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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:
98/2000/TT-BTC
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Hanoi,
October 12, 2000
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CIRCULAR
GUIDING THE APPLICATION OF FINANCIAL REGIMES TO THE CENTRAL
PEOPLE’S CREDIT FUND
In furtherance of the Government’s Decree
No.166/1999/ND-CP of November 19, 1999 on the financial regimes applicable to
credit institutions; based on the scale and nature of operation of the People’s
Credit Funds, the Finance Ministry hereby guides a number of contents on the
financial regimes applicable to the Central People’s Credit Fund as follows:
Chapter I
GENERAL PROVISIONS
1. Subject to this Circular is the Central
People’s Credit Fund, established, organized and operating under the Law on Credit
Institutions, the Law on Cooperatives and other relevant legal documents.
2. The financial operation of the Central
People’s Credit Fund is carried out under the provisions of the Law on Credit
Institutions, the Law on Cooperatives, the Government’s Decree No.
166/1999/ND-CP of November 19, 1999 on the financial regimes applicable to
credit institutions, the concrete guidance in this Circular and other relevant
legal documents on financial management.
3. The Central People’s Credit Fund effects the
financial publicity to the State management bodies, organizations and
individuals having economic ties with the Fund and its capital-contributing
members.
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4. The Managing Board chairman and the general
director of the Central People’s Credit Fund take responsibility before law,
State management bodies and the members’ congress for the application of the
financial regimes of the Central People’s Credit Fund.
Chapter II
SPECIFIC PROVISIONS
I. MANAGEMENT AND USE OF
CAPITAL AND ASSETS
1. Management of capital.
1.1. The operation capital of the Central
People’s Credit Fund shall include:
a) The charter capital: It is the capital amount
inscribed in the Charter of the Central People’s Credit Fund, formulated from:
- Capital contributed by the State.
- Capital contributed by member people’s credit
funds in the system.
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b) The mobilized capital.
c) Capital borrowed from the State Bank and
other credit institutions.
d) Capital entrusted by legal persons and
individuals inside and outside the country.
e) Charter capital-supplementing reserve funds,
professional development investment fund, financial reserve fund, severance
allowance reserve fund, reward fund, welfare fund.
f) Profits left to the Fund but not yet divided.
g) Capital of other kinds.
1.2. In the course of operation, the Central
People’s Credit Fund must maintain the charter capital at the level not lower
than the legal capital level prescribed for the Fund by the Government.
1.3. The own capital of the Central People’s
Credit Fund as prescribed by the State Bank Governor.
2. The use of capital: The Central People’s
Credit Fund may use its operation capital for:
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- Providing loans to customers according to the
provisions of law.
- Contributing capital, purchasing stocks.
- Participating in capital regulation for the
entire system.
- Using for other purposes prescribed by law.
3. The Central People’s Credit Fund shall have
to monitor all its existing assets and capital, make accounting according to
the current law provisions on accounting and statistics; to reflect fully,
accurately and in time the situation on the use of as well as the changes in,
the capital and assets, the amounts of loan and debts to be recovered in the
course of business operation, clearly defining the responsibility of each
section, each individual for any property damage or loss.
4. Periodically and at the end of the fiscal
year, the Central People’s Credit Fund shall have to inventory and reevaluate
all its existing assets and capital, accurately determining assets in deficit
or surplus, the debt situation, overdue debts, bad debts and determining the
cause thereof and the liability therefor for handling. For any property damage
or loss, the responsibility of each section, individual must be clearly determined.
The Central People’s Credit Fund may inventory,
re-evaluate its assets and account as capital increase or decrease the
difference amounts brought about by the asset reevaluation in the following
cases:
- The asset inventory and reevaluation is made
under the decisions of the competent State bodies.
- The assets are used for joint ventures, stock
capital contribution or the assets are recovered after the joint ventures
terminate their operation.
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a) Strictly abiding by the capital and asset
management and use regime as prescribed by law.
b) Fully maintaining safety rates in operation
under the guidance of the State Bank.
c) Buying the property insurance as prescribed
by law.
d) Joining the deposit insurance organization or
the system safety ensuring organization as prescribed by law.
e) Being entitled to account into its
expenditure the following reserves:
e.1- For reserve against risks in the banking
operation, the Central People’s Credit Fund shall make deduction for and use
such reserve according to the regulations of the State Bank Governor.
e.2- For reserve against the securities price decrease
and the reserve against the unsold goods price decrease:
- Objects of reserve establishment: Securities;
goods in stock including supplies, valuable papers, gold, silver and gems being
jewelry articles (if any) being held by the Central People’s Credit Fund.
