Decision No. 40/2000/QĐ-BNNPTNT/TCCB on the issuance of regulations for the organization and implementation of the Vietnam-Sweden Mountain Rural Development Program

Pursuant to …;

Regarding the issuance of the regulations on organizing and implementing

 the Vietnam-Sweden Mountain Rural Development Program

THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT

Pursuant to Decree No. 73/CP dated November 1, 1995 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Considering the proposal of the Director of the Forest Project Management Board and the Director of the Vietnam-Sweden Mountain Rural Development Cooperation Program.

At the proposal of the Director of the Cadre Organization Department,

Pursuant to …;

Article 1: We hereby issue the regulations on organizing and implementing the Vietnam-Sweden Mountain Rural Development Program attached hereto.

Article 2: THIS DECISION SHALL TAKE EFFECT 15 DAYS AFTER THE DATE OF SIGNATURE.

Article 3: The Heads of the Office of the Ministry, Heads of Departments, Bureaus, Functional Boards under the Ministry, members of the Vietnam-Sweden Mountain Rural Development Program, the Director of the Forest Project Management Board, the Director of the Program, and the Directors of projects under the Vietnam-Sweden Mountain Rural Development Program shall be responsible for implementing this decision.

 

REGULATIONS

d.1. Amount of taxable income in Vietnam:Organizing and implementing the Vietnam-Sweden

 Mountain Rural Development Program
(Issued together with Decision No.: 40/2000/QĐ-BNN-TCCB dated April 13, 2000

of the Minister of the Ministry of Agriculture and Rural Development)

Chapter I

GENERAL PROVISIONS

Article 1Basis for establishing the regulations:

The regulations on organizing and implementing the Vietnam-Sweden Mountain Rural Development Program are established based on the following documents:

Decision No. 101-1999/QĐ/BNN-TCCB dated July 3, 1999 of the Minister of the Ministry of Agriculture and Rural Development on restructuring the Forest Aid Project Management Board and renaming it the Forest Project Management Board.

The program document from May 1996 and the Agreement on Cooperation in Rural Development in Mountainous Areas between the Government of Vietnam and the Kingdom of Sweden signed on August 22, 1996.

Decision No. 178 NN-TCCB/QĐ dated February 12, 1996 of the Ministry of Agriculture and Rural Development on establishing the Vietnam-Sweden Mountain Rural Development Program Board.

Regulation No. 4773 BNN-BCT dated December 24, 1997 of the Ministry of Agriculture and Rural Development on setting expenditure standards in the Vietnam-Sweden Mountain Rural Development Program.

Document No. 1.5.3-1 dated October 14, 1997 of the Swedish International Development Cooperation Agency (SIDA) in Hanoi regarding allowances for staff working at commune and village levels within the program.

Policy framework and strategy of the Vietnam-Sweden Mountain Rural Development Program, September 1998.

Article 2: Program management.

The Vietnam-Sweden Mountain Rural Development Program (MRDP) is organized and managed uniformly from central level (Ministry of Agriculture and Rural Development) to five provinces where the program operates (province, district, commune, village in Lao Cai, Ha Giang, Tuyen Quang, Yen Bai, Phu Tho, project to enhance capacity for advisory services at the ministry level, sector coordination, and strategic research) in a decentralized manner to ensure that the program progresses according to schedule and achieves its goals.

Chapter II

ORGANIZATIONAL STRUCTURE OF THE PROGRAM AND MANAGEMENT FUNCTIONS OF THE LEVELS UNDER THE PROGRAM

PART 1

 CENTRAL MANAGEMENT LEVEL

Article 3: Program Board.

- The Program Board was established pursuant to Decision No. 178 NN-TCCB/QĐ dated February 12, 1996 of the Minister of the Ministry of Agriculture and Rural Development (NN&PTNT). The Program Board is responsible to the Ministry of NN&PTNT for organizing and implementing the contents of the Agreement signed between the Governments of Vietnam and Sweden. The composition of the Program Board includes:

- The Program Board has the following functions and responsibilities:

- It serves as the main point of contact and works with the Swedish International Development Cooperation Agency (hereinafter referred to as SIDA) on the implementation of the program according to the agreement and new development strategies related to the program.

