Hanoi-Vietnam: New regulations on cash management at branches of the State Treasury of Vietnam

Circular 13/2017/TT-BTC dated February 15, 2017 of the Vietnam Ministry of Finance clearly stipulates that the cash management at provincial-level State Treasuries and district-level State Treasuries shall follow under quarterly cash fund limits announced by the provincial-level State Treasuries.

The quarterly cash fund limit of the branches of the State Treasury of Vietnam (provincial-level State Treasuries and district-level State Treasuries) is calculated based on the following formula:

The total cash payment needs for the planned quarter are the sum of state budget cash payment needs and other cash payments at the provincial-level State Treasury or each affiliated district-level State Treasury; determined based on the statistical data of cash payments from previous quarters and the capacity for the planned quarter. The number of working days in the planned quarter is set to 65 days. The standard days are prescribed by the Director of the provincial-level State Treasury for the provincial-level State Treasury and each affiliated district-level State Treasury, depending on the quarterly cash payment needs and the frequency of transactions including deposits and cash withdrawals between the State Treasury and the bank where the account is opened.

According to Circular 13/2017/TT-BTC, periodically before the 25th of the last month of the quarter, the provincial-level State Treasury is responsible for determining and informing the provincial-level State Treasury and its affiliated district-level branches of the State Treasury of Vietnam about the quarterly cash fund limit for the next quarter. If by this time the provincial-level State Treasury has not yet announced the quarterly cash fund limit, the branches of the State Treasury of Vietnam shall apply the previous cash fund limit.

Provincial-level State Treasury and district-level State Treasury can use the cash revenues arising at their unit to meet the cash payment needs of their operating units, ensuring not exceed the quarterly cash fund limit notified by the provincial-level State Treasury.

branches of the State Treasury of Vietnam (provincial-level and district-level) must strictly comply with the quarterly cash fund limit notified. In case actual cash funds exceed the notified limit, branches of the State Treasury of Vietnam must deposit the excess cash into the bank where the account is opened at the beginning of the next working day, except when written approval is given by the Director of the provincial-level State Treasury or substantial cash payments are required on the next working day, but not exceeding 2 working days.

Heads of branches of the State Treasury of Vietnam are responsible for inspecting, and urging compliance with the unit's quarterly cash fund limit; bearing responsibility to the head of the superior State Treasury if excess cash funds or cash losses occur at the unit's fund. Provincial-level and district-level State Treasury shall control and process cash payments for operating units along with controlling state budget expenditures based on the legitimate, valid payment receipts of the unit, ensuring compliance with regulations; and guiding operating units to follow the payment regulations prescribed in this Circular.

Circular 13/2017/TT-BTC dated February 15, 2017, by the Ministry of Finance also stipulates that the provincial-level and district-level State Treasury have the right to refuse to make cash payments and notify operating units following the procedure on refusing state budget expenditure payments; and bear responsibility for their decisions in the following cases: Operating units request cash payment for expenses not permitted by law; and cash payments to individuals for units required to implement personal payment policies through bank accounts.

Branches of the State Treasury of Vietnam (provincial-level State Treasuries and district-level State Treasuries) must actively cooperate with the provincial branches of the State Bank of Vietnam or commercial banks where the account is opened to obtain sufficient and prompt cash supply.

Source: Financial Magazine

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