Circular No. 23/2022/TT-BTC guiding the management of state financial resources from non-refundable foreign aid included in state budget revenue.

CIRCULAR

GUIDELINES FOR THE MANAGEMENT OF STATE FINANCE FOR NON-REPAYABLE FOREIGN AID FUNDS FROM ABROAD BELONGING TO STATE REVENUE

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Management and Use of State Assets dated June 21, 2017;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016, issued by the Government, detailing the implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 40/2020/NĐ-CP dated April 6, 2020 of the Government detailing implementation of certain provisions of the Public Investment Law;

Pursuant to Decree No. 151/2015/NĐ-CP dated December 26, 2017 of the Government detailing some provisions of the Law on Management and Use of Public Assets;

Pursuant to Decree No. 114/2021/NĐ-CP dated December 16, 2021 of the Government on management and use of official development assistance (ODA) and preferential loans from foreign sponsors;

Pursuant to Decree No. 80/2020/NĐ-CP dated July 8, 2020 of the Government on management and use of non-repayable foreign aid not included in official development assistance provided by foreign agencies, organizations, and individuals for Vietnam;

Pursuant to Decree No. 50/2020/NĐ-CP dated April 20, 2020 of the Government on receiving, managing, and using international emergency aid to assist in disaster relief and recovery;

Pursuant to Decree No. 11/2020/NĐ-CP dated January 20, 2020 of the Government on administrative procedures under the domain of State Treasury;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

This Circular takes effect from February 15, 2025.

The Minister of Finance issues this Circular guiding the management of state finance for non-repayable foreign aid funds from abroad belonging to state revenue.

Chapter I.

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides the management of state finance for non-repayable foreign aid funds (hereinafter referred to as aid) belonging to state revenue, including:

a) Aid supporting the central budget or provincial budgets (hereinafter collectively referred to as provincial budgets).

b) Independent aid or aid accompanying a loan for programs or projects under the expenditure tasks of the central budget (including additional targeted expenditures from the central budget for provincial budgets) or direct aid for programs or projects under the expenditure tasks of provincial budgets.

c) Non-project aid to support the implementation of expenditure tasks of the central budget, including additional targeted expenditures for provincial budgets, or direct support for the implementation of expenditure tasks of provincial budgets.

2. Expenditures directly paid by the sponsor without sufficient documentation for accounting in the state budget and at the unit shall not fall within the scope of this Circular.

Article 2. Applicability

1. Managing agencies, program/project managers, non-project managers, and agencies receiving aid funds from state revenue.

2. Financial agencies include: Ministry of Finance (Debt Management and External Financial Department, State Treasury, General Department of Customs), Provincial Departments of Finance.

3. Commercial banks where the aid fund recipient, program/project manager opens an account to receive aid funds.

4. Other agencies, units, organizations, and individuals related to the management and implementation of aid funds.

Article 3. Principles for the management of financial aid

1. All aid must be classified, managed, monitored, and accounted for according to each funding method (program, project, or non-project); the nature of state budget expenditures (current expenditures, investment and development expenditures, or other state budget expenditures), and the organizational implementation method (foreign sponsor directly, or entrusting another organization to implement, or the program/project manager in Vietnam implementing).

2. Non-repayable aid funds from state revenue must be budgeted, fully accounted for, and settled in a timely manner according to regulations on settlement of state budget revenues and expenditures and settlement of program/project expenditures.

3. The managing agency is responsible for preparing a budget for state revenue and expenditure that closely matches the actual implementation capacity for the year to receive, implement, account for, and settle state revenue and expenditure for the aid according to this Circular; promptly propose supplementary budget arrangements in case of sudden aid revenue and expenditure needs; allocate aid funds when there is a need and capability to use them.

4. The handling of annual budget revenues and expenditures for aid is carried out according to the legal regulations on state budget management.

5. All monetary aid directly managed and implemented by the program/project manager in Vietnam:

a) Shall be transferred into a separate account opened at the State Treasury or commercial bank immediately upon receipt; monitored, accounted for, and settled separately for each specific aid amount.

b) Shall not transfer aid funds for specific programs/projects into personal accounts, rented, borrowed, or common accounts of agencies/units upon receipt. Accounts shall not be opened overseas to receive aid funds, except in cases required by the sponsor's legal regulations and stipulated in the Aid Agreement/Assistance Agreement.

6. Monetary aid implemented by the program/project manager in Vietnam must be controlled according to legal regulations on state budget expenditure control.

7. Accounting into the state budget is based on proposals from the program/project manager, non-project manager; budgets assigned by authorized bodies and payment documents as prescribed.

