Decree No. 164 / 1980 Coll.
Decree of the Federal Ministry of Finance on the financing of circulatory funds
Valid
Effective from 01.01.1981
164
DECLARATION
Federal Ministry of Finance
of 10 November 1980
on the financing of circulatory appropriations
The Federal Ministry of Finance provides in agreement with the Ministry of Finance of the Czech Socialist Republic and the Ministry of Finance of the Slovak Socialist Republic pursuant to § 391 (1) of the Economic Code No. 109 / 1964 Coll., in the version published under No. 37 / 1971 Coll. and supplemented by Act No. 144 / 1975 Coll.:
Subject matter and scope of the adjustment
(1) This Decree provides for the financing of the means of production of economic units and enterprises (1), with the exception of external trade organisations and national economic organisations of agricultural production and agricultural services (hereinafter referred to as "organisations").
(2) This decree applies to state economic organisations within the production unit, to a group company and to a group special purpose organisation, where the production unit, under its statute, decentralised the management and financing of the circulation funds to individual enterprises, establishes a turnover fund for them and entrusts them with the Czechoslovak State Bank's branch in the area of lending of circulation funds.
(3) The financing of circulation in foreign trade organisations and in national economic organisations for agricultural production and agricultural services is governed by specific provisions.
Remuneration
(1) For the purposes of planning and financing, the organisations shall be:
(a) stocks broken down
1. stocks without construction site facilities and uninvoiced works and supplies;
2. construction site equipment,
3. uninvoiced work and supplies,
(b) costs of future periods;
(c) claims on customers,
(d) other devices.
(2) The other means of circulation are:
(a) other operating claims other than claims on customers;
(b) other means of circulation to which they belong
1. means of payment and participation;
2. deposit and current accounts,
3. money and other funds in foreign currency,
4. internal clearing in the operational area.
Stocks
(1) Stocks are material, fuel, items of gradual consumption in stock and in use, subcontracting, unfinished production and semi-finished products of own production, products, animals and goods.
(2) The stocks referred to in paragraph 1 shall also include:
(a) measuring and testing instruments procured for research and development work, provided that they are intended to address one task of the science and technology development plan, are largely used in this solution and cannot be obtained for temporary use, nor can the necessary work be done in cooperation;
(b) temporary equipment for research and development work and for testing the proposed technologies, unless it serves to solve or verify research work permanently and is a temporary construction, 2)
(c) articles intended to be a necessary complete part of the machines and equipment being developed, provided that they form a single basic device with them.
(3) The items of gradual consumption in use are mainly small and short-term items in use, special tools and preparations in use, construction site equipment, materials in use, articles in hire shops, circulatory packaging in use, machines for repairing, and articles of precious metal.
(4) Small and short-term articles are items which are not used at the same time, and
(a) whose price is less than five thousand CZK per item without regard to their fitness (small items);
(b) whose fitness period is less than one year without regard to their price (short-term articles);
(c) which shall be used without account being taken of their price and the duration of their fitness as work clothes, work footwear, protective articles and equipment, bedlinen and teaching aids.
(5) Teaching aids are subjects serving exclusively the teaching process in schools of all stages. 3)
(6) Specific instruments and preparations are articles used to produce one or more orders and series, or in the mass production of a particular product type, without account being taken of their price and their fitness.
Financing of stocks without site facilities and uninvoiced works and supplies
(1) Stocks without construction site facilities and uninvoiced works and supplies [Paragraph 2 (1) (a) (1)] shall cover:
(a) the turnover fund;
(b) permanent pasture at a fixed rate;
(c) operating credits under special regulations, 4)
(d) parts of other resources (i.e. fixed liabilities above the fixed amount, other operating liabilities and retained earnings), if they exceed other assets (§ 2 (2)) and costs of subsequent periods, not covered by operating credit (§ 5 (3)).
