Circular No. 54/2016/TT-BTC dated March 21, 2016 of the Ministry of Finance on the regulations on management and use of interests on loans from national employment fund

THE MINISTRY OF FINANCE

Circular No.54/2016/TT-BTC dated March 21, 2016 of the Ministry of Finance on the regulations on management and use of interests on loans from national employment fund

Pursuant to the Government’s Decree No. 60/2003/ND-CP dated June 06, 2003 providing instructions on the implementation of the Law on State budget;

Pursuant to the Government’s Decree No.215/2013/ND-CP dated December 23, 2013 providing functions, duties, authority and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 60/2003/ND-CP dated July 9, 2015 providing policies on subsidy for job creation and national employment fund (herein the Decree No. 61/2015/ND-CP);

At the request of the Director of the Department of Public Expenditure;

The Minister of Finance promulgates the Circular on management and use of interests on loans from the national employment fund;

Article 1. Scope of adjustment

1. This Circular regulates management and use of interests on loans from the national employment fund.

2. This Circular is not applicable to interests on loans from sources of finance of Vietnam Bank for Social Policies for creation of jobs that is partially subsidized by the State.

Article 2. Subject of application

1. Vietnam Bank for Social Policies;

2. Agencies, organizations and individuals involved in management and use of interests on loans from the national employment fund;

Article 3. Management and use of interests on loans from the national employment fund

1. Vietnam Bank for Social Policies shall manage and include the interests on loans from the national employment fund in the receipts of Vietnam Bank for Social Policies (Loan interest entry). The establishment of a provisional fund and expenses by Vietnam Bank for Social Policies is instructed in the Prime Minister’s Decision No. 180/2002/QD-TTg dated December 19, 2002 and Decision No. 30/2015/QD-TTg dated July 31, 2015 and guiding documents.

2. Based on the amount of interest collected, Vietnam Bank for Social Policies shall set apart an amount of money for management, inspection, monitoring and addition to the national employment fund s sources as follows:

a) Set apart an expense for the management, compilation, inspection and supervision carried out by the agency for labor – invalids and social affairs (herein ‘labor agencies’):

- Set apart 0.3% of the amount of interest collected as a subsidy for the management, compilation, inspection and supervision carried out by the Ministry of Labor, Invalids and Social Affairs Before 30^thof the quarter’s first month, Vietnam Bank for Social Policies shall make a report and transfer the amount of interest set apart from the preceding quarter to the Ministry of Labor, Invalids and Social Affairs.

- Set apart 15% of the amount of interest collected for the management, compilation, inspection and supervision carried out by local labor agencies. Based on the plan for collection of interests, provision of loans and creation of jobs, inspection, monitoring and assessment by labor agencies at district, provincial levels, the Services of Labor, Invalids and Social Affairs shall make submission to presidents of People’s committees of central-affiliated cities and provinces for decisions on an appropriate amount to be set apart for the Services of Labor, Invalids and Social Affairs. Before 20^thof the quarter’s first month, branches of Vietnam Bank for Social Policies shall transfer the amount of money set apart from the preceding quarter to agencies of labor, invalid and social affairs based on amount of interest collected and the proportion of interest set apart as decided by thePeople’s Committees ofcentral-affiliated cities and provinces.

b) Set apart 10% of the amount of interest collected for addition to the national employment fund s sources of finance; On a six-month and annual basis, Vietnam Bank for Social Policies shall make a report on amount of interest set apart for addition to the national employment fund to the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, the Ministry of Planning and Investment before July 31 annually and January 30 of the following year for monitoring and management.

Article 4. Expenses for management, compilation, inspection and monitoring by labor agencies as prescribed in Point a, Clause 2, Article 3 hereof

1. Expenses for professional conferences, training programs; organization of partial and entire summing-ups of activities of providing loans for job creation; inspection, monitoring and assessment of criteria for creation of a new job, activities supporting the management of the national employment fund, compilation and reporting on results of provision of loans; Expense levels are instructed in the Ministry of Finance’s Circular No. 97/2010/TT-BTC dated July 06, 2010.

2. Expenses for procurement and repair of properties serving the management of the national employment fund are instructed in the Law on Bidding.

3. Expenses for investigation into provision of loans and creation of jobs, maintenance and extension of employment; .Expense level is instructed in the Ministry of Finance’s Circular No. 58/2011/TT-BTC dated May 11, 2011 regulating management, use and final settlement of expenditures on implementation of statistical investigations.

4. Expenses for dissemination of the Law on provision of loans from the national employment fund; Expense level is instructed in the Ministry of Finance and Ministry of Justice’s Joint Circular No. 14/2014/TTLT-BTC-BTP dated January 27, 2014 regulating establishment of cost estimates, management, use and final settlement of state expenditures for dissemination and education about the law.

5. Expenses for commendation to collectives, individuals for achievements in managerial tasks, provision of loans for job creation (labor agencies, associations, unions, Vietnam Bank for Social Policies); project owners, borrowers who make effective use of loans and create lots of employment. Expense level is twice and the same as base pay/year for a collective and an individual respectively.

6. Other expenses in direct relation to management of provision of loans:

a) Stationery, communications;

b) Overtime work pursuant to the Ministry of Home Affairs and the Ministry of Finance’s Joint Circular No. 08/2005/TTLT-BNV-BTC dated January 05, 2005 providing guidance on wages paid for night time and overtime hours to officials and civil servants;

c) Other expenses within cost estimates allocated by competent authorities;

7. Labor agencies provided with source of interest on loans from the national employment fund shall be responsible for using the expenditure in accordance with applicable regulations on financial spending and provisions of this Circular; annually, prepare final settlement of the expenditure and enter such settlement in their other sources of expenditure and make reports to financial agencies of the same level. Labor agencies may use sources of expenditures for regular operation of their own units according to expense level as prescribed hereof if subtraction from the amount of interest is insufficient for performance of the tasks. Outstanding expenditures from the source of interest at the end of year shall be transferred to the following year for continued use and financial settlement.

Article 5. Effect

1. This Circular takes effect on May 05, 2016.

2. Provisions on expenditures on management of the national employment fund, establishment and allocation of budget estimates of the Steering board of the National target program on employment in spending estimates for administrative management of labor agencies as prescribed in Clause 1, Clause 2, Section II and Clause 1, Clause 2, Section III of the Ministry of Finance’s Circular No. 73/2008/TT-BTC dated August 01, 2008 are hereby annulled.

3. Any amendment, supplement or replacement to documents referred to in this Circular shall prevail over all other previous documents

4. Any difficulties arising in the course of the implementation of this Circular should be reported to the Ministry of Finance for amendments or supplements as appropriate./.

For the Minister

The Deputy Minister

Do Hoang Anh Tuan