What is the allocation of the difference between total income and total expenditures incurred after making tax payments and other payments to the state budget by Vietnam's Farmer Support Fund?
What are the financial outcomes of Vietnam's Farmer Support Fund?
Under the provisions in Clause 1, Article 36 of Decree 37/2023/ND-CP:
Financial outcomes and distribution of financial outcomes
1. The financial outcomes of Vietnam's Farmer Support Fund are the difference between the total revenue and the total expenditures incurred during the financial year:
a) The financial outcomes of Vietnam's Farmer Support Fund for the year show a surplus when the difference between income and expenditures incurred during the financial year of the Fund is positive;
b) The financial outcomes of Vietnam's Farmer Support Fund for the year show a deficit when the difference between income and expenditures incurred during the financial year of the Fund is negative.
According to the above provision, the financial outcomes of Vietnam's Farmer Support Fund are the difference between the total revenue and the total expenditures incurred during the financial year.
The financial year of Vietnam's Farmer Support Fund runs from January 1 to December 31 each year.
What is the allocation of the difference between total income and total expenditures incurred after making tax payments and other payments to the state budget by Vietnam's Farmer Support Fund?
What is the allocation of the difference between total income and total expenditures incurred after making tax payments and other payments to the state budget by Vietnam's Farmer Support Fund?
Under the provisions in Clause 2, Article 36 of Decree 37/2023/ND-CP:
Financial outcomes and distribution of financial outcomes
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2. After making tax payment and other payments to the state budget as prescribed in this Decree and tax laws (if any), the difference between total income and total expenditures mentioned in Clause 1 of this Article shall be allocated as follows:
a) Compensate for cumulative losses up to the time of final settlement;
b) Allocate 20% to the development investment fund;
c) Allocate 10% to the financial reserve fund; the balance of the financial reserve fund shall not exceed 25% of the charter capital of Vietnam's Farmer Support Fund;
d) Allocate a maximum not exceeding 03 months of salary and salary allowances of the Fund's staff and employees to the reward and welfare fund; Allocate a maximum not exceeding 1.5 months of the manager's salary to the Managers' reward fund. The allocation ratio of the reward fund, the welfare fund of the employees, and the Managers' reward fund shall be determined based on the assessment and classification of the Fund and the assessment of task completion level of the Fund manager as prescribed in this Decree and guided by the Ministry of Finance;
dd) If the remaining income-expenditure difference after allocating the funds as prescribed in points a, b, and c of this clause is insufficient to allocate the funds as prescribed in point d of this clause, Vietnam's Farmer Support Fund shall reduce the allocation level to the development investment fund to supplement the allocation source according to the regulation level, but the maximum reduction shall not exceed the allocation to the development investment fund in the financial year;
e) The remaining difference (if any) after allocating the above funds shall be added to the Fund's development investment fund.
The difference between total income and total expenditures incurred after making tax payments and other payments to the state budget shall be allocated as stipulated above.
Note: In cases where the remaining income-expenditure difference after allocating the funds for compensating cumulative losses up to the time of final settlement, allocating 20% to the development investment fund, and 10% to the financial reserve fund, whereas the financial reserve fund balance shall not exceed 25% of Vietnam's Farmer Support Fund's charter capital is insufficient to allocate the funds:
- Allocate a maximum not exceeding 03 months of salary and salary allowances of the Fund's staff and employees to the reward and welfare fund.- Allocate a maximum not exceeding 1.5 months of the manager's salary to the Managers' reward fund, then Vietnam's Farmer Support Fund shall reduce the allocation level to the development investment fund to supplement the allocation source according to the regulation level, but the maximum reduction shall not exceed the allocation to the development investment fund in the financial year.
Simultaneously, if there remains any difference after the allocation of the above funds, it shall be added to the Fund's development investment fund.
What are the usage purposes of the Funds allocated from the difference between the total revenue and the total expenditures?
Based on the provisions in Clause 3, Article 36 of Decree 37/2023/ND-CP:
Financial outcomes and distribution of financial outcomes
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3. Usage purposes of the funds allocated from the difference between the total revenue and the total expenditures:
a) The development investment fund is used for expanding the scale of operations, innovating technology, equipment, working conditions of Vietnam's Farmer Support Fund, and supplementing the charter capital of Vietnam's Farmer Support Fund;
b) The financial reserve fund is used to compensate for the remaining losses and damages of assets, unrecoverable debts during operations after being compensated by collateral disposal (if any), compensation from individuals and organizations causing the loss, insurance organizations, and using the provision for expenditures in accordance with this Decree;
c) The reward fund for the Fund's staff and employees shall be used for periodic or unexpected rewards to staff and employees of Vietnam's Farmer Support Fund who have technical innovation initiatives, effective business process improvements, or contribute effectively to the Fund's activities. The Executive Committee of the Farmers' Association at all levels shall guide the reward spending norms for each subject for Vietnam's Farmer Support Fund to implement;
d) The welfare fund shall be used for sports, cultural, public welfare activities of the Fund's staff group; regular and unexpected hardship allowances for the Fund's staff. The Director of Vietnam's Farmer Support Fund shall collaborate with the Executive Committee of the Trade Union or the Trade Union group (in case there is no Trade Union Executive Committee) to manage and use this fund;
dd) The Managers' reward fund is used to reward the managers of Vietnam's Farmer Support Fund. The reward level shall be determined by the Chairman of the Farmers' Association at the corresponding level based on the assessment of task completion level of the Fund's managers as prescribed in this Decree.
The usage purposes of the funds allocated from the difference between the total revenue and the total expenditures shall be implemented according to the above-mentioned contents.
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