What is Full version No 106 / 1985 Coll.?

Full version No. 106 / 1985 Coll., Decree of the Government of the Czechoslovak Socialist Republic on the Financial Management of Production Units and Enterprises (full version as follows from amendments and additions made by the Government Decree of 24 October 1985 No. 100 / 1985 Coll.) — Decree of the Government of the Czechoslovak Socialist Republic on the financial management of production units and enterprises (as shown in the complete version by the amendments made by the Government Decree of 24 October 1985 No 100 / 1985 Coll.).

When it became Full version No 106 / 1985 Coll. effectiveness?

Full version No 106 / 1985 Coll. became effective date not available.

Is Full version No 106 / 1985 Coll. still valid?

Yes, Full version No 106 / 1985 Coll. is still valid and effective.

Full version No 106 / 1985 Coll. - Decree of the Government of the Czechosl...

106

PRESIDENT OF THE GOVERNMENT

Czechoslovak Socialist Republic

Announces

the full text of the Decree of the Government of the Czechoslovak Socialist Republic of 13 November 1980 No 161 / 1980 Coll., on the financial management of production units and enterprises, as follows from the amendments and additions made by the Decree of the Government of 24 October 1985 No 100 / 1985 Coll.

GOVERNMENT REGULATION

Czechoslovak Socialist Republic

on the financial management of production units and undertakings

The Government of the Czechoslovak Socialist Republic mandates for the implementation of the Economic Code No. 109 / 1964 Coll., as amended (full version No. 45 / 1983 Coll.), Act No. 53 / 1966 Coll., on the Protection of the Agricultural Soil Fund, as amended (full version No. 124 / 1976 Coll.), Act No. 134 / 1970 Coll., on the State Budget Rules of the Czechoslovak Federation and on the Principles for the Management of Budgetary Funds of the State Budget of the Federation and Republics (Budgetary Rules), and Act No. 161 / 1982 Coll., on Deductions to the State Budget (hereinafter referred to as "the Law on Defictions'):

Preliminary provisions

§ 1

Financial management is part of the system of planned management of the national economy. The principles of financial management are based on the active function of the State budget and the financial plan, the status of the production unit as a basic element of the management, the effectiveness and quality of work at the stage of the design and implementation of the plan, and the conditions for implementing the principles of chozrasčet, which is the basic method of operating the production units and enterprises.

§ 2

(1) This Regulation regulates the financial management of production units and undertakings and the related tasks of central government ("central authorities') and national committees.

(2) For the purposes of this Regulation, the production unit shall be:

(a) in the centralised industrial and construction production, all forms of production economic union1), except for a branch undertaking without associated national enterprises or special-purpose organisations;

(b) in other sectors, similar forms of organisation of centrally managed economic activity. 1)

(3) For the purposes of this Regulation, an undertaking shall mean a state economic organisation within a production unit, a group enterprise and a group special purpose organisation, a state economic organisation directly managed by a central authority or a national committee, as well as an organisation of external trade.

§ 3

(1) The provisions of Part One apply to the organisations and bodies referred to in Article 2 (1), with the exception of organisations and bodies whose financial management is governed by the provisions of Part Two to 4.

(2) The provisions of Part Two apply to production units and undertakings which are liable to agricultural tax on profits. 2)

(3) The provisions of Part Three shall apply to undertakings whose relationship to the State budget is determined by a financing plan.

(4) The fourth part applies to undertakings governed by national committees and to national committees as economic management bodies.

(5) The provisions of Part Five apply to the organisations and authorities referred to in Article 2 (1).

(6) The method of financial management of the organisation shall be governed by the provisions applicable to its main activity, unless otherwise specified. In the cases at issue, the competent Ministry of Finance shall determine which part applies to the organisation concerned.

ČÁST PRVNÍ

HLAVA 1

FINANCIAL MANAGEMENT OF THE INDUSTRY AND UNDERTAKINGS INCLUDED IN IT

§ 4

Financial resources of production units and enterprises incorporated therein

The basic financial resources of the production units and of the undertakings incorporated therein are the profits recognised in duly kept accounts (profit) and depreciation of basic resources (3) (depreciation).

§ 5

Use of profit of the production unit

(1) The production unit uses profit in the following order:

(a) the contributions and payments of taxes by the production unit to the State budget, the national committee budget and the State funds;

(b) allocations to the turnover fund;

(c) allocations to the IF;

(d) allocations to the technical development fund;

(e) allocations to the reserve fund;

(f) allocations to the cultural and social needs fund and to the remuneration fund;

(g) for other purposes laid down by specific provisions;

(h) to the additional levy to the central authority.

(2) The profit not distributed in accordance with paragraph 1, plus, where appropriate, additional resources for distribution, shall be transferred by the production unit to its reserve fund at the end of the year.

