Decision No. 27/2000/QĐ-BNNPTNT/TCKT on the issuance of Financial Management Regulations for the Cat Tien National Park Conservation Project funded by the Dutch Government's grant aid.

 

Pursuant to …;

Regarding the issuance of Financial Management Regulations

for the Cat Tien National Park Conservation Project

funded by the Government of the Kingdom of the Netherlands on a grant basis

THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT

Pursuant to Decree No. 73/CP dated November 1, 1995 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 460/TTg dated June 30, 1997 of the Prime Minister approving the Cat Tien National Park Conservation Project;

Pursuant to Decision No. 38-1998/QĐ-TTg dated February 16, 1998 of the Prime Minister transferring the management of Cat Tien National Park from the People's Committees of Dong Nai, Lam Dong, and Binh Phuoc Provinces to the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 3273/QĐ-BNN-TCCB dated December 3, 1998 of the Minister of Agriculture and Rural Development establishing the Project Management Board for the Cat Tien National Park Conservation Project;

Based on relevant documents concerning the Cat Tien National Park Conservation Project.

At the proposal of the Director of the Department of Finance and Accounting and the Director of the Department of International Cooperation of the Ministry of Agriculture and Rural Development.

Pursuant to …;

Article 1. Issued along with this Decision are the Financial Management Regulations for the "Cat Tien National Park Conservation Project" funded by the Government of the Kingdom of the Netherlands on a grant basis.

Article 2This Decision shall take effect fifteen days after the date of signature.

Article 2The Head of the Ministry’s Office, the Directors of the Departments of Finance and Accounting and International Cooperation, the Project Management Board, and the Directors of related Bureaus and Divisions, the Director of Cat Tien National Park, and the Project Management Board for the Cat Tien National Park Conservation Project shall be responsible for implementing this Decision.

 

REGULATION

Financial management of the Cat Tien National Park Conservation Project

funded by the Government of the Kingdom of the Netherlands on a grant basis
(Issued together with Decision No. 27/2000/QĐ-BNN-TCKT dated March 21, 2000 of the Minister of Agriculture and Rural Development

PART I

GENERAL PROVISIONS

Article 1. Basis for developing and implementing financial management regulations for the project:

1. Decision No. 460/TTg dated June 30, 1997 of the Prime Minister approving the Cat Tien National Park Conservation Project.

2. Decision No. 38-1998/QĐ-TTg dated February 16, 1998 of the Prime Minister transferring the management of Cat Tien National Park from the People's Committees of Dong Nai, Lam Dong, and Binh Phuoc Provinces to the Ministry of Agriculture and Rural Development.

3. Memorandum of Understanding between the Minister of Development Cooperation of the Kingdom of the Netherlands and the World Wide Fund for Nature (Indochina Program) dated October 5, 1995.

4. Financial management system of the World Wide Fund for Nature.

5. Decision No. 3273/QĐ-BNN-TCCB dated December 3, 1998 of the Minister of Agriculture and Rural Development establishing the Project Management Board for the Cat Tien National Park Conservation Project.

6. Circular No. 22/1999/TT-BTC dated February 26, 1999 of the Ministry of Finance guiding the financial management system for state funds from non-repayable aid.

7. Minutes of the Project Management Board meeting held on October 29, 1999 at the WWF Hanoi office.

8. Report dated December 15, 1999 from the Chief Advisor and Project Director regarding budget adjustments based on the recommendations of the mid-term evaluation team.

9. Other relevant legal documents.

Article 2. The objective of the Cat Tien National Park Conservation Project is to develop populations of endangered flora and fauna species, conserve the tropical rainforest with high biodiversity in Cat Tien National Park, which has a total area of 73,878 hectares located in the territories of three provinces: Dong Nai, Lam Dong, and Binh Phuoc.

The project is managed and supervised by the International Union for Conservation of Nature's Indochina Program (WWF) in collaboration with the Ministry of Agriculture and Rural Development.

The total budget for the project implementation over five years (from May 1998 to April 2003) is 6,937,696 USD, including non-repayable aid from the Government of the Kingdom of the Netherlands amounting to 6,297,109 USD and the counterpart funding from the Government of Vietnam totaling 640,587 USD.

The Project Director and the Project Accountant are responsible for managing and using the project funds according to the objectives, plans, and regulations as follows:

1. The non-repayable aid from the Government of the Kingdom of the Netherlands shall be expended at the WWF offices in Hanoi and Ho Chi Minh City, at CARE (the implementing organization under the contract), and at the Cat Tien National Park Management Board Office. The Cat Tien National Park Management Board is only responsible for managing and utilizing the funds generated within Cat Tien National Park.