(2) Stocks excluded from lending are financed by the organisation by other sources as referred to in paragraph 1 (d), including temporary financial assistance. 5)
(3) Exceptional temporary overrun of the planned amount of stocks not covered by other sources and operating credits is financed by the organisation during the year by temporary financial assistance. 5)
(4) Permanent pasture [paragraph 1 (b) and (d)] includes:
(a) liabilities towards non-investment suppliers (both domestic and abroad);
(b) commitments towards workers;
(c) provisions for costs and passive balances of other time differentiating costs and revenues;
(d) the obligations arising from the clearance of contributions and taxes with the state budget and the budgets of the national committees;
(e) liabilities arising from the settlement of contributions with a superior authority;
(f) other types of commitments which, taking into account the specific nature of the organisations and on a proposal from the competent central authority of the Federation, shall be defined by the Federal Ministry of Finance for organisations managed by the central authorities of the Federation. The Ministry of Finance of the Republic shall, by analogy, define those types of commitments on a proposal from the relevant central authority or regional national organisation committee managed by the central authorities of the Republic or national committees.
(5) The method of calculating the amount of permanent passports for planning and financing purposes provides for specific measures. 6)
(6) The other operating liabilities (paragraph 1 (d)) are:
(a) balance of operational funds, excluding the turnover fund, 7)
(b) operating commitments, with the exception of commitments included in permanent passports [paragraph 4 (a), (b), (d) to (f)].
Financing of other circulatory funds
(1) Construction site facilities and non-invoiced works and supplies (Section 2 (1) (a) (2) and (3)) are covered by operating credit under the Specific Regulations (4) and by repayments of customers (investors). 8)
(3) Waiver costs [Paragraph 2 (1) (b)] are covered by operating credit pursuant to special rules, (4) or other resources referred to in § 4 (1) (d).
(4) Claims on customers [Paragraph 2 (1) (c)] are covered by operating credit under the Specific Regulation.4)
(5) The funds referred to in paragraphs 1 to 4, excluded from credit, are financed by the organisation by other sources in accordance with Article 4 (1) (d), including temporary financial assistance. 5)
(6) Other devices (Paragraph 2 (2)) are covered by other sources in accordance with § 4 (1) (d).
Determination of planned stock levels
(1) The framework for the financing of stocks is the planned level of stocks [Paragraph 2 (1) (a) (1)], derived from the financial plans of the inventory turnover indicator on days, and in organisations managed by the Federal Ministry of Fuel and Energy and the Ministry of Forestry and Water of the Republics, as well as in organisations managed by national committees whose relationship to the budget of the National Committee is determined by a financing plan established as the maximum stock limit.
(2) The period of turnover of stocks in days is expressed as a fraction in the numerator of which stocks are at the end of the year, multiplied by 360, and in the output denominator, with the exception of supply and sales organisations for which the sum of sales for goods and the delivery of goods is indicated in the denominator.
Management of stock developments
(1) Stocks [Paragraph 2 (1) (a) (1)] are both directed in the plan and in fact by the indicator of the time of stock turnover in days with the exceptions referred to in paragraph 2.
(2) The stocks [Paragraph 2 (1) (a) (1)] are excluded from the stocks for the purposes of guidance by means of the inventory turnover indicator on days:
(a) stocks in organisations managed by the Federal Ministry of Foreign Trade, the Federal Ministry of Finance, the Ministry of Agriculture and Nutrition of the Republics, the Ministry of Forestry and Water of the Republics, the Ministry of Health of the Republics, the Ministry of Trade of the Republics, the Ministry of Education of the Republics and the Ministry of Culture of the Republics, and in local production and services and the food industry managed by national committees;
(b) stocks of commercial organisations;
(c) stocks of research and development base organisations;
(d) stocks of design, engineering and engineering organisations;
(e) stocks of undertakings engaged in the collection and treatment of waste;
(f) stocks of fuels intended for energy and propulsion purposes exceeding their standard level, as determined in accordance with the specific Regulation, 9)
(g) stocks of export and import goods in organisations authorised by foreign trade;
(h) stocks of temporary and unnecessary (paragraphs 4 and 5);
(i) other stocks, specifically identified by the Ministry of Finance in agreement with the Czechoslovak State Bank on a proposal from the competent central authority, having regard to the specific nature of certain organisations.
(3) At the same time as the stocks referred to in points (a) to (e) of paragraph 2 are excluded, the performance of those organisations shall be excluded.