- It manages the Swedish aid and Vietnamese counterpart funds, allocates these funds according to commitments with SIDA and state regulations, in accordance with the program's plan and objectives.

- It decides (or proposes to the competent authority to decide) major policies and strategies for development under the Vietnam-Sweden Mountain Rural Development Program, decides annual work plans, and directs the implementation of those plans.

- It manages, directs, and supervises the implementation of the program and projects.

- It organizes evaluations of the economic, social, and environmental effectiveness of the program.

- It compiles and settles the annual budget and concludes the program with the Ministry of NN&PTNT, the Ministry of Finance, and SIDA.

- It reports on all aspects of the program's activities every six months to the Minister of the Ministry of NN&PTNT and relevant state agencies.

It comprehensively evaluates the program's activities, documents, and disseminates results and experiences.

Article 4: Office of the Program

1. The Office of the Program Management Board is a permanent unit assisting the Program Management Board in managing, directing, and operating the program activities and projects according to the program's objectives.

The Program Office includes: the Program Director (appointed by the Ministry of Agriculture and Rural Development) who is a member of the Program Management Board, and departments such as planning, accounting, technology, and administration.

2. Functions and tasks of the Program Management Board Office:

a. Guide the preparation of the annual activity plan, consolidate this plan, and submit it to the Program Management Board for approval, serving as the basis for negotiations and decisions by the Ministry and SIDA, and for organizing implementation and monitoring the execution of the plan.

b. Directly handle all internal and external activities related matters under the authority of the Program Management Board President to ensure the program's timely implementation and compliance with commitments under signed agreements. Report on the results of implementation and issues requiring the Program Management Board President's opinion.

c. Manage financial activities in accordance with approved plans, in compliance with state regulations, prepare annual settlements and final agreement settlements, and report financial activities as required.

d. Prepare content for regular meetings with SIDA, the Program Management Board, program workshops, training sessions, and specialized working visits by SIDA.

Closely coordinate the activities of the advisory group from the consulting company to effectively utilize the program's advisory team to achieve the agreement's objectives.

g. Manage and use equipment and materials efficiently for the program's purposes.

h. Guide the implementation of state policies and regulations in the sector.

i. Draft program regulations, policies, and strategies for submission to competent authorities for approval.

k. Organize training courses, workshops, and seminars related to professional and technical matters.

L. Inspect, monitor, and evaluate program activities and projects (periodically or unexpectedly), reporting to the Program Management Board President and relevant sectors periodically.

m. The operational budget of the Program Management Board and its Office (including contributions from Sweden and Vietnam) is based on the approved annual activity plan.

Article 5. Project to Enhance Ministry-Level Advisory Capacity.

1. The project to enhance ministry-level advisory capacity is a project under the MRDP Program located at the Department of Agricultural and Rural Development Policy. The project is led by the Department of Agricultural and Rural Development Policy Director, with staff supporting planning, financial accounting, technology, and administration. The project involves staff from relevant Bureaus and Departments participating in project management activities as assigned by the Project Director, organized into work teams.

2. Participating units within the Ministry include: the Department of Agricultural and Rural Development Policy, the Bureau of Agricultural and Forestry Extension, the Forest Development Bureau, the Processing and Export of Forestry and Agricultural Products Bureau, the Cadre and Civil Service Organization Department, the Agricultural and Rural Development Information Center, the Financial Accounting Department, the Women's Advancement Board, the Agricultural and Rural Development Management Cadre School, the Phu Ninh Rural Training and Development Center, and the Ministry of Agriculture and Rural Development Office.

- The Project Director is responsible for coordinating all activities and managing the project budget according to the plan.

Participating units within the Ministry are responsible for leading the implementation of activities assigned by the Project Director based on the approved annual project activity plan.

- 4. Tasks of the project:

- Develop policies, regulations, and strategies in the program's areas of operation, submit them to competent authorities for approval. After approval, coordinate with the Program Management Board Office and advisors to organize training and guidance for each level or the entire program.

- Implement progress reporting, financial reporting, payment, auditing, and settlement procedures as prescribed.

Article 6. Industry Coordination:

The industry coordination activities are located at the Department of International Cooperation, managed by the Head of the Department. The annual work plan of the coordination body is approved by the Ministry and SIDA. The organization of implementation, inspection, evaluation, and reporting shall be carried out according to the Program's regulations.

