Chương VI Nghị định 39/2019/NĐ-CP: Quản lý tài chính

Chapter VI

FINANCIAL MANAGEMENT

Article 43. Fund’s operating capital

1. Owner’s equity shall include:

a) The Fund's minimum chartered capital which is 2,000 billion dong and is derived from the state budget's capital expenditure. The Ministry of Planning and Investment shall preside over and cooperate with the Ministry of Finance in petitioning the Prime Minister to approve the Fund’s chartered capital amount over periods of time;

b) Supplementary capital derived from the Fund’s income;

c) Capital derived from non-refundable financing, aids and contributions of persons and entities;

d) Other capital under the Fund’s ownership.

2. Capital acquired from receipt of reimbursable borrowed funds, contributions and fiduciary funds of persons and entities.

3. Other capital prescribed by law.

Article 44. Principles of management and use of capital, assets, revenues, expenses and distribution of the Fund's income

1. The Fund must manage and use capital according to the principles of right purposes, efficiency and capital safety maintenance.

2. The Fund shall apply regulations enshrined in law on development, purchase, management and use of fixed assets, management of revenues, other income, expenses and distribution of income with respect to single-member limited liability companies whose chartered capital is wholly owned by the State.

3. Revenues and expenses of the Fund must be managed in a strict, due, faithful and legitimate manner; must be supported by all required dossiers or evidencing documents prescribed in law and must be recorded in detail in accounting books according to the applied accounting regime and provisions of other relevant laws.

Article 45. Purposes of use of capital

1. The operating capital defined in Article 43 herein shall be used for lending to small and medium enterprises running innovative startups or those participating in inter-sectoral complexes or value chains.

2. The capital defined in point b, c and d of clause 1 of Article 43 herein shall be used for offering finances to small and medium enterprises running innovative startups or those participating in inter-sectoral complexes or value chains.

3. The capital defined in point b, c and d of clause 1 and clause 3 of Article 43 herein shall be used for giving capacity promotion support to small and medium enterprises.

4. The capital defined in point b of clause 1 of Article 43 herein shall be used for implementing investment and development projects of the Fund; treating risks and compensating for any loss or damage to assets or bad debts that may arise from the Fund's operations.

5. The operating capital defined in Article 43 herein shall be used for spending on management and administration of the Fund; spending on investment, development and purchase of fixed assets, tools or accessories under the provisions of Article 48 herein for the Fund's operational purposes.

6. The available capital included in the operating capital under Article 43 herein shall be used for making saving deposits into accounts opened at commercial banks provided that safety for such deposits is ensured.

Article 46. Asset management

1. Purchase of fixed assets by the Fund

a) Authority to decide investment in and purchase of fixed assets, standards, norms, processes, procedures for investment in, purchase and repair of fixed assets shall be subject to regulations applied to single-member limited liability companies whose chartered capital is wholly owned by the State, must adhere to the principles of public disclosure, transparency, cost efficiency and effectiveness;

b) Purchase of fixed assets serving the Fund’s activities must stick to the principles whereby the remaining value of total fixed asset does not exceed 7% of the Fund’s actual chartered capital at the time of purchase.

2. Principles of depreciation, regimes for management, use and time of depreciation of fixed assets of the Fund shall be subject to law on depreciation of fixed assets applied to single member limited liability companies whose chartered capital is wholly owned by the State.

3. Renting of fixed assets

a) The Fund may rent fixed assets according to the principles of effectiveness and compliance with law applied to single member limited liability companies whose chartered capital is wholly owned by the State;

b) Authority to decide to rent fixed assets shall be subject to regulations applied to single member limited liability companies whose chartered capital is wholly owned by the State.

4. Liquidation, disposal and sale of fixed assets

a) The Fund shall have the right to liquidate, dispose of and sell fixed assets which have been damaged, technically outdated, have no longer been used, are useless or are used ineffectively in order to recovery capital according to the principles of public disclosure, transparency, capital safety and compliance with regulations in force;

b) Authority to decide to liquidate, dispose of and sell fixed assets; processes and procedures for liquidation and disposal of fixed assets shall be subject to regulations applied to single member limited liability companies whose chartered capital is wholly owned by the State.

