contributions; trade union fees as prescribed for direct staff involved in fee and charge collection; professional expenses serving fee and charge collection work; regular maintenance of fixed assets and other expenses as prescribed for fee and charge collection work;

- Expenditure for service activities (excluding joint venture and partnership activities to establish separate organizations), including: salaries; wages; allowances; social insurance and health insurance contributions, trade union fees as prescribed; raw materials, purchased labor, depreciation of fixed assets, repair of fixed assets; interest payments on loans and interest on deposits made in the form of borrowing by officials and employees (in cases where capital is raised through a form where officials and employees contribute capital together with the unit and receive interest dependent on the contribution ratio, then interest on deposits shall not be included in expenses); tax payments as prescribed by law and other expenses (if any).

2.2. Conditions for payment:

The State Treasury shall only make payments to public service units operating under the self-management system when all of the following conditions are met:

2.2.1. There is a Decision on granting autonomy and responsibility for the implementation of tasks, organizational structure, staffing, and finance; classification decision of public service units; the level of regular state budget guarantee for public service units operating under the self-management system (for units that partially self-fund their operational costs, public service units fully funded by the state budget), specifically:

- For central public service units, it is the Decision on granting autonomy and responsibility for the implementation of tasks, organizational structure, staffing, and finance issued by the competent ministry.

- For local public service units, it is the Decision on granting autonomy and responsibility for the implementation of tasks, organizational structure, staffing, and finance issued by the Chairman of the People's Committee at various levels or the local competent authority authorized by the Chairman of the People's Committee at various levels..

In cases where public service units have not yet submitted the Decision on granting financial autonomy and internal expenditure regulations to the State Treasury where they maintain their accounts, the State Treasury will control and make payments according to the current expenditure regulations issued by the competent state agency.

2.2.2. It has been included in the budget approved by the competent authority:

- Regarding the authority to allocate budgets: for central public service units, it is the budget allocation decision of the competent ministry; for local public service units, it is the budget allocation decision of the Chairman of the People's Committee at various levels or the local competent authority authorized by the Chairman of the People's Committee at various levels.

- Regarding the form of the budget: the budget allocated to public service units operating under the self-management system must be separated into two parts: the part of regular expenditures allocated together with other categories of expenses; the part of non-regular expenditures allocated according to four categories of expenses as stipulated in Circular No. 59/2003/TT-BTC dated June 23, 2003, of the Ministry of Finance. In both parts mentioned above, the competent state agency must separately allocate a savings fund of 10% for salary reform.

In cases where the annual budget, the budget estimate, and the budget allocation plan have not yet been decided by the competent authority or require adjustment according to regulations, the State Treasury will temporarily provide funds to the unit according to Point 4.3 Clause 4 Section II of Circular No. 79/2003/TT-BTC dated August 13, 2003, of the Ministry of Finance.

2.2.3. It has been decided by the head of the unit or the person authorized to decide on expenditures.

2.2.4. It meets the standards, quotas, and expenditure regulations set by the competent state agency or the unit, specifically:

- For regular expenditures as stipulated in Clause 1 Article 15 of Decree No. 43/2006/NĐ-CP dated April 25, 2006, of the Government, the heads of public service units that self-fund their operational costs and those that partially self-fund their operational costs may decide on certain management administrative expense levels and specialized professional activity expense levels higher or lower than those prescribed by the competent state agency.

- For regular expenditures as stipulated in Clause 1 Article 22 of Decree No. 43/2006/NĐ-CP dated April 25, 2006, of the Government, the heads of public service units fully funded by the budget may decide on certain management expense levels and specialized professional activity expense levels but must not exceed those prescribed by the competent state agency.

- For necessary expenditure items and levels within the scope of establishing internal expenditure regulations, if the competent authority has not yet issued such regulations, the head of the unit may establish expenditure levels for each task and work content within the unit's financial resources.

