Internal spending regulations: The foundation for effective financial management in agencies and units

Internal spending regulations are documents issued by agencies, units, and enterprises to specify principles, norms, and spending processes within the scope of financial autonomy. This is an internal financial management tool that helps to use the budget in a transparent, economical, and effective manner.

The following article by Bizzi will propose building internal spending regulations so that businesses can proactively allocate internal resources flexibly, in accordance with operational practices.

Overview of Internal Spending Regulations

Internal spending regulations are documents that stipulate principles, norms, regimes, and standards for financial spending in a unit or organization. They aim to use funds effectively, economically, and transparently, while enhancing the responsibility of individuals and related departments in financial management.

Concept and role

Internal spending rules is a document that stipulates the principles, bases, and contents of administrative management expenditures assigned to implement the financial autonomy regime; at the same time, it stipulates the regime of management and use of public assets applied uniformly in agencies and units.

The important role of internal spending regulations:

• To implement autonomy and self-responsibility in using staff and administrative management costs.
• Create initiative for agency heads in budget management and spending, ensuring task completion.
• Use public assets properly and effectively.
• Practice thrift, fight waste and corruption in the management and use of the state budget.
• Promote the effective arrangement of the apparatus, enhance initiative and improve the lives of civil servants and workers.

Subjects and scope of internal spending regulations

• Internal spending regulations are applied uniformly within agencies and units.
• Subjects of adjustment include civil servants and employees under contracts working at units under the agency, those who are entitled to receive salary according to the salary fund of the Management Office.
• Employees receiving budget salaries from affiliated units or other agencies who are working under a secondment regime at the agency are also entitled to benefits from the savings fund stipulated in this Regulation, corresponding to the secondment period (except for cases of secondment within the agency).

Principles and basis for building internal spending regulations

Dưới đây là phần “Nguyên tắc và cơ sở xây dựng quy chế chi tiêu nội bộ”, có thể sử dụng trong văn bản chính thức hoặc tài liệu nội bộ:

Basic principles:

• Complete assigned tasks well.
• Do not increase assigned administrative management costs, except in some special cases as prescribed.
• Manage and use funds economically and effectively; implement transparency, democracy and ensure the legitimate rights and interests of cadres, civil servants and employees.
• Based on the functions, tasks and annual operating plans of the agency.
• Do not exceed current spending policies and regimes prescribed by competent state agencies, unless approved by competent authorities in special cases.
• Expenditures must have sufficient legal and valid invoices and documents according to current accounting regulations (except for lump sum expenditures).

Based on the spending level regulations:

• State budget expenditure estimates for the year are assigned to implement the autonomous regime.
• Current policies, standards and spending norms issued by competent state agencies.
• Situation of state budget expenditure and use of public assets over consecutive years.

Main contents in the internal spending regulations template

Below are the main contents of a sample Internal Spending Regulation, commonly applied to administrative units, public organizations, and enterprises with financial autonomy.

Expense collaborate:

• Payment and settlement business expenses: Stipulates the basis, conditions, procedures and cases in which business travel expenses are not paid. The payment period is 5 working days from the date of receipt of all valid documents.
• Payment for business travel: Includes travel expenses from home to the airport/train station/bus station and vice versa. Clearly state who is eligible for airfare payment and the payment level for other means of transport or if you are self-sufficient in transport.
• Payment for room rental: Applied in lump sum form (specific rate for each city, region) or according to actual bill (standard 2 people/room, maximum rate varies depending on location).
• Payment of accommodation allowance: 120,000 VND/day for day trips and 180,000 VND/day for overnight stays.
• Monthly payment of business trip allowance: Applicable to units with employees who regularly go on business trips for more than 10 days/month, with different rates depending on position.
• Cost of serving delegations on business trips abroad: Including procedures for preparing funds, business expenses (air tickets, passports, other documents), expenses for purchasing foreign gifts, and translation expenses.

Guest cost and conference:

• Foreign guest reception expenses: Based on approved programs, plans and regulations of the Ministry of Finance. Regulate the level of expenses for serving drinks, fruits, and candies for each customer class.
• Domestic reception expenses: Ensure formality, not ostentation. Maximum spending on drinks, fruit and intimate meals.
• Meeting expenses: Applicable to important internal meetings, inter-departmental meetings with maximum drinking water expenses. Payment documents are meeting invitation/summons, purchase list, invoices.
• Conference fee: Comply with current regulations and the regime of the Supreme People's Court. Principles of no ostentation, no combination with sightseeing and vacation, no gifts/souvenirs. Regulations on supporting food, accommodation, and transportation costs for delegates who do not receive salaries from the State budget.

