Circular No. 340/2016/TT-BTC guiding the level of support and financial mechanism for the training of cooperative workforce, establishment of new cooperatives, and restructuring of cooperative operations under the Cooperative Development Support Program for the period 2015-2020.

CIRCULAR

GUIDELINES ON THE LEVEL OF SUPPORT AND FINANCIAL MECHANISM FOR SUPPORTING THE DEVELOPMENT OF HUMAN RESOURCES IN COOPERATIVES, ESTABLISHING NEW COOPERATIVES, REORGANIZING THE ACTIVITIES OF COOPERATIVES UNDER THE PROGRAM TO SUPPORT THE DEVELOPMENT OF COOPERATIVES FOR THE PERIOD 2015-2020

Pursuant to the Law on Cooperatives dated November 20, 2012;

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. 193/2013/ND-CP dated November 21, 2013 of the Government detailing certain provisions of the Cooperative Law;

Pursuant to Decision No. 1600/2016/QĐ-TTg dated August 16, 2016 of the Prime Minister approving the National Target Program on New Rural Development for the period 2016-2020;

Implementing Decision No. 2261/QĐ-TTg dated December 15, 2014 of the Prime Minister approving the Program to Support the Development of Cooperatives for the period 2015-2020.

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).

The Minister of Finance issues this Circular guiding the level of support and financial mechanism for supporting the development of human resources, establishing new cooperatives, reorganizing the activities of cooperatives under the Program to Support the Development of Cooperatives for the period 2015-2020,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the level of support and financial mechanism for supporting the development of human resources, establishing new cooperatives, and reorganizing the activities of cooperatives according to Decision No. 2261/QĐ-TTg dated December 15, 2014 of the Prime Minister approving the Program to Support the Development of Cooperatives for the period 2015-2020 (hereinafter referred to as Decision No. 2261/QĐ-TTg of the Prime Minister).

Article 2. Applicability

1. Cooperatives, including people's credit funds and cooperative unions (hereinafter referred to as cooperatives), which meet specific criteria for each type of support as prescribed in the Program to Support the Development of Cooperatives for the period 2015-2020 issued pursuant to Decision No. 2261/QĐ-TTg dated December 15, 2014 of the Prime Minister.

2. Members, founders, organizations, and individuals who have the need to establish and join cooperatives.

3. Agencies, state management officials on cooperatives, and organizations and individuals directly related to the development of cooperatives.

Article 3. Principles of Support

1. Based on the field, area, economic and social development conditions during each period, the level of development of cooperatives, and the budgetary balance capacity, ministries and sectors responsible for state management of cooperatives according to their assigned areas of management, provincial People's Committees (hereinafter referred to as provincial People's Committees) shall aggregate needs and develop support plans according to the program contents, specifying the support content and specific levels of support, ensuring they do not exceed the scope and maximum level of support as prescribed in this Circular.

2. Expenses for items not specified with a level of expenditure shall be reimbursed based on actual occurrence (with valid invoices and expense vouchers) but must be within the approved budget for support expenses.

3. Funds for supporting the development of human resources, establishing new cooperatives, and reorganizing cooperative activities must be managed and used for their intended purposes and for the designated beneficiaries.

4. Founders of cooperatives preparing to establish cooperatives and cooperatives reorganizing their activities do not have to pay any costs during the process of receiving support.

Article 4. Source of Funds

1. Source of funds for supporting the development of human resources in cooperatives: The central budget supports 100% of the funds from the National Target Program on New Rural Development for localities to implement.

2. Source of funds for supporting the establishment of new cooperatives and registration of changes as prescribed by the Law on Cooperatives: Local budgets support 100%.

3. Source of funds for supporting the reorganization of cooperative activities: Local budgets support 50%, the remaining portion of the funds is covered by the cooperatives themselves from their own sources or raised from other legitimate sources.

Chapter II

SPECIFIC PROVISIONS

PART I. SUPPORT FOR TRAINING AND DEVELOPMENT OF COOPERATIVE HUMAN RESOURCES

Article 5. Conditions and Criteria for Supporting Training and Development of Cooperative Human Resources

The conditions and criteria for supporting training and development of cooperative human resources shall be implemented in accordance with the provisions set out at point a, Clause 1, Section III, Article 1 of Decision No. 2261/QĐ-TTg of the Prime Minister.

Article 6. Content and Level of Support for Management Cadres and Members of Cooperatives

1. One-time support for trainee travel expenses for round-trip tickets by public transportation means (excluding air travel) from the main office of the cooperative to the training venue (including ferry and boat tickets if applicable). In cases where trainees provide their own transportation, they will be supported at a rate of VND 1,000 per kilometer.

