Circular No. 97/2009/TT-BTC guiding financial regulations for the Radio Frequency Wavelength Management Department

CIRCULAR

Guidelines on financial regulations for the Radio Frequency Management Agency

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget 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. 43/2006/NĐ-CP dated April 25, 2006 of the Government stipulating the autonomy and responsibility for implementing tasks, organizational structure, staffing, and finance for public service units;

Pursuant to Decision No. 88/2008/QĐ-TTg dated July 4, 2008 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the Radio Frequency Management Agency under the Ministry of Information and Communications;

The Ministry of Finance hereby provides guidelines on financial regulations for the Radio Frequency Management Agency under the Ministry of Information and Communications as follows:

Article 1. General Provisions

1. The Radio Frequency Management Agency is a state management agency, due to its organizational and operational characteristics, it applies a financial mechanism similar to that of a self-financing public service unit, taking into account factors such as investment, regular expenses, labor, and salaries according to Decision No. 88/2008/QĐ-TTg dated July 4, 2008 of the Prime Minister. 2. The implementation of the financial management mechanism of the Radio Frequency Management Agency must ensure the following objectives and requirements:

- Fulfilling assigned functions and tasks effectively;

- Being proactive in using allocated financial resources, saving and utilizing them efficiently to prevent waste; creating conditions for investing in equipment and infrastructure to serve professional activities;

- Promoting the restructuring of organizational structures, building a clean and strong cadre with high professional qualifications; granting autonomy and responsibility to unit heads in organizing work, employing labor, and utilizing financial resources;

- Implementing transparency and democracy in accordance with the law, ensuring the legitimate rights of cadres and civil servants.

3. The Radio Frequency Management Agency is responsible for opening accounting books and organizing accounting records to fully track all generated revenues in accordance with the state regulations; timely and fully remitting to the state budget all fees required to be paid according to the provisions.

4. The Radio Frequency Management Agency is responsible for managing and using operating funds and assets in accordance with current regulations and the guidelines set forth in this Circular.

5. The Radio Frequency Management Agency has the right to autonomously organize service activities consistent with its professional field, capabilities, and in compliance with the law.

For service provision activities, separate accounting must be conducted to ensure profitability, without using profits from state-assigned activities to offset losses in business service activities.

Article 2. Financial Sources

1. Revenue from frequency licensing fees is retained for use in supporting the operations of the Radio Frequency Management Agency in accordance with the law. The levels of various fees and retention rates shall be implemented in accordance with the current regulations of the Ministry of Finance.

2. Non-recurring funds provided by the state budget (if any), including:

a) Funds for implementing scientific and technological tasks at the ministry or national level (if any);

b) Funds for training and staff development programs (if any);

c) Funds for implementing tasks commissioned by competent state authorities (surveys, planning, inspections, other tasks);

d) Funds for implementing urgent tasks assigned by competent authorities;

đ) Funds for implementing personnel reduction policies in accordance with state regulations (if any);

e) State-concentrated construction investment capital;

g) Counterpart funds for implementing projects assigned by competent authorities;

h) Other lawful sources of income as prescribed by law (if any).

3. Revenue from service activities in accordance with the law.

1. Expenditures of the Radio Frequency Management Agency include:

Article 3. Content and amount of expenditure

a) Salaries and wages: Costs for salaries and wages for cadres, employees, and workers based on state-prescribed rank and position.

b) Contributions to social insurance, health insurance, trade union fees, and unemployment insurance as prescribed by the state.

c) Allowances for hazardous work or other allowances, travel expenses for leave as prescribed by the state.

d) Labor protection costs.

đ) Costs for research topics at the grassroots level.

e) Training, seminar, and staff development costs.

g) Costs for printing frequency usage permits and related documents.

h) Material, fuel, and energy costs used during inspection, control, and interference handling processes.

i) Regular maintenance, repair, and major maintenance costs for assets, equipment, and facilities.

k) Purchase and supply costs for tools and equipment.

l) Costs for external services such as electricity, water, security, communication, payment for technical documentation, patents, and other outsourced services (auditing, land leasing, station leasing, equipment leasing...).

m) Severance pay.

n) Asset insurance.

o) International cooperation costs, inbound and outbound delegation costs; international frequency registration fees; contributions to international telecommunications organizations.

p) Costs for collection agencies (if any).

q) Administrative expenses: Work-related expenses, reception and ceremonial expenses, conference expenses, administrative management expenses.

q) Administrative expenses: mission expenses, reception and ceremonial expenses, conference expenses, administrative management expenses.

