Circular No. 174/2012/TT-BTC guiding financial management for the Legal Aid Fund of Vietnam

CIRCULAR

Guidelines for financial managementof the Vietnam Legal Aid Fund

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 84/2008/QĐ-TTg dated June 30, 2008 of the Prime Minister on the establishment of the Vietnam Legal Aid Fund;

Pursuant to Decision No. 52/2010/QĐ-TTg dated August 18, 2010 of the Prime Minister on legal support policies to enhance awareness and understanding of the law among the poor and ethnic minority groups in poor districts during the period 2011-2020.

Pursuant to Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the program to rapidly and sustainably reduce poverty in 61 poor districts.

At the proposal of the Director of the Department of Financial Administration and Public Services;

The Minister of Finance issues this Circular guiding financial management of the Vietnam Legal Aid Fund as follows:

Article 1. Scope of Application

This Circular stipulates the financial management of the Vietnam Legal Aid Fund (hereinafter referred to as the Fund), which was established and operates under Decision No. 84/2008/QĐ-TTg dated June 30, 2008 of the Prime Minister on the establishment of the Vietnam Legal Aid Fund.

For legal aid activities from poverty reduction programs and state projects funded through the Vietnam Legal Aid Fund, they shall be implemented according to the financial mechanism of such programs and projects (if applicable); in cases where there is no specific financial mechanism, they shall be carried out in accordance with the provisions of this Circular.

Article 2. Financial operation principles of the Fund

1. The Fund is a state financial organization with legal personality, having accounts opened at the State Treasury to reflect income and expenditure from state budget funds or other sources derived from the state budget; it also has accounts opened at commercial banks to reflect operations involving funds raised from domestic and foreign organizations and individuals.

2. The Fund operates without profit-making objectives and is exempted from taxes in accordance with current laws. The Fund's operations must comply with the provisions of the State Budget Law, relevant financial policies, and the provisions of this Circular; the Fund may not use funds for business activities, lending, or other activities contrary to the provisions of this Circular.

3. The Fund records transactions in Vietnamese dong; in cases where it receives foreign currency donations, the Fund must sell that foreign currency to a bank for Vietnamese dong to record the transaction.

4. The Fund must publicly disclose its fundraising, management, and utilization of capital in accordance with Decision No. 192/2004/QĐ-TTg dated November 16, 2004 of the Prime Minister on the issuance of the Regulation on Public Financial Disclosure for all levels of the state budget, budgetary units, organizations supported by the state budget, basic construction investment projects using state budget funds, state-owned enterprises, funds sourced from the state budget, and funds from people's contributions, and Circular No. 21/2005/TT-BTC dated March 22, 2005 of the Ministry of Finance guiding the implementation of public financial disclosure for budgetary units and organizations supported by the state budget.

5. All financial income and expenditure activities of the Fund must be conducted in strict compliance with the laws on finance, accounting, and the Charter of Operation and Activities of the Vietnam Legal Aid Fund.

Article 3. The Fund has the following sources of income:

1. Annual state budget allocation based on the needs for legal aid activities and the state budget's capacity.

2. Funding from poverty reduction programs and projects of the State pursuant to Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government, and from other poverty reduction programs and projects of the State for legal aid work channeled through the Fund.

3. Money (or assets) voluntarily contributed and sponsored by organizations and individuals both within and outside the country in accordance with relevant laws.

4. Income from bank deposit interest and from other lawful income (if any).

Article 4. Activities of Fund Support

1. Legal aid support activities of the Fund shall be carried out in accordance with Decision No. 84/2008/QĐ-TTg dated June 30, 2008 of the Prime Minister.

2. Implementation of State programs and projects entrusted to the Fund.

a) Legal aid support activities aimed at enhancing awareness and knowledge of the law among the poor shall be implemented in accordance with Decision No. 52/2010/QĐ-TTg of the Prime Minister regarding policies to support legal aid aimed at enhancing awareness and knowledge of the law among the poor and ethnic minority groups in poor districts during the period of 2011-2020.

b) For legal aid support activities from poverty reduction programs and projects of the State for legal aid work channeled through the Vietnam Legal Aid Fund, they shall be implemented in accordance with the relevant documents of the competent authority stipulating legal aid support activities for such programs and projects.

c) The content of support funding from the Fund shall not overlap with the content of funding from the annual state budget, national target programs, project cooperation funds, and other sources for legal aid work.

