Joint Circular No. 26/2014/TTLT-BLDTBXH-BTC-BGDĐT guiding financial management regime and implementation of the Project "Strengthening the Social Assistance System in Vietnam" financed by the World Bank.

JOINT CIRCULAR

Guidelines on financial management and implementation of the project "Strengthening the Social Assistance System"Ttăng cường hệ thống trợ giúp xã hội Vstrict N |||được vay vốn N |||the cooperative Tgiớii

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Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 32/2008/NĐ-CP dated March 19, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Education and Training;

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 Decree No. 79/2010/NĐ-CP dated July 14, 2010 of the Government on public debt management operations;

Pursuant to Decree No. 38/2013/NĐ-CP dated April 23, 2013 of the Government on management and use of official development assistance (ODA) and preferential loans from donors;

Pursuant to the Grant Agreement No. 5354-VN signed on April 24, 2014 between the Government of the Socialist Republic of Vietnam and the International Development Association;

Pursuant to Decision No. 1617/QĐ-TTg dated September 18, 2013 of the Prime Minister approving the list of projects entitled "Strengthening the Social Assistance System in Vietnam" financed by the World Bank;

Pursuant to the opinion of Deputy Prime Minister Vu Duc Dam in Official Letter No. 2484/VPCP-HTQT dated April 11, 2014 of the Office of the Government proposing the signing of the Grant Agreement for the Project "Strengthening the Social Assistance System in Vietnam" financed by the World Bank (WB);

The Ministers of Labor - Invalids and Social Affairs, Finance, and Education and Training issue this joint circular to guide the financial management regime and implementation of the Project "Strengthening the Social Assistance System in Vietnam",

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular guides the financial management regime and organization of implementation for the Project "Strengthening the Social Assistance System in Vietnam".

Article 2. This Circular applies to the four participating provinces: Ha Giang, Quang Nam, Lam Dong, Tra Vinh (hereinafter referred to as the four beneficiary provinces) and agencies, organizations, and individuals assigned responsibilities or related to the management and utilization of official development assistance (ODA) funds from the International Development Association (IDA) under the World Bank (WB) and domestic counterpart funds for the Project "Strengthening the Social Assistance System in Vietnam" financed by the World Bank.

Point 1. The Project refers to the Project "Strengthening the Social Assistance System in Vietnam" approved by the Prime Minister in Decision No. 1617/QĐ-TTg dated September 18, 2013 on approving the list of projects "Strengthening the Social Assistance System in Vietnam" financed by the World Bank.

Clause 2. Components of the Project include:

Point a) Component 1: Strengthening the social assistance system and poverty reduction;

Point b) Component 2: Launching the integrated social assistance program, including:

- Sub-component 2.1: Implementing cash transfers to additional beneficiaries of the project;

- Sub-component 2.2: Paying postal service fees for the participating provinces.

Point c) Component 3: Project Management.

Point 3. The Steering Committee of the Project was established according to Decision No. 1893/QĐ-LĐTBXH dated December 5, 2013 of the Minister of Labor - Invalids and Social Affairs, with responsibilities and authorities as stipulated in the establishment decision.

Point 4. The Central Project Management Unit was established according to Decision No. 1567/QĐ-LĐTBXH dated October 11, 2013 of the Minister of Labor - Invalids and Social Affairs, with responsibilities and authorities as stipulated in the establishment decision.

Clause 5. The Provincial Steering Committee of the Project: established by the Chairman's Decision of the People's Committees of the provinces implementing the Project, with responsibilities and authorities stipulated in the establishment decision.

Clause 6. The Provincial Project Management Board: is the unit established by the Chairman's Decision of the People's Committees of the provinces implementing the Project, with responsibilities and authorities stipulated in the establishment decision.

Clause 7. The Project Service Bank: is the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

Clause 8. Additional Beneficiaries of the Project include:

Point a) Pregnant women in poor households;

Point b) Children aged 0 to under 3 years old in poor households;

Point c) Children aged 3 to 15 years old (understood as not yet 16 years old) in poor households who are currently not attending school.