§ 6

Use of depreciation of the production unit

The production unit uses depreciation to finance its investment needs and to pay to a superior central authority.

§ 7

Production unit levies and method of implementation

(1) The production unit shall:

(a) tax payments and payments;

(b) additional contributions for reallocation, unless otherwise provided for in Article 69 (3).

(2) The amount of the additional contributions for the reallocation of funds and the deadlines for their implementation shall be determined by the central supervisor.

(3) Additional additional levies may also be imposed on the production unit. Paragraph 12 (2) and (3) shall apply to their implementation.

Production unit funds

§ 8

(1) The production unit establishes:

(a) the investment fund;

(b) a technical development fund, save as otherwise provided in the Specific Regulation (5);

(c) the remuneration fund;

(d) a fund of cultural and social needs;

(e) the reserve fund;

(f) the physical stimulation fund of exports.

(2) The production unit also establishes a turnover fund where the financing of the circulation funds is centralised in whole or in part at its level.

(3) An economic unit within the jurisdiction of which minerals are extracted establishes a fund of geological works.

(4) The arrangements for the creation and use of the funds referred to in points (a) to (d) of paragraph 1, paragraphs 2 and 3 of this Article are laid down in specific legislation.6) The methods for the creation and use of the Export Physical Stimulation Fund are laid down by the Federal Ministry of Finance.

(5) The scope of the creation and use of the funds referred to in paragraph 1 (a) to (c) and, where appropriate, in paragraph 2, is governed by the status of the production unit. 7)

(6) The production unit may set up additional special-purpose funds (e.g. risk fund, damage fund and compensation fund) with the agreement of the central authority supervisor issued in agreement with the relevant Ministry of Finance. The arrangements for the creation and use of such funds shall be determined by the central supervisor in agreement with the relevant Ministry of Finance.

§ 9

Reserve of the production unit

(1) The reserve fund of the production unit is composed of:

(a) an allocation of profits from the production unit;

(b) transfer of undistributed profits pursuant to § 5 and 10;

(c) the allocation from the export material stimulus fund;

(d) transfer from other sources provided for in specific provisions.

(2) Within the framework of its financial plan, the mandated central authority shall determine the amount of the allocation to the reserve of the production unit and its maximum balance. This limit must not exceed the threshold established by the Government of the Czechoslovak Socialist Republic for production units controlled by federal authorities and governments of the Republics for production units controlled by the authorities of the Republics. The amount exceeding the limit shall be transferred to the sectoral reserve. An undistributed profit of the undertakings incorporated into the production unit transferred to the following year (Section 10 (3)) shall be included in the set limit of the Fund's maximum balance.

(3) The reserve fund of the production unit is used

(a) to meet the needs referred to in Articles 5 (1) and 10 (1) and for the purposes laid down in the special regulation;

(b) to cover losses or, where appropriate, higher costs or lower revenues incurred by undertakings under the decisions of the production unit;

(c) to cover losses and risks arising from export, unless another special-purpose fund is designated to cover them;

(d) to cover expenditure in socialist competition pursuant to a special regulation, 9)

(e) to cover losses on the physical disposal of unused stocks and on the sale of unused stocks, unless another special-purpose fund is designated to cover them;

(f) to cover costs exceeding the planned costs of preparing and verifying new products and technologies;

(g) to cover the risks arising from the research and development activities of the research and development base organisations incorporated into the production unit;

(h) to take over the bank loan guarantee;

(i) for other purposes determined on a proposal from the central authority supervisor to the competent Ministry of Finance; The Ministry of Finance of the Czech Socialist Republic and the Ministry of Finance of the Slovak Socialist Republic proceed in agreement with the Federal Ministry of Finance.

(4) The resources of the reserve fund of the production unit may also be used to provide temporary financial assistance to undertakings incorporated in it to bridge the fluctuations in their financial management (both operational and investment) for a maximum period of one year from the granting of such assistance.

(5) The funds of the reserve fund of the production unit shall be kept in a separate account with the Czechoslovak State Bank.

Use of profit and depreciation of the company

§ 10

(1) The company uses profit in the following order:

(a) the contributions and payments by the undertaking to the State budget, the national committee budget and the State funds;

(b) to the production unit;

(c) allocations to the turnover fund;

(d) allocations to the IF;

(e) allocations to the technical development fund;

(f) the allocation to the fund of remuneration on the basis of the approval of the superior central authority (§ 23) and the allocation to the fund of cultural and social needs;

(g) for other purposes laid down by specific provisions, with the agreement of the production unit.

(2) If the profit is not sufficient to meet the needs referred to in points (b) to (g) of paragraph 1, the firm will cover those needs to the extent authorised by the production unit.

(3) A profit which has not been distributed in accordance with paragraph 1, plus, where appropriate, additional resources for distribution, shall be transferred by the undertaking at the end of the year to the following year or to the reserve fund of the production unit, at the rate fixed in advance by the production unit.

