Circular No. 100/2016/TT-BTC guides the financial management mechanism for the JICA loan funds for the human resource development component and the research project component under the Can Tho University Upgrading Project.

CIRCULAR

Guidelines on the financial management mechanism for JICA loan funds for the human resource development component and the research project component of the Can Tho University Upgrade Project

Pursuant to the Public Debt Management Law No. 29/2009/QH11 dated June 17, 2009;

Pursuant to the Government Decree No. 16/2016/NĐ-CP dated March 16, 2016 on the management and use of official development assistance (ODA) and preferential loan funds from donors;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing the Loan Agreement VN14-P6 signed on July 4, 2015 between the Government of the Socialist Republic of Vietnam and the Japan International Cooperation Agency (JICA) for the Can Tho University Upgrade Project;

This Circular takes effect from February 15, 2025.

The Minister of Finance issues this Circular guiding the financial management mechanism for JICA loan funds for the human resource development component and the research project component of the Can Tho University Upgrade Project.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the expenditure standards, procedures for withdrawing funds, auditing work, monitoring, reporting, and responsibilities of relevant agencies, organizations, and individuals regarding the use of JICA loan funds under the Loan Agreement VN14-P6 signed on July 4, 2015 between the Government of the Socialist Republic of Vietnam and JICA for the human resource development component and the research project component of the Can Tho University Upgrade Project.

Article 2. Applicability

This Circular applies to agencies, organizations, and individuals involved in managing and using JICA loan funds for the Can Tho University Upgrade Project.

Article 3. Explanation of Terms

The concepts and terms used in this Circular are understood as follows:

1. Project: is the Can Tho University Upgrade Project approved pursuant to Decision No. 938/QĐ-BGDĐT dated March 27, 2015 of the Ministry of Education and Training.

2. JICA: is the Japan International Cooperation Agency.

3. Loan Agreement: is the Loan Agreement VN14-P6 signed on July 4, 2015 between the Government of the Socialist Republic of Vietnam and JICA for the Project.

4. JICA Loan Funds: are the government loan funds borrowed from JICA for the Project under the Loan Agreement.

5. Project Managing Authority: is the Ministry of Education and Training.

6. Project Owner: is Can Tho University.

7. Project Management Board: is the Can Tho University Upgrade Project Management Board established by Can Tho University pursuant to Decision No. 1179/QĐ-ĐHCT dated April 24, 2015 and subsequent amendments and supplements (if any) (hereinafter referred to as the PMB).

8. Partner Universities in Japan: are the universities specified in the feasibility study report of the "Can Tho University Upgrade" project approved by the Ministry of Education and Training pursuant to Decision No. 938/QĐ-BGDĐT dated March 27, 2015; in case of changes in partner universities, such changes must be approved by the competent authority.

9. Trainees: are Can Tho University staff members selected and employed by Can Tho University to study in Japan according to decisions of Can Tho University.

10. Human Resource Development Component includes: doctoral, master's training programs, and short-term training and research programs in Japan.

11. Research Project Component: is the cooperation research component in agriculture, aquaculture, environment, and related fields according to the agreement between Can Tho University and partner universities in Japan.

12. Project Serving Bank: is the Vietnam Joint Stock Commercial Bank for Investment and Development.

13. Refinancing Lending Institution: is the institution managing the refinancing loan from the Ministry of Finance to the Project Owner for the JICA loan funds for the human resource development component and the research project component.

14. Expenditure Controlling Agency: is the State Treasury.

Article 4. Financial Mechanism

The loan capital from the Government under the Loan Agreement for use in the human resource development component and the research project component shall be relented by the Ministry of Finance to the Project Owner to pay beneficiaries.

Chapter II

SPECIFIC PROVISIONS

Section 1

EXPENSES

Article 5. Expenses to be funded by the JICA loan

1. Costs of the human resource development component include the following expenses:

a) Tuition fees and related expenses;

b) Living expenses;

c) Airfare for students;

d) Health insurance;

đ) Travel expenses;

e) Passport processing and visa issuance expenses for students.

