Decision No. 1837/2000/QĐ-BYT provides for the financial management of non-repayable aid funds under the Ministry of Health.

Pursuant to …;

Regulations on financial management for non-repayable aid sources under the Ministry of Health

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 THE MINISTER OF HEALTH

- Pursuant to Decree No. 68/CP dated October 11, 1993 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Health;

- Based on Decree No. 87/CP dated August 5, 1997 of the Government on the issuance of the Regulation on Management and Use of Official Development Assistance;

- Based on Decision No. 28/1999/QĐ-TTg dated February 23, 1999 of the Prime Minister on the issuance of the Regulation on Management and Use of Aid from Foreign Non-Governmental Organizations;

- Based on Circular No. 22/1999/TT-BTC dated February 26, 1999 of the Ministry of Finance guiding the financial management system of the State for non-repayable aid sources;

- After negotiating with the Ministry of Finance in Document No. 3987 TC/VT dated August 13, 1999; According to the proposal of the Director of the Department of Finance and Accounting, Ministry of Health.

Pursuant to …;

Article 1. Issuing: "Regulations on Financial Management for Non-Repayable Aid Sources Under the Ministry of Health".

Article 2. This Decision shall take effect fifteen days from the date of issuance and shall replace Circular No. 04-BYT-TT dated April 2, 1994 of the Ministry of Health on Guidelines for Management and Use of International Aid Funds for Programs and Projects within the Health Sector for Domestic Expenditure.

Article 3. Gentlemen and Ladies: Heads of the Office, Heads of Departments, Bureaus, Inspectors General of the Ministry of Health, Directors of Project Management Boards, Program Directors, Project Directors, and Heads of Administrative Units directly under the Ministry of Health receiving non-repayable aid are responsible for implementing this Decision.

REGULATIONS

Financial management for non-repayable aid sources under the Ministry of Health

(Issued together with Decision No. 1837/2000/QĐ-BYT dated June 13, 2000 of the Minister of Health)

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 PART I

GENERAL PROVISIONS

Article 1. These regulations apply to non-repayable aid sources provided by governments of other countries, international organizations, international financial institutions, foreign non-governmental organizations, and individuals abroad (collectively referred to as aid organizations) to Programs, Projects, and non-programmatic projects within the Ministry of Health (collectively referred to as beneficiary units).

Article 2. Non-repayable aid from aid organizations assigned by the Government to be managed and implemented by the Ministry of Health must comply with the State Budget Law and current legal documents governing financial and budgetary management, except where otherwise specified in the Aid Agreement.

Article 3. Beneficiary units receiving non-repayable aid have the right to use the entire aid source to implement the agreed or negotiated objectives with the aid organization.

Article 4. Cash aid (foreign currency or Vietnamese dong) must be transferred into the account of the Ministry of Health for centralized management (except for beneficiary units that have been approved by authorized authorities to open separate accounts as agreed with the funding agency).

Article 5. In cases where beneficiary units directly receive cash or checks, they must immediately report to the Ministry of Health (Department of Finance and Accounting, Planning Department) to receive guidance on receipt and use.

Article 6. The management and expenditure of non-repayable aid funds by beneficiary units must be carried out at subordinate units (if the unit is the project owner). For beneficiary units directly managed and organized by the Ministry of Health, the management, expenditure, and settlement shall be handled by the Project Management Board of the Ministry of Health.

Article 7. Non-repayable aid in the form of money or goods received by beneficiary units must go through confirmation procedures. The confirmation certificate for aid money and goods serves as the basis for completing receipt procedures and is the basis for the Ministry of Finance to record income and expenditure in the State Budget for the beneficiary unit.

Article 8. The heads of beneficiary units directly using non-repayable aid are responsible to the Minister of Health for the implementation of the agreed objectives and contents recorded in the approved documents and their own budgetary approvals.

Chapter II

SPECIFIC PROVISIONS

Part 1. Preparation and Consolidation of Budget Estimates

Article 9. After the Project Document has been signed and becomes effective, the Heads of Beneficiary Units shall prepare annual budget estimates for non-repayable aid receipts and counterpart funds (if any) according to Model No. 1 attached hereto.

The budget estimate for counterpart funds (including costs from project preparation to receipt, transportation, taxes (if any), storage of goods and equipment, management expenses of the Project...) must be consistent with the contents of commitment documents, agreements, or memoranda of understanding based on actual needs and in accordance with the progress of each project.

