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THE MINISTRY OF
FINANCE
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SOCIALIST REPUBLIC OF
VIET NAM
Independence - Freedom – Happiness
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No: 65/1999/TT-BTC
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Hanoi, June 07, 1999
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CIRCULAR
GUIDING THE IMPLEMENTATION OF FINANCIAL OPENNESS AT STATE
ENTERPRISES
Pursuant to Decree No. 59/CP of October 3,
1996 of the Government issuing the Regulation on financial management and
business cost-accounting at State enterprises;
Pursuant to Decree No. 27/1999/ND-CP of April 20, 1999 of the Government
amending and supplementing the Regulation on financial management and business
cost-accounting at State enterprises issued together with Decree No. 59/CP of
October 3, 1996 of the Government;
Pursuant to Decree No. 07/1999/ND-CP of February 13, 1999 of the Government
issuing the Regulation on exercising democracy at State enterprises;
Pursuant to Decision No. 225/1998/QD-TTg of October 20, 1998 of the Prime
Minister issuing the Regulation on financial openness toward the State budget
at all levels and units of budget drafting, State enterprises and funds with
revenues coming from the people�s
contributions;
The Ministry of Finance provides the following guidance for the carrying out of
financial openness at the State enterprises:
I. AIM OF FINANCIAL OPENNESS
AT STATE ENTERPRISES
- To properly exercise the powers, obligations
and responsibilities of laborers in the realization of democracy at State
enterprises, practicing thrift and fighting against waste and corruption,
raising the efficiency of production and business activities and preserving and
developing the capital of the State.
- To supply the State management agencies with
the grounds to assess the situation and efficiency of the business activities
of the enterprises, hence to take measures to strengthen the management of the
enterprises.
- To provide the basis for domestic and foreign
investors to study and decide to invest in the enterprises, and for creditors
to evaluate the capacity of payment of due debts.
II. CONTENTS AND FORM OF
FINANCIAL OPENNESS
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- Each year, the independent State enterprises,
member enterprises with independent cost-accounting and the centralized
cost-accounting sector of the State corporations must compile and send their
financial reports to the State agency as currently prescribed. The State
corporations must make the integrated financial report of the whole corporation
and send them to the financial management agency of the same level, the General
Tax Department and the agency that decides the establishment of the enterprise.
- The Managing Board or the Director of the
enterprise (for State enterprises without managing boards) shall have to
explain the financial questions at the request of State agencies in performing
their managerial function as prescribed by the Government.
2. Openness to the Party organization, mass
organizations and laborers at the enterprise:
At the end of each quarter and each fiscal year
the Managing Board or the Director of the enterprise (for enterprises without
managing boards) has the duty to publicize a number of financial
situations and the settlement of the interests of the laborers at the
enterprise as follows:
a/ Contents to be publicized:
+ To publicize the situation of the properties,
the debts to be paid, the capital of the State, the funds, the turnover, the
total production cost, the business results, the remittances to the State
budget, to the social welfare and health insurance funds, the trade union
expenditures, the situation of the labor and income of the laborers at the
enterprise and the various allocations from the State budget.
+ The report to explain (or illustrate) the
situation of the management of the capital and properties, management of the
turnover and expenditures, the implementation of the financial policies and
regimes, the application of measures for the practice of thrift and the fight
against waste and corruption at the enterprise, particularly in the assurance
of the interests of the workers such as wages and bonuses, social and health
insurances and other welfare benefits.
Basing itself on the characteristics of the
lines and branches of business and the receivers of the information of the
enterprise, the managing board or the director (for enterprises without
managing boards) shall agree with the standing board of the Party Standing
Committee and the Executive Board of the trade union on which contents that
need to be periodically reported to the key leading officials of the Party and
mass organizations, the sections and departments at the enterprise as well as
which contents that need to be reported to the workshops and production teams
as well as to all laborers of the enterprise. The document for publicization
must be signed and sealed by the Chairman of the Managing Board or the director
(for enterprises without managing boards).
b/ Form of openness:
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- Congress of laborers and employees (with the
participation of all or only representatives) held in each production team or
group and each section or department then in the whole enterprise.
- Information briefed at the periodical meetings
of the key officials of the enterprise.
- Popularization of the information at the
meetings of the enterprise at the workshops, teams (groups) and sections
(departments) organized by the personnel responsible for production.
- Information given at the meetings of the trade
union and other political and social organizations at the enterprise.
- Written information notices or printed matters
sent to each production team (group) and each section (department) or posted up
at convenient places in the enterprise.
- Information given through the broadcasting
system of the enterprise.
3. Publicization outside the enterprise is aimed
at providing the investors and customers with a basis for their decision on
economic relations with the enterprise:
The contents that need to be publicized to the
investors and customers are: the statutory assets actually existing at the time
of the publicization, the debts to be paid (in which the overdue debts must be
also specified) the properties structure and business results of the
enterprise. In addition, the enterprise has the duty to meet other requests
depending on its relations with the creditors and investors.
The enterprises operating in the public-utility
sector in the domain of national defense and security are not allowed to
publicize data on the properties for special use in national defense and
security.