Management of public assets and other expenditures

• Office supplies usage norms: Quarterly allocation of office supplies, printer ink and photocopier ink according to actual needs and number of prints. Issuance procedures according to request form. Regulations on quarterly allocation of tea and water for each position.
• Distribution of books, newspapers, newsletters: Encourage the use of the internet to save paper and postage. Regulate the distribution of newspapers and magazines. Procedures for providing books and documents upon request.
• Office management and use: Comply with the Law on Management and Use of Public Assets and guiding Decrees and Circulars.
• Using car: Principles of economy and efficiency. Vehicle usage standards for each position, responsibilities of users, offices and drivers. Regulations on fuel and oil usage standards and vehicle management and repair procedures.
• Management and use of electricity and water: Civil servants and employees are responsible for saving electricity and water; turning off unnecessary equipment; taking advantage of natural light; using air conditioning appropriately. The security department manages the lighting system and turns off electricity in unoccupied areas.
• Management, use of telephone and postal charges: Regulations on personal phones (equipment, fixed charges) and office phones (purpose of use, fixed charges for each phone/room, handling of exceeding the limit). Postal charges must be strictly managed, taking advantage of transferring documents via the network.
• Equipment and management of equipment, machinery and working means: Comply with current regulations on standards and norms. Employees are responsible for managing and protecting public assets and handling any loss or damage.
• Special branch of the Central Highlands and serving the local political situation: Expenses for holidays, New Year, visiting policy families, New Year greetings to sister units, cultural and sports exchange expenses.

Payments via personal accounts and employee related expenses

• Payment via personal account: Amounts such as salary, wages, allowances, bonuses, collective benefits, income supplements, telephone allowances, and business trip allowances.
• Overtime payment: Overtime principles when really necessary, ensuring not to exceed 200 hours/year/person and detailed payment procedures.
• Service fee: Including professional documents, printing, uniforms, mobile court, service fee for secretary, transportation fee for witnesses.
• Annual leave payment: Principle: The head of the unit arranges leave and does not pay allowance if there is no need for leave. Payment content and level of travel allowance and transportation expenses. Payment conditions and procedures require a leave application and confirmation from local authorities or medical facilities.

Use administrative management budget economically

• Determine administrative management costs to save: Is the difference when the actual expenditure is lower than the assigned administrative management budget estimate after completing the tasks.
• Contents of using savings funds: Supplementing income for employees (linked to work efficiency and quality), spending on welfare activities, paying for unexpected hardship allowances, paying for rewards, and establishing an income stabilization fund.
• Allocate savings and distribution sources to increase income: Temporarily deduct savings to supplement monthly/quarterly income. Allocation is based on the results of the evaluation of the savings level of the departments (classified as A, B), ensuring that it is linked to efficiency and work results, not divided equally. Applicable to cadres, civil servants, and contracts under the state management salary fund of the Provincial People's Court Office.

Process of building, implementing and controlling Internal spending regulations

Below are detailed contents on the process of building, implementing and controlling Internal Spending Regulations, applicable to administrative agencies, public organizations, and enterprises with autonomous mechanisms.

 Drafting of Internal Spending Regulations:

• Research and information gathering:
  • Research legal regulations related to financial management, invoices, documents, taxes (eg: corporate income tax, value added tax, personal income tax) and other relevant regulations.
  • Refer to the internal spending regulations of similar businesses or other units (if any).
  • Collect information about the business's actual spending situation in recent times, regular and unexpected expenses.
  • Survey and get opinions from relevant departments and divisions about their needs and suggestions.

• Determine the scope and subjects of application:

• • Clearly define the scope of application of the regulation (e.g., company-wide, certain departments, divisions).
  • Clearly identify the target audience (e.g. all employees, management, specific positions).

• Build detailed content:

• • Regulations on management and use of assets, tools and equipment.
  • Clearly define allowed and unauthorized expenses, maximum spending levels, spending norms, payment procedures, necessary documents and invoices.
  • Regulations on expenditure control and responsibilities of relevant parties.
  • Regulations on handling violations.

• Text editing:

• • Use precise, clear, easy-to-understand language.
  • Ensure the logic and system of the terms.
  • Present the document in accordance with the legal document format.

Get feedback:

• Send draft to departments and divisions:

• • Send draft regulations to relevant departments and divisions for comments.
  • Organize meetings and workshops to exchange and discuss the draft.

• Summary of opinions:
  • Record and synthesize all comments.
  • Classify and evaluate comments to review and adjust the draft.