2. Costs of the research project component include the following expenses:

a) Consumable materials purchase costs (reagents, glassware, sampling equipment);

b) International conference registration fees;

c) Research result publication costs;

d) Office supplies and printing costs for research activities;

đ) Outsourcing service costs directly serving research activities.

Article 6. Expenses of the human resource development component

1. Tuition fees and related expenses

Tuition fees and mandatory fees (if any) payable to Japanese partner universities must be paid in Japanese Yen based on written notification from the universities to the Project Owner.

2. Living expenses

a) Living expenses for students are costs aimed at ensuring living needs while studying in Japan. Living expenses include: food, accommodation, daily travel expenses, study material and supply costs.

b) Living expenses for students are provided from the date of enrollment until the actual end of studies but not exceeding the duration specified in the decision to send students abroad by the Project Owner. Living expenses are paid in Japanese Yen and equivalent to 1,200 USD per student per month.

c) Living expenses are provided monthly or up to two months at a time at the beginning of each payment period.

3. Health insurance for students

a) The level of health insurance for students is provided in Japanese Yen based on actual expenditures but not exceeding 410 USD per student per year.

b) In cases where students purchase health insurance at a higher level than stipulated in this Circular, students must cover the difference themselves.

4. Round-trip airfare for students

Students are reimbursed for one round-trip ticket from Vietnam to their place of study and one round-trip ticket from their place of study back to Vietnam in economy class (based on actual expenditures) according to Circular No. 102/2012/TT-BTC dated June 21, 2012 of the Ministry of Finance regarding travel expense regulations for state officials traveling abroad funded by the State budget.

5. Travel expenses (to offset Vietnamese airport fees and transportation from the airport to residence) are provided once with a lump sum of 100 USD throughout the entire study period according to the decision to send students abroad.

6. Passport processing and visa issuance expenses for students are reimbursed once based on actual receipts from the passport and visa issuing authorities.

Article 7. Expenses of the research project component

1. Expenses related to the research project component as stipulated in Clause 2 of Article 5 of this Circular shall be settled based on approved budgets, supply contracts, and relevant documentation.

2. The authority approving the research project is responsible for organizing the review and approval of the research project budget according to current regulations and standards. In cases where there are no established standards for certain expenses, the approving authority may decide on necessary expenses and bear responsibility for its decisions under the law.

3. For expenses that must be tendered according to laws on bidding and related regulations, the Project Management Board must comply with the legal provisions on bidding.

Section 2

PROCEDURES FOR WITHDRAWING FUNDS AND MANAGING FUNDS

Article 8. Procedure for Withdrawal of Funds from Special Accounts

1. First Withdrawal to Special Accounts

a) The Ministry of Finance (Department of Debt Management and External Finance) requests the Bank serving to open special accounts for the project at the Tokyo-Mitsubishi Bank for the Human Resource Development Component under the Agreement (Special Account A).

b) The Project Management Board requests the Bank serving to open special accounts for the project at the Tokyo-Mitsubishi Bank for the Research Project Component (Special Account B).

c) The first withdrawal to special accounts shall be based on the limit (or ceiling) of the special account stipulated in the Loan Agreement, and the maximum expenditure plan for the next three months of the relevant component.

To make the first withdrawal to special accounts, the Project Management Board sends the Ministry of Finance a dossier including a letter requesting the withdrawal and a detailed expenditure plan for the next three months. Within five working days after receiving complete and valid documents, the Ministry of Finance (Department of Debt Management and External Finance) examines and signs the withdrawal request sent to JICA.

2. Procedure and Process for Payment from Special Account A

a) Students open an account at the Bank or Branch of Tokyo-Mitsubishi Bank and notify the Project Management Board of their account number. In cases where students request transfers to accounts not within the Tokyo-Mitsubishi Bank system, they must bear any resulting transfer fees (if applicable).

b) Expenditures from Special Account A are subject to pre-expenditure control mechanisms.

c) To carry out payments from Special Account A, the Project Management Board sends the Ministry of Finance (Department of Debt Management and External Finance) and the expenditure control agency a payment request dossier in accordance with Articles 9 and 10 of this Circular.

d) Within five working days from the date of receipt of complete and valid payment documents, the Ministry of Finance (Department of Debt Management and External Finance) signs a letter requesting the transfer of funds to the serving Bank.

