Circular No. 330/2016/TT-BTC guiding the preparation of budget estimates, disbursement, payment, and settlement of funds for supporting the protection of natural forest areas that logging companies must temporarily halt according to Decision No. 2242/QĐ-TTg dated December 11, 2014 of the Prime Minister.

CIRCULAR

Guidelines for preparing budgets, allocating, settling accounts, and finalizing expenditures to support the protection of natural forest areas of forestry companies that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg dated December 11, 2014 of the Prime Minister

Implementing Decision No. 2242/QĐ-TTg dated December 11, 2014 of the Prime Minister approving the Project to Strengthen Management of Natural Forest Wood Harvesting from 2014 to 2020;

The Minister of Finance issues this Circular guiding the preparation of budgets, allocation, settlement of accounts, and finalization of expenditures to support the protection of natural forest areas of forestry companies that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg dated December 11, 2014 of the Prime Minister approving the Project to Strengthen Management of Natural Forest Wood Harvesting from 2014 to 2020.

This Circular guides the preparation of budgets, allocation, settlement of accounts, and finalization of expenditures to support the protection of natural forest areas of forestry companies that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg dated December 11, 2014 of the Prime Minister approving the Project to Strengthen Management of Natural Forest Wood Harvesting from 2014 to 2020.

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

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

1. Forestry companies with natural forest areas that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg.

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

2. Agencies, organizations, and individuals related to the cessation of harvesting natural forest wood pursuant to Decision No. 2242/QĐ-TTg.

Article 1. Scope of Regulation

Article 3. Support Policy 1. The central budget will provide financial support to protect the natural forest areas of forestry companies that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg at a rate of VND 200,000 per hectare per year.

Article 2. Applicability

In cases where the Government or the Prime Minister issues a different support rate, such rate shall be implemented.

2. Natural forest areas managed by Forest Management Boards, districts, and other entities not covered under the scope of support (as per Decision No. 2242/QĐ-TTg). During the period from 2014 to 2020, natural forest areas approved with management plans and granted forest management certificates (FSC) by the Prime Minister for the harvesting of natural forest wood are not eligible for support.

Article 4. Preparation of Budget Estimates and Consolidation of Support Expenditure Budgets

1. For support funds for forestry companies under the management of Ministries and sectors (referred to collectively as the Sectoral Management Ministry)

Annually, based on the approved area of natural forests that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg, the Sectoral Management Ministry shall examine and approve the budget estimates for support funds for affiliated forestry companies according to Appendix No. 01 and the decision form in Appendix No. 05 attached hereto, and submit them to the Ministry of Finance and the Ministry of Agriculture and Rural Development before June 30 of the preceding year of the plan.

2. For support funds for forestry companies under the management of provincial People's Committees (hereinafter referred to collectively as Provincial People's Committees)

a) Annually, based on the approved area of natural forests that must temporarily cease logging operations pursuant to Decision No. 2242/QĐ-TTg by the Provincial People's Committee, the Department of Finance shall take the lead in coordinating with the Department of Agriculture and Rural Development to prepare the budget estimates for support funds for forestry companies according to Appendix No. 01 attached hereto;

b) The Chairman of the Provincial People's Committee shall examine and approve the budget estimates for support funds according to the decision form in Appendix No. 05 attached hereto, and submit them to the Ministry of Finance and the Ministry of Agriculture and Rural Development before June 30 of the preceding year of the plan;

The time for preparing the budget estimates and submitting reports by local finance departments shall be determined by the Provincial People's Committee based on the characteristics of the locality, ensuring that the reports are submitted to the Ministry of Finance and the Ministry of Agriculture and Rural Development before June 30 of the preceding year of the plan.

3. The Ministry of Agriculture and Rural Development shall consolidate the area and review the need for support funds for forestry companies under the management of Ministries and sectors, and provincial People's Committees, and submit them together with the annual state budget preparation report to the Ministry of Finance according to Appendix No. 02 attached hereto.

4. The Ministry of Finance shall base its report on the reports from the Ministry of Agriculture and Rural Development, the Sectoral Management Ministry, and the Provincial People's Committees to review and consolidate into the state budget revenue and expenditure estimates and the central budget allocation plan, and report to the Government for submission to the National Assembly for consideration and approval.

b) The Chairman of the People's Committee of the province shall examine and approve the budget estimate for support funds according to the Decision Form attached as Appendix No. 05 to this Circular, and send it to the Ministry of Finance and the Ministry of Agriculture and Rural Development before June 30 of the year preceding the planning year;

The time for preparing the budget estimate and submitting the report of the provincial finance department shall be stipulated by the provincial People's Committee based on the characteristics of the locality, ensuring that the report is sent to the Ministry of Finance and the Ministry of Agriculture and Rural Development before June 30 of the year preceding the planning year.

3. The Ministry of Agriculture and Rural Development shall compile the area and assess the need for support funds for forestry companies under the management of relevant ministries and the People's Committees of the provinces at the same time as preparing the annual state budget estimates and submit them to the Ministry of Finance according to Appendix No. 02 attached to this Circular.

4. The Ministry of Finance, based on the reports from the Ministry of Agriculture and Rural Development, the relevant ministries managing the sectors, and the People's Committees of the provinces, shall review and consolidate these into the state budget revenue and expenditure estimates, and the central government budget allocation plan, and report to the Government for submission to the National Assembly for consideration and decision.