Annual budget estimates for non-repayable aid receipts and counterpart funds (if any) of Beneficiary Units shall be sent to the Department of Finance and Accounting and concurrently sent to the Department of Planning. Beneficiary Units with construction investment capital must also send an additional copy to the Department of Medical Equipment and Health Construction Projects.

Specifically, Beneficiary Units directly managed and implemented by the Ministry of Health shall send budget estimates for aid receipts, counterpart funds for administrative and public services, and counterpart funds for construction investment to the Management Board of Health Ministry Projects for consolidation and submission to relevant Departments.

Part 2. Confirmation of Aid

Article 10: All Beneficiary Units receiving goods or money from aid must issue an aid confirmation statement, including:

- Goods and equipment purchased domestically by the donor organization and transferred to Beneficiary Units.

- Goods and equipment listed in the aid program, brought in by experts and directly used by the partner side but committed to be handed over to Beneficiary Units upon completion of the project.

- Humanitarian aid and emergency relief funds provided to individual organizations, units, and localities by the Ministry of Health as the main recipient.

- Foreign currency or Vietnamese dong transferred by the donor organization to Beneficiary Units for direct use (including funding for office operational activities of the Project according to the agreed quota in the application).

- Goods and money (foreign currency or Vietnamese dong) from non-project aid sources transferred by the donor organization to Beneficiary Units that have been approved by the competent authority.

Article 11. Upon notification of receipt of aid goods or money, Beneficiary Units are responsible for issuing an aid confirmation form. For aid goods purchased domestically by the donor organization and then transferred to Beneficiary Units for use, the confirmation should be issued within 15 days from the date of receipt of the goods.

For aid in the form of bank drafts, Beneficiary Units shall issue an aid receipt form upon notification of receipt of the funds from the Ministry of Health (Department of Finance and Accounting). Beneficiary Units shall proceed to the following departments of the Ministry of Health and the Ministry of Finance to complete the aid confirmation procedures:

Ministry of Health: Department of Planning

The Ministry of Finance:

a) The Department of Foreign Financial Affairs:

+ Non-repayable aid from governments of other countries.

+ Aid from international financial organizations (ADB, WB...).

b) International Aid Management and Reception Board and its representatives:

+ Non-repayable aid from international organizations (WHO, UNICEF, UNFPA...).

+ Non-repayable aid from foreign non-governmental organizations and foreign individuals.

The confirmation of aid money and goods shall be made according to Model No. 2 and Model No. 3 attached hereto.

Article 12. The following sources of money and goods are not required to issue an aid confirmation:

- Gifts and donations of goods from foreign organizations and individuals, advertising goods, and quotation goods from foreign companies sent to Beneficiary Units.

- Foreign currency and Vietnamese dong transferred by international organizations to Beneficiary Units to implement service contracts: research cooperation, document translation...

Although these sources of money and goods do not require issuance of a confirmation, Beneficiary Units must report to the Ministry of Health (Department of Planning, Department of Finance and Accounting) for guidance on receipt and use. When permission to use is granted, Beneficiary Units must reflect this in their accounting records and settle accounts according to current regulations.

Part 3. Accounting Records

Article 13. After completing the procedures for receiving goods, the beneficiary units must promptly and fully reflect all sources of funds and goods received (both in quantity and value) on accounting vouchers and books in accordance with the relevant regulations and Decision No. 999/TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance, and Decision No. 144/BYT-QĐ dated January 31, 1997, issued by the Minister of Health regarding the System of Accounting Regulations for Administrative and Public Services.

Article 14. Accounting for aid funds and goods:

The basis for recording in the accounting books of the beneficiary units is the Vietnamese dong and the value of foreign currency confirmed by the Ministry of Finance as non-repayable aid converted into Vietnamese dong according to each item and provision of the State Budget Manual recorded in the confirmation letter for aid funds.

For aid in the form of goods: The basis for accounting records is the actual value of the goods received in Vietnamese dong or the value of foreign currency converted into Vietnamese dong. The exchange rate used for conversion is based on the rate specified on the aid goods confirmation letter at the time of issuance. In cases where there is a discrepancy between the actual quantity of goods received and the aid confirmation letter (either increase or decrease), the beneficiary unit must go to the place where the aid confirmation procedures were carried out to request adjustments.

