Circular No. 03/2013/TT-BYT guides the accounting of state budget for non-repayable aid managed by the Ministry of Health.

CIRCULAR

Guidelines for the accounting of state budget

 applicable to non-reimbursable grants managed by the Ministry of Health 

Pursuant to Decree No. 63/2012/NĐ-CP dated August 31, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Health;

Pursuant to Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government on the issuance of the Regulations on management and use of official development assistance funds;

Pursuant to Decree No. 93/2009/NĐ-CP dated October 22, 2009 of the Government on the issuance of the Regulations on management and use of non-governmental foreign aid;

Pursuant to Circular No. 225/2010/TT-BTC dated December 31, 2010 of the Ministry of Finance on the financial management regime of the state for non-reimbursable foreign aid included in state budget revenue;

At the proposal of the Director of the Department of Planning and Finance, the Director of the Legal Department;

The Minister of Health issues this Circular guiding the accounting of the state budget applicable to non-reimbursable grants managed by the Ministry of Health.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides the accounting of provisional advances, usage, repayment of provisional advances, and recording of income and expenditure in the state budget applicable to non-reimbursable grants managed by the Ministry of Health.

2. The accounting of the state budget for programs and projects funded by official development assistance (ODA) loans, concessional loans, non-reimbursable ODA within programs and projects funded by loans and mixed loan sources not covered by this Circular.

Article 2. Applicability

This Circular applies to agencies, organizations, and individuals related to the management and use of non-reimbursable grants managed by the Ministry of Health, including:

1. Agencies and units under and directly affiliated with the Ministry of Health.

2. Project Management Boards established by the Ministry of Health, program/project managers, and non-project grant managers under the Ministry of Health's jurisdiction.

3. Social organizations operating in the health sector established according to Decree No. 45/2010/NĐ-CP dated April 21, 2010 of the Government on the organization, operation, and management of associations, which are professionally managed by the Ministry of Health.

Article 3. Principles of Accounting

1. Non-reimbursable grants managed by the Ministry of Health mentioned in this Circular are part of state budget revenue and must be fully and promptly recorded in the state budget in accordance with the State Budget Law.

2. The accounting of the state budget for non-reimbursable grants shall be conducted in Vietnamese Dong.

Article 4. Definitions

In this Circular, the following terms are understood as follows:

1. Non-reimbursable grants managed by the Ministry of Health refer to financial and material assistance provided by foreign sponsors to Vietnam without the need for repayment aimed at supporting the implementation of development goals, humanitarian purposes, or funding scientific and technological activities in the health sector approved by the Ministry of Health in accordance with Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government on the issuance of the Regulations on management and use of official development assistance funds and Decree No. 93/2009/NĐ-CP dated October 22, 2009 of the Government on the issuance of the Regulations on management and use of non-governmental foreign aid.

2. Quarterly payment advance reports are documents prepared quarterly by programs and projects based on the summary of actual expenditures incurred at the project site, in accordance with commitments and agreements with sponsors, and within the project documentation and materials approved by the Ministry of Health, ensuring compliance with the conditions for payment advances as stipulated by law.

3. Confirmation of the accuracy and validity on the payment advance report is the process where the Ministry of Health verifies the figures proposed for payment advances by programs and projects against the budget lines in the annual financial plan or activity budget approved by the Ministry of Health and confirms monetary aid according to Model C3-HD/XNVT "Monetary Aid Confirmation Form," Circular No. 225/2010/TT-BTC dated December 31, 2010 of the Ministry of Finance on the financial management regime of the state for non-reimbursable foreign aid included in state budget revenue (hereinafter referred to as Circular No. 225/2010/TT-BTC).

