Quyết định 269/QD-TLD

DECISION

ON PROMULGATION OF REGULATION ON FINANCIAL MANAGEMENT OF TRADE UNIONS

BOARD OF PRESIDENTS OF VIETNAM GENERAL CONFEDERATION OF LABOR

- Pursuant to the Law on Trade Unions; Regulation of Vietnam’s Trade Unions 2013;

- Pursuant to the Law on State budget 2002;

- Pursuant to the Law on Accounting 2003;

- Pursuant to the Law on the management and use of State-owned property 2008;

- Pursuant to the Government's Decree No. 191/2013/NĐ-CP dated November 21, 2013 on financial management of Trade Unions

At the request of the Finance Department of Vietnam General Confederation of Labor,

DECIDES

Article 1. Regulation on financial management of Trade Unions is promulgated.

Article 2. This Decision takes effect from the day on which it is signed and supersedes the Decision No. 169/QĐ-TLĐ dated January 09, 2013 of Vietnam General Confederation of Labor.

Article 3. Departments and units affiliated to Vietnam General Confederation of Labor and Trade Unions at any level, and public service agencies of Trade Unions are responsible for implementation of this Decision.

REGULATION

ON FINANCIAL MANAGEMENT OF TRADE UNIONS

(Promulgated together with Decision No. 269/QĐ-TLĐ dated March 07, 2014 of the General Confederation)

Chapter 1.

GENERAL REGULATIONS

Article 1. Scope

This Regulation deals with financial management of Trade Unions.

Article 2. Regulated subjects

Trade Unions at all level, agencies and public service agencies of Trade Unions.

Article 3. General rules for financial management of Trade Union.

1 - Trade Unions’ budget is the conditions for sustaining the exercise of rights and obligations of Trade Unions, sustaining the operation of the whole system of Trade Unions according to the Law on Trade Unions.

2-Trade Union shall manage and use Trade Unions’ budget in accordance with law and regulations of the General Confederation.

3- Trade Unions’ budget is managed in a democratic and transparent way with distribution of managerial positions associated with entitlements and responsibilities of Trade Unions at all levels.

Chapter 2.

REGULATIONS ON FINANCIAL MANAGEMENT

Article 4. Trade Unions’ revenues and expenditures

1- Trade Unions’ sources of revenues

Sources of revenues of Trade Unions are specified in Article 26 of the Law on Trade Unions 2012 and the Government's Decree No. 191/2013/NĐ-CP dated November 21, 2013 on financial management of Trade Unions, including:

- Revenue from membership fees in accordance with Regulation of Vietnam Trade Unions and instructions of Vietnam General Confederation of Labor.

- Revenue from attraction of funding for Trade Unions.

- Support from government budget.

- Other revenues from cultural, sports, and economic activities of Trade Unions; from projects, programs given by the State; from aid and sponsorship from Vietnamese and foreign entities; deposit interest at banks and State Treasuries (if any), revenue from liquidation and transfer of assets; revenue from recovery of improper expenditures from Trade Unions’ budget that have been declared and approved by competent authorities, etc.

2- Trade Unions’ expenditures.

Trade Unions’ expenditures must comply with Clause 2 Article 27 of the Law on Trade Unions and regulations of the General Confederation.

Article 5. Trade union financial management system

1- Superior unit: Vietnam General Confederation of Labor (hereinafter referred to as General Confederation).

2- Superior unit: Provincial Confederations of Labour, Central Trade Unions of industries, and equivalent agencies (hereinafter referred to as provincial Confederations of Labour and equivalent agencies).

3- Superior unit: Trade Unions directly superior to grassroots-level Trade Unions

4- Inferior unit: Grassroots-level Trade Unions, associations, public service agencies of Trade Unions.

Article 6. Division of powers Trade union financial management

1- Executive boards of grassroots-level Trade Unions shall perform the tasks pertaining to revenues, expenditures, and financial management within the powers granted by General Confederation; make budget estimates, implement budget estimates, make financial statements; disclose the budget estimates and statements of Trade Unions’ revenues and expenditures, and adhere to the regulations on expenditures by grassroots-level Trade Unions.

