Chapter V
FINANCE, ACCOUNTING AND AUDIT, INFORMATION AND REPORT
Article 38. Financial regime, accounting, report
1. The credit guarantee fund shall comply with their financial regime, perform accounting and reporting tasks in accordance with this Decree and guidelines from the Ministry of Finance.
2. Fiscal year of Credit Guarantee Fund begins on January 01 and ends on December 31 every calendar year.
Article 39. Making annual financial plans
1. The credit guarantee fund shall make annual financial plans, plans for revenues, expenditures, procurement of fixed assets and then submit them to the President for consideration after obtaining the approval from the owner.
2. Process of approval and issuance of annual financial plans:
a) Before December 31, the President of credit guarantee fund shall send a report on annual financial plan to the People's Committee of province;
b) Before March 30 of the planning year, the People's Committee of province shall consider approving the annual financial plan for further implementation.
Article 40. Operational capital of credit guarantee fund
Operating capital of the credit guarantee fund is acquired from the following sources:
1. Owner’s equity:
a) Charter capital of the credit guarantee fund allocated by the local government budget;
b) Supplementary capital generated from the operating outcome of credit guarantee fund in accordance with legal regulations;
c) Capital generated from non-refundable grants, aids, contributions from Vietnamese and foreign entities to the credit guarantee fund;
d) Other state capital as per the law;
dd) Other sources of funds from owner’s equity as per the law.
2. Called-up capital: Capital raised from Vietnamese and foreign financial institutions and credit institutions as per the law and internal regulations of the fund conformable with the repayment capacity of the fund.
3. Other capital:
a) Capital trusted by local governments, local financial funds, Vietnamese and foreign entities (the trust) to execute the requests of the trustee as per the law and this Decree;
b) Other legal capital sources as stipulated by applicable laws.
Article 41. Principles for the capital management and utilization of a credit guarantee fund
1. The utilization of operating capital of the Credit Guarantee Fund must be based on the principle that it will serve the right purpose, ensure efficiency, capital and asset safety as follows:
a) Extending the credit guarantee to obligors in accordance with the provisions laid down in this Decree;
b) Capital expenditures and procurement of fixed assets for the operation of credit guarantee fund at the investment rate of less than 7% of charter capital of credit guarantee fund. The President shall promulgate regulations on construction and procurement of fixed assets in accordance with laws on investment and construction management.
2. The People's Committee of province requests People’s Council of province to consider providing extra charter capital for the credit guarantee fund as prescribed in this Decree and the Law on State Budget.
3. Idle sums of credit guarantee fund shall be used to serve the purpose of purchasing government bonds, treasury bills, treasury bonds, national bonds, government-guaranteed bonds, or deposited to saving accounts at credit institutions approved by the President of People’s Committee of province in each period following the rules of capital maintenance and development.
Article 42. Salary and allowances
The credit guarantee fund applies regulations on management of employees, salaries, remunerations, bonuses to employees and managers for single-member limited liability companies whose charter capital is wholly held by the state and in conformity with the operation nature and model of the fund as prescribed in this Decree.
Article 43. Financial results and distribution
1. Annual financial result of the credit guarantee fund means the difference between the total revenue earned and total expense incurred in the fiscal year.
2. After paying taxes and amounts payable to State budget, if the total revenue is greater than total expense, this difference shall be distributed in the order below:
b) Cover cumulative negative amounts until the statement time;
b) Deduct fines for violations imposed on the credit guarantee fund as per the law;
c) The remaining amount after deductions prescribed in Point a and Point b Clause 2 of this Article shall be deducted in the order below:
- Set aside 30% to build up the development investment fund.
- Set aside 20% to build up the financial reserve fund; the maximum rate may not exceed 25% of the charter capital.
- Set aside an amount to build up the welfare fund for employees, reward fund for managers in accordance with regulations applied to single-member limited liability companies whose charter capital is wholly held by the state. The Ministry of Finance shall provide guidelines for conditions for building up these funds and rates thereof.
- The remaining amount (if any) shall be supplemented to the development investment fund for providing extra charter capital for the credit guarantee fund under a decision made by the President of People’s Committee of province.