Clause 9. The Integrated Social Assistance Package for Households Includes:

Point a) State budget funds:

- Regular social assistance for beneficiaries of social protection according to Decree No. 67/2007/ND-CP dated April 13, 2007 of the Government on policies for assisting social protection beneficiaries (Decree No. 67/2007/ND-CP) and Decree No. 13/2010/ND-CP dated February 27, 2010 of the Government amending and supplementing certain provisions of Decree No. 67/2007/ND-CP dated April 13, 2007 of the Government on policies for assisting social protection beneficiaries (Decree No. 13/2010/ND-CP);

- Electricity support for poor households according to Decision No. 28/2014/QĐ-TTg dated April 7, 2014 of the Prime Minister on the structure of retail electricity prices (Decision No. 28/2014/QĐ-TTg);

- Support for educational expenses for children currently attending school according to Decree No. 49/2010/ND-CP dated May 14, 2010 of the Government on exemption, reduction of tuition fees, support for educational expenses, and mechanisms for collecting and using tuition fees for educational institutions under the national education system from the academic year 2010-2011 to the academic year 2014-2015 (Decree No. 49/2010/ND-CP), and Decree No. 74/2013/ND-CP dated July 15, 2013 of the Government amending and supplementing certain provisions of Decree No. 49/2010/ND-CP dated May 14, 2010 of the Government on exemption, reduction of tuition fees, support for educational expenses, and mechanisms for collecting and using tuition fees for educational institutions under the national education system from the academic year 2010-2011 to the academic year 2014-2015 (Decree No. 74/2013/ND-CP);

- Food and accommodation support for high school students who are ethnic minorities, Han Chinese belonging to poor households in communes and villages with extremely difficult socio-economic conditions according to Decision No. 12/2013/QĐ-TTg dated January 24, 2013 of the Prime Minister on policies supporting high school students in areas with extremely difficult socio-economic conditions (Decision No. 12/2013/QĐ-TTg);

||| b) IDA loan capital (benefiting from the project):

||| - Support for prenatal healthcare for pregnant women from poor households: 70,000 VND/month (based on actual months of pregnancy and not exceeding 9 months per pregnancy);

||| - Children aged 0 to under 3 years old from poor households: 70,000 VND/month (12 months/year);

||| - Support for children aged 3 to 15 years old from poor households who are currently not attending school to encourage them to attend school: 70,000 VND/month/child (9 months/year);

The integrated social assistance package for households will be piloted in the four beneficiary provinces starting from July 1, 2015 until June 30, 2018.

||| Article 3. Project Investment Capital

||| The total capital of the Project is equivalent to 62.5 million USD, including:

||| 1. IDA loan capital (World Bank): 39.1 million SDR equivalent to 60 million USD (according to the exchange rate set by the donor at the time of negotiation), of which:

||| a) Loan capital provided through budget support: 16.29 million SDR equivalent to 25 million USD;

||| b) Loan capital provided through project support: 22.81 million SDR equivalent to 35 million USD.

||| 2. Domestic counterpart capital: 2.5 million USD equivalent to 52.59 billion VND.

||| Article 4. Domestic Financial Mechanism

||| 1. For IDA loan capital:

||| a) Loan capital provided through budget support: The central government budget supplements the local government budgets of participating provinces;

b) The loan portion under the project support method: The central budget allocates within the state budget estimate of the Ministry of Labor - Invalids and Social Affairs for activities carried out by the Central Project Management Unit.

||| 2. For domestic counterpart capital:

||| a) Counterpart capital allocated for activities of the Central Project Management Board is arranged within the budget estimate of the Ministry of Labor, Invalids and Social Affairs by the central government;

||| b) Counterpart capital allocated for activities of the Provincial Project Management Board is arranged within the budget estimate of the Provincial Project Management Board by the local government.

||| Article 5. Management Principles

Article 1. The Project "Strengthening the Social Assistance System in Vietnam" is a project funded by administrative and public service funds, managed according to the current regime for managing administrative and public service funds and other relevant policies.

||| 2. The IDA loan capital for the Project is a source of state budget capital, managed according to state budget capital management regulations and donor regulations.

||| 3. Budget accounting method:

||| a) For loan capital provided through budget support:

||| - Based on receipt vouchers or credit notifications from the State Bank Branch, the Treasury records state budget revenue;

||| - When units withdraw their budget estimates from the Treasury, the Treasury records state budget expenditure.

b) For the loan portion under the project support method: The Ministry of Finance shall record revenue in the state budget and allocate expenditure to the Ministry of Labor - Invalids and Social Affairs according to Circular No. 107/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance guiding additional points on managing and operating the state budget.

