Circular No. 27-TC/VT guides the financial management regime of the State for the capital turnover of social marketing activities of various types of condoms and contraceptive devices.

CIRCULAR

OF THE MINISTRY OF FINANCE NO. 27 TC/VT ON MAY 23, 1997 GUIDING THE MANAGEMENT REGIME OF STATE FINANCES FOR THE RECYCLING OF FUNDS IN SOCIAL MARKETING ACTIVITIES OF CONDOMS AND CONTRACEPTIVE DEVICES
CONDOMS AND CONTRACEPTIVE DEVICES

- BASED ON THE CURRENT STATE BUDGET LAW and guiding documents;

- BASED ON DECREE NO. 20/CP OF MARCH 15, 1994 OF THE GOVERNMENT ON THE REGULATIONS ON MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA);

- AFTER CONSULTATION WITH GOVERNMENT COORDINATING AGENCIES ON ODA MANAGEMENT, THE MINISTRY OF HEALTH AND THE NATIONAL POPULATION AND FAMILY PLANNING COUNCIL, THE MINISTRY OF FINANCE GUIDES THE MECHANISM FOR MANAGING STATE FINANCES FOR THE RECYCLING OF FUNDS IN SOCIAL MARKETING ACTIVITIES OF CONDOMS AND CONTRACEPTIVE DEVICES AS FOLLOWS:

I. GENERAL PROVISIONS:

1. ALL FUNDS FROM THE STATE BUDGET (STATE BUDGET, FOREIGN AID FUNDS, LOANS...) USED TO RECYCLE FUNDS FOR SOCIAL MARKETING ACTIVITIES OF CONDOMS AND CONTRACEPTIVE DEVICES ARE SUBJECT TO THE SCOPE OF MANAGEMENT UNDER THIS CIRCULAR.

2. GOVERNMENT MINISTRIES, SECTORS, LOCAL AUTHORITIES, STATE ORGANIZATIONS, AND SOCIAL ORGANIZATIONS (HEREINAFTER REFERRED TO AS UNITS) PERMITTED BY THE STATE TO IMPLEMENT SOCIAL MARKETING ACTIVITIES OF CONDOMS AND CONTRACEPTIVE DEVICES MUST ESTABLISH A MANAGEMENT UNIT TO CARRY OUT SUCH ACTIVITIES AND STRICTLY COMPLY WITH CURRENT STATE FINANCIAL MANAGEMENT REGIMES AS WELL AS THE PROVISIONS OF THIS CIRCULAR.

3. CONDOMS AND CONTRACEPTIVE DEVICES (HEREINAFTER REFERRED TO AS PRODUCTS) INTRODUCED INTO SOCIAL MARKETING MUST BE QUALITY-REGISTERED, DESIGNED, AND MODELED PRODUCTS ACCORDING TO REGULATIONS SPECIFICALLY FOR SOCIAL MARKETING AND APPROVED FOR CIRCULATION AND USE IN VIETNAM BY COMPETENT STATE AUTHORITIES.

II. SPECIFIC PROVISIONS:

1. PREPARATION OF BUDGET ESTIMATES FOR INCOME AND EXPENSES:

1.1. ANNUALLY, BASED ON THE PROGRAMS AND PROJECTS APPROVED BY THE GOVERNMENT FOR SIGNING WITH DONOR ORGANIZATIONS, UNITS MUST PREPARE BUDGET ESTIMATES FOR INCOME AND EXPENSES FOR SOCIAL MARKETING ACTIVITIES AND SUBMIT THEM ALONG WITH THEIR BUDGET ESTIMATES TO THE MINISTRY OF FINANCE AND THE MINISTRY OF PLANNING AND INVESTMENT FOR REVIEW AND SUBMISSION TO THE PRIME MINISTER FOR APPROVAL.

