Joint Circular No. 90/2012/TTLT-BTC-TTCP stipulates the procedures for preparing budgets, managing, using, and settling accounts for funds extracted from recovered revenues discovered through inspection work that have been actually paid into the State budget.

JOINT CIRCULAR

Regulations on the preparation of budgets, management, use, and settlement of funds extracted from recovered revenues discovered through inspection work that have actually been paid into the state budget.

These revenues were discovered through inspection work and have actually been paid into the state budget.

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Based on the Inspection Law dated November 15, 2010;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 86/2011/NĐ-CP dated September 22, 2011 of the Government detailing and guiding the implementation of certain provisions of the Inspection Law;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 65/2008/NĐ-CP dated May 20, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Government Inspectorate;

The Minister of Finance and the Chief Inspector General jointly issue this Circular to regulate the preparation of budgets, management, use, and settlement of funds extracted from recovered revenues discovered through inspection work that have actually been paid into the state budget.

Article 1. Scope and Applicability

1. This Circular regulates the preparation of budgets, management, use, and settlement of funds derived from revenues recovered through inspection work that have actually been deposited into the state budget.

2. This Circular applies to state inspection agencies as provided for in Clause 1, Article 4 of the Inspection Law No. 56/2010/QH12, including:

a) The Government Inspectorate;

b) Inspectors of ministries and ministerial-level agencies (hereinafter referred to collectively as Inspectors of Ministries);

c) Inspectors of provinces and centrally-administered cities (hereinafter referred to collectively as Inspectors of Provinces);

d) Inspectors of departments;

đ) Inspectors of districts, urban districts, towns, and provincial cities (hereinafter referred to collectively as Inspectors of Districts).

1. Amounts increased to the state budget from taxes, fees, and other revenues already paid into the state budget or settled through offsetting methods, including:

State inspection agencies may extract a portion from revenues recovered through inspection work that have actually been deposited into the state budget, including:

1. Funds belonging to the state budget that have been embezzled, misused, or lost due to illegal acts.

2. State budget revenues from taxes, fees, charges, and other revenues collected by entities with the obligation to declare and pay into the state budget but failed to declare, declared insufficiently, or declared incorrectly, thereby reducing their obligations to pay into the state budget, which have been identified and recommended by the inspection agency and actually paid into the state budget.

Revenues collected by entities from related parties but not permitted by law to collect or collected beyond the prescribed limits, which have been identified and recommended by the inspection agency and actually paid into the state budget.

3. Interest accrued and late payment penalties for state budget revenues due to the misuse of state budget funds that have been recovered and actually paid into the state budget.

4. Expenditures exceeding regulations, standards, and norms; improperly established reserve funds; expenditures exceeding internal expenditure regulations of the entity, which have been identified by the inspection agency and recovered by the inspected entity and paid into the state budget, including:

a) Incorrect unit prices and quantities for construction investment projects and planning designs;

b) Using state budget funds for purposes not within the scope of state budget expenditures or not in accordance with assigned tasks, leading to losses;

c) Using state budget funds allocated without self-management (for administrative agencies) or non-recurring allocations (for public institutions) for purposes that should be funded by self-managed or recurring state budget allocations;

d) Entities reporting incorrect data leading to the state budget allocating and disbursing higher amounts than the entities are entitled to according to the law;

đ) Using state budget funds that should be refunded to the state budget but retained by the entity;

e) Portion of state budget funds required to be refunded to the state budget but not timely submitted by the entity according to regulations;

g) Other expenditures improperly used and subsequently recovered and paid into the state budget.

Article 3. Rate of Deduction

1. State inspection agencies may extract funds at the following specific rates:

a) For the Government Inspectorate:

- Shall be entitled to deduct up to 30% of the total amount actually paid into the state budget for amounts up to VND 50 billion/year;

- An additional maximum of 20% of the total amount actually paid into the state budget for amounts exceeding VND 50 billion to VND 80 billion per year;

- An additional maximum of 10% of the total amount actually paid into the state budget for amounts exceeding VND 80 billion per year.

b) For inspectors of ministries, agencies at the ministerial level, provincial inspectors:

- Shall be entitled to deduct up to 30% of the total amount actually paid into the state budget for amounts up to VND 10 billion/year;

- An additional maximum of 20% of the total amount actually paid into the state budget for amounts exceeding VND 10 billion to VND 20 billion per year;

- An additional maximum of 10% of the total amount actually paid into the state budget for amounts exceeding VND 20 billion per year.

c) For department inspectors, district, county, city, town inspectors under provinces:

- A maximum of 30% of the total amount actually paid into the state budget for amounts up to VND 1 billion per year;

- An additional maximum of 20% of the total amount actually paid into the state budget for amounts exceeding VND 1 billion to VND 2 billion per year;

- An additional maximum of 10% of the total amount actually paid into the state budget for amounts exceeding VND 2 billion per year.