Article 6. Tasks of Relevant Authorities

1. Ministry of Labor, Invalids and Social Affairs:

a) Approve plans, budgets, final accounts for the year, and final accounts for completed projects as prescribed;

b) Allocate sufficient and timely counterpart funds to the Central Project Management Board.

2. Central Project Management Board:

a) Implement the withdrawal of loans and disbursement of funds for activities under Component 1, Sub-component 2.2, and Component 3; manage and disburse counterpart funds from the central budget allocated in the Ministry of Labor - Invalids and Social Affairs's budget estimate for project activities;

b) Prepare, compile activity plans and financial plans for the Project, report on the Project's operational status, and perform tasks as specified in the Regulation on the Organization and Operation of the Central Project Management Unit;

c) Provide information about beneficiaries of policies according to Decision No. 12/2013/QĐ-TTg, Decree No. 49/2010/ND-CP, and Decree No. 74/2013/ND-CP in the four beneficiary provinces to the Ministry of Education and Training (MOET) after the end of each academic year during the implementation period of the integrated social assistance package.

3. Ministry of Finance:

a) Carry out procedures to withdraw foreign loans and withdraw funds from the Special Account of the Project into the State Budget (for the budget support portion), ensuring that the funding for the beneficiaries of the Project is paid on time.

b) Record state budget expenditures for loans according to current regulations.

4. People's Committees of participating provinces:

a) Approve or direct specialized agencies of the province to review and approve plans, budgets, final accounts for the year, and final accounts for completed projects as prescribed;

b) Allocate sufficient and timely counterpart funds to the Provincial Project Management Board.

5. Provincial Project Management Board:

a) Manage the use of counterpart funds from the provincial budget to implement Component 3 of the project;

c) Provide information about the subjects benefiting from policies pursuant to Decision No. 12/2013/QĐ-TTg, Decree No. 49/2010/NĐ-CP, and Decree No. 74/2013/NĐ-CP to the Department of Education and Training after the end of each academic year during the implementation period of the consolidated social assistance package.

6. Department of Finance:

a) Based on the revenue and expenditure vouchers of the Ministry of Finance, record the loan funds supported by the central budget with specific objectives for the provincial budget to implement the Project at the provincial level; ensure that the funding for the beneficiaries is paid on time.

b) Review, consolidate, and submit to the People's Committee of the province for consideration and approval of annual final accounts and final accounts for completed projects for assigned funds to implement the project in the province.

7. The Department of Education and Training: establish, update, and transfer the list of students benefiting from the policy pursuant to Decision No. 12/2013/QĐ-TTg, approved starting from the 2015-2016 academic year, to the Provincial Project Management Board.

8. Vietnam Post Corporation: develop payment procedures, inspection processes, and periodic reports accepted by the Ministry of Labor, Invalids and Social Affairs to ensure correct payments to the intended recipients, in the correct amount, at the right time, and convenience for the beneficiaries.

10. Labor, Invalids and Social Affairs Office:

a) Develop an overall capital plan, annual state budget estimate for implementing the consolidated social assistance package for households as stipulated in Clause 1, Article 15 of this Circular within the district, and submit it to the Provincial Project Management Board.

11. National Treasury System: monitor budget withdrawals for project activities and record state budget expenditures according to current regulations.

12. Bank serving the Project:

a) Carry out IDA fund settlement procedures as required by the Central Project Management Board after the documents have been reviewed by the State Treasury; guide and provide the Project with all necessary information to conduct domestic and international transactions through the banking system.

b) Regularly send account statements and notify interest accruals, bank service fees, interest and fee differences, opening and closing balances to account holders monthly.

c) Within two working days from the date of receiving notification that funds have been credited to the account, notify the account holder.

d) During the course of implementation, enjoy banking service fees according to current regulations on collecting fees for bank payment services. These service fees are included in the total investment amount of the Project.