8. For aid provided by the sponsor in the form of goods, assets, or projects including key handover aid, the managing agency is fully responsible for managing, monitoring, allocating, coordinating with the sponsor to determine the value of the assets provided to Vietnam, and implementing the accounting of state budget revenues and expenditures and settlement according to regulations.

Article 4. Tasks and authorities of financial agencies and commercial banks

1. The Ministry of Finance

a) Guide the financial management system for aid funds.

b) Inspect and supervise the implementation of state financial management regulations concerning the management and use of aid funds from the central budget.

c) Review the annual settlement of revenue and expenditure of aid funds from the central budget.

2. Department of Finance

a) Inspect and supervise the implementation of state financial management regulations concerning the management and use of aid funds from local budgets.

b) Review the annual settlement of revenue and expenditure of aid funds from provincial budgets.

c) Fulfill the reporting responsibilities as prescribed by law and this Circular.

3. State Treasury

a) Open aid accounts for agencies and units receiving aid.

b) Carry out monitoring of aid funds transferred into the account of the program/project owner and implement disbursement control, disbursement, accounting, recording of revenue and expenditure of state budget for aid funds according to regulations.

c) Fulfill the reporting responsibilities as prescribed by law and this Circular. For aid under domestic financial mechanisms, the reporting procedures shall be implemented as prescribed in Circular No. 15/2021/TT-BTC dated February 18, 2021 of the Ministry of Finance on the system and report forms for the implementation and payment of public investment capital plans.

4. Customs Authority

a) Implement inspection and clearance of aid goods according to regulations.

b) Implement reporting systems as prescribed by law.

5. Commercial Banks

The commercial bank where the program/project owner opens an account to receive aid funds shall implement disbursement of aid funds and provide information and reporting systems as prescribed by law and this Circular.

Article 5. Tasks and authorities of supervisory agencies

1. Direct, guide, and inspect subordinate units in properly implementing financial management systems for aid funds as prescribed by law and this Circular.

2. Prepare and consolidate financial plans for foreign aid of units under and directly under them into the annual state budget estimate; implement allocation of state budget estimates for aid funds to units under and directly under them according to regulations.

3. Review and approve the annual settlement of foreign aid funds of the state budget for subordinate budgetary units; consolidate the annual settlement report of state budget funds for aid according to regulations.

4. Review and approve or submit to the competent authority for approval the settlement of completed programs/projects and aid grants according to regulations on program/project settlement and aid grant settlement; organize management and accounting of assets formed from aid grants, programs, and projects according to regulations.

5. Implement reporting on the financial management of aid grants, programs, and projects according to law, this Circular, and bear responsibility for the accuracy of these reports.

6. Submit copies of the approval decisions for programs/projects and non-project aid, Aid Agreements/Grant Agreements to the Ministry of Finance within 10 working days from the date of circulation of these documents for aid from the central budget revenue or to the Department of Finance for aid from provincial budget revenue.

Article 6. Responsibilities of the Aid Recipient, Program, and Project Manager

1. Comply with financial management regulations as guided by this Circular.

2. Bear legal responsibility for receiving aid funds, implementing aid programs, projects, and non-project aid in accordance with legal provisions, aid agreements, and decisions approving aid amounts or decisions approving aid programs, projects, and non-project aid from competent authorities.

3. Prepare annual, three-year, and five-year budget estimates for aid fund revenues and expenditures to submit to the supervising agency for consolidation and implementation of the approved aid fund budget estimates according to regulations.

4. Submit final account reports on aid funds, final account reports on aid programs, projects, and non-project aid annually and upon completion as prescribed by law and this Circular.

5. Report fully and promptly to the supervising agency on the situation of receiving, managing, and using aid funds as required.

6. Prepare reports, files, and vouchers to send to the State Treasury at the transaction location to implement accounting for state budget revenues and expenditures from received and utilized aid funds. Prepare annual final account reports on aid and final account reports on aid funds, final account reports on aid programs, projects, and non-project aid completed for submission to competent authorities for review and approval according to regulations on final accounts of the state budget and final accounts of aid programs, projects, and non-project aid.

7. Organize the management of assets received and/or formed from aid programs and projects; record assets at the receiving unit according to regulations.

Chapter II. SPECIFIC PROVISIONS

Section 1. BUDGET REVENUE AND EXPENDITURE PLAN, FINANCIAL PLAN FOR AID FUNDS, AND AID FUND ESTIMATE.