(4) Temporary stocks [paragraph 2 (h)] are stocks which are accumulated irregularly on a one-off basis as a result of the exceptional purchase of stocks necessary for the future planned production, supply of material by the supplier before the agreed deadlines, large-scale imports and accumulation of products for the non-introduction of public goods transport. Temporary stocks are not planned and are excluded from the actual stocks [Paragraph 2 (1) (a) (1)] for the purpose of calculating the amount of the inventory turnover indicator in days, but only at an amount which exceeds the total planned stocks and provided that the Czechoslovak branch of the State Bank has not excluded them from lending.
(5) Unnecessary stocks are stocks which the organisation does not need to carry out its tasks and activities and which cannot be used at all in the organisation.
Determination of the amount of the turnover fund
(1) The Turnover Fund is set up by all organisations except for commercial, supply, sales and spa organisations. 10)
(2) The scope of the financing of stocks [Paragraph 2 (1) (a) (1)] by the Turnover Fund, with the exception of the stocks referred to in paragraph 4, is derived from the indicator of the share of the Turnover Fund in stocks.
(3) For the purposes of determining the planned state of the turnover fund, the share referred to in paragraph 2 shall be that of the planned stock. These stocks include stocks [Paragraph 2 (1) (a) (1)], with the exception referred to in paragraph 4.
(4) When calculating the share of the turnover fund in the stocks referred to in paragraph 2, the following shall not be included:
(a) stocks of commercial, supply, marketing and spa organisations;
(b) stocks of fuels intended for energy and propulsion purposes in excess of their standard levels, as determined in accordance with the specific Regulation, 9)
(c) temporary and unnecessary stocks (§ 7 (4) and (5));
(d) seasonal stocks (paragraph 5);
(e) other stocks, specifically identified by the competent Ministry of Finance in agreement with the Czechoslovak State Bank on a proposal from the competent central authority, having regard to the specific nature of certain organisations.
(5) Seasonal stocks [paragraph 4 (d)] are defined as those stocks which accumulate regularly in the short term, namely:
(a) in food industry organisations, the stocks established by the Federal Ministry of Finance in agreement with the Ministry of Finance of the Republics and the State Bank of Czechoslovakia on a proposal from the Federal Ministry of Agriculture and Nutrition and the Ministry of Agriculture and Nutrition of the Republics;
(b) in forest management organisations, stocks of wood and stocks in agricultural production;
(c) in all organisations, stocks of fuels intended for energy and propulsion purposes exceeding their standard level, as determined in accordance with a specific Regulation. 9)
Sources of the inflow
(1) The planned addition of the turnover fund provided for in Article 8 shall be paid mainly from the allocation of profits of the organisation and, if profit is not sufficient or for organisations with a planned loss of allocation from a superior body in the framework of redistribution or centralisation of profits. The addition shall be understood as the planned amount of the profit allocation to the reverse fund or the planned amount of the allocation from the redistribution or centralisation of profits.
(2) In the case of new or significantly developing organisations, the addition of the turnover fund shall be paid mainly from the allocations from the superior authority in the framework of the redistribution or centralisation of profits and, if not sufficient, from the special-purpose subsidies from the state budget.
(3) If, on 31 December, an organisation producing a turnover fund exceeds the planned amount of stocks rectified in accordance with § 7 minus the amount of stocks referred to in § 8 (5), it shall allocate from the distribution of profits to the turnover fund an amount corresponding to the excess of the planned amount of such stocks, as calculated in the plan set out by the share of the turnover fund in stocks (§ 8), unless the lending branch of the State Bank of Czechoslovakia provides a consolidation loan to the organisation at its request for the missing resources in the distribution of profits. 12) The allocation to the reverse fund shall be made within the time limit set for sending the annual accounts for the relevant calendar year. This allocation does not affect the planning of the turnaround fund under Section 8.
Reduced Turnover Fund
(1) The planned reduction of the turnover fund provided for in Section 8 will be drawn off by the supervisor and used to supplement the turnover funds of other organisations. Reduction means the planned amount of the levy.
