Circular No. 93-KTTV guiding the implementation of Decision No. 157-HĐBT dated December 5, 1984 of the Council of Ministers on the establishment of a traffic guarantee reserve fund

CIRCULAR

OF THE MINISTRY OF TRANSPORTATION NUMBER 93-KTTV
DATE 19 MARCH 1985 GUIDING IMPLEMENTATION
DECISION NUMBER 157-HĐBT DATE 5-12-1984 OF THE COUNCIL
OF MINISTER ON ESTABLISHING A FUND FOR ROADWAY EMERGENCY RESERVES

To promptly respond to the situation at the northern border, on December 5, 1984, the Council of Ministers issued Decision No. 157-HĐBT allowing the Ministry of Transportation to establish a fund for emergency reserves to store materials, equipment, and means of transport to quickly repair damaged roads and bridges caused by enemy attacks, restore traffic, and serve national defense and economic needs. After consultation with the Ministry of Finance and the State Planning Committee, the Ministry has established the management procedures for the emergency reserve funds as follows:

I. GENERAL PROVISIONS

1. The emergency reserve fund is a special revolving fund provided by the state budget to purchase materials, equipment, and means of transport for storage at predetermined locations to ensure prompt deployment for repairing roads and bridges when they are destroyed by the enemy (not stored in cash), and shall not be used for other purposes.

2. When using materials from the emergency reserve to repair roads and bridges damaged by the enemy, urgent procedures must be carried out so that upon completion of the project, payment will be made immediately from appropriate sources (repair funds, basic construction funds) to promptly replenish the emergency reserve fund, maintaining its original value and physical assets.

3. The emergency reserve fund must be strictly managed, with ledgers maintained, regular inventory checks conducted, and reports submitted according to current state regulations.

II. ESTABLISHMENT, REVIEW, AND DISTRIBUTION OF THE EMERGENCY RESERVE FUND
TO ENSURE TRAFFIC SECURITY

1. Units designated by the Ministry of Transportation to receive the emergency reserve fund must develop rescue plans based on specific bridge and road conditions, river crossing points, and anticipated enemy sabotage.

Based on the rescue plans, units calculate the quantity, type, and value of materials and equipment needed, creating detailed lists, and then prepare requests for funding and material/equipment distribution plans to submit for review by the Ministry.

Requests for material distribution must clearly specify locally sourced materials, including those requiring planned quotas for extraction.

Requests for state-provided materials and equipment.

2. Review of rescue plans and requests for funding and emergency reserve materials and equipment.

a) Rescue plans for bridges and roads prepared by transportation departments and transportation unions 1 and 2 are sent to the Construction Management Department for review and consolidation, with participation from the Industrial Materials Equipment Department, Accounting and Finance Department, Planning Statistics Department, Basic Construction Department, and Department 1 before submission to the Ministry for approval.

b) Requests for funding for the emergency reserve submitted by transportation departments and unions are reviewed by the Accounting and Finance Department and then submitted to the Ministry for approval.

c) Requests for material and equipment distribution submitted by transportation departments and unions are reviewed by the Industrial Materials Equipment Department and then submitted to the Ministry for approval.

d) Based on approved rescue plans, the Construction Management Department and Planning Statistics Department prepare documents to submit to the State Planning Committee for review of the material and equipment list and funding plan for the Ministry of Transportation.

đ) The Accounting and Finance Department and Industrial Materials Equipment Department work with the Ministry of Finance and the Ministry of Materials to timely and fully allocate funds and materials and equipment for the emergency reserve, which have been reviewed and approved by the State Planning Committee, and proceed to distribute these funds and materials to units.

3. Basis and form of allocation of emergency reserve funds and materials and equipment.

a) Basis for allocating emergency reserve funds and materials:

3.1a. Basis for the Ministry of Finance and the Ministry of Materials to allocate emergency reserve funds and materials and equipment:

- Approval document from the State Planning Committee regarding the quota and list of materials and equipment and emergency reserve funds for the Ministry of Transportation.

- Request for allocation of emergency reserve funds, materials, and equipment prepared by the Ministry of Transportation based on the approved comprehensive plan for emergency reserve funds, materials, and equipment.

3.1b. Basis for the Ministry of Transportation to allocate emergency reserve funds, materials, and equipment to units:

- Rescue plans and requests for allocation of emergency reserve funds, materials, and equipment prepared by units and approved by the Ministry of Transportation.