3. Procedure and Process for Payment from Special Account B

a) Expenditures from Special Account B are subject to pre-expenditure control mechanisms.

b) To carry out payments from Special Account B, the Project Management Board sends the serving Bank and the expenditure control agency a payment request dossier in accordance with Articles 9 and 11 of this Circular.

c) Within two working days from the date of receipt of complete and valid payment documents, the serving Bank transfers payment to the contractor/supplier/beneficiary as requested by the Project Management Board.

4. Procedure and Process for Additional Withdrawals from Special Accounts: Within five working days from the date of receipt of complete and valid payment documents as stipulated in Article 12 of this Circular, the Ministry of Finance (Department of Debt Management and External Finance) signs a withdrawal request sent to JICA to request additional withdrawals for the project.

Article 9. Legal Documents Sent Once

1. The Project Management Board sends the Ministry of Finance, and simultaneously sends the expenditure control agency, the following documents as legal basis for managing payments for the Project:

a) A copy of the Loan Agreement (Vietnamese translation with signature and seal of the project owner). This document is only sent to the expenditure control agency;

b) Copies of the Investment Decision for the project and its components (if any); Approval Decision for the total budget estimate and component budgets (if any) (verified by the Project Owner);

c) Copies of the Employment Contract and Decision to send employees abroad for study, verified by the Project Owner or the Project Management Board (for the Human Resource Development Component);

d) Copies of the Training Contracts signed between the Project Management Board and Japanese partner universities, accompanied by a Vietnamese translation with signature and seal of the Project Management Board;

đ) Copies of Contracts signed between the Project Management Board and contractors/service providers, verified by the Project Owner. For contracts only signed in a foreign language, a Vietnamese translation with signature and seal of the Project Management Board must also be submitted;

e) Original Annual Capital Plan of the Project approved by the competent authority;

g) Budget estimates of research project component costs approved by the Project Owner.

2. The Project Management Board sends once-off legal documents to JICA as the basis for managing payments for the project and additional withdrawals to special accounts. The dossier includes the following documents:

a) Copies of the Employment Contract and Decision to send employees abroad for study, verified by the Project Owner or the Project Management Board (for the Human Resource Development Component);

b) Copies of Contracts signed between the Project Management Board and contractors/service providers, verified by the Project Owner or the Project Management Board.

c) Copies of Training Contracts signed between the Project Management Board and Japanese partner universities, verified by the Project Owner or the Project Management Board.

3. The Project Owner and the Project Management Board are responsible under the law for the authenticity of the copies provided to relevant agencies.

Article 10. Payment Documents from Special Account A

1. For each payment installment, the Project Management Board shall prepare and submit to the disbursement control agency the payment documents specified below, corresponding to the specific content of each expenditure item as follows:

a) Payment of tuition fees and related expenses, health insurance for students, air tickets, passport processing costs, visa fees:

The payment request of Japanese partner universities for tuition fees and related expenses (certified copy by the Project Owner); the payment request of the airline ticket agent according to the sponsor's prescribed form (certified copy by the Project Owner);

The invoice for payment request of the supplier for health insurance, air tickets, passport processing costs, visa fees (certified copy by the Project Owner); Quotation from at least two airlines (for air ticket payment requests);

b) Living expenses, travel expenses:

The letter requesting payment from the Project Management Board attached with a detailed list according to Form 02 issued together with this Circular;

2. To withdraw funds from Special Account A, for each payment installment, the Project Management Board shall prepare and submit to the Ministry of Finance the payment documents specified below, corresponding to the specific content of each expenditure item as follows:

a) Payment of tuition fees and related expenses, health insurance for students, air tickets, passport processing costs, visa fees:

