Bản dịch văn bản 97/1997/TTLT/BTC-BGTVT
thong-tu-lien-tich-97-1997-ttlt-btc-bgtvt
Cơ quan ban hành: Bộ Giao thông vận tải
Ngày ban hành: 1997-12-31

JOINT CIRCULAR No.97/1997/TTLT/BTC-BGTVT OF DECEMBER 31, 1997 GUIDING THE REGIME OF FINANCIAL MANAGEMENT AT THE STATE ENTERPRISES ENGAGED IN PUBLIC UTILITY ACTIVITIES IN TRANSPORT MEANS REGISTRY Pursuant to Decree No.56-CP of October 2, 1996 of the Government on the State enterprises engaged in public utility activities and Circular No.06-TC/TCDN of February 24, 1997 of the Ministry of Finance guiding the regime of financial management at the State enterprises engaged in public utility activities, basing themselves on the characteristics of the activities of the Vietnam Transport Means Registry Service, the Ministry of Finance and the Ministry of Communications and Transport hereby provide the following the guidance for the regime of financial management at the State enterprises engaged in public activities in the Vietnam Transport Means Registry Service: I. GENERAL PROVISIONS 1. Subject to the regulation of this Circular are the Vietnam Transport Means Registry Department and the Transport Means Registry units attached to the Communications and Transport Services, the Communications and Public Works Services in the localities decided by the competent agency to be a State enterprise engaged in public utility activities (generally called public utility registry enterprises). 2. A public utility registry enterprise has to use its capital and resources assigned by the State to carry out transport means registry according to the current charge and price rates stipulated by the State. 3. Beside the assigned public utility task, the public utility registry enterprise is entitled to make the most of the land, capital and properties assigned by the State after having fulfilled its public utility task and to mobilize capital to organize scientific and technical services and consultancy conforming with its capabilities and the demands of the market on the following conditions: - It has got the written consent from the agency which decides to found the enterprise. - Such work does not affect the execution of the registry work assigned by the State. - It has to register supplementary trades and businesses as currently prescribed. - It has to conduct separate accounting of the supplementary businesses. - It has to discharge its tax payment for the supplementary businesses as prescribed by law. II. MANAGEMENT AND USE OF CAPITAL AND PROPERTY 1. Capital investment A public utility registry enterprise shall be allocated full initial regulatory capital not lower than the legal capital prescribed by the State to build constructions and purchase fixed assets and working properties conformable with the assigned size and task. A public utility registry enterprise in operation which really falls short of capital compared with the public utility task assigned by the State (after mobilizing the existing sources of capital at the unit) shall be allocated supplementary capital as follows: - A profitable public utility registry enterprise shall be considered for profit tax relief in order to supplement the capital of the unit as prescribed by law. - A public utility registry enterprise which makes no profit or which still is short of capital after being considered for profit tax relief shall be considered by the State for supplementation of capital. The procedures of investment of capital construction fund and working capital fund for a public utility registry enterprise shall be conducted according to provisions of the State. 2. Mobilization of capital 2.1. When the need arises to mobilize capital or call for joint venture fund or to mortgage the value of the land use right associated with properties under the management of the unit at the various banks of Vietnam to borrow capital in service of public utility activities as prescribed by law, the public utility registry enterprise has to draw up a concrete plan and send it to the agency managing State capital and property at the enterprise for consultation before submitting it to the Head of the agency that decides to found the unit for decision. 2.2. If the public utility registry enterprise organizes business activities outside the public utility task assigned to it, the enterprise may borrow capital from credit organizations (commercial banks, financial companies....), other enterprises and individuals (including personnel in the enterprise) in service of business activities, but it has to comply with the provisions of law and must not change the form of ownership. 2.3. The interest rate in the mobilization of capital accounted for in the production and service cost of the enterprise must not be higher than the ceiling interest rate of loans announced by the Vietnam State Bank in the period of capital mobilization for enterprises of the same line. 2.4. When mobilizing capital, the enterprise must carefully consider the economic efficiency and ensure that the capital so mobilized be used for the right purpose and effectively. It must not use short-term loans to invest in construction. The enterprise shall have to pay the debts for both principal and interest in strict conformity with the commitment when mobilizing the capital. The Head of the public utility registry enterprise is answerable to the State for drawing up the plan of capital mobilization, for using the capital for wrong purposes, or for its inefficient use leading to losses in capital. 