Standards, quotas, and expenditure levels that public service units operating under the self-management system must comply with include:

+ Vehicle usage standards and quotas;

+ Housing standards and quotas;

+ Standards and quotas for office telephones installed at home and mobile phones;

+ Overseas travel expense regulations;

+ Regulations on hosting foreign guests and international conferences in Vietnam;

+ Management and use regulations for program and target national project funds;

+ Regulations on using funds for urgent tasks assigned by the competent authority;

+ Regulations on financial policies for streamlining staffing (if applicable);

+ Management and use regulations for counterpart project funds and aid funds from the state budget;

+ Management and use regulations for basic construction investment funds, procurement and major repair funds for fixed assets serving public service activities according to projects approved by the competent authority;

Specifically, for funds implementing national-level scientific and technological tasks, sectoral and ministerial-level tasks according to guidelines issued jointly by the Ministry of Finance and the Ministry of Science and Technology.

2.2.5. All necessary legal documents and vouchers related to each expenditure item must be complete and valid, including those for expenditures made according to the unit's internal expenditure regulations (except for office supply payments, travel expense payments made by self-managed units according to internal expenditure regulations; monthly payments for home office telephone and mobile phone charges according to Circular No. 29/2003/TT-BTC dated April 14, 2003, of the Ministry of Finance). Depending on the nature of each expenditure item, the payment documents and vouchers include:

- For individual payment expenses: salary and allowance payments are lists of cadres and civil servants within the staffing quota and contracts for more than one year receiving salaries and allowances (sent once before January 15 each year); staffing increase and decrease tables, wage funds approved by competent state agencies sent when there are changes (for units self-financing regular operating costs, it is the Decision of the unit head; for units partially self-financing regular operating costs and units funded by the budget, it is the Decision of the competent state agency). For external labor expenses such as wages, fees, royalties, it is the labor contract between the unit and the worker.

- For professional business expenses, relevant files and documents related to each expense item.

- For procurement of assets, equipment, means, materials, it is the Decision approving the tender results or the Decision appointing the tender of the competent authority (in cases where procurement must be conducted through tender according to regulations), purchase and service contracts or quotation forms from service providers (for small-value procurements not required to conduct tender), sales invoices and other relevant files and documents.

- For other regular expenses, it is the payment voucher with signatures of the head, chief accountant, or authorized person; other relevant files and documents.

- For expenses serving fee collection, relevant files related to each expense item.

2.2.6. The deposit account, budget estimate account of public institutions implementing the self-management system still have sufficient balance for payment.

2.3. Control and Payment:

2.3.1. Payment Files:

When there is a need for payment, in addition to the files sent once at the beginning of the year such as: state budget expenditure estimates, Internal Expenditure Regulations (sent in the first year of implementing the self-management system and sent when there are supplements or amendments...); public institutions implementing the self-management system send the State Treasury the relevant files, documents, and vouchers related to each payment, including:

- Budget withdrawal form (according to model C2-04/NS, C2-05/NS stipulated in Decision No. 24/2006/QD-BTC dated April 6, 2006 issued by the Minister of Finance on the Accounting System for State Budgets and KBNN Business Operations) clearly stating the expenditure content belonging to regular funding sources and detailed according to the provisions of the state budget classification as the basis for the State Treasury to control and record state budget expenditures;

- Other relevant files and vouchers suitable for the nature of each expense item as stipulated in Section 2.2.5, Point 2.2, Clause 2, Part II of this Circular.

2.3.2. The State Treasury controls the payment files of the institution, including:

- Controlling and comparing expenses against the allocated state budget estimates, ensuring that all expenses are included in the state budget expenditure estimates assigned by the competent state agency to the public institution to implement the self-management system;

- Checking and controlling the legality and validity of the files and vouchers according to the regulations for each expense item;

- Checking and controlling expenses to ensure compliance with the prescribed state budget expenditure standards and norms by the competent state agency or according to the internal expenditure regulations of the institution.

- For cash payments, in addition to the above controls, the State Treasury must also implement cash payment controls in accordance with the provisions of Circular No. 33/2006/TT-BTC dated April 17, 2006 of the Ministry of Finance on managing cash receipts and payments through the State Treasury system.

2.3.3. After reviewing the payment files and vouchers of the institution implementing the self-management system, the State Treasury performs:

- In cases where all conditions for payment are met, the State Treasury implements payment to the institution implementing the self-management system in accordance with Section 2.4.2, Point 2.4, Clause 2, Part II of this Circular;

- In cases where the conditions for payment are not yet met but fall within the scope of advance payment, the State Treasury processes advance payment for the institution implementing the self-management system in accordance with Section 2.4.1, Point 2.4, Clause 1, Part II of this Circular;

- In cases where the conditions for payment are not met as prescribed, the State Treasury has the right to refuse payment and notify the reasons clearly to the public institution implementing the self-management system; at the same time, bear responsibility for its decision to refuse payment.

