Circular No. 95/2003/TT-BTC guiding financial regulations for the Radio Frequency Wavelength Bureau

CIRCULAR

Guidelines on Financial Regime for the Radio Frequency Management Agency

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Pursuant to Decree No. 57/2002/NĐ-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on Fees and Charges;

Pursuant to Decree No. 56/CP dated October 2, 1996 of the Government on public service enterprises;

Pursuant to Decree No. 10/2002/NĐ-CP dated January 15, 2002 of the Government on financial regime applicable to units with income;

Based on the proposal of the Ministry of Posts and Telecommunications at Circular No. 513/BBCVT-KHTC dated April 4, 2003 regarding "Guidelines on Financial Management Regime for the Radio Frequency Management Agency",

The Ministry of Finance hereby provides guidelines on the financial regime for the Radio Frequency Management Agency as follows:

A. GENERAL PROVISIONS

1. Scope of Application: Due to its organizational and operational characteristics, the Radio Frequency Management Agency (hereinafter referred to as RFMA) shall apply the financial management regulations stipulated in this Circular.

2. The RFMA is responsible for managing and utilizing capital, assets, and other resources allocated by the State to perform its functions and tasks. It has the right to utilize state land, capital, and assets to organize other business activities but must not affect the performance of tasks assigned by the State.

3. If the RFMA engages in other business activities, it must operate them separately according to accounting principles, ensuring profitability, and may not offset losses from other business activities with profits from state-assigned activities.

B. SPECIFIC PROVISIONS

I. Rights and Responsibilities of the RFMA in Managing and Utilizing Capital and Assets:

1. The State shall provide initial capital for investment in fixed and current assets appropriate to the scale and tasks assigned, and the RFMA shall be responsible for managing and using these assets and capital efficiently, implementing depreciation of fixed assets in accordance with current regulations.

2. The RFMA may borrow funds from credit organizations, enterprises, and individuals in accordance with legal provisions but shall not change ownership forms and shall be responsible for repaying principal and interest in accordance with commitments when raising funds.

The Director of the RFMA shall be responsible for raising and using funds for their intended purposes and effectively.

3. The RFMA may sell or liquidate assets that are no longer needed or obsolete to recover capital.

When selling or liquidating assets, a technical evaluation board must be established to assess the value of the assets and conduct auctions in accordance with legal provisions. The difference between the proceeds from the sale or liquidation of assets and their remaining book value and liquidation costs (if any) shall be accounted for as follows:

- If the proceeds from the sale or liquidation of assets exceed the remaining book value and liquidation costs (if any), the excess amount shall be recorded in the Development Investment Fund for investment in infrastructure and equipment renewal.

- If the proceeds from the sale or liquidation of assets are less than the remaining book value and liquidation costs (if any), the shortfall shall be recorded as expenses.

4. For all asset losses, a record must be made to determine the extent of loss, cause, and responsibility. Loss handling shall follow the principle that:

- If caused by subjective reasons of collectives or individuals, the person causing the loss shall bear compensation in accordance with legal provisions. The Director of the RFMA shall decide on the amount of compensation.

- Assets that have been insured shall be compensated by insurance organizations.

- Any remaining loss (after deducting the compensation paid by the person causing the loss and insurance compensation) shall be recorded as expenses in the period.

- In cases of asset loss due to force majeure (natural disasters, fires...), the RFMA shall develop a handling plan and report to the Ministry of Finance and the Ministry of Posts and Telecommunications. The Ministry of Posts and Telecommunications shall make a decision on handling after obtaining the written opinion of the Ministry of Finance.

After handling the loss, the RFMA must adjust its accounting records in accordance with the handling decision.

II. Financial Results and Handling of Financial Results:

1. Revenue.

1.1. Revenue items include:

- Fees for issuing radio frequency usage permits.

- Fees for using and protecting radio frequencies.

- Other revenues (if any).

The levels of these fees and charges shall be implemented in accordance with current regulations of the Ministry of Finance.

Other revenue items shall be implemented in accordance with regulations for state-owned enterprises engaged in public services.

1.2. If there are other revenue items related to radio frequencies, the RFMA must report to the Ministry of Posts and Telecommunications and the Ministry of Finance to coordinate in determining the level of revenue and collection methods.

1.3. The RFMA is responsible for maintaining accounting records to fully track all revenue sources in accordance with the state's prescribed regulations. In cases where special receipts or invoices are used, they must be registered with the Ministry of Finance (General Tax Department).

2. Expenditure.

The RFMA may retain 90% of the total revenue from radio frequency fees and charges for its operations, specifically as follows:

2.1. Content of expenses:

- Depreciation of fixed assets: Depreciation shall be calculated in accordance with current regulations of the Ministry of Finance.

- Wages, salaries, allowances, social insurance contributions, health insurance contributions, and trade union fees shall be based on wage rates approved by the Ministry of Posts and Telecommunications in accordance with current state regulations.

