Circular No. 46/2008/TT-BTC guiding the management and utilization mechanism of capital sources to implement the Project on Strengthening Schools, Classrooms, and Housing for Teachers during the period of 2008-2012.

CIRCULAR

Guidelines for the management and use of funds to implement the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012

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Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the issuance of the Investment and Construction Management Regulation, Decree No. 12/2000/NĐ-CP dated May 5, 2000 and Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain articles of the Investment and Construction Management Regulation issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government;

Pursuant to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management for construction investment projects, and Decree No. 112/2006/NĐ-CP dated September 29, 2006 of the Government amending and supplementing certain articles of Decree No. 16/2005/NĐ-CP dated February 7, 2005;

Pursuant to Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on the management of construction investment costs;

Pursuant to Decision No. 20/2008/QĐ-TTg dated February 1, 2008 of the Prime Minister approving the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012;

The Ministry of Finance issues guidelines for the management and use of funds to implement the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012 as follows:

Part I

GENERAL PROVISIONS

1. These Circulars apply to investment projects implementing the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012 according to Decision No. 20/2008/QĐ-TTg dated February 1, 2008 of the Prime Minister.

2. The sources of funds for implementing the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012 include:

- Central government support funds from government bonds decided by the Prime Minister to be allocated to localities for the entire period from 2008 to 2012 and annually.

- Local budget funds:

In addition to central government support funds from government bonds, localities must allocate at least 35% of their annual investment capital for education and dedicate no less than 20% of their total annual revenue from lottery tickets to implement the Project.

- Funds raised through voluntary contributions from businesses of all economic sectors, international organizations, and charitable organizations both domestically and internationally.

3. The investment funds for implementing the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012 shall only be used for the objectives stated in Decision No. 20/2008/QĐ-TTg dated February 1, 2008 of the Prime Minister, and not for other purposes. The project owner shall manage and use these funds economically, effectively, in accordance with their intended purpose, and in compliance with current laws.

4. The annual allocation of funds for each project is based on the demand for payment registration according to the project's implementation progress and the ability to mobilize government bond funds, local budget funds, and raised contribution funds. The demand for payment registration for each project annually serves as the basis for fund mobilization, allocation, and progress evaluation.

5. During the implementation of the Project, any related mechanisms and policies that are amended or supplemented will be implemented according to current regulations.

Part II

SPECIFIC PROVISIONS

I. REGISTRATION, PLANNING, ALLOCATION, ASSIGNMENT, AND AUDIT OF FUNDS

1. Registration of the Plan for Funds from 2008 to 2012:

Based on the Prime Minister's decision on allocating funds for localities to implement the Project on Strengthening Schools, Classrooms, and Teachers' Housing from 2008 to 2012; the People's Committee of provinces and centrally-administered cities (hereinafter referred to as the Provincial People's Committee) registers the plan for funds from 2008 to 2012. This includes allocating the list of projects and the funding for each project from central government support funds from government bonds, local budget funds, and raised contribution funds (as shown in Table 01 attached), and submitting it to the Ministry of Education and Training, the Ministry of Finance, and the Ministry of Planning and Investment for monitoring and management.

2. Preparation, Assignment, and Audit of Annual Fund Plans:

2.1 Preparation of Annual Fund Plans:

Annually, during the time of preparing the state budget, based on the registered plan for funds from 2008 to 2012 by the locality, and the implementation status of projects reported by the project owners; the Department of Education and Training collaborates with the Department of Finance and the Department of Planning and Investment to prepare the annual investment fund plan and propose the allocation for each project, report to the Provincial People's Committee; based on this, the Provincial People's Committee prepares the annual fund plan for each project (including specific proposals for central government support funds from government bonds, local budget funds, and raised contribution funds) and submits it to the Ministry of Education and Training, the Ministry of Finance, and the Ministry of Planning and Investment (as shown in Table 02 attached). The Ministry of Education and Training, the Ministry of Finance, and the Ministry of Planning and Investment will consolidate the government bond funds and submit them to the Prime Minister for decision-making and assignment to localities.