2. Support for purchasing textbooks and materials directly related to the course program (excluding reference materials).

3. Support fifty percent of the food and accommodation costs for cooperative members engaged in agriculture, forestry, fisheries, and salt production, based on the travel expense allowance for officials and civil servants as stipulated by the provincial People's Committee. This level of support must be within the budgeted training and development expenses.

4. In cases where cooperatives have their main offices located in economically disadvantaged areas, extremely disadvantaged areas, border regions, or islands, cooperative members engaged in agriculture, forestry, fisheries, and salt production, in addition to the support provided under Clauses 1 and 2 of this Article, will receive full support for food and accommodation costs based on the travel expense allowance for officials and civil servants as stipulated by the provincial People's Committee and must be within the budgeted training and development expenses; cooperative members engaged in other fields will receive support at fifty percent of the level provided for cooperatives engaged in agriculture, forestry, fisheries, and salt production.

Article 7. Content and Level of Support for Organizing and Managing Training Classes for Cooperative Human Resources

1. Renting conference halls and classrooms during the training period (in cases where the organization does not have suitable venues or has but cannot accommodate the number of participants), renting projectors and other equipment directly serving the class.

2. Providing drinking water for participants: The expenditure level is regulated by Circular No. 97/2010/TT-BTC dated July 6, 2010, issued by the Ministry of Finance, regarding travel expense regulations and cost regulations for organizing conferences for state agencies and public service units, and any subsequent amendments.

3. Purchasing and printing teaching materials; printing certificates or completion certificates; rewarding participants; purchasing office supplies for the class.

4. Honorariums for lecturers and speakers; meal allowances; travel expenses; rental of accommodation for lecturers: The expenditure level is regulated by Circular No. 139/2010/TT-BTC dated September 21, 2010, issued by the Ministry of Finance, regarding management and utilization of state budget funds for cadre and civil servant training and development, and any subsequent amendments.

In cases where the speaker is a member of the cooperative management board or director who comes to teach and share experience at the training session, the maximum honorarium is VND 500,000 per session, and meal expenses, travel costs, and accommodation rental can be reimbursed according to the regulations for speakers as stipulated in this clause.

5. Costs for organizing field trips and practical surveys included in the course program:

If the training program includes field trips and surveys, the training organizer may incur expenses for renting vehicles and associated costs to organize such activities for participants.

Training programs under the policy of supporting cooperative human resource development that include field trips and surveys must be included in the approved Support Development Plan for Cooperatives (approved by the Ministry for the Ministry-level Support Development Plan for Cooperatives, and by the provincial People's Committee for the provincial Support Development Plan for Cooperatives).

6. Costs for compiling curricula, textbooks, and materials for teaching and learning: According to the compilation cost levels for curricula and textbooks for vocational secondary education as stipulated in Circular No. 123/2009/TT-BTC dated June 17, 2009, issued by the Ministry of Finance, regarding the content and cost levels for building curriculum frameworks and compiling curricula and textbooks for university, college, and vocational secondary education programs, and any subsequent amendments.

7. Meal, accommodation, travel, and accommodation rental allowances for the organizing committee when organizing training sessions away from the training location: According to the current travel expense regulations stipulated in Circular No. 97/2010/TT-BTC dated July 6, 2010, issued by the Ministry of Finance, regarding travel expense regulations and cost regulations for organizing conferences for state agencies and public service units, and any subsequent amendments.

Article 8. Support for pilot models to recruit young university and college graduates to work on a fixed-term basis at cooperatives

1. Content of support:

Cooperatives that need support for high-level laborers with a college degree or higher to assist in management, applying scientific and technological progress to production and business activities consistent with their main fields of operation shall be supported as follows:

a) Cooperatives operating in agriculture, forestry, fishery, and salt industries shall be supported once to hire up to three workers with a college degree or higher to work at the cooperative, with the support period not exceeding thirty-six months.

b) Cooperatives not operating in agriculture, forestry, aquaculture, or salt industries shall be supported once to hire one worker with a college degree or higher to work at the cooperative, with the support period not exceeding thirty-six months.

b) For the policy specified in point b, Clause 1 of this Article, the water storage facility must ensure water supply and irrigation services for at least three members of the grassroots irrigation organization; all beneficiaries must agree to contribute the remaining funding; the grassroots irrigation organization must manage and operate the facility after completion.

a) The cooperative has a plan for using labor; signs a labor contract with employees in accordance with the current Labor Law and guiding documents; submits a request for support.

b) The cooperative is an eligible recipient of support under the Provincial People's Committee-approved Support Plan for Cooperative Development and the Ministry of Planning and Investment’s Support Plan for Training Cooperative Human Resources.

c) Has been approved by the competent authority for the financial plan.