2- Executive boards of Trade Unions superior to grassroots-level Trade Unions shall perform the tasks pertaining to revenues, expenditures, and financial management within the powers granted by General Confederation; make budget estimates, implement budget estimates, make financial statements; disclose the budget estimates and financial statements; instruct inferior units to perform the tasks pertaining to revenues, expenditures, financial management of Trade Unions’ , and remit membership fees to superior Trade Unions; consider approving budget estimates and financial statements made by inferior units.

3- Executive boards of provincial Trade Unions and equivalent agencies shall perform the tasks pertaining to revenues, expenditures, and financial management within the powers granted by General Confederation; establish the rules for making budget estimates and providing funding according to budget estimates of inferior units in accordance with regulations of General Confederation; make budget estimates, implement budget estimates, and make financial statements; disclose the budget estimates and financial statements; instruct inferior units to perform the tasks pertaining to revenues, expenditures, financial management of Trade Unions’ , and remit membership fees to superior Trade Unions; consider approving budget estimates and financial statements made by inferior units.

4- The Board of Presidents of General Confederation shall direct and organize the performance of tasks pertaining to revenues, expenditures, and financial management of Vietnam’s Trade Unions; establish the rules for making, approving budget estimates and provide funding for Trade Unions every year; consider approving budget estimates and financial statements of inferior units; carry out inspections and instructs inferior units to perform their tasks pertaining to financial management of trade unions and remit membership fees to General Confederation; impose regulations and provide instructions on revenues, funding provision, budget allocation, and financial management of trade unions in accordance with Clause 2 Article 12 of the Government's Decree No. 191/2013/NĐ-CP on financial management of trade unions; aggregate, consider approving annual budget estimates and statements of Trade Unions’ revenues and expenditures.

5- Entitlements to decide the use of Trade Unions’ budget for financial investment, provision of charter capital, investment in infrastructural development, purchases of assets, granting loans, and taking loans:

a- The Board of Presidents of General Confederation is entitled to:

- Consider approving policies on financial investment (except for term deposits at banks) and provision of charter capital of more than VND 2 billion.

- Consider approving policies on investment in infrastructural development and purchases of assets from government budget via General Confederation and funding provided by General Confederation.

- Consider approving policies on using Trade Unions’ budget for granting loans to units of Trade Unions.

- Consider approving grant of loans of more than VND 2 billion to units of Trade Unions, (unless otherwise prescribed by Regulation on financial management of Trade Unions’ companies).

- Consider approving policies on investments of more than VND 2 billion in infrastructural development and purchases of assets or more from Trade Unions’ budget (including other sources decided by Trade Unions); authorize Executive boards of provincial Confederations of Labour and equivalent agencies to make investments in accordance with regulations of law on infrastructural development and bidding.

b- Executive boards of provincial Confederations of Labour and equivalent agencies are entitled to:

- Consider approving policies on use of Trade Unions’ budget to make financial investment, provision of charter capital of up to VND 2 billion for Trade Unions’ companies in accordance with regulations on financial management of Trade Unions’ companies.

- Consider approving grant of loans of up to VND 2 billion to affiliated units (unless otherwise prescribed by the Charter of a Trade Union’s company).

- Consider approving policies on investment of up to VND 2 billion in infrastructural development using Trade Union's budget. Make investments and bid for projects of investment using more than VND 2 billion from the unit’s budget after the policies are approved by General Confederation.

- Consider approving grant of loans of up to 2 billion to affiliated units with terms of up to 1 year.

Article 7. The Trade Unions’ fiscal year is from January 01 to December 31 of the calendar year.

Article 8. Estimates of revenues and expenditures of Trade Unions at all level shall be made every year. After estimates have been approved by the superior Trade Union, other Trade Unions and units shall implement them.

- Trade Unions’ revenues must be collected correctly, in full, and in a timely manner.

- The head of a funded unit shall decide the Trade Union’s expenditures in accordance with the regulations, standards, and limits imposed by the State and General Confederation. Trade Unions at all levels and units must not collect and spend money against regulations of the State and General Confederation.