For expenses under the control of the beneficiary unit but directly paid by the foreign side such as payments for experts, conferences, training, visits, internships abroad, or technical consulting fees in Vietnam without original receipts, these shall not be recorded in the accounting books of the beneficiary unit.

Staff members of the beneficiary unit who have temporarily borrowed from the budget to attend conferences, seminars, training, visits, internships abroad must collect all necessary documents and settle accounts immediately upon returning to the country.

Article 15. During the implementation process, if the Project Implementation Unit generates other income such as proceeds from packaging waste, sale of tender documents, bid bond, performance bond... the Project Implementation Unit must manage and use them in accordance with current regulations.

During the implementation process, if the beneficiary unit generates income such as bank deposit interest, income from packaging materials, etc., it must compile and report proposals for guidance on usage to the Ministry of Health for review and report to the competent authority for permission to use.

Part 4. Usage Regulations for Aid

Article 16. When withdrawing money for activities, the beneficiary unit must submit a request for fund transfer (Form No. 4 attached hereto) to the Ministry of Health (Financial Accounting Department) along with the following related documents:

+ Project documentation or agreement approved by the competent authority (if the project is requesting funds for the first time)

+ Budget for the activity of the beneficiary unit, approved by the head.

+ Documents related to bidding and approval of bidding results, contract approval (if the project uses aid funds for construction, repair, purchase of equipment, and hiring contracts, hiring technical consultants, etc.)

+ Confirmation letter for aid funds confirmed by the Ministry of Finance as non-repayable aid.

Article 17. The Ministry of Health (Financial Accounting Department) will transfer the amount of Vietnamese dong into the account of the beneficiary unit at the Treasury to implement activities in accordance with the items and objectives confirmed by the Ministry of Finance for the aid funds, except for beneficiary units directly managed and implemented by the Ministry of Health, whose budgets are transferred into the account of the Project Management Board of the Ministry of Health.

Article 18. Using foreign currency for project activities follows the principle that the project documentation or agreement approved by the competent authority includes a list of expenditures for:

- Payment for imported goods and services from abroad (including incidental costs related to the import of goods and services)

- Payment for goods and services provided by domestic organizations and individuals permitted to receive foreign currency.

- Withdrawal of foreign currency cash, transfer to individuals working for the beneficiary unit when dispatched abroad and payment of salaries, bonuses, and other allowances to employees of the beneficiary unit.

Article 19. All expenditure activities from aid sources must be detailed based on the annual budget approved and in accordance with the objectives agreed upon by the funding organization. Beneficiary units may not exceed the agreed amounts with the aid organization.

If the project documentation or agreement does not specify the expenditure levels, the beneficiary unit must spend according to the terms agreed with the aid organization and based on the current state spending standards.

Article 20. During the operation period, if there is a need to adjust the budget (from one activity to another) but still within the overall project plan, the beneficiary unit must agree with the aid organization and report to the Ministry of Health for consolidation and request approval from the competent authorities.

Article 21. Beneficiary units that are not provided with matching government capital must arrange within the aid budget, economize to cover project management costs such as allowances for兼任职务补贴、合同工资、租赁办公场所费用（如有）、电话和传真费等，但不得影响项目的既定目标。上述支出项目，受益单位必须根据国家现行的支出标准进行。

Article 22. Beneficiary units using aid funds to purchase equipment, construct, or repair and upgrade fixed assets must comply with the current state bidding regulations. Beneficiary units may not divide procurement packages for equipment, construction, repair, and upgrading of fixed assets to bypass the bidding process.

Part 5. Report on the Receipt of Aid, Settlement, and Transfer of Assets

Article 23. Each quarter throughout the year, the Heads of Direct Beneficiary Units using non-repayable aid sources must prepare reports on the receipt and use of such aid and submit them to the Ministry of Health (Department of Finance and Accounting, Department of Planning). For reports from Beneficiary Units managed and allocated funds by the Project Management Board under the Ministry of Health, they shall be submitted to the Board for consolidation and then sent to the Ministry of Health (Department of Finance and Accounting, Department of Planning). The Ministry of Health (Department of Finance and Accounting) will consolidate all information on the receipt and use of aid within its management scope and send it to the Ministry of Finance (Form No. 5 attached hereto).

