Organization of Cash Collection according to Circular 13/2017/TT-BTC

1. Collection of State Budget Revenues in Cash:

- For state budget revenues collected in cash at the State Treasury: Follow the provisions of Article 7 Circular 328/2016/TT-BTC; Articles 17, 18, 19, 20, and 21 Circular 184/2015/TT-BTC; Articles 10 and 11 Circular 84/2016/TT-BTC.

- For state budget revenues collected in cash at the transaction units (such as fees, charges, administrative violation fines): When collecting state budget revenues in cash, transaction units must promptly deposit the collected cash into the corresponding accounts at the local State Treasury or into the State Treasury’s account at a commercial bank as per the policy regulations; transaction units are not allowed to retain the collected state budget cash for spending, except in cases where retention is permitted by policy regulations.

2. Other Cash Collections:

- For other cash collections at the State Treasury: Based on the nature of the cash deposit, the payer creates a voucher to deposit the money into their account at the State Treasury; the State Treasury organizes the collection, processes the voucher copies, and accounts for them following the Ministry of Finance’s guidelines on state accounting for the budget and treasury management information system and related legal documents.

- For other cash collections at public service providers: In cases where public service providers collect cash from non-state budget funded public service activities, the public service provider should deposit the collected amount into their account at a commercial bank or the State Treasury as stipulated in Article 16 Decree 16/2015/ND-CP.

3. Commissioned Collection of Fees in Cash: For some cash fee collections from services performed by public service providers and allowed to retain a part or whole, the unit is permitted to open a specialized collection account at a commercial bank and commission that bank to collect on its behalf. The specialized collection account of the public service provider at the commercial bank is solely for concentrating the unit’s fee collections; it is not to be used for payments or other purposes. Specifically:

- Principles for commissioning the commercial bank to collect on behalf:

- Commissioning a commercial bank to collect fees in cash should facilitate the payer; at the same time, reduce workload for the unit’s accounting system and cut down the costs of organizing collection and submission of fees;- The unit must closely coordinate with the commissioned commercial bank to conduct the collection and issue receipts to the payer according to regulation. Periodically (no more than 5 working days or when the specialized collection account balance exceeds 1 billion VND), the unit must transfer the entire balance from the specialized collection account at the commercial bank to the unit’s account at the State Treasury for management as per regulations. The unit must manage and use the collected funds according to current regulations and take responsibility for transferring funds from the specialized collection account to the unit’s account at the State Treasury;- Interest from the specialized collection account and other financial incentives (if any) are aggregated into the unit’s fee collection from its service activities and managed, used according to legal provisions.

- To commission a commercial bank to collect fees, units must formulate a specific plan and report for approval by their managing agency before implementation; they must also send one approved plan copy to the State Treasury where the unit holds an account for coordination. The unit’s commissioned collection plan must clearly state several details:

- The selected bank for opening the specialized collection account and for commissioned collection;- The method and process of collection organization by the commercial bank and the unit;- The financial plan must clearly state the costs of commissioned collection and interest rates for the balance of the unit’s specialized collection account at the commercial bank; wherein the costs of commissioned collection must not exceed the interest earned from the unit’s specialized collection account at the bank.

Refer to additional details in: Circular 13/2017/TT-BTC effective from April 1, 2017.

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