The non-repayable aid from the Government of the Kingdom of the Netherlands for the project will be transferred into a separate account named after the project and managed by the International Union for Conservation of Nature. WWF is responsible for settling expenses incurred through contracts with CARE, foreign experts, the project chief advisor, and other expenses agreed upon between the Dutch Government and WWF.

Based on the progress of the plan implementation and payment conditions at the Cat Tien National Park Management Board Office, WWF will transfer funds into the project account in Ho Chi Minh City and Dong Nai Province.

The non-repayable aid directly managed by the Cat Tien National Park Management Board is considered a source of revenue, managed and recorded according to the State Budget Law and specific provisions in Circular No. 22/1999/TT-BTC dated February 26, 1999, issued by the Ministry of Finance guiding the financial management system for non-repayable aid.

2. In addition to the above-mentioned aid from the Government of the Kingdom of the Netherlands, the project finance also includes the contribution of the Government of Vietnam, reflected in the counterpart funding provided annually from the central state budget to the Ministry of Agriculture and Rural Development for allocation to Cat Tien National Park according to the project implementation schedule.

Article 3. The project must comply with current financial management systems and the financial cooperation fund management regime of the International Union for Conservation of Nature (WWF) within the framework of the Dutch Government's aid program.

The Director and Chief Accountant of Cat Tien National Park are responsible for directing the Project Management Board to strictly implement the commitments and agreements recorded in the project proposal and organizing the implementation in accordance with the specific provisions of this regulation.

The Financial Accounting Department of the Ministry of Agriculture and Rural Development is responsible for assisting the Minister in managing state finances, regularly directing, guiding, and inspecting the project's financial accounting work according to current regulations.

Chapter II

ESTABLISHING BUDGETS, OPENING ACCOUNTS, AND CONFIRMING AID

Article 4. Establishing the project budget:

The project budget includes the aid funding from the Government of the Netherlands and the counterpart funding from the Government of Vietnam, specifically detailed in the project proposal.

Any changes to the budget structure and detailed expenditure items can only be made based on an agreement between the Ministry of Agriculture and Rural Development, the Dutch Embassy, and the International Union for Conservation of Nature (WWF).

Annually, the project must establish a budget for income and expenditure according to the prescribed content and format and submit it within the specified time frame to WWF and the Ministry of Agriculture and Rural Development (Financial Accounting Department, Planning and Planning Department, International Cooperation Department).

The annual project budget is established based on the project activity plan approved by WWF (for aid sources) and the Ministry of Agriculture and Rural Development, and the actual capacity to implement the project in that year.

1. Non-repayable aid from the Government of the Kingdom of the Netherlands:

The Government of the Netherlands provides 6,297,109 USD over a period of five years for specific objectives as follows:

Section 1b - Employee Salaries: Includes salaries paid to the head of the Social and Economic Department, researchers, extension workers, village cadres, technicians, interpreters, coordinators in Ho Chi Minh City, janitors, supervisors from the Ministry of Agriculture and Rural Development, allowances, and other bonuses.

Section 2 - Technical Assistance Costs:

Salaries and costs for the project chief advisor, technical project advisors, WWF supervisors, and other technical experts.

Section 3 - Equipment:

Cars, motorcycles, boats.

Computers, photocopiers.

Communication devices.

Office equipment.

Technical equipment for field use.

Section 4 - Infrastructure Construction:

Construction of the project office.

Visitor center.

Guard station.

Guest house.

Expert house.

Construction and maintenance of roads, road upgrading.

Boundaries, markers, signboards, information boards, watchtowers, hydroelectric dams, pumping stations, and reforestation.

Section 5 - Operational Costs:

Maintenance and repair costs for motorcycles and equipment.

Books, telephones, correspondence.

Materials for the extension program.

Costs for field-based project activities.

Project activity costs at the WWF Hanoi office and the project office in Ho Chi Minh City shall be carried out based on agreements between the Ministry of Agriculture and Rural Development, the Dutch Embassy, and WWF.

Section 6 - Socio-Economic and Survey Activities:

Costs for wetland research.

Biodiversity surveys.

Agricultural cropping system surveys.

Health education.

Farmer support.

Support for settlement, health, and education.

Extension program.

Initial support for village-level activities.

Section 7 - Training and Extension Costs:

Forest ranger training costs.

Field visits, training.

Community development.

Farmer household visits.

Tour guide training.

In-country training.

Project management training.

Section 8 - Monitoring and Evaluation Costs:

Costs for meetings with participating agencies and units.