5. Stocktaking and revaluation of fixed assets

a) Stocktaking of assets

The Fund must make a periodic or unscheduled inventory of fixed assets to determine the number of these assets in the following cases: Closing of accounting book for preparation of annual financial statement; after natural disasters, hostility acts or for certain reasons resulting in variation in the Fund’s assets; under regulations adopted by competent regulatory authorities.

If there is surplus or deficiency, it shall be mandatory to clearly determine causes and responsibilities of entities and persons concerned as well as material compensation rate in accordance with law.

b) Revaluation of assets

The Fund must carry out the revaluation of assets in accordance with regulations applied to single member limited liability companies whose chartered capital is wholly owned by the State. Any increase or decrease in value of assets after revaluation shall be determined in accordance with the Fund’s regulations applied to specific cases.

6. Handling of assets subject to loss or damage

In case any loss or damage to an asset occurs, the Fund must value the affected asset, determine causes, responsibilities and take action as follows:

a) Pointing out whether such loss may result from objective causes (i.e. natural disasters, conflagration or sudden accidents) or subjective causes, or both;

b) If such loss or damage results from subjective causes, entities or persons causing loss or damage must compensate and implement relief actions as prescribed by law. The Fund must impose detailed regulations on compensation and determine the compensation rate conforming to law; must bear responsibility for its own decision;

c) If the asset subject to loss or damage has been insured as required by law, action shall be taken under terms and conditions of the insurance policy;

d) If value of the asset subject to loss or damage after being compensated for by indemnity of the entity or person causing such loss or damage or the insurer, and by loss provisions, is inadequate, such value shall be recorded in the Fund's expenses arising during the accounting period;

dd) In special cases where serious loss or damage is caused by natural disasters or force majeure events, and the Fund is unable to mitigate consequences therefrom on its own, the Director must report to the Members' Board on the plan of action against such loss or damage which is then presented to the Minister of Planning and Investment to seek his/her decision.

7. The Fund shall be responsible for issuing rules in purchasing and managing fixed assets in accordance with regulations laid down herein and provisions of other relevant law.

Article 47. Revenues

The Fund’s revenue is an account receivable that may arise during an accounting period, including:

1. Revenues generated from the Fund’s services and operations:

a) Revenues from lending activities, including direct and indirect lending interest, and others;

b) Revenues from management of lending funds, finances, aids, contributions and fiduciary funds (if any);

c) Revenues from support for enhancement of capacity given to small and medium enterprises;

d) Other revenues from services or operations.

2. Revenues from deposit interest.

3. Revenues from liquidation and disposition of assets; revenues from insurance indemnity (the residual amount after compensation for loss or damage occurring; revenues from penalties or compensation for breach of economic contract; revenues from debts written off by loss provisions and now collected successfully; revenues from exchange rate difference (if any).

4. Other revenues required by law.

Article 48. Fund's expenses

The Fund's expenses are those expenses arising within the accounting period which are necessary for the Fund’s operations, including:

1. Expenses for the Fund’s operations and services:

a) Expenses for lending and financing activities, including: Indirect lending and financing fees; spending on lending application verification; fees for assessment and valuation of property put up as security for loans; spending on inspection, surveillance and review of finances and other spending related to financing and lending operations;

b) Spending on support for enhancement of capacity given to small and medium enterprises;

c) Costs of receipt and management of borrowed funds, financing, aids, contributions and fiduciary funds from persons and entities;

d) Spending on setting aside loan loss provisions and other provisions (if any);

dd) Spending on debt treatment operations;

e) Spending on insurance, spending on depositing of idle capital and spending on foreign exchange difference;

g) Spending on other services and operations.

2. Spending on operation of the Fund’s machinery

a) Spending on payments to employees and managers, including: Spending on salaries, wages, remunerations, bonuses, allowances and other salary-based spending; spending on salary-based contributions (e.g. social insurance contributions, health insurance contributions, labor insurance contributions, unemployment insurance contributions and trade union dues); spending on reward and social welfare; spending on uniform worn during transactions; spending on subsidies; spending on payment of shift meal costs; spending on medical costs; spending on payment of female worker’s costs, prescribed in current regulations; other spending on payments to employees and managers under law;

b) Overheads, including: Travelling costs; training expenses; spending on scientific and technological research and application; communication, advertisement and marketing costs; spending on information technology; spending on activities of Party organizations and unions; spending on stationery, documents and newspapers; spending on payment for electricity, water, phone, telecommunication bills and office cleaning costs; spending on payment of costs of conferences, seminars, training and communication courses, printing of handouts and guest reception activities; spending on purchase of goods and services; spending on transactions, external relations, participation in forums and networks; spending on inspection, surveillance and audit; spending on hiring of foreign and domestic experts and consultants; costs of transportation and other spending on operations management activities;

c) Capital expenditures, spending on purchase, maintenance and repair of assets; spending on fixed asset depreciation; spending on renting of assets under leases; spending on disposition and liquidation of assets; spending on property insurance; spending on purchase of equipment and accessories; other spending on management and use of assets.