Article 7. Budget Revenue and Expenditure Plan from Aid Funds by Program, Project, and Non-Project

1. The budget revenue and expenditure plan from aid funds by program and project is part of the state budget revenue and expenditure plan, including: Financial budget plan for a five-year period, three-year period, and annual budget revenue and expenditure estimate.

2. The format, procedures for preparing and approving the five-year and three-year budget revenue and expenditure plans from aid funds shall be implemented in accordance with the State Budget Law and guiding documents.

Article 8. Financial Plan for Aid Funds of Programs, Projects, and Non-Projects

1. Annually, the program/project manager (except for managers of programs/projects that are or are run by state-owned enterprises) prepares a financial plan for aid funds for programs, projects, and non-projects approved by competent authorities and to be implemented in the planning year.

2. The basis for preparing the plan is the aid agreement, decision approving the aid amount, or decision approving the program/project using aid funds from competent authorities.

3. Contents of the financial plan include:

a) Method of implementing the aid or implementing aid programs, projects, and non-project aid.

b) Plan for withdrawing funds and method of withdrawing funds from the sponsor.

c) Plan for using aid funds and accounting for state budget.

4. The financial plan for aid funds is prepared together with the annual state budget revenue and expenditure estimate and submitted to the supervising agency for approval. For central government budget revenue sources, it is sent to the Ministry of Finance (Deputy General Department of Debt Management and Foreign Financial Affairs). For provincial government budget revenue sources, it is sent to the Provincial Department of Finance for coordination in managing financial matters of aid funds, programs, projects, and non-projects using aid funds before accounting and finalizing them in the state budget.

Article 9. Budget for revenue and expenditure from foreign aid funds annually

1. The content of the proposal to allocate the budget draft shall be prepared by the managing agency:

a) Plan for disbursement of aid funds for each program, project, and aid item, including programs, projects, and aid items arising during the year and those carried over from previous years.

b) For programs, projects, and aid items spanning multiple years, clearly state the approved total amount of aid funds, the cumulative amount of aid funds expected to be implemented at the beginning of the budget period, and the progress of implementation of the program, project, or aid item within the budget year.

c) Sources and structure of the budget comprising regular expenditure, public investment expenditure, capital investment for enterprises and economic organizations, or other expenditures; categorized according to the spending tasks of the central government budget (including targeted supplementary expenditures for provincial budgets) and the spending tasks of provincial budgets from aid funds.

d) Evaluation of the ability to implement the budget: detailed explanation for each aid item, each program, and each project; the total amount of aid funds approved by the competent authority, the cumulative amount of disbursed funds up to the beginning of the budget period, the undisbursed amount, planned activities and expenses to be incurred during the budget period; evaluation of the results of implementing the assigned budget for the two most recent years for programs and projects with implementation periods exceeding two years up to the budget year; assessment of the projected progress of the program or project in the budget year.

2. The agency responsible for consolidating the budget:

a) For aid funds included in the revenue of the central government budget, the managing agency sends the Ministry of Planning and Investment for consolidation regarding investment expenditures, and sends the Ministry of Finance for consolidation regarding regular expenditures and other expenditures (if any) to incorporate into the central government budget revenue and expenditure draft as prescribed, reporting to the competent authority for review and decision.

b) For aid funds included in the revenue of the provincial government budget, the managing agency sends the Provincial Department of Planning and Investment for consolidation regarding investment expenditures, and sends the Provincial Department of Finance for consolidation regarding remaining expenditures to incorporate into the provincial government budget revenue and expenditure draft as prescribed, reporting to the competent authority for review and decision.

3. After the annual state budget expenditure has been allocated by the competent authority, before December 31 of each year, ministries, agencies equivalent to ministries, government agencies, other central-level agencies, and provincial People's Committees must complete the allocation of the state budget to each subordinate agency and unit down to each program and project within the scope of the total budget expenditure allocated by the competent authority, sending to the Ministry of Finance (for regular expenditure funds), and the Ministry of Planning and Investment (for investment expenditure funds) for aid items under the spending tasks of the central government budget; sending to the Provincial Department of Finance (for regular expenditure aid funds) and the Provincial Department of Planning and Investment (for investment expenditure aid funds) for aid items under the spending tasks of the provincial government budget for monitoring and management.

4. For aid items arising after the submission of the budget draft, based on the capacity to implement state budget expenditure, the managing agency prepares a supplementary budget draft and submits it to the financial agency for consolidation, presenting it to the competent authority for review and decision in accordance with the State Budget Law to serve as the basis for accounting and settlement of state budget revenue and expenditure.