(2) If, on 31 December, the organisations producing the turnover fund reduce the stock plan referred to in Article 7 minus the stocks referred to in Article 8 (5), they shall transfer to the distribution of the profits from the turnover fund the amount corresponding to the reduction of the planned amount of those stocks, as calculated in the plan set out in the share of the turnover stock pool (§ 8). The transfer to the profit distribution shall take place by 31 March of the following year. This transfer does not affect the planning of the turnover fund under Section 8.
Stock normalisation
Where organisations are obliged to establish stock standards under the Specific Regulation (9), they shall use them to manage stock developments within the planned stock level (Section 6 (1)).
Exceptions
The Federal Ministry of Finance may, taking into account the specific nature of the organisations at the request of the competent central authority, allow derogations from the provisions of Sections 3 (3) and (6), 4 (1), 5 (1) to (4) and (6) and 7 (1) and (2) for organisations managed by the Federation authorities. The Ministry of Finance of the Republics may allow exemptions from the same provisions for organisations managed by the authorities of the Republics; in so doing, except for organisations managed by national committees in agreement with the Federal Ministry of Finance. If the exemption has consequences on the amount of the loan, it is authorised by the competent Ministry of Finance in an agreement with the Czechoslovak State Bank.
Final provisions
(1) The Directives of the Federal Ministry of Finance No V / 1-30 303 / 1975 of 15 December 1975 on the financing of circulation funds published in the Financial Rapporteur No 15 / 1975 under the number 78 and registered in the amount of 35 / 1975 Coll., as amended by Decree No V / 1-27 771 / 1976 of 30 November 1976, published in the Financial Rapporteur No 15 / 1976 and registered in the amount of 31 / 1976 Coll.
(2) Any derogations authorised under the Directives referred to in paragraph 1 shall be deleted.
(3) Articles acquired before the expiry of this Order and placed in the principal funds and, where appropriate, in stocks shall be kept in the basic funds and, where appropriate, in stocks until their complete liquidation. 11)
This Decree shall take effect on 1 January 1981.
Minister:
Lér CSc.
1) § 2 of the Decree of the Government of the Czechoslovak Socialist Republic No. 161 / 1980 Coll., on the financial management of production units and enterprises.
2) Paragraph 1 (2) (b) of Decree No. 85 / 1976 Coll., of the Federal Ministry of Technical and Investment Development, on a more detailed modification of the zoning and construction rules.
(3) The list of teaching tools shall be issued by the central competent authority in agreement with the competent Ministry of Finance for this purpose.
4) Decree of the President of the State Bank of Czechoslovak No. 158 / 1975 Coll., on the provision of loans.
5) Paragraph 9 (4) of the Decree of the Government of the Czech Republic No 161 / 1980 Coll.
6) Guidelines of the Federal Ministry of Finance on the definition and calculation of permanent passports published in No 15 / 1975 of the Financial Rapporteur.
7) These are all the funds of the organisation with the exception of the building fund and the development fund.
8) Decree of the Ministry of Finance and the Chief Arbiter of the Czechoslovak Socialist Republic No. 22 / 1967 Coll., on invoicing and payment of supplies for investment construction and supply of geological works, as amended by Decree No. 136 / 1970 Coll., No. 166 / 1971 Coll. and No. 3 / 1980 Coll.
9) Decree of the State Planning Commission No. 80 513 / 1978 of 30 May 1978 laying down the principles for stock normalisation, registered at the amount of 21 / 1978 Coll.
10) Paragraph 14 (2) of the Decree of the Government of the Czech Republic No 161 / 1980 Coll.
11) Paragraph 27 (3) of the Decree of the Federal Ministry of Finance and President of the State Bank of Czechoslovak No. 162 / 1980 Coll., on the financing of the reproduction of basic funds.
12) Principles of internal and foreign banking monetary policy after 1980, approved by Government Resolution 400 / 1980.
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Regulation Information
| Citation | Decree of the Federal Ministry of Finance No. 164 / 1980 Coll., on the financing of circulatory funds |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 16.12.1980 |
|---|---|
| Effective from | 01.01.1981 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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