Article 5. Content and Levels of Expenditure

1. Content and level of expenditure for managing the Fund:

1.1. Expenditure items:

a) Salary and allowances according to salary regulations, contributions as prescribed for staff managing the Fund, overtime pay, and兼任翻译人员和越南法律专家，将越南法律文本精准无误地翻译成官方立法和公报中使用的标准英语法律术语。请严格按照规则进行翻译：

b) Expenditure on procurement and repair of assets serving the operations of the Fund.

c) Expenditure to ensure regular operations for managing the Fund such as office supplies, public services, information, publicity, communication, leasing, and other regular expenditures.

d) Expenditure for dispatching and receiving activities serving the construction, management, and development of the Fund.

đ) Expenditure on communication for building and developing the Fund.

e) Expenditure for rewarding organizations and individuals with outstanding achievements in participating in the construction and development of the Fund as prescribed.

g) Expenditure for training and capacity building for civil servants and employees of the Fund.

Other expenditures to implement management, guidance, inspection, and supervision of revenue, expenditure, and use of financial resources of programs and projects (funded domestically) provided through the Legal Aid Fund: Expenditure for organizing business guidance on management and use of funds; inspecting and supervising the implementation of supported funds; expenditure for organizing conferences, seminars, mid-term reviews, and final evaluations.

Other related expenditures for the activities of the Fund.

1.2. Level of expenditure: The above expenditures must be implemented in accordance with the current state expenditure regulations.

2. Contents and levels of expenditure for implementing the support activities of the Fund according to Decision No. 84/2008/QĐ-TTg dated June 30, 2008 of the Government Prime Minister:

2.1. Contents of expenditure:

a) Expenditure to improve the quality of legal aid service activities:

- Supporting training, capacity building, and vocational training to enhance the professional skills, expertise, and ethical standards of appointed legal aid officers and those providing legal aid.

- Supporting the organization of research, surveys, seminars, roundtable discussions, and professional exchanges directly serving legal aid tasks.

- Supporting communication work; publishing legal documents, books, pamphlets, and other publications serving legal aid activities.

- Expenditure to support the handling of cases by legal aid organizations, including complex, typical, or highly influential cases in public opinion or for reasons of justice protection.

- Expenditure to support verification, inspection, and evaluation of the quality of legal aid cases.

- Expenditure to support mobile legal aid activities and legal aid club activities.

Other expenditures serving to improve the quality of legal aid in compliance with legal provisions.

b) Expenditure to purchase equipment and means of transportation serving the work needs of the State Legal Aid Center, its branches, and organizations participating in legal aid in provinces requiring central budget support, and localities facing sudden difficulties.

c) Expenditure to support legal aid activities based on the requirements of sponsors or projects with specific commitments in accordance with the Legal Aid Law.

d) Expenditure to support compensation for legal aid and other special cases as prescribed by the Minister of Justice.

2.2. Level of expenditure: Implemented in accordance with the Circular jointly issued by the Ministry of Finance and the Ministry of Justice guiding the preparation, management, use, and settlement of funds ensuring the operation of state legal aid agencies.

3. Contents and levels of expenditure for implementing legal aid activities aimed at enhancing awareness and knowledge of the law among the poor according to Decision No. 52/2010/QĐ-TTg of the Government Prime Minister: Implemented in accordance with Article 5 of Decision No. 52/2010/QĐ-TTg.

Article 6. Budget Estimation, Allocation, and Settlement of the Fund's Annual Budget

The preparation, execution, and settlement of the Fund's operational funding budget shall be carried out in accordance with the provisions of the State Budget Law and implementing guidelines. This Circular provides additional guidance on specific points to suit the Fund's operations, as follows:

1. Budget Estimation: Annually, based on the tasks and objectives of the legal aid assistance activities, and in accordance with the Ministry of Finance's guidelines for annual state budget estimation; the Fund prepares its revenue and expenditure budget, which is submitted to the Legal Aid Administration for consolidation into the Ministry of Justice's annual state budget to be submitted to the Ministry of Finance for consolidation and submission to the Prime Minister and the National Assembly for approval, detailing the funds required for the following activities:

a) The budget for implementing the Fund's support activities for legal aid work as stipulated in Decision No. 84/2008/QĐ-TTg dated June 30, 2008, of the Prime Minister.

b) The budget for implementing programs and projects entrusted by the State through the Fund, including:

- Legal support activities aimed at enhancing awareness and understanding of laws among the poor as stipulated in Decision No. 52/2010/QĐ-TTg dated August 18, 2010, of the Prime Minister.

- Other program and project implementation activities.

c) The budget for managing the Fund.

2. Allocation of budget projections:

a) Based on the allocated budget, the Ministry of Justice proposes detailed funding allocations to ensure the Fund's operational activities, which are submitted to the Ministry of Finance for review in accordance with regulations. Detailed allocation of the budget is made according to the following items:

- Funding for implementing support activities as stipulated in Decision No. 84/2008/QĐ-TTg dated June 30, 2008, of the Prime Minister.

- Funding for implementing programs and projects entrusted by the State through the Fund.