3. Spending on payment of taxes, fees and charges under law.

4. Spending on unearned revenues that are neither collected in reality nor recorded as decreases in the revenue account; spending on liabilities of which creditors have not been found, which have been recorded as entries in the income account and of which creditors, however, are eventually found; spending on recovery of written-off debts and payment of bad debt recovery costs; spending on payment of fines and indemnities owing to breach of economic contracts under the Fund’s duties; spending on handling of asset losses under law; spending on corporate social responsibility activities; spending on payment of legal costs and law enforcement charges.

5. Other expenses.

6. Expense limits prescribed in clause 1, 2, 3, 4 and 5 of this Article shall be subject to law on those applied to single member limited liability companies whose chartered capital is wholly owned by the State. In default of such law, the Fund may, depending on its financial capacity, set the limit and make the decision on spending to ensure relevance and effectiveness.

Article 49. Salaries and allowances

The Fund shall exercise its authority over labor, salaries, remunerations and bonuses of its employees and managers in accordance with regulations on single member limited liability companies whose chartered capital is wholly owned by the State in alignment with the characteristics, model and operations of the Fund under the provisions of this Decree and according to instructions given by the Ministry of Labor, War Invalids and Social Affairs.

Article 50. Distribution of profit

1. The Fund’s annual profit is the difference between total income and total expenses incurred in a fiscal year.

2. After payment of fines for violations against law and compensation for losses from previous years, payment of corporate income taxes under law, if total income is greater than total expenses, the difference shall be deemed 100% and shall be distributed as follows:

a) Setting aside 25% of the difference for the capital investment fund;

b) Setting aside 20% of the difference at maximum for the financial reserve fund on condition that the maximum amount available in this fund does not exceed 25% of the Fund’s actual chartered capital;

c) Setting aside part of the difference which is equal to 03 months' salary paid to employees at maximum in the fiscal year for the reward fund or the welfare fund, and which is equal to 1.5 month’s salary paid to managers at maximum in the fiscal year for the manager’s reward fund;

d) Residual amounts remaining after setting up the aforesaid funds (if any) shall be used as supplements to the capital investment fund;

dd) If the revenue-expense difference existing after setting up the capital investment fund is not adequate to be set aside for the reward fund, the welfare fund and the manager's reward fund that meet the limits prescribed by regulations in force, the Fund may be entitled to reduction in amounts set aside for the capital investment fund to supplement the available funds to be adequate to set up the reward fund, the welfare fund and the manager’s reward fund meeting the limits prescribed by regulations in force, and the maximum reduction must not exceed the amount set aside for the capital investment fund in a fiscal year;

e) Members’ Board shall decide the amount set aside for the capital investment fund, the financial reserve fund, the reward and welfare fund and the manager’s reward fund.

3. Setting aside the Fund’s profits for the reward fund and the welfare fund:

a) The A-rated Fund may be allowed to set aside 3 months’ earned salary paid to employees for both reward and welfare fund;

b) The B-rated Fund may be allowed to set aside 1.5 months’ earned salary paid to employees for both reward and welfare fund;

c) The C-rated Fund may be allowed to set aside 01 month’s earned salary paid to employees for both reward and welfare fund.

4. Setting aside the Fund’s profits for the manager’s reward fund:

a) A-rated Fund may be entitled to set aside 1.5 month's earned salaries paid to managers for this fund;

a) B-rated Fund may be entitled to set aside 01 month's earned salaries paid to managers for this fund;

c) C-rated Fund shall not be entitled to set aside part of its profits for this fund.

5. Members’ Board or the person authorized to decide on setting aside or temporarily setting aside part of the Fund’s profits for the reward fund, the welfare fund, the manager’s reward fund, the capital investment fund and the financial reserve fund in accordance with clause 2 of this Article.