- Trade Unions at all level must made their own financial provisions.

Article 9. Trade Unions’ revenues and expenditures, funding for social activities, funding for projects, etc. must be monitored and reflected in accounting books of the units and financial statements in a timely manner in accordance with Regulation on accounting applied to administrative units and instructions of General Confederation.

Accounting units of Trade Unions may open deposit accounts at banks or State Treasury to manage Trade Unions’ revenues and expenditures. The units with insignificant revenues and expenditures may use specialized accounts for management of revenues and expenditures.

Each accounting unit may establish only one cash fund. The cash fund must be strictly managed, inspected monthly and irregularly. The limit on maximum funding for regular operation must be specified in the regulations on spending and financial management of the unit.

In case a specialized accounting unit assists the grassroots-level Trade Union in management of the Trade Union’s revenues and expenditures, accountants of the Trade Union must enumerate documents as the basis for bookkeeping, making financial statements to serve inspection and audit of revenues and expenditures of the Trade Union of the unit.

Article 10. Annual budget estimates and financial statements of Trade Unions at any level must be reported to the Executive board and Inspection Committee at the same levels

Article 11. Deadline for reporting budget estimates and financial statements of Trade Unions

1- Trade Union’s budget estimate of the next year of provincial Confederations of Labour and equivalent agencies shall be reported to General Confederation by November 30. Trade Union’s financial statement of the previous year shall be reported to General Confederation by March 31 of the next year.

2- Provincial Confederations of Labour and equivalent agencies shall specify the deadline for inferior units to submit reports on budget estimate and financial statements so as to meet the deadline mentioned in this Article.

Article 12. Management and use of accrued Trade Union's budget

1- Accrued Trade Union's budget up to December 31 shall be transferred to the next year.

2- A Trade Union at any level may use accrued Trade Union's budget to make financial investment in accordance with law, provide charter capital for affiliated units in accordance with Regulation on financial management of Trade Unions’ companies; invest in infrastructural development, purchases and balance the necessary expenditures in the year, provided they do not exceed 50% of the accrued balance up to the end of the previous year (including the accrued balance from financial investment, charter capital provision, investment in infrastructural development) Accrued Trade Union's budget at the end of the previous year used for normal operation, infrastructural development, and purchases of assets in the fiscal year must be included in the budget estimate and approved by a superior Trade Union. The conversion of demand deposits into term deposits at a bank shall be decided by the depositor.

3- The use of accrued Trade Union's budget for provision of charter capital, investment in infrastructural development, and purchases of shares the decision of a competent authority shall be recorded as a decrease in accrued Trade Union's budget of the unit at the end of the fiscal year, and an increase in the corresponding capital source, monitored and declared in accordance with regulations on finance and bookkeeping of the State and regulations of General Confederation so as to ensure transparency in budget management.

Chapter 3.

MANAGEMENT OF TRADE UNIONS’ ASSETS

Article 13. Assets derived from contribution of Trade Union members and Trade Union's budget; assets of which the ownership is given to the Trade Union by the State, and other lawful sources are assets under the ownership of the Trade Union. General Confederation shall exercise the rights, fulfill the obligations to the Trade Unions’ ownership of assets in accordance with law, and allocate assets to other units.

Article 14. Trade Union’s assets at a unit must be managed and used in accordance with the Law on Trade Unions 2012; the Law on management and use of State-owned property No. 09/2008/QH12 dated June 31, 2008; the Government's Decree No. 52/2009/NĐ-CP dated June 03, 2009 on guidelines for the Law on management and use of State-owned property.

Article 15. Receipt and transfer of assets

1- When transferring the Trade Union’s assets to units other than Trade Unions under a decision of a competent authority, the unit that is authorized to use and manage such assets must obtain an approval from General Confederation.

2- Circulation of assets within a unit or among Trade Unions superior to grassroots-level Trade Unions, or among grassroots-level Trade Unions affiliated to provincial Confederations of Labour and equivalent agencies shall be decided by executive boards of the provincial Confederations of Labour and equivalent agencies after opinions are given by the transferor and the transferee.

