Circular No. 35/1999/TC-TT guides the financial management and use of the Agent Orange Victim Support Fund.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 35/1999/TC-TT ON APRIL 2, 1999

GUIDELINES FOR FINANCIAL MANAGEMENT AND USE OF THE FUND

TO ASSIST VICTIMS OF AGENT ORANGE

Pursuant to Decision No. 105/1998/QĐ-TTg dated June 9, 1998 of the Prime Minister allowing the Vietnam Red Cross to establish the Fund to assist victims of Agent Orange.

Pursuant to Decree No. 87-CP dated December 19, 1996 and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Government detailing the division of management levels, budget preparation, implementation, and settlement of state budget.

Pursuant to Decision No. 222/1998/TCCP-TC dated July 23, 1998 of the Government Organizational and Cadre Board approving the charter and operation regulations of the Fund to assist victims of Agent Orange from the war in Vietnam.

After reaching consensus with the Vietnam Red Cross, the Ministry of Finance provides guidelines for financial management and use of the Fund to assist victims of Agent Orange as follows:

I. GENERAL PROVISIONS:

1. The Fund to assist victims of Agent Orange is a non-profit humanitarian fund. The Fund has the function of building and developing financial resources to contribute to assisting Agent Orange victims in stabilizing their family lives and integrating into society.

2. The beneficiaries of the Fund's assistance are those victims of Agent Orange as concluded by competent authorities.

3. The Fund to assist victims of Agent Orange must open and deposit its account at a state-owned commercial bank. Idle funds of the Fund may be deposited in savings accounts of state-owned commercial banks or purchased government treasury bills, bonds, and promissory notes issued by state-owned commercial banks and the State Bank. The account holder is the Fund’s Executive Director or a person authorized by the Director.

II. SPECIFIC PROVISIONS

1. Sources of income for the Fund to assist victims of Agent Orange include:

a. Humanitarian donations, support, and aid from governments, international organizations, economic organizations, collectives, and individuals both domestically and internationally.

b. Interest from deposits, savings, treasury bills, and government bonds.

c. Financial support from the state budget for part of the operational costs and a certain number of staff positions necessary for the Fund, according to the approved budget estimate by the competent authority.

d. Other income sources.

2. Expenditure items of the Fund to assist victims of Agent Orange:

a. Assistance to victims of Agent Orange in cases of medical examination and treatment, corrective surgery, functional recovery, vocational training, and job placement, as well as provision of essential means for victims confirmed to be in extreme difficulty by local authorities. This expenditure item uses 90% of the income.

b. Administrative and management expenses of the Fund according to current national standards and norms. This expenditure item uses 8.5% of the annual income. Of this, 3.5% of the income is allocated for counterpart funding for aid projects. Any surplus at year-end is returned to the Fund to support Agent Orange victims.

c. Awards and incentives for Fund employees and individuals or units recognized for achievements in establishing the Fund by the Fund Management Council, and emergency hardship allowances for Fund employees according to state regulations (capped at three months' actual salary). This expenditure item uses 1.5% of the annual income. Any surplus at year-end is returned to the Fund to support Agent Orange victims.

3. Budget preparation, accounting, and settlement of income and expenditure of the Fund:

- The preparation of budgets, management, and settlement of funds supported by the state budget shall be carried out in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance. Annually, along with the time for preparing the state budget, the Fund to assist victims of Agent Orange is responsible for preparing the budget for income and expenditure of the Fund, including the portion of funds supported by the state budget, to be submitted for approval by the Fund Management Council and reported to the Vietnam Red Cross for consolidation and reporting to the Ministry of Finance.

- The Fund to assist victims of Agent Orange must maintain accounting records and organize accounting work to monitor all activities of income and expenditure of the Fund and ensure proper and lawful use in accordance with this circular.

- For aid sources: The Fund must comply with current state regulations on receiving, managing, and using aid sources.

- Accounting entries and annual settlement of the Fund to assist victims of Agent Orange shall be conducted in accordance with Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996 of the Minister of Finance on the issuance of the system of accounting regulations for administrative and public services and other current state regulations.

- The Ministry of Finance will coordinate with the Vietnam Red Cross to inspect the management and use of funds by the Fund to assist victims of Agent Orange. The Director of the Fund to assist victims of Agent Orange is responsible under the law for the management of income, expenditure, and assets of the Fund.

III. IMPLEMENTATION PROVISIONS:

This circular takes effect fifteen days from the date of signature. During implementation, if there are difficulties or obstacles, they should be promptly reported to the Ministry of Finance for study and appropriate amendments.

                                                                        Nguyen Thi Kim Ngan

                                                                            (Signed)