Joint Circular No. 103/1999/TTLT/BTC-BNNPTNT guiding the management, allocation, and settlement of financial expenses for the National Rural Clean Water and Environmental Protection Program

JOINT CIRCULAR

Guidelines for managing, allocating, and settling accounts for the budget of

The National Clean Water and Rural Environmental Sanitation Program

Implementing Decision No. 237/1998/QD-TTg dated December 3, 1998 of the Prime Minister approving the National Target Program on Clean Water and Rural Environmental Sanitation;

Pursuant to Decision No. 531/TTg dated August 8, 1996 of the Prime Minister on managing national programs and Decision No. 05/1998/QD-TTg dated January 14, 1998 of the Prime Minister on managing national target programs;

Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of management authority, preparation, implementation, and settlement of state budget; and Decree No. 51/1998/CP dated July 18, 1998 of the Government amending and supplementing certain provisions of Decree No. 87/CP;

I. GENERAL PROVISIONS

1/ Sources of funds for the Program include:

- State budget funds (including both borrowed funds and aid)

- Other sources of funds: funds raised from the people, funds from other economic sectors.

2/ Investment principles:

- The Program prioritizes investment in border areas, islands, ethnic minority regions, and other rural areas facing difficulties.

- The allocation of funds for implementing the Program must be based on approved projects and follow the principle that the state and the people work together.

- Annual allocation of funds for the Program shall be based on the State budget's capacity and other sources of mobilization.

3/ Funds for the National Clean Water and Rural Environmental Sanitation Program must be managed and expended according to their intended purpose, correct recipients, and applicable regulations. Reports and settlements shall be made in accordance with current regulations.

II. SPECIFIC PROVISIONS

A/ CONTENT AND LEVEL OF EXPENDITURE:

1/ Expenditure from operating funds:

1.1/ Content of expenditure:

- Support for building models of sanitary latrines

- Support for building models of livestock waste treatment facilities

- Social mobilization and communication, training - Application of scientific and technological advancements to the program (if applicable)

- Management and direction costs of the Program Steering Committee.

1.2/ Level of expenditure:

a/ Model project for sanitary latrines:

- The maximum support level from the State for a commune to implement a model project is 100 million VND.

- Specific expenditure items for a model include:

+ Costs for selecting construction sites, interviewing, and collecting data;

+ Maximum technical guidance staff cost at 200,000 VND/month (26 days) for direct model guidance days (in cases where non-state civil servants are hired); For state civil servants, travel expenses will be reimbursed according to Circular No. 94/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance regarding travel expenses for state civil servants traveling domestically;

+ Social mobilization and technical guidance for the community;

+ Project inspection and acceptance;

+ Support for part of materials (cement, bricks, sand, etc.) for participating households, this expenditure item accounts for approximately 70% to 80% of the budget for one model, specifically: For households in 1,715 poor communes, the State supports up to 200,000 VND/household. For other areas, the State supports up to 150,000 VND/household.

b/ Project for building models of livestock waste treatment facilities:

- The maximum support level from the State for a commune to implement a model project is 100 million VND.

- Expenditure items for the model are similar to those for the sanitary latrine model project mentioned above. Specifically, the State's support for participating farmer households is as follows:

+ For sheds housing up to 10 animals: The maximum State support is 200,000 VND/household

+ For sheds housing more than 10 animals: The maximum State support is 300,000 VND/household. If biogas installation is included, an additional 100,000 VND/household is provided.

For households in 1,715 poor communes, the support level is increased by 20%. If a commune implements both the sanitary latrine model and the livestock waste treatment facility model, the maximum State support for the combined model is 100 million VND.

c/ Social mobilization and communication expenditures include: Broadcasting news on mass media such as radio, television, newspapers, and other information channels; Printing specialized training materials, leaflets, posters, films. Specific expenditure levels are based on current regulations.

d/ Training activities:

Training material costs for classes;

Payment for lecturers teaching theory up to 20,000 VND/session, and practical instructors up to 15,000 VND/session;

Purchase of practical equipment and materials (if necessary);

Class management costs: drinking water, rental of conference halls, transportation expenses for instructors and class organizers;

Accommodation, food, and travel expenses for trainees during training sessions are supported according to Circular No. 93/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on meeting expense regulations.

e/ Application of scientific and technological advancements to the program (if applicable): Based on successful research results concerning solutions and technologies for providing clean water and rural environmental sanitation, the program applies these advancements through specific models to ensure economic feasibility for residents and suitability for each ecological region.