Chapter II

ESTABLISHING, ALLOCATING, MANAGING, USING AND SETTLING FUNDS

Article 7. Budget Preparation

1. Establish the budget estimate for the consolidated social assistance package implemented with state budget funds for households as stipulated in Clause 1, Article 15 of this Circular:

a) Annually, along with the preparation of the state budget (starting from 2014 when preparing the budget for the last six months of 2015), the Department of Labor, Invalids and Social Affairs will base on the number of beneficiaries taken from the database of the management information system (MIS), the support levels specified in Clause 1, Article 15 of this Circular, and the implementation period within the year; prepare the budget estimate for implementing the consolidated social assistance package in the district (clearly stating domestic and foreign funds) and consolidate it in the regular expenditure budget of the agency, send it to the District Financial Planning Department for review and consolidation to submit to the competent authority for approval in accordance with the State Budget Law and guiding documents; simultaneously send it to the Provincial Project Management Board for consolidation and submission to the Central Project Management Board.

b) Agencies and units currently assigned the budget to implement policies stipulated in Point a, Clause 1, Article 15 of this Circular, in 2014 will prepare the 2015 budget, only prepare the first half of 2015 budget to pay the policies according to current regulations. The budget for implementing these policies for the second half of 2015 and subsequent years until the program ends will be prepared by the Department of Labor, Invalids and Social Affairs according to Point a, Clause 1 of this Article.

2. Establish the plan for loan capital under the project support method to implement project activities:

Annually, along with the preparation of the state budget, the Central Project Management Board prepares the annual capital plan for activities implemented at the central level and sends it to the Ministry of Labor, Invalids and Social Affairs (Planning and Finance Department) for consolidation in the Ministry's budget, then sends it to the Ministry of Finance for submission to the competent authority for approval.

3. Establish the counterpart fund estimate:

Annually, along with the preparation of the state budget, the Provincial Project Management Board prepares the budget estimate for its own activities and submits it to the Department of Finance for consolidation and submission to the competent authority for approval. The Central Project Management Board prepares the budget estimate for its own activities and sends it to the Ministry of Labor, Invalids and Social Affairs (Planning and Finance Department) for consolidation in the Ministry's budget, then sends it to the Ministry of Finance for submission to the competent authority for approval.

Article 8. Allocation and Transfer of Budget Estimates

The allocation and transfer of budget estimates for implementation shall be carried out in accordance with the State Budget Law and guiding documents.

Article 9. Opening Accounts

1. For the portion of loan capital under the budget support method:

a) The Ministry of Finance will open a special account at the State Bank of Vietnam Branch to receive loan funds, then proceed with the procedure to sell foreign currency to the State Bank of Vietnam to transfer funds into the state budget to implement Sub-component 2.1 of the Project.

b) Departments of Labor, Invalids and Social Affairs participating in the Project shall open accounts at the State Treasury where transactions take place and withdraw budget estimates to implement activities of Sub-component 2.1 of the Project.

2. For the portion of loan capital under the project support method:

a) The Central Project Management Board opens a provisional account at the bank serving the Project to receive loan funds to implement activities under Components 1 and 3 of the Project. Interest generated on the provisional account is recorded separately and during the Project implementation period can only be used to pay bank service fees of the bank serving the Project. Before February 15th each year, the Central Project Management Board is responsible for reporting to the Ministry of Labor, Invalids and Social Affairs on the use of interest generated from the previous year's provisional account balance, and sending it to the Ministry of Finance in accordance with Circular No. 218/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance regarding financial management for programs and projects using official development assistance (ODA) and concessional loans from foreign donors (Circular No. 218/2013/TT-BTC).

b) Provincial Project Management Boards shall open transaction accounts at the Project Service Bank to receive provisional advances for implementing Project activities in their provinces from the Central Project Management Board.

3. The Central Project Management Board and provincial boards shall open accounts at the State Treasury where transactions take place and withdraw budget estimates to settle activity expenses of the Project Management Board.

4. Procedures for opening accounts at the Project Service Bank and State Treasuries at all levels must comply with current regulations.

Article 10. Exchange Rates for Payment and Accounting

1. The state budget exchange rate for the portion of funded capital under the budget support method in Sub-component 2.1 applies the buying rate of the State Bank Branch at the time of selling foreign currency.

2. The exchange rates for payment and accounting for expenditures from the Advance Account shall apply the buying rate of the Project Service Bank at the time of payment.

