Decree of the Government of the Czechoslovak Socialist Republic No. 151 / 1975 Coll.

Q: Is Decree of the Government of the Czechoslovak Socialist Republic No. 151 / 1975 Coll. still valid?

Yes, Decree of the Government of the Czechoslovak Socialist Republic No. 151 / 1975 Coll. is still valid and effective.

151

GOVERNMENT REGULATION

Czechoslovak Socialist Republic

of 4 December 1975

on the financial management of state economic and certain other socialist organisations

The Government of the Czechoslovak Socialist Republic mandates for the implementation of the Economic Code No. 109 / 1964 Coll., as amended (full version No. 37 / 1971 Coll.), Act No. 53 / 1966 Coll., on the Protection of the Agricultural Soil Fund, Act No. 134 / 1970 Coll., on the Rules of the State Budget of the Czechoslovak Federation and on the Principles of the Management of Budgetary Funds of the State Budget of the Federation and Republics (Budget Rules), and Act No. 111 / 1971 Coll., on Deals to the State Budget and Social Security Contribution:

Preliminary provisions

§ 1

Financial management is part of the system of planned management of the national economy. Financial management principles are based on the active function of the financial plan, affecting the efficiency of the development of the national economy at the stage of the design and implementation of the plan, creating conditions for the consistency of material and financial processes and for increasing material interest in good management results.

§ 2

(1) This Regulation provides for the financial management of state economic organisations, foreign trade organisations, with the exception of cooperative foreign trade undertakings ("foreign trade organisation '), the financial management of central government bodies of the federations and Republics (" central authorities') and national committees as economic management bodies.

(2) The provisions of Part One shall apply to the organisations and authorities referred to in paragraph 1 with the exception of organisations and bodies whose financial management is governed by the provisions of Part Two to Part Four.

(3) The provisions of Part Two apply to state economic organisations which are liable to agricultural tax on profits. 1)

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

(5) The provisions of Part Four apply to state economic organisations governed by national committees as economic management bodies.

(6) The provisions of Part Five apply to central authorities as economic management bodies.

(7) Part Six applies to the organisations and authorities referred to in paragraph 1.

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

§ 3

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

(a) in industry and construction, a branch undertaking with associated national undertakings, or, where appropriate, special-purpose organisations and trust, consisting of the Directorate-General for Trust and its subordinate national undertakings and special-purpose organisations;

(b) in other sectors of similar form of organisation of centrally managed economic activity (2)

(2) For the purposes of this Regulation, the Directorate-General for Business Trust and similar bodies of the production unit within the meaning of paragraph 1 (b) shall be the Directorate-General for Business Trust. The provisions on Directorates-General shall apply mutatis mutandis to a branch undertaking with associated national undertakings and special purpose vehicles as regards their management activities.

(3) For the purposes of this Regulation, an undertaking shall mean a state economic organisation subordinate to the Directorate-General or directly to a central authority (except for a group) or to a national committee, a state economic organisation associated with a branch undertaking, as well as an organisation of foreign trade. The provisions on undertakings shall apply mutatis mutandis to the Directorates-General as regards their business activity.

(4) The financial management of the group, the group companies and the group special-purpose organisations is regulated in Sections 29 to 31.

ČÁST PRVNÍ

INDUSTRY, CONSTRUCTION AND TRADE

HLAVA 1

FINANCIAL MANAGEMENT OF ENTERPRISES

§ 4

Financial resources of enterprises

(1) Undertakings create financial resources from which part is paid in the form of contributions and taxes for the needs of the company, part is left for the needs of the enterprises.

(2) The basic financial resources of enterprises are profitable 3) and depreciation of basic funding.4)

§ 5

Use of profit

(1) Undertakings are required to use the profits with the exceptions set out in paragraphs 2 and 3 of Paragraph 37 in the following order:

(a) to cover contributions and taxes to the State budget, to the national committee budget and to the State funds;

(b) the allocation of material interest funds (Sections 12 to 14);

(c) allocations to other funds (Sections 15 to 18 and 11 (3));

(d) the contributions of the superior authority;

(e) with the agreement of the superior authority for other purposes laid down under the legislation.

(2) If the profit generated is not sufficient to cover the allocations, contributions to the supervisory authorities, where appropriate, for the purposes [paragraph 1 (b) to (e)] within each group, (5) the undertakings shall cover these requirements in accordance with the legislation to the extent approved by the supervisory authority.

§ 6

Application of depreciation of basic funds

Companies use depreciation of basic funds (hereinafter referred to as depreciation) to allocate to the construction fund and to levy on the redistribution of funds.

Company contributions and how they are implemented

§ 7

(1) Undertakings shall:

(a) taxes and tax payments pursuant to special regulations, 6)

(b) additional contributions;

(c) contributions to the Directorate-General and, where appropriate, to the central body (Article 8 (1) (b));

(d) the levy on the withdrawal of agricultural land from agricultural production (Section 10).