5. Proposals to adjust and supplement the state budget revenue and expenditure draft funded by aid must ensure the implementation capability of the program, project, or non-project manager.

6. For aid in the form of goods, materials, or turnkey projects implemented in Vietnam by the aid provider and handed over to the receiving agency in Vietnam, if there is no state budget revenue and expenditure draft decided upon by the competent authority at the time of handover of goods, materials, or projects, the managing agency of the aid item shall prepare a proposal to adjust and supplement the state budget revenue and expenditure draft in accordance with the State Budget Law to facilitate the accounting recording of state budget revenue and expenditure.

Article 10. Cancellation or Transfer of Budget Estimates

1. Cancellation of budget estimates for unused surplus and/or undetermined specific expenditure tasks after the adjustment period for finalizing the state budget settlement.

2. For budget estimates of grant capital with specific expenditure tasks that have been organized and implemented but not completed within the budget year, and meet the conditions to be transferred according to the laws on the state budget:

The Ministry of Finance shall confirm the amount of transferred budget estimates for central government budget expenditures, while the Department of Finance shall confirm the amount of transferred budget estimates for provincial government budget expenditures of programs and projects as the basis for implementing the budget, auditing, and settling state budget expenditures.

Section 2. MANAGEMENT REGIME OF FINANCIAL RESOURCES IN THE FORM OF GRANTS

Article 11. Grants in the form of budget support funds

1. Disbursement and payment of grants in the form of budget support funds

a) Based on the grant agreement and agreement, the Ministry of Finance shall cooperate with the donor to disburse grant funds to the state budget and transfer foreign currency to the centralized foreign exchange fund of the state budget.

b) For targeted grants supporting the budget, after the grant funds are disbursed to the state budget as stipulated in point a of this clause, if authorized to be used for specific programs and projects, based on the approved state budget revenue and expenditure estimates, the decision approving the program and project, and the implementation schedule of the specific program and project, the program and project manager shall withdraw the budget estimate from the State Treasury according to the laws on managing state budget expenditures.

2. Accounting of state budget for grants in the form of budget support funds

a) Recording state budget revenue: Based on the funding transfer documents from the donor and the notification from the finance authority, the State Treasury shall record state budget revenue in Vietnamese dong.

b) Recording state budget expenditure: Expenditure and accounting of state budget expenditure shall be carried out in accordance with the laws on the state budget.

Article 12. Grants in the form of money for programs, projects, and non-project activities implemented by Vietnamese program and project managers

1. Opening an account to receive grant funds

Based on the grant agreement and the decision approving the program, project, or grant, the program and project manager shall open an account to receive grant funds at the State Treasury or commercial bank as stipulated in Clause 5, Article 3 of this Circular. Within 15 days from the date of opening the account, report to the Ministry of Finance for grants from the central government's revenue sources or to the Department of Finance for grants from the provincial government's revenue sources, simultaneously sending information about the grant receipt account to the State Treasury.

2. Control of expenditure, disbursement, and accounting of grant funds

a) Control of expenditure

The program and project manager shall implement expenditure control at the State Treasury where they are registered for each expenditure from the grant fund according to the regulations on managing the state budget. The procedures and formalities for expenditure control shall be carried out according to the legal provisions on administrative procedures under the domain of the State Treasury.

b) Disbursement of grant funds

Grant disbursement from the account opened at the State Treasury or commercial bank shall be based on the grant agreement, the decision approving the program, project, or non-project activity by the competent authority, the state budget expenditure estimate, the implementation progress of the program or project, and the expenditure control confirmation by the State Treasury.

For expenditures from the grant fund that are not confirmed by the State Treasury for expenditure control, the program and project manager shall return the funds to the grant receipt account.

c) Accounting of grant funds into the state budget

Monthly or upon each occurrence of expenditure from the grant fund account, based on expenditure control and the recording and payment documentation according to the government's legal provisions on administrative procedures under the domain of the State Treasury, the State Treasury shall carry out the recording of revenue and expenditure of the central government budget or provincial government budget according to the分级翻译如下，请注意，最后一句需要进一步明确以符合官方文件的准确性和正式性：

In cases where the managing agency of ODA grants is the People's Committee of a province, the recording of grant revenue of the central government budget and the recording of central government budget expenditure to supplement the provincial government budget with specific purposes shall be carried out. At the same time, the recording of provincial government budget revenue from the supplementary specific-purpose funds of the central government budget and the recording of expenditure for the program and project shall be conducted.

d) For grant funds received into an account opened at a commercial bank but not yet expended and not yet recorded in the state budget revenue and expenditure, within five working days from the date of receiving the disbursement from the donor, the program and project manager shall notify in writing along with the deposit voucher to the State Treasury and the Ministry of Finance (Debt Management and External Financial Affairs Department) for grants from the central government's revenue sources or to the Department of Finance for grants from the provincial government's revenue sources to enable the State Treasury to monitor the received grant funds of the program and project manager and for the finance authority to compile statistics. Simultaneously, the program and project manager shall inform the managing agency to manage the received funds.