3. Investing capital outside the enterprise 3.1. When the need arises to invest capital, property and the value of the land use right or the land rent outside the unit, a public utility registry enterprise has to draw up the plan for capital contribution or explain the plan for joint venture and send it to the agency managing State capital and property at the enterprise for consultation before submitting it to the Head of the agency which decides to found the enterprise for approval. 3.2. All investment outside the enterprise must not affect the public utility task assigned by the State and must comply with the provisions of law, ensure the principle of efficiency, preservation and development of capital and increase of income. When investing the value of land use right outside the unit, the enterprise must observe the provisions of the Land Law. 3.3. A public utility registry enterprise must not use the State-invested capital to conduct monetary business such as buying government bonds and treasury bonds or making savings deposits... 3.4. A public utility registry enterprise must not use State invested capital to invest in enterprises outside State ownership where the manager, operator or main owner are spouses, parents or children of the Director of that enterprise. 4. A public utility registry enterprise must open the book of accounts to closely follow the whole existing property and capital in conformity with the current regime of accountancy and statustics; reflect truthfully and in time the situation about the use and change of the property and capital in the process of operation. 5. Assignment, liquidation, leasing, mortgaging and pawning property 5.1. A public utility registry enterprise is entitled to assign, sell and liquidate property which are no longer necessary or which have become technically obsolete in order to retrieve capital for use in more effective business purposes. When assigning, selling or liquidating these properties, the enterprise must set up a Council to conduct technical evaluation, check their value and organize their auction according to prescriptions of law. The difference between the returns from the assignment, sale and liquidation and the remaining value on the book of accounts of the assigned, sold or liquidated property together with the cost of assignment, sale and liquidation shall be accounted in the results of business. 5.2. The main machines, equipment and other property of a decisive character for the operation of the public utility registry enterprise, if assigned, sold or liquidated must be permitted in writing by the agency which decides to found the enterprise and the agency managing State capital and property at the enterprise. 5.3. For the leased properties for operation aimed at raising the use efficiency and increasing income, the public utility registry enterprise still has to deduct depreciation cost according to the prescribed regime, must monitor and retrieve the property on the expiry of the lease term. 5.4. The property which are pawned or mortaged for capital borrowing at the credit organizations, they must strictly follow the process and procedures prescribed by law. A public utility registry enterprise must not pawn or mortage or lease the property which are borrowed, leased or kept or pawned or mortaged by another enterprise without the consent of the owners of these property. 6. Handling of losses of property The handling of losses of property shall conform to the following principles: - If the losses are due to subjective reasons, the perpetrator shall have to pay damages. - If the losses are due to objective reasons, they shall be redeemed by the insurance organization if they are insured. - Regarding the remaining losses (after deduction of damages paid by the perpetrator and by the insurance organization), the public utility registry enterprise is entitled to use the financial reserve fund (if any) to make up for the losses. If this is not enough, the shortfall shall be accounted for in the business cost. - In other cases of losses of property due to force majeure (natural calamities, fires...), the Head of the public utility registry enterprise shall draw up a plan to report it to the financial agency. The latter shall consult the agency which decides to found the enterprise in order to decide on the handling or to report to the Prime Minister for decision. After handling the losses, the public utility registry enterprise shall have to readjust its books of account in conformity with the handling decision. 7. The handling of capital, the responsibility to preserve the capital, the revaluation of property and the management of the public debts shall comply with the prescriptions for State enterprises engaged in business activities. III. FINANCIAL RESULTS AND HANDLING OF THESE RESULTS AT A PUBLIC UTILITY REGISTRY ENTERPRISE A. Financial results 1. The turnover of a public utility registry comprises the revenue from registry activities, revenue from business and other activities. 1.1. The turnover from the registry activities include incomes from price rate, price frame and fees prescribed by the State for each type of the following activities: - Sea going ship registry as provided for in Decision No.203-TTg of December 28, 1992 of the Prime Minister on registry of Vietnamese sea- going ships. - Registry of means and equipment of communications and transport by land, railway, inland water ways and lifting equipment. - Registry of offshore oil rigs and floating means. - Registry of boilers and pressure bearing equipment used on transport means. - Registry of various types of container used in communications and transport. - Checking the projects of technical design for the manufacture, assembly and renovation of the means and equipment of transport and offshore oil rigs. - Issuing certificates to registry officers, certificates of quality of goods and technical safety of the transport means under the responsibility of Vietnam law and international conventions which Vietnam has adhered to. - Inspecting and issuing certificates for the system of technical safety management of the enterprises having products covered by the technical control of the Vietnam Registry Department as prescribed by Vietnam law and the related international conventions (ISM) which Vietnam has adhered to. - Technically expertizing the incidents and accidents caused by transport means. - Income from the coordination and cooperation with foreign registry organizations. 