Circular No. 116/2016/TT-BTC guiding the preparation, allocation of budget estimates, payment, and settlement of funds for public welfare agricultural and aquatic seed products.

CIRCULAR

Guidelines for preparing, allocating budgets, making payments, and finalizing accounts for public goods breeding products of agriculture and aquaculture.

agricultural and aquatic breeding for public benefit.

 _____________

Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

Pursuant to the Price Law number 11/2012/QH13 dated June 20, 2012;Decision No. 1/2012/QH13 dated June 20, 2012;

Pursuant to the Animal Breeding Ordinance number 16/2004/PL-UBTVQH11 dated March 24, 2004;

Pursuant to the Government Decree number 60/2003/NĐ-CP dated June 6, 2003 detailing and guiding the implementation of the State Budget Law;

Based on Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 149/2016/NĐ-CP dated November 11, 2016 of the Government amending and supplementing certain provisions of Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices;

Pursuant to the Government Decree number 215/2013/NĐ-CP dated December 23, 2013 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance.

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular guiding the preparation, allocation of budgets, making payments, and finalizing accounts for public goods breeding products of agriculture and aquaculture.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the preparation, allocation of budgets, making payments, and finalizing accounts for the production, supply, and preservation of original breeding products of crops, livestock, and aquaculture, and the production of fish spawning hormone (HCG) products (referred to as agricultural and aquaculture breeding products) meeting quality standards according to economic and technical norms issued by the Ministry of Agriculture and Rural Development through procurement orders.

In cases where public goods agricultural and aquaculture breeding products are implemented through tendering procedures, they shall comply with the provisions of the Public Procurement Law and related guiding documents.

Article 2. Applicability

This Circular applies to the following subjects:

1. Research and technology transfer institutions, enterprises of all economic sectors, cooperatives registered in accordance with the law, and legally operating entities engaged in the production, supply, and preservation of public goods agricultural and aquaculture breeding products (referred to as public service operation entities).

2. Agencies, organizations, and individuals involved in organizing the production, supply, and preservation of public goods agricultural and aquaculture breeding products.

Article 3. Explanation of Terms

In this Circular, the following terms shall be understood as follows:

1. Original livestock breeds are inbred lines, grandparents for pigs; pure lines, grandparents for poultry; nucleus herds for large ruminants; pure breeding colonies for bees and silkworms.

2. Original livestock breeding products are breeding products (young animals, semen, embryos) produced from inbred lines, grandparents for pigs; pure lines, grandparents for poultry; nucleus herds for large ruminants; pure breeding colonies for bees and silkworms.

3. Original aquaculture breeding stock is purebred stock of natural origin or selectively bred (including eggs, sperm, embryos, and larvae) used for research, production, and development of aquaculture breeding stock.

Chapter II

SPECIFIC PROVISIONS

Article 4. Consumption prices, subsidy levels, and price adjustments for public goods agricultural and aquaculture breeding products

1. Establishing consumption price plans and subsidy levels

a) Annually, the Ministry of Agriculture and Rural Development and Provincial Departments of Agriculture and Rural Development base on market conditions and types of public goods agricultural and aquaculture breeding products produced and supplied, guide public service operation entities to establish consumption price plans and subsidy levels for public goods agricultural and aquaculture breeding products according to Appendix 4a or Appendix 5a, report to the Ministry of Agriculture and Rural Development for review; subsequently, the Ministry of Agriculture and Rural Development sends documents according to Appendix 4 or Appendix 5 to the Ministry of Finance for consideration and notification in writing.

- For central budget: public service operation entities establish consumption price plans and subsidy levels for public goods agricultural and aquaculture breeding products according to Appendix 4a or Appendix 5a, report to the Ministry of Agriculture and Rural Development for review; subsequently, the Ministry of Agriculture and Rural Development sends documents according to Appendix 4 or Appendix 5 to the Ministry of Finance for consideration and notification in writing.

- For local budget: public service operation entities establish consumption price plans and subsidy levels for public goods agricultural and aquaculture breeding products according to Appendix 4a or Appendix 5a, report to the Provincial Department of Agriculture and Rural Development for review; subsequently, the Provincial Department of Agriculture and Rural Development sends documents according to Appendix 4 or Appendix 5 to the Provincial Department of Finance for consideration and submission to the People's Committee of the province for decision.

b) The price plan dossier includes:

- The review document of the price plan for agricultural and aquaculture breeding products (original) as specified in Appendix 4, Appendix 4a, or Appendix 5, Appendix 5a.

