Circular No. 92/2013/TT-BTC on the financial management regime for the Fund for Protection of Vietnamese Citizens and Legal Entities Abroad

CIRCULAR

Regulations on the financial management regime of the Fund for Protecting Vietnamese Citizens and Legal Entities Abroad

 and Vietnamese legal entities abroad

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The Minister of Finance issues this Circular regulating the preparation of budgets, management, use, and settlement of funds supported by the State budget for organizations assigned or authorized by the Ministry of Foreign Affairs to perform tasks of selecting, introducing, and managing Vietnamese workers working for foreign organizations and individuals in Vietnam.

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 Decision No. 119/2007/QĐ-TTg dated July 25, 2007 of the Government Chairman regarding the establishment of the Fund for Protecting Vietnamese Citizens and Legal Entities Abroad;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular to stipulate the financial management regime of the Fund for Protecting Vietnamese Citizens and Legal Entities Abroad.

Article 1. Scope of Application

This Circular stipulates the financial management of the Fund for Protecting Vietnamese Citizens and Legal Entities Abroad (referred to as the Fund for Protecting Vietnamese Citizens) established by the Government Chairman under Decision No. 119/2007/QĐ-TTg dated July 25, 2007. The international transaction name is Fund for Assisting Overseas Vietnamese Citizens and Legal Entities - abbreviated as FAOV).

Vietnamese citizens residing abroad who have subscribed to insurance in their host countries are not within the scope of application of this Circular.

Article 2. Principles of operation of the Fund for Protecting Vietnamese Citizens

1. The Fund for Protecting Vietnamese Citizens operates without profit-making objectives. The Fund has its own legal personality, separate accounts, and seal. The Fund opens Vietnamese dong and foreign currency accounts at the State Treasury or domestic commercial banks in accordance with Article 2 of Decision No. 119/2007/QĐ-TTg dated July 25, 2007 of the Government Chairman.

2. Vietnamese representative offices abroad coordinate with the Board of Directors and the Office of the Fund to carry out citizen protection activities in accordance with the regulations set forth in the Charter "Organization and Operation of the Fund for Protecting Vietnamese Citizens and Legal Entities Abroad" issued by the Minister of Foreign Affairs.

Article 3. Revenue sources of the Fund for Protecting Vietnamese Citizens

1. The initial funding of the Fund for Protecting Vietnamese Citizens is provided by the State Budget at 20 (twenty) billion Vietnamese dong; annual supplementary budget funds based on approved budgets by authorized authorities.

2. Money and assets contributed voluntarily and sponsored by individuals and organizations both domestically and internationally, in compliance with relevant laws.

3. Interest income from deposits and other lawful revenues (if any).

Article 4. Expenditure items of the Fund for Protecting Vietnamese Citizens

1. The Fund for Protecting Vietnamese Citizens may allocate funds for the following purposes:

1.1. Non-reimbursable expenditure items:

a) Expenditures for direct activities implementing the mission of protecting Vietnamese citizens and legal entities abroad by Vietnamese representative offices. Expenses for staff of Vietnamese representative offices traveling on official business related to citizen protection, including airfare, transportation costs, fuel expenses, travel allowances according to current regulations.

b) Assistance for particularly difficult cases where individuals and their families lack financial means to address issues such as transportation costs in the host country, food, temporary accommodation, and other essential supplies, based on actual expense receipts, with the spirit of thrift and effectiveness. In these cases, the head of the Vietnamese representative office abroad decides in accordance with the authority specified in point c, Clause 3, Article 6 of this Circular.

c) For cases where citizens suffer from serious illnesses (mental illness, paralysis, terminal cancer), death, severe accidents threatening life, or encounter severe risks requiring protection (war, natural disasters, epidemics, terrorism), in addition to the expenses mentioned in point b, Section 1.1, Clause 1 of this Article, if additional assistance is needed for return transportation and related expenses, the Vietnamese representative office abroad reports to the Fund Director for submission to the Minister of Foreign Affairs for consideration and decision on each specific case.

d) Assistance for expenses to repatriate women and children who are victims of human trafficking crimes from abroad, in accordance with the content and support levels during the period awaiting repatriation as stipulated in the Joint Circular of the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs regarding the content and support levels for victim assistance.

1.2. Reimbursable expenditure items:

Advance payments for purchasing return tickets, hospital fees, temporary residence expenses, and other expenses for citizens in the following situations:

a) The individual has made a deposit or has a guarantor from family members, relatives, labor dispatch companies, ship owners, and has confirmation from the People's Committee of the commune/village where the family or organization has permanent residency or place of work, or from the People's Committee (province-level city directly under the central government or district-level city, county, town, provincial-level city) where the employer or ship owner is registered to operate, regarding the repayment of these amounts.

b) In urgent special cases where the individual does not have a deposit or guarantor from family members or domestic organizations, or from labor dispatch companies or ship owners, the individual must commit to repay the advance expenses to the Fund. The head of the Vietnamese representative office abroad considers and decides on advance payments for each specific case.