For management expenses and regular business operation expenses that have standard rates and quotas prescribed by competent state agencies, the Radio Frequency Management Agency may decide on higher or lower expenditure levels for management and business operations than those prescribed by competent state agencies (except for certain standard rates and quotas and expense items specified in this point) and such decisions must be stipulated in internal expenditure regulations. For special expense items or those not yet regulated by competent authorities, the Radio Frequency Management Agency must establish quota and expenditure systems within its internal expenditure regulations to ensure ongoing activities are consistent with the characteristics of frequency inspection and management work and to ensure the principle of economical and effective fund usage. Internal expenditure regulations must be submitted to the Ministry of Information and Communications and the Ministry of Finance for monitoring and supervision; and to the State Treasury where the unit has an account for expenditure control purposes. In cases where there are provisions inconsistent with national regulations, within fifteen days from receiving the report, the Ministry of Information and Communications shall issue comments requiring the unit to adjust accordingly; and send them to the Ministry of Finance and the State Treasury where the unit has an account. Implementing internal expenditure regulations must ensure legal and valid vouchers and invoices according to current regulations, except for those items currently allowed to be paid on a lump-sum basis.

Procurement and repair of assets and equipment, if required to undergo bidding, shall be conducted in accordance with current regulations.

r) Other expenditures as prescribed to serve fee and tax collection work.

s) Expenditures for service activities, including:

- Wages, salaries, allowances, social insurance contributions, health insurance contributions, trade union fees, unemployment insurance contributions, depreciation of fixed assets, implemented according to current regulations;

- Taxes payable as prescribed by law;

- Rent and repair of fixed assets; purchase of raw materials, fuel, and external labor services; interest payments on loans (if any); other expenditures, based on actual expenditure vouchers ensuring cost recovery and profit.

t) Standards and quotas for expenditures must comply with national regulations:

- Standards and quotas for vehicle use;

- Standards and quotas for office space;

- Standards and quotas for official telephones at home and mobile phones;

- Travel allowance for foreign trips;

- Reception allowance for foreign guests and international conferences in Vietnam;

2. Expenditure from non-recurring funds provided by the state budget (if any):

The expenditure system for each non-recurring task as stipulated in Clause 2 of Article 2 above shall be implemented according to current regulations.

Article 4. Utilization of financial activity results in the year and additional income distribution:

1. Quarterly and annually, after covering all expenses and remitting taxes to the state budget as prescribed, the Radio Frequency Management Agency shall determine the surplus revenue exceeding expenses to set up funds and allocate expenditures in the following order:

a) At least seventy-five percent to establish the Development Fund for Public Services; in cases where the surplus revenue changes due to increases or decreases in frequency fees and charges or changes in the retained fee and charge ratios, leading to an increase or decrease in retained revenue, the amount allocated to the Development Fund for Public Services will be adjusted accordingly.

b) Distribute additional income to employees after setting up the Development Fund for Public Services as prescribed in Point a of Clause 1 of this Article. The total annual additional income for employees shall be implemented according to the internal expenditure regulations of the Radio Frequency Management Agency. The specific amount of additional income distributed to each employee shall be decided by the Director of the Radio Frequency Management Agency based on productivity and job quality, after reaching consensus with the grassroots trade union organization and must be stipulated in the internal expenditure regulations of the unit, and publicly disclosed in the unit as prescribed.

c) Establish the Reward Fund and Welfare Fund, and the Income Stability Reserve Fund. For the Reward Fund and Welfare Fund, the maximum contribution rate shall not exceed three months' average wages, salaries, and additional income realized during the year.

2. Distribution of additional income, establishment, and utilization of funds shall be decided by the Director of the Radio Frequency Management Agency after reaching consensus with the unit's trade union organization and must be included in the internal expenditure regulations, and publicly disclosed in the unit as prescribed.

3. Implementation of additional income distribution: Based on the financial performance of the unit for the quarter and year, aiming to promptly motivate employees to complete assigned tasks, the Director of the Radio Frequency Management Agency shall distribute additional income quarterly, with a maximum of sixty percent of the surplus revenue determined by the unit for the quarter.

By the end of the year, before January 31 of the following year, the Radio Frequency Management Agency shall determine the surplus revenue exceeding expenses and the previous year's additional income expenditure according to the unit's internal expenditure regulations to pay additional income to employees.

After approval by the Ministry of Information and Communications for the annual financial settlement: If the actual surplus revenue exceeds the amount self-determined by the Radio Frequency Management Agency and the allowable additional income expenditure is higher than the amount already distributed to employees, the unit may continue to distribute additional income according to the unit's internal expenditure regulations. If the actual surplus revenue is lower than the self-determined amount and the additional income already paid to employees exceeds the allowable additional income expenditure, the excess expenditure shall be covered by the Income Stability Reserve Fund (if available), and any remaining shortfall shall be deducted from the surplus revenue reserved for additional income distribution in the following year.

Article 5. Use of Funds

1. The Income Stabilization Reserve Fund shall be used to ensure income for employees.

2. The Reward Fund shall be used to award regular and extraordinary rewards to collectives and individuals within and outside the unit based on work performance and contributions to the unit's activities. The amount of reward shall be decided by the Director in accordance with the internal expenditure regulations of the unit.

3. The Welfare Fund shall be used to construct and repair welfare facilities, fund collective welfare activities for employees within the Bureau; provide emergency assistance to employees, including those retiring, and additional funding for employees within the establishment when implementing staff reduction. The Director of the Radio Frequency Wavelength Bureau shall decide on the use of the Welfare Fund according to the internal regulations of the unit.