- Principles for reserve establishment: The
deduction for establishment of reserves against the decrease of securities
prices and unsold goods prices shall be made when the market prices are lower
than the prices being accounted in the accounting books.
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- Method of deduction for reserve establishment:
The Central People’s Credit Fund shall base itself on the price decrease
situation, the actual volume of unsold goods and the securities prices on
market to determine the reserve levels according to the following formula:
The reserve
level for securities, unsold goods
=
The volume of
unsold goods or securities subject to price decrease by December 31
x
Unsold goods or
securities prices accounted on the accounting books
-
The actual
market prices by December 31
- The actual market prices by December 31 are
construed as:
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+ For securities: They are the prices listed at
the Securities Trading Centers for types of securities being traded on the
securities market. For unlisted securities, the general director of the Central
People’s Credit Fund shall set the price based on the actual sale price of the
securities of the same type on the market.
- The reserve establishment deduction must be
made separately for each kind of unsold goods and securities suffering from
price decrease and summed up into the detailed list of reserves against the
price decrease of unsold goods and reserves against the securities price
decrease, which shall serve as basis for accounting them into the operation
expenditures of the Central People’s Credit Fund.
- The time for reserve establishment deduction:
The deduction for establishment of reserve for each kind of unsold goods and
securities suffering price decrease shall be made at the time of closing the
accounting books (December 31 of the calendar year) for making the annual
financial reports.
- Handling of reserve amounts: The establishment
of reserves aims to offset the loss amounts due to the price drop of unsold
goods and investment securities. The loss amounts resulting from the unsold
goods and securities price decreases shall be accounted into the business
results, therefore the Central People’s Credit Fund shall have to re-credit all
the above-mentioned reserves into its income, concretely: At the end of each
year before closing the accounting books for making the financial settlement
report, the Central People’s Credit Fund shall re-credit all the reserve
amounts deducted at the end of the previous year into its income in the year in
order to determine the business results and at the same time make new
deductions for reserve establishment for the following year according to the
current regulations.
6. All property losses incurred by the Central
People’s Credit Fund must be recorded in writing for determining the extent,
cause, responsibility and shall be handled according to the following
principles:
- If the property losses are caused by
collectives or individuals due to subjective reasons, the causers of such
losses must make compensation therefor.
- The lost insured property shall be handled
according to the insurance policies.
- Using the reserves deducted into expenditures to
offset the losses as provided for at Point 5, Section I, Chapter II of this
Circular.
- If the loss value, after being covered and
offset by the above sources, remains deficit, it shall be made up for by the
financial reserve fund of the Central People’s Credit Fund. Where such
financial reserve fund is not enough, the deficit shall be accounted into the
expenditure in the period.
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a) Lease, mortgage, pledge of assets.
The Central People’s Credit Fund may lease,
mortgage or pledge assets under its management and use rights in order to raise
the use efficiency, increase its income, but must strictly comply with the
order and procedures prescribed by law and ensure the principle of capital preservation
and development.
b) Sale and liquidation of assets.
- The Central People’s Credit Fund may sell or
liquidate its assets which are no longer in use, technically obsolete or
qualitatively degenerated or irreparably damaged assets in order to recover
capital for use for business purposes.
- When selling or liquidating assets, the
Central People’s Credit Fund shall have to set up a council for evaluation of
the real technical status and appraisal of the value of the assets.
- The difference between the proceed from the
asset sale or liquidation plus the residual value and the sale or liquidation
expense shall be accounted into the business results of the Central People’s
Credit Fund.
c) When the Central People’s Credit Fund leases,
mortgages, pledges, sells or liquidates assets belonging to the technology
involved in the professional operation of the entire system, it must obtain the
written consent of the State Bank.
8. For assets hired, taken as mortgage or pledge
by the Central People’s Credit Fund, the Fund shall have to manage, preserve or
use them according to the provisions of law and the agreement reached with the
concerned customers.