Regular meetings of the steering committee and project management board.

Costs for WWF's field project inspections.

Annual audit and final project evaluation costs.

Mid-term and final evaluation costs.

The cost standards for each detailed item are determined by WWF. Economic and technical investment standards for forest regeneration are implemented according to current regulations of the Ministry of Agriculture and Rural Development. For construction projects, the project must comply with current state investment and bidding regulations.

2.- Counterpart Funding of the Government of Vietnam:

During the five-year implementation period of the project, the Government of Vietnam commits to contributing $640,587 for the following purposes:

Section 1a - Salaries of Project Staff: Includes salaries and allowances for staff within the approved establishment list under current regulations.

Section 4 - Infrastructure Construction: Construction of the field training center, renovation of the main office, renovation of the auxiliary office, and construction of guard stations.

Section 5 - Operational Costs: Operating costs for machinery and equipment, cars, motorcycles, and boats.

The project budget is implemented according to current state regulations along with the budget plan of Cat Tien National Park.

Article 5. Opening a project account and transfer procedures:

1.- Opening an account and transferring foreign currency:

a) Foreign currency is transferred from WWF to the project's foreign currency account opened at the Vietcombank branch in Ho Chi Minh City on a monthly basis. To receive funds from WWF, the following conditions must be met:

- Quarterly financial plans must be established: Report on the previous quarter's expenditure and submit the next quarter's plan.

- Report on completed work volume and ensure payment conditions.

- All requests for transfers from WWF during the contract advisory period must be signed by the project chief advisor.

Signatures registered at the Vietcombank Ho Chi Minh City include: WWF representative director, Cat Tien National Park project director, and Chief Advisor. The project account operates under a joint signature principle.

b) At the local level: The Cat Tien National Park Nature Conservation Project registers to open an account at Vietcombank Dong Nai Province to receive funds from Vietcombank Ho Chi Minh City, directly paying in Vietnamese dong (VND) for expenses undertaken by Cat Tien National Park within the framework of the project's aid funding.

Signatures registered at Vietcombank Dong Nai Province include: The project director and chief advisor are joint account holders, and the park's chief accountant also serves as the project accountant.

Withdrawal of money from the bank deposit account to the cash fund for regular project activities is carried out according to current state and WWF regulations. Large contracts and payments cannot be made in cash but must be settled through the bank.

2.- Receiving Counterpart Funds:

The project's counterpart funds are allocated to the Cat Tien National Park account at the local State Treasury according to the Ministry of Agriculture and Rural Development's limits and managed and used according to current regulations.

Article 6. Confirmation of Aid:

Implemented according to Circular No. 22/1999/TT-BTC dated February 26, 1999, issued by the Ministry of Finance guiding the state financial management system for non-reimbursable aid sources.

Confirmation certificates for aid money and goods are prepared according to forms No. 1 and No. 2. The project director signs the declaration form confirming the aid.

Chapter III

PROCUREMENT OF ASSETS, BASIC CONSTRUCTION INVESTMENT,

MANAGEMENT OF FIXED ASSETS:

Article 7. Procurement of materials and equipment:

1.- Procurement of materials and equipment for the project valued at $500 or more (for a single asset or a single purchase contract) must follow the procedure below:

- Ensure alignment with project objectives and annual project activity plans approved by the Ministry of Agriculture and Rural Development.

- Obtain price quotes from at least three suppliers for comparison and selection of the lowest bidder.

- Purchase orders must be jointly approved by the project director and chief advisor before execution.

- Adhere to economic contract regulations.

- Accounting for payment, inventory, and fixed asset valuation must follow current regulations.

2. For equipment, facilities, and work tools with a value of or exceeding 100 million VND, the Project Director and Chief Advisor must conduct public bidding in accordance with Decision No. 20-TC/KBNN dated January 17, 1996, issued by the Minister of Finance.

Article 8. Basic construction investment:

According to the project's budget plan, basic construction investment of the project includes items as specified in Section 4 Clause 1 and Section 4 Clause 2 of Article 4, Chapter II mentioned above.

Based on the construction plan and approved budget estimate that has been agreed upon by WWF, the Project Director is responsible for implementing the investment management regulations issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999, issued by the Government, and the bidding regulations issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999, issued by the Government.

Article 9. Fixed asset management:

Fixed assets purchased or constructed and completed according to standards must be organized for management, monitoring, and accurate reflection in terms of quantity, value, and condition throughout the implementation process. The project shall not transfer, exchange, or sell fixed assets during the implementation period.

Fixed assets of the project must be labeled with WWF stickers in accordance with the agreement between WWF and the Dutch Government.