Article 5. Building annual financial plans and project activity budgets

1. Annual financial plan:

a) The annual financial plan is the plan for disbursing aid funds, counterpart funds, and other sources of funding as prescribed. Each year, units must prepare the annual financial plan according to the form specified in Appendix 1 attached hereto, which includes details on expenditures for each component and each activity of the project, broken down by each source of funding, counterpart funds, and other sources.

b) The Ministry of Health will approve the annual financial plan and authorize units to self-approve the budget estimates for specific activities before implementation. The approved annual financial plan serves as the basis for programs and projects to disburse funds, settle accounts, and ensure the accuracy of provisional payment reports submitted by units.

2. Project activity budget is a budget estimate prepared by units based on expenditure standards and budget lines in the approved annual financial plan. In cases where units have not yet submitted the annual financial plan for approval by the Ministry of Health, prior to implementing activities, units must prepare the budget estimate according to the form specified in Appendix 2 attached hereto, submit it for approval by the Ministry of Health, serving as the basis for disbursement, settlement of accounts, and ensuring the accuracy of provisional payment reports submitted by units.

Chapter II

SPECIFIC PROVISIONS

Article 6. Accounting for state budget revenues and expenditures for monetary aid provided directly into the state budget or sector-specific support

The process of accounting for state budget revenues and expenditures shall be carried out in accordance with the guidelines set forth in Sections 1 and 2 of Article 10 of Circular No. 225/2010/TT-BTC.

Article 7. Accounting for state budget revenues and expenditures for monetary aid managed directly by programs and projects under the Ministry of Health

1. Quarterly, after receiving the notification from the Ministry of Finance regarding the recorded receipts and provisional payments for monetary aid to the Ministry of Health, within five working days from the date of receipt of the notification, the Ministry of Health will issue a notification to programs and projects according to the form specified in Appendix 3 attached hereto for tracking provisional payments.

2. Not later than fifteen days after the end of the quarter, units must compile all expenditure vouchers in the quarter that meet the conditions for provisional payment, prepare a report requesting provisional payment for monetary aid in the quarter, and send it to the Ministry of Health (Department of Planning and Finance) for confirmation of provisional payment for the program or project.

Documents supporting the confirmation of provisional payment for the program or project include:

a) A provisional payment request list according to the form specified in Appendix 4 attached hereto;

b) A copy of the approved annual financial plan or project activity budget;

c) A copy of the monetary aid confirmation according to Model C3-HD/XNVT "Monetary Aid Confirmation Form" issued together with Circular No. 225/2010/TT-BTC.

3. Within five working days, the Ministry of Health will review, verify, and confirm the accuracy of the budget lines and activity lines on the provisional payment report prepared by units compared to the approved detailed financial plan or budget; simultaneously, it will consolidate and send to the Ministry of Finance to prepare a "Request for Provisional Payment of Aid Funds Already Recorded as Receipts and Expenditures," detailing each project, sent to the State Treasury for accounting from provisional payment to actual expenditure.

4. After receiving the "Request for Provisional Payment of Aid Funds Already Recorded as Receipts and Expenditures" from the Ministry of Finance, within five working days, the Ministry of Health will issue a notification to units according to the form specified in Appendix 5 attached hereto for tracking final settlement of aid utilization.

5. Programs and projects must not delay their requests for provisional payment during the year beyond the deadline for adjusting the state budget settlement as stipulated.

6. At the conclusion of the state budget adjustment period, any remaining aid funds already recorded as receipts in the state budget and provisional payments made to units but not yet settled or utilized will be transferred to the next year for provisional payment according to established regulations or may continue to be used according to the provisions of the donor.

Article 8. Budget Accounting for Foreign Aid in the Form of Goods, Materials, and Equipment

1. Quarterly, after receiving the notification from the Ministry of Finance regarding the recorded revenue and expenditure figures of the state budget for foreign aid in the form of goods, materials, and equipment, within five working days, the Ministry of Health will notify the relevant units to monitor the final settlement of the use of such aid.