- Market price survey results conducted by organizations or individuals carrying out the survey. In case of individual surveys, a Survey Form according to Appendix 6 must be filled out and attached to this circular (original) or prices listed on at least three suppliers' quotation or tender documents, approved cost estimates for producing and supplying public goods, or sales invoices of the supplier units in accordance with regulations, or prices determined by organizations authorized to assess prices, or reference prices obtained from official information provided by suppliers in accordance with Vietnamese law through the Internet or mass media.

- The original or certified copy by the competent authority of detailed calculation sheets, reasonable vouchers, and other relevant documents concerning the quantity ordered by the ordering entity. If there is no certification by the competent authority, the head of the entity certifies and takes responsibility.

- In cases where clarification of contents in the price plan dossier prepared by public service operation entities is required, the Ministry of Finance/Provincial Department of Finance may request the Ministry of Agriculture and Rural Development/Provincial Department of Agriculture and Rural Development to provide comments or the public service operation entities to report and explain specific related contents.

2. Determining the subsidy level for public goods agricultural and aquaculture breeding products

a) Method for determining the subsidy level for a unit of public goods agricultural and aquaculture breeding product

Where:

- Reasonable costs for producing and supplying a unit of public goods agricultural and aquaculture breeding product are determined according to Articles 11 and 12 of Circular No. 25/2014/TT-BTC dated February 17, 2014 of the Ministry of Finance on general pricing methods for goods and services (hereinafter referred to as Circular No. 25/2014/TT-BTC), used to determine the actual consumption price of public service operation entities.

- The consumption price of one unit of agricultural and aquatic seed public utility products (specifically defined in the order contract between the Department of Agriculture and Rural Development and the public utility operating entity) shall be determined based on the nearest market price to the time point for determining the subsidy level as stipulated in Section 2 Chapter II of Circular No. 25/2014/TT-BTC.

In cases where the actual consumption price of public utility operating entities is lower than the specific consumption price prescribed by the Ministry of Agriculture and Rural Development and the provincial People's Committee, they shall only be paid the maximum subsidy level announced. Public utility operating entities must use other legitimate sources to cover expenses.

b) Subsidies shall only apply to agricultural and aquatic seed public utility products implemented through the State placing orders using state budget funds, and shall not apply to agricultural and aquatic seed products that have been allocated funding from other support programs and projects.

3. Announcement and determination of prices

a) For central government budget tasks:

- The Ministry of Finance shall announce in writing the maximum consumption price and maximum subsidy level for agricultural and aquatic seed public utility products to public utility operating entities before the deadline for preparing the annual budget estimate (June 30 of the preceding year).

- The Ministry of Agriculture and Rural Development, based on the announcement of the maximum consumption price and maximum subsidy level by the Ministry of Finance, shall decide the specific consumption price and specific subsidy level for agricultural and aquatic seed public utility products provided by public utility operating entities without exceeding the announced maximum consumption price and maximum subsidy level, and issue such decisions before July 31 of the preceding year to prepare the annual budget estimate, which serves as the basis for allocating the assigned budget estimate before December 31 of the preceding year and signing order contracts with public utility operating entities as prescribed.

b) For local government budget tasks:

The provincial People's Committee shall determine the specific consumption price and specific subsidy level for agricultural and aquatic seed public utility products provided by public utility operating entities before July 31 of the preceding year to prepare the annual budget estimate, which serves as the basis for allocating the assigned budget estimate before December 31 of the preceding year and signing order contracts with public utility operating entities as prescribed.

c) For agricultural and aquatic seed public utility products implemented through bidding, the winning bid price shall serve as the basis for allocating the budget estimate and signing contracts with the winning bidder in accordance with the laws on bidding.

4. Adjustment of consumption price and subsidy level

Adjustments to the consumption price and subsidy level for agricultural and aquatic seed public utility products implemented through order placement shall be carried out in accordance with the Law on Prices, Article 23 of Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on the production and supply of public utility products and services, and related guiding documents, and shall not exceed the allocated financial budget already assigned by the state budget.