II. MANAGEMENT OF TURNOVER,
EXPENSES
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1.1. The turnover of the Central People’s Credit
Fund shall include collectible amounts prescribed in Article 16 of the
Government’s Decree No.166/1999/ND-CP of November 19, 1999, including:
a) Revenue from professional operations: Loan
interests, deposit interests, payment service charges, treasury service
charges, discount operation, guarantee and other services related to
professional banking operations.
b) Revenues from other activities: Interests on
capital contributions, stock purchase; participation in the monetary market;
gold, silver and foreign currency business; entrusted agency operation;
consultancy service; debt purchasing and selling operations between credit
institutions; property leasing and revenues from other services.
c) Remittance of all reserves already deducted
for expenditures; recovery of capital already handled with reserves against
risks; proceeds from sale or liquidation of fixed assets; revenue from exchange
rate difference under the provisions of law.
d) Other revenues.
1.2. Principles for turnover determination:
a) Revenue from lending operations, revenue from
deposit interests are the interest amounts to be collected in the period and
determined according to the following principles:
- The Central People’s Credit Fund shall account
the collectible interest amounts on undue debts into its income. For amounts of
collectible interest on overdue debts which are not accounted into income, the
Central People’s Credit Fund shall monitor them outside the table for urging
the collection thereof; when collected, they shall be accounted into the
professional revenue.
- For the amounts of collectible interest on
undue loans, which have already been accounted into the income but not yet paid
on time by customers, if after 90 days they are not paid by the customers or if
before 90 days the loans are made the overdue debts, the Central Peoples Credit
Fund may account them as revenue decrease and monitor them outside the table in
order to urge the collection thereof; when collected, they shall be accounted
into the revenue from professional operations.
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c) For revenues from remaining operations: The
turnover shall be the whole sum of money earned from goods sale, service
provision after subtracting (-) the price decrease amounts of sold goods,
returned goods (if with valid vouchers), with payment accepted by the
customers, regardless of whether or not the money is recovered.
2. Management of expenditure: The
expenditure of the Central People’s Credit Fund is the amount to be spent in
the period for business operations and other activities as prescribed in
Article 17 of the Government’s Decree No.166/1999/ND-CP of November 19, 1999, a
number of expenses made by the Central People’s Credit Fund under the following
guidance:
2.1. Expense for business operations.
a) Expense for payment of interests on deposits,
borrowings, expense for banking services.
b) Expense for depreciation of fixed assets used
for business operations under the State’s regulations on fixed asset
management, use and depreciation deduction, prescribed for State enterprises.
c) Expense for wages and allowances of wage nature,
paid to cadres and employees working at the Fund under the State’s regime on
wage and remuneration prescribed for State enterprises.
d) Expense for social insurance, health
insurance and trade union fees for cadres and employees directly working at the
Fund according to the current regulations of the State.
e) Expenses for purchase of services from
outside.
- Expenses for repair of hired fixed assets,
transportation, electricity, water, telephone, materials, printed matters,
stationery, working tools, fire-fighting devices, consultancy, auditing, the
purchase of property insurance, payment of commission, brokerage agency,
entrustment and other services.
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- Expense for repair of fixed assets so as to
restore their capacity, which may be accounted directly or gradually
distributed into the business expenditure in the year. For particular fixed
assets with expenses for their repair arising unevenly between periods, years,
if the Central People’s Credit Fund wishes to deduct in advance the expense for
repair of the fixed assets into its business expenditure, it must work out
plans for advance deduction of expense for repair of fixed assets and report
them to the Finance Ministry for consideration and decision. After obtaining
the written approval from the Finance Ministry, the Central People’s Credit
Fund shall have to notify it to the tax office that directly manages it. The
Central People’s Credit Fund must settle the actual repair expense against the
previously deducted repair expense; if the actual repair expense is larger than
the deducted amount, the difference may be accounted directly or gradually
distributed to the expenses in the period; if the actual repair expense is
smaller than the deducted amount, the difference shall be accounted into the
income in the period.
- Expense for property hiring shall be accounted
into business expenditure with the amount of money paid in the year under the
renting contract. Where the property rent is paid in lump sum for many years,
such rent shall be distributed into the business expenditure gradually
according to the number of years for which the hired property is used.