2. Expenditures for managing the Fund:

Annually, the Ministry of Foreign Affairs may use up to 10% of the total approved budget for the Fund for Protecting Vietnamese Citizens and Legal Entities for management activities, including:

a) Allowances for the position of Fund Director in accordance with the concurrent position allowance system stipulated in Circular No. 78/2005/TT-BNV dated August 10, 2005 of the Ministry of Home Affairs guiding the implementation of the concurrent position allowance system for officials, civil servants, and employees concurrently holding leadership positions in other agencies or units.

b) Allowances for the Chief Accountant of the Fund in accordance with the provisions of Joint Circular No. 50/2005/TTLT/BTC-BNV of the Ministry of Finance and the Ministry of Home Affairs guiding standards, conditions, procedures for appointment, removal, replacement, and allowance for Chief Accountants and accounting supervisors in state-owned accounting units.

c) Allowances for the Cashier of the Fund in accordance with Circular No. 05/2005/TT-BNV dated January 5, 2005 of the Ministry of Home Affairs guiding the implementation of the allowance system for responsibilities for officials, civil servants, and employees.

d) Pay salaries, insurance, and allowances for contractual employees (if any) of the Fund as prescribed by law.

đ) Pay overtime wages (if any) according to the current regulations.

e) Allocate funds for promotional activities to establish the Fund.

g) Allocate funds for outbound and inbound group activities serving the establishment of the Fund, regular and annual inspections of the Fund's usage at overseas Vietnamese representative offices; allocate funds for surveys and studies on actual conditions both domestically and internationally; allocate funds for cooperation with localities in protecting Vietnamese citizens and legal entities abroad.

h) Allocate funds for purchasing, repairing, and maintaining fixed assets serving the operations of the Fund.

i) Allocate funds for office supplies and public service payments.

k) Regularly and exceptionally reward organizations and individuals who have contributed to the Fund through fundraising or direct contributions, or who have achieved results in the Fund's activities. The establishment, management, and use of the Fund for commendation and rewards shall be carried out in accordance with the Circular of the Ministry of Finance guiding the Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government detailing the implementation of certain provisions of the Law on Commendation and Rewards. The source of the commendation and reward fund is from the operational management budget of the Fund and allocated annually by the Ministry of Foreign Affairs.

l) Other lawful expenditures serving the management of the Fund.

The above expenditure items shall be implemented in accordance with the current state expenditure regimes and standards; the Director of the Fund shall decide on the standard expenditure and bear legal responsibility for his decision.

The ratio for expenditures on the aforementioned management activities of the Fund will be adjusted to suit the actual situation based on the proposal of the Minister of Foreign Affairs and the approval of the Minister of Finance.

Article 5. Deposit, Guarantee, and Reimbursement of Advance Payments from the Fund

1. Responsibilities of domestic individuals, organizations, companies, ship owners:

a) Domestic individuals or organizations that undertake deposits or guarantees to repay advance expenses for purchasing return tickets and other expenses for citizens abroad must fulfill their obligation to repay the Fund within the agreed timeframe.

b) Individuals directly committing to repay advance expenses to overseas Vietnamese representative offices for purchasing return tickets and other expenses must fulfill their obligation to repay the Fund within the agreed timeframe.

c) Labor dispatch companies and ship owners transporting fishermen for work must undertake deposits, guarantees, and repayments to the Fund within the agreed timeframe for advance expenses for purchasing return tickets and other expenses to bring workers and fishermen back home.

2. Responsibilities of People's Committees at all levels:

a) In cases where domestic individuals or organizations make deposits or commit to guarantees: The People's Committee of the commune/township where the individual or organization has permanent residence or place of business shall confirm the deposit or guarantee commitment for repaying advance expenses to the Fund; they also have the responsibility to recover the advance debt from the individual or organization to repay the Fund or urge them to repay the Fund within the agreed timeframe.

b) In cases where domestic employers or ship owners make deposits or commit to guarantees: The People's Committee (at provincial level or district level) where the employer or ship owner is registered to operate shall confirm the deposit or guarantee commitment for repaying advance expenses to the Fund; they also have the responsibility to recover the advance debt from the employer to repay the Fund or request the employer to repay the expense to the Fund within the agreed timeframe.

In necessary cases, People's Committees at all levels may temporarily borrow from the local budget to make deposits or guarantees, or to repay advance expenses to the Fund when individuals or employers encounter difficulties in fulfilling their repayment obligations within the agreed timeframe, and then recover the amount from the individual or employer to repay the local budget.

