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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:
02/2003/TT-BTC
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Hanoi,
January 9, 2003
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CIRCULAR
GUIDING THE FINANCIAL MANAGEMENT REGIME FOR FOREIGN-BASED
VIETNAMESE REPRESENTATION MISSIONS
In implementation of the
Government’s Decree No. 87/CP of December 19, 1996 detailing the
decentralization of the management, elaboration, execution and settlement of the
State budget, Decree No. 51/1998/ND-CP of July 18, 1998 amending and
supplementing a number of articles of the Government’s Decree No. 87/CP of
December 19, 1996;
In order to unify the financial management of foreign-based Vietnamese
representation missions, the Ministry of Finance hereby guides the financial
management regime applicable to foreign-based Vietnamese representation
missions as follows:
I. SUBJECTS
AND SCOPE OF APPLICATION
This Circular applies to
foreign-based Vietnamese representation missions (including diplomatic
missions, Military Attaches’ Offices, trade agencies, resident bureaus of the
Radio Voice of Vietnam, Vietnam Television, Nhan Dan daily, and Vietnam News
Agency, Vietnam Cultural Center in Laos, Vietnam Economic Counselor’s Office in
Laos, Labor Management Boards…) using State budget-allocated funding, or
State-budget revenues they are allowed to retain for spending according to
current regulations.
II.
PROVISIONS ON MAKING AND EXECUTION OF REVENUE AND EXPENDITURE ESTIMATES
The foreign-based Vietnamese
representation missions shall base themselves on the assigned political tasks,
the collection regime, the budget spending criteria and limits, as well as
price fluctuations in the host countries, examination figures on budget estimates
notified by competent authorities, and the situation of execution of budget
estimates in the previous years to make annual State budget revenue and
expenditure estimates strictly according to regulations and various forms
guided by the financial agency. The estimates must fully reflect expenditures
and revenues of the representation missions according to the State budget
contents, be enclosed with explicit explanations on the calculation bases, and
be sent to the managing ministries before July 30 every year. The managing
ministries shall consider and sum up the estimates of the representation
missions together with their agencies’ budgetary revenue and expenditure
estimates, then send them to the Ministry of Finance in accordance with the
State Budget Law and current regulations.
1. State budget revenue
estimates at the representation missions:
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2. State budget expenditure
estimates at the representation missions:
On the basis of the assigned
political tasks, the spending regimes, criteria and limits as well as price
fluctuations in the host countries, the representation missions shall make
budgetary expenditure estimates according to the current State budget contents.
3. Execution of the State budget
revenue and expenditure estimates by the foreign-based Vietnamese
representation missions
On the basis of the State budget
revenue and expenditure estimates approved by the Prime Minister, the Ministry
of Finance shall notify them to the managing ministries so that the latter will
allocate budgetary revenue and expenditure estimates to each representation
mission on the principle that the total budgetary revenue and expenditure estimates
of the representation missions must be equal to the notified budgetary revenue
and expenditure estimates already approved by the Government and sent to the
Ministry of Finance and the central State Treasury.
4. Sources of State budget
funding used for allocation:
The Ministry of Finance shall
allocate funding to the Vietnamese representation missions from the following
sources:
a/ Funding allocated from the
State’ concentrated foreign currency fund:
The Ministry of Finance shall
draw up estimate-approval notices and VND payment orders (the sums inscribed on
payment orders shall be the foreign-currency amounts multiplied by the
accounting exchange rates prescribed by the Ministry of Finance). On the basis
of the payment orders of the Ministry of Finance, the central State Treasury
shall allocate funding from the concentrated foreign currency fund to the
foreign-based Vietnamese representation missions under the managing ministries.
b/ Funding allocated from the
State budget custody funds at foreign-based Vietnamese representation missions
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On the basis of the foreign
currency amounts deducted from the State budget custody funds at the
foreign-based Vietnamese representation missions, the Ministry of Finance shall
draw up notices of approval of the Vietnam-dong estimates (converted from the
foreign currency amounts deducted from the State budget custody funds,
multiplied by the accounting exchange rates prescribed by the Ministry of
Finance). On the basis of the estimate-approval notices, collection and payment
orders shall be made for accounting consular fees or other revenues overseas as
revenues while accounting the funding allocated to the foreign-based Vietnamese
representation missions as expenditures for the managing ministries.