- The expenses for payment of agency and
entrustment commission must be reflected in the agency and entrustment
contracts and only accounted as expenses according to the actually paid sum,
with full valid vouchers.
- Expenses for brokerage commission:
+ The expense for brokerage commission by the
Central People’s Credit Fund must be linked to the economic efficiency brought
about by the brokerage. The Central People’s Credit Fund shall base itself on
the Finance Ministry’s document guiding the brokerage commission payment as
well as its own specific conditions and characters to elaborate the regulation
on brokerage commission payment for unified and open application within the
Central People’s Credit Fund. The Managing Board of the Central People’s Credit
Fund shall approve the above-said regulation for application.
+ Basing him-/herself on the approved regulation
and depending on each brokerage operation arising in activities, the general
director of the Central People’s Credit Fund shall decide the payment of
commission for each brokerage operation.
+ Subjects enjoying the brokerage commission
shall be (domestic and foreign) organizations and individuals engaged in
brokerage services for the Central People’s Credit Fund.
+ The brokerage commission must not apply to
subjects being agents of the Central Peoples Credit Fund, designated customers,
managerial officials and employees of the Central Peoples Credit Fund.
+ The brokerage commission payment must be based
on contracts or written certifications of the Central People’s Credit Fund and
the commission recipients, which contains the principal details: the name of
the commission recipient; the spending content; the spending level; the payment
mode; the time for performance and termination; the responsibilities of the
parties.
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+ For the payment of brokerage commission for
sale of mortgaged, pledged assets: The level of payment of brokerage commission
for the sale of mortgaged or pledged assets of the Central People’s Credit Fund
shall not exceed 1% of the actual value of the proceed from the sale of assets
through brokerage, the level of payment of brokerage commission for the sale of
one asset shall not exceed VND20 million.
f) The expense for payment of taxes, charges,
land rents related to the business operations (excluding the enterprise income
tax) shall cover the license tax, the land use tax or land rent, the resource
tax, road and bridge tolls, airport fees, other taxes and fees.
g) Other expenses.
- Expense for advertisement, marketing, sale
promotion, guest reception, festivities, transaction, public relations,
conferences and other expenses must be evidenced with invoices or vouchers as
prescribed by the Finance Ministry and linked to the business efficiency. The
spending level shall not exceed 5% of the total expense.
- Expense for labor protection for subjects who
need to be equipped with labor safety devices while working and the expense for
uniforms of employees working at the Central People’s Credit Fund according to
the prescribed regime.
- Expense for severance allowances paid to
laborers under the Government’s Decree No. 198/CP of December 31, 1995
detailing and guiding the implementation of a number of articles of the Labor
Code regarding the labor contracts as well as other current legal documents of
the State.
- Payment to female laborers according to the
prescribed regime.
- Expense for mid-shift meals for laborers shall
be set by the Central People’s Credit Fund in compatibility to the business
efficiency; the monthly expense level for each person in the year shall not
exceed the minimum wage level set by the State for public employees.
- The payment of membership fees to professional
associations which the Central People’s Credit Fund has joined in.
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- Expense for participation in the deposit insurance
organization of the system safety-ensuring organi-zation according to the
provisions of law.
- The Central People’s Credit Fund may spend on
rewards for innovations, materials savings according to the actual efficiency
brought about by such innovations and materials savings. The Managing Board of
the Central People’s Credit Fund shall have to elaborate and publicize the
reward regulations in the Fund.
- The Central People’s Credit Fund may account
the expenses for scientific research and technological renovation research to
raise the business efficiency of the Fund. The research subjects and research
cost estimate for each subject must be approved by the Managing Board of the
Fund which is self-responsible for the efficiency of such research subjects.
- The expenses for training and fostering course
and classes to raise the professional skills and managerial capability shall
only be accounted into the expenses for subjects being cadres and employees of
the Fund. The Central People’s Credit Fund may account into its expenditure the
difference after subtracting the amounts of State budget support ( if any). The
maximum spending level shall not exceed 1.3 times the public-service expense
norms prescribed for the above subjects by the State.
- The expense for educational support (if any)
for educational organizations set up under the State’s regulations such as the
educational promotion fund, schools for handicapped children, supportless
children. The general director of the Central People’s Credit Fund shall base
him-/herself on the prescribed regimes and financial capability to decide the
support levels and take self-responsibility therefor.
