Joint Circular No. 103/1999/TTLT/BTC-NN&PTNN guiding the management, allocation, and settlement of funds for the National Clean Water and Rural Environmental Sanitation Program.

CIRCULAR

JOINT CIRCULAR OF THE MINISTRY OF FINANCE AND THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT NO. 103/1999/TTLT/BTC-NN
AUGUST 21, 1999 GUIDING MANAGEMENT, ISSUANCE, AND SETTLEMENT OF EXPENSES FOR THE NATIONAL CLEAN WATER AND ENVIRONMENTAL SANITATION PROGRAM IN RURAL AREAS
RURAL ENVIRONMENTAL SANITATION

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

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

- Based on Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of management, preparation, implementation, and settlement of state budget; and Decree No. 51/1998/CP dated July 18, 1998 of the Government amending and supplementing certain articles of Decree No. 87/CP.

To strengthen financial management for the funding of the National Target Program on Clean Water and Environmental Sanitation in Rural Areas (referred to as the National Clean Water and Environmental Sanitation Program in Rural Areas); the Joint Circular of the Ministry of Finance and the Ministry of Agriculture and Rural Development guides the management, issuance, and settlement of budget expenses for the National Clean Water and Environmental Sanitation Program in Rural Areas as follows:

I/ GENERAL PROVISIONS:

1/ Sources of capital 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 mobilized resources.

3/ The expenses of the National Clean Water and Environmental Sanitation Program in Rural Areas must be managed and expended according to their intended purpose, correct recipients, and established regulations. Reports and settlements shall be conducted in accordance with current regulations.

II/ SPECIFIC PROVISIONS:

A/ CONTENT AND AMOUNT OF EXPENDITURE:

1/ Expenditure from operating funds:

1.1/ Content of expenditure:

- Expenditure for supporting the construction of sanitary latrine models

- Expenditure for supporting the construction of models for livestock waste treatment

- Expenditure for social mobilization and training

- Application of scientific and technological progress to the program (if applicable)

- Expenditure for management and direction by the Program Steering Committee

1.2/ Amount of expenditure:

a/ Project model for sanitary latrines:

- The maximum State support for a commune to implement a pilot model is 100 million VND.

- Specific expenditure items for a model include:

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

+ Expenditure for technical guidance staff, with a maximum of 200,000 VND/month (for 26 days) for direct supervision of the model (in cases where non-state civil servants are hired); For state civil servants, they will be reimbursed according to the travel allowance regulations stipulated in Circular No. 94/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance for state officials traveling within the country;

+ Social mobilization and technical guidance for the public;

+ Project inspection and acceptance;

+ Support for part of materials (cement, bricks, sand, etc.) for people participating in the model, this expenditure accounts for approximately 70% to 80% of the total cost 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 constructing models for livestock waste treatment:

- The maximum State support for a commune to implement a pilot model is 100 million VND.

- Content of expenditure for the model: Similar to the model project for sanitary latrines at point a above. Specifically, the State support for participating farmer households is as follows:

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

+ For pens with more than 10 animals: The maximum State support is 300,000 VND/household.

If biogas installation is included, an additional 100,000 VND/household will be supported.

For households in 1,715 poor communes, the support level will be increased by 20% compared to the above levels.

If a commune implements a combined model of sanitary latrines and livestock waste treatment, the maximum State support for the combined model is 100 million VND.

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

d/ Training expenditure:

Expenditure for teaching materials 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 applicable);

Class management costs: drinking water, rental of conference halls, transportation expenses for lecturers 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/ Expenditure for applying scientific and technological progress to the program (if applicable): Based on successful research results regarding solutions and technologies for providing clean water and environmental sanitation in rural areas, the program applies advanced technology through specific models to ensure economic feasibility for residents and suitability to each ecological region.

h/ Expenditure for management and direction by the Program Steering Committee includes: Conferences, seminars, inspection, guidance, evaluation, plan formulation and defense, hiring office staff (in cases without兼任人员), mid-term reviews, and final summaries. The maximum expenditure does not exceed 5% of the total operating fund of the Program for the central steering committee and does not exceed 1% of the total fund (including both operating and construction investment funds) for the provincial steering committee in the year.

2/ Expenditure from construction investment funds:

2.1/ Content of expenditure:

- Expenditure for supporting the construction of clean water supply facilities

- Expenditure for supporting wastewater treatment in craft villages

- Planning and preparatory investment funds

2.2/ Specific amount of expenditure:

2.2.1/ Clean water supply facilities:

a/ Centralized water supply facilities:

- The State supports a portion of cement, bricks, sand, and equipment for the upstream section, water treatment plant, and main pipeline of the facility.

- The specific support level is as follows:

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

For highland, island, and 1,715 poor commune areas, the State supports projects serving one village (hamlet, ward) up to 60% of the approved value of the project, but not exceeding 150 million VND.

+ Central gravity-fed water supply project (only implemented in highland 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 level of support for one unit village (commune, ward) mentioned above; Ministries, sectors, provincial people's committees under the central government approve the level of support for inter-village (inter-commune, inter-ward) projects, communes implementing such projects in accordance with the annual budget allocation capacity.

b/ Decentralized water supply works:

- The State supports poor households and families of social policy beneficiaries, households in 1,715 poor communes, highlands, and islands.

- The State supports part of materials such as plastic pipes, hand pumps, cement, rainwater collection channels depending on each type of water supply system.

- The specific support level is as follows:

+ Small diameter well drilling project: The State supports up to 300,000 VND per household (in highlands, islands, and 1,715 poor communes, the State supports up to 500,000 VND per household).

