Decision No. 1667/QD-BNN-TCLN Approves the Scheme for Transferring the Forestry Trust Fund to the Vietnam Forest Protection and Development Fund

Pursuant to …;

Approving the Project on transferring the forestry trust fund to the Vietnam Forest Protection and Development Fund

phát triển rừng Việt Nam

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THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT

Pursuant to Decree No. 01/2008/ND-CP dated January 3, 2008 and Decree No. 75/2009/ND-CP dated September 10, 2009 of the Government amending Article 3 of Decree No. 01/2008/ND-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 114/2008/QD-BNN dated November 28, 2008 of the Minister of Agriculture and Rural Development on the establishment of the Vietnam Forest Protection and Development Fund; Decision No. 128/2008/QD-BNN dated December 31, 2008 of the Minister of Agriculture and Rural Development on the promulgation of the Charter on the organization and operation of the Vietnam Forest Protection and Development Fund;

Pursuant to Decision No. 254/QD-BNN-TCCB dated January 29, 2007 of the Minister of Agriculture and Rural Development on the establishment of the Forestry Trust Fund; Decision No. 1602/QD-BNN-LN dated June 15, 2010 of the Minister of Agriculture and Rural Development on the issuance of the Handbook for Operation and Management of the Forestry Trust Fund;

Pursuant to Document No. 1057/TB-BNN-VP dated March 1, 2012 of the Ministry of Agriculture and Rural Development on the announcement of the conclusions of Minister Cao Duc Phat at the meeting with the donors of the Forestry Trust Fund held on February 21, 2012;

At the proposal of the Director General of the Forest Administration and the Director General of the Department of International Cooperation,

DECISION:

Article 1. Approves the Project on transferring the Forestry Trust Fund to the management of the Vietnam Forest Protection and Development Fund pursuant to this Decision.

Article 2. This Decision takes effect from the date of signature. The Heads of the Ministry's Office, the Director General of the Forest Administration, the Directors of the Departments of International Cooperation, Organization and Cadre Affairs, Planning, Legal Affairs, Finance, the Chairman of the Management Board, and the Directors of the TFF and VNFF Funds, and the Heads of related agencies are responsible for implementing this Decision./.

PROJECT

Transfer of the Forestry Trust Fund to the Vietnam Forest Protection and Development Fund

(Attached to Decision No. 1667/QD-BNN-TCLN dated July 18, 2012 of the Minister of Agriculture and Rural Development)

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The Ministry of Agriculture and Rural Development (MARD) approves the Project on transferring the Forestry Trust Fund (the transferring party) to the management of the Vietnam Forest Protection and Development Fund (the receiving party) with specific contents as follows:

1. Basis for transfer

- Decree No. 05/2008/ND-CP dated January 14, 2008 of the Government on the Forest Protection and Development Fund;

- Decision No. 114/2008/QD-BNN dated November 28, 2008 of the Minister of MARD on the establishment of the Vietnam Forest Protection and Development Fund; Decision No. 128/2008/QD-BNN dated December 31, 2008 of the Minister of MARD on the promulgation of the Charter on the organization and operation of the Vietnam Forest Protection and Development Fund;

- Decision No. 254/QD-BNN-TCCB dated January 29, 2007 of the Minister of MARD on the establishment of the Forestry Trust Fund; Decision No. 1602/QD-BNN-LN dated June 15, 2010 of the Minister of MARD on the issuance of the Handbook for Operation and Management of the Forestry Trust Fund;

- Recommendations in the Reports of the TFF Evaluation Teams: Round 2 in 2009 and Round 3 in 2011; Minutes of Meetings of the TFF Management Board Sessions 12, 13 & 14 signed between the Chairman of the TFF Management Board and representatives of the donors;

- Notification No. 1057/TB-BNN-VP dated March 1, 2012 of the conclusions of Minister Cao Duc Phat at the meeting with the TFF donors.

2. Objectives of the transfer

The transfer of TFF to VNFF management aims to inherit and promote the achievements of TFF, maintain and ensure the sustainability of the forestry support fund model, create momentum to attract and supplement additional financial resources for forestry development.

3. Principles of the transfer

- Ensuring the timeline, with specific priority activities, without hindering the normal operations of TFF and VNFF;

- Ensuring continuity, without interruption, for ongoing activities of TFF after its integration into VNFF; while establishing close mechanisms and relationships among relevant parties to continue implementing agreements with TFF donors effectively and transparently;

- Strengthening and enhancing the efficiency of VNFF's operations in accordance with legal regulations; harmonizing international economic management practices.