3- Circulation of assets among provincial Confederations of Labour and equivalent agencies shall be decided by General Confederation after opinions are given by the transferor and the transferee.

Article 16. Responsibility for management of infrastructural development, asset repairs and asset purchase

Management of infrastructural development, asset repairs and asset purchase at Trade Unions must comply with procedures for investment, payment, financial statement of investment capital in accordance with regulations of law on investment in infrastructural development and bidding.

When a unit integrates its investment in infrastructural development and asset purchase in the financial statement of a superior Trade Union, a financial statement in investment in infrastructural development and asset purchase must be enclosed.

If an investment in infrastructural construction or repair is VND 200 million or more, it is required to have a budget estimate, design, and a report on budget estimate verification before commencement. When the construction is completed, it must be audited or its financial statement must be verified by a competent authority.

If the investment in a infrastructural construction or repair is from VND 50 million to below VND 200 million, it is required to have a design dossier, budget estimate, a report on budget estimate verification before commencement. A financial statement must be made after the construction is completed and inspected.

a- Entitlements to approve budget estimates, decide investment and asset purchase; Entitlements to use rented assets or assets under joint ownership

- Entitlements to approve budget estimates, decide investment in infrastructural development and asset purchase shall comply with Clause 5 Article 6 of this Regulation.

- General Confederation shall consider approving purchase of new motor vehicles and liquidation of motor vehicles of Trade Unions at other level, public service agencies and companies of Trade Unions (including the joint-stock companies whose controlling shares are held by Trade Unions)

- General Confederation shall consider approving polices on using rented assets and assets under joint ownership worth more than 2 billion (according to contracts) of public service agencies affiliated to Trade Unions at all levels.

- Executive boards of provincial Confederations of Labour and equivalent agencies shall consider approving polices on using rented assets and assets under joint ownership worth up to 2 billion (according to contracts) of public service agencies.

b- Entitlements to approve investment in infrastructural development and asset purchase of heads of public service agencies affiliated to General Confederation.

- Infrastructural development projects and purchase of fixed assets derived from Trade Unions budget shall be approved by General Confederation.

- Heads of public service agencies shall decide investment in infrastructural development projects and asset purchase of up to VND 500 million from its funding for professional development (except for purchase of motor vehicles).

- Liquidation of an asset shall be decided by the unit that decided its purchase.

Chapter 4.

TRADE UNION FINANCIAL MANAGEMENT APPARATUS

Article 17. Trade union financial management apparatus

1- General Confederation; Provincial Confederations of Labour and equivalent agencies are finance departments.

Finance departments of provincial Confederations of Labour shall play the role of both superior units and inferior units of provincial Confederations of Labour and equivalent agencies.

2- Executive Boards shall appoint full-time or part-time accountants of Trade Unions directly superior to grassroots-level Trade Unions.

3- Executive boards of grassroots-level Trade Unions shall appoint Trade Unions’ accountants.

4- Public service agencies of Trade Unions shall establish an accounting department or appoint accountants.

5- The head of the finance department or accounting department shall perform the duties and exercise the rights of a Chief accountant in accordance with regulations of law on accounting.

If an accounting unit does not have such positions, the persons appointed as full-time or part-time accountants shall perform the duties of the Chief accountant.

Article 18. Professional accountants of Trade Unions must have at least bachelor’s degrees in accounting - finance and conversant with Trade Union activities. Trade Union representatives who act as part-time accountants must be knowledgeable about accounting and have certificates of training in Trade Union accounting - finance issued by competent authorities.

Accountants must not concurrently hold the position of treasurers, warehouse keepers, or purchasers. Head of a unit must not appoint his/her family (parents, spouse, children) to be work as accountants, treasurers, warehouse keepers at the unit.

The Chief accountant or another person working as a Chief accountant, full-time and part-time treasurers of Trade Unions shall be entitled to responsibility allowance according to regulations of the State and General Confederation.

Article 19. An accounting department must be held when a new unit is established. When a unit is dissolved, merged, or divided, its head, chief of the finance department, accounting department, or Chief accountant must complete the financial statement before they are dispatched to other units. When the account holder is changed, the accountant and treasurer of the Trade Union must finish job handover. The new account holder is in charge of accounting and financial management from the day on which job handover is finished.