§ 11

The company uses depreciation at the level set by the production unit to finance its investment needs and to pay off the production unit.

Remuneration and method of implementation

§ 12

(1) The company makes tax contributions and payments.

(2) Additional deduction4) shall be implemented, except as otherwise provided in the specific regulation, in the accounts of the State Budget set up with the Czechoslovak State Bank within 15 days of delivery of the measure to the authority imposing the levy.

(3) The enforcement of the decision relating to the additional levies referred to in paragraph 2 shall apply mutatis mutandis to the rules on proceedings relating to taxes and charges. 10)

§ 13

(1) According to the decision of the production unit, the undertaking shall:

(a) contributions from profits and depreciation to centralise funds, unless otherwise provided for in Section 69 (3);

(b) the contribution of the production unit to the cost of its management activities, by a fixed amount fixed by the undertaking to the production unit in the financial plan;

(c) contributions to the technical development fund, the geological work fund and, where appropriate, other special-purpose funds of the production unit. However, the contribution to the technical development fund cannot be imposed on the organisation of the research and development base.

(2) The amount of the levies referred to in paragraph 1 and the deadlines for their implementation shall be determined by the production unit.

§ 14

Enterprise funds

(1) The company establishes:

(a) the reverse fund, unless otherwise specified in the Specific Regulation (11);

(b) the investment fund;

(c) a technical development fund, except as otherwise provided in the Specific Regulation (5);

(d) the remuneration fund;

(e) a fund of cultural and social needs.

(2) The arrangements for the establishment and use of the Funds referred to in paragraph 1 are laid down in specific provisions. 12)

(3) In determining the extent to which the funds referred to in points (a) to (d) of paragraph 1 are to be created and used at the level of the undertaking, the application of Article 8 (5) shall be treated mutatis mutandis.

(4) The company may, with the agreement of the central authority supervisor issued in agreement with the relevant Ministry of Finance, set up additional special-purpose funds (e.g. a risk fund). The arrangements for the creation and use of such funds shall be determined by the central supervisor in agreement with the relevant Ministry of Finance.

§ 15

Fee for the withdrawal of agricultural land from agricultural production

(1) The levy on the temporary withdrawal of agricultural land (13) is paid on the profits or, where appropriate, with the approval of the relevant Ministry of Finance of the Damage and Compensation Fund.

(2) Special Regulation (14) sets out the sources from which the levy is to be paid on the permanent withdrawal of agricultural land and its temporary withdrawal for construction site facilities.

§ 16

Evaluation of the results of economic activity

(1) The results of economic activity shall be assessed for each year; the principles established by the Government of the Czechoslovak Socialist Republic are followed.

(2) The annual accounts and the distribution of profits are approved as part of the assessment of the results of the economic activity.

HLAVA 2

FINANCIAL MANAGEMENT OF UNDERTAKINGS DIRECTLY MANAGED BY THE INSTITUTIONS

§ 17

(1) The company constitutes and uses profit and depreciation mutatis mutandis in accordance with Sections 4, 5 (1) and 6.

(2) A profit which has not been distributed by analogy in accordance with Paragraph 5 (1), plus, where appropriate, additional resources to be distributed, shall be transferred by the firm at the end of the year at the amount fixed in advance by the superior central authority to its reserve fund (Paragraph 19 (3)) or transferred to the sectoral reserve fund.

§ 18

(1) The undertaking shall:

(a) tax payments and payments;

(b) additional contributions pursuant to Article 12 (2) and (3),

(c) the levy on the withdrawal of agricultural land from agricultural production pursuant to Article 15.

(2) According to the decision of the central authority supervisor, the undertaking shall:

(a) additional contributions to reallocation, unless otherwise provided for in Paragraph 69 (3);

(b) contributions to the technical development department fund and, where appropriate, to other special-purpose funds. However, the contribution to the technical development department fund cannot be imposed on the organisation of a research and development base.

The amount of such contributions and the time limits for their implementation shall be determined by the central supervisor.

§ 19

(1) The company establishes:

(a) the reverse fund, unless otherwise specified in the Specific Regulation (11);

(b) the investment fund;

(c) a technical development fund, except as otherwise provided in the Specific Regulation (5);

(d) the remuneration fund;

(e) a fund of cultural and social needs.

(2) The arrangements for the establishment and use of the Funds referred to in paragraph 1 are laid down in specific provisions. 12)

(3) Research and development base organisations, professional enterprises without associated national enterprises, or special-purpose organisations, and enterprises setting up an export material stimulus fund, also establish a reserve fund; other undertakings, with the exception of foreign trade organisations, may set up a reserve fund as decided by the superior central authority.