4. The Development Activity Fund shall be used for investment and development to enhance activity operations, supplement capital for construction of physical infrastructure, purchase of equipment and working tools, application of scientific and technological progress, additional training and skill enhancement for employees. The use of the Development Activity Fund for investment and development must comply with the industry development plan approved by the Minister of Information and Communications.

Article 6. Article 24Management of State Assets

The Radio Frequency Wavelength Bureau shall implement state asset management in accordance with the Law on Management and Use of State Assets and current guiding documents. For fixed assets used in service activities, depreciation recovery must be carried out in accordance with the regulations applicable to state-owned enterprises. The amount of depreciation of fixed assets and revenue from the disposal of assets belonging to the state budget that the unit retains shall be used to supplement the Development Activity Fund.

Article 7. Opening Transaction Accounts

The Radio Frequency Wavelength Bureau shall open accounts at commercial banks and the National Treasury to reflect income and expenditure items, specifically:

1. At commercial banks for:

a) Collecting fees and charges to ensure favorable conditions for customers.

b) Expenditure for special purposes, including: Refunds of collected amounts to customers (if any); payment of agency service fees, collection fees; travel expenses for overseas missions; expenditures in foreign currency for purchasing specialized equipment and projects involving imported equipment, construction projects with imported equipment components; maintenance and repair costs for specialized equipment requiring overseas repair; special operational expenses in inspection, supervision, and interference handling tasks.

For income and expenditure transactions on the account opened at commercial banks, the Radio Frequency Wavelength Bureau shall prepare quarterly statements of income and expenditure transactions to be sent to the National Treasury where the Bureau has its transaction account for monitoring. The Radio Frequency Wavelength Bureau shall determine the necessary balance to ensure operations and perform special tasks of the Bureau according to permitted expenditure items at commercial banks; the remaining amount of fees and charges (after deducting the aforementioned expenditures and the necessary balance on the commercial bank account) the Radio Frequency Wavelength Bureau shall be responsible for transferring to the account opened at the National Treasury for the National Treasury to monitor and control other Bureau activities in accordance with current regulations.

c) The Radio Frequency Wavelength Bureau shall be responsible for:

- Controlling expenditure from the deposit account opened at commercial banks to ensure compliance with prescribed regulations. The National Treasury shall not be responsible for controlling these expenditures.

- Monthly declaration, submission, and settlement of collected fees and charges (the portion required to be paid to the state budget) to the state budget in accordance with current regulations.

2. Open an account at the National Treasury to reflect remaining income and expenditure items of the Bureau as stipulated (excluding those specified in Clause 1 of this Article).

Article 8. Budget Preparation and Allocation

Annually, based on assigned tasks and financial management guidelines from the finance authority, the Radio Frequency Wavelength Bureau shall prepare the budget for revenue and expenditure, submit it to the Ministry of Information and Communications for consolidation into the ministry's overall budget for revenue and expenditure, and forward it to the Ministry of Finance as prescribed. Based on the approved budget for revenue and expenditure by the competent authority, after receiving written agreement from the Ministry of Finance, the Ministry of Information and Communications shall issue a decision to approve the annual financial plan of the Radio Frequency Wavelength Bureau.

Article 9. Financial Reporting, Inspection, and Public Disclosure

1. Financial Report Preparation

Annually, the Radio Frequency Wavelength Bureau is responsible for preparing financial reports according to current regulations and submitting them to the Ministry of Information and Communications for consolidation into the final settlement report of the Ministry of Information and Communications to be sent to the Ministry of Finance.

The Director of the Radio Frequency Wavelength Bureau is responsible under the law for the accuracy and truthfulness of the report.

2. Inspection and Approval of Financial Reports

a) Quarterly and annually, the Radio Frequency Wavelength Bureau is responsible for inspecting accounting and financial reports of subordinate units.

b) The Ministry of Information and Communications is responsible for organizing the review and notifying the final settlement approval to the Radio Frequency Wavelength Bureau.

3. Public Disclosure of Financial Reports

Based on the annual financial report approved by the Ministry of Information and Communications, the Radio Frequency Wavelength Bureau shall publicly announce it at the meeting of civil servants and employees of the bureau.

Article 10. Implementation Organization

1. This Circular takes effect 45 days from the date of signature and is implemented starting from the 2009 fiscal year.

Repeal Circular No. 95/2003/TT-BTC dated October 10, 2003, issued by the Ministry of Finance, guiding the financial system for the Radio Frequency Wavelength Bureau.

2. The Development Investment Fund of the Radio Frequency Wavelength Bureau (as stipulated in Circular No. 95/2003/TT-BTC dated October 10, 2003, issued by the Ministry of Finance) will transfer any remaining balance as of December 31, 2008, to the Fund for Developing Public Services Activities.

3. Any difficulties encountered during implementation should be reported to the Ministry of Finance for study, consideration, and resolution./.