6. In case where the Fund incurs losses based on its income statement, the Fund may bring forward such losses to the following fiscal year and the permissible period during which losses are brought forward shall not be longer than 05 years from the year subsequent to the year in which these losses are incurred. After the 5-year period, if the Fund fails to bring forward all losses, the Ministry of Planning and Investment shall preside over and cooperate with the Ministry of Finance in reporting to the Prime Minister to seek his approval decision.

Article 51. Management and utilization of funds

1. Funds must be used to meet regulations, serve correct purposes and beneficiaries.

a) The Fund must design and issue regulations on management and use of funds in accordance with law and according to the principles of democracy, transparency and involvement of the Executive Committee of the Fund's trade union and internal circulation within the Fund before bringing them into effect;

b) In a fiscal year, the Fund may, at its discretion, temporarily set aside amounts for the aforesaid funds on the basis of its profits in order for these funds to be able to spend on accomplishing predetermined purposes;

c) Limits on spending on rewards offered to employees and spending on welfare benefits shall be set by the Members’ Board.

2. The capital investment fund shall be used for:

a) Implementing capital development projects such as: Investment in, expansion and development of the Fund’s support activities; programs and projects for new construction, refurbishment, innovation and expansion of construction projects, projects for purchase of assets, even including non-installed equipment and machinery, projects for repair and improvement of assets and equipment; projects and proposals for scientific research, technological development, application, technical assistance and basic investigation; training and improvement of professional, technical and administrative qualification for the Fund’s employees and managers; other capital investment programs, projects and proposals;

b) Financing activities of small and medium enterprises running innovative startups, small and medium enterprises participating in the inter-sectoral complexes and value chains; providing supports for enhancement of capacity for small and medium enterprises;

c) Supplementing the Fund’s chartered capital.

3. The financial reserve fund may be used in the following order of priority:

a) Compensating for losses or damage to assets or unrecoverable debts arising from operations after these losses or damage have been offset by using indemnities from persons or entities at fault or insurance agencies, and using provisions recorded in the expense account within an accounting period;

b) Dealing with lending risks after using up all of loan loss provisions recorded as entries in the expense account under the decision of the Members' Board;

c) At the end of a fiscal year, if the financial reserve fund has not been used up, the balance shall be brought forward to the subsequent year, and the amounts collected from accounts to which risks have already been treated shall be recorded as other revenues of the Fund.

4. The reward fund may be used for giving rewards at end of a fiscal year, periodic rewards and spontaneous rewards and rewards prescribed in law on emulation and rewards to the Fund’s employees and collective; giving managers rewards prescribed in law on emulation and rewards; giving rewards to independent persons or units that make multiple contributions to the Fund’s activities.

5. The manager’s reward fund may be used for offering rewards at end of a fiscal year, periodic reward, spontaneous rewards and rewards at end of term in office of managers. The reward rate shall be decided by the Ministry of Planning and Investment, depending on performance and efficiency of the Fund, upon the request of the Chairperson of the Members’ Board.

6. The welfare fund may be used for spending on sports, culture and well-being activities for employees and managers; spending on public assistance and charity activities; spending on subsidies for regular, sudden hardship or spending on payment of allowance for employees and managers in public holidays or lunar new year’s holidays; spending on investment in construction or repair of welfare facilities and others of the Fund.

Article 52. Accounting and auditing regime

1. The Fund shall be responsible for performing accounting duties prescribed in law and according to the instructions given by the Ministry of Finance.

2. The Fund’s fiscal year shall start on January 1 and end on December 31 each year.

3. The Fund’s accounting structure shall be established under law on accounting and the Fund’s internal rules.

Article 53. Financial reporting

1. The Fund shall be required to prepare quarterly and yearly financial statements. The Fund’s financial statements must be audited by independent audit bodies established and operated under laws.

2. Yearly financial statements must be submitted within the maximum period of 90 days from the ending date of a fiscal year. Reports on results of yearly financial statements of the Fund must be made by independent audit bodies and sent within the maximum period of 120 days from the ending date of a fiscal year.

3. After obtaining comptroller’s opinions, the Director shall request the Members’ Board to approve financial statements and shall send them to the Ministry of Planning and Investment and the Ministry of Finance.

4. The Fund shall make a public financial disclosure in accordance with law on this matter applied to single member limited liability companies whose chartered capital is wholly owned by the State.