3. Use purpose of aforementioned funds
a) The development investment fund shall be used to supplement to the charter capital and execute development investment projects of the credit guarantee fund;
b) The financial reserve fund shall be used in the order of priority as follows:
- To cover loss and damage in terms of property, debts that cannot be recovered;
- Deal with credit guarantee risks after using up the guarantee loss reserve which is built up from the guarantee fees according to the decision of the President upon the request of the Director;
c) Manager reward fund:
- shall be used to reward the President, controllers, Director, Deputy Directors, chief accountants of the credit guarantee fund in a similar way to single-member limited liability companies whose charter capital is held by the state.
- The People's Committee of province shall decide the amounts of rewards according to the performance of the credit guarantee fund, upon the proposal of the President of credit guarantee fund.
d) The reward fund shall be used to give regular or surprise awards to individuals or groups of the credit guarantee fund who have technical initiatives or practice process bringing about effective performance of the credit guarantee fund; give awards to entities inside and outside the credit guarantee fund who make effective contributions to the operation of the fund;
dd) The welfare fund shall be used to spend on sports, cultural, welfare activities of staff of the credit guarantee fund; give regular or surprise subsidies to staff in difficulties; spend on construction and repair of welfare works.
The President, Director of the credit guarantee fund shall cooperate with the trade union of the credit guarantee fund in managing this fund in a transparent manner.
4. The credit guarantee fund shall issue the Regulation on management and use of these funds in accordance with this Decree for their internal application. After the People's Committee of province ratifies the Regulation, it shall manage the funds in a transparent manner.
5. If the total revenue is less than total expense (credit guarantee fund suffers a loss in the financial year), the credit guarantee fund is entitled to carry the loss forward to the following year, the period for carrying loss may not exceed 5 years from the year succeeding the year of loss. If the credit guarantee fund fails to carry all of losses forward after 5 years, it shall request the President of People’s Committee of province to consider approving the capital reduction, operating capital allocation, restructuring, dissolution or bankruptcy of the credit guarantee fund as prescribed in this Decree and relevant laws.
Article 44. Communication and reporting regime
1. The credit guarantee fund shall:
a) Prepare and send biannual reports to the People's Committee of province, the Department of Finance, the branch of the State Bank of province where the credit guarantee fund operates;
b) Prepare and send annual reports to the Ministry of Finance, the State Bank of Vietnam and the Ministry of Planning and Investment.
2. Biannual and annual reports prescribed in Clause 1 of this Article, including:
a) Financial statements, including: balance sheets; performance reports; cash flow statements; equity fluctuation reports; notes to financial statements as per the law; revenue and expenditure reports; reports on distribution of revenues and expenditures and use of funds in accordance with instructions of the Ministry of Finance;
b) Professional operations reports: Financial performance reports of projects granted guarantees;
c) Annual financial audit reports.
3. Time limit for sending reports:
a) Biannual reports must be sent within 30 days from the end of the 6-month period;
b) The annual report must be sent within 90 days from the end of the fiscal year; the annual financial audit report of the credit guarantee fund made by the independent audit organization must be sent within 120 days from the end of the fiscal year.
4. In an ad hoc circumstance, the credit guarantee fund shall be responsible and obliged to provide information and reports for competent authorities upon requests.
5. On an annual basis, the People's Committee of province shall send a report on financial performance of the credit guarantee fund to the People’s Council of province for supervision. Contents of report:
a) Financial performance of the credit guarantee fund, including: turnover, total guaranteed debt, guarantee sector, debt repayment for the obligor;
b) Financial resources of the credit guarantee fund: operational sources of funds, revenues and expenditures, loan loss provision;
c) Evaluation and claims in terms of operation of the credit guarantee fund.
Article 45. Audit and financial statement disclosure
1. An annual financial report prepared by the credit guarantee fund must be audited by an independent auditor or state audit office and published in accordance with applicable laws.
2. Annually, the controller of credit guarantee fund shall request the President to select an independent audit organization incorporated and operating in Vietnam to make a financial audit of the credit guarantee fund.
3. The controller of the credit guarantee fund shall inspect and control the implementation of financial regulations by the credit guarantee fund as planned and send a report to the President of credit guarantee fund.
Tìm kiếm
Nghị định 34/2018/NĐ-CP (Bản Word)
Nghị định 34/2018/NĐ-CP (Bản Pdf)