1.2. THE BUDGET ESTIMATES MUST CLEARLY STATE THE FOLLOWING CONTENTS:

1.2.1. PLAN FOR RECEIVING FUNDS AND GOODS FROM EACH SOURCE (VALUE AND QUANTITY OF EACH TYPE).

1.2.2. PLAN FOR SELLING GOODS, COLLECTING FUNDS, AND PURCHASING GOODS FOR RECYCLING.

2. PROCUREMENT AND SELECTION OF DISTRIBUTORS:

PUBLIC PROCUREMENT AND SELECTION OF DISTRIBUTORS MUST BE CONDUCTED IN ACCORDANCE WITH THE FOLLOWING ACTIVITIES:

2.1. PROCUREMENT OF DOMESTIC GOODS AND SERVICES (PACKAGING, LABELING, ADVERTISING...) WORTH OVER 100 MILLION VND SHALL BE CONDUCTED IN ACCORDANCE WITH DECISION NO. 20 TC/KBNN OF JANUARY 17, 1996 OF THE MINISTRY OF FINANCE.

2.2. SELECTION OF DISTRIBUTION SYSTEMS. ENTITIES FROM ALL ECONOMIC SECTORS WITH LICENSES TO OPERATE HEALTH AND FAMILY PLANNING PRODUCTS CAN BE SELECTED AS DISTRIBUTORS.

2.3. SELECTION OF ENTERPRISES TO HANDLE IMPORTS FOR PRODUCTS TO BE PURCHASED FROM ABROAD. ENTERPRISES WITH FUNCTIONALITIES IN HEALTHCARE EXPORTS AND IMPORTS CAN BE SELECTED TO PURCHASE PRODUCTS FOR RECYCLING.

2.4. INTERNATIONAL PROCUREMENT OF GOODS FROM ABROAD MUST BE CONDUCTED THROUGH INTERNATIONAL TENDERING IN ACCORDANCE WITH COMMITMENTS WITH FINANCIAL SPONSORS.

3. PROCEDURE FOR RECEIVING FOREIGN AID:

3.1. FOR GOODS OR CASH PROVIDED BY FOREIGN GOVERNMENTS OR INTERNATIONAL ORGANIZATIONS, UNITS MUST COMPLETE THE FOREIGN AID CONFIRMATION PROCEDURES AS SET OUT IN CIRCULAR NO. 22 TC/VT OF MARCH 20, 1995 AND CIRCULAR NO. 87 TC/VT OF OCTOBER 27, 1994 OF THE MINISTRY OF FINANCE ON THE MANAGEMENT REGIME FOR FOREIGN AID FUNDS.

4. PRICING:

4.1. THE WHOLESALE AND RETAIL PRICES FOR EACH PRODUCT, COMMISSION RATES, AND OTHER COST LIMITS SHALL BE DETERMINED BY THE PRICING BOARD OF THE CENTRAL MINISTRIES, SECTORS, OR LOCAL AUTHORITIES PERMITTED BY THE STATE TO IMPLEMENT SOCIAL MARKETING. THE BOARD INCLUDES PARTICIPANTS FROM THE GOVERNMENT'S PRICE BOARD, THE MINISTRY OF FINANCE, AND OTHER RELATED AUTHORITIES.

4.2. FOR IMPORTED GOODS FROM FOREIGN AID, THE PRINCIPAL AUTHORITY MUST ORGANIZE AN INVENTORY AND DETERMINE THE PRICES ACCORDING TO THE PRINCIPLES STATED IN POINT 4.1.

4.3. THE RETAIL PRICES DECIDED BY THE PRICING BOARD MUST BE CLEARLY PRINTED ON THE PACKAGING OF THE PRODUCTS BEFORE THEY ARE INTRODUCED INTO SOCIAL MARKETING.

5. PURCHASE AND SALE OF GOODS:

5.1. UNITS MUST ORGANIZE SALES THROUGH THE DISTRIBUTOR SYSTEM SELECTED IN ACCORDANCE WITH POINT 2.2.

5.2. UNITS PERMITTED BY THE STATE TO IMPLEMENT SOCIAL MARKETING OPEN A SEPARATE ACCOUNT AT THE TREASURY TO RECEIVE FUNDS FROM SALES AND PAY INTO THE STATE BUDGET.

5.3. MONTHLY, DISTRIBUTORS HAVE THE RESPONSIBILITY TO PAY AND DEPOSIT THE TOTAL AMOUNT OF FUNDS FROM SALES (THE AMOUNT TO BE PAID AFTER DEDUCTING REASONABLE AND LEGITIMATE EXPENSES) INTO THE ACCOUNT OPENED AT THE TREASURY AS STATED IN THE CONTRACT SIGNED WITH THE STATE-PERMITTED UNITS. AFTER AGGREGATION, UNITS HAVE THE RESPONSIBILITY TO DEPOSIT THE TOTAL AMOUNT INTO THE STATE BUDGET ACCOUNT AT THE TREASURY.