The letter requesting payment from the Project Management Board attached with a detailed list of payment items according to Forms 01, 02, and 03 issued together with this Circular;

The payment request of Japanese partner universities for tuition fees and related expenses (certified copy by the Project Owner); the payment request of the airline ticket agent according to the sponsor's prescribed form (certified copy by the Project Owner);

The invoice for payment request of the supplier for health insurance, air tickets, passport processing costs, visa fees (certified copy by the Project Owner);

The payment request form with confirmation from the disbursement control agency (original);

b) Living expenses, travel expenses:

The letter requesting payment from the Project Management Board attached with a detailed list according to Form 02 issued together with this Circular;

The payment request form with confirmation from the disbursement control agency (original);

Article 11. Payment Documents from Special Account B

1. For each payment installment, the Project Management Board shall prepare and submit to the disbursement control agency the following documents:

a) Detailed list of expense items requested for payment from Special Account B according to Form 04 issued together with this Circular.

b) Invoices and supporting documents for expense items (certified copies by the Project Management Board), for expense items that cannot have invoices or supporting documents, there must be a reasonable explanation and confirmation by the Project Management Board, and the agreement on payment from the Project Owner to serve as the basis for disbursement control and payment.

The disbursement control agency bases its actions on the payment terms stipulated in the Contract (number of payments, payment stages, payment dates, and payment conditions).

The Project Owner and the Project Management Board are responsible for the accuracy and legality of the actual volume of work performed, rates, unit prices, and budgets for various tasks; the disbursement control agency does not bear responsibility for these issues.

2. To withdraw funds from Special Account B, for each payment installment, the Project Management Board shall prepare and submit to the serving bank: a payment authorization, a payment request form with confirmation (original) from the disbursement control agency to the serving bank for payment to the beneficiary (contractor, goods/service provider).

Article 12. Supplementary Withdrawal Documents for Special Accounts

1. Supplementary withdrawal from Special Account A:

To withdraw supplementary funds from Special Account A, the Project Management Board shall submit the following documents to the Ministry of Finance:

a) Letter requesting supplementary withdrawal from the special account;

b) Budget plan for spending from the special account for the next three months;

c) List prepared and confirmed by the Project Management Board, clearly showing each expense item from the special account, number and date of the approval document from the Ministry of Finance;

d) Bank transfer receipt (original);

e) Invoices and supporting documents corresponding to the payment regulations from the special account for the expense items as stipulated in Article 10 of this Circular (certified copies). These documents are to be sent to JICA;

2. Supplementary withdrawal from Special Account B:

To withdraw supplementary funds from Special Account B, the Project Management Board shall submit the following documents to the Ministry of Finance:

a) Letter requesting supplementary withdrawal from Special Account B;

b) Budget plan for spending from the special account for the next three months;

c) Statement of expenses from the special account (according to JICA's format) at Form 04 issued together with this Circular;

Article 13. Settlement and Compensation for Training Costs

1. Settlement: The annual settlement and final settlement upon completion of the program shall be carried out in accordance with Circular No. 218/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on financial management for programs and projects using official development assistance (ODA) and preferential loans from foreign sponsors.

2. Compensation for Training Costs:

a) Trainees sent to Japan by the Project Leader who fail to return to their home country after completing their course, or return late without justifiable reasons, or fail to complete their course as decided by the project must compensate for the training costs.

b) The compensation for training costs shall be implemented in accordance with Decree No. 143/2013/NĐ-CP dated October 24, 2013 of the Government on compensation for scholarships and training costs; Circular No. 03/2011/TT-BNV dated January 25, 2011 of the Ministry of Home Affairs guiding the implementation of certain provisions of Decree No. 18/2010/NĐ-CP on training and cadre development systems; Circular No. 15/2012/TT-BNV dated December 25, 2012 of the Ministry of Home Affairs guiding recruitment, signing employment contracts, and compensating training and development costs for civil servants; and Circular No. 89/2006/TT-BTC dated September 29, 2006 of the Ministry of Finance guiding the management, use, and settlement of severance pay and training cost recovery funds.

c) Japanese partner universities must fully compensate for the paid but unused costs due to the fault of the Japanese partner universities according to the contract signed with the project.

d) The Project Leader is responsible for strictly managing trainees' studies and promptly recovering training costs that need to be compensated as stipulated in points a, b, and c of this clause and returning them to the State Budget.