2. Based on the budget capacity and actual implementation of tasks by state inspection agencies at the local level, the People's Committee of the province shall submit to the People's Council of the province for decision on the specific rate of extraction from the total amount actually paid into the state budget, but not exceeding the rate specified in Clause 1 of this Article.

Article 4. Procedures for Deduction and Payment

1. For state inspection agencies:

a) State inspection agencies are allowed to open temporary accounts at the Treasury to hold temporarily the recovered revenues discovered through inspections pending resolution;

b) When there is evidence to conclude that state budget funds have been improperly used or lost and must be recovered and returned to the state budget as stipulated in Article 2 of this Circular, the person issuing the inspection decision shall issue a recovery decision. The recovery decision must be in writing, specifying the amount to be recovered, the responsibilities of the inspected entity to implement, the time frame for implementation, and the temporary account number of the state inspection agency opened at the Treasury;

The state inspection agency is responsible for monitoring, inspecting, and urging the implementation of the recovery decision.

c) Within ten working days from the end of the appeal period as stipulated by the Law on Petitions and the Law on Complaints, the state inspection agency shall transfer from the temporary account to the state budget the amount specified in the recovery decision;

d) At the end of the year, based on the results of recovered revenues actually paid into the state budget during the year and in accordance with the extraction rate specified in Clause 1 of Article 3 of this Circular, the state inspection agency (if it is a budgetary unit) or the supervising agency of the state inspection agency (if it is not a budgetary unit) shall issue a document accompanied by a receipt for payment into the state budget, submitting to the financial authority at the same level requesting allocation of funds in accordance with this Circular.

2. For inspected entities:

The inspected entity is responsible for paying the amount of improperly used funds as recorded in the recovery decision. When processing the payment, the inspected entity shall accurately record each item of payment on the payment voucher.

Annually, inspected units shall prepare reports on the implementation of inspection conclusions, detailing the amounts recovered according to the decision on recovery, specifying each receipt, and the content of the implementation; these reports shall be submitted to the superior management unit for consolidation and reporting to the State Inspectorate agency.

3. Responsibilities of the Financial Agency:

Based on the accompanying document requesting payment into the state budget by the State Inspectorate agency (or the managing agency of the State Inspectorate agency), and based on the deduction rate prescribed in Clause 1 of Article 3 of this Circular, financial agencies at all levels shall appraise and submit to the competent authority for a decision on the amount of funds to be deducted and organize the allocation of such funds to the State Inspectorate agency in accordance with Article 6 of this Circular.

ARTICLE 5. USE OF FUNDS TO BE ALLOCATED

1. THE STATE INSPECTION AUTHORITY IS ENTITLED TO USE FUNDS TO BE ALLOCATED FOR THE FOLLOWING PURPOSES:

a) Enhance material infrastructure, purchase, repair assets, machinery, equipment, working tools, and transportation means serving inspection work, complaint resolution, accusation handling, and anti-corruption efforts;

b) Supplement training, capacity building, and advanced training costs for inspectors, staff, civil servants, and workers of State Inspectorate agencies; organize study tours both domestically and internationally;

c) Supplement costs for business activities serving inspection work; costs for purchasing information to serve the recovery of fines; propaganda, dissemination, and education on laws related to inspections, complaint resolution, accusation handling, and anti-corruption;

d) Costs to support, encourage, and motivate collectives and individuals inside and outside the State Inspectorate agencies who actively cooperate in inspection work, complaint resolution, and anti-corruption efforts;

đ) Costs for rewarding, encouraging, and motivating staff, civil servants, and workers of State Inspectorate agencies (outside annual rewards stipulated by the Law on Competition and Rewards). The level of encouragement and reward costs for staff, civil servants, and workers within State Inspectorate agencies from the allocated funds under this Circular and additional income from savings in self-financing systems shall not exceed one time the basic salary and position allowance as prescribed by the state within one year;

e) PROVIDING SUPPORT FOR OTHER EXPENSES WITH SOCIAL WELFARE CHARACTERISTICS.

