Circular No. 20-TC/KBNN guiding the management, allocation, and settlement of state budget expenditures through the State Treasury

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 27/1997/TC-VT DATED MAY 23, 1997 ON GUIDELINES FOR THE MANAGEMENT OF STATE FINANCIAL RESOURCES FOR THE RECYCLING OF FUNDS IN SOCIAL MARKETING ACTIVITIES OF CONDOMS AND CONTRACEPTIVE DEVICES

Pursuant to the current State Budget Law and guiding documents;
Based on Decree No. 20/CP dated March 15, 1994 of the Government on the regulations for managing and using official development assistance (ODA) sources;
After reaching consensus through discussions with government coordinating agencies on managing ODA sources, the Ministry of Health and the National Committee for Population and Family Planning, the Ministry of Finance hereby guides the mechanism for managing state financial resources for recycling funds in social marketing activities of condoms and contraceptive devices as follows:

I. GENERAL PROVISIONS:

1. All sources of capital originating from the state budget (state budget, foreign aid, loans...) used for recycling activities in social marketing of condoms and contraceptive devices fall within the scope of management under this Circular.

2. Ministries, sectors, localities, state agencies, social organizations (hereinafter referred to as units) permitted by the state to carry out social marketing activities of condoms and contraceptive devices must establish management departments to conduct these activities and strictly comply with existing state financial management regulations as well as the provisions of this Circular.

3. Condoms and contraceptive devices (hereinafter referred to as products) introduced into social marketing must be types of condoms and contraceptive devices that have been registered for quality, design, and model according to regulations exclusively for social marketing purposes and approved for circulation and use in Vietnam by competent state authorities.

II. SPECIFIC PROVISIONS:

1. Preparation of revenue and expenditure budgets:

1.1. Annually, based on programs and projects already approved by the Government for signing with donor organizations, units must prepare budgets for revenue and expenditure for social marketing activities together with their state budget revenue and expenditure budgets to submit to the Ministry of Finance and the Ministry of Planning and Investment for review and submission to the Prime Minister for approval.

1.2. The revenue and expenditure budgets must clearly specify the following contents:

1.2.1. Plans for receiving money and goods from each source of capital (value and quantity of each type).

1.2.2. Sales plans, revenue collection, and purchase plans for capital turnover.

2. Tendering and selection of agents:

Public tendering and compliance with state economic contract regimes shall be conducted for the following activities:

2.1. For procurement of goods and services (repackaging, labeling, advertising...) within the country valued at over 100 million dong, the procedures set forth in Decision No. 20 TC/KBNN dated January 17, 1996 of the Ministry of Finance shall be followed.

2.2. Selection of distribution agency systems. Entities from all economic sectors with permits to trade in health and family planning products may be selected as distribution agents.

2.3. Selection of enterprises entrusted with importing products needed from abroad. Enterprises with functions in exporting and importing health products may be chosen to purchase products for capital turnover.

2.4. Goods purchased from abroad shall be procured through international tenders in accordance with commitments made with funding organizations.

3. Procedures for receiving aid:

3.1. For goods or cash provided as aid by governments or international organizations, units must complete the procedures for confirming aid according to Circular No. 22 TC/VT dated March 20, 1995 and Circular No. 87 TC/VT dated October 27, 1994 of the Ministry of Finance regarding the management of financial resources for foreign aid.

4. Pricing:

4.1. Wholesale and retail prices for each type of product, commission rates, and other cost standards shall be determined by the Pricing Council of the central ministry or sector, or locality, authorized by the state to implement social marketing activities. The council includes participation from the Government Price Board, the Ministry of Finance, and other relevant agencies.

4.2. For imported aid goods, the managing agency must organize an inventory and price them according to the principles outlined in Point 4.1.

4.3. Retail prices decided by the Pricing Council must be clearly printed on the packaging of the products before they are introduced into social marketing.

5. Purchasing and selling goods:

5.1. Units shall organize sales through the distribution agent system selected in accordance with Point 2.2.

5.2. Units permitted by the state to carry out social marketing activities shall open a separate account at the Treasury to receive recovered sales proceeds and remit them to the state budget.

5.3. Monthly, distribution agencies are responsible for settling and depositing the full amount of sales proceeds (the amount due after deducting reasonable and valid expenses) into the account opened at the Treasury as stipulated in the contract signed with the unit authorized by the state to implement social marketing activities of contraceptive devices. After consolidation, units are responsible for depositing the entire amount mentioned above into the state budget account opened at the Treasury.

5.4. Purchases of goods from abroad for continued capital turnover must be carried out through entrustment import contracts with medical companies with export-import functions selected in accordance with Point 2.4.

5.5. Any re-exportation of condoms and contraceptive devices under the social marketing program is strictly prohibited.

6. Procedures for allocating revolving funds:

6.1. Based on the sales plan, revenue collection, and purchase plans for recycling (as specified in Point 1.2) of units implementing social marketing activities, which have been approved by supervisory agencies and functional agencies, the Ministry of Finance will allocate funds from the state budget to continue the implementation of social marketing activities.

6.2. To ensure timely allocation of funds, at the end of each quarter, units implementing social marketing activities must submit the following documents to the Ministry of Finance (Department of Budget):

- Proof of the total amount recovered and deposited into the state budget from social marketing activities in the previous quarter.

- Detailed budget of expenditures expected to occur in the next quarter requesting funding.

6.3. The procedures for allocating funds shall be carried out in accordance with the current state budget fund allocation management system.

7. Accounting and settlement systems:

7.1. Units implementing social marketing activities must organize accounting for marketing activities in accordance with Decision No. 999 TC/QĐ/CĐKT dated November 2, 1996 of the Minister of Finance. The accounting scheme applies Model 37 attached to this document.

7.2. Annually, units must prepare final accounts for each source of capital (state budget capital, aid from each organization...) of marketing activities and obtain approval from the competent authority, then submit them to the Ministry of Finance (Department of Administrative Services and Management and Reception of Aid) for verification of final account data and compilation of final accounts for the state budget to be submitted to the Government in accordance with guiding documents implementing Decree 87/CP of the Government detailing the decentralization, management, preparation, and compliance with final accounts of the state budget. The report format uniformly uses Form F02-2H (attached).

III. IMPLEMENTATION:

1. The managing agencies are responsible for inspecting and supervising sales in accordance with the retail prices determined by the Pricing Council and recorded on the product packaging.

2. The Ministry of Finance and related agencies are responsible for periodic or spot checks on the use of recycled funds for social marketing activities. In cases where improper use of funds is discovered, the Ministry of Finance will suspend fund allocation and notify the competent authority for handling.

3. This Circular takes effect fifteen days from the date of signature. During implementation, if there are any difficulties, units must promptly reflect them to the Ministry of Finance for consideration and timely revision.

(F02-2H)

DETAIL

ACTUAL EXPENDITURE FOR PROJECT PROPOSED FOR FINAL ACCOUNTING

Project Name:... Code:...

Belongs to Program:...

Start Date:... End Date:...

Total Approved Budget:... Amount Approved This Period:...

Implementing Agency:...

Explanation

Research Objectives and Content According to Scheduled Progress:...

.................................................................

Quantity of Completed Products:...

.................................................................

Day... month... year 199...

Prepared by Accounting Supervisor Head of Unit
(Signature, Full Name) (Signature, Full Name) (Signature, Stamp)