• Finalize the draft:

• • Edit and supplement the draft based on comments.
  • Ensure the draft is consistent with the actual situation and legal regulations

Issuance of Regulations:

• To the Board of Directors:
  • The draft charter has been completed and submitted to the board for approval.
• Issuing regulations:
  • Sign and issue official regulations.
  • Publicly announce the regulations for all employees to know.
• Storage:
  • Store regulations and related documents scientifically and easily searchable.

Implementation:

• Training and guidance organization:

• • Organize training sessions and provide guidance on regulations to employees.
  • Answer questions and support staff during implementation.

• Popularize, propagate:

• • Post the rules on internal information channels (e.g. website, bulletin board, email).
  • Organize propaganda and dissemination activities about the regulations

• Follow the rules:

• • Departments, divisions and employees must comply with the regulations in the charter.
  • Ensure that expenditures are made for the right purpose, reasonably and legally.

Optimize internal spending management with technology with solutions from Bizzi

Bizzi Travel & Expense Not just an expense tracker – a platform that helps businesses Establish a disciplined, transparent and flexible internal financial system, ready to adapt to any regulations and scale.

Challenges in managing the development of traditional internal spending regulations

• Manual processes are prone to errors and lack transparency.
• Difficulty in reconciling invoices and controlling budgets in real time.
• The approval process is slow, affecting work performance.
• High risk of waste and corruption due to lack of effective monitoring tools.

Applying Bizzi solution in managing internal spending regulations

Solution Bizzi Travel & Expense helps businesses establish, control and optimize internal spending regulations comprehensively - from policy setting to budget monitoring and transparent spending approval.

• Set up detailed spending rules for each category:

Support businesses to easily build separate spending policies for each type of activity such as:

• • Purchase
  • Book flight tickets
  • Work – travel
  • Reception
  • Customer gifts…

Each category can set limits by individual, department or level, helping to control costs close to operational reality.

• Flexible approval delegation

Bizzi allows businesses Customize approval flow by spend value. For example:

• • Under 2 million VND: Team leader approves
  • From 2-5 million VND: Head of department approves
  • Over 5 million VND: Requires senior management or CFO approval

Approval flows can be classified by expense category, department, project or personnel level, helping businesses manage transparently, reduce errors and clarify responsibilities. The system will notify the approver in real-time when there is a new request.

• Track approval status step by step: pending – approved – rejected.
• Budget monitoring & overspending alerts

After setting up the policy, Bizzi supports businesses:

• • Allocate appropriate budget for each department/project
  • Automatically track spending in real time

• Automatically compare actual spending with assigned budget.

• Alerts when expenses exceed budget or fall outside allowable limits

• Automatic expense recording & processing

• • Employees can submit payment requests before a transaction occurs or after a payment is made.
  • Integrating corporate cards helps automatically record all transactions.
  • Automatically attach expenses to users, departments, projects, and categories.

• Manage valid invoices & documents 

For each login account, Bizzi will provide an individual invoice email with the format @hoadon.me, nhà cung cấp sẽ gửi hóa đơn điện tử đến email này. Khi có nhu cầu xuất hóa đơn, người dùng có thể chia sẻ thông tin xuất hóa đơn ngay trên app với nhiều ứng dụng khác nhau như: Zalo, Messenger, Instagram, Gmail,…..

• Automatically identify, extract and compare electronic invoices.
  • Validity check according to the provisions of the Law on Accounting - VAT.
  • Store electronic documents centrally, easy to retrieve during auditing and settlement.

• Expense reporting & analysis

• • Create detailed reports by category, time, personnel, department, project...
  • Compare budget – spending – trends to optimize cash flow.
  • Data extraction easily connects to accounting, ERP or BI software.

• Extensive system integration capabilities

• • Integrates with corporate cards (credit/debit) from multiple banks.
  • Connect with ERP, accounting, HRM, DMS software.
  • 2-way data synchronization helps accountants avoid manual data entry.

Conclude

The process of developing, implementing and controlling internal spending regulations must be organized systematically, transparently and in line with reality. Good implementation of this process not only ensures reasonable spending but also improves financial efficiency, increases autonomy and responsibility throughout the unit.

In the current digital context, the application of technological solutions such as Bizzi will help agencies and units optimize the expenditure management process, thereby further improving financial efficiency and transparency. Build internal expenditure regulations using cost management software Not only a trend, but also a smart solution to help units save time, improve management efficiency and minimize financial risks.

• Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
• Schedule a demo: https://bizzi.vn/dat-lich-demo/