5. Provisions on the use of
funding:
The funding estimates allocated
by competent authorities to each foreign-based Vietnamese representation
mission shall be the maximum expenditure level in the year. The heads of the
representation missions shall work out internal spending rules and make public
the spending levels in order to ensure the efficient use of the funding and
avoid wastage to the State’s public fund.
The expenditure items included
in the estimates include:
- Item 100 "Payment of
subsistence payments for officials and employees."
- Item 114 "Payment of
office and accommodation rents."
- Item 145 "Procurement of
properties exclusively used for professional tasks."
- Item 118 "Expenses for
overhaul of fixed assets in service of professional tasks and infrastructural
works."
For the remaining regular
expenditure items, depending on the characteristics of ministries or branches,
the heads of the foreign-based Vietnamese representation missions shall be
authorized to take initiative in approving the spending levels and adjusting
these expenditure items to satisfy the missions’ operation requirements, which,
however, must not exceed the total estimates already assigned by competent
authorities for these expenditure items.
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On the basis of the approved
annual estimates, the heads of the foreign-based Vietnamese representation
missions shall make public financial matters to the missions’ sections or
staff. On the basis of the regimes, criteria and limits, the specific spending
norms are decided as follows:
1. Subsistence payment:
On the basis of the competent
authorities’ decisions on sending officials on long-term working missions, the subsistence
payment levels shall be calculated according to the provisions of Joint
Circular No. 22/2001/TTLT/BTCCBCP-BTC of May 9, 2001. Subsistence payments
shall be paid according to the number of days of actual presence in the host
countries.
2. Subsistence payment
allowances: For cases of concurrently driving cars or taking over some tasks
for people sent on working missions, an allowance shall be added. Depending on
the characteristics of each ministry and the practical situation of each
country, the competent authorities of the ministries shall issue decisions on
enjoyment of this allowance, which, however, must not exceed 10% of the minimum
subsistence payment.
3. Wages paid to hired
foreigners or Vietnamese people:
Depending on each specific case,
the heads of the foreign-based Vietnamese representation missions shall decide
to hire foreigners or Vietnamese people after it is so permitted in writing by
the managing ministries. Wages paid to foreigners or Vietnamese people shall be
inscribed in the contracts signed between the representation missions and the
laborers, suitable to the market prices of the host countries and within the
funding limits allocated to the representation missions.
4. Payments to individuals
include:
4.1. Payment for attire and
other personal belongings of officials and public employees during their
overseas working terms (including attire purchased in the country before their
departure).
Officials and employees going on
long-term (three year-term) overseas working missions shall receive a cash
allowance for purchasing attire, blankets, mosquito nets, pillows, bed sheets
and other personal articles… This amount shall be paid in a lump sum for the
whole term, concretely: 900 USD/person/term for the ranks of counselor and
representation mission head being ambassador and his/her accompanying spouse;
and 700/USD/person/term for other ranks.. For officials or public employees
going on working missions and having received this allowance but then having to
prematurely return home for subjective reasons, part of this amount must be
reimbursed to the State according to the proportion of time. For cases where
the overseas working term is extended for over one year by decisions of the
managing ministries, the concerned officials or employees shall enjoy an
additional allowance amount according to the prolonged duration.
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Officials and public employees
going abroad for working terms and returning home upon termination of their
working terms may buy economy-class air tickets for direct and shortest flights
of any airliners and be paid for a package baggage charge for 30 kg per flight
at the airliners’ rates (apart from the free-of-charge baggage limits
prescribed by the airliners). Particularly for ambassadors, they shall be paid
for business-class tickets; if their spouses accompany them on the same
flights, they shall be also paid for business-class air tickets.
For outbound trips to begin
working terms: air fares, baggage charges paid domestically, included in the
cost estimates for outbound delegations.
For homebound trips: air fares,
baggage charges, included in the funding estimates allocated to the
foreign-based Vietnamese representation missions.
For the time of waiting for
flights during outbound trips to begin working terms and homebound trips upon
the termination of working terms, a temporary stay allowance shall be paid for
no more than four days. The payment of allowances for temporary stay during
outbound and homebound trips shall be paid at the representation missions.
