Decision No. 987/2004/QĐ-NHNN on the issuance of Financial Regulations for revenue-generating units under the State Bank of Vietnam

Pursuant to …;

Regarding the issuance of Financial Regulations for revenue-generating public service units

under the State Bank

_____________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 100/1998/NĐ-CP dated December 10, 1998 of the Government stipulating the financial regime of the State Bank of Vietnam;

Pursuant to Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government promulgating the financial regime applicable to revenue-generating public service units;

At the proposal of the Director of the Accounting and Finance Department,

DECISION:

Article 1. The Financial Regulations for revenue-generating public service units under the State Bank are hereby issued. The subjects to which these regulations apply include: Banking Times, Banking Magazine, and Credit Information Center.

Article 2. This Decision shall take effect from January 1, 2005. Any previous provisions that conflict with this Decision shall cease to be effective.

Article 3. The Heads of the Office, the Directors of the Accounting and Finance Department, the Director of the General Audit Department, and the Heads of the revenue-generating public service units shall be responsible for implementing this Decision.

REGULATIONS

Financial matters for revenue-generating public service units

under the State Bank

(Issued pursuant to Decision No. 987/2004/QĐ-NHNN dated August 5, 2004)

PART I

GENERAL PROVISIONS

Article 1. Revenue-generating public service units under the State Bank (hereinafter referred to as units) shall perform public service tasks serving monetary, credit, and banking activities according to the operational regulations of the Governor of the State Bank. In addition to public service tasks, the units may carry out service supply activities without affecting the completion of assigned public service tasks and must comply with relevant laws of the State.

Article 2. The units shall maintain a balance sheet and use certain accounts in the State Bank's accounting system to reflect their activities, in accordance with the State Bank's accounting and financial regulations. The State Bank shall allocate management of certain assets and necessary operating funds to the units, which shall be responsible for using such assets and funds reasonably, economically, efficiently, and for their intended purposes.

Article 3. The units shall independently organize staffing and organizational structure in accordance with their functions and tasks, and enter into various types of labor contracts based on job requirements and their own financial capacity.

Chapter II

SPECIFIC PROVISIONS

I. Sources of finance for revenue-generating public service units

Article 4. The sources of finance for revenue-generating public service units include:

1. Funds provided by the State Bank:

a. Capital for purchasing equipment to serve public service activities, implemented annually according to plans approved by the Governor. Purchasing fixed assets or major repairs of fixed assets shall be carried out in accordance with current regulations of the State and the State Bank.

b. Operating expenses to supplement unit operations based on the difference between revenues and expenditures as stipulated in Clause 2, Article 4 and Clauses 2 and 3, Article 5 of these Regulations. This fund will be provided stably for three years, but may be adjusted annually if there are changes in unit operations or national policies, at a rate determined by the Governor of the State Bank based on the annual financial budget of the State Bank.

c. Funds for carrying out urgent tasks assigned by the Governor of the State Bank.

2. Revenues of the units:

a. Revenues from public service activities: Based on assigned public service tasks, the units shall specify each revenue item in detail in their own Financial Regulations.

b. Other lawful revenues: Proceeds from the liquidation of tools and consumables after deducting liquidation costs (if any), fines for breach of contract, surplus funds, gifts, etc. (if any).

c. Revenues from other service supply activities. The level of revenue for these activities shall be determined by the unit head based on the principle of covering costs and generating reserves.

II. Contents of expenditure for revenue-generating public service units:

Article 5. The contents of expenditure for the units include:

1. Non-recurring expenditures:

a. Investment development expenditure: Expenditure for purchasing equipment to serve unit operations. This is non-recurring expenditure arising during the operation of the unit. Annually, the units shall prepare plans for the need to purchase fixed assets and submit them to the Governor of the State Bank for review and decision.

b. Expenditure for carrying out urgent tasks assigned by the Governor of the State Bank.