When the account holder of the accounting unit of the Trade Union is changed, the Inspection Committee of the Trade Union at the same level or a superior level may inspect the finance and assets of the fiscal year preceding the year in which the change occurs.

Article 20. Duties of finance departments of Trade Unions

1- Finance department of General Confederation:

a- Consider applying finance and accounting practice of the State to formulate regulations, provide instructions and inspect adherence to regulations on budget management, business operation and investment in infrastructural development of Trade Unions.

b) Perform the duties a superior unit; make budget estimates, financial statements, and management the finance of General Confederation; instruct inferior Trade Unions to make budget estimates and financial statements, and manage their finance; inspect the payment of membership fees by organizations and companies, collect fee arrears and propose penalties for violations in accordance with regulations of law and General Confederation.

c- Provide consultancy on performance of duties of owners of Trade Unions’ assets to make investment in business operation, investors in infrastructural development of Trade Unions, and managers of grant aid of Trade Unions in accordance with regulations of law.

d- Provide training in financial management and accounting for inferior Trade Unions.

2- Finance departments of provincial Confederations of Labour and equivalent agencies:

a- Collect membership fees within the powers granted by General Confederation.

b- Provide instructions for inferior Trade Unions and affiliated units on making annual budget estimates; Consider approving annual budget estimates and financial statements, then submit them to General Confederation for approval.

c- Play the role of a Financial Director in assisting the executive board in directing operations of Trade Unions via financial works.

d- Provide instructions on and inspect financial management by inferior Trade Unions and affiliated units.

dd- Provide consultancy for the executive board in instructing inferior Trade Unions to do business.

g- Provide training for finance officials of inferior Trade Unions and affiliated units.

h- Do bookkeeping, manage the revenues, expenditures, and assets of superior Trade Unions; collect, spend money, and monitor expenditures on the operation of the inferior units without grassroots-level Trade Union that have paid membership fees in accordance with regulations of General Confederation.

3- Accountants of Trade Unions directly superior to grassroots-level Trade Unions:

- Instruct grassroots-level Trade Unions and affiliated units to make annual budget estimates; consider approving budget estimates and financial statements of inferior Trade Unions, then submit summary reports to provincial Confederations of Labour and equivalent agencies for approval.

- Collect membership fees within the powers granted by provincial Confederations of Labour and equivalent agencies; make payments, monitor expenditures on the operation of the inferior units without grassroots-level Trade Union that have paid membership fees in accordance with regulations of General Confederation.

- Do bookkeeping and keep statistics of accounting units of Trade Unions directly superior to grassroots-level Trade Unions.

- Provide training for their finance officials and finance officials of inferior units.

4- Accountants of a grassroots-level Trade Union:

- Make annual budget estimates and send reports to the executive board of the grassroots-level Trade Union. The executive board shall submit such reports to superior units for approval.

- Implement the budget estimates, do bookkeeping, produce statistics, and submit financial statements to superior units for approval. Facilitate the inspections of Trade Union’s revenues and expenditures.

Chapter 5.

IMPLEMENTATION

Article 21. Inspection and audit

1- Trade Union financial management agencies and units of Trade Unions, within their competence, shall carry out internal inspection of their revenues, expenditures, financial management, and those of inferior units. Make financial disclosure statements in accordance with regulations of law and General Confederation.

2-Carry out inspections or cooperate with a finance, tax, or labor inspection authority in carrying out inspections of payment of membership fees of the organizations and companies under their management; collect fee arrears, request competent authorities to impose penalties for violations pertaining to payment of Trade Union membership fee, or bring such cases to court.

3- Implement inspection and audit plans of Trade Unions and competent authorities in accordance with regulations of law, implement the conclusions after inspection and audit; impose penalties upon entities that commit violations (if any).

Article 22. Commendations and penalties

Any entity that has achievements in Trade Union financial management shall be given commendations in accordance with regulations of General Confederation. Any entity that commits violations shall incur penalties depending on the seriousness of such violations in accordance with regulations of law and General Confederation.