(2) Undertakings subordinate to the Directorate-General shall contribute to the Directorate-General's cost of its activities a fixed amount as determined by the Directorate-General in the financing plan.

§ 8

(1) The competent authority may impose the following charges directly on subordinate undertakings:

(a) the additional contributions for the reallocation of appropriations, with the exception of contributions from depreciation of research and development base organisations, up to the amount set out in Article 79 (4) (a);

(b) contributions to the technical development (sectoral) fund, to the geological work fund, to the damage and compensation fund and, where applicable, to other sectoral (sectoral) funds (Sections 23 (2) and 33 (1)). However, contributions to the technical development fund may not be made to research and development organisations.

(2) Additional levies to reallocate funds (7)

(a) undertakings subordinate to the Directorate-General at the level and time limits set by the Directorate-General;

(b) undertakings directly subordinate to a central authority at the level and time limits set by the central authority.

(3) The amount and time limits of contributions referred to in paragraph 1 (b) shall be determined by the superior authority.

§ 9

(1) Additional charges

(a) for the recovery of funds received by the organisation in breach of price regulations or in connection with price changes, 8)

(b) to drain part of the profits, unless a plant for the protection of workers is installed or properly operated, or if the plant for the organisation does not comply with the rules on safety of work or health, 9)

(c) to withhold profits for products of insufficient quality or technically obsolete, 10)

(d) for exceeding the mandatory wage limit paid by the remuneration fund, 11)

they shall be carried out, unless otherwise provided for in the special regulation, in the accounts of the State Budget set up with the Czechoslovak State Bank within 15 days of delivery of the notice of the authority imposing the levy.

(2) Building undertakings make an additional contribution from the single base determined by the government (12) to the State Budget within a time limit set by the Ministry of Finance.

(3) The enforcement of the decision relating to the additional levies referred to in paragraphs 1 and 2 shall apply mutatis mutandis to the rules on proceedings relating to taxes and charges. 13)

§ 10

Fee for the withdrawal of agricultural land from agricultural production

(1) In the case of permanent withdrawal of agricultural land from agricultural production, the contribution from investment funds to the State funds for land fertilisation shall be paid. 14)

(2) For the temporary withdrawal of agricultural land from agricultural production, the amount referred to in the specific rules shall be paid annually for the period of withdrawal to the State Funds for the fertilisation of land; (14) The levy shall be paid on the profits of the company, with the approval, where appropriate, of the competent Ministry of Finance of the damage and compensation fund.

(3) For the temporary withdrawal of agricultural land from agricultural production for construction site facilities, the investor's contribution from investment funds is paid.

Enterprise funds

§ 11

(1) Enterprise funds concentrate the means of financing business needs.

(2) Undertakings shall establish the following:

(a) tangible interest funds:

1. a fund of cultural and social needs (Section 12),

2. the remuneration fund (§ 13),

3. small enterprise investment fund (§ 14);

(b) other funds:

1. turnover fund (§ 15),

2. the construction fund (§ 16),

3. risk fund (§ 17),

4. reserve (§ 18).

Trade-related enterprises without associated national enterprises also create a technical development fund by allocation of profits.

(3) In agreement with the relevant Ministry of Finance, the company may, with the agreement of the superior central authority, create additional special-purpose funds.

(4) The balance of the enterprise funds at the end of the year shall be transferred to the following year.

§ 12

Cultural and social needs fund

(1) The Fund of Cultural and Social Needs shall, under the conditions laid down by the Special Regulation15, be set up by means of an allocation of profits according to the standard or, where applicable, by the allocation of profits from the superior body or, where appropriate, by the allocation from the sectoral or sectoral reserve fund.

(2) The use of the funds of the Fund for Cultural and Social Needs is regulated by a specific regulation. 16)

§ 13

Remuneration fund

(1) The remuneration fund shall be set up by undertakings under the conditions laid down in the Special Regulation17) by an allocation of profits, where appropriate, by an allocation of redistribution of profits from a superior body. The remuneration fund may be supplemented by:

(a) the sectoral reserve, where appropriate, the sectoral reserve,

(b) from other sources designated by a specific regulation. 17)

(2) Transfers from funds other than those referred to in paragraph 1 to the remuneration fund and transfers between companies' remuneration funds are not permitted unless otherwise provided for in the Specific Regulations (18). In agreement with the competent authority of the Revolutionary Trade Union Movement, the fund may be transferred to other funds.

(3) The use of the funds of the remuneration fund is regulated by a specific regulation. 17)

§ 14

Small enterprise investment fund

(1) The Small Business Investment Fund is set up by industrial and construction enterprises managed by central authorities, designated by the Government of the Czechoslovak Socialist Republic.