Article 11. Contents and Budget Limits of the Project

1. For the loan capital under the project support method:

a) The content and expenditure standards for IDA loan funds and counterpart funds applied to the Project shall be implemented in accordance with Circular No. 219/2009/TT-BTC dated November 19, 2009 of the Ministry of Finance on certain expenditure standards applicable to projects and programs using ODA funds (Circular No. 219/2009/TT-BTC); Circular No. 192/2011/TT-BTC dated November 19, 2011 amending and supplementing some articles of Circular No. 219/2009/TT-BTC and current regulations applicable to public institutions;

b) Payment of service fees to postal agencies: The maximum service fee payment rate is 3% of the total payment expenses for the beneficiaries specified in point c, Clause 1, Article 11 and Clause 1, Article 15 of this Circular. Based on agreements with the payment agency, Vietnam Post Corporation, the Ministry of Labor, Invalids and Social Affairs will specify the specific service fee rates for each province participating in the Project according to the number of beneficiaries, total payment expenses, and geographical conditions of each province;

c) Payment for social cooperators from village, commune, ward communities: 100,000 VND per person per month. The number of social cooperators from village, commune, ward communities shall be decided by the Director of the Department of Labor, Invalids and Social Affairs upon submission to the Chairman of the People's Committee at the district level. The total number of cooperators shall not exceed the total number of villages, communes, wards and each village, commune, ward may have only one cooperator. One cooperator may oversee up to two villages, communes, wards;

2. For the loan capital under the budget support method:

a) Support for healthcare for pregnant women in poor households:

- Support amount: 70,000 VND per month per person;

- The support period is based on the actual pregnancy period during the implementation of the Project, with a maximum of nine months per pregnancy. In cases where pregnancy was ongoing as of July 1, 2015, support will begin from July 1, 2015 until childbirth. If pregnancy continues until June 30, 2018 without childbirth, support will end on June 30, 2018 (the termination date of the consolidated social assistance package as stipulated in point b, Clause 9, Article 2 of this Circular);

b) Support for children aged 0 to under 3 years old in poor households:

- Support amount: 70,000 VND per month per child, duration of support is 12 months per year during the Project implementation period;

- The support period is based on the actual number of months, starting from July 1, 2015 until reaching three years of age. For children receiving support as of June 30, 2018 who have not yet reached three years of age, support will end on June 30, 2018;

c) Support for children aged 3 to 15 years old in poor households who are not attending school:

- Support amount: 70,000 VND per month per child;

- The support period is a maximum of nine months per year (from January to May and from September to December during the Project implementation period). The actual time period for benefit receipt starts from July 1, 2015 until under sixteen years of age. For children receiving support as of June 30, 2018 who have not yet reached sixteen years of age, support will end on June 30, 2018;

- If a child returns to school, continued support shall be provided in the form of educational expense support as stipulated in point a, Clause 1, Article 15 of this Circular.

d) The commencement date for receiving assistance for the aforementioned beneficiaries shall be from the date of registration application according to the form attached to this Circular.

Article 12. Expenditure Control

1. All expenditures of the Project shall be subject to advance expenditure control.

2. The controlling authority for expenditures: The State Treasury at the level where the Project Management Board has opened accounts shall implement the control over payment documents of the Project.

3. The procedures and documentation for expenditure control shall be carried out in accordance with current regulations.

Article 13. Procedures for Drawing Down Funds and Managing Drawdowns

1. For the loan capital under the project support method:

a) Procedures and processes for withdrawing ODA funds, managing withdrawals, and using ODA funds shall be carried out in accordance with Circular No. 218/2013/TT-BTC;

b) The management expenses for Project activities at the provincial level shall be paid based on advances from the Central Project Management Board.

2. For the loan capital under the budget support method:

a) Based on the annual plans of the provinces participating in the Project that have been approved regarding the amount of funding to implement supplementary support policies for beneficiaries of the Project and the report on the estimated implementation of the previous year's funding for the beneficiaries mentioned above, the Central Project Management Board sends a letter requesting the Ministry of Finance to withdraw World Bank loan funds once a year to pay the beneficiaries under Sub-component 2.1 of the Project;

b) The first advance shall be made before July 1, 2015 for the last six months of 2015. Subsequent advances shall be made once a year before November 30 of the preceding year;

c) The annual advance amount shall equal the approved budget estimate of the participating provinces;

d) The documents for each drawdown include:

- A letter requesting the drawdown of funds from the Central Project Management Board;

- A drawdown form according to the sponsor's model;

- The approved annual plan regarding the amount of funding to implement supplementary support policies for Project beneficiaries.