If the program and project manager has received the grant funds but has not notified the State Treasury where the transaction was made, the State Treasury will not implement expenditure control for the program and project.

e) Monthly, the commercial bank where the program and project manager uses the grant funds from the state budget to open an account shall send a statement of account to the program and project manager and simultaneously send it to the State Treasury for coordinated management.

3. In cases where the program and project manager is a state-owned enterprise, the accounting shall be carried out as follows:

a) For state-owned enterprises holding 100% of the charter capital, where they meet the conditions to accept aid funds as prescribed in the State Budget Law and Resolution No. 69/2014/QH13 of the National Assembly on the management and use of state capital for production and business at enterprises, based on the decision of the competent authority allowing an increase in the charter capital of the enterprise, the aid funds used shall be recorded as state budget revenue and recorded as state budget expenditure to increase state capital in the enterprise.

For enterprises in which the state holds more than 50% but less than 100% of the charter capital or the total number of voting shares, where they meet the conditions to accept aid funds and are approved by the competent authority according to the provisions of the State Budget Law, the Enterprise Law, the enterprise charter, and related laws, the aid funds used shall be recorded as state budget revenue and recorded as state budget expenditure to increase state capital in the enterprise.

b) For other expenses that meet the conditions for implementation as prescribed, they shall be recorded as state budget revenue and recorded as state budget expenditure according to the legal provisions on the state budget.

Article 13. Aid in kind, goods, and services, including aid directly implemented in Vietnam by the donor through a key-to-key method.

1. The accounting of the budget shall be carried out according to the provisions of Clause 4, Article 24 of Decree No. 80/2020/NĐ-CP dated July 8, 2020 of the Government on the management and use of non-reimbursable aid not included in official development assistance provided by foreign agencies, organizations, and individuals for Vietnam; Clause 3, Article 90 of Decree No. 114/2021/NĐ-CP dated December 16, 2021 of the Government on the management and use of official development assistance (ODA) and concessional loans from foreign donors; and Clause 1, Article 21 of Decree No. 50/2020/NĐ-CP dated April 20, 2020 of the Government on receiving, managing, and using emergency international aid for disaster relief and recovery, based on the aid agreement, the approval decision to accept the aid, and the transfer of ownership documents of goods to the Vietnamese side, including bills of lading, invoices, handover certificates, and other relevant documents as prescribed by law and stipulated in the aid agreement.

2. For aid in kind, goods, and services directly implemented by foreign donors or entrusted to a unit not being the program/project/non-project manager in Vietnam and aid under the key-to-key method: The supervising agency is responsible for determining the value of the donated goods, goods, and services provided by the foreign donor.

Section 3. ACCOUNTING EXCHANGE RATE, ACCOUNTING ADJUSTMENTS, AND EXPENDITURE STANDARDS

Article 14. Accounting exchange rate for the state budget

1. For monetary aid for programs/projects, the exchange rate shall be applied as prescribed in Article 78 of Decree No. 114/2021/NĐ-CP dated December 16, 2021 of the Government on the management and use of official development assistance (ODA) and concessional loans from foreign donors.

2. For aid in kind, goods, and services, the accounting exchange rate for the state budget shall be the rate published by the Ministry of Finance (State Treasury) at the time of recording the aid.

Article 15. Adjusting budget revenue and expenditure accounting

For errors occurring during the process of budget revenue and expenditure accounting, adjust the national budget accounting in accordance with the provisions of the law on state budget. Regarding the fiscal year for adjusting accounting:

1. Unsettled budget revenues and expenditures shall be adjusted to the year of accounting.

2. Settled budget revenues and expenditures shall be adjusted to the current year.

Article 16. Expenditure Standards

1. Expenditure standards for counterpart funds: apply according to the regulations of the law on managing state budget expenditures.

2. Expenditure standards for grant funds:

a) Expenditures from grant funds shall apply expenditure standards as prescribed by the donor, or as stipulated in international treaties or agreements.

b) For special expenditures where there are no provisions from the donor and no stipulations in international treaties or agreements and no provisions of the law on expenditure standards, the competent authority shall establish expenditure standards, seek non-opposition from the donor, and reach agreement with the Ministry of Finance to decide and implement them.

c) For expenditures not covered by the provisions of points a and b of Clause 2 of this Article, they shall be implemented according to domestic expenditure standards.