(2) The Small Business Investment Fund is created by an allocation of profits according to the standard; for undertakings with planned losses or with relatively low profit formation, a fixed amount shall be established under the conditions laid down by the superior central authority in agreement with the relevant Ministry of Finance.

(3) The standard shall be determined by the undertaking's superior body by a certain percentage of the planned profits of the undertaking, taking into account the total cost of all the machinery and equipment of the undertaking and the degree of wear. Half of the fixed percentage depends on the profitability indicator for the production funds, 19) the second half on the indicator to be determined by the superior authority from the list of indicators established by the central authority in agreement with the relevant planning committee and the relevant Ministry of Finance.

(4) The basis of the actual allocation of the fund shall be calculated on the basis of the balance sheet profit according to the established standard; However, the part of the balance sheet profit attributable to the excess profit (possibly a reduction in the loss against the plan) shall only be included in the base of 40%. The allocation to the fund according to the performance of each indicator (paragraph 3) shall be made on the basis of the basis thus determined, with the standard rate not changing when the indicator is exceeded and the rate being reduced when the planned indicator is not fulfilled and the default at the specified threshold ceases. The details for subordinate production units and undertakings shall be determined by the central supervisor in agreement with the relevant Ministry of Finance.

(5) Other resources of the Small Business Investment Fund other than the standard allocation are:

(a) 50% of the sales of machinery and equipment which were part of the company's basic assets and investments;

(b) 50% of the profits from machinery and equipment disposed of;

(c) 30% of the price advantage for technical progressive products and products classified in grade 1 in the assessment.

However, the total allocation from these additional sources may not exceed 25% of the total planned allocation to the Small Business Investment Fund. The central authorities responsible may reduce the percentages set out in points (a) to (c).

(6) The Small Business Investment Fund is reduced by 30% from the price disadvantage of technically obsolete products and products classified in grade 3.

(7) The Small Business Investment Fund is used to finance buildings up to 2 million CZK of budget costs and machinery and equipment not included in the building budget, especially for:

(a) investments carrying out technical development results and rationalisation investments with a return period of up to five years;

(b) machines and equipment of a modernising nature, including their installation and installation;

(c) investments to protect workers' health and to improve safety and hygiene.

(8) The funds of the Small Business Investment Fund are deposited in a separate account opened with the Czechoslovak State Bank.

(9) Transfers from the Small Business Investment Fund to other funds (except the Construction Fund) are not allowed.

(10) During the year, advance allocations to the Small Business Investment Fund shall be made on a quarterly basis according to the fulfilment of the relevant indicators over the past period; the allocation shall be made within the time limit set for the submission of the accounting statements for the reference period.

§ 15

Turnover Fund

(1) The Turnover Fund serves to cover part of the stocks. It is created by enterprises following the indicators of the growth of the turnover fund in the increase in stocks or the share of the turnover fund in stocks, by allocations from profits or, where applicable, by allocations from a superior body or subsidies from the state budget.

(2) The Turnover Fund does not create business, sales and supply and research and development base organisations or other organisations designated by the relevant Ministry of Finance in an agreement with the Czechoslovak State Bank on a proposal from a superior central authority.

(3) The allocation to the turnover fund of profits shall be made at the level of the actual need but up to the maximum of the plan.

(4) Turnover funds may be redistributed; the method and conditions of such redistribution are laid down in a separate regulation. 20)

(5) Transfers from the turnover fund to other funds are not allowed.

§ 16

Construction Fund

(1) The construction fund constitutes undertakings

(a) the depreciation allocation;

(b) a profit allocation;

(c) revenue from the sale of basic funds and investments (for enterprises forming a small business investment fund, part of those revenues after the allocation to the small business investment fund),

(d) an allocation from the superior body;

(e) contributions and shares from other organisations under specific regulations, 21)

(f) transfer from other funds, where this Regulation or the special Regulation so permits, 22)

(g) special-purpose subsidies from the State budget or State funds.

(2) The contributions from depreciation to the construction fund shall be carried out by the undertakings on a monthly basis at the rate of actual depreciation, by means of a transfer of resources and funds, not later than the deadline set for the submission of the accounts for the month in question. The allocation of profits to the construction fund shall be carried out by the undertakings at the level of the actual needs, but up to the maximum of the plan.

(3) The construction fund is used

(a) to finance investment construction, other investments, project documentation and copyright;

(b) to cover repayments of investment and rationalisation loans, excluding bridging loans;

(c) to pay contributions and shares to other investors;

(d) to cover depreciation payments for redistribution,

(e) for other purposes in accordance with specific rules. 23)

(4) If an undertaking finances an investment from a cultural and social needs fund, 24) it transfers the necessary resources to the construction fund before starting financing; This transfer shall require the consent of the competent authority of the Revolutionary Trade Union Movement.

(5) Transfers from the construction fund to other funds are not allowed.