Article 5. Sources of funds, forms of fund allocation, and accounting for agricultural and aquatic seed public utility products

1. Funding sources

Based on the objectives and tasks assigned by the competent authority:

a) The central government budget shall allocate funds to public utility operating entities under central government tasks.

b) Local government budgets shall allocate funds to public utility operating entities under local government tasks.

2. Forms of fund allocation

The allocation of funds for agricultural and aquatic seed public utility products shall be carried out in the form of payment orders in accordance with the State Budget Law.

3. Importation of agricultural and aquatic seed stock

The importation of original stock (grandparents, great-grandparents, or pure lines, semen, embryos) of agricultural and aquatic seeds must be approved by the Ministry of Agriculture and Rural Development for the central government budget and by the Department of Agriculture and Rural Development for the local government budget. Funding for this activity shall not exceed 40% of the total financial support budget for public utility operating entities in the year.

4. Funding for specialized training, periodic inspections, and final acceptance

Funding for these activities shall not exceed 3% of the total financial support budget for public utility operating entities in the year, balanced by the state budget.

5. Accounting

Public utility operating entities must retain purchase and sale records and maintain separate ledgers for tracking accounting of their production, supply, and storage activities involving agricultural and aquatic seed products. Subsidies from the state budget for public utility operating entities shall be recorded as subsidy and support revenue in the enterprise's current period and shall comply with current tax laws.

Article 6. Establishment and Allocation of Budget for Public Welfare Agricultural and Aquatic Seed Products

1. Establishment of budget projections:

Annually, public welfare entities base on market conditions, production capacity, supply of products and services, and specific subsidy levels for agricultural and aquatic seed public welfare products decided by the Agriculture and Rural Development authorities at all levels according to Clause 3, Article 4 of this Circular, prepare budget estimates and submit them to the same-level Agriculture and Rural Development and Finance authorities.

a) For central tasks: The Ministry of Agriculture and Rural Development compiles the annual state budget expenditure plan for the production, supply, and preservation of agricultural and aquatic seed public welfare products and submits it to the Ministry of Finance for review and consolidation to be submitted to the competent authority for decision.

b) For local tasks: The Department of Agriculture and Rural Development compiles the annual state budget expenditure plan for the production, supply, and preservation of agricultural and aquatic seed public welfare products and submits it to the Department of Finance for review and consolidation to be reported to the Provincial People's Council for consideration and decision.

2. Allocation of budget projections:

a) Based on the state budget expenditure plan assigned by the competent authority for the production, supply, and preservation of agricultural and aquatic seed public welfare products:

- For the central budget: The Ministry of Agriculture and Rural Development bases on the specific consumption price decision and specific subsidy level for agricultural and aquatic seed public welfare products stipulated in Point a, Clause 3, Article 4 of this Circular, prepares the budget allocation plan for each unit breeding and importing agricultural and aquatic seed public welfare products and submits it to the Ministry of Finance for examination according to regulations.

- For the local budget: The Department of Agriculture and Rural Development bases on the specific consumption price decision and specific subsidy level for agricultural and aquatic seed public welfare products stipulated in Point b, Clause 3, Article 4 of this Circular, prepares the budget allocation plan for each unit breeding and importing agricultural and aquatic seed public welfare products and submits it to the Department of Finance for examination according to regulations.

b) After receiving the finance authority's examination opinion on the budget allocation plan for state budget expenditures, the Ministry of Agriculture and Rural Development allocates the budget for central tasks, and the Department of Agriculture and Rural Development allocates the budget for local tasks before December 31 of the previous year, and implements contracts for the production and supply of agricultural and aquatic seed public welfare products according to the specific consumption prices and subsidy levels decided in Clause 3, Article 4 of this Circular; simultaneously submitting to the finance authority for coordination implementation.

Article 7. Advance Payment and Settlement of Funds for Public Welfare Agricultural and Aquatic Seed Products

1. For activities related to the production, supply, and preservation of public welfare agricultural and aquatic seed products

a) Advance payment of funds

After receiving the budget allocation decision and contract from the competent authority, public welfare entities can temporarily receive 70% of the funds according to the production and supply contract for public welfare agricultural and aquatic seed products.

Documents for advance payment of funds include:

- Decision on budget allocation by the Ministry of Agriculture and Rural Development for the central budget, and the Provincial People's Committee for the local budget.

- Decision approving the bid (if the product falls under tendered items).

- Contract for the production and supply of public welfare agricultural and aquatic seed products.