- Funding for managing the Fund.

b) After receiving the Ministry of Finance's review comments, the Ministry of Justice assigns the revenue and expenditure budget to the Fund as a basis for implementation. Based on the budget assigned by the competent authority, the Fund allocates funding for activities according to each support activity and the regions receiving support (in detail according to each recipient unit).

For funding to implement the tasks of units under the Ministry of Justice (not budgetary units): The funding for implementing tasks is arranged within the Fund's budget, and the Fund informs the relevant units of the funding amount for coordination in task implementation.

3. Disbursement of Funds:

a) In cases where the fund recipient is an independent budgetary unit: Based on the Contract between the Fund and the fund recipient, the Fund disburses provisional funds to the unit via bank transfer according to the signed Contract. Upon completion of the Contract, the fund recipient must prepare a Quantity Completion Report with confirmation from the management unit and submit it to the Fund before December 15th each year for acceptance and contract termination. The Acceptance and Termination Record serves as the basis for settling the provisional funds and the Fund will pay the remaining balance to the supporting units.

If the fund recipient fails to complete the contracted workload, they must provide a clear explanation in writing for the Fund to report to the competent authority for decision on recovery or transfer of funds to the next year.

b) For support activities provided to non-budgetary units (units under the Ministry of Justice): Based on the budget for implementing activities of these units, the Fund temporarily disburses funds for cash expenditures. Upon completion of the work, the units must submit completed documentation to the Fund for provisional payment settlement. For expenditures paid via bank transfer to service providers (such as printing costs, venue rental, training expenses...), the Fund will directly settle payments based on the Contract signed between the Fund and the service provider.

4. Use and Settlement of Funds:

a) The use and settlement of support funds from the Fund must be supported by full and valid legal documentation in accordance with current laws. Documentation retained by the Fund as the basis for settling the state budget is: contracts, contract settlements, confirmation by the Fund regarding the completion of tasks; specific expenditure documentation will be retained by the direct accounting unit (the units receiving support funds). Units receiving funds are responsible for the accuracy, legality, and validity of all expenditures settled with the Fund.

For activities implemented by the Fund and units within the Ministry of Justice: The Fund is responsible for retaining all financial documentation as the basis for settling state budget expenditures.

b) Based on the approved annual budget, the Fund Director is responsible for guiding units receiving support to manage and use funds in compliance with state budget laws; adhering to current financial management regulations; and the Fund's financial management regulations as well as the Charter of the Fund's organization and operation.

c) In cases where the grant is not suitable for the Fund's usage conditions, the Fund must seek permission from the competent authority to sell through public auction and follow the auction regulations set by the State; the proceeds from the auction, after deducting reasonable expenses, must be used for the Fund's purposes and objectives.

d) Accounting and Settlement Work:

The Fund must establish an accounting department, appoint accountants, and designate an accounting head (responsible for accounting) in accordance with current regulations.

The Fund must organize accounting and statistical work, maintain ledgers to track the Fund's income and expenditure activities, and ensure complete invoices and receipts; annually, it must report on the settlement of the Fund's income and expenditure according to Decision No. 19/2006/QĐ-BTC dated March 30, 2006, of the Minister of Finance on the issuance of the accounting system for administrative and public institutions.

The Fund must prepare financial reports for foreign grants in accordance with the donor's regulations (if applicable).

The Fund must develop internal expenditure regulations in accordance with current regulations.

The remaining funds of the Fund at the end of the year that are not used shall be carried over to the next year for use according to the prescribed purpose and content of the Fund's use. Based on the reconciliation results, the State Treasury where the transaction takes place shall be responsible for transferring the budget surplus of the previous year to the next year in accordance with current regulations.

The Legal Aid Agency is responsible for approving the final accounts of the Fund to be submitted to the Ministry of Justice for consolidation into the Ministry of Justice's final accounts to be sent to the Ministry of Finance for review in accordance with current regulations.

The Fund is subject to financial activity inspections by the Legal Aid Agency; it is also subject to audits and inspections by the Ministry of Justice, financial authorities, and competent agencies in accordance with the provisions of the law.

5. For financial support from sources of funding that have been agreed upon, the Fund shall be responsible for implementing in accordance with the authorization or objectives, content, and addresses of funding assistance that have been agreed between the Fund and domestic and foreign agencies, businesses, organizations, and individuals providing funding, in line with the Fund's operational purposes and Vietnamese law. For funding sources without agreements, implementation shall follow the Plan approved by the Fund Director.

Article 7. Implementation Organization

This Circular takes effect from December 10, 2012, and replaces Circular No. 41/2009/TT-BTC dated March 9, 2009, issued by the Ministry of Finance.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for consideration and resolution./.