(6) The funds of the construction fund are deposited in a separate account opened with the Czechoslovak State Bank.

§ 17

Risk fund

(1) Undertakings may create a risk fund with the agreement of the superior central authority. That authority may determine in which undertakings a risk fund must be set up.

(2) The arrangements for the establishment and use of the risk fund shall be determined by the central supervisor in agreement with the relevant Ministry of Finance.

§ 18

Reserve Fund

(1) The reserve fund serves to cover exceptional economic risks arising from research and development activities. It is created by the organisation of a research and development base, by a profit allocation.

(2) In agreement with the Federal Ministry of Technical and Investment Development, where appropriate, the Ministry of Construction and Technology of the Czech Socialist Republic or the Ministry of Construction and Technology of the Slovak Socialist Republic (hereinafter referred to as the "Central Competent Authority for Technical and Investment Development") and the Ministry of Finance shall determine the method of drawing up and using the reserve fund.

Financing of the firm's needs

§ 19

Financing of circulation

(1) The source of funding for the funds of enterprises is the own resources of enterprises, operating loans and other resources.

(2) The details of the financing of the circulatory funds are laid down in a separate regulation. 25)

§ 20

Financing of investment construction

The source of financing for investment construction is the own resources of enterprises, allocations from centralised sources from senior bodies, investment credit, subsidies from state budget, state funds, budgets from national committees, or other resources provided for by specific regulations. 26) The method of financing investment construction is regulated by a separate regulation. 27)

§ 21

Financing of technical development

(1) The costs of dealing with the tasks and work of the company's scientific and technical development plans include enterprises in the costs of their activities through the technical development reserve set out in the financial plan an amount, ensuring the tasks and work of the company's scientific and technical development plan, approved by the superior body. The competent central authority may reserve such approval in production units with activities in selected fields in agreement with the competent central authority for technical and investment development.

(2) The details of the use of the technical development reserve are laid down in a separate regulation. 28)

§ 22

Evaluation of annual results

(1) Within the framework of the annual accounts, the undertaking will determine the economic outcome and assess the results of the economic activity for the previous year. Profit shall be used in accordance with this Regulation.

(2) The annual accounts shall be approved by the superior authority. 29)

HLAVA 2

FINANCIAL ECONOMIC MANAGEMENT

§ 23

(1) The Directorate-General shall manage separately:

(a) with own resources and resources of a corporate nature, mutatis mutandis as undertakings; This appropriation is intended to cover the financing of commitments remaining to be settled from previous years.

(b) with the resources and means of production units generated by additional and, where appropriate, other contributions from undertakings and with the resources and means of redistribution between production units; This appropriation is intended to cover the following expenditure:

(c) other resources and resources under specific rules.

(2) The Directorate-General shall establish a sectoral building fund, a technical development fund and a sectoral reserve fund, and under the conditions laid down in Section 27 of the field of geological work and under the conditions laid down in Section 28 of the field of damage and compensation fund. it may also set up a risk fund, mutatis mutandis, in accordance with Paragraph 17 and other sectoral special-purpose vehicles, mutatis mutandis, in accordance with Section 11 (3). In agreement with the relevant Ministry of Finance, the competent central authority may impose a special-purpose fund on the Directorate-General for Development.

(3) The funds of the sectoral funds shall be deposited in separate accounts set up with the Czechoslovak State Bank.

(4) The balance of sectoral funds at the end of the year shall be transferred to the following year.

§ 24

Trade Fund of Construction

(1) The Department of Construction is set up by the Directorate-General

(a) centralisation of depreciation from subordinate undertakings;

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

(c) the allocation of centralised profits and centralised depreciation of the central authority;

(d) contributions and shares from other organisations under special regulations, 30)

(e) by transfer from other funds, where permitted by this Regulation or by a special regulation. 31)

(2) The Directorate-General

(a) to pay the depreciation levy imposed by the central authority, which will be used to redistribute depreciation between the production units or to transfer depreciation to the State budget;

(b) the planned allocations to the funds for the construction of subordinate enterprises;

(c) to finance the planned investments of the production unit of which the Directorate-General is the investor and to cover the repayments of investment and rationalisation loans granted to the Directorate-General for the Production Unit by transfer to the Directorate-General's Construction Fund;

(d) to provide contributions and shares to other investors under special regulations, 32)

(e) other uses in accordance with specific regulations (e.g. the implementation of loan guarantees).

Citation	Decree of the Government of the Czechoslovak Socialist Republic No. 151 / 1975 Coll., on the Financial Management of State Economic and Certain Other Socialist Organisations
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	23.12.1975
Effective from	01.01.1976
Effective until	-
Status	Valid

Decree of the Government of the Czechoslovak Socialist Republic on the financial management of state economic and certain other socialist organisations

Contents

§ 1

§ 2

§ 3