Article 14. Documentation and Procedures for Registering Participation in the Project by Social Assistance Package Beneficiaries

1. For supplementary Project beneficiaries:

- For pregnant women: A prenatal examination certificate or ultrasound report (indicating full name, date of birth, address of the pregnant woman; fetal age, expected delivery date), stamped and signed by an authorized medical facility. In cases of natural miscarriage or induced abortion, support will be provided based on the actual pregnancy period from the registration date until the miscarriage or abortion date confirmed by a medical facility;

- For children aged zero to under three years old: A copy of the child's birth certificate;

- For children aged three to fifteen years old: A copy of the child's birth certificate and a confirmation from the Commune People's Committee stating that the child is not attending school;

b) Approval Process:

- The beneficiary or family, guardian submits all required documents as stipulated in Clause 1 of this Article to the People's Committee of the commune;

- Within 10 days from receiving complete documents, the Chairman of the People's Committee of the commune shall send a letter to the Department of Labor, Invalids, and Social Affairs for review and resolution;

Within five working days from the date of receiving complete application dossiers from the commune, the Department of Labor, Invalids and Social Affairs is responsible for reviewing and submitting to the Chairman of the District People's Committee for approval of the beneficiaries of the policy as the basis for payment. The approval decision must clearly state the duration of benefits as prescribed in Clause 2, Article 11 of this Circular;

2. For other beneficiaries: For beneficiaries as stipulated in point a, Clause 1, Article 15 of this Circular, the identification of beneficiaries, application procedures, approval process, and subsidy levels shall be carried out in accordance with current regulations;

Article 15. Implementation of the consolidated social assistance package

1. The consolidated social assistance package for households includes:

a) Domestic budget:

- Monthly allowance for social welfare recipients as prescribed in Decree No. 67/2007/NĐ-CP; Decree No. 13/2010/NĐ-CP;

- Educational support for students as prescribed in Article 6 of Decree No. 49/2010/NĐ-CP and Clauses 9 and 10 of Article 1 of Decree No. 74/2013/NĐ-CP;

- Support for high school students in areas with particularly difficult socio-economic conditions as specified in Decision No. 12/2013/QĐ-TTg on eligibility for support policies:

+ Food allowance: equivalent to 40% of the national minimum wage/month;

+ Accommodation allowance: for students who must arrange their own accommodation, equivalent to 10% of the national minimum wage/month;

The duration of benefit shall not exceed nine months/school year/student.

- Electricity cost support for poor households as prescribed in Decision No. 28/2014/QĐ-TTg dated April 7, 2014 of the Prime Minister on the structure of retail electricity prices: monthly support equivalent to the electricity usage of 30 kWh at the current retail price for residential tier 1;

b) Loan capital under the budget support method: Payment of the support amounts specified in Points a, b, and c, Clause 2, Article 11 of this Circular.

a) Signing contracts for the payment of the consolidated social assistance package for households with postal agencies:

- The Department of Labor, Invalids and Social Affairs, authorized by the competent authority to allocate the state budget (domestic budget and foreign capital) to implement the policies stipulated in Clause 1, Article 15 of this Circular, shall enter into contracts with the Postal Service of the county for the distribution of the consolidated social assistance package to households and send two copies of the contract to the Provincial Project Management Board as the basis for paying the distribution fees to the Postal Service of the county.