As for transportation means (cars, motorcycles, boats), in addition to the provisions mentioned above, they must also be fully insured. The selection of insurance type, agency, and purchase of insurance shall be decided by the Project Director and Chief Advisor.

Chapter IV

ACCOUNTING, AUDITING, AND SETTLEMENT REGIME

Article 10. Accounting regime:

During the project implementation, the Project Director and Project Accountant are responsible for organizing accounting activities related to the project's operations at Cat Tien National Park in accordance with the State Budget Law, Statistics Accounting Ordinance, and the administrative and public service accounting system issued by Decision No. 999-TC-QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance.

Cat Tien National Park must organize separate project accounting. All vouchers, files, and accounting documents must be systematically organized and reflected in general and detailed accounting books in accordance with regulations. Original documents kept by the sponsor as per agreement must have copies retained by the project for tracking and recording in the accounting books. Transactions of assets, materials, and funds between the project and foreign partners must be documented through memorandums.

In addition to complying with reporting requirements from the International Union for Conservation of Nature, Cat Tien National Park must also implement regular financial reporting, annual settlement report audits in accordance with Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance regarding the System of Administrative and Public Service Accounting Systems, Circular No. 22/1999/TT-BTC dated February 26, 1999, guiding the state financial management system for non-reimbursable aid, and specific guidance documents from the Ministry of Agriculture and Rural Development.

Based on the project's operational content and the specific accounting regulations mentioned above, the project accountant selects appropriate accounting vouchers and reasonable accounting forms such as "Journal - Ledger". If accounting is conducted on computers, monthly printouts must be made, bound into volumes, and comply with current ledger regulations.

During the project implementation period, the balance of aid funds in the project's bank account at the end of each fiscal year will be carried over to the next year for continued use.

- Based on the aforementioned accounting ledgers and other relevant accounting documents, the project accountant prepares periodic financial reports in accordance with WWF, government regulations, and specific guidance from the Ministry of Agriculture and Rural Development. Accompanying the quarterly, semi-annual, and annual financial reports, the project must provide the following documents:

- Inventory verification records for funds and materials.

- Bank deposit reconciliation statements, budget limit reconciliation statements.

- Detailed accounts receivable and payable statement.

For the annual settlement report, an additional fixed asset inventory report as of December 31 of the reporting year must be included.

The project accountant must continuously monitor from the start until the completion of the project. Additionally, project funding sources and expenditures must be reflected in the consolidated financial statements (settlement) of Cat Tien National Park in accordance with the aforementioned administrative and public service accounting system.

Article 11. Auditing:

Auditing is funded by grant assistance.

Auditing is conducted through an independent auditing company selected by WWF, primarily at the project office where original documents are stored. However, auditing can also be conducted on-site if requested directly by the sponsor.

The Chief Advisor, Project Director, and Project Accountant are responsible for coordinating with the auditing company to determine the audit time, content, and confirm the audit report after completion. Recommendations and proposals from the auditing agency must be strictly implemented before submitting financial reports to WWF and the Ministry of Agriculture and Rural Development.

Article 12. Final project settlement report and asset handover.

Annually and upon project completion, the Project Director and Project Accountant are responsible for preparing the final settlement report on budget revenues and expenditures for project activities at Cat Tien National Park in accordance with the content and format of the administrative and public service accounting system issued with Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance, and compiling comprehensive project financial reports based on data from the WWF office in Hanoi.

The Financial Accounting Department of the Ministry of Agriculture and Rural Development leads the annual project settlement review and the final project settlement review, presenting the Minister of Agriculture and Rural Development with a decision to approve the project settlement in accordance with current regulations.

After approving the final project settlement, the Ministry of Agriculture and Rural Development will immediately cooperate with WWF to hand over assets to Cat Tien National Park and managing units.

According to the agreement between the Dutch Government and WWF, all project assets of the Cat Tien National Park Conservation Project will be under WWF management throughout the project's operation period.

Chapter V

IMPLEMENTATION PROVISIONS

Article 13. These regulations are issued to serve as the basis for implementing the Cat Tien National Park Conservation Project and shall take effect fifteen days after the date of signature.

Activities under the project prior to the issuance of these regulations that do not contravene current laws shall be carried out according to the agreement between the Chief Advisor and the Project Director in accordance with specific guidance from the World Wildlife Fund (WWF) International.

During implementation, if there are any difficulties, Cat Tien National Park shall cooperate with WWF to report to the Ministry of Agriculture and Rural Development and the Dutch Embassy in Hanoi for research and appropriate amendments to align with the actual conditions of the project.