Consolidated Document number 5158/VBHN-BLDTBXH Circular Jointly Issued: Guidelines for Financial Management and Implementation of the Project "Strengthening the Social Assistance System in Vietnam" Financed by the World Bank

MINISTRY OF LABOR - INVALIDS AND SOCIAL AFFAIRS --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 5158/VBHN-BLDTBXH	Hanoi, December 8, 2017

JOINT CIRCULAR

GUIDELINES ON THE FINANCIAL MANAGEMENT REGIME AND IMPLEMENTATION OF THE PROJECT "STRENGTHENING THE SOCIAL ASSISTANCE SYSTEM IN VIETNAM" FUNDED BY THE WORLD BANK LOAN

Circular Jointly Issued No. 26/2014/TTLT-BLDTBXH-BTC-BGDĐT dated September 22, 2014 by the Minister of Labor, Invalids and Social Affairs, the Minister of Finance, and the Minister of Education and Training guiding the financial management regime and implementation of the Project "Strengthening the Social Assistance System in Vietnam" funded by the World Bank loan, which took effect from November 6, 2014, was amended and supplemented by:

Circular No. 21/2017/TT-BLDTBXH dated August 7, 2017 by the Minister of Labor, Invalids and Social Affairs amending and supplementing some articles of Circular Jointly Issued No. 26/2014/TTLT-BLDTBXH-BTC-BGDĐT guiding the financial management regime and implementation of the Project "Strengthening the Social Assistance System in Vietnam" using World Bank loan funds, which took effect from September 22, 2017.

Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

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

Pursuant to Decree No. 32/2008/NĐ-CP dated March 19, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Education and Training;

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

Pursuant to Decree No. 79/2010/NĐ-CP dated July 14, 2010 of the Government on public debt management operations;

Pursuant to Decree No. 38/2013/NĐ-CP dated April 23, 2013 of the Government on management and use of official development assistance (ODA) and preferential loans from donors;

Pursuant to the Financing Agreement No. 5354-VN signed on April 24, 2014 between the Government of the Socialist Republic of Vietnam and the International Development Association; Pursuant to Decision No. 1617/QĐ-TTg dated September 18, 2013 of the Prime Minister approving the list of projects "Strengthening the Social Assistance System in Vietnam" funded by the World Bank;

Pursuant to the opinion of Deputy Prime Minister Vu Duc Dam at Official Letter No. 2484/VPCP-HTQT dated April 11, 2014 of the Government Office regarding the proposal to sign the Financing Agreement for the Project "Strengthening the Social Assistance System in Vietnam" funded by the World Bank (WB);

The Minister of Labor, Invalids and Social Affairs, the Minister of Finance, and the Minister of Education and Training issue this Circular jointly guiding the financial management regime and implementation of the Project "Strengthening the Social Assistance System in Vietnam",[1]

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular guides the financial management regime and organization of implementation for the Project "Strengthening the Social Assistance System in Vietnam".

Article 2. This Circular applies to the provinces participating in the project: Ha Giang, Quang Nam, Lam Dong, Tra Vinh (hereinafter referred to as the four beneficiary provinces) and agencies, organizations, and individuals assigned responsibilities or related to the management and use of official development assistance (ODA) funds from the International Development Association (IDA) under the World Bank (WB) and domestic counterpart funds for the Project "Strengthening the Social Assistance System in Vietnam" funded by the World Bank.

Article 2. Terms Used in This Circular

Clause 1. Project: is the Project "Strengthening the Social Assistance System in Vietnam" approved by the Prime Minister in Decision No. 1617/QĐ-TTg dated September 18, 2013 on approving the list of projects "Strengthening the Social Assistance System in Vietnam" funded by the World Bank.

Clause 2. Components of the Project include:

Point a) Component 1: Strengthening the social assistance system and poverty reduction;

Point b) Component 2: Launching the integrated social assistance program, including:

- Sub-component 2.1: Implementing cash transfers to additional beneficiaries of the project;

- Sub-component 2.2: Paying postal service fees for the participating provinces.

Point c) Component 3: Project Management.

Clause 3. The Steering Committee of the Project: established by Decision No. 1893/QĐ-LĐTBXH dated December 5, 2013 of the Minister of Labor, Invalids and Social Affairs, with responsibilities and authorities stipulated in the establishment decision.