Section 4. ASSET MANAGEMENT

Article 17. Management of Grant Assets

1. The management, utilization, and disposal of assets formed from non-reimbursable grants from foreign sources within the scope of the state budget (except for assets under point 2 of this Article) shall be carried out in accordance with the provisions of the law on managing and utilizing public assets.

a) During the implementation of grant programs, projects, or non-project grants, the competent authority and the program/project/non-project manager have the responsibility to account for the state budget, manage, and utilize the assets of the program/project/non-project in accordance with the law on public assets.

b) Upon completion of grant programs/projects, the competent authority shall instruct the program/project/non-project manager to transfer assets to the operating unit in accordance with the grant agreement/treaty, project documentation approved by the competent authority, and relevant laws.

c) The disposal of assets formed from grant funds of programs/projects/non-projects shall be carried out in accordance with the law on managing and utilizing public assets.

d) Units receiving assets shall be responsible for accounting for the state budget, managing public assets, using them for their intended purposes, and accepting assets in accordance with the law.

2. For assets formed from grant funds under the state budget's capital support for enterprises as stipulated in point b of Clause 1 of Article 36 or point b of Clause 1 of Article 38 of the State Budget Law and Law No. 69/2014/QH13 dated November 26, 2014 on the management and use of state capital for production and business at enterprises, the management and utilization shall be carried out in accordance with the law on the management and use of state capital for production and business at enterprises, the law on managing and utilizing public assets, and related laws.

3. For assets formed from grant funds in the form of goods or materials purchased and provided by the donor to Vietnam, or by foreign entities implementing in Vietnam and transferring assets/results to Vietnam, the receiving unit shall cooperate with the State Treasury to carry out the accounting of budget revenue and expenditure; simultaneously increasing assets at the unit in accordance with the regulations.

Mục 5. SETTLEMENT AND AUDIT

Article 18. Settlement of state budget funds for foreign aid and settlement of programs and projects using foreign aid funds

1. The annual settlement of state budget funds from foreign aid sources shall be carried out based on:

a) The approved state budget revenue and expenditure estimates by the competent authority.

b) The Ministry of Finance shall settle within the allocated budget estimate based on the state budget accounting records of the State Treasury, on the basis of the audit/approval report of the state budget settlement with the managing agency.

c) Any unspent budget surplus at the end of the adjustment period for state budget settlement shall be canceled, except for amounts permitted to be reallocated by the competent authority according to regulations.

d) The managing agency shall be responsible for settling expenses with subordinate budget units in accordance with the laws on the state budget.

2. The settlement of programs and projects using foreign aid funds shall be carried out in accordance with the laws on the settlement of program and project funds, non-project funds.

3. The settlement of completed projects shall be carried out in accordance with Circular No. 10/2020/TT-BTC dated February 20, 2020 of the Ministry of Finance on the settlement of completed projects funded by state resources.

Article 19. Audit

1. The audit of foreign aid projects shall be conducted based on the provisions of the aid agreement and Vietnamese laws.

2. In cases of independent audit: The project sponsor shall be responsible for submitting, or requesting the donor to submit annual independent audit reports or specialized audits to the managing agency and the same-level finance agency for monitoring and management, and to serve the settlement and auditing of foreign aid funds for the project.

Mục 6. REPORTING REGIME

Article 20. Reporting regime on the receipt and use of foreign aid funds by the managing agency

1. Types of Reports:

a) Periodic monthly, six-monthly, and annual reports on the receipt and use of foreign aid funds in cash.

b) Periodic monthly, six-monthly, and annual reports on the receipt and use of foreign aid funds in goods and services.

c) Periodic monthly, six-monthly, and annual reports on the accounting entries of receipts and expenditures of foreign aid funds.

2. Content of the report:

a) Detailed reports on the receipt and use of foreign aid funds in cash, itemized by each program, project, and non-project, and by each source of funds. Content includes: opening balance on the account receiving foreign aid funds; amount received during the period; amount used during the period; closing balance on the account receiving foreign aid funds.

b) Detailed reports on the receipt and use of foreign aid funds in goods and services, itemized by each category of aid in goods and services, and by each source of funds. Content includes: quantity, type, value of goods and services allowed to be received; quantity, type, value of goods and services received during the period; value not yet received by the end of the period.

c) Detailed reports on the accounting entries of receipts and expenditures of foreign aid funds, itemized by each program, project, and non-project, and by each source of funds. Content includes: amount of foreign aid funds recorded as receipts and expenditures in the state budget during the period; amount used but not yet recorded as receipts and expenditures in the state budget.