Article 24. Annual settlement: Based on the instructions for closing accounting books at the end of the year and preparing reports on state budget revenue and expenditure issued by the Minister of Finance and the guidelines of the Ministry of Health, the Beneficiary Units are responsible for preparing detailed aid settlement reports as follows:

Non-repayable aid settled under "operating expenses" (Account 661) includes:

- Funds and goods provided by foreign organizations or individuals to Beneficiary Units for specific tasks not included in projects.

- Gifts, donations, auction items...

- Funds transferred by international organizations to Beneficiary Units to implement service contracts: research investigation contracts, document translation contracts...

- Emergency support...

Non-repayable aid settled under "project expenses" (Account 662) includes:

- Funds and goods provided by aid organizations to Beneficiary Units to fulfill approved commitments.

- Funds and goods donated by international organizations, domestic enterprises, and joint ventures for programs and objectives to implement projects.

The content and format of the settlement report are implemented according to Decision No. 999 TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance, and Decision No. 144 BYT-QĐ dated January 31, 1997, issued by the Minister of Health regarding the issuance of the Administrative and Public Service System including:

B 01 - H: Account Balance Sheet

B 02 - H: Summary of Financial Resources and Settlement of Used Funds

B 03 - H: Report on Changes in Fixed Assets

B 05 - H: Explanation of Financial Statements

B 02 - H: Detailed operating expenses proposed for settlement.

B 02 - H: Detailed project expenses proposed for settlement.

Article 25. For ongoing Projects, the balance on the account at the end of the fiscal year is carried over to the next year for continued implementation (excluding counterpart funds on the limit account).

Article 26. Upon completion of the Project, the Head of the Beneficiary Unit is responsible for preparing a report on the receipt and use of non-repayable aid, settling counterpart funds (if any), and other revenues such as proceeds from selling packaging materials, bank interest income, etc., itemized according to the sub-items approved by the direct funding agency and authorized approving body.

Article 27. After the Project settlement has been confirmed by the auditing body (if applicable), the Head of the Beneficiary Unit is responsible for submitting the report to the Ministry of Health (Department of Finance and Accounting) for review and approval. For Beneficiary Units under the Ministry of Health, they should submit to the Project Management Board for consolidation and reporting to the Ministry of Health. For construction investment projects: Project settlement reports should be submitted to the Ministry of Health (Department of Medical Equipment and Construction, Department of Finance and Accounting) and the Development Support Fund for approval.

Article 28. If there is surplus funding when the Project ends, the Head of the Beneficiary Unit must report and propose handling measures to the Ministry of Health for consolidation and reporting to the competent authorities for resolution. Any use of surplus funds without an approved directive from the competent authority violates the State Budget Law and will be recovered pending resolution.

Article 29. Upon completion of the Project and approval of the Project settlement, the Head of the Beneficiary Unit must proactively organize the transfer of assets based on the following principles:

- Assets used for Project management are transferred to the administrative management body of the Project Management Board.

- Assets of the Project assigned to Beneficiary Units to implement the Project are transferred to those Beneficiary Units.

The receipt, registration, management, and transfer of assets must comply with the provisions of Government Decree No. 14/1998/NĐ-CP dated March 6, 1998, on state asset management and related guiding documents.

Chapter III.

INSPECTION AND SUPERVISION WORK

Article 30. The Head of the Beneficiary Unit receiving non-repayable aid must regularly inspect the progress of achieving Project goals, financial management work of the Project, and financial management work of the Project in terms of compliance with accounting bookkeeping systems, expenditure regulations, asset management, and financial reporting systems. The Project Management Board under the Ministry of Health will conduct regular or surprise inspections of Beneficiary Units under their management in terms of financial management of Projects and implementation of commitments to funding agencies.

Article 31. The Ministry of Health (Department of Finance and Accounting, Department of Planning) will regularly or unexpectedly organize inspections of financial accounting management of Projects, progress of Project content, and cooperate with the Ministry of Finance to conduct surprise inspections of Beneficiary Units on compliance with the State Budget Law, legal regulations on foreign exchange management, state financial management, and state asset management with non-repayable aid sources.

Chapter IV

IMPLEMENTING PROVISIONS

Article 32. The Head of the Beneficiary Unit receiving non-repayable aid must strictly manage; spend economically, avoiding waste; instruct the finance management department to organize accounting entries, maintain ledgers, and comply with financial reporting requirements as stipulated.

Article 33. During implementation, if difficulties arise, Beneficiary Units are advised to reflect these issues to the Ministry of Health (Department of Finance and Accounting) for consideration and resolution.