h/ Management and direction costs of the Program Steering Committee include: Conferences, seminars, inspection, direction, evaluation, plan formulation and defense, hiring office staff (if there are no兼任的工作人员)，中期和最终总结。中央级项目管理委员会的支出上限不超过当年项目事业经费总额的5%，地方级项目管理委员会的支出上限不超过当年项目总经费（包括事业经费和基本建设投资）的1%。

2/ Expenditure from basic construction investment funds:

2.1/ Content of expenditure:

- Support for constructing clean water supply projects

- Support for treating village industry wastewater

- Planning and preparatory investment funds

2.2/ Specific level of expenditure:

2.2.1/ Clean water supply projects:

a/ Centralized water supply projects:

- The State provides partial support for cement, bricks, sand, and equipment for the upstream section, water treatment plant, and main pipeline of the project.

- The specific support level is as follows:

+ For water supply projects serving one village (hamlet, ward): The State provides support not exceeding 40% of the approved value of the project, but not exceeding 120 million VND.

For mountainous, island, and 1,715 poor commune regions, the State provides support for a village (hamlet, ward) project not exceeding 60% of the approved value of the project, but not exceeding 150 million VND.

+ Central gravity-fed water supply project (only implemented in high mountainous areas): The State supports up to 90% of the value of the construction works approved by competent authorities, but not exceeding 100 million VND per village (commune, ward).

Based on the support level for one village (commune, ward) mentioned above; Ministries, sectors, provincial/municipal People's Committees under the central government approve the support levels for inter-village (inter-commune, inter-ward) projects, communes implementing projects in accordance with the annual budget allocation capacity.

b/ Decentralized water supply works:

- The State provides support to poor households and families of social policy beneficiaries, households in 1,715 poor communes, high mountains, islands.

- The State provides support for some materials such as plastic pipes, hand pumps, cement, rainwater collection channels depending on each type of water supply.

- Specific support levels are as follows:

+ Small diameter drilled well type: The State supports up to 300,000 VND per household (in high mountains, islands, and 1,715 poor communes, the State supports up to 500,000 VND per household)

+ Dug well type: The State supports up to 100,000 VND per household (for high mountains, islands, and 1,715 poor communes, the State supports up to 200,000 VND per household)

+ Rainwater storage tank (4 m3): The State supports up to 300,000 VND per household; Rainwater container supported up to 100,000 VND per household (for water-scarce areas).

2. 2.2/ Wastewater treatment project for craft villages:

- Content of support: The State provides support for some materials such as cement, bricks, sand for clusters of wastewater treatment works or main channels, equipment.

- Specific support level: The State supports up to 40% of the value of the construction works approved by competent authorities, but not exceeding 80 million VND per village (commune, ward). Based on the support level for one village (commune, ward) mentioned above; Ministries, sectors, provincial/municipal People's Committees under the central government approve the support levels for inter-village (commune, ward) projects, communes implementing projects in accordance with the annual budget allocation capacity.

2. 2.3/ Planning and investment preparation capital: The State allocates according to the project and economic technical justification approved by competent authorities. For clean water supply works under foreign-funded projects with specific content and addresses, the funding is allocated according to the approved project.

B/ FINANCIAL MANAGEMENT OF THE PROGRAM:

1/ Budget preparation and allocation:

- Annually, based on the Prime Minister's Directive on building socio-economic development plans; Guidelines on information and budgetary transaction checks issued by the Ministry of Finance; The Ministry of Agriculture and Rural Development (the program management authority) supplements and reviews for ministries, sectors, localities, sends to the Ministry of Finance, the Ministry of Planning and Investment for consolidation, approval by the National Assembly Standing Committee and the Government, and notification of expenditure tasks to ministries, specialized sectors, and localities.

After receiving the program's financial notification, ministries, sectors, and municipal committees allocate and transact detailed budgets to direct participating units in line with the program's objectives and content, sending to the Ministry of Agriculture and Rural Development (Central Program Management Board), the Ministry of Finance, and the Ministry of Planning and Investment.

- Based on the provisions of Circular No. 103/1998/TT-BTC dated July 18, 1998, of the Ministry of Finance on guiding the decentralization, setting, implementation, and decision-making of state budgets and expenditure systems; program units allocated free of charge prepare detailed budgets according to the expenditure items and the state budget classification, sending to the Ministry of Agriculture and Rural Development (Central Program Management Board Office), the Ministry of Finance, the Central Treasury, and the project management agency (for funds of central ministries and specialized sectors implementing the program) and sent to the Department of Finance and Materials, the Central Treasury, the Department of Agriculture and Rural Development, and the city (for local experience).