4. Conditions for the transfer

- The transfer will be conducted based on a unified agreement between representatives of TFF donors and the Ministry of Agriculture and Rural Development;

- The transfer process will be carried out concurrently, linked to the research of solutions and mechanisms to continue mobilizing financial resources for forestry development;

- The receiving party and the transferring party must promptly and adequately allocate human resources and funds to carry out the transfer.

5. Contents and tasks of the transfer

The contents and tasks of the transfer include: Organization and personnel; Management and operation tools; Financial and accounting work; and Assets.

5.1. Organization and Personnel

Regarding organizational structure: If at the time of transfer, TFF still has funds and does not need to repay donors, after the transfer, TFF will operate as a component fund under VNFF, maintaining its current organizational structure (including the Fund Management Board and the Operational Management Agency) and continuing to operate according to the current regulations of TFF.

Regarding personnel: The Operational Management Agency of TFF will develop a plan to select TFF staff to work for VNFF, ensuring suitability for each position and title.

5.2. Management and Operation Tools

All management and operation tools of TFF, including: Fund Management Regulations; Project Implementation Guidelines (OM); expenditure standards and forms... will be transferred to VNFF for continued use (if TFF still has funds) or as reference materials for future management and operation of VNFF.

5.3. Financial and Accounting Work

The business management agency of TFF shall carry out the transfer of financial and accounting work in accordance with current regulations on financial management and accounting systems. At the time of transfer, all accounting data and documents must be audited by an independent auditing company.

Not later than ten working days prior to the transfer date, the business management agency of TFF shall be responsible for reviewing, assessing, developing plans, and negotiating with sponsors regarding unused budget plans (if any) to transfer to VNFF for continued use.

All accounting vouchers, accounting books, financial reports, management accounting reports, audit reports, settlement statements, audit verification records, and other related accounting documents before the transfer must be classified and organized accurately according to time periods for easy reference and search (when required). Before handing over, TFF must reconcile account balances, verify, confirm, and develop solutions for receivables and payables.

For programs and projects completed before the transfer date, files, vouchers, and documents must be classified, listed, and stored in the archives department of the Ministry. The handover of files, documents, and vouchers from TFF to VNFF will only proceed for ongoing programs and projects.

5.4. Assets

All assets, including fixed assets and durable tools managed by TFF, if still usable, shall be prioritized for transfer to VNFF based on the results of inventory checks and asset disposal proposals approved by the Ministry of Agriculture and Rural Development. Specifically, the three offices currently being used by TFF may be transferred to VNFF to supplement its office space.

For damaged assets that are not needed or cannot be used, the business management agency of TFF shall propose to the Ministry of Agriculture and Rural Development to liquidate them in accordance with regulations on state asset management.

6. Transfer Method and Deadline

The transfer shall be carried out to ensure a smooth transition process, specifically:

- In June 2013, the Ministry of Agriculture and Rural Development will decide to transfer TFF;

- Within the last six months of 2013, the business management agency of TFF shall develop a plan for transferring documents and assets; conduct audit procedures; submit personnel transfer plans to the Ministry of Agriculture and Rural Development for approval, aiming to complete the entire transfer process to VNFF by December 31, 2013.

If the deadline for transfer is reached and the fund component model under VNFF has not been established, ongoing programs and projects will be handed over in their current state to VNFF for continued monitoring and management.

7. Implementation Organization and Assignment of Responsibilities

7.1. Business Management Agency of TFF

- Based on the transfer proposal approved by the Ministry of Agriculture and Rural Development, develop specific transfer plans for each transfer item to be submitted to the Forestry General Department for review and approval by the Ministry of Agriculture and Rural Development for implementation;

- Implement the transfer contents according to the approved proposal by the Ministry.

7.2. VNFF Management Board

- Organize the reception of transferred contents from TFF;

- Based on the transfer proposal approved by the Ministry of Agriculture and Rural Development, direct TFF and VNFF to cooperate with sponsors and relevant parties to propose specific transfer plans for each item, to be submitted to the Ministry of Agriculture and Rural Development for approval.

b) International Cooperation Department

- Advise the Minister on supervising the transfer process, promptly reporting any issues arising during the implementation of TFF activities.

- Serve as the contact point of the Ministry to promote expanded cooperation with TFF sponsors and potential sponsors for VNFF.

c) Finance Department: Advise and submit to the Ministry of Agriculture and Rural Development:

- Approve proposals for handling TFF's assets;

- Timely allocate sufficient matching funds for the execution of tasks during the transfer phase.

d) Cadre and Civil Servant Organization Department:

- Advise the Ministry of Agriculture and Rural Development to issue decisions on the transfer of TFF.

e) Ministry Office:

- Based on TFF's recommendations, organize the archiving of all program and project files and non-project activity documents completed before and at the time of transfer.

(Details of the TFF transfer to VNFF are attached in the accompanying table)./