The Project Management Unit (PMU) is entitled to decide on the total amount of additional income in the year for employees and the PMU director to pay income according to the unit's internal spending regulations.

Ms. Nguyen Thi Kim Phuong (in Ho Chi Minh City) works at the Management Board of Construction Investment in Phu Nhuan District, Ho Chi Minh City (a public service unit –that belongs to PMU Group II). In order to properly implement the financial regime on management and use of project management costs, Ms. Phuong would like to request authorities to answer problems when implementing the Circular No. 72/2017 / TT-BTC dated 17 July 2017 of the Ministry of Finance as follows:

- In terms of additional income: The payment of income increases for officials in the unit to be paid at any time of the year (by month, quarter, or year-end) or by month, quarter, is this additional income paid in advance?, ifyes, what is the advance rate?

Can additional income be spent on regular expenditures or funds? If spent from the funds, which fund is spent? According to Article 19 of this Circular, the use of financial results in the year does not mention the payment of additional income.

- The establishment of internal spending regulations in accordance with the Circular No. 72/2017 / TT-BTC is after obtaining written approval from the superior management agency (Item 5, Article 16). So, when is the internal spending regulation established since internal spending regulations are discussed during the annual officials' meeting that the deadline is December 31?

- According to the provisions in Section 17 of the Form 05 / DT-QLDA, what is the level of determining the provision rate? Is this provision to make fund deductions and make estimates?

- Shall PMU of Group II comply with the Decree No. 16/2015 / ND-CP dated February 14, 2015 or the Decree No. 141/2016 / ND-CP dated October 10, 2016 of the Government?

- The above Circular takes effect from September 15, 2017, the estimate has been approved in 2017 according to the Circular No. 05/2014 / TT-BTC dated January 6, 2014 of the Ministry of Finance. So, do I need to make an adjustment estimate to conform to this Circular?

Regarding this issue, the Ministry of Finance has the following opinions:

Be decided to increase total income payment

PMU Group II implements annual budget estimation and settlement according to the provisions of Section 2, Chapter II of the Circular No. 72/2017 / TT-BTC dated July 17, 2017 of the Ministryof Finance on management, using revenues from project management activities of investors, accordingly:

In principle, the implementation of additional income payment is done in accordance with Clause 2, Article 18 of the Circular No. 72/2017 / TT-BTC dated July 17, 2017 and the use of funds, including additional funds Income according to internal spending regulations in Clause 2, Article 20 of the Circular No. 72/2017 / TT-BTC dated July 17, 2017.

At the same time, in Article 19 of the Circular No. 72/2017 / TT-BTC dated July 17, 2017, regulating the use of financial results in the year, according to the annual regulations after covering expenses fees, taxes and other payments according to regulations, if there is a larger revenue gap than regular expenses, the PMU is allowed to set up specific funds according to the prescribed deduction level, thereby stipulating the specific deduction level to income supplement fund.

Following the above regulations, depending on the financial performance of the year, the PMU is allowed to decide the total amount of additional income in the year for the employees and the PMU Director to pay income according to the internal spending regulations of units.

Accordingly, spending additional income for employees in the year from supplementary income fund. The payment time will be decided by the PMU depending on the financial performance of the year and the internal spending regulations of the unit, which can be applied in accordance with Article 13 (Regulations on the use of saved funds.) of the Circular No. 72/2017 / TT-BTC dated July 17, 2017 of the Ministry of Finance.

Internal spending must be approved by the higher level agency

Clause 5 Article 16 of the Circular No. 72/2017 / TT-BTC dated July 17, 2017 has stipulated: “5. The PMU develops and approves internal spending regulations after obtaining written approval from the higher level management agency. "

According to the above regulations, the PMU builds and approves the internal spending regulations after obtaining written approval from the superior management agency. In case the unit belongs to the target group of the Group II, the internal spending regulations must report to the level management agency on the Minister, the head of the central agency, the Chairman of the provincial and district People's Committee. There is a written approval before issuing the regulation.

The internal spending regulations must be approved by the higher level management agency before promulgating the regulation, which is the basis for the PMU to manage and implement internal expenditures in the years, so the internal spending regulations are built from the time after the higher level management agency decides to establish under the provisions of Clause 7, Article 1 of the Decree No. 42/2017 / ND-CP dated April 5, 2017 of the Government.

In case the internal spending regulations have been approved by the higher level management agency, it is necessary to amend it accordingly, after the regulation is discussed in the meeting of officials and be agreed to submit to the management agency on approving the adjustment.

No requirements  on making estimation for  funds

In Article 21, the Circular No. 72/2017 / TT-BTC dated July 17, 2017 has regulated:Annually, based on the functions and tasks assigned by the competent authority, the tasks of the plan year and the payment regime of current financial targets; based on the results of service activities, the financial situation of the previous year; the PMU makes revenue and expenditure estimates for the five years plan according to the Form: 01 (i) / DT-QLDA, 02 / DT-QLDA, 03 / DT-QLDA, 05 / DT-QLDA and sends to the immediate higher level management agency ( the agency deciding on the establishment or agency is authorized by the agency deciding on the establishment.

Determining the provision ratio in Section 17 of the Form No. 05 / DT-QLDA, the PMU must base on the functions and tasks assigned by the competent authority, the tasks of the plan year, the current financial spending regime and the results of service activities, the financial situation of the previous year's financial revenues and expenditures to determine the appropriate rate, without specifying a specific level. This level of provision is used by the PMU in case the expenditure items of the 16 items of the regular expenditure at Form 05 / DT-QLDA are higher than the approved estimates.

Every year, the PMU is allowed to use to extract and  set up the funds in the order specified in Article 19 of the Circular No. 72/2017 / TT-BTC dated July 17, 2017 after covering expenses, paying taxes and paying other regulations, the difference in provision is greater than regular expenditure (if any). Therefore, it is not necessary to make estimates for funds.

Adjustment of revenues and expenditures

According to Article 4 of the Circular No. 72/2017 / TT-BTC dated July 17, 2017 of the Ministry of Finance: "2. Group II: Specialized construction investment project management units, regional construction investment management units established by ministers, heads of central agencies, presidents of provincial and district-level People's Committees according to the provisions of Clause 7 Article 1 of the Decree No. 42/2017 / ND-CP dated April 5, 2017 of the Government.

The specialized PMU and PMU of the region will develop a financial autonomy plan to ensure regular expenditures in accordance with the actual plans and conditions of the units, report to the decision makers to approve according to the regulations at the Decree No. 16/2015 / ND-CP dated February 14, 2015 of the Government regulating the autonomy mechanism of public non-business units; the Decree No. 141/2016 / ND-CP dated October 10, 2016 of the Government regulates the autonomy mechanism of public non-business units in the field of economic and other economic careers ”.

Therefore, Ms. Phuong is requested to base on the above regulations to implement.

In Article 25 of the Circular 72/2017 / TT-BTC dated July 17, 2017 of the Ministry of Finance regulating the management and use of revenues from project management activities of investors stipulated: “This Circular takes effect from September 15, 2017 and replaces the Circular No. 05/2014 / TT-BTC dated January 6, 2014 of the Ministry of Finance.

Therefore, the adjustment of revenues and expenditures is stipulated in the Circular No. 72/2017 / TT-BTC dated July 17, 2017 proposing the units to implement since September 15, 2017.