Article 7. Strategic Research:

The Strategic Research Council is located at the Department of Science and Technology and Product Quality, managed by the Head of the Department of Science and Technology and Product Quality. The annual work plan of the project is approved by the Ministry and SIDA. The organization of implementation, inspection, evaluation, and reporting shall be carried out according to the Program's regulations.

PART 2

LOCAL PROJECT MANAGEMENT ORGANIZATION.

Article 8: Provincial Project Steering Committee has the following functions and responsibilities:

The Provincial Project Steering Committee is headed by the Chairman or Vice-Chairman of the Provincial People's Committee. Members of the Committee include representatives from relevant provincial departments. The leader of the Provincial Department of Agriculture and Rural Development serves as a permanent member and concurrently as the Provincial Project Director appointed by the Provincial People's Committee.

1.       The Provincial Program Management Board, which is also the head of the Provincial Project Steering Committee, is responsible for managing and directing the organization and implementation of the project within the province, as well as coordinating resources within the province.

2.       The Provincial Project Steering Committee is fully accountable to the Provincial People's Committee, the Ministry of Agriculture and Rural Development, and the Program Management Board for the management, organization, and implementation of the project's objectives, contents, and annual work plans at the local level.

a. The Provincial Project Steering Committee has the following functions and responsibilities:

b. Reviewing the annual work plan and deciding on the counterpart funding for the provincial project annually.

c. Directing relevant provincial departments, district and commune people's committees within the project area to organize and implement project activities on their respective territories.

d. Coordinating funds and activities within the project area.

e. Reviewing the operational plan of the project.

Inspecting and evaluating the activities of the project management board regarding effectiveness.

g. Deciding on the annual plan for the provincial, district, commune, and village-level projects (according to the plan announced by the Ministry of Agriculture and Rural Development and SIDA) or delegating the Provincial Project Management Board to assign the plan. Establishing regulations, policies, organizational structures, and development strategies to ensure the effective operation of the project.

Article 9: Provincial Project Management Board

The Provincial Project Management Board is a standing body assisting the Provincial Steering Committee. It is under the Provincial Department of Agriculture and Rural Development.

1. The Provincial Project Management Board is subject to professional management and direction by the Program Office and must comply with periodic reporting requirements as stipulated.

The Provincial Project Management Board has a Project Director appointed by the Provincial People's Committee (who is a permanent member of the Provincial Project Steering Committee) and several supporting staff: planning coordinator, accountant, technician, administrative officer. There should be between 7 to 9 people, either full-time or part-time specialists. The Provincial Project Management Board is fully accountable to the Provincial Project Steering Committee and the Program Management Board Office for organizing and managing project activities in accordance with the Program's and State regulations.

a. The Provincial Project Management Board has the following functions and responsibilities:

b. The annual work plan is part of the overall economic and social development plan of the provincial agriculture and rural development sector. Developing the annual work plan for review by the Provincial Steering Committee before submitting it to the Program Management Board for approval.

c. Implementing the plan and monitoring project activities according to the approved objectives and plans, ensuring efficient and timely financial use.

d. Providing ongoing support to the Provincial Project Steering Committee and reporting regularly to higher levels as required.

e. Guiding the implementation of State regulations and Program Management Board directives to district, commune, and village levels.

Supporting district, commune, and village-level projects in organizing and implementing project activities.

g. Organizing training and capacity building for provincial, district, commune, and village-level officials, collaborating with various levels to inspect and evaluate activities.

h. Monitoring and supervising districts, communes, and villages in activity contents and financial management and budget utilization.

i. Reporting progress according to the Management Information and Evaluation System (MILS) and financial reports in compliance with Vietnamese accounting regulations and SCALA.

k. Summarizing experiences, methods, and documenting activities.

Article 10: County Project Management Board :

1. The County Project Management Board shall be headed by the Chairman or Vice-Chairman of the People's Committee of the county. Members include the Head of the Agricultural Extension Station, or the Department of Agriculture and Rural Development, or the Forest Protection Division, serving as the Deputy Board Chair, coordinator, accountant, specialized staff, and other mass organizations. The Board shall consist of 6 to 7 members.