The Ministry of Finance and the Department of Finance and Prices have the responsibility to check the provisional expenditure content of units if they find errors or inconsistencies, they require the unit to adjust.

Calculations for online calculation units must ensure consistency in total volume and detail according to the assigned objectives.

Specifically for construction investment capital: prepare contingency plans according to current regulations on construction investment.

2/ Capital disbursement:

a/ For professional business sources:

- At the central level: Based on the annual budget assigned, direct program participants prepare quarterly detailed budgets divided by month and expenditure item, sending to the supervising agency and the treasury where the unit transacts. The supervising agency compiles and sends to the Ministry of Finance as the basis for disbursing funds and controlling expenditures according to regulations. The Ministry of Finance directly disburses to ministries, sectors, and central agencies participating in the program according to the budget and progress of tasks.

At the local level: Based on the list of project budgets assigned, direct program participants prepare quarterly detailed budgets divided by month and expenditure item, sending to the local program management agency, which aggregates and sends to the Department of Finance and Materials, the treasury where the unit transacts (in cases where the program funds are allocated to the local program management agency); Or sent to the Department of Finance and Prices, the program management agency, and the treasury where the unit transacts (in cases where funds are directly allocated to participating units), serving as the basis for disbursement according to the budget and progress of tasks approved by competent authorities and controlling expenditures according to regulations. The Ministry of Finance grants permission to provincial/municipal Departments of Finance and Prices to implement program responsibilities at the local level.

b/ For construction investment capital:

At the central level: The Ministry of Finance transfers capital through the General Investment Fund for disbursement and direct payment to ministries and central agencies according to current regulations on construction investment capital management.

At the local level: The Ministry of Finance grants authority to provincial/municipal Departments of Finance and Prices, which then transfer capital through the Investment Development Bureau for disbursement and payment to units according to construction investment capital management regulations.

3/ Inspection and decision-making on business operations:

- Inspection work: The Ministry of Agriculture and Rural Development, the Steering Committee for the National Program on Clean Water Supply and Environmental Sanitation in Rural Areas shall cooperate with financial agencies to conduct regular or special inspections regarding the implementation of state policies and regulations concerning the use of funds at both central and local levels.

- Regarding settlement: Units utilizing funds under the National Target Program on Clean Water Supply and Environmental Sanitation in Rural Areas must report on their implementation (quarterly, annually) and settle accounts for the Program in accordance with the accounting system for units issued together with Decision No. 999/TC-QĐ-CĐKT dated February 11, 1996, of the Minister of Finance, and the reporting and settlement regulations stipulated in Circular No. 103/1998/TT-BTC dated July 18, 1998, of the Ministry of Finance.

III. IMPLEMENTATION

1\. Units participating in the Clean Water Supply and Environmental Sanitation in Rural Areas Program are responsible for using business objectives correctly, targeting the right subjects, and adhering to the provisions set forth in this Circular and other current regulations; they must periodically (quarterly, annually) report on the use of funds to the project management entity and send copies to the competent financial authority.

2\. Ministries, sectors, and central agencies participating in the Program are responsible for inspecting subordinate units' compliance with financial management regulations, and periodically (quarterly, annually) reporting to the Ministry of Agriculture and Rural Development (National Program Steering Committee) and the Ministry of Finance on the progress of assigned tasks and the overall use of funds in implementing the Program.

At the local level: Provincial and municipal Program Steering Committees are responsible for supervising and inspecting participating units' compliance with financial management regulations, and periodically (quarterly, annually) reporting to the People's Committees of provinces and centrally-administered cities, the Ministry of Agriculture and Rural Development (National Program Steering Committee on Clean Water Supply and Environmental Sanitation in Rural Areas), and the Ministry of Finance on the progress and completion of assigned tasks and the use of funds in implementing the Program.

3\. The Ministry of Agriculture and Rural Development, the Central Steering Committee for the Clean Water Supply and Environmental Sanitation in Rural Areas Program are responsible for urging and inspecting ministries, sectors, and localities participating in the Program to comply fully with financial management regulations, coordinating with the Ministry of Finance and the Ministry of Planning and Investment to regularly inspect the achievements of the Program in ministries, sectors, and localities in terms of content and progress, and periodically (quarterly, annually) reporting to the Ministry of Finance and the Ministry of Planning and Investment on the progress and use of funds in the entire Program.

4\. This Circular takes effect from January 9, 1999; all conflicting regulations are hereby repealed.

During implementation, if there are any issues, units are requested to reflect them to the Joint Ministries for study and appropriate amendments.