- Emergency reserve funds, materials, and equipment allocated by the Ministry of Finance and the Ministry of Materials to the Ministry of Transportation.

b) Form of allocation of emergency reserve funds:

The Ministry of Finance allocates emergency reserve funds based on the two conditions specified in 3.1a and 3.1b above, providing special revolving funds for traffic security operations to the Ministry of Transportation under category 18 of item 14 of section 18 in the form of quotas or expenditure orders into accounts (special revolving funds for traffic security) at the Central Investment and Construction Bank.

III. MANAGEMENT OF THE EMERGENCY RESERVE FUND

1. Heads of units receiving the emergency reserve fund are responsible to the state for managing the fund strictly, ensuring sufficient quantity, quality, and types of reserve materials.

Reserve materials should be stored at predetermined locations, and unit heads may delegate direct management responsibilities to individual units or individuals at each location. Regulations and measures for protection and preservation must be established. Detailed diagrams indicating the location and quantity of reserve materials and equipment must be kept for easy tracking.

2. Regarding economic management and losses within the standard during storage: As reserve materials and equipment are special revolving funds, units must utilize existing personnel and equipment to manage them. All costs related to storage, including losses within the standard, are included in management fees like other types of materials of the unit.

3. Based on the determined reserve fund plan, materials, equipment, and allocated reserve funds, the Ministry of Transport may reallocate from surplus units to deficient units according to actual circumstances, and notify the Ministry of Finance and the Investment and Construction Bank. In urgent cases where reallocation cannot be made, the deficient unit may borrow from the bank.

The reallocation of the traffic assurance reserve fund can only be carried out with a decision or order for reallocation from the Ministry of Transport, which specifies reallocation from surplus units to deficient units for traffic assurance purposes. Depending on specific situations, reallocation can be done either in cash (if the surplus unit requests to retain physical items and repay the capital in cash or has not yet purchased physical items) or in kind (materials, equipment), or through the reallocation of the reserve fund based on the allocation index of reserve capital, materials, and equipment (if reallocation can be done based on the index).

The transfer of the reserve fund must comply with all current procedures, be based on the decision or order for reallocation, and include a detailed transfer record specifying the quantity, type, value of transferred materials and equipment, full name, position, and signature of the transferring and receiving parties, as well as the signatures and seals of the heads of both parties.

4. For materials in the reserve fund that have deteriorated or are substandard, the managing unit must take thorough preservation measures, and if necessary, they can rotate them out for use but must immediately plan to replace them with new materials.

- If the materials are regularly used by the unit, a rotation plan should be established to periodically remove old materials for use in production and replace them with new ones.

- If the materials are infrequently used by the unit, a periodic replacement plan should be established and reported to the immediate superior unit to organize reallocation for other units and provide new materials to make up for the shortage.

In cases where materials are used in production and suffer loss, damage, or deterioration, the unit must take every measure to replenish them within the latest period of thirty days from the date of loss or damage, or put them into use.

5. The Departments of Transport and the traffic assurance reserve fund management associations are responsible for closely monitoring the situation of the allocated reserve funds. They must provide guidance and support in terms of business operations to subordinate units, and conduct at least one audit of the reserve fund accounts annually for each subordinate unit. Quarterly and annually, they must compile reports on the reserve fund situation of their own units and submit them to the Ministry of Transport, the Ministry of Finance, and the Investment and Construction Bank.

IV. ACCOUNTING AND FINAL REPORTING OF THE RESERVE FUND
FOR TRAFFIC ASSURANCE

Units allocated the traffic assurance reserve fund shall apply the unified accounting system issued by Decision No. 425-TC/CĐKT dated December 14, 1970 of the Ministry of Finance to record accounting entries related to the reserve fund in the unit's general ledger, but must also remember the relevant provisions and detailed accounting books necessary for tracking and reporting the reserve fund. Accounts and sub-accounts reflecting the reserve fund should be marked with the letter "A" to distinguish them, such as: reserve materials, sub-account 07-1A, reserve working capital 85.2A...

Each month, quarter, and year, the Departments of Transport and transportation enterprise associations allocated the reserve fund must extract accounting reports, specifically those concerning the reserve fund, and submit them to the Ministry, the Ministry of Finance, and the Investment and Construction Bank according to the regular state accounting reporting system.

The above guidelines for managing the traffic assurance reserve fund should be thoroughly studied and strictly implemented by the Departments of Transport and the associations. Any difficulties encountered during implementation should be reported to the Ministry for further guidance.