- Expense for office security.
- Expense for warehouse and treasury operations.
- Expense for environmental protection. If the
expense amount in the year is large and has effect for many years, it may be
distributed to subsequent years.
- Payment of fines due to the breach of economic
contracts.
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a) Expense for gold, silver and/or foreign
currency business activities.
b) Expense for securities trading activities.
c) Expense for property leasing activities.
d) Expense for sale and liquidation of fixed
assets (including the remaining value of fixed assets when they are liquidated
and sold).
e) Expense for joint-venture activities, capital
contribution, stock purchase.
f) Expense for the recovery of already forgiven
debts, overdue bad debts.
- The Central People’s Credit Fund may pay the
organizations with legal person status, which have contributed to the recovery
of already forgiven debts and overdue bad debts for the Central People’s Credit
Fund on the basis of their contributions and efficiency brought about by such
organizations.
- The Central People’s Credit Fund shall elaborate
the regulation on expenses for the recovery of already forgiven debts and
overdue bad debts and submit it to the Managing Board for approval and
publication thereof. The general director of the Central People’s Credit Fund
shall take responsibility for these expenses.
- The level of payment for organizations with
legal person status, which have made contributions to the recovery of already
forgiven debts and overdue bad debts in the year for the Central Peoples Credit
Fund shall not exceed 2% of the recovered debt amount. The maximum level of
expense for the recovery of a debt shall not exceed VND 50 million.
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h) Expense for the Party organization and mass
organizations in the Central People’s Credit Fund, which shall be taken from
these organizations’ funds. If their funds are not enough, the deficits shall
be accounted into the expenditure of the Central People’s Credit Fund.
i) Other reasonable and valid expenses.
2.3. The Central People’s Credit Fund must not
account into its expenditure the following:
- Amounts of fine for violations of such laws as
traffic law, tax laws, environment law, labor law, the violations of
statistical, accountancy and financial regime as well as other laws. If
collectives or individuals violate laws, the violators shall have to pay the
fines. Apart from the above-said compensation amount, the remaining fine
payment shall be taken from after-tax profits.
- The amounts for investment in capital
construction, procurement of tangible and intangible fixed assets and financial
support for organizations and individuals.
- The expense for overseas working trips in
excess of the levels prescribed by the State for State employees and officials
of State enterprises who travel abroad on working missions.
- The amounts covered by other funding sources
such as the public-service expenses already paid by the State budget, superior
bodies or other organizations; the payment of interests on borrowed capital for
capital construction during the period the project has not yet been completed;
such interest amount may be accounted into the expense for investment in the
capital construction.
- Other unreasonable expenses.
3. The Central People’s Credit Fund, when having
economic activities arising in foreign currency(ies), shall have to convert
such foreign currency(ies) into Vietnam dong under the guidance of the Finance
Ministry.
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1. Profit distribution
The profits of the Central People’s Credit Fund,
after the payment of enterprise income tax according to the provisions of law,
shall be distributed as follows:
a) Deducting 5% for setting up the reserve fund
for supplementing the charter capital, the maximum level of this fund shall not
exceed the charter capital level of the Central People’s Credit Fund.
b) Offsetting the loss amounts incurred in the preceding
year and the fines for law violations, which are not calculated into before-tax
profits.
c) 100% of the remaining profits after
subtracting all above amounts shall be further distributed as follows:
- Deducting 10% for setting up the financial reserve
fund; this fund’s balance shall not exceed 25% of the charter capital of the
Central People’s Credit Fund.
- Deducting at least 30% for setting up the
operation development investment fund.
- Deducting 5% for setting up severance
allowance reserve fund for employees working at the Fund; the balance of this
fund shall not exceed 6 months’ salary paid in the year by the Central People’s
Credit Fund.
- Deduction for setting up the reward fund and
welfare fund; the maximum deduction level for setting up these two funds shall
not exceed three months’ salary paid in the year by the Central People’s Credit
Fund. The specific annual deduction level for the reward and welfare funds
shall be considered and decided by the Managing Board of the Central People’s Credit
Fund.
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- The remainder (if any) shall be used for
supplementing the operation development investment fund.