Article 14. Settlement of Costs for Implementing the Research Project Component

1. The settlement of costs for implementing the research project component shall be carried out in accordance with Article 14 of Joint Circular No. 27/2015/TTLT-BKHCN-BTC dated December 30, 2015 of the Ministry of Finance and the Ministry of Science and Technology on budget allocation for the implementation of scientific and technological tasks using the State Budget.

2. Handling of incomplete research projects shall be carried out in accordance with Joint Circular No. 27/2015/TTLT-BKHCN-BTC dated December 30, 2015 of the Ministry of Finance and the Ministry of Science and Technology on budget allocation for the implementation of scientific and technological tasks using the State Budget.

Section 3

AUDITING, MONITORING, AND REPORTING WORK

Article 15. Reporting Responsibilities

1. Reporting responsibilities of the Managing Authority, Project Leader, and Project Management Board shall be carried out in accordance with Decree No. 16/2016/NĐ-CP dated March 16, 2016 of the Government on the management and use of official development assistance (ODA) and preferential loans from foreign sponsors, guiding documents, and provisions in the loan agreement.

2. Reporting responsibilities of the Serving Bank: Monthly, the Serving Bank is responsible for reporting to the account holder and the Ministry of Finance on the beginning balance, transaction details during the period, ending balance, and special reports when requested by the account holder or the Ministry of Finance.

Article 16. Audit Work

1. Annual audit of financial statements for the human resource development component and the research project component under the project implemented in accordance with Circular No. 218/2013/TT-BTC of the Ministry of Finance dated December 31, 2013 on financial management for programs and projects using official development assistance (ODA) and preferential foreign loans from sponsors.

2. As for costs under the research project component, they must be audited annually by an Independent Auditor and at the end of the project according to the Loan Agreement.

a) The Project Owner shall be responsible for selecting a legally operating independent auditing company in Vietnam, certified by the Ministry of Finance to have the necessary conditions for conducting auditing services, with experience in auditing projects using ODA funds, and must be approved by JICA. The Project Owner shall be responsible for signing a Contract with the independent auditing company. The selection of the auditing company must comply with the provisions of the Loan Agreement and the Law on Bidding. The expenses for independent auditing services for costs under the research project component shall be allocated from the loan funds according to the provisions of the Loan Agreement.

b) The annual audit report must be completed no later than June 1st of the following year. The final project audit report must be completed no later than six months after the completion of the project.

c) The previous year's audit report is one of the bases for disbursing funds for the next year's research project costs.

3. The Project Owner shall be responsible for sending the audit reports to the Ministry of Finance, the Ministry of Education and Training, the State Audit Agency, and JICA for monitoring and coordination.

Section 4

RESPONSIBILITIES OF THE AUTHORITIES, ORGANIZATIONS AND INDIVIDUALS INVOLVED

Article 17. Responsibilities of the Ministry of Finance

1. Implement the tasks and powers of the Ministry of Finance as stipulated in Decree No. 16/2016/NĐ-CP dated March 16, 2016 of the Government on the management and use of official development assistance (ODA) and preferential loans from foreign sponsors, guiding documents, and provisions in the Loan Agreement.

2. Carry out procedures for withdrawing funds from JICA in accordance with the Loan Agreement and this Circular.

3. Delegate the lending agency to monitor and recover the loan repayment to the state budget for human resource development costs and research project implementation costs from the Project Owner.

Article 18. Responsibilities of the Managing Authority

1. Perform the functions of the Managing Authority of the project as stipulated in Decree No. 16/2016/NĐ-CP dated March 16, 2016 of the Government on the management and use of official development assistance (ODA) and preferential loan funds from sponsors.

