Circular No. 79-TC/TCDN of December 17, 1996, guiding the unified financial management of Vietnam’s representations in foreign countries

THE MINISTRY OF FINANCE
——

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
———

No. 79/TC-TCDN

Hanoi December 17, 1996

 

CIRCULAR

GUIDING THE UNIFIED FINANCIAL MANAGEMENT OF VIETNAMS REPRESENTATIONS IN FOREIGN COUNTRIES

To implement Article 14 of Decree No.183-CP of November 18, 1994 of the Government stipulating in detail the implementation of the Ordinance on the Representations of the Socialist Republic of Vietnam in Foreign Countries; in order to consolidate the financial management, enhance the sense of responsibility and create conditions for the heads of representations to perform their function and task of efficiently managing and using State Budget funds and the existing property of the Vietnamese State in foreign countries in accordance with the principles of the current financial regime;

After consulting the Ministry of Foreign Affairs and the other Ministries and branches concerned, the Ministry of Finance herein stipulates and guides what should be done at home and abroad in order to exercise unified financial management of the diplomatic representations and permanent missions at the inter-governmental international organizations and consulates of Vietnam in foreign countries (hereunder referred to as representations):

I. SCOPE AND OBJECTS OF REGULATION

1. This Circular applies to:

– The diplomatic representations of the Socialist Republic of Vietnam in foreign countries;

– The missions at inter-governmental international organizations;

– The consulates;

– The overseas representation sections of the Ministries and branches in the country: economic and commercial representations, military attaches, economic and cultural counselors, and labor management boards (as representation sections for short).

2. This Circular does not apply to:

– The news, press and television agencies of Vietnam.

– The representations of Vietnamese business organizations.

II. ON A UNIFIED FINANCIAL MANAGEMENT

1. From 1997 on, the Ministry of Finance shall not directly provide funds for each representation section, but shall prepare a draft expenditure plan, provide funds and settle the accounts with the representation through the Ministry of Foreign Affairs as stipulated in Article 14 of Decree No.183-CP.

a/ A representation is a unit under the draft Budget plan of the Ministry of Foreign Affairs which shall have to prepare a draft expenditure plan, carry it out and settle the Budget account in accordance with the current regime of State Budget management.

b/ The Minister of Foreign Affairs is answerable to the Government for the management and use of the property and funds of Vietnams representations in foreign countries.

While examining and synthesizing the draft annual revenue and expenditure plans, approving and synthesizing the annual accounts of the representations, the Ministry of Foreign Affairs shall cooperate with the other Ministries and branches concerned in order to ensure that the funding level be rational and the fund be efficiently used to meet the requirements of the specialized work sections as well as of Vietnams representations in foreign countries.

2. On the management of property (including machinery and equipment for working and living) and immovable property:

Those work sections which are currently managing and using property bought or rented with State Budget funds and property presented by organizations and individuals at home and abroad which has become public property shall have to inventorize it together with the representation, make a report and enclose it with the original papers and vouchers together with the monitoring book, and hand it to the representation for continued management and use according to the current regime.

III. GUIDANCE ON THE HANDOVER AND THE SETTLEMENT OF PENDING ISSUES

The Ministry of Finance shall cooperate with the other Ministries and branches concerned to settle issues arising during the process of transition towards a unified financial management which may affect the normal operation of the work sections of the representation until the time when unified financial management is effected through a single channel.

1. The work sections shall settle their expenditures from the State Budget fund with the parent Ministry in 1996 (including the expenditure of funds granted before 1996 if it has not yet been settled) and send it to the parent Ministry so that the latter may review, consider and approve it with the Ministry of Finance. This work must be completed before March 31, 1997.

2. On the handling of the savings accounts at the Bank of the country of residence and the cash funds of the work sections:

The work sections which deposit public funds in the accounts opened at a bank of the country of residence (including interest) or have cash in the cash fund and the advance money which has not yet been settled shall have to hand it over to the head of the representation. Depending on the nature of each savings account or the amount of cash handed over, the representation shall deposit it in its savings account or corresponding fund for continued management and use according to the current regime and cross out the bank accounts of the work sections in the representation.

3. At the time when the cash fund is handed over and the balance of the accounts book may be registered as zero (0), a minus quantity (-) or a plus quantity (+): If the balance sheet registers a minus quantity, the representation shall not be allowed to make up for it with other sources, but the work section concerned should explain it clearly in the 1996 balance sheet sent to the parent Ministry so that the latter may discuss its settlement with the Ministry of Finance.

If a work section has not yet spent the State Budget fund to buy property or repair houses in 1996, the representation shall have to submit the accounts to a temporary deposit fund of the State Budget and report it to the Ministry of Foreign Affairs and the Ministry of Finance to consider and decide its use. It must not on its own carry the remainder over to next years funds for continued disbursement.

4. When handing over the temporary fund, the representation should check the legal character of the sources of revenue and expenditure, and the difference between the accounting book and the balance written in the handover report. The balance in the accounting book and the real sum shall be fully registered in the corresponding temporary fund of the representation. If there is any problem in the handover report, the Ministry of Finance shall consider it and discuss with the owning Ministry at home to settle and direct the representation to do.

5. With regard to the sums advanced by the public fund to an organization or individual, the person who has advanced the sums shall have to fully collect them before the handover. If the sums so advanced are not yet collected before the handover, the temporary fund shall still be handed over, but the person who has advanced the sums shall have to continue collecting them and submit them to the fund of the representation.

6. The time for the handover between the work sections and the representation is December 31,1996. When the handover is conducted with a view to a unified financial management at the representation, a report enclosed with full vouchers should be made for the checking of the balance of accounts. The work sections shall have to fully report to the head of the representation the allocation and spending of funds, the accounts and the issues that should be settled.

IV. ORGANIZATION OF IMPLEMENTATION

– The Ministry of Foreign Affairs should give concrete guidance to the financial management sections of the representation on how to do the accounting and financial work in the new conditions as mentioned above in order to avoid irregularities at variance with the regime.

– The Ministry of Finance shall give separate guidance on the handover of funds and property of the Labor Management Boards of Vietnam in the Russian Federation, the Federal Republic of Germany, the Czech Republic, and the Ukrainian Republic.

– The parent Ministries and branches of the work sections in foreign countries shall have to direct the work sections to urgently comply with the guidance of the Ministry of Finance in this Circular.

– This Circular takes effect on the date of its signing; all stipulations made earlier which are contrary to this Circular are now annulled.

– While carrying out this Circular, the State agencies should notify the Ministry of Finance of any arising problem for discussion and joint settlement.

 

 

FOR THE MINISTER OF FINANCE,VICE MINISTER,

Pham Van Trong

 

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