2. The principles for using funds.
a) The charter capital- supplementing reserve
fund is used for supplementing the charter capital.
b) The professional development investment fund
is used for investment in expanding business operation scope and renovating
equipment and working conditions of the Central People’s Credit Fund.
Depending on the investment demand and
capability of the fund, the Managing Board of the Central People’s Credit Fund
shall decide the investment forms and measures on the principle of efficiency,
safety and development of the capital.
c) The financial reserve fund is used to offset
the remainder of property losses or damage incurred during the business course
after they have been made up for with compensation money of the causing
organizations or individuals and insurance organizations as well as with the
use of reserve against risks, already deducted into expenditures.
d) The severance allowance reserve fund is used
to provide allowance for laborers who have worked at the Central People’s
Credit Fund for one year or more and temporarily lost their jobs under the
provisions of law; to cover expenses for professional and technical retraining
for laborers who, due to technological changes, have to move to other jobs; for
sideline training for female laborers and fostering to raise the professional
levels for employees working in the Central People’s Credit Fund.
The level of allowance for each specific case
shall be decided by the chairman of the Managing Board of the Central People’s
Credit Fund.
e) The reward fund is used for:
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Extraordinary rewards for individuals and
collectives in the Central People’s
Credit Fund, that have made technical innovations and improved the professional
process, thus bringing about business efficiency. The reward levels shall be
decided by the Managing Board of the Central People’s
Credit Fund.
Rewards for the Fund’s
members; outside units and individuals that have business ties with the Fund
and well fulfilled the contractual terms, thus efficiently contributing to the
business activities of the Central People’s
Credit Fund. The reward level shall be decided by the Managing Board of the
Central People’s Credit
Fund.
f) The welfare fund is used for:
Investment in construction or repair, addition
to capital for construction of welfare projects of the Central People’s Credit Fund, contribution of
capital for investment in the construction of welfare projects of the entire
service (if any) or to other units under mutually agreed contracts.
Expenses for sport, cultural and public welfare
activities of collectives of officials and employees of the Central People’s Credit Fund.
Contribution to social welfare fund.
The provision of irregular and regular
difficulty allowances for officials and employees of the Central People’s Credit Fund.
Expenses for other welfare activities.
The general director of the Central People’s Credit Fund shall coordinate
with the Executive Committee of the Trade Union of the Central People’s Credit Fund in managing and
using this fund.
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1. The Central People’s
Credit Fund observes the accounting and statistical regimes according to the
provisions of law, fully recording initial vouchers, updating accounting books
and reflecting fully, promptly, truthfully, accurately and objectively the
financial activities.
2. The fiscal year of the Central People’s Credit Fund commences on
January 1 and ends on December 31 of the calendar year.
3. The Central People’s
Credit Fund makes the financial settlement and fully abide by the provisions on
making and sending financial reports to the State finance bodies, the
statistical bodies, tax bodies and the State Bank according to the law provisions
on accounting and statistics and the provisions of this Circular.
3.1. The contents of a financial report.
a) The financial plan report: The Central People’s Credit Fund draws up the
annual financial plans including:
- The plan on capital sources and use.
- The plan on revenue, expenditure, business
results and State budget remittance norms.
- The plan on labor and wage.
b) The financial report: The Central People’s Credit Fund shall have to
fully make and submit the following financial reports:
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- The balance sheet (the financial balance
sheet) of the Central People’s
Credit Fund.
- The exposition of the financial report,
detailing a number of contents:
+ The business results, the situation on State
budget collection and remittance.
+ The labor and wage regime implementation by
the Central People’s Credit
Fund.
+ The increase, decrease in capital sources, the
use of capital.
+ The situation on overdue debts, hardly
recoverable debts, unrecoverable debts, the situation on mortgaged assets still
lying in stock.
- The independent audit organization’s report on results of auditing
the annual financial reports of the Central People’s
Credit Fund.
3.2. The chairman of the Managing Board and the
general director of the Central Peoples
Credit Fund shall bear responsibility for the accuracy and truthfulness of
these reports.
3.3. Time limits for sending reports.
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The financial plans drawn up by the Central
People’s Credit Fund must
be considered and approved by its Managing Board and sent to finance bodies
before November 15 of the year preceding the plan year.
b) The time limit for sending financial reports
- The quarterly reports must be sent within 45
days at most after the end of the quarter.