2. The County Project Management Board shall have the following responsibilities:

a. Developing the annual operational plan for the county aimed at enhancing the capacity of the county level and supporting activities at the commune and village levels.

b. Sharing responsibility with the Provincial Project Management Board to monitor and support activities according to the plan for communes and villages, ensuring timely progress, quality, effectiveness, and proper management and use of the budget in accordance with regulations.

c. Guiding communes in developing their annual action plans in line with the general guidelines of the program and the provincial orientation.

d. Adhering to reporting systems, financial progress reports, accounting procedures, settlement, and finalization as prescribed by the State and the program.

Collaborating with the provincial project to organize training sessions and seminars on management and technology for the county level (and possibly the commune level).

g. Supporting commune and village-level projects in organizing and implementing project activities.

Article 11. Commune Project Management Board:

The Commune Project Management Board shall be headed by the Chairman of the People's Committee of the commune. Members may include financial and budget officers of the commune, project accountants, agricultural extension workers, forestry workers, and representatives of other mass organizations. The Commune Project Management Board shall consist of 4 to 5 members.

a. The Commune Project Management Board shall have the following functions and responsibilities:

b. Preparing the commune's annual development plan, simultaneously compiling the development plans of villages within its jurisdiction, submitting them to the competent authority for approval, and organizing their implementation.

c. During the process of preparing the annual plan and organizing its implementation, supervising and evaluating the activities of the commune and villages, coordinating with the provincial and county Project Management Boards to ensure the plan's feasibility and high effectiveness.

d. Directly managing the budget for activities at the commune and village levels. Ensuring that funds are allocated to villages in accordance with regulations.

e. Managing the activities of village-level project management groups, coordinating with the provincial and county levels in training on management and technology.

Collecting and retaining original documentation and settling accounts for commune and village-level activities in accordance with current regulations.

g. Adhering to reporting systems and financial progress reports as prescribed.

Article 12. Village Project Management Group

Elected by the people, consisting of 3 to 5 members, including: 1 group leader (who may be the village head), 1 village agricultural extension worker, 1 credit officer (who may also serve as the accountant), 1 accountant, and other mass organizations.

a. The Village Project Management Group shall have the following functions and responsibilities:

b. Organizing villagers' participation in the development planning phase and the evaluation of the annual plan's implementation (economic, social, and environmental assessments).

c. Organizing the entire village to implement the approved village development plan.

d. Managing technical materials, funding sources, organizing training sessions and technology transfer, distributing assistance to eligible recipients as stipulated by the program.

e. Organizing and implementing credit and savings services in the village.

Organizing service work to support production development in the village.

g. Participating in meetings, seminars, and training sessions on management and technology organized by the project.

h. Adhering to reporting systems and financial progress reports as prescribed.

i. Committing to using funds in the best interest of the community residents.

k. Organizing regular village meetings for all households to evaluate the implementation of village development plans.

l. Villagers must agree on the plan for using the village development fund.

m. There must be commitments between the village, commune, district, and province regarding activities and final outcomes, contributions from the MRDP Program and the village, and how to assess the final results achieved.

Article 13. Tasks of project directors at all levels.

+ Project directors shall be responsible for:

+ Implementing the project according to the approved annual operation plan.

+ Reporting and supervising project activities.

+ Providing materials for annual reports and developing the annual operation plan.

- Managing finances according to the project budget in accordance with the annual operation plan.

Project management boards at all levels shall be responsible for managing, directing, organizing the implementation of their plans according to the分级制度, and shall be subject to supervision and inspection by their superiors.

Chapter III

WORKING RELATIONSHIPS AND REGULATIONS ON LIVING ARRANGEMENTS AND REPORTING

AND REGULATIONS ON LIFESTYLE AND REPORTING

Article 14. Working relationships.

- The program working group operates under a collective leadership system where individuals are responsible for specific areas. Members of the group have the responsibility to resolve tasks assigned to them within their respective fields of responsibility.

- Members of the provincial program working group, who are also heads of provincial project steering committees, are responsible for managing and directing the organization and implementation of projects and coordinating resources within their province.

Provincial project management boards are subject to professional and technical guidance from the program office and must implement regular reporting systems as prescribed.

Article 15: Lifestyle Regulations.

Article 15. Living arrangements.

1. The program working group convenes twice a year on a regular basis to review and decide on policies, directions, approve the annual activity plan and budget, and assess the performance of the program.