- Midday meal expenses for employees: The amount shall be decided by the Director of the RFMA in accordance with the financial conditions of the agency, but shall not exceed the minimum wage set by the State for civil servants.

- Expenses for printing application forms and radio frequency usage permits.

- Material, fuel, and energy costs used during inspection, supervision, and interference resolution processes.

- Regular maintenance and major repair expenses for assets and equipment.

- Purchase of tools and equipment.

- External service expenses such as electricity, water, telecommunications, external repairs (regular maintenance of fixed assets), auditing, payment for technical documentation, patents, and other outsourced services.

- Research project expenses.

- Insurance premiums for assets.

- Travel expenses.

- Interest payments on bank loans.

- Payments to collecting agencies (if any).

- Other cash expenses such as travel expenses, rental of fixed assets, land rental, labor protective clothing, employee training and development, reception and ceremonial expenses, conference expenses, administrative management expenses...

2.2. On the basis of economic and technical norms and current state financial expenditure regulations, and the provisions of this Circular, the Radio Frequency Management Department shall establish internal standards and expenditure regimes to ensure regular operations consistent with the characteristics of frequency inspection and management work and to ensure the principle of economical and effective use of funds.

For regular business expenditures, depending on each specific content and task, if deemed necessary and effective, the Director of the Radio Frequency Management Department may decide and be responsible for determining higher or lower expenditure levels than those prescribed by the state within the scope of available funds.

3. Financial result handling:

3.1. Pay 10% of the total actual revenue from frequency fees and charges into the State budget.

3.2. Establish reserves:

- After the annual settlement has been approved, the excess revenue from frequency fees and charges (after deducting payments to the State budget) that exceeds expenses shall be allocated to the following reserves at the following rates:

+ Development Investment Reserve: minimum allocation rate of 50%

+ Reward and Welfare Reserve: allocation rate equal to three months' salary if the amount paid into the State budget in the reported year is higher than the previous year, or two months' salary if the amount paid into the State budget in the reported year is equal to or lower than the previous year. The allocation ratio to each reserve shall be decided by the Director of the Radio Frequency Management Department after consulting with the trade union.

In cases where the Development Investment Reserve has been established at 50% of the excess revenue over expenses, and the Reward and Welfare Reserve has been established at three months (or two months) of salary, any remaining surplus shall be fully transferred to the Development Investment Reserve.

In cases where the Development Investment Reserve has been established at 50% of the excess revenue over expenses, and the remaining amount is insufficient to establish the Reward and Welfare Reserve at three months (or two months) of salary, the allocation to the Development Investment Reserve will be reduced accordingly to ensure that both reserves are established as required.

- Post-tax income from other business activities (if any) shall be added to the excess revenue over expenses to allocate to the reserves.

3.3. Procedures, timing for establishing reserves, and purposes of using the reserves of the Radio Frequency Management Department shall be implemented according to the rules applicable to state-owned enterprises engaged in public services.

4. Financial Plan:

Annually, based on assigned tasks and financial guidance from relevant authorities, the Radio Frequency Management Department shall prepare a financial revenue and expenditure plan and report it to the Ministry of Posts and Telecommunications and the Ministry of Finance. The Ministry of Posts and Telecommunications shall approve the Radio Frequency Management Department's financial plan after obtaining written agreement from the Ministry of Finance.

5. Accounting Audit, Financial Reporting, and Financial Transparency:

5.1. Preparation of Financial Reports:

Quarterly and annually, the Radio Frequency Management Department shall be responsible for preparing financial reports in accordance with current regulations and submitting them to the Ministry of Posts and Telecommunications and the Ministry of Finance.

The Director of the Radio Frequency Management Department shall be legally responsible for the accuracy and truthfulness of the reports.

5.2. Accounting Audit and Financial Report Review:

- Quarterly and annually, the Radio Frequency Management Department shall be responsible for auditing the accounts and reviewing the financial reports of its subordinate units.

- The Ministry of Posts and Telecommunications shall lead the coordination with financial agencies and tax authorities to organize audits and approve the financial reports of the Radio Frequency Management Department.

- The Enterprise Finance Bureau and the Taxation Bureau shall be responsible for auditing compliance with financial systems, accounting practices, budgetary discipline, and the accuracy and truthfulness of financial reports.

- Any violations of accounting systems, financial expenditure and income regulations, budgetary payments, and reserve establishment and usage regulations of the Radio Frequency Management Department shall be subject to administrative and economic penalties as stipulated by law.

5.3. Public Disclosure of Financial Reports:

Based on the annual financial report approved by the Ministry of Posts and Telecommunications, the Radio Frequency Management Department shall publicly announce it before the staff meeting of the Radio Frequency Management Department.

C. IMPLEMENTATION

1. This Circular takes effect fifteen days from the date of publication in the Official Gazette. All previous regulations inconsistent with this Circular are hereby repealed.

2. During implementation, any difficulties should be promptly reported to the Ministry of Finance and the Ministry of Posts and Telecommunications for resolution measures to be taken./.