4.3. Payment of medical
examination and treatment insurance:
On the basis of the decisions on
sending officials or employees on long-term working missions, a support of USD
250/person/year shall be provided from the State budget for officials and
public employees for payment to insurance organizations for their medical
examination and treatment insurance. Where officials or public employees
purchase insurance with premiums higher than the State budget’s support level,
the concerned individuals themselves shall have to pay for the insurance
premium differences.
For cases of emergency due to
such serious illnesses as stomach bleeding, appendicitis surgery…, where the
insurance-accepting organizations accept to pay only part of hospital charges,
the remaining expenses shall be covered by the missions.
5. Telephones, fax machines
The furnishment of telephones
and fax machines at the offices shall be determined as follows:
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Telephones: Each working room
shall be equipped with one telephone. Depending on the working geographical
area and itinerant working activities of public employees, mobile phones can be
equipped. The equipping of mobile phones shall be decided by the mission heads.
Local and international
telephone calls and faxes in service of official and professional tasks shall
be paid by the missions. For individuals making international calls or sending
international faxes for personal purposes, they shall pay therefore by
themselves. The collected amounts shall be remitted into the cash funds of the
missions and recorded as funding decrease for the representation missions. To
monitor the payment of telephone charges by the missions and individuals making
calls for personal purposes, the representation missions must have regulations
on management and registration of transaction telephone numbers, office
telephone numbers, family telephone numbers or make decisions to assign package
telephone charges to each section or each individual.
6. Rents for offices and
residential houses:
Where the representation
missions need to rent new houses or relocate, they must report such to the
managing ministries for permission. Only after obtaining the managing
ministries’ permission can the representation missions find particular houses
and report to the ministries on the draft house-renting contracts before
officially signing such contracts. Where under the house-renting contracts the
lessors require the compulsory payment of deposits, the missions shall account
them into the advance accounts and recover such deposits upon the expiry of the
house-renting contracts.
7. Equipping of cars:
- For representation missions
consisting of between 1 and 4 staff members: 1 car.
- For representation missions
consisting of between 5 and 7 staff members: 2 cars.
- For representation missions
consisting of between 8 and 12 staff members: 3 cars.
- For representation missions
consisting of between 13 and 19 staff members: 4 cars.
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- For representation missions
consisting of between 31 and 40 staff members: 7-8 cars.
- For representation missions
consisting of between 41 and 50 staff members: 8-9 cars.
The above car quantity limits do
not include the cars of the ambassadors and the heads of the Vietnamese
delegations at the United Nations and to the United Nations.
The purchase of new cars, change
of cars, purchase of 4-seat or 12-seat cars…, the prices and types of cars
shall be decided by the managing ministries and included in the approved
funding estimates. When purchasing new cars, there must be car-purchasing and
-selling contracts between the heads of the representation missions or
authorized persons and the car sellers.
- For all public-service cars
above, car insurance must be purchased. Where cars have accidents en route due
to individual faults, the individuals at fault must pay compensation therefor.
- On the basis of the above car
use limits, the heads of the representation missions shall specify the
management and use of cars in their respective representation missions.
- Where the representation
missions are not equipped with cars or are equipped with the numbers of cars
lower than the set limits due to expensive car-parking charges in the host
countries, they shall be paid travel expenses in the package amounts allocated
for purchase of mass transit tickets.
8. Procurement of other fixed
assets:
For all other assets such as
computers, photocopiers, fixed and mobile telephones, fax machines, video
players, television sets, refrigerators, home and office and home furniture…,
they shall be procured according to the material foundation equipment and
facilities norms already approved and arranged in the funding estimates. Where such
assets are procured, they shall be used and managed according to the
fixed-asset management regime applicable to administrative and non-business
units under the Finance Minister’s Decision No. 351-TC/QD/CDKTT of May 22, 1997
issuing the regime of management, use and calculation of wear of fixed assets
in administrative and non-business units
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On the basis of the tasks of
local or overseas working trips decided by competent authorities, working-trip
allowances are prescribed as follows:
9.1. Local working trips are
understood as working trips made by officials and public employees within the
territory of the host countries. Local working-trip allowances shall be
calculated as follows:
- Train, coach and air fares for
working trips to localities shall be paid according to the prices inscribed
thereon or money-collection invoices; where working trips are made by air,
payment shall be made at the economy-class rate.
- For hotel room charges
(accommodation expenses), they shall be paid according to actually-paid amounts
at the average local charge rates.