2. Bear full responsibility for the effective use of JICA loan funds for the project.

Article 19. Responsibilities of the Project Owner

1. Perform the functions of the Project Owner as stipulated in Decree No. 16/2016/NĐ-CP dated March 16, 2016 of the Government on the management and use of official development assistance (ODA) and preferential loan funds from sponsors.

2. Manage and oversee the use of JICA loan funds for their intended purpose, effectively, and in compliance with legal regulations.

3. Bear responsibility as the Project Owner for the project, managing and using funds for their intended purpose, on schedule, in compliance with regulations, ensuring effectiveness.

4. Establish a public selection committee for trainees that targets the appropriate training subjects and aligns with the project's training objectives.

5. Establish a research committee to select and approve research projects publicly, aligning with the project's objectives.

6. Prepare financial statements as required; complete and submit the annual settlement report and final project settlement report in accordance with regulations for approval by the Managing Authority.

7. Carry out withdrawal procedures in compliance with the regulations set forth in this Circular.

8. Maintain accounting records, expenditure files, audit verification documents proving the legitimacy of project expenditures; manage project accounts.

9. Recover funds that were improperly paid or advanced and not used for the project as required by law and this Circular, and return them to the State Budget.

10. Carry out procedures to recognize debt with the lending agency for human resource development costs and research project implementation costs in accordance with Decree No. 78/2010/NĐ-CP of the Government dated July 14, 2010 on relending of foreign government loans and the relending contract provisions.

11. Allocate sufficient and timely counterpart funds for the project. Fully and timely repay relending debts according to the relending contract.

Article 20. Responsibilities of the State Treasury

The State Treasury shall be responsible for controlling all components using JICA loan funds for the project in accordance with Circular No. 218/2013/TT-BTC of the Ministry of Finance dated December 31, 2013 guiding the financial management mechanism for programs and projects using official development assistance (ODA) and preferential foreign loans from sponsors. Specifically, for the human resource development component and the research project component, the State Treasury shall be responsible for controlling expenditures in accordance with Circular No. 218/2013/TT-BTC of the Ministry of Finance dated December 31, 2013 mentioned above, and the provisions of this Circular.

Article 21. Responsibilities of the Refinancing Agency

The Refinancing Agency shall fulfill all tasks assigned by the Ministry of Finance through the refinancing agreement for the JICA loan funds allocated to the human resource development component and the research project component, in accordance with the provisions on refinancing foreign loan funds set forth by the Government.

Article 22. Responsibilities of the Trainee

1. Strictly comply with the decision to send for study issued by the Project Owner.

2. Be subject to management by the school and the Vietnamese representative office where the trainee is studying.

3. Report academic results certified by the school to the Project Owner every six months.

4. Repay expenses as stipulated in Clause 2, Article 13, Section 2, Chapter II of this Circular if the trainee does not return to the country upon completion of the course without a valid reason, or returns late without a valid reason, or fails to complete the course as decided by the project.

5. Open an account at the Bank or its branch in Tokyo-Mitsubishi Bank and notify the Project Management Board of the account number. If the trainee requests funds to be transferred to an account outside the Tokyo-Mitsubishi Bank system, they must bear any resulting transfer fees (if applicable).

Article 23. Responsibilities of the Serving Bank

The Serving Bank shall process foreign exchange settlement procedures (withdrawing funds to a special account) and payments from the special account based on the request of the Ministry of Finance (for Special Account A) and the Project Management Board (for Special Account B), and shall fulfill the reporting responsibilities as prescribed in Article 15 of this Circular.

Chapter III

IMPLEMENTATION

Article 24. Effective Date

1. This Circular takes effect from August 15, 2016.

2. During its implementation, if the regulatory documents cited for application in this Circular are amended, supplemented, or replaced by new documents, then the new documents shall apply.

3. During implementation, if there are any difficulties, relevant agencies are requested to promptly report them to the Ministry of Finance for consideration and resolution./.