1.2. Turnover from business and other activities such as scientific and technical services, consultancy services, and other production and business operations shall comply with the provisions regarding State enterprises engaged in business activities. 1.3. The public utility registry enterprise has to open its books of accounts to fully monitor all the arising revenues according to prescriptions of the State. In case of the use special receipts or vouchers, they have to register with the Ministry of Finance (General Department of Taxation). 2. The expenditures of a public utility registry enterprise comprise the expenditures for registry activities, business and other activities. 2.1. The contents of the expenditures on registry activities comprise: - Expenditures on materials, fuel and energy used in the process of expertizing; the spare parts actually used. - Expenditures on the depreciation of fixed assets: All fixed assets of the public utility registry enterprise must be mobilized into production and business activities and make full deduction of depreciation cost as prescribed by the State in order to recover the capital. After fully recovering capital, if the fixed assets continue to be used, the enterprise shall not have to make deduction of depreciation cost but still is managed and used according to the current regime. - Expenditures on wages and salaries and allowances having the character of wages which are due to be paid to the personnel engaged in the expertizing work, in the collection of fees and management expenditures. - Expenditure deductions for social insurance, medical insurance and trade union activities of the enterprise as currently provided by the State regime. - Expenditures on purchases from outside such as electricity, water, telephone, facsimile, repairs of fixed assets hired from outside (SCTX & SCL), auditing, payment for the use of technical documents, invention diplomas, technology permits, insurance of property, dossiers, forms and designs, circulation permits and other services bought from outside. - Expenditures on the purchase of single machines, equipment and working means (not eligible to be rated as fixed assets) in direct service of the expertizing work. - Expenditures in service of expertizing such as means of transport, travelling expenses, rent of fixed assets, land rent or rent of working location, expenditures on labor protection gear, scientific research, compilation and printing of working processes, rules and criteria, technical documents, innovations, technical improvements, training and fostering aimed at raising the professional skill of registry personnel and the standard of the managing personnel, expenditures on receiving and seeing off delegations according to the prescribed regime, payment of interest on bank loans, payment for administrative management... - Expenditures on foreign registry organizations, and partner units in coordination and cooperation in the country. - Expenditures on investigations into accidents. - Other cash expenditures like reception of guests, decoration, conferences, public relations, but not exceeding the maximum level prescribed by the State. Expenditures such as materials and raw materials, purchase of outside services, receptions, decorations, conferences... must be provided with valid vouchers as prescribed by the Ministry of Finance. 2.2. The contents of the expenditures on business and other activities shall comply with the prescriptions for State enterprises engaged in business activities. 3. Public utility registry enterprises are allowed to use turnover to make up for the expenditures, including: - Turnover from registry activities used to cover the expenditures on public utility activities, taxes and other payments to the State as prescribed by law (except profit tax). - Turnover from business activities and other activities used to cover the expenditures on business activities and other activities, taxes and other payments to the State as prescribed by law (except profit tax) In principle, a public utility registry enterprise which organizes business activities must ensure a margin of profit, must not use profits from public utility activities to make up for losses in business activities. B. Handling of financial result 1. A public utility registry enterprise shall distribute its yearly profits (including profits from business and other activities) in the following order: a/ Payment of profit tax as prescribed by law. b/ Deduction of the fines on violation of discipline on remittance to the budget, administrative violations, violations of the contracts, failure to pay debts on due term, reasonable expenditures not yet deducted when determining the taxable profits. c/ Deduction of losses from which pre-tax profit is not yet deducted d/ Distribution of profits to the partners contributing capital under business cooperation contracts (if any). e/ The remaining profit after deducting the payments under Items a, b, c and d of the registry regulation shall be contributed to the funds at the following rates: - Development investment fund: minimum 50% - Financial reserve fund: 10%. The remainder of this fund must not exceed 25% of the legal