(4) An undertaking (with the exception referred to in Paragraph 21) may establish a fund of material export stimulus. The methods of creating and applying this fund shall be laid down by the Federal Ministry of Finance.

(5) In agreement with the relevant Ministry of Finance, the firm may set up additional special-purpose funds with the agreement of the central authority supervisor. The arrangements for the creation and use of such funds shall be determined by the central supervisor in agreement with the relevant Ministry of Finance.

§ 19a

Reserve fund of the enterprise

(1) The holding's reserve fund shall be composed of:

(a) a profit allocation, the maximum amount of which shall be determined by the superior central authority within the framework of its financial plan;

(b) transfer of undistributed profits pursuant to Article 17 (2);

(c) the allocation from the export material stimulus fund;

(d) transfer from other sources provided for in specific provisions.

(2) The reserve fund of an undertaking is used mutatis mutandis in accordance with Article 9 (3) (a), (c), (e), (f) and (i); However, it is not used for the purposes laid down in a specific regulation. 8)

(3) The limit of the maximum balance of the company's reserve fund shall be determined by the central supervisor. The amount exceeding the limit shall be transferred to the sectoral reserve at the end of the year.

(4) The funds of the company's reserve fund shall be kept in the current account with the Czechoslovak State Bank.

§ 20

Research and development base organisation reserve fund

(1) The organisation of the research and development base establishes a reserve fund to cover the exceptional economic risks arising from research and development activities.

(2) The arrangements for the creation and use of the reserve fund shall be determined by the central supervisor, in agreement with the State Commission for Scientific, Technical and Investment Development and the Federal Ministry of Finance, and in agreement with the Czech Commission for Scientific, Technical and Investment Development, or the Slovak Commission for Scientific, Technical and Investment Development and the Ministry of Finance of the Czech Socialist Republic or the Ministry of Finance of the Slovak Socialist Republic.

§ 21

The Foreign Trade Organisation shall establish an export material stimulus fund and a risk fund. The arrangements for the creation and use of these funds and any derogations in the financial management of foreign trade organisations shall be determined by the Federal Ministry of Finance and the Federal Ministry of Foreign Trade.

§ 22

Paragraph 16 applies to the assessment of the results of economic activity.

HLAVA 3

ACTIVITIES OF THE CURRENT AUTHORITIES IN THE FINANCIAL ECONOMIC ECONOMIC ECONOMIC AND ENTERPRISES

§ 23

The central authorities shall, as part of their management activities, redistribute resources and resources between the production units and directly managed undertakings, set up departmental special-purpose funds and approve the scope of the creation and use of funds at the level of the production units and of undertakings incorporated therein, within the framework laid down by specific regulations, 15) according to the real conditions of centralisation of management functions.

§ 24

(1) The Central Authority shall establish:

(a) the departmental reserve;

(b) the technical development department fund;

(c) a sectoral investment fund to redistribute depreciation.

(2) The development and use of the technical development department fund are regulated by a specific regulation. 5)

(3) The central authority may, with the approval of the competent Ministry of Finance, set up additional special-purpose funds. The arrangements for the creation and use of these funds shall be determined by the Central Authority in agreement with the competent Ministry of Finance.

§ 25

Residential reserve

(1) The sectoral reserve shall be composed of:

(a) centralisation of excess balances of the reserves of production units and directly managed undertakings;

(b) the allocation of part of the profit centralised with the additional contributions of directly managed undertakings up to the amount specified in the financial plan of the central authority;

(c) transfer of undistributed profits by directly managed undertakings pursuant to Paragraph 17 (2);

(d) the penalties paid pursuant to Article 72 (2).

(2) The Ministry Reserve is used for production units and directly controlled enterprises by analogy in accordance with § 9.

(3) The funds of the departmental reserve fund are held in a separate account with the Czechoslovak State Bank.

§ 26 - zrušen

§ 27

The financial plan of the central authority for a five-year period shall set a limit on the maximum balance of the departmental reserve. The excess balance shall be entered in the relevant State budget. The balance of the reserves of directly managed enterprises (§ 19a) and the profit balance centralised in the branch profit allocation account transferred to the following year (§ 29 (3)) shall be included in the set limit of the Fund's maximum balance.

Citation	Full version No. 106 / 1985 Coll., Decree of the Government of the Czechoslovak Socialist Republic on the Financial Management of Production Units and Enterprises (full version as follows from amendments and additions made by the Government Decree of 24 October 1985 No. 100 / 1985 Coll.)
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	09.12.1985
Effective from	-
Effective until	-
Status	Valid

Full version No 106 / 1985 Coll.

Decree of the Government of the Czechoslovak Socialist Republic on the financial management of production units and enterprises (as shown in the complete version by the amendments made by the Government Decree of 24 October 1985 No 100 / 1985 Coll.)

Contents

§ 1

§ 2

§ 3