For the portion of local budget funds, the Provincial People's Committee reports to the People's Council of the province or city in accordance with current regulations.

The annual registration plan for government bond funds should ensure compatibility with the total amount of funds; it should align with the implementation status and the ability to disburse funds for projects, avoiding accumulation of raised funds and wastage for the State.

2.2 Assignment and Audit of Annual Funds:

2.2.1 Assignment of Annual Funds:

Based on the Prime Minister's decision on assigning annual funds, combined with local budget funds and raised contribution funds; the Provincial People's Committee assigns the fund plan to the project owner for implementation.

The allocation of funds for projects is carried out on the principle of combining various sources of funds; if a project is only assigned one type of fund source, the Provincial People's Committee is responsible for ensuring sufficient funding for the projects in line with the implementation schedule to guarantee the completion of the Project's objectives.

2.2.2 Audit of Investment Fund Allocation:

a/ For central government support funds from government bonds:

Based on the decision on assigning the annual fund plan by the Provincial People's Committee; the Ministry of Finance delegates the Department of Finance to review the investment fund allocation and provide comments to the Provincial People's Committee in cases where the allocation does not comply with regulations.

The project investors shall submit to the Department of Finance initial investment procedures (these documents shall only be submitted once until the end of the investment project, except in cases where supplementation or adjustment is required), including:

+ For projects implementing the preparatory phase: approval document for the budget estimate for preparatory work expenses.

+ For projects implementing investment: decision approving the investment project construction (or economic and technical report for projects that only prepare an economic and technical report), adjustment decisions on the project (if any).

The Department of Finance shall notify the State Treasury of projects that have completed initial investment procedures to serve as the basis for controlling payments; simultaneously, it shall compile and report to the Ministry of Finance on the results of reviewing the allocation of funds for monitoring and management.

b/ For local government budget funds and mobilized funds, they shall be implemented according to the current regulations corresponding to each source of funds.

3. Adjustment of annual investment capital plan:

- During the planning year, the People's Committee of the province shall direct relevant agencies to review the progress and investment objectives of projects within the year to adjust the plan within the scope of the annual total capital allocated. The provincial People's Committee's decision to adjust the annual plan shall be sent to the Ministry of Education and Training, the Ministry of Finance, and the Ministry of Planning and Investment for tracking.

- The deadline for adjusting the annual plan ends no later than December 31 of the planning year.

- In cases where the allocated Government bond capital for the year is not fully utilized, it may be registered in the following year's capital plan for implementation and payment. In cases where the annual plan is exceeded, advance funding from the following year can be used for payment.

II. TEMPORARY LOANS, PAYMENTS, AND RECOVERY OF TEMPORARY LOANS FOR PROJECT CAPITAL

Implementation shall follow the current state regulations on financial management of investment, as stipulated in Circular No. 27/2007/TT-BTC dated April 3, 2007, issued by the Ministry of Finance, guiding the management and settlement of investment capital and operational capital with investment characteristics from state budget sources, and Circular No. 130/2007/TT-BTC dated November 2, 2007, issued by the Ministry of Finance, amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007, issued by the Ministry of Finance, guiding the management and settlement of investment capital and operational capital with investment characteristics from state budget sources.

III. MANAGEMENT OF MOBILIZED CONTRIBUTION FUNDS

Mobilized contribution funds from enterprises of all economic sectors, international organizations, domestic and foreign charitable organizations (referred to collectively as Donors) shall be regulated as follows:

1. For directly mobilized contributions to localities:

a) In cases of specific contributions:

- When Donors contribute money to build a school or classroom: Donors shall transfer the money directly into the account opened by the Department of Finance at the State Treasury. The Department of Finance shall notify the project investor to implement..

