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

Regarding the guidance on the financial management regime for the capital turnover of social marketing activities for various types of condoms and contraceptive devices

the capital turnover of social marketing activities for various condoms and contraceptive devices

Based on the current State Budget Law and guiding documents;

Based on Decree No. 20/CP dated March 15, 1994 of the Government on the regulations for managing and using official development assistance (ODA) sources;

After reaching a consensus with the government coordinating agencies regarding ODA management, the Ministry of Health and the National Committee for Population and Family Planning, the Ministry of Finance hereby guides the state financial management mechanism for the capital turnover for social marketing activities for various types of condoms and contraceptive devices as follows:

I. GENERAL PROVISIONS:

1. All funds of state origin (state budget, foreign aid, loans...) used to turn over the social marketing activities for various types of condoms and contraceptive devices fall within the scope of this Circular's management.

2. Ministries, sectors, localities, state agencies, social organizations (hereinafter referred to as units) permitted by the state to implement social marketing activities for various types of condoms and contraceptive devices must establish a management department to conduct these activities and strictly comply with the current state financial management systems as well as the provisions of this Circular.

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

II. SPECIFIC PROVISIONS:

1. Preparation of revenue and expenditure budgets:

1.1. Each year, based on programs and projects already approved by the Government for signing agreements with funding organizations, units must prepare revenue and expenditure budgets for social marketing activities together with their unit's state budget revenue and expenditure budgets to be submitted to the Ministry of Finance and the Ministry of Planning and Investment for review and submission to the Prime Minister for approval.

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

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

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

2. Tendering and selection of agents:

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

2.1. Procurement of goods and services (repackaging, labeling, advertising...) domestically valued at more than 100 million VND shall be carried out in accordance with Decision No. 20 TC/KBNN dated January 17, 1996 of the Ministry of Finance.

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

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

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

3. Procedures for receiving aid:

3.1. For goods or cash provided by governments or international organizations, units must follow the procedures for confirming aid as stipulated in Circular No. 22 TC/VT dated March 20, 1995 and Circular No. 87 TC/VT dated October 27, 1994 of the Ministry of Finance, which provide guidance on financial management for foreign aid sources.

4. Pricing:

4.1. Wholesale and retail prices for each product type, commission rates, and other cost standards shall be determined by the Pricing Council of central ministries and sectors, or localities authorized by the state to carry out social marketing activities. Members of the Council include representatives from the Government Price Board, the Ministry of Finance, and other relevant agencies.

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

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

5. Purchasing and selling goods:

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

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

5.3. Monthly, distribution agents are responsible for settling and depositing the entire sales proceeds (the amount due after deducting reasonable and legitimate expenses) into the account opened at the Treasury as specified in the contract signed with the unit permitted by the state to carry out social marketing activities for contraceptive devices. After consolidation, units are responsible for depositing the entire amount into the state budget account opened at the Treasury.

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

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

6. Procedures for allocating revolving funds:

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

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

Certificates confirming the total amount of recovered proceeds remitted to the state budget from social marketing activities in the previous quarter.

A detailed budget proposal for expenditures expected to occur in the next quarter requesting fund allocation.

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

7. Accounting and settlement systems:

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

7.2. Each unit must prepare a final account statement annually for each source of funds (state budget capital, aid from each organization, etc.) of its marketing activities and submit it for approval by the competent authority. These statements must then be sent 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 account report to be submitted 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 reporting form shall uniformly use Form F02-2H (attached).

III. IMPLEMENTATION:

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

2. The Ministry of Finance and related agencies are responsible for periodically or randomly inspecting 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:...

Belongs to Program:...

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

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

Implementing Agency:...

Explanation

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

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

Quantity of Completed Products:...

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

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

Prepared by Accounting Supervisor Head of Unit

(Signature, Full Name) (Signature, Full Name) (Signature, Stamp)

SCHEME NUMBER: 37

ACCOUNTING FOR THE RECEIPT AND USE OF PROJECT FUNDS

(IN CASE OF REFUND REQUIRED)