3. Level of support: The maximum level of support for each cooperative equals the number of supported workers multiplied by the minimum wage rate in the region multiplied by the number of supported months.

4. Amounts required to be deducted and paid according to current laws (e.g., social insurance, health insurance, unemployment insurance, trade union fees) shall be borne by the cooperative and the employee in accordance with regulations.

PART II. SUPPORT FOR THE ESTABLISHMENT OF NEW COOPERATIVES AND REORGANIZATION OF COOPERATIVE ACTIVITIES

Article 9. Content, conditions, and criteria for supporting the establishment of new cooperatives and reorganization of cooperative activities

The content, conditions, and criteria for supporting the establishment of new cooperatives and reorganization of cooperative activities shall be implemented in accordance with Point d, Clause 1, Section III, Article 1 of Decision No. 2261/QĐ-TTg of the Prime Minister.

Article 10. Level of support for establishing new cooperatives

1. Support for organizing training classes, providing information, and consulting on cooperative-related laws before establishment for cooperative founders.

a) Costs for organizing concentrated training classes:

- Remuneration for lecturers, report presenters, travel allowances, room rental for lecturers: The expenditure level is regulated by Circular No. 139/2010/TT-BTC dated September 21, 2010, of the Ministry of Finance on managing and using state budget funds for training and capacity building for civil servants and other relevant supplementary documents (if any);

- Water costs for participants: The expenditure level is regulated by Circular No. 97/2010/TT-BTC dated July 6, 2010, of the Ministry of Finance on travel expenses and meeting organization costs for state agencies and public institutions and other relevant supplementary documents (if any);

- Purchase, printing costs for materials and other directly related costs: According to legitimate and valid invoices and receipts.

b) Information dissemination and popularization costs for cooperative-related laws: Expenditure levels according to legitimate and valid invoices and receipts within the approved budget by the competent authority.

2. Support for consulting on drafting bylaws, production and business plans, guidance, and implementation of procedures for establishment, registration, and organizational activities of cooperatives.

a) For non-civil servant instructors and collaborators:

- Remuneration: VND 30,000 per hour of direct guidance;

- Travel expenses: Maximum VND 30,000 per day for round-trip travel. In cases where consultation is conducted far away requiring overnight stay, travel expenses will be reimbursed according to regulations for civil servants on official trips.

b) For civil servants and public officials performing advisory tasks:

Allowance: VND 30,000 - VND 70,000 per session of direct guidance (one session equals four working hours). In cases where consultation is conducted far away requiring overnight stay, travel expenses will be reimbursed according to regulations for civil servants on official trips.

Article 11. Level of expenditure for supporting the procedures to reorganize cooperative activities according to the Law on Cooperatives

1. In cases of registration for changes in accordance with the provisions of the Law on Cooperatives, the Cooperative shall enjoy support policies similar to those for newly established cooperatives as stipulated in Article 10 of this Circular.

2. In cases of registration due to mergers, consolidations, divisions, or separations of cooperatives or cooperative unions, the Cooperative shall be supported with 50% of the costs as for newly established cooperatives as stipulated in Article 10 of this Circular.

PART III. ESTABLISHING BUDGETS, IMPLEMENTATION AND SETTLING ACCOUNTS FOR SUPPORT EXPENSES

The establishment of budgets, utilization, and settlement of support expenses for enhancing human resources of cooperatives, establishing new cooperatives, and reorganizing cooperative activities under the Support Program for Developing Cooperatives shall be carried out in accordance with the provisions of the State Budget Law and other guiding documents of the Law, Decision No. 41/2016/QĐ-TTg dated October 10, 2016 issued by the Prime Minister on the management and operation regulations for implementing national target programs, and the implementation guidelines for the National Target Program on Building New Rural Areas, as well as the provisions of this Circular.

Article 12. Establishing Plans and Budgets for Expenses

1. For tasks within the local budget

a) At the time of building the socio-economic plan and state budget estimate annually, the Department of Agriculture and Rural Development (the main agency of the National Target Program on Building New Rural Areas) shall take the lead and coordinate with relevant units to develop plans and budget estimates for state budget support for cooperatives in line with the socio-economic development orientation of the locality, and submit them to the Department of Finance.

b) The Department of Finance shall review and consolidate these estimates into the local budget draft, report to the People's Committee of the province for approval by the Provincial People's Council, and simultaneously send to the Ministry of Agriculture and Rural Development (the main agency of the National Target Program on Building New Rural Areas), the Ministry of Finance, and the Ministry of Planning and Investment before August 15 of the year preceding the planning year, to aggregate the state budget support expense estimates for developing cooperatives nationwide.