- When Donors contribute in kind (including materials, equipment, learning supplies, labor days) to build a complete school or classroom:

The project investor, Donor, contractor (if any), and related competent authorities (Department of Finance, Department of Construction) shall organize acceptance and valuation of material, equipment, and learning supplies (if applicable) or the project (if the project is completed) according to national standards and unit prices to hand over to the project investor for use. The project investor (Project Management Board) shall report to the Department of Finance to process the recording of local government revenue and expenditure for the project. The Department of Finance shall aggregate and report to the Steering Committee at various levels for monitoring and management.

b) In cases of general contributions to the local solidification project without specific addresses:

- For monetary contributions: Donors shall transfer directly into the account opened by the Department of Finance at the State Treasury of the province/city (Donors may deposit money into the State Treasury of the district/county for convenience; the State Treasury of the district/county shall be responsible for processing the transfer of funds to the account of the Department of Finance at the State Treasury of the province/city). The Department of Finance shall aggregate and present to the People's Committee of the province to organize unified distribution and use within the locality according to the annual plan and approved projects.

- For contributions in kind: The Department of Finance shall act on behalf of the local People's Committee to receive and manage contributions in kind from Donors, aggregate proposals, and report to the People's Committee of the province to organize unified distribution and use throughout the province according to the annual plan and approved projects.

The management and use of the provincial mobilization fund (including materials, equipment, cash, labor; or complete classrooms/schools) shall be carried out in accordance with the State Budget Law and the provisions of this Circular. The local Project Steering Committee must regularly report on the receipt and use of mobilized contributions to the Central Steering Committee and the Ministry of Finance for compilation and reporting to the Prime Minister.

2. For contributions from Donors to the central level:

Donors shall transfer money directly into accounts opened at State Treasuries nationwide. Annual contributions from Donors shall be supplemented together with Government bonds to support according to the plan assigned by the Prime Minister to localities.

Quarterly, the State Treasury shall aggregate and report to the Ministry of Finance to report to the Prime Minister on the amount of contributions made by Donors to the project.

3. Specifically for investment projects using voluntary contribution funds from Donors (enterprises of all economic sectors, international organizations, domestic and foreign charitable organizations), if there are different management and settlement regulations for capital compared to the current regulatory documents of the competent authority, then these regulations of the Donors shall be followed.

IV. SETTLEMENT

1. Annual Capital Settlement:

Implementation shall follow Circular No. 53/2005/TT-BTC dated June 23, 2005, issued by the Ministry of Finance, guiding the preparation and examination of annual capital investment settlement reports for basic construction projects funded by the state budget.

- Investors implement annual settlement of investment capital according to the current regime on state budget investment capital but settle separately the capital from government bonds.

- Provincial People's Committees responsible for managing and implementing investment projects with government bond capital shall consolidate and settle separately the investment capital from government bonds with the Ministry of Finance (not consolidated into state budget capital).

- State Treasury organizes accounting and monitoring separately the government bond capital, settling annually with the financial authority as prescribed.

2. Settlement of completed project investment capital:

The settlement of investment capital for completed projects shall be carried out in accordance with the current regulations of the State (Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance guiding the settlement of completed projects funded by the state budget; Circular No. 98/2007/TT-BTC dated August 9, 2007 amending and supplementing certain points of Circular No. 33/2007/TT-BTC guiding the settlement of completed projects funded by the state budget).

V. REPORTING AND INSPECTION

1. Reporting System:

- For provincial People's Committees:

Monthly, quarterly, and annually, provincial People's Committees report regularly on the implementation and disbursement of project funds to the Ministry of Education and Training, the Ministry of Planning and Investment, and the Ministry of Finance (according to Form No. 03 attached).

Reporting deadlines:

+ Monthly reports: submitted before the 10th day of each month;

+ Quarterly reports: submitted before the 15th day of the first month of each quarter;

+ Annual reports: submitted before January 20th each year.

- For State Treasury:

+ Implement reporting procedures (according to Form No. 04 attached).

+ Monthly, quarterly, and annually, provincial State Treasuries report to the Department of Finance on detailed payment situations according to projects managed by localities for the Department of Finance to compile and report to the provincial People's Committee; simultaneously report to the Ministry of Finance, the provincial People's Committee, and the State Treasury on detailed payment situations according to projects and total payment amounts for projects managed by localities.