3. Agency responsible for reporting: The managing agency of the aid program, project, and non-project.

4. Agency receiving reports:

a) The Ministry of Finance for aid from central government revenues.

b) The Department of Finance for aid from local government revenues.

5. Deadline for finalizing report data:

a) Monthly periodic reports: Data for the report covers from the first day of the month to the last day of the reported month.

b) Six-monthly periodic reports: The deadline for finalizing the first six months of the year is from January 1 to June 30 of the reporting period. The deadline for finalizing the last six months of the year is from July 1 to December 31 of the reporting period.

c) Annual periodic reports: From January 1 of the reporting year to January 31 of the following year.

6. Deadline for submitting reports:

a) Monthly reports must be submitted no later than the tenth day of the following month.

For six-monthly and annual reports, they must be submitted no later than July 31 for the period from January 1 to June 30 annually, February 15 of the following year for the period from July 1 to December 31 annually, and February 28 of the following year for the period from January 1 to December 31 of the previous year.

7. Report forms: Forms 01, 02, 03 in Appendix 1 attached to the Circular.

8. Method of submitting reports: The managing agency shall submit reports online through the Ministry of Finance's Reporting Information System. In case this system has not been operational, the managing agency shall submit paper reports (directly or via postal service) or electronic reports (via the Document and Management System/Email System at [email protected]).

For aid from local government revenues (for agencies that have not yet implemented the receipt and submission of electronic documents), reports shall be submitted in paper form, either directly or via postal service.

Article 21. Reporting System of the Department of Finance and State Treasury.

1. The Department of Finance shall submit to the Ministry of Finance reports on the situation of receiving and using aid funds for six months and annually within the scope of local budgets.

a) The content of the report includes detailed figures according to each source of funds (official development assistance and non-official development assistance aid funds) including: Amount of aid received during the period, amount used during the period; amount recorded as revenue and expenditure in the local budget during the period.

b) The deadline for finalizing the data for reporting and the submission deadline:

For the first six months of the year from January 1 to June 30 each year, the latest submission deadline is August 10 each year; for the last six months of the year from July 1 to December 31, the latest submission deadline is February 15, and for the annual report from January 1 of the reporting year to January 31 of the following year, the latest submission deadline is March 10 of the following year.

c) Report form: Form 01 Appendix 2 attached to this Circular.

d) Method of submitting reports: The Department of Finance shall submit reports online through the Ministry of Finance's Information Reporting System. In cases where this system has not yet been put into operation, the Department of Finance shall submit reports in paper form (directly sent or sent via postal service) or electronic form (through the Document and Management System/Electronic Mail System at [email protected]).

2. The State Treasury shall submit to the Ministry of Finance monthly, semi-annual, and annual reports for aid funds under central government revenues or to the Department of Finance for aid funds under local government revenues as follows:

a) Name of the report: Report on the Situation of Recording Revenue and Expenditure of the State Budget.

b) Content of the report includes detailed figures on expenditure control and recording revenue and expenditure of the state budget for each program, project, and non-project including: Beginning balance on the account for receiving aid funds, value of aid funds received during the period, value of expenditure control during the period, value of recording revenue and expenditure of the state budget during the period.

c) Deadline for finalizing the data for reporting and the submission deadline:

Monthly report from the first day of the month to the last day of the month, the latest submission deadline is no later than the fifth day of the following month; Semi-annual report for the first six months of the year from January 1 to June 30, the latest submission deadline is no later than July 15 each year; Semi-annual report for the last six months of the year from July 1 to December 31, the latest submission deadline is no later than February 15 of the following year; Annual report from January 1 of the reporting year to January 31 of the following year, the latest submission deadline is no later than February 28 of the following year.

d) Report form: Form 02 Appendix 2 attached to this Circular.

e) Method of submitting reports:

For aid funds under central government revenues, the State Treasury shall submit reports online through the Ministry of Finance's Information Reporting System. In cases where this system has not yet been put into operation, the agency shall submit reports in paper form (directly sent or sent via postal service) or electronic form (through the Document and Management System/Electronic Mail System at [email protected]).

For aid funds under local government revenues, the local State Treasury (for agencies that have not yet implemented the receipt and sending of electronic documents) shall submit reports in paper form, directly sent or sent via postal service.