2.4. Payment Methods:

Payment is carried out in two forms: advance payment and settlement.

2.4.1. Advance Payment:

a) Advance Payment Recipients:

- Management expenses and professional business expenses that have not yet met the conditions for settlement;

- Advance deduction of additional income supplements;

- Procurement expenses for assets, equipment, means, materials that have not yet met the conditions for settlement or advance payment under the contract.

b) Advance amount:

The amount of advance payment depends on the nature of each expense item according to the request of the institution implementing the self-management system and consistent with the progress of implementation. The maximum advance payment amount shall not exceed the remaining balance of the state budget estimate assigned to the institution to implement the self-management system.

c) Procedure and formalities for advance payment:

- The institution implementing the self-management system sends the State Treasury relevant files and documents related to each expense item as stipulated in Section 2.2.5, Point 2.2, Clause 2, Part II of this Circular, along with the detailed budget withdrawal form (advance payment) to the chapter, type, item, sub-item of the state budget classification, clearly stating the advance payment content for the State Treasury to have a basis for handling and tracking during advance payment settlement;

- The State Treasury checks and controls the contents of the files and documents, if they meet the conditions as prescribed, it will process advance payment for the institution.

d) Settlement of Advance Payment:

When settling advance payment, the institution implementing the self-management system is responsible for sending the State Treasury the advance payment settlement request form (according to model number C2-06/NS stipulated in Decision No. 24/2006/QD-CTB dated April 6, 2006 issued by the Minister of Finance on the Accounting System for State Budgets and KBNN Business Operations) detailed to the chapter, type, item, sub-item of the state budget classification, accompanied by relevant files and vouchers for the State Treasury to control and settle.

- In cases where conditions stipulated are met, the State Treasury shall proceed to make advance payments on behalf of the unit:

+ If the amount requested for payment exceeds the amount previously advanced: based on the payment request form of the self-managed public institution, the State Treasury shall process the transfer from advance payment to payment (the amount previously advanced) and require the unit to issue a budget withdrawal form to supplement the payment to the unit (the difference between the requested payment amount and the previously advanced amount);

+ If the amount requested for payment is less than the amount previously advanced: based on the advance payment request form of the self-managed public institution, the State Treasury shall process the transfer from advance payment to payment (equal to the amount requested for advance payment) and continue to monitor the remaining advance payment of the unit (the difference between the previously advanced amount and the requested payment amount).

- In cases where the advance payment does not meet the conditions for payment, the self-managed public institutions may make payments in the following month or quarter. After December 31 each year, the advance payments from the regular expenditure funds allocated to implement the self-management system that have not yet completed the necessary procedures for payment shall be continued to be processed during the adjustment period for final settlement and settled in the previous fiscal year's budget. In cases where the adjustment period for final settlement has ended but the necessary procedures for payment have still not been completed, the advance payment will be carried over to the next year along with the corresponding fund being transferred to the next year to settle the expenditures that were previously advanced and settled in the next year's budget.

2.4.2. Payment:

a) Payments include:

- Personal expense payments;

- Direct payment expenses meeting the conditions;

- Advance payments meeting the conditions for conversion from advance payment to payment.

b) Payment amount:

The payment amount is based on the state budget expenditure documentation according to the request of the self-managed public institution. The maximum payment amount cannot exceed the annual regular expenditure budget assigned by the competent state agency for the self-managed public institution (including unrecovered advance payments).

c) Payment procedure and formalities:

- When there is a need for payment or disbursement, the self-managed public institutions shall submit relevant payment documents, files, and vouchers to the State Treasury in accordance with the prescribed regulations;

- The State Treasury shall check and control the validity and legality of the documents and vouchers; compare them with the allocated state budget estimates. In cases where the conditions stipulated at point 2.2, clause 2, section II of this Circular are met, direct payment shall be made to the units providing goods or services or through the self-managed public institution for payment and disbursement.