Annual meetings of project directors are held twice a year to implement the annual plan, organize the execution of agreed minutes, conduct mid-year and annual reviews, and hold mid-term and annual evaluation meetings between the Ministry of Agriculture and Rural Development and SIDA.

2. In cases of necessity, the head of the program working group may convene extraordinary meetings to address urgent issues within the scope of the program's activities. Participants outside the program members will be determined by the head of the group.

Project management boards at all levels convene regularly once a month (project directors at various levels may convene extraordinary meetings if necessary).

Article 16. Reporting System:

1. Quarterly activity reports through the Management Information and Evaluation System (MILS) are conducted every three months at the provincial, district, and project levels, and every six months at the commune and village level. The latest submission date is the tenth day of the first month of each quarter, with provincial and central project reports sent to the Program Working Group Office.

2. End-of-year reports and reports prepared for mid-term and annual review meetings comprehensively evaluate progress, effectiveness, shortcomings, lessons learned, and recommendations.

3. At the end of each phase, project management boards at all levels must report on program activities and complete financial settlements according to current regulations.

4. Financial reports are prepared according to Vietnam’s accounting regulations and the Swedish Financial System (SCALA), conducted quarterly. The latest submission date is the tenth day of the next quarter, with provincial and central project reports sent to the Program Working Group Office.

+ Reporting Level: Each level aggregates data for reports according to the guidelines of the Management Information and Evaluation System (MILS) and the financial system.

+ Commune level aggregates reports from communes and villages and sends them to the district.

+ District level aggregates reports from districts and communes and sends them to the province.

+ Provincial level aggregates reports from the province and districts and sends them to the provincial steering committee and the Program Working Group Office.

Chapter IV

The Program Working Group Office aggregates reports from projects and submits them to the Program Working Group, forestry project management boards, and relevant agencies.

Article 17:

1. The development of annual operational plans at all project levels shall follow the annual activity plan construction guide issued by the Program Working Group.

a. Basic principle: The APO project plan is part of the socio-economic development plan of the province, district, commune, and village.

b. Plan development must ensure decentralization, granting each level the authority to determine and implement its own plan.

c. Diversification of activities and community participation.

+ Plan structure.

+ Support structure (provincial and district levels).

d. Requirement structure (commune and village levels).

+ Planning methods are determined from:

+ Results (step 1).

+ Activities (step 3).

2. Current status (step 2).

3. Project management boards at all levels are responsible for developing their annual operational plans. The comprehensive plan of the project, including provincial, district, commune, and village levels, is reviewed by the provincial project steering committee and the provincial People's Committee. It is then submitted to the Program Working Group Office for consolidation and approval by the Ministry of Agriculture and Rural Development and SIDA. The operational plans of all projects within the program will be officially assigned by the Ministry of Agriculture and Rural Development.

- The annual budget plan includes funding from Sweden and contributions from Vietnam.

4. Based on the approved plan, project directors submit it to the provincial People's Committee for assignment to provincial, district, commune, and village levels (or delegate the provincial project management board to assign the plan).

5. The budget for expenditures for activities shall be prepared based on the approved activity plan and the general standards prescribed by the program. In cases where certain activities do not have program standards, local standards shall be used.

During the implementation of the plan, it is necessary to monitor and inspect the progress and quality to ensure compliance with regulations and policies, and to fulfill reporting requirements according to the Management Information and Learning System (MILS).

Article 18: Overseas training activities of the entire program shall be organized and implemented by the Program Office based on the annual activity plan that has been approved - the budget for overseas training is included in the annual plan of each project.

Article 19: Adjustment of Annual Activity Plan:

Based on the results of the first six months' plan implementation, if there are new developments requiring adjustments to the annual activity plan, the project director shall propose to the Program Board and Sida for permission to adjust the project's annual activity plan.

Adjustments can only be made upon approval by the Program Board and Sida.