- Letter requesting advance payment from the public welfare entity.

b) Settlement of funds

After receiving the acceptance and settlement report of the production and supply contract for public welfare agricultural and aquatic seed products:

- For the central budget: The Ministry of Finance will provide the remaining funds to the public welfare entities.

- For the local budget: The Department of Finance will provide the remaining funds to the public welfare entities.

- Documents for settlement of funds include:

+ Acceptance and settlement report of the production and supply contract for public welfare agricultural and aquatic seed products.

+ Report on final settlement of funds for the implementation of production, supply, and preservation of public welfare agricultural and aquatic seed products as prescribed.

+ Letter requesting final settlement of funds from the public welfare entity.

2. Funds for importing original agricultural and aquatic seed

The import of seeds will be settled after completing the procedures and signing the import contract.

Documents for settlement of import funds:

- Decision on seed importation by the competent authority.

- Letter requesting settlement of import funds from the importing unit.

- Import contract between the importing unit and the supplier.

- Tender documents.

3. Funds for organizing professional training, periodic inspection, and final acceptance

After the Finance Authority receives the detailed budget estimate and implementation progress from the Ministry of Agriculture and Rural Development for the central budget and the Department of Agriculture and Rural Development for the local budget, these units can temporarily receive 70% of the funds according to the budget estimate. After receiving the final settlement report of the funds, the Finance Authority will settle the remaining funds.

Article 8. Settlement of funds for public welfare agricultural and aquatic seed products

At year-end, surplus funds for public welfare agricultural and aquatic seed products that have not been fully utilized will be canceled according to regulations. In cases where it is necessary to continue using the funds, written agreement from the financial authority must be obtained.

Public welfare operating entities shall base their reports on invoices, receipts, and accounting books in accordance with the Accounting Law; guiding documents and contracts for producing and supplying public welfare agricultural and aquatic seed products; acceptance and liquidation certificates for production and supply contracts of public welfare agricultural and aquatic seed products; budget allocation decisions; consumption price and specific subsidy level decisions for public welfare agricultural and aquatic seed products to prepare settlement reports on the implementation of production and supply of public welfare agricultural and aquatic seed products to the Ministry of Agriculture and Rural Development and the Ministry of Finance for central tasks, and to the Department of Agriculture and Rural Development and the Department of Finance for local tasks, including the following contents:

1. Evaluation of the results of supplying agricultural and aquatic seeds and the use of funds.

2. Forms:

- Report on state budget support (Annex 1).

- Report on the consumption of agricultural and aquatic seed products (Annex 2).

- Report on the total cost calculation, consumption price, and subsidy level of the product (Annex 3).

Chapter III

REPORTING REGIME, INSPECTION, AND SUPERVISION

Article 9. Reporting System

Public welfare operating entities are responsible for reporting the implementation of contracts to the Ministry of Agriculture and Rural Development and the Ministry of Finance for central tasks, and to the Department of Agriculture and Rural Development and the Department of Finance for local tasks, on a six-monthly basis and at the end of the planning year. Six-monthly reports should be submitted before July 15, and annual reports should be submitted before January 15 of the following year.

Article 10. Inspection and Supervision

For central tasks, the Ministry of Agriculture and Rural Development (for local tasks, the Department of Agriculture and Rural Development) is responsible for leading and coordinating with relevant agencies to regularly inspect the implementation of contracts, inspect and accept the completion and liquidation of contracts, and monitor the use of funds by public welfare operating entities.

The Ministry of Finance supervises the allocation and use of funds for the production, supply, and storage of public welfare agricultural and aquatic seed products for central tasks. The Department of Finance supervises the allocation and use of funds for the production, supply, and storage of public welfare agricultural and aquatic seed products for local tasks.

Chapter IV

IMPLEMENTATION

Article 11. Effective Date

1. This Circular takes effect from August 14, 2016, and replaces Joint Circular No. 148/2007/TTLT-BTC-BNN dated December 13, 2007, issued by the Ministry of Finance and the Ministry of Agriculture and Rural Development on guiding the system for ordering the production and supply of original livestock seed products.

2. In cases where laws and regulations referred to in this Circular are amended, supplemented, or replaced, they shall be implemented according to those laws and regulations.

3. During implementation, if there are any difficulties, units are requested to report them to the Ministry of Finance for research and appropriate amendments and supplements./.