2.5. Control and payment for certain major expenses:

2.5.1. Salary and wage control:

- For activities implementing state functions and tasks assigned, the State Treasury shall base its control and payment to the unit on current state regulations regarding salary grades and positions for civil servants, public officials, and armed forces personnel, and the conditions stipulated at point 2.2, clause 2, section II of this Circular.

- For fee and charge collection activities, the State Treasury shall control and pay salaries and wages to the unit according to the current state regulations regarding salary grades and positions for civil servants, public officials, and armed forces personnel and related guidance documents.

2.5.2. Control of additional income:

- The State Treasury shall base its control and payment to the unit on the decision classifying the public institution by the competent authority, the financial results for the year, quarterly revenue exceeding expenses (for cases of advance payment of additional income), the salary and additional income payment plan for each employee specified in the internal expenditure regulation of the unit, specifically:

+ For units self-financing their operational costs, the total additional income amount for the year can be decided according to the internal expenditure regulation of the unit after setting up the Development Fund for Public Services as stipulated in Article 4, Section VIII of Circular No. 71/2006/TT-BTC dated August 9, 2006 issued by the Ministry of Finance.

+ For units partially self-financing their operational costs, the total additional income amount for the year for employees can be decided, but the maximum amount cannot exceed two times the salary grade and position fund set by the state for the year, after setting up the Development Fund for Public Services as stipulated in Article 4, Section VIII of Circular No. 71/2006/TT-BTC dated August 9, 2006 issued by the Ministry of Finance.

+ For units fully funded by the state budget for operational costs, the total additional income payment amount for the year for employees can be decided, but the maximum amount cannot exceed one time the salary grade and position fund set by the state for the year.

- During the year, based on the quarterly revenue exceeding expenses determined, the unit shall issue a state budget withdrawal form (advance payment) to temporarily pay additional income to staff in the unit quarterly. For units self-financing their operational costs and units partially self-financing their operational costs, the State Treasury shall provide advance payment according to the head of the unit's proposed amount within the allocated budget and not more than 40% of the quarterly revenue exceeding expenses determined by the unit. For units fully funded by the state budget for operational costs, the quarterly advance payment amount cannot exceed 50% of the savings achieved in one quarter as determined by the unit.

- At the end of the fiscal year, after the final settlement has been approved by the competent authority and the exact revenue exceeding expenses amount has been determined, based on the unit's advance payment settlement request (the part of the advance payment for additional income), the State Treasury shall process the payment of additional income to the unit and recover the advance payment amount. In cases where the unit has exceeded the revenue exceeding expenses amount in advance payments, the State Treasury shall allow the advance payment to be carried over to the next year to be recovered by reducing it from the unit's additional income payment amount in the next year.

2.5.3. For management expenses and regular business operation expenses: The State Treasury shall base on the state budget expenditure estimate; internal expenditure regulations, standards, and quotas established by the unit itself or prescribed by competent state agencies (for expenses that must comply with national general quotas) to implement control and payment for the unit.

2.5.4. Purchase and acquisition of assets, equipment, means, and materials:

- Based on the estimate assigned by competent state agencies to the unit to implement self-management autonomy, the state budget estimate withdrawal form (payment) and related documents; the State Treasury shall compare with the conditions for expenditure as stipulated in Point 2.2 Clause 2 Section II of this Circular, check according to the provisions of the State regarding procurement methods (bidding, competitive bidding, direct assignment...), if meeting the conditions as prescribed, then proceed with direct payment procedures by bank transfer to the supplier of goods or services, or pay in cash through the unit implementing self-management autonomy as provided for in Circular No. 33/2006/TT-BTC dated April 17, 2006 of the Ministry of Finance on cash payments through the State Treasury system.

- In cases where expenditures do not meet the conditions for direct payment, the State Treasury shall provide provisional advances to the unit implementing self-management autonomy.

+ Based on the state budget estimate withdrawal form (provisional advance) and related documents of the unit implementing self-management autonomy, the State Treasury shall provide provisional advances by bank transfer to pay the supplier of goods or services, or pay in cash to the unit implementing self-management autonomy so that the unit can pay the supplier of goods or services as provided for in Circular No. 33/2006/TT-BTC dated April 17, 2006 of the Ministry of Finance on cash payments through the State Treasury system.