capital. - Deduction for the reward and welfare funds representing at most the real wages in three months if the remittance to the budget in the reporting year is higher than the previous year, and real wages in two months if the remittance to the reporting year is lower than that in the previous year. The rate of contribution to each fund shall be decided by the Head of the public utility registry enterprise after consulting the trade union. After deductions under Items a, b, c and d and to the development investment fund and the financial reserve fund, if the profits contributed to the reward and welfare funds already meet the prescribed level, the remainder shall be remitted wholly to the development investment fund. If it is not enough to contribute to the reward and welfare funds at the level of two months of real wages, the shortfall shall be made up by the State. 2. For a public utility registry enterprise whose income from expertizing is not enough to make up for the reasonable expenditures, after using 50% of the profits from business activities and other activities to fill up the shortfall, the remaining losses shall be covered by the State in the following mode: - Giving enough subsidies to make up for the remaining losses. - To give allowances to the reward and welfare funds equivalent to two months of real wages of the public utility registry enterprise. The remaining profits from business activities and other activities shall be used to contribute to the development investment fund (80%) and the financial reserve fund (20%). 3. The procedures, the time of deduction and the objective of use of the funds of the public utility registry, enterprise shall comply with those prescribed for State enterprises engaged in business activities. IV. FINANCIAL PLAN 1. Each year, basing itself on the assigned task and the guidances of the financial agency, the public utility registry enterprise shall make the plans for production, financial revenues and expenditures, allowances, price subsidies and report them to the agency which decides to found the enterprise and the financial agency of the same level. The agency which decides to found the enterprise shall ratify and incorporate the plans to report to the competent authority and the relevant financial agency. 2. Within the framework of the financial plan, the annual plan of allowance and price subsidies already ratified, the head of the agency which decides to found the enterprise shall allocate the projected budget, assign the plan to the public utility registry enterprise and send it to the financial agency of the same level for coordination. A public utility registry enterprise with dependent units shall have to allocate the assigned plans to these units and at the same time shall send them to the financial agency in the locality where the dependent units have their head offices with a view to following and managing the revenues and expenditures and making budget remittanes as prescribed by the State. V. CHECKING THE ACCOUNTS, MAKING THE FINANCIAL REPORT AND PUBLICIZING THE FINANCES 1. Drawing up the financial report Each quarter and each year, the public utility registry enterprise shall draw up a financial report as currently prescribed and send it to the agency that decides to found the enterprise, the tax agency, the agency managing State capital and property at the enterprise and the statistical agency. The Head of the public utility registry enterprise is answerable to the State and law for the accuracy and truthfulness of the financial report. 2. Checking the accounts and financial report - Each quarter and each year, the public utility registry enterprise shall have to check its own accounts and make financial reports. - The agency that decides to found the public utility registry enterprise shall assume the main responsibility and coordinate with the agency managing State capital and property at the enterprise to inspect and ratify the annual financial report of the enterprise. - The financial agency shall have to check the observance of the financial and accountancy regime, the discipline of remittance to the budget and the accuracy and truthfulness of the financial report. - The violations of the accountancy regime, the regime of financial revenue and expenditures, the regime of deduction and use of the funds of the public utility registry enterprises shall be subject to administrative and economic sanctions as prescribed by law. 3. Publicization of annual financial report - Basing itself on the annual financial report already ratified by the competent authority, the public utility registry enterprise shall make public a number of financial indicators at the conference of personnel and workers at the enterprise. - The contents of the publicized financial indicators shall comply with the provisions of law. VI. IMPLEMENTATION PROVISIONS 1. Apart from specific provisions for the public utility registry enterprise contained in this Circular, the public utility registry enterprises shall also have to comply with other provisions of the legislation applicable to State enterprises. 2. This Circular takes effect from January 1st, 1998. All earlier provisions on the financial management regime at the State enterprises engaged in public utility activities in the registry service which are contrary to this Circular are now annulled. 3. In the course of implementation, should any question arise, the enterprises should report it in time to the Ministry of Finance and the Ministry of Communications and Transport for study, modification and supplement to make it more appropriate. For the Minister of Communications and Transport Vice Minister DAO DINH BINH For the Minister of Finance Vice Minister PHAM VAN TRONG