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The time points for financial publicization by
the State enterprises is stipulated at Article 11 of Decision No. 225/1998/QD-TTg
of January 20, 1998 of the Prime Minister. More concretely:
Financial publicization by the State enterprises
shall be made periodically every quarter and year. The time for financial
publicization for each quarter and each year is prescribed for each form of
publicization as follows:
- 60 days after the last day of the quarter and
year for the form of publication of printed matters (the data basis for
publicization is the reports on quarterly and yearly financial account
settlement made according to current prescriptions).
- 30 days after the last day of each quarter and
of the year for the form of publicization by posting up at the enterprise (the
data basis for publicization is the quick reports of the enterprise to the
related State management agencies).
- 15 days after the last day of each quarter and
of the year for the form of information given at the conferences of the
enterprise (the data basis for publicization is the quick reports of the
enterprise).
IV. ANSWERING QUESTIONS
1. Organizations and individuals allowed to
receive information on financial publicization as stipulated in this Circular
have the right to put questions on the contents of the financial publicization.
2. The Managing Board and the director of the
enterprise where the financial publicization is carried out must answer
questions on the contents of the financial publicization.
3. The questions must be answered to the
questioners five days at the latest after receiving the contents of the
questions. In case the contents of the questions are complicated and need more
time to prepare an appointment must be made with each questioner about his/her
questions, but not later than 20 days after receiving the contents of the
question.
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V. IMPLEMENTATION PROVISIONS
1. This Circular takes effect 15 days after its
signing and replaces Section II on publicization of the annual financial
reports of the State enterprises stipulated in Circular No. 73-TC/TCDN of
November 12, 1996 guiding the making, publicization and inspection of the
financial reports and accountancy inspection at the State enterprises and Point
3, Section IV on publicization of annual financial reports stipulated at
Circular No. 06-TC/TCDN of February 24, 1997 guiding the regime of financial
management at public-utility State enterprises of the Ministry of Finance.
2. If any question arises in the course of
implemen-tation, the State enterprises should report in time to the Ministry of
Finance for study, supplementation or amendment.
THE MINISTRY OF
FINANCE
Pham Van Trong
PUBLICIZATION
OF A NUMBER OF FINANCIAL NORMS FOR THE PARTY AND MASS ORGANIZATIONS AND
LABORERS WITHIN THE ENTERPRISES
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Previous year
(quarter)
Reporting year
(quarter)
1. Current assets.
- Monetary assets.
- Short-term financial investment.
- Debts to be recovered.
- Bad debts.
- Goods in stock.
- Other current assets.
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- Primary price of fixed assets.
- Accumulative depreciation value.
- Long-term financial investment.
- Expenditures on half-finished capital
constructions.
- Long-term amortizations and collaterals
3. Due debts.
a/ Short-term debts.
- Including overdue ones.
b/ Long-term debts.
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4. Capital and fund sources.
- Business capital (capital of owner).
- Disparity in revaluation of properties.
- Disparity of exchange rates.
- Fund for business development.
- Reserve fund.
- Profits not yet distributed.
- Reward and welfare funds.
- Source of investment in capital
construction.
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a/ Development investment fund.
+ Balance at the beginning of term.
+ Disbursement within term.
+ Expenditures within term.
Including expenditures on training and
fostering courses to raise the laborers’ qualifications.
b/ Financial reserve fund.
+ Balance at the beginning of term.
+ Disbursement within term.
+ Expenditures within term.
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+ Balance at the beginning of term.
+ Disbursement within term.
+ Expenditures within term.
d/ Reward-welfare funds.
+ Balance at the beginning of term.
+ Disbursement within term.
+ Real expenditures within term.
Including: expenditures on humanitarian and
social work.
6. Business results.
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- Total turnover.
Including: revenues from State allowances and price
subsidies.
- Total expenditures.
Including:
+ Expenditures on management activities.
+ Expenditures on guests reception.
+ Expenditures on conferences and
transactions.
+ Expenditures on commission and mediation.
+ Payment of fines for breaches of economic
contracts.
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In which:
+ From business activities.
+ From sales and purchases of credit bills,
government bonds and shares.
+ Hire and wholesale allocation of properties.
+ From assignment, sale and liquidation of
properties.
+ Activities in joint ventures and link-up
ventures.
+ Dividends, interests of deposits and loans.
- Total profit from after-tax income of the
enterprise.
- Accumulative losses.
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- Payable taxes.
- Taxes already paid in the term.
8. Remittances of health and social
insurances, trade union expenditures.
- Total amount to be paid.
- Amount already paid in the term.
9. Allocations from the State budget.
- Investments in capital construction.
- Current capital.
- Non-business expenditures.
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10. Labor.
- Average labor force in the term.
+ Short-term contracts.
+ Long-term contracts.
11. Income.
- Total wage fund.
- Other incomes.
+ Average wage.
+ Average income.
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Notes:
- For law-breaching enterprises this norm should
be added: The fine for law breaching, which comes under the responsibility of
the enterprise (it must not be accounted for in the expenditures on business
activities or expenditures on other activities).
- For State enterprises operating in
public-utility activities a number of the following norms should be added:
+ Turnover from public-utility activities.
+ Expenditures on public-utility activities.
+ Profits earned from public-utility activities.
+ State budget allowances for the reward and
welfare funds.
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