+ After making the expenditure, the unit implementing self-management autonomy shall be responsible for settling the provisional advance with the State Treasury according to the prescribed regulations. Based on the related documents attached to the provisional advance settlement request form from the unit, the State Treasury shall conduct inspection and control, if meeting the conditions for payment as stipulated in Point 2.2 Clause 2 Section II of this Circular, then proceed with the procedure to convert provisional advance to payment for the unit as provided for in Subsection 2.4.1 Point 2.4 Clause 2 Section II of this Circular.

2.5.5. Control of expenditures serving fee and charge collection work:

Based on the revenue and expenditure system, fee and charge regulations, and internal expenditure regulations of the unit, the State Treasury shall control and make payments to the unit, ensuring compliance with the content and level of expenditure as prescribed.

2.5.6. Control and payment for other expenditures:

Other expenditures within the scope of regular expenditures of the unit but not included in the five aforementioned expenditure items, the State Treasury shall implement control and payment for the unit as follows:

- For expenditures meeting the conditions for direct payment, the State Treasury shall inspect and control the relevant documents, expenditure conditions according to the prescribed regulations and proceed with direct payment to the supplier of goods or services;

- For expenditures unable to achieve direct payment: based on the state budget estimate assigned by competent state agencies and the state budget estimate withdrawal form (provisional advance), the State Treasury shall provide provisional advances to the unit. At the beginning of the following month, no later than the 5th day of each month, the unit must prepare a list of payment vouchers along with related documents and send them to the State Treasury to process provisional advance settlement. Based on the list of payment vouchers and checking against the standards, quotas, and expenditure regulations stipulated in the unit's internal expenditure regulations or standards and quotas issued by competent state agencies (for standards and quotas that must comply with national general regulations); related documents, if meeting the prescribed conditions, the State Treasury shall proceed with the procedure to convert provisional advance to provisional advance settlement for the unit. The unit shall bear full responsibility under the law for the legality and validity of the payment documents and its spending decisions.

2.5.7. Control of financial result utilization: Based on the income and expenditure results of public institutions, the State Treasury shall implement control over the utilization of financial results of the unit as follows:

a) For units fully funding their operational costs and units partially funding their operational costs: The State Treasury shall control the utilization of annual financial results of the unit in accordance with the provisions of Clause 4, Section VIII, Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance. Specifically, the surplus of income over expenditure in the year of the unit shall be utilized as follows:

- Allocate at least 25% of the surplus of income over expenditure to establish the Development Fund for Public Services;

- Pay additional income to employees: for units fully funding their operational costs, the total amount of additional income for the year shall be decided according to the unit's internal expenditure regulations after establishing the Development Fund for Public Services as prescribed; for units partially funding their operational costs, the total amount of additional income for employees for the year shall be decided but not exceeding twice the annual salary grade and position fund set by the state, after establishing the Development Fund for Public Services as prescribed.

- Establish the Award Fund, Welfare Fund, and Income Stability Reserve Fund. For the Award Fund and Welfare Fund, the maximum allocation for both funds shall not exceed three months' average salary, wages, and additional income for the year.

In cases where the surplus of income over expenditure equals or is less than the annual salary grade and position fund, the unit may decide to utilize it for the following purposes:

- Pay additional income to employees;

- Establishing funds: Development activity fund (without a minimum deduction rate of 25% of surplus revenue over expenditure), Reward fund, Welfare fund, Income stabilization reserve fund. For the Reward fund and Welfare fund, the maximum deduction for both funds shall not exceed three months' average salary, wage, and additional income of employees in a year.

b) For units whose operating costs are fully covered by the budget: The State Treasury will control the use of the unit's savings (surplus revenue over expenditure) according to the provisions set out in Clause 4, Section IX of Circular No. 71/2006/TT-BTC dated August 9, 2006 issued by the Ministry of Finance. Specifically, the surplus revenue over expenditure of the unit shall be used as follows:

- Paying additional income to employees: The unit may decide on the total amount of additional income for employees in a year, but the maximum shall not exceed one time the state-prescribed grade and position salary fund in a year;

- Expenditure on regular and extraordinary rewards for groups and individuals within and outside the unit based on work performance and contributions to the unit's activities;

- Expenditure on welfare, hardship allowances, and extraordinary assistance for employees, including those retiring or losing their ability to work; additional expenditure for employees in the establishment who are implementing staff reduction;

- Strengthening the unit's material infrastructure;

- In cases where it is deemed that the ability to save funds is unstable, a fund for stabilizing income can be established to ensure income for employees.

c) Regarding the establishment of funds: Based on internal expenditure regulations and the unit's proposal to establish funds, and the provisions set out in paragraph a and b of point 2.5.7 above, the State Treasury will implement the control of the unit's fund establishment and transfer money from the budget account to the deposit account for the unit.