- Working-trip allowances shall
be calculated uniformly (regardless of positions) as follows:
Working-trip
allowance
=
Minimum
subsistence payment
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The
number of working days
x
(coefficient 2)
30
days
The sending of public employees
on local working trips must be decided in writing by the heads of the
representation missions.
9.2. The sending of public employees
in the representation missions on overseas working trips shall be decided in
writing by the managing ministries. The regime of payment of overseas
working-trip allowances shall comply with Circular No. 45/1999/TT-BTC of May 4,
1999 and Circular No. 108/1999/TT-BTC of September 4, 1999 of the Ministry of
Finance.
9.3. In case of making working
trips to Vietnam, the regime of payment of working-trip allowances in Vietnam
shall apply. Specifically:
For officials and public
employees of the foreign-based Vietnamese representation missions, who make
working trips to Vietnam for 30 days at most (counting from the date of
departure from the host country to the date of departure from Vietnam), they
shall enjoy the whole subsistence payment in the country where they are
working; for officials and public employees who make working trips to Vietnam
for over 30 days, they shall enjoy 100% of their salaries paid in Vietnam
instead of the overseas subsistence payment. During the time of working in
Vietnam, if officials and public employees go on working trips far away from
their working offices, they shall be paid the domestic working-trip allowances
according to the working-trip allowance regime promulgated by the Ministry of
Finance. The payment of allowances for working trips to Vietnam shall be paid
in foreign currencies by the representation missions on the basis of conversion
of the amounts in Vietnam dong into the foreign currency at the purchasing rate
applied by Vietnam Bank for Foreign Trade at the time of payment.
9.4. The working-trip allowance
regime for the Vietnamese representation missions in Laos and Cambodia: As
these countries border on Vietnam, many foreign-relation affairs between
Vietnam and these two countries must be settled in border areas. Therefore,
officials and public employees of the representation missions in these
countries, who have to make frequent working trips to border provinces, shall
be paid according to the local working-trip allowance regime.
10. Stationery:
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11. Furnishment of guest houses
and collective kitchens:
Where conditions permit the
organization of collective kitchens and/or guest houses, the mission heads may
use funding for procuring necessary equipment for these guest houses and/or
kitchens.
12. Receptions, banquets,
contributions to diplomatic corps, gifts:
Guest receptions: For receiving
visitors at working or courtesy meetings, the representation missions can only
treat them with mineral water (or tea or coffee) but not cigarettes, alcohol
nor beer.
Banquets: For festive days like
the National Day, the founding anniversary of the Vietnam People’s Army, the
anniversary of the establishment of diplomatic ties between Vietnam and the
host country… depending on the even or odd year, the representation mission
heads can hold banquets under the guidance of competent authorities in Vietnam.
Banquets should be held in a thrifty manner.
For other banquets (meals)
related to official duties, the representation mission heads shall make
decisions thereon (on the basis of the managing ministries’ regulations).
Contributions to diplomatic
corps: The obligatory contributions to diplomatic corps in the host countries
shall be paid according to the notices of these diplomatic corps.
Gifts in external relations: For
gifts to ministerial or vice-ministerial posts, the maximum expense is USD 25,
and USD 15 for other subjects. The quantity of gifts shall be decided by the
representation mission heads.
13. Overtime work allowances:
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Overtime
work allowance
=
Subsistence
payment currently enjoyed
x
The
number of overtime
x
150%
22
days x 8 hours hours
The maximum overtime level
prescribed by the labor legislation is 20 hours/person/month and 200
hours/year.
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The base for accounting the
payment of overtime work allowances shall be the individuals’ declarations of
the overtime work contents, with the certification of the mission heads.
14. Regular repair and
renovation to upgrade offices and residential houses:
For regular renovation and
repair to upgrade offices, plans thereon must be worked out, enclosed with the
cost estimate of each item to be repaired, which must be approved by competent
authorities and included in the annual funding estimates.
15. Construction of new offices
and residential houses:
All cases of purchase of new
houses or construction land must comply with the Finance Ministry’s Circular
No. 85/2001/TT-TC of October 25, 2001 and the laws of the host countries.
16. Liquidation of fixed assets:
The liquidation of fixed assets
must be conducted by the Asset Liquidation Boards composed of representatives
of the representation missions’ sections and chaired by the representation
mission heads in accordance with the current regulations of the Ministry of
Finance on liquidation of fixed assets.