2. Regular operational expenditures according to the functions and tasks assigned by the Governor of the State Bank.

a. Professional activity expenditure: Direct expenditures to support public service activities of the unit. The unit head shall specify the details of these expenditures based on the requirements of the professional tasks assigned by the Governor.

b. Expenditures for personnel, including: Salary, wages, allowances, meal expenses, transaction attire and safety equipment expenses, hazardous duty allowances, contributions based on salary, social welfare expenses, support for mass organizations' activities, hardship and termination allowances according to regulations.

c. Management and administrative expenditure: Expenditures for regular administrative and public service activities supporting unit operations. These expenditures are calculated based on the management and administrative expenditure standards approved by the Governor, based on the number of staff authorized for the unit.

The contents of management and administrative expenditure include: Material and printing paper expenses, postal and telephone expenses, electricity and water expenses, office cleaning expenses, travel expenses, training and professional education expenses, auditing and inspection expenses, publication and promotional advertising expenses, conference and short-term training expenses, reception and ceremonial expenses, and other management and administrative expenses.

d. Asset-related expenditure: Depreciation of fixed assets, maintenance and repair of fixed assets and tools, tool procurement expenses, asset rental expenses. Rental of assets by the units must be approved by the Governor of the State Bank.

e. Other expenditures (outside the above-mentioned expenditure items).

3. Service supply activity expenditure:

Expenditures serving service supply activities outside the specialized tasks of the unit. These expenditures are based on valid receipts and comply with the principle that service supply revenues must cover service supply costs and generate reserves.

III. Financial Management Principles for Service Units with Revenue

Article 6. Principle of Assigning Operating Funds: The Governor of the State Bank assigns annual revenue-expenditure surplus targets to each unit based on the principle of increasing revenue, saving expenditure, and managing the revenue-expenditure surplus.

1. The first year's assignment must ensure:

a. The revenue-expenditure surplus of the unit, which includes service activity revenue (point a, Clause 2, Article 4) minus professional business expenditure (point a, Clause 2, Article 5), shall not be lower than the previous year (for units with positive surplus), not higher than the previous year (for units with negative surplus), and should aim to gradually increase (or decrease) over the years (excluding abnormal factors due to changes in state policies and the State Bank's regulations).

b. Wages and income of employees shall not be lower than the previous year before implementing the assignment.

2. Subsequent years' assignments will be based on plans established by the units and approved by the State Bank.

Based on the approved plan, funding allocation will be carried out regularly at the beginning of each quarter.

Article 7. Principles of Managing and Accounting for Revenue and Expenditures:

1. All revenues and expenditures arising from the operation of the unit must be fully, accurately, and promptly recorded in accounting books according to prescribed regulations.

2. Units must collect all revenues according to regulations, without loss, and may not arbitrarily exempt or reduce revenues. It is strictly prohibited to record revenues outside of accounting books or retain revenues to establish illegal funds in any form.

3. Units must spend according to state and State Bank regulations. All expenditures must be based on legitimate and valid vouchers. It is strictly prohibited to record unspent expenditures or to record expenditures to establish illegal funds. No expenses listed in Clause 8, Article 8 of Decision No. 657/2003/QĐ-NHNN dated June 25, 2003 of the State Bank Governor can be recorded as expenses.

4. Units may temporarily borrow from the State Bank's Branch Office to meet immediate expenditure needs while awaiting sufficient revenue and State Bank funding. Temporary borrowings must be settled within the same year.

5. When engaging in services outside their assigned tasks, the head of the unit must prepare a plan and budget for such activities and submit them to the State Bank Governor for approval before implementation.

Article 8. Principles of Managing, Accounting, and Settling Accounts for Large Purchases and Repairs of Fixed Assets:

1. The execution of large purchases and repairs of fixed assets in units must comply with current state and State Bank regulations on investment and construction.

2. Units are responsible for managing and using all assigned assets properly, maintaining records according to current accounting regulations, accurately recording all assets and asset movements, establishing strict management rules to ensure effective asset utilization.

3. When there is a need to sell or liquidate fixed assets, the unit must prepare documentation and follow procedures as stipulated, sending it to the State Bank (Accounting and Finance Department) for review and implementation upon receipt of approval notification. Proceeds from sales or liquidation, after deducting liquidation and sale costs (if any), must be remitted to the State Bank (Accounting and Finance Department) according to prescribed regulations.