Chapter V

FINANCIAL MANAGEMENT AND ACCOUNTING ORGANIZATION

Article 20: Budget Preparation, Account Opening, Disbursement, and Confirmation of Aid

1. Preparation of the program budget

a. The program budget includes Swedish aid funds and Vietnam's counterpart contributions specified in the five-year phase, broken down annually.

b. Any changes to the structure or detailed items of the program must be based on agreements between the Ministry of Agriculture and Rural Development and Sida.

c. Each year, the program must prepare its budget revenue and expenditure according to the prescribed content and forms and submit them within the stipulated time frame to Sida and the Ministry of Agriculture and Rural Development (Department of Planning and Strategy, Department of Finance and Accounting).

d. The basis for preparing the budget is the program's planned volume of activities, cost standards approved by Sida and the Ministry of Agriculture and Rural Development, and the actual capacity to implement the program in the year.

e. The program budget is approved annually by the Ministry of Agriculture and Rural Development.

· f. Expenditures for activities must be based on the Activity Plan Outline (APO) and must be approved by the Project Management Board at all levels before implementation.

· g. Village-level budget preparation must be confirmed by the Commune Management Board.

The Commune Management Board compiles the commune budget and village group budgets which are confirmed by the County Management Board before processing to receive funds from the State Treasury or bank.

2. Account Opening:

- Program Board Office

- Open foreign currency accounts at Vietcombank to receive Sida aid funds.

- Open deposit accounts at the State Treasury in Hanoi to receive counterpart funds for the Program Board Office.

a) The Head of the Forestry Project Management Board registers as the account holder, and the Head of the Financial Accounting Department registers as the Chief Accountant for both accounts. Transactions with banks and treasuries are authorized by the Head of the Forestry Project Management Board.

b) Strengthening Capacity for Policy Advice at the Ministry Level Project

This project is led by the Director of the Agricultural Policy Department, who registers as the account holder, and the Chief Accountant of the Ministry registers as the Chief Accountant for the account.

c) Strategic Research:

The account for this project is opened at the bank, with the Chief of the Ministry's Office registering as the account holder, and the Chief Accountant of the Ministry registering as the Chief Accountant for the account.

The Ministry's Office assists the two projects in financial management and accounting organization to ensure the achievement of program goals and plans in accordance with current state regulations and guidance from the Ministry.

d) Sector Coordination:

Receive funds from the Program Board Office account.

e) Provincial, County, and Commune Project Management Boards

Provincial, county, and commune project management boards in the project area open accounts at the provincial or county bank or treasury to receive aid funds from the Program Board Office and local government counterpart funds.

3. Disbursement:

a. Based on the approved annual plan and budget, the Program Office transfers funds to the projects.

b. Transfer of Swedish contribution funds

- The Program Office transfers funds to the provincial project accounts, the Strengthening Capacity for Policy Advice at the Ministry Level project, and the Strategic Research project every three months, including the budgets of counties, communes, and village groups.

Provincial projects transfer funds to counties, including:

+ County project account: county plan portion (every three months)

+ Commune project account at the county level: commune and village group plan portions (every six months)

+ Village groups receive funds directly from the commune

c. Transfer of Vietnamese contribution funds

- The Program Office and the Strengthening Capacity for Policy Advice at the Ministry Level project are funded by the Ministry of Agriculture and Rural Development.

- Provincial, county, commune, and village group projects are funded by the Provincial People's Committee.

4. Confirmation of Aid

Implemented in accordance with Circular No. 22/1999/TT-BTC dated February 26, 1999, issued by the Ministry of Finance, guiding the financial management system for non-reimbursable aid.

The confirmation of aid money and goods is made using Form No. 1 and No. 2. The Head of the Forestry Project Management Board signs the declaration of aid confirmation.

Article 21:

1. Procurement of assets, equipment, materials, basic construction investment, and fixed asset management

a. Procurement of assets, equipment, and materials

b. The program may only procure assets, equipment, and materials within the approved plan under the Agreement and annual plan, and must comply with the current procurement regulations.

c)       For imported equipment and materials: The Office of the Program Management Committee shall report to the Head of the Forestry Project Management Board for implementation.

d)       Equipment and materials within the country: Implementation shall be carried out according to the分级授权，反映在已获有权机关批准的计划中。

2.       The procurement of materials and equipment shall be conducted in accordance with the specific provisions of the May 1996 program document and the Agreement on Rural Development Cooperation between the Government of Vietnam and the Government of Sweden signed on August 22, 1996.

a)       Basic construction investment

b)       According to the program's budget plan, basic construction investment mainly involves rural infrastructure construction.