17. For expenses for personal
use:
For charges for making personal
phone calls, Internet use (domestic and international), water and electricity
charges paid by accompanying persons… the representation missions shall have to
collect them according to current regulations.
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1. Revenue control:
Revenues collected in cash:
Receipts must be enclosed with relevant vouchers
Revenues collected via banks:
Checks, bank transfers according to banks’ Credit notes (reflected in banks’
books, banks’ balance sheets of revenue and expenditure accounts).
2. Expenditure control:
Accountants shall check payment
vouchers to ensure that they comply with the permitted regimes, submit them to
the representation mission heads for approval and inscribe them as follows:
- Payment cards: To be clearly
inscribed with the spending contents, money amounts in figures and words
(enclosed with invoices and/or vouchers issued by the goods suppliers or
service providers, and their Vietnamese translations).
- Payment method: in cash, by
check or bank transfer
- Expenses shall be accounted
into the corresponding budget contents.
Where supplies and items are
purchased in Vietnam, the invoices issued by the Ministry of Finance shall be
required. For charges paid for excess baggage, the airliners’ invoices shall be
required; where such invoices are lost, declarations thereof must be made,
certified by the representation mission heads and enclosed with baggage charge
notices issued by the concerned airliners, for use as a payment basis. The
payments for domestically-purchased supplies and items and air freights
therefor shall be made in the foreign-currency amounts converted from the
Vietnam-dong amounts at the purchasing exchange rate prescribed by Vietnam Bank
for Foreign Trade.
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The adjustment of any
expenditure items determined in the funding estimates prescribed at Point 5,
Part II of this Circular must be approved by the managing ministries and not
exceed the total allocated funding.
4. Funding transferred to subsequent
years:
At the end of the budget year,
all budget funding allocated in the year and revenues permitted to be retained
for spending according to the current regulations, which are not spent yet,
shall be allowed to be transferred to subsequent years. .
5. Opening of transaction
accounts:
The foreign-based Vietnamese
representation missions shall open transaction accounts at the banks of the
host countries for receiving funding and reflecting revenues and expenditures.
6. The system of accounting books
for detailed monitoring of revenues and expenditures, and forms of accounting
and financial settlement reports are prescribed as follows:
The foreign-based Vietnamese
representation missions must organize accounting and settlement according to
the regulations of the administrative and non-business accounting regime,
issued together with Decision No. 999/TC/QD/CDKT of November 2, 1996 of the
Minister of Finance in accordance with the State Budget Law and documents
guiding the implementation thereof and the State budget contents (see forms of
funding estimates and financial settlement reports in the appendices to this
Circular - not printed herein).
The contents of State-budget
settlement reports must be the same as the contents of the approved funding
estimates, comply with the State budget contents, and be enclosed with the
account balance sheets up to the end of December 31 of the implementation year.
The managing ministries shall
have to examine and approve settlement reports of the representation missions,
sum them up into annual settlement reports of the representation missions for
sending to the Ministry of Finance.
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The representation missions’
settlement reports must be submitted to the managing ministries within 30 days
after the end of the year (December 31).
The managing ministries’
settlement reports must be submitted to the Ministry of Finance within 120 days
after the end of the year (December 31).
The Ministry of Finance shall
have to consider and approve the annual settlement reports of the managing
ministries (level I); in the course of so doing, the Ministry of Finance shall
be entitled to verify the consideration and approval of the representation
missions’ annual settlement reports if deeming it necessary.
V.
IMPLEMENTATION ORGANIZATION
1. This Circular takes
implementation effect as from January 1, 2003. The ministries having
foreign-based Vietnamese representation missions shall guide their attached
units in the implementation thereof. This Circular replaces Circular No.
147/1998/TT-BTC of November 12, 1998; Circular No. 47/TC/TCDN of September 24,
1992; Circular No. 14/TT-LBNG-TC of April 21, 1998 and Circular No. 42/TC/TCDN
of May 14, 1994 of the Ministry of Finance.
2. For foreign-based
representation offices of Vietnamese enterprises, they may apply the
expenditure regime and limits in this Circular.
3. In the course of
implementation, if any problems arise, the ministries or representation
missions should report them to the Ministry of Finance for study and
appropriate amendment.
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