Article 9. Wages and Salaries of Employees:

1. Based on the financial results of the year, the wage and salary fund of the unit for the near term is determined as follows:

- For self-financing service units: The adjustment factor for increasing the minimum wage shall not exceed twice the national minimum wage set by the state.

- For partially self-financing service units: The adjustment factor for increasing the minimum wage shall not exceed 1.5 times the national minimum wage set by the state.

Within the total wage and salary fund determined above, after reaching agreement with the trade union and publicizing within the unit, the head of the unit decides on the payment of wages and salaries to employees based on work quality and effectiveness.

2. In cases where service units with revenue complete and exceed assigned targets, the State Bank Governor will consider supplementing the adjustment factor to the maximum level specified in Decree No. 10/2002/NĐ-CP dated January 16, 2002, issued by the Government on Financial Regulations for Service Units with Revenue.

3. When the state adjusts wage regulations and increases the minimum wage, service units must cover additional expenses according to new policies and regulations. At the end of the fiscal year, the State Bank Governor will adjust the unit's wage and salary fund accordingly.

Article 10. Establishing Reserves:

Annually, after covering all operating costs and fulfilling all obligations to the state budget, if there is a surplus of revenue over expenditure, the unit may establish reserves: Stabilization Income Reserve, Reward and Welfare Fund, and Development Activity Fund. The levels of these reserves are decided by the State Bank Governor. The use of these reserves is governed by Article 18 of Decree No. 10/2002/NĐ-CP dated January 16, 2002, issued by the Government on Financial Regulations for Service Units with Revenue.

IV. Accounting Organization and Financial Reporting

Article 11. Units use Account 3639 - "Other Receivables" and Account 468 - "Other Payables" in the State Bank's Accounting Balance Sheet to track and reflect all lawful and valid revenues and expenditures arising during operations.

Revenues are recorded on the credit side of Account 3639, and expenditures are recorded on the debit side of Account 468. At year-end, depending on the nature of each account, units transfer revenues or expenditures to one of the two accounts, leaving a balance on only one account.

Units open detailed sub-accounts to track revenues and expenditures according to the content and nature of each revenue and expenditure.

For units with a larger revenue surplus than expenditures, after being approved for settlement in the first quarter of the following year, the unit shall transfer the remaining surplus to the income of the State Bank (account 796 - Revenue from operations of public institutions).

Article 12. Units may use account 467 - Operating funds in the State Bank's accounting system to reflect the operating funds provided by the State Bank for regular activities. At the end of the fiscal year, unused operating funds shall be carried over to the next year for use.

Article 13. Units may open account 591 - Other payments between State Bank units at the Trading Department to carry out transactions in payment and at the Accounting and Finance Department to receive funds for purchasing fixed assets.

Article 14. Each year in September, units prepare their financial plans for the following year and submit them to the State Bank (Accounting and Finance Department) before September 10 for review and notification to the units for implementation. The annual financial plan of each unit includes:

- Revenue and expenditure plan (with detailed explanation);

- Fixed asset procurement plan and information technology equipment;

- Major repair plan for fixed assets;

During the implementation of the revenue and expenditure plan, units may adjust the budget estimates among the items of regular activity expenditures but must ensure that the maximum revenue-expenditure difference does not exceed (be lower than) the amount allocated.

Article 15. Implementation reports of the financial plan and the deadlines for submitting these reports by units shall be carried out in accordance with the current regulations of the State Bank.

Chapter III

IMPLEMENTING PROVISIONS

Article 16. Based on this Regulation, heads of public institutions are responsible for issuing internal revenue and expenditure regulations for their units as a basis for organizing and implementing.

Article 17. The Director of the Accounting and Finance Department is responsible for guiding and organizing the implementation of this Regulation for the Banking Times, Banking Magazine, and Credit Information Center.

Article 18. The Director of the General Audit Department is responsible for organizing internal audits of public institutions according to the Internal Control and Internal Audit Regulations of the State Bank.

Article 19. Any supplementation or amendment to this Regulation shall be decided by the Governor of the State Bank.