2. State Inspectorate agencies shall proactively use the allocated funds to cover the expenses as specified in this Circular. The expenditure levels for the above items shall be reviewed and decided upon by the head of the State Inspectorate agency and must be included in the Internal Expenditure Regulations or Management and Usage Regulations for the allocated funds. For State Inspectorate agencies that are not budgetary units, the State Inspectorate agency must submit to the head of the managing agency for a decision and send to the Treasury where the account is opened for the Treasury to use as a basis for controlling state budget expenditures.

ARTICLE 6. PREPARATION OF BUDGET ESTIMATES, ALLOCATION OF BUDGET ESTIMATES, AND SETTLEMENT OF FUNDS TO BE ALLOCATED

1. PREPARATION AND ALLOCATION OF BUDGET ESTIMATES FOR FUNDS TO BE ALLOCATED:

a) Annually, when preparing the budget revenue and expenditure plan; the State Inspectorate agency bases on the estimated actual revenue collected and paid into the state budget discovered by the State Inspectorate agency in the current year to determine the allocation fund for the planning year; consolidate it into the budget revenue and expenditure plan of the agency or unit and submit it to the financial agency at the same level for consolidation into the state budget plan for approval by the competent authority;

b) The budget expenditure plan for the allocated funds derived from recovered revenues discovered through inspections shall be assigned as a separate line in the annual budget revenue and expenditure plan of the State Inspectorate agency (or the managing agency if the State Inspectorate agency is not a budgetary unit);

c) At the end of the year (the year in which the plan has been assigned), based on the actual revenue collected into the state budget from the temporary holding account of the State Inspectorate agency, the agency may use the allocated funds to cover the expenses as specified in Clause 1 of Article 5 of this Circular. The financial agency will consider resolving the difference between the amount allocated and the actual revenue collected into the state budget higher or lower than the amount allocated in the budget expenditure plan of the agency or unit as follows:

In the case where the amount allocated exceeds the actual revenue collected into the state budget, the shortfall will be allocated to the next year's budget plan; if necessary, the State Inspectorate agency (or the managing agency of the State Inspectorate agency) shall issue a supplementary budget plan accompanied by a payment slip into the state budget and submit it to the financial agency at the same level for approval to supplement the allocated funds according to regulations.

In the case where the actual revenue collected is lower than the amount allocated in the budget plan, the surplus will be canceled at the Treasury (for cases where the State Inspectorate agency has not withdrawn the budget) or deducted from the amount to be allocated in the following year (for cases where the State Inspectorate agency has already withdrawn it for expenditure).

2. Allocation, use, and settlement of allocated funds:

a) The allocated funds from recovered revenues discovered through inspections shall be allocated to the funds for implementing the self-management system;

b) The use and settlement of allocated funds based on the actual revenue collected into the state budget shall be carried out in accordance with the State Budget Law and current guiding documents. For State Inspectorate agencies that are not budgetary units, the managing agency of the State Inspectorate agency shall be responsible for consolidating and settling in the consolidated report of the unit;

c) Unspent allocated funds from recovered revenues discovered through inspections at the end of the year shall be transferred to the next year for continued use.

Article 7. Implementation Organization

2. This Circular takes effect from July 15, 2012, and replaces Joint Circular No. 04/2008/TTLT-BTC-TTCP dated January 4, 2008, issued by the Ministry of Finance and the Government Inspectorate guiding the preparation, management, use, and settlement of funds ensuring the operation of State Inspectorate agencies.

2. The establishment, management, use, and settlement of funds for the operation of state inspection agencies, which are allocated annually from the state budget as stipulated in Circular Joint Circular No. 04/2008/TTLT-BTC-TTCP dated January 4, 2008, issued by the Ministry of Finance and the Government Inspectorate, shall now be implemented in accordance with the provisions of the State Budget Law and the guiding documents pursuant to Clause 1, Article 72 of Decree No. 86/2011/NĐ-CP dated September 22, 2011, promulgated by the Government detailing and guiding the implementation of certain articles of the Inspection Law.

3. In the course of implementation, if there are any difficulties, they should be reported to the Ministry of Finance and the Government Inspectorate for consideration and resolution./.