5.4. THE PURCHASE OF GOODS FROM ABROAD FOR CONTINUOUS RECYCLING MUST BE CONDUCTED THROUGH A CONTRACT FOR IMPORT COMMISSION WITH HEALTHCARE COMPANIES WITH EXPORT AND IMPORT FUNCTIONS SELECTED IN ACCORDANCE WITH POINT 2.4.

5.5. ANY REEXPORTATION OF CONDOMS AND CONTRACEPTIVE DEVICES FROM SOCIAL MARKETING PROGRAMS IS STRICTLY PROHIBITED.

6. PROCEDURE FOR ISSUING FUNDS FOR RECYCLING:

6.1. BASED ON THE SALES PLAN, FUNDS COLLECTION, AND PURCHASE PLAN FOR RECYCLING (STATED IN POINT 1.2) OF UNITS IMPLEMENTING SOCIAL MARKETING THAT HAVE BEEN APPROVED BY SUPERVISORY AUTHORITIES AND FUNCTIONAL AUTHORITIES, THE MINISTRY OF FINANCE WILL ISSUE FUNDS FROM THE STATE BUDGET TO CONTINUE SOCIAL MARKETING ACTIVITIES.

6.2. TO RECEIVE FUNDS PROMPTLY, AT THE END OF EACH QUARTER, UNITS IMPLEMENTING SOCIAL MARKETING MUST SUBMIT THE FOLLOWING DOCUMENTS TO THE MINISTRY OF FINANCE (DEPARTMENT OF INTERNAL CONTROL):

- CERTIFICATES CONFIRMING THE TOTAL FUNDS COLLECTED AND DEPOSITED INTO THE STATE BUDGET FROM SOCIAL MARKETING ACTIVITIES IN THE PREVIOUS QUARTER.

- A DETAILED BUDGET ESTIMATE OF THE EXPENSES TO BE INCURRED IN THE NEXT QUARTER REQUESTING FUNDS.

6.3. THE PROCEDURE FOR ISSUING FUNDS SHALL BE CONDUCTED IN ACCORDANCE WITH THE CURRENT REGIME FOR ISSUING FUNDS FROM THE STATE BUDGET.

7. ACCOUNTING AND FINALIZATION REGIMES:

7.1. Units implementing social marketing must organize accounting for their marketing activities in accordance with the provisions set forth in Decision No. 999 TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance. The accounting scheme shall be applied according to Model 37 attached to this circular.

7.2. Each year, units must prepare final accounts for each source of capital (state budget funds, aid from specific organizations, etc.) of their marketing activities, which must be approved by the competent authority and submitted to the Ministry of Finance (Department of Administrative Affairs and the Aid Management Board) for verification of the final account data and compilation of the state budget final accounts to be reported to the Government in accordance with guiding documents implementing Decree No. 87/CP of the Government detailing the delegation, management, preparation, and execution of state budget final accounts. The report format shall uniformly use Model F02-2H (attached).

III. IMPLEMENTATION:

1. Managing agencies have the responsibility to inspect and supervise sales in accordance with retail prices determined by the Pricing Council and recorded on product packaging.

2. The Ministry of Finance and related agencies have the responsibility to periodically or randomly inspect the use of revolving funds for social marketing activities. In cases where improper use of funds is discovered, the Ministry of Finance will suspend the allocation of funds and notify the competent authority to handle the situation.

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

(F02-2H)

DETAIL

ACTUAL EXPENDITURE FOR PROJECT PROPOSED FOR FINAL ACCOUNTING

Project Name:... Code Number:...

Belongs to Program:...

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

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

Implementing Agency:...

Explanation

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

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

Quantity of Completed Products:...

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

Prepared by               Accounting supervisor                    Head of the unit

  (Signature, full name)                      (Signature, full name)                        (Signature, stamp)

SCHEMA NUMBER: 37

ACCOUNTING FOR THE RECEIPT AND USE OF PROJECT FUNDS