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

+ Rainwater storage tank (4 cubic meters): The State supports up to 300,000 VND per household; Rainwater container the State supports up to 100,000 VND per household (for areas facing water shortages).

2.2.2/ Wastewater treatment project for craft villages:

- Content of support: The State supports part of materials such as cement, bricks, sand for clusters of wastewater treatment facilities or main drainage channels, equipment.

- Specific level of support: 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 level of support for one unit village (commune, ward) mentioned above; Ministries, sectors, provincial people's committees under the central government approve the level of support for inter-village (commune, ward) projects, communes implementing such 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 and technical justification approved by competent authorities.

For clean water supply projects under foreign-funded programs with specific content and locations, funding will be arranged 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 plans for socio-economic development; Circular guiding and allocating inspection numbers for state budget expenditure of the Ministry of Finance; The Ministry of Agriculture and Rural Development (the program management agency) allocates inspection numbers for ministries, sectors, localities, sends them to the Ministry of Finance, the Ministry of Planning and Investment for consolidation and submission to the Standing Committee of the National Assembly, the Government for approval and notification of tasks to be funded to ministries, sectors, and localities.

After receiving the program funding notification, ministries, sectors, and provincial people's committees under the central government allocate and assign budgets to units directly participating in the program in line with the program's objectives and content, sending them 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 guidelines for分级翻译任务，以下是第1部分的翻译结果：

The Ministry of Finance and Provincial Financial Departments have the responsibility to review the budget expenditure content of units, and if they find that the budget does not comply or is inappropriate, they shall require the unit to adjust it accordingly.

The allocation of budgets to subordinate budgetary units must ensure consistency in total amounts and details according to the assigned expenditure items.

Specifically for construction investment funds: the preparation of budgets shall be carried out in accordance with current regulations on construction investment.

2/ Allocation of funds:

a/ For operating funds:

- AT Central level: Based on the annual budget allocated, participating units directly in the program prepare quarterly expenditure budgets divided by month and by expenditure item, which are submitted to the superior managing authority and the Treasury where the unit conducts transactions. The superior managing authority aggregates these and submits them to the Ministry of Finance as the basis for fund allocation and expenditure control as prescribed. The Ministry of Finance directly allocates funds by quota to central ministries, sectors, and agencies participating in the Program according to the budget and progress of tasks.

- AT Local level: Based on the allocated state budget, participating units directly in the program prepare quarterly expenditure budgets divided by month and by expenditure item, which are submitted to the local program managing authority, the local program managing authority aggregates and submits them to the Provincial Financial Department-Price Control, and the Treasury where the unit conducts transactions (in cases where program funds are allocated through the local program managing authority); Or submit to the Provincial Financial Department-Price Control, the local program managing authority, and the Treasury where the unit conducts transactions (in cases of direct allocation to participating units in the program), serving as the basis for fund allocation according to the budget and progress of tasks approved by the competent authority and expenditure control as prescribed. The Ministry of Finance grants authority by quota to Provincial Financial Departments to carry out program tasks within their jurisdiction.

b/ For investment capital:

- AT Central level: The Ministry of Finance transfers capital through the Investment General Department for direct allocation and payment to central ministries and agencies according to current regulations on investment capital management.

- AT Local level: The Ministry of Finance grants authority to Provincial Financial Departments for Provincial Financial Departments to transfer capital to the Development Investment Department for allocation and payment to units according to investment capital management regulations.

3/ Inspection and settlement of funds:

- Inspection work: The Ministry of Agriculture and Rural Development, the National Program Management Board on Clean Water and Environmental Sanitation in Rural Areas cooperate with financial authorities to conduct regular or spot inspections on the implementation of state policies and systems regarding the use of funds at both the central and local levels.

- Regarding settlement: Units that use funds from the National Target Program on Rural Clean Water and Environmental Sanitation must report on the implementation situation (quarterly, annually) and settle the program's funds according to the accounting regulations for units issued together with Decision No. 999/TC-QĐ-CĐKT dated November 2, 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 Rural Clean Water and Environmental Sanitation Program shall be responsible for using funds for their intended purposes, for the designated beneficiaries, in accordance with the regulations set forth in this Circular and other current regulations; they shall periodically (quarterly, annually) report on the use of funds to the project management agency, and simultaneously send such reports to the same-level financial agency.

2/ Ministries, sectors, and central agencies participating in the Program shall be responsible for inspecting subordinate units' compliance with financial management regulations and periodically (quarterly, annually) report to the Ministry of Agriculture and Rural Development (Central Steering Committee of the Program) and the Ministry of Finance on the progress of work and the overall situation of fund usage in implementing the Program.

AT At the provincial level: The Provincial Steering Committee of the Program shall be responsible for urging and inspecting participating units' compliance with financial management regulations, and periodically (quarterly, annually) report to the People's Committees of provinces and centrally-administered cities, the Ministry of Agriculture and Rural Development (Central Steering Committee of the Rural Clean Water and Environmental Sanitation Program), and the Ministry of Finance on the progress of assigned tasks and the overall situation of fund usage in implementing the Program.

3/ The Ministry of Agriculture and Rural Development, the Central Steering Committee of the Rural Clean Water and Environmental Sanitation Program, shall be responsible for urging and inspecting ministries, sectors, and localities participating in the Program's compliance with financial management regulations, coordinating with the Ministry of Finance and the Ministry of Planning and Investment to regularly or突击检查各部委、行业和地方关于计划内容和进度的执行情况，并定期（季度、年度）向财政部和国家计委报告整个计划的执行进度和资金使用情况。

4/ This Circular shall take effect from September 1, 1999, and all provisions contrary to this Circular shall be abolished.

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