The State Treasury does not control the use of the unit's funds. The head of the unit decides on the use of the funds according to the unit's internal expenditure regulations and is responsible for their decisions.

3. Control of non-recurring expenditures:

3.1. Non-recurring expenditures of the unit include:

- Expenditure for scientific research and artistic tasks;

- Expenditure for training and cadre development programs;

- Expenditure for national target programs;

- Expenditure for state-ordered tasks (investigation, planning, survey, other tasks) at prices or price ranges prescribed by the state (if applicable);

- Counterpart capital for projects with foreign capital according to regulations;

- Expenditure for urgent tasks assigned by competent authorities;

- Expenditure for staff reduction according to the state-prescribed system (if applicable);

- Investment in basic construction, procurement of equipment, major repairs of fixed assets for approved projects by competent authorities;

- Expenditure for projects funded by foreign aid;

- Expenditure for joint ventures and cooperation activities (if applicable);

- Other expenditures as prescribed (if applicable).

3.2. Payment control:The State Treasury implements control and payment of non-self-managed funds allocated to the unit according to current regulations on controlling regular expenditures; investment in basic construction and operational funds with the nature of basic construction investment.

4. Year-end fund transfer processing:

- At the end of the fiscal year, unused annual operating budget and surplus revenue from business operations can be transferred to the next year for continued use. Based on the unit's proposal, the State Treasury will transfer the remaining balance of the budget account and the deposit account to the unit for continued use in the following year. For the remaining regular expenditure after transferring funds, the State Treasury will compile the figures for primary budget units and submit them to the financial authority at the same level within 45 days after the deadline for adjusting final accounts at each budget level. The financial authority will consider and process the transfer to the next year based on the report from the State Treasury at the same level.

- For non-recurring expenditures, at the end of the year if they are unused or not fully utilized, the unit cannot transfer them to the next year except in special cases as provided for in the State Budget Law and guiding documents of the Ministry of Finance.

5. Accounting entries:

- For regular expenditures allocated to other categories in the budget, when making payments, the State Treasury and the unit will record actual expenditures according to the current government budget classification. Payments for additional income to officials and staff will be recorded under item 108 (sub-item 03) of the current government budget classification; reward payments will be recorded under item 104; welfare and additional subsidies outside the general policy for those voluntarily retiring during labor restructuring will be recorded under item 105 of the current government budget classification.

- For the establishment of funds by self-managed public service units: When the unit establishes funds, the State Treasury will temporarily allocate expenditures under item 134 and transfer money from the budget account to the fund deposit account according to the unit's request; when the unit is approved (audited) for final settlement by the competent authority, the unit will go to the State Treasury to process the conversion of temporary allocations for fund establishment to actual expenditures, and the State Treasury and the unit will settle the fund establishment entries under item 134 of the current government budget classification (sub-item 16 for income stabilization reserve fund expenditure, sub-item 17 for welfare fund establishment expenditure, sub-item 18 for reward fund establishment expenditure, sub-item 19 for development activity fund establishment expenditure). If the unit has not been approved by the competent authority for final settlement within the adjustment period for each budget level, the temporary allocation will be converted simultaneously with the transfer of the unit's fund establishment funds to the next year for tracking payment and settlement in the following year's budget.

III. IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in the Official Gazette and replaces the provisions on expenditure control for public service units with revenue under the mechanism stipulated in Circular No. 81/2002/TT-BTC dated September 16, 2002 issued by the Ministry of Finance.

2. The ministries, ministerial-level agencies, government agencies, all levels of People's Committees, public service units operating under the autonomous regime, financial agencies, and the State Treasury shall be responsible for organizing guidance and implementing this Circular./.