3.       Based on the approved construction plans and design estimates, the Project Director is responsible for implementing the investment management regulations issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 by the Government, and the tendering regulations issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999 by the Government.

a)       Fixed asset management

b)       Assets purchased or completed through construction that meet the criteria for fixed assets must be organized for management, monitoring, and timely and accurate reflection in terms of quantity, value, and condition.

c)       Throughout its operation, the program shall not transfer, exchange, or sell fixed assets.

As for motorcycles, in addition to the above regulations, even if they are assigned to individuals for use in serving the program, they must be registered under state vehicle plates (blue plates). When job changes occur, they must be immediately recovered and reassigned to the appropriate user.

Article 22: Grading of expenditure management authority

General Principles

a)       Expenditures for all activities of the program funded by Swedish aid and Vietnamese counterpart funds must ensure the following conditions:

b)       In line with the program's objectives as set forth in the approved activity plan.

c)       Within the permitted quota, equal to or less than the approved estimate. If exceeding the estimate, a clear explanation must be provided and approved by the competent authority.

d)       In accordance with current procurement procedures and tendering regulations.

e)       In accordance with the authority and responsibility defined by the grading of management.

1.       There must be valid, legal, and reasonable documentation to substantiate.

a)       Grading of expenditure management authority

b)       For orders for the procurement of equipment and materials and service contracts that meet the above conditions, the project manager may decide on the level of expenditure as follows:

c)       Provincial and ministry-level Project Directors: Below 50 million VND

d)       County-level Project Management Board Heads: Below 10 million VND

Commune-level Project Management Board Heads: Below 5 million VND

Any expenditures exceeding these levels must be reported to the higher-level management authority for review and resolution.

Article 23: Allowance System for Village and Commune Project Management Groups

In order to effectively utilize the project budget for the community in villages and communes, while compensating for the efforts of those participating in the common work of the project at the local level, the Ministry of Agriculture and Rural Development agrees with SIDA's request and promulgates the allowance system for village and commune project management groups as follows:

1. Funding sources

The Swedish aid capital in the annual budget estimate of the village and commune projects has been reviewed by the provincial project management board.

2. Recipients

- Members of the commune project management board, consisting of 3 to 4 people

- Village management group, comprising 3 to 5 people elected by the people

3. Allowance Levels

a) Monthly allowances for members participating in the project from the aforementioned recipient groups and support for stationery costs for recording and monitoring, as well as drinking water during meetings, shall be equivalent to 15% of the total annual budget estimate of the village and commune projects.

b) Specific allowance levels for each recipient group shall be proposed by the Commune People's Committee and approved by the District People's Committee.

Article 24: Accounting, Auditing, and Final Settlement Systems

1. Accounting System

a) At the Office of the Program Board as well as at the provincial project management board and the ministry-level project under the Vietnam-Sweden Mountainous Rural Development Program, separate accounting for the project must be organized. All vouchers, files, and accounting documents must be systematically organized and reflected in the general ledger and detailed ledgers according to current state regulations.

b) In addition to implementing financial reporting requirements as requested by SIDA, the Vietnam-Sweden Mountainous Rural Development Program must also implement regular financial reporting, review annual final settlement reports according to Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance on the issuance of the Administrative and Public Service Accounting System, Circular No. 22/1999/TT/BTC dated February 26, 1999, issued by the Ministry of Finance guiding the state financial management system for non-reimbursable aid, and other specific guidance documents from the Ministry of Agriculture and Rural Development.

Based on the content of project activities and the specific provisions of the accounting system mentioned above, the Program selects appropriate voucher systems and reasonable accounting formats such as "Journal - Ledger". In cases where accounting is conducted on computers, monthly printouts must be made on paper, bound into volumes, and comply with current regulations regarding ledgers.

Implementing the accounting system for strategic research projects and industry coordination projects

- Strategic research projects, which are managed by the Science and Technology Department and Product Quality Department of the Ministry of Agriculture and Rural Development, should be similar to ministry-level projects, with financial management and project accounting conducted at the Ministry of Agriculture and Rural Development's Office.

Industry coordination projects, managed by the International Cooperation Department of the Ministry of Agriculture and Rural Development, receive funds from the Program Office and organize their own accounting to track transactions in the form of report books, and are responsible for settling accounts with the Program Office.