- The annual reports must be sent within 60 days
at most after the end of the fiscal year.
3.4. Report addressees.
The Central People’s
Credit Fund shall address its financial plans and financial reports to the
Finance Ministry, tax offices and statistical offices which directly manage it
and to the State Bank.
4. Auditing work
The Central People’s
Credit Fund shall organize by itself the internal auditing in order to audit
its financial reports in accordance with the provisions of the Law on Credit
Institutions, its operation scope and scale.
Within 30 days at most before the end of the
fiscal year, the Central People’s
Credit Fund shall have to hire an independent audit organization operating
lawfully in Vietnam to audit its financial reports; the hired audit
organization must be approved by the State Bank.
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5. Financial publicity by the Central People’s Credit Fund
The Central People’s
Credit Fund shall observe the financial publicity regime according to the
following regulations:
5.1. Form of publicity
a) Publicity to the State:
Quarterly and annually, the Central People’s Credit Fund shall have to make
and send financial reports to the State management bodies as prescribed at
Point 3, Section IV of Chapter II above. The Managing Board and the general
director of the Central People’s
Credit Fund shall have to explain the relevant financial matters at the request
of the State management bodies which perform the State management functions
under the Government’s
regulations.
b) Publicity to the Party organization, mass
organizations, the laborers and capital-contributing members of the Central
People’s Credit Fund.
- At the end of the fiscal year, the Managing
Board or the general director of the Central People’s
Credit Fund shall be obliged to make public the financial situation of the
unit. The publicity shall cover:
+ The situation on capital sources: The State
capital, shareholders’ capital,
funds, mobilized capital, payable debts….
+ The situation on the use of capital: Fixed
assets, loan debit balance, the recovery of debts….
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+ The situation on labor and income of officials
and employees in the Central People’s
Credit Fund, the application of measures for thrift practice, combat against
wastefulness and corruption in the Central People’s
Credit Fund.
- The Managing Board and the general director
shall coordinate with the trade union organization in opting for the publicity
form suitable to each information- receiving subject; the financial publicity
may be made at the members’
annual congress, the employees’
congress, notified at meetings of the Central People’s
Credit Fund, meetings of trade union organization and mass organizations in the
Central People’s Credit
Fund or notified in writing to officials and employees in the Central People’s Credit Fund.
c) Publicity to outside the Central People’s Credit Fund so that the
investors and customers have grounds to decide their economic ties and
transactions with the Central People’s
Credit Fund.
- The contents which should be made public
include the charter capital actually available at the time of publicity,
payable debt amounts, the structure of capital sources and the use of capital,
the business results of the Central People’s
Credit Fund. Besides, the Central People’s
Credit Fund shall have to reply other inquiries depending on its ties with
creditors, investors and customers.
5.2. The time for financial publicity: Within
120 days from the year-end the Central People’s
Credit Fund shall have to make public its annual financial situation to the
above-mentioned subjects.
V. FINANCIAL EXAMINATION AND
INSPECTION AND HANDLING OF VIOLATIONS BY THE CENTRAL PEOPLE’S CREDIT FUND
1. The Central People’s
Credit Fund shall take self-responsibility for the accuracy and truthfulness of
its financial reports; the finance bodies shall have to inspect the observance
of financial regimes. The financial examination shall be conducted in the
following forms:
- Regular or irregular financial examination.
- Examination according to specialized subjects
as required by the financial management work.
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- The Central People’s
Credit Fund, when breaching the financial regime of the State, shall be sanctioned
according to the provisions of law.
- Where the Central People’s Credit Fund fails to implement
or has implemented improperly the provisions of the financial reporting regime
stated at Point 3, Section IV, Chapter II of this Circular, it shall be
sanctioned according to the provisions in the Government’s
Decree No. 49/1999/ND-CP of July 8, 1999 on sanctioning administrative
violations in the field of accounting.
Chapter III
ORGANIZATION OF
IMPLEMENTATION
This Circular takes effect 15 days after its
signing; all previous regulations on financial management applicable to the
Central People’s Credit
Fund, which are contrary to this Circular, are annulled.
Any problems arising in the course of
implementation should be reported to the Finance Ministry of study,
consideration and solution.
FOR THE FINANCE MINISTER
VICE MINISTER
Le Thi Bang Tam