Clause 4. The Central Project Management Board: is the unit established by Decision No. 1567/QĐ-LĐTBXH dated October 11, 2013 of the Minister of Labor, Invalids and Social Affairs, with responsibilities and authorities stipulated in the establishment decision.

Clause 5. The Provincial Steering Committee of the Project: established by the Chairman's Decision of the People's Committees of the provinces implementing the Project, with responsibilities and authorities stipulated in the establishment decision.

Clause 6. The Provincial Project Management Board: is the unit established by the Chairman's Decision of the People's Committees of the provinces implementing the Project, with responsibilities and authorities stipulated in the establishment decision.

Clause 7. The Project Service Bank: is the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

Clause 8. Additional Beneficiaries of the Project include:

Point a) Pregnant women in poor households;

Point b) Children aged 0 to under 3 years old in poor households;

Point c) Children aged 3 to 15 years old (understood as not yet 16 years old) in poor households who are currently not attending school.

Clause 9. The Integrated Social Assistance Package for Households Includes:

Point a) State budget funds:

- Regular social assistance for social welfare beneficiaries according to Decree No. 67/2007/NĐ-CP dated April 13, 2007 of the Prime Minister on policies for assisting social welfare beneficiaries (Decree No. 67/2007/NĐ-CP) and Decree No. 13/2010/NĐ-CP dated February 27, 2010 of the Prime Minister amending and supplementing certain provisions of Decree No. 67/2007/NĐ-CP dated April 13, 2007 of the Prime Minister on policies for assisting social welfare beneficiaries (Decree No. 13/2010/NĐ-CP);

- Electricity subsidies for poor households according to Decision No. 28/2014/QĐ-TTg dated April 7, 2014 of the Prime Minister on the structure of retail electricity prices (Decision No. 28/2014/QĐ-TTg);

- Educational support costs for children currently attending school according to Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government on exemption, reduction of tuition fees, and support for educational expenses and mechanisms for collecting and using tuition fees for educational institutions within the national education system from the academic year 2010-2011 to the academic year 2014-2015 (Decree No. 49/2010/NĐ-CP), and Decree No. 74/2013/NĐ-CP dated July 15, 2013 of the Government amending and supplementing certain provisions of Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government on exemption, reduction of tuition fees, and support for educational expenses and mechanisms for collecting and using tuition fees for educational institutions within the national education system from the academic year 2010-2011 to the academic year 2014-2015 (Decree No. 74/2013/NĐ-CP);

||| - Provide food and accommodation support for high school students from ethnic minorities and Han ethnic students from poor households residing in communes and villages with particularly difficult socio-economic conditions as stipulated in Decision No. 12/2013/QĐ-TTg dated January 24, 2013, of the Government on policies to support high school students in areas with particularly difficult socio-economic conditions (Decision No. 12/2013/QĐ-TTg).

||| b) IDA loan capital (benefiting from the project):

||| - Support for prenatal healthcare for pregnant women from poor households: 70,000 VND/month (based on actual months of pregnancy and not exceeding 9 months per pregnancy);

||| - Children aged 0 to under 3 years old from poor households: 70,000 VND/month (12 months/year);

||| - Support for children aged 3 to 15 years old from poor households who are currently not attending school to encourage them to attend school: 70,000 VND/month/child (9 months/year);

||| The consolidated social assistance package for households will be piloted in 4 provinces benefiting from the project starting from July 1, 2015 until June 30, 2018.

10.[2] ||| The recipient of funds: is the legally authorized representative of the household to receive the consolidated social assistance package, including the following: (a) the representative of the household registered to receive funds; (b) the person authorized by the representative of the household registered to receive funds; (c) the person named in the list to receive on behalf of the household confirmed by the People's Committee of the commune, but not being an officer or staff member of the payment agency.

||| Article 3. Project Investment Capital

||| The total capital of the Project is equivalent to 62.5 million USD, including:

||| 1. IDA loan capital (World Bank): 39.1 million SDR equivalent to 60 million USD (according to the exchange rate set by the donor at the time of negotiation), of which:

||| a) Loan capital provided through budget support: 16.29 million SDR equivalent to 25 