- The Provincial Project Management Board shall enter into a contract with the Provincial Post for payment of service fees to beneficiaries and remuneration to village cooperators in accordance with point b, Clause 1, Article 11 of this Circular, accompanied by a list of village cooperators approved by the competent authority for the Provincial Post; in case of changes to the list of village cooperators, such changes must be notified in writing to the Provincial Post before the 25th day of each month.

b) Transfer of funds for payment:

- The Department of Labor, Invalids and Social Affairs shall base on the list of beneficiaries entitled to social assistance benefits under the consolidated social aid package for each household (including increases and decreases compared to the previous month), the amount of funds allocated for social assistance payments in the month (including back payments and funeral expenses for social welfare beneficiaries); implement the withdrawal of budget estimates from the State Treasury, issue a mandate to transfer funds to the County Post and prepare the list of recipients for the following month for the County Post before the 25th day of each month;

- The Central Project Management Board shall base on the request for advance payment of the Provincial Project Management Board for service fees paid to the Post and remuneration for village cooperators; carry out the necessary control procedures and transfer funds into the transaction account of the Provincial Post opened at the bank before the 20th day of each month;

- The Provincial Post shall transfer remuneration to village cooperators into the transaction accounts of County Posts opened at banks and provide the list of village cooperators to County Posts for payment purposes before the 25th day of each month.

c) Place and time of payment:

- Payment of the consolidated social assistance package for households from the 5th to the 18th of each month in the following forms:

+ Concentrate at the communal cultural post office, post branch or location arranged by the Post (for communes without a communal cultural post office or post branch);

+ At home for households where beneficiaries cannot go to the communal cultural post office, post branch or designated location due to old age, severe disability, or extremely severe disability without a proxy to collect benefits, confirmed by the Commune People's Committee;

- Remuneration for village cooperators shall be paid at the centralized location and time as for the consolidated social aid package payments;

d) Payment process:

- For the consolidated social assistance package for households:

+ Based on the monthly payment list provided by the Department of Labor, Invalids and Social Affairs, the County Post shall prepare the payment list for households at the nearest post office to their residence (convenient for households to collect money) and transfer the list of households to post offices and branches within the commune, town, or ward assigned to make payments;

+ Post offices and branches shall make payments and require the representative of the household or authorized person to sign and clearly write their name on the payment list; simultaneously, the payment officer of the Post shall confirm in the record book tracking benefit collection of the household. In cases where the recipient is unable to sign, a thumbprint may be used. If the household does not come to collect the benefit or if the officer makes a home visit but there is no one to receive it, the payment officer shall return the unspent funds to the County Post for transfer in the following month;

+ In case a household fails to collect money for two consecutive months, the Post payment officer shall cooperate with the Commune People's Committee to investigate the cause. If the beneficiary has died, gone missing, or moved away, the County Post shall notify the Commune People's Committee and the Department of Labor, Invalids and Social Affairs to process the termination of benefits or suspension of payments according to regulations;

- For remuneration for village cooperators: The County Post shall transfer the payment list to post offices responsible for making payments and require village cooperators to sign and clearly write their name on the payment list when receiving money;

d) Reporting and settlement:

- Monthly, the County Post shall compile and report the number of households and village cooperators who have received money, the amount of funds disbursed, and the list of households and village cooperators who have not yet collected their benefits to be transferred in the following month to the Department of Labor, Invalids and Social Affairs, the Provincial Project Management Board, and the Provincial Post before the 20th day of each month; simultaneously, send copies to the local People's Committee for monitoring and supervision;

- Quarterly, the County Post shall transfer settlement vouchers (signed lists) for funds disbursed to households and return any unspent funds (for the fourth quarter) to the Department of Labor, Invalids and Social Affairs as the basis for finalizing the state budget settlement; transfer settlement vouchers (signed lists) for funds disbursed to village cooperators and return any unspent funds (for the fourth quarter) to the Provincial Post for consolidation as the basis for settlement with the Provincial Project Management Board;

- Periodically quarterly and annually, the Provincial Project Management Board shall compile and report to the Central Project Management Board, the Department of Labor, Invalids and Social Affairs, the Department of Finance, the Department of Education and Training, and the Provincial People's Committee;

Article 16. Settlement

1. Settlement of state budget funds (domestic capital): carried out in accordance with the provisions of the State Budget Law and guiding documents.