2. For tasks within the central budget

The Ministry of Agriculture and Rural Development shall aggregate the needs and plans of ministries, sectors, localities, and organizations before August 15 of the year preceding the planning year, and submit them to the Ministry of Finance and the Ministry of Planning and Investment. Among these, a separate line shall be noted for the expense of supporting the enhancement of cooperative human resources (including pilot model support for young university and college graduates working temporarily at cooperatives).

The Ministry of Finance shall consider balancing the state budget to present to the Government for reporting to the National Assembly to decide on the portion of the central budget for supporting cooperative development.

Article 13. Allocation of Budget Estimates

1. For the central budget:

Based on the approved central budget estimate for supporting cooperative development, the Ministry of Finance, in coordination with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development, shall allocate plans for supporting the enhancement of cooperative human resources, budget support funds for each ministry, sector, organization, and supplementary targeted funds for localities.

2. For the local budget:

Based on the local budget estimate and the notification of central budget support for enhancing cooperative human resources in the area, the Department of Finance, in coordination with the Department of Agriculture and Rural Development and the Department of Planning and Investment, shall submit to the provincial People's Committee for decision on allocating budget plans to units in accordance with the State Budget Law and current guiding documents.

Article 14. Advance Payment of Operating Funds

Cooperatives may advance operating funds for direct support to cooperatives, with the amount of advance payment not exceeding 50% of the total supported operating funds.

The procedures for advance payment of operating funds and the application for advance payment shall be carried out in accordance with the current regulations on advance payment of operating funds from the state budget.

Article 15. Settlement and Finalization of Operating Funds

1. Issuance of operating funds supporting cooperatives shall be conducted through cash disbursement orders or withdrawal from the state budget.

2. The finalization of operating funds supporting cooperatives shall be implemented in accordance with the provisions of the State Budget Law and related guiding documents.

3. Any surplus funds (if any) must be returned to the state budget in accordance with the provisions of the State Budget Law.

Chapter III

INSPECTION, SUPERVISION, AND REPORTING

Article 16. Inspection and supervision work

a) For expenditure tasks under local budgets: The People's Committee of the province shall assign the Department of Finance to take the lead, coordinate with the Department of Planning and Investment and relevant agencies to supervise, periodically or unexpectedly inspect and evaluate the implementation of funds for human resource development, establishment of new cooperatives, and restructuring of cooperatives within their jurisdiction.

b) For expenditure tasks under the central budget: The Ministry of Finance shall take the lead, coordinate with the Ministry of Planning and Investment and relevant agencies to periodically or unexpectedly inspect and evaluate the implementation of plans assigned to units.

Article 17. Reporting Work

Annually, ministries, sectors, central agencies, provincial People's Committees have the responsibility to report and evaluate the implementation of financial support for human resource development, establishment of new cooperatives, and restructuring of cooperative activities according to this Circular, to be submitted to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, and the Ministry of Finance before November 15 for consolidation, and the Ministry of Finance will report to the Prime Minister.

Chapter IV

IMPLEMENTATION

Article 18. Transitional Provisions

For cooperative human resource development support, new cooperative establishment, and cooperative activity restructuring according to the approved cooperative development support plan prior to the effectiveness of this Circular, the expenditure levels shall be implemented in accordance with Circular No. 66/2006/TT-BTC dated July 17, 2006, and Circular No. 173/2012/TT-BTC dated October 22, 2012 amending and supplementing Circular No. 66/2006/TT-BTC dated July 17, 2006, issued by the Ministry of Finance, guiding the level of support and financial mechanism for cooperative human resource development support, and support for the establishment of new cooperatives.

Article 19. Effective Date

1. This Circular shall take effect 45 days from the date of signature.

2. Repeal Circular No. 66/2006/TT-BTC dated July 17, 2006, and Circular No. 173/2012/TT-BTC dated October 22, 2012 amending and supplementing Circular No. 66/2006/TT-BTC dated July 17, 2006, issued by the Ministry of Finance, guiding the level of support and financial mechanism for cooperative human resource development support, and support for the establishment of new cooperatives.

3. In cases where the expenditure levels referred to in the legal documents cited in this Circular are amended or supplemented by other documents, they shall be implemented in accordance with the corresponding amended or supplementary documents.

4. During the implementation process, if there are any difficulties, please reflect them to the Ministry of Planning and Investment and the Ministry of Finance for research and appropriate amendments and supplements./.