3. Responsibilities of the Fund:

The Fund is responsible for monitoring and regularly coordinating with People's Committees at all levels to urge the recovery of debts; if the debt is due but the individual or organization has not yet repaid it, the Fund must issue a notice of debt collection to the debtor and People's Committees at all levels.

4. Handling of Late Payment or Non-Payment Violations:

a) Individuals directly committing to repay advance expenses and individuals or organizations undertaking deposits or guarantees who fail to fulfill their repayment obligations within the agreed timeframe shall, in addition to repaying the advance expenses, pay interest on the overdue amount to the Fund at the basic interest rate published by the State Bank corresponding to the period of delay at the time of payment.

b) In cases of non-payment, legal action will be taken as prescribed by law.

Article 6: Budget preparation, budget allocation, settlement, and usage mechanism

1. Budget preparation and budget allocation:

a) Each year, the Ministry of Foreign Affairs prepares the budget for the Fund's operational expenses and consolidates it into the Ministry's overall budget to be submitted to the competent authority in accordance with the State Budget Law and related guiding documents.

b) Based on the approved budget, the Minister of Foreign Affairs will allocate the budget for the Fund (accompanied by a detailed explanation of the Fund's intended use), which will then be sent to the Ministry of Finance for review according to regulations. Based on the allocated budget, the Fund will withdraw funds from the National Treasury for management purposes and proceed to disburse funds to overseas representative offices for the protection of Vietnamese citizens and legal entities abroad as required by actual conditions at those representative offices.

2. Final settlement:

a) Each year, overseas representative offices using the Fund must report on the settlement of expenses incurred, simultaneously sending original expenditure vouchers to the Fund Office for verification, approval, and consolidation of the annual settlement report to be submitted to the Ministry of Foreign Affairs.

b) The Ministry of Foreign Affairs is responsible for reviewing the Fund's income and expenditure settlements and consolidating them into the Ministry's annual settlement report to be submitted to the Ministry of Finance for review in accordance with the State Budget Law and related guiding documents.

In cases where the Fund does not fully utilize the approved budget for the year, the remaining balance shall be carried over to the next year for use in accordance with the designated purpose and content of the Fund's use as stipulated.

3. Usage mechanism:

a) Based on the annual spending plan that has been allocated, the Fund Director is responsible for and instructs overseas representative offices to manage and use funds in compliance with Vietnamese laws, local laws, international laws, current financial management regulations, and the Fund's financial management regulations as well as its organizational and operational charter.

b) The Fund Director has the authority to approve expenditures up to US$10,000 (ten thousand US dollars) per case. For amounts exceeding US$10,000 and expenditures specified in point c, sub-clause 1.1, clause 1, Article 4, the Fund Director must report to the Minister of Foreign Affairs for consideration and decision.

c) The head of the overseas representative office has the authority to approve expenditures up to US$3,000 (three thousand US dollars) per case. For amounts exceeding US$3,000 and expenditures specified in point c, sub-clause 1.1, clause 1, Article 4, the head of the representative office must propose to the Fund Director for appropriate consideration and decision within their authority.

d) The Fund may not use its funds for activities not aligned with the designated purposes of the Fund.

Article 7: Accounting work and Fund management

1. The Citizen Protection Fund must organize accounting and bookkeeping in accordance with Decision No. 19/2006/QD-BTC dated March 30, 2006, issued by the Minister of Finance regarding "Accounting Regulations for Administrative and Public Services"; in accordance with financial management regulations for overseas representative offices and the Fund's regulations.

2. The Fund conducts separate bookkeeping for operational activities funded by the Fund for management purposes.

3. The Fund organizes separate bookkeeping to track contributions from individuals and organizations both domestically and internationally through overseas representative offices.

4. Currency for bookkeeping: Bookkeeping and settlement are conducted in Vietnamese Dong.

5. In cases of foreign currency use: If directly provided by the Ministry of Finance in foreign currency, the exchange rate for accounting and bookkeeping published monthly by the Ministry of Finance shall apply. In cases of purchasing foreign currency from a bank, the exchange rate based on the bank's documentation at the time of purchase shall be applied.

6. The Fund Director and the head of the overseas representative office are responsible for expenditures in accordance with policies, systems, and regulations set forth in this Circular.

7. The Citizen Protection Fund complies with current state regulations concerning the inspection and audit of the Fund's financial activities.

Article 8: Implementation Organization

This Circular takes effect from October 1, 2013, replacing Circular No. 177/2010/TT-BTC dated November 5, 2010, issued by the Ministry of Finance, which stipulates the financial management regime for the Fund for the Protection of Vietnamese Citizens and Legal Entities Abroad. The Ministry of Foreign Affairs shall be responsible for guiding Vietnamese representative offices abroad and relevant units within the Ministry to implement the provisions of this Circular.

In the course of implementation, if any difficulties arise, they should be promptly reported to the Ministry of Finance for guidance on resolution./.