Article 22. Reporting regime on foreign aid funds from state budget revenue through bank accounts

Monthly, before the fifth day of the following month, the commercial bank where the project owner has opened an account to receive aid shall prepare a report on the transaction situation of state budget receipts and expenditures through the aid-receiving account for that month, and submit it to the Ministry of Finance (Debt Management and External Financial Department) for aid items under central government expenditure responsibilities, and to the Provincial Department of Finance for aid items under provincial government expenditure responsibilities.

1. Report name: Monthly report on the transaction situation of state budget receipts and expenditures through the aid-receiving account.

2. Content of the report: opening balance of aid capital, increase during the period, decrease during the period, closing balance, detailed by each aid-receiving account; in the original currency received and converted to USD and equivalent Vietnamese dong according to the purchase rate of the original currency of the commercial bank at the end of the reporting period.

3. Data cut-off date for the report and submission deadline: The monthly report covers the period from the first day of the month to the last day of the month, and must be submitted no later than the fifth day of the following month.

4. Report format: Appendix 3 attached to this Circular.

5. Method of submitting the report: The report shall be sent via official communication and electronic data file.

6. For commercial banks that fail to fulfill their responsibility to report information on state budget receipts and expenditures as stipulated in this Circular and relevant laws, and do not rectify within thirty days from the date of notification by the Ministry of Finance for aid items under central government expenditure responsibilities or by the Provincial Department of Finance for aid items under provincial government expenditure responsibilities, they will not meet the conditions to serve as a bank for projects using aid funds.

Chapter III. IMPLEMENTING PROVISIONS

Article 23. Implementation Provisions

1. This Circular takes effect from May 20, 2022, and replaces Circular No. 225/2010/TT-BTC dated December 21, 2010, issued by the Ministry of Finance guiding the financial management regime for foreign aid from state budget revenue.

2. Repeal Circular No. 109/2007/TT-BTC dated September 10, 2007, issued by the Ministry of Finance guiding the financial management regime for non-governmental foreign aid not from state budget revenue.

3. In cases where the legal normative documents referred to for application in this Circular are amended, supplemented, or replaced, they shall be applied according to the amended, supplemented, or replacing documents.

Article 24. Transitional Provisions

1. For ODA grants approved before the effective date of Decree No. 114/2021/NĐ-CP of the Government on the management and use of official development assistance (ODA) and concessional loans from foreign donors (December 16, 2021), and non-ODA grants from foreign agencies, organizations, and individuals for Vietnam approved before the effective date of Decree No. 80/2020/NĐ-CP of the Government on the management and use of non-reimbursable foreign aid grants not falling under ODA from foreign agencies, organizations, and individuals for Vietnam (September 17, 2020), continue to implement according to Circular No. 225/2010/TT-BTC dated December 31, 2010 until the end of the grant as stated in the approval decision of the competent authority. In case of extension of the implementation period of the grant, financial management shall be carried out in accordance with current laws at the time of adjustment of the program/project.

2. During implementation, if there are any difficulties, based on feedback from agencies, the Ministry of Finance will study and amend or supplement accordingly.

ANNEX 1

(Issued together with Circular No. 23/2022/TT-BTC dated April 6, 2022, issued by the Minister of Finance)

NAME OF THE ADMINISTRATIVE AUTHORITY

REPORT ON THE RECEIPT AND USE OF FOREIGN AID FUNDS

Reporting period: month, six months, year

NAME OF THE ADMINISTRATIVE AUTHORITY

REPORT ON THE RECEIPT AND USE OF FOREIGN AID IN GOODS AND SERVICES

Reporting period: month, six months, year

NAME OF THE ADMINISTRATIVE AUTHORITY

REPORT ON THE ACCOUNTING RECORDS OF RECEIPTS AND EXPENDITURES OF FOREIGN AID FUNDS

Reporting period: month, six months, year

ANNEX 2

(Issued together with Circular No. 23/2022/TT-BTC dated April 6, 2022, issued by the Minister of Finance)

REPORT ON THE RECEIPT AND USE OF FOREIGN AID FUNDS

Reporting period: six months, annually

STATE TREASURY

REPORT ON THE ACCOUNTING RECORDS OF STATE BUDGET RECEIPTS AND EXPENDITURES

Reporting period: monthly, six months, annually

ANNEX 3

(Issued together with Circular No. 23/2022/TT-BTC dated April 6, 2022, issued by the Minister of Finance)

NAME OF COMMERCIAL BANK

REPORT ON THE TRANSACTION SITUATION OF RECEIPTS AND EXPENDITURES THROUGH THE BANK ACCOUNT

Reporting period: monthly

Unit: dong