2. Settlement of loan funds (foreign capital):

a) Annual settlement and project completion settlement shall be carried out in accordance with Circular No. 218/2013/TT-BTC;

b) The Provincial Project Management Board shall prepare the settlement report in accordance with current regulations for the portion spent locally, with confirmation from the State Treasury where the transaction was made, and submit it for approval by the competent authority at the local level, then forward it to the Central Project Management Board;

c) The Central Project Management Board shall prepare the settlement report in accordance with current regulations for the portion spent centrally, with confirmation from the State Treasury where the transaction was made, and consolidate the overall project settlement (Central Project Management Board and participating provinces) and submit it for approval by the Ministry of Labor, Invalids and Social Affairs;

Article 17. Accounting, Audit, Reporting, and Inspection System

Accounting, auditing, reporting, and inspection procedures shall be implemented in accordance with the State Budget Law and guiding documents; Government Decree No. 38/2013/NĐ-CP dated April 23, 2013 on management and use of official development assistance (ODA) and preferential loan funds from donors; and Circular No. 218/2013/TT-BTC.

Chapter III

ORGANIZATION AND IMPLEMENTATION

Article 18. Implementation Organization

1. Ministry of Labor, Invalids and Social Affairs: direct the implementation of the Project at the central level, coordinate with relevant agencies and People's Committees of provinces participating in the Project to direct the implementation of the Project in those provinces in accordance with the approved contents of the Project, consistent with the conditions committed in the Financing Agreement and current regulations of Vietnam.

2. The Project Steering Committee: directs, coordinates, and supervises the implementation of the project.

3. The Ministry of Education and Training: Directs the Departments of Education and Training of the four beneficiary provinces to implement the provisions of this Circular.

4. The People's Committees of the provinces:

a) Direct the implementation of the Project at the provincial level, coordinate with relevant agencies and the Ministry of Labor, Invalids and Social Affairs to direct and manage specialized agencies to implement the Project within their respective provinces in accordance with the approved contents of the Project, consistent with the conditions committed in the Financing Agreement and current regulations of Vietnam;

b) Approve the list of students eligible for support policies as stipulated in Decision No. 12/2013/QD-TTg.

5. The Provincial Project Steering Committee: directs, coordinates, and supervises the implementation of the project in the province.

6. The People's Committees of the districts:

a) Direct the District Departments of Labor, Invalids and Social Affairs, Education and Training, Finance and Planning, and the National Treasury to coordinate in implementing the project within the district;

b) Approve the beneficiaries of support policies and village cooperators in accordance with this Circular.

7. The District Departments of Labor, Invalids and Social Affairs:

a) Compile the list of beneficiaries of support policies and village cooperators for approval by the Chairman of the People's Committee of the district;

b) Update the data on beneficiaries of support policies and village cooperators into the MIS database.

8. The People's Committees of the communes: establish and monitor and manage the beneficiaries of support policies and village cooperators in accordance with this Circular.

Article 19. Effective Date

1. This Circular takes effect from November 6, 2014.

2. The preparation of budgets, allocation, execution, settlement, and methods of disbursing the integrated social assistance package to households shall be carried out in accordance with this Circular.

3. During the implementation of the Project, the four provinces benefiting from the Project as specified in Clause 2, Article 1 of this Circular shall not apply the provisions of Clause 4, Article 5 and Clause 2, Article 6 of Circular No. 27/2013/TTLT-BGDĐT-BTC dated July 16, 2013 issued by the Ministry of Education and Training and the Ministry of Finance guiding the implementation of Decision No. 12/2013/QD-TTg dated January 21, 2013 of the Prime Minister on policies supporting high school students in areas with particularly difficult socio-economic conditions; Article 10 and related contents on supporting educational expenses in Articles 11 and 12 of Circular No. 20/2014/TTLT-BGDĐT-BTC-BLĐTBXH dated May 30, 2014 issued by the Ministry of Education and Training, the Ministry of Finance, and the Ministry of Labor, Invalids and Social Affairs guiding the implementation of Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government on exemption, reduction of tuition fees, support for educational expenses, and mechanisms for collecting and using tuition fees for national education systems from the academic year 2010-2011 to 2014-2015 and Decree No. 74/2013/NĐ-CP dated July 15, 2013 of the Government amending and supplementing certain articles of Decree No. 49/2010/NĐ-CP.

4. In case the referenced documents in this Joint Circular are replaced or amended, they shall be implemented according to the replacing or amending documents.

5. During the process of implementation, if there are any difficulties, the relevant agencies and units are requested to promptly reflect them to the Ministry of Labor, Invalids and Social Affairs for coordination with the Ministry of Finance and the Ministry of Education and Training to study and resolve them./.