State Treasury reports to the Ministry of Finance on detailed payment situations according to projects and total payment amounts (by province) for projects managed by localities.

- Regularly every six months, annually, or at any time, the Ministry of Finance and the Ministry of Planning and Investment will aggregate and report to the Prime Minister according to Decision No. 20/2008/QĐ-TTg dated February 1, 2008 of the Prime Minister.

2. Inspection schedule:

- The Ministry of Education and Training coordinates with relevant ministries and sectors to organize regular or sudden inspections of projects regarding the implementation of investment plans, payment situations, capital usage, and compliance with state financial development policies and regulations.

- Provincial People's Committees and investors assigned to manage and implement investment projects with government bond capital have the responsibility to strengthen management and inspection of project progress, volume, quality, and capital usage.

VI. RESPONSIBILITIES OF RELEVANT AUTHORITIES

1. For Ministries and provincial People's Committees:

Implement according to the contents of Decision No. 20/2008/QĐ-TTg dated February 1, 2008 of the Prime Minister approving the Project to Strengthen School and Classroom Buildings and Teachers' Housing for the period 2008-2012.

2. For investors:

- Fulfill functions and tasks as prescribed. Receive and use capital for the intended purpose, correct target, economically and effectively. Adhere to legal regulations on financial management systems for development investment.

- Conduct quantity acceptance, prepare payment files, and request payment from contractors according to the time stipulated in the contract.

- Bear full responsibility for the accuracy and legality of the executed volume, norms, unit prices, budgets for various works, project quality, and proposed payment value; ensure the accuracy, honesty, and legality of data and documents in the provided files for the State Treasury and relevant state agencies.

- Report promptly and fully as required to the investment decision-making agency and related state agencies; provide complete files and information as required for the State Treasury and financial authorities to serve management and capital payment; accept inspection by financial authorities and the investment decision-making agency on capital investment usage and compliance with state financial development policies and regulations.

- Implement accounting for the investor entity; settle investment capital according to current regulations.

- Request payment when conditions are met and request the State Treasury to respond and explain unsatisfactory aspects in capital payment.

3. For financial authorities:

- Ensure sufficient capital according to the Ministry of Finance's regulations for the State Treasury to pay for projects; implement capital settlement according to the State Budget Law; coordinate with functional agencies to guide and inspect investors, State Treasury, and contractors on compliance with financial development policies and regulations, capital management and usage, and payment situations to address violations, issue decisions to recover improperly disbursed funds; have the right to request investors and the State Treasury to provide necessary documents and information for state management of financial development, including documents for project assessment and annual investment plan allocation, reports on plan implementation and investment capital usage according to reporting regulations, and documents for finalizing capital settlement audits as prescribed.

- Review capital allocation for projects.

4. For State Treasury:

- Guide investors to open accounts for advance payments and capital settlements.

- Monitor and settle capital promptly and fully for projects when conditions are met and within the prescribed timeframe.

- Provide clear written opinions to investors regarding reduced or refused payments, and answer investors' queries about capital settlement.

- Urge investors to settle debts completely when projects are settled and accounts are closed.

- Implement the information reporting and settlement system for the use of investment capital and operational funds with an investment nature from the State budget capital in accordance with the provisions of the State Budget Law and the guidance of the Ministry of Finance.

- Have the right to request the project owner to provide files, documents, and information as prescribed to serve the work of capital disbursement control.

- Organize the work of capital control and disbursement according to a unified business process, simplifying administrative procedures but ensuring strict capital management, timely, full, and convenient disbursements for the project owner.

- At the end of the plan year, confirm the amount disbursed in that year, cumulatively the amount disbursed from the start of construction to the end of the state budget fiscal year for each project, comment on the compliance with management systems, quota unit prices, and other policies as prescribed.

Part III

IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette. Any issues encountered during implementation should be promptly reported to the Ministry of Finance for coordination with relevant units to study and supplement or amend./.