2. The above-mentioned guidance on budget accounting shall only apply to imported goods or goods purchased domestically directly by the donor and transferred to the using units. For goods, materials, and equipment imported or purchased from sources of foreign aid in the form of money, when declaring and confirming the aid, the units need to mark the section "Request not to account for the state budget for this declaration confirmation of aid" so that the Ministry of Finance does not double-account the aid in the form of goods and money.

Article 9. Budget Accounting for Foreign Aid in the Form of Goods Used for Basic Construction Projects under the "Key Handover" Aid Model

1. Quarterly, after receiving the notification from the Ministry of Finance regarding the recorded provisional advance figures of the state budget for foreign aid in the form of goods used for basic construction projects under the "Key Handover" aid model, within five working days, the Ministry of Health will notify the relevant units to monitor and compile the final settlement report when the project is completed.

2. After the completion and handover for use of the project, the units collect all declaration confirmation forms of aid and related documents and evidence concerning the construction of the project to prepare the "Final Settlement Report of Completed Project" as stipulated in Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance on final settlement of completed projects funded by state capital, and submit it to the Ministry of Health (Department of Planning and Finance) as the basis for requesting the Ministry of Finance to recover the provisional advances according to the value of the handed-over aid project.

Article 10. Adjustment of State Budget Accounting

1. Adjustment of state budget accounting is carried out regularly throughout the year to address discrepancies between recorded revenue and expenditure figures of the state budget and the actual final settlement of foreign aid usage.

2. The process and deadlines for adjusting the recorded revenue and expenditure figures of the state budget annually are specified in Clause 2, 3, 4, and 5 of Article 11 of Circular No. 225/2010/TT-BTC.

Article 11. Reporting System

1. Regularly quarterly and at the end of the year, units conduct reconciliation of state budget accounting figures with the Ministry of Health, complete closing procedures, prepare quarterly and annual settlement reports, and send them to the Ministry of Health (Department of Planning and Finance) in accordance with current regulations.

2. The Ministry of Health checks and reconciles state budget accounting figures and figures on quarterly and annual settlement reports compiled by units and submitted to the Ministry of Finance in accordance with the prescribed time limits.

Article 12. Responsibilities of Agencies and Units in State Budget Accounting for Non-Repayable Foreign Aid Managed by the Ministry of Health

1. Responsibilities of Aid Receiving Units:

a) Adhere to financial management regulations in accordance with current national regulations and guidelines issued by the Ministry of Health in this Circular;

b) Spend according to the approved project documentation and funds, for the intended purpose, for the intended beneficiaries, and bear responsibility for the legality and validity of invoices and other supporting documents proving economic transactions;

c) Prepare quarterly final payment reports on time as required to allow the Ministry of Health to consolidate and submit to the Ministry of Finance for state budget accounting procedures;

d) Heads of aid-receiving units are responsible for:

- Deciding on expenditures in accordance with established standards and levels within the financial plan or budget allocated by authorized authorities;

- Managing and utilizing program and project budgets in accordance with established standards, levels, purposes, and ensuring economy and effectiveness.

2. Responsibilities of the Department of Planning and Finance, Ministry of Health:

a) Guide the implementation of procedures for confirming payments and recording revenues and expenditures of the state budget for non-repayable foreign aid managed by the Ministry of Health;

b) Notify units of provisional advance figures and confirmed payment figures already recorded for monitoring and final settlement of aid usage;

c) Confirm on provisional payment reports of programs, projects, and units;

d) Regularly or unexpectedly inspect compliance with current national financial management regulations and guidelines in this Circular at units managing non-repayable foreign aid.

Chapter III

IMPLEMENTING PROVISIONS

Article 13. Effective Date

This Circular takes effect from March 15, 2013.

Article 14. Implementation Organization

The Department of Planning and Finance is responsible for organizing guidance, directing, inspecting, and auditing the implementation of this Circular in coordination with relevant Departments, Bureaus, General Departments, and related units.

During implementation, if there are difficulties, obstacles, or new issues arising, please report to the Ministry of Health (Department of Planning and Finance) for timely consideration and resolution.