Article 5. Allocation of Financial Support Funds

1. After the state budget estimate has been prepared and the central government budget allocation plan has been decided by the National Assembly; upon assignment of state budget revenue and expenditure tasks by the Prime Minister, the Ministry of Finance shall allocate financial support funds to the sector management ministry and provincial/municipal people's committees at the same time as allocating other supplementary central government budget funds with specific objectives to local budgets, while sending the Ministry of Agriculture and Rural Development for inspection and supervision.

2. The minister of the sector management ministry and the provincial people's committee chairman shall base on the characteristics and situation of each enterprise, the area of natural forests that must temporarily cease exploitation, and the level of support to implement the ordering mechanism or assign plans to each company in accordance with the provisions of the law.

3. Based on the approved financial support fund estimate, according to the assigned plan or order contract, the Minister of Finance (for forestry companies under the sector management ministry) and the provincial people's committee chairman (for forestry companies under the provincial people's committee) shall implement the allocation of funds based on the area, level of support, and issue financial support funds to companies in the form of payment orders.

a) For the method of assigning plans

Annually, based on the assigned plan, in the first quarter, the finance agency (Ministry of Finance, Department of Finance) shall temporarily allocate 60% of the financial support funds according to the approved plan; at the end of the third quarter, based on the report on the implementation of nine months and the possibility of full-year implementation, the finance agency (Ministry of Finance, Department of Finance) shall allocate the remaining financial support funds according to the volume implemented in the year.

b) For the method of placing orders

Based on the order contract, temporarily allocate 50% of the financial support funds immediately after the contract is signed; temporarily allocate another 40% of the financial support funds when the volume is accepted for inspection; settle the remaining portion when the volume is settled. The acceptance of the volume implemented follows the guidance of the Ministry of Agriculture and Rural Development.

Article 6. Settlement of Financial Support Funds

1. For financial support funds for forestry companies under the sector management ministry

a) Annually, the sector management ministry shall take the lead, coordinating with the Ministry of Finance to organize the review of the settlement of financial support funds of the companies and prepare a review record. The basis for conducting the review is as follows:

- Decision of the sector management ministry regarding the approval of the area of natural forests that are production forests to be temporarily ceased from exploitation;

- Assignment decision for the assignment method; order contract, acceptance record, contract termination record for the order method to protect the area of natural forests that must temporarily cease exploitation of the companies;

- Acceptance record of the area of natural forests that are production forests temporarily ceased from exploitation by the sector management ministry;

- Budget estimate of financial support funds to protect natural forests of the companies approved by the competent authority;

- Annual financial report of the company approved by the competent authority, including a separate section for financial support funds to protect the area of natural forests that must temporarily cease exploitation.

b) Based on the review results, the sector management ministry shall issue a decision to approve according to the Model Decision at Appendix No. 06, Appendix No. 03, and Appendix No. 04 attached to this Circular and send it to the Ministry of Finance in accordance with the State Budget Law and the provisions of this Circular.

2. For financial support funds for forestry companies under the provincial people's committee

a) Annually, the Department of Finance shall take the lead, coordinating with the Department of Agriculture and Rural Development to organize the review of the settlement of financial support funds of the companies and prepare a review record. The basis for conducting the review is as follows:

- Decision of the provincial people's committee regarding the approval of the area of natural forests that are production forests to be temporarily ceased from exploitation;

- Assignment decision for the assignment method; order contract, acceptance record, contract termination record for the order method to protect the area of natural forests that must temporarily cease exploitation of the companies;

- Acceptance record of the area of natural forests that are production forests temporarily ceased from exploitation by the Department of Agriculture and Rural Development;

- Budget estimate of financial support funds to protect natural forests of the companies approved by the competent authority;

- Annual financial report of the company approved by the competent authority, including a separate section for financial support funds to protect the area of natural forests that must temporarily cease exploitation.

The review period for settlement coincides with the financial report inspection period of the Company.

b) Based on the review results, the Department of Finance shall submit to the provincial people's committee chairman for issuance and approval according to the Model Decision at Appendix No. 06, Appendix No. 03, and Appendix No. 04 attached to this Circular and send it to the Ministry of Finance and the Ministry of Agriculture and Rural Development;

c) The organization of settlement and approval of settlement by the provincial people's committee must comply with the provisions of the State Budget Law.

3. Settlement between local budget and central budget

On the basis of approving the settlement of financial support funds according to Decision No. 2242/QĐ-TTg for forestry companies, the provincial people's committee shall aggregate into the local budget settlement submitted to the provincial People's Council for approval and report to the Ministry of Finance in accordance with the State Budget Law and the provisions of this Circular.

Article 7. Handling surplus and deficit funds

1. Funds not fully utilized at year-end shall be handled in accordance with the provisions of the State Budget Law and guiding documents.

2. Deficit funds shall be supplemented from the central budget for the following year's budget estimate.

Article 8. Accounting Records

The accounting treatment of support funds from the state budget to protect natural forest areas in forestry companies shall be carried out in accordance with the current enterprise accounting regulations.

Article 9. Effective Date

This Circular takes effect from February 8, 2017.

Article 10. Responsibility for Implementation

1. Annually, the Ministry of Agriculture and Rural Development shall be responsible for coordinating with the Ministry of Finance to develop plans to inspect the management and use of support funds for forestry companies pursuant to Decision No. 2242/QĐ-TTg of the Prime Minister.

2. Relevant ministries managing sectors and provincial People's Committees shall be responsible for inspecting and supervising the implementation of Decision No. 2242/QĐ-TTg by forestry companies; reporting to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

3. During the implementation process, if there are difficulties, relevant ministries managing sectors, provincial People's Committees, forestry companies, and related organizations and individuals are requested to reflect issues to the Ministry of Finance for research and appropriate amendments and supplements./.