2. Auditing

a) International auditing as required by SIDA is carried out using Swedish aid funds.

b) Domestic independent auditing is carried out using the annual counterpart funding provided by the Government.

c) Audit contracts must be based on tender results.

Suggestions and proposals from audit agencies must be strictly implemented before financial reports are submitted to SIDA and the Ministry of Agriculture and Rural Development.

3. Reporting and Final Settlement of Completed Projects and Asset Transfer

a) Annually and upon completion of the program, projects are responsible for reporting the final settlement of budget revenues and expenditures at their respective units. After obtaining the audit results, the Program Office will compile the annual final settlement and the final settlement of completed projects of the entire program.

b) The Financial and Accounting Department of the Ministry of Agriculture and Rural Development leads the review of annual project final settlements and the overall final settlement of completed projects of the entire program, and submits to the Minister of Agriculture and Rural Development for approval of the final settlement of projects according to current regulations.

After approving the final settlement of completed projects, the Ministry of Agriculture and Rural Development will coordinate with the Ministry of Finance to organize the transfer of assets of the Vietnam-Sweden Mountainous Rural Development Program to the managing units.

Chapter VI

TECHNICAL MANAGEMENT WORK

Article 25: Technical management work at the Program level is carried out by the Program Office. At the project level, it is conducted by specialized departments (agricultural extension, credit, savings, business development, gender balance development, human resource development...) under the direction of the Project Director.

Article 26: Technical management shall be carried out in accordance with the provisions of regulations and rules issued in specific fields such as research and application regulations, business development regulations, and credit-savings operation regulations.

Article 27The requirements for technical development at local levels (projects) must be reflected in the contents of annual activity plans and evaluated through quarterly and annual reports, specialized evaluations, and annual technical review seminars of the Program and projects.

Chapter VII

ADVISORS OF THE PROGRAM

Article 28:

1. The advisory group for the program includes foreign and domestic advisors working on a long-term or short-term basis – this group serves as an assisting unit to the Program Management Board, alongside the Program Management Board Office – the selection of advisors for the program shall be agreed upon between the Consulting Company and the Program Management Board.

a. Responsibilities of the advisory group:

b. Responsible for providing support for all activities as required and within the approved budget in the annual activity plan.

c. Assist the Program Management Board Office and the Executive Director in reporting and monitoring the activities of projects regularly.

2. Support the Program Management Board, the Program Management Board Office, and all projects in their interactions with SIDA to enhance mutual understanding.

a. Costs of the advisory group (direct expenses at the Program Office).

b. The advisory group will be supported administratively, travel-wise, and with translation services by the Program Management Board Office. Advisors will work with one or more task forces.

c. All advisors work at the Program Management Board Office and are specifically assigned to support projects as required.

d. Costs for all advisory activities performed under the consultancy contract between the Ministry of Agriculture and Rural Development and the consulting company SCC – will be determined specifically in the annual plan – this budget will be transferred into the consulting company's account by SIDA to implement the committed contents. Specifically, vehicle travel costs, office supplies, and office service costs will be charged from the Program Office account.

Settlement of consultancy company costs with SIDA must be confirmed by the Program Executive Director.

Article 29: Working relationship between the chief advisor and the program executive director.

- Monthly, the chief advisor and the executive director discuss and agree on the work program for each advisor in the month (including field visits).

- Weekly, the chief advisor and the executive director meet once to review and assess the program's activities, and agree on issues that need resolution.

- The chief advisor will coordinate, report on activity plans, and manage the human resources of the advisory group.

At the end of a term of service and the operational year, advisors must submit reports on the results of their activities.

Article 30.:

1. The professional activities of advisors are closely coordinated with relevant departments of the Program Management Board Office and projects at various operational levels.

2. The work schedule of advisors is notified to projects as stipulated to facilitate and ensure safety for advisors when working with projects.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 31This regulation is promulgated as the basis for implementing the Vietnam-Sweden Rural Development Program. It becomes effective according to the Decision of the Minister of Agriculture and Rural Development.

During implementation, if there are any difficulties, project management boards at all levels must promptly reflect them to the Ministry of Agriculture and Rural Development for study and consideration of amendments to suit the actual conditions of the Program.