Circular No. 112/2004/TT-BTC guiding the management and use of funds for the Vietnam Children's Welfare Fund

CIRCULAR

Guidelines for Managing and Using the Vietnam Children's Welfare Fund

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002, and other current guiding documents implementing the State Budget Law;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 135/2003/QĐ-TTg dated July 9, 2003 of the Prime Minister on consolidating and developing the Vietnam Children's Welfare Fund;

To enhance the effectiveness of managing and using the Vietnam Children's Welfare Fund, the Ministry of Finance issues guidelines for managing and using the Vietnam Children's Welfare Fund as follows:

I - GENERAL PROVISIONS

1. The Vietnam Children's Welfare Fund was established with the purpose of mobilizing voluntary contributions from agencies, organizations, and individuals both domestically and internationally, international aid, and support from the state budget for the cause of protecting, caring for, and educating children.

2. The beneficiaries of the Vietnam Children's Welfare Fund include children in special circumstances, including: orphaned children without a place to stay, abandoned children; disabled children; victims of Agent Orange; children infected with HIV/AIDS; children engaged in heavy and dangerous work, exposed to toxic substances; children working away from home; street children; sexually abused children; drug-addicted children; children who violate the law; children in mountainous areas, remote regions, revolutionary bases, and disaster-stricken and epidemic-prone areas; support for specific children based on the requirements of sponsoring agencies, organizations, and individuals; other appropriate support in line with the objectives and purposes of the Fund.

3. The Vietnam Children's Welfare Fund shall open a separate account at the Bank and State Treasury for transactions; the year-end balance of the fund, including any state budget funds allocated (if applicable), shall be carried over to the next year for continued use.

4. Idle funds of the Fund may be deposited in savings accounts, purchased as government bonds, treasury bills, national securities, to preserve and increase the fund, serving the cause of protecting, caring for, and educating children.

5. The mobilization, management, and use of financial resources of the Vietnam Children's Welfare Fund must ensure compliance with the intended purpose, be effective according to the current financial management system of the state and the provisions of this Circular. The level of expenditure for special activities of the Fund shall be decided by the Minister, Head of the National Assembly Committee on Population, Family, and Children upon the proposal of the Director of the Vietnam Children's Welfare Fund, ensuring alignment with actual conditions and the capacity of the fund. For projects funded by sponsors, the content and level of expenditure shall be implemented according to agreements or signed documents between the Vietnam Children's Welfare Fund and the sponsor.

6. Children's welfare funds at all levels and sectors from central to local shall manage finances in accordance with the provisions of this Circular.

II - SPECIFIC PROVISIONS

1. Sources of income for the Vietnam Children's Welfare Fund:

Voluntary contributions in cash or kind from agencies, organizations, and individuals both domestically and internationally, and international aid.

Accepting targeted donations with specific addresses to implement according to the authorization of the donating agency, organization, or individual.

Support from the state budget for specific programs and projects.

Interest earned from bank deposits and other measures for preserving and increasing the fund that are permitted by law.

Other lawful income (if any).

2. Expenditure items of the Vietnam Children's Welfare Fund:

2.1. Direct expenditures for children in special circumstances, including:

(1) Expenditures to support disabled and severely disabled children, victims of Agent Orange to restore functions such as eye surgery, lip and palate repair surgery, orthopedic surgery, heart surgery, etc.

(2) Expenditures to support impoverished children suffering from malnutrition; orphaned children without a place to stay; abandoned children; children infected with HIV/AIDS; children engaged in heavy and dangerous work, exposed to toxic substances; children working away from home; street children; sexually abused children; drug-addicted children; children who violate the law.

(3) Expenditures to support children in particularly difficult mountainous, remote, ethnic minority, and revolutionary base areas: scholarships, building kindergarten classes, play areas, entertainment facilities, etc.

(4) Emergency expenditures for children in disaster and epidemic-stricken areas.

(5) Expenditures to support impoverished children, children of war heroes, martyrs, and families with meritorious service to the revolution who excel in overcoming difficulties to study.

(6) Expenditures to support impoverished children who cannot attend school through charitable classes.

(7) Expenditures to support impoverished children encountering other accidents and risks.

(8) Expenditures to support children with specific addresses based on the requirements of sponsoring agencies, organizations, and individuals.

(9) Other expenditures consistent with the objectives and purposes of the Fund.

Specific expenditure levels for the above items shall be decided by the Minister, Head of the National Assembly Committee on Population, Family, and Children upon the proposal of the Director of the Vietnam Children's Welfare Fund, ensuring alignment with actual conditions and the capacity of the fund. For sponsored projects, the content and level of expenditure shall be implemented according to agreements or signed documents between the Vietnam Children's Welfare Fund and the sponsor.

2.2. Expenditures for business management and administrative operations of the Fund:

Ten percent (10%) of total annual income (excluding donations, targeted and specific donations, and state budget support) shall be allocated for business management and administrative operations of the Fund, including: (1) Salaries, wages, and allowances (if any) for staff and employees involved in the operations of the Vietnam Children's Welfare Fund.

(2) Contributions (social insurance, health insurance, trade union fees) for staff and employees of the Fund according to current regulations of the state.

(3) Payment for public services.

(4) Office supplies.

(5) Communication, publicity, and liaison expenses (telephone charges, postal services, etc.).

(6) Expenses for mid-year and final reviews.

(7) Travel expenses.

(8) Rental expenses.

(9) Expenses for outbound and inbound delegations serving fundraising activities for the Fund.

(10) Repair and purchase expenses for fixed assets serving the operations of the Fund.

(11) Training and development expenses for Fund managers.

(12) Special business activity expenses of the Fund:

Expenses for publicity and mobilization to raise resources for the Vietnam Children's Welfare Fund.

Expenses for surveying, project planning, monitoring, evaluating programs and projects supporting children.

Rewards and incentives for units, organizations, and individuals contributing to the activities of the Vietnam Children's Welfare Fund.

Other special business activity expenses.

(13) Other expenses.

Other specific business expense items.

(13) Other expenses.

The level of expenditure for the aforementioned contents shall be based on the current financial expenditure standards and regulations of the State for administrative and public service agencies. For specific expenditures for the special business activities of the Fund (item (12) point 2.2 part II), the specific levels of expenditure for each content shall be decided by the Minister, Head of the Population, Family and Children Committee upon the proposal of the Director of the Vietnam Children's Aid Fund.

In the event that at the end of the year, the funds allocated 10% to cover management and administrative expenses have not been fully utilized, they shall be returned to the Fund.

3. Budget preparation, accounting, settlement of revenue and expenditure, and fund management

3.1. Preparation of budget for revenue and expenditure:

For state budget support funds: the preparation of the budget for revenue and expenditure shall be carried out in accordance with the provisions of Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law and other related documents.

For self-generated funds of the Fund: Annually, during the time specified for preparing the state budget, the Vietnam Children's Aid Fund shall be responsible for preparing the budget for revenue and expenditure to be submitted to the Minister, Head of the Population, Family and Children Committee for approval to be consolidated into the budget of the Population, Family and Children Committee.

3.2. Accounting records and settlement:

The Vietnam Children's Aid Fund must organize and implement accounting and statistical work in accordance with the laws on accounting and statistics; maintain books to record comprehensively the list of agencies, organizations, and individuals contributing and sponsoring, and the list and addresses of beneficiaries assisted by the Vietnam Children's Aid Fund.

The accounting records and settlement of the Vietnam Children's Aid Fund's funds shall be conducted according to the current financial accounting system for administrative and public service agencies. It is strictly prohibited to leave any revenue, expenditure, type of asset, fund money, debt, or contribution from units, organizations, or individuals outside the accounting books.

For aid sources, follow-up, accounting, and settlement shall be carried out in accordance with the current regulations of the State regarding the receipt, management, and utilization of aid sources.

Quarterly and annually, the Vietnam Children's Aid Fund shall be responsible for preparing financial reports

and settling the revenue and expenditure of the Fund to report to the Vietnam Children's Aid Fund Sponsorship Council and the Minister, Head of the Population, Family and Children Committee.

3.3. Fund management work:

The Vietnam Children's Aid Fund must publicly disclose all revenues and expenditures and comply with the State's financial and accounting systems to provide necessary information for management and operational control of the Fund's revenue and expenditure.

Regularly and urgently, the Population, Family and Children Committee and the finance authority at the same level shall be responsible for inspecting the management and use of the Fund's financial resources. The Director of the Vietnam Children's Aid Fund shall be accountable to the Minister, Head of the Population, Family and Children Committee and the Vietnam Children's Aid Fund Sponsorship Council for all activities of the Fund's revenue and expenditure.

The Population, Family and Children Committee shall be responsible for reviewing and approving the settlement of all operating funds of the Vietnam Children's Aid Fund in accordance with the current regulations of the State and consolidating them into the Population, Family and Children Committee's settlement report to settle with the Ministry of Finance.

III - IMPLEMENTATION

This Circular takes effect from January 1, 2005, and replaces Circular No. 15/1998/TT-BTC dated February 6, 1996, of the Ministry of Finance guiding the management and use of the Vietnam Children's Aid Fund.

During the implementation process, if there are any difficulties, please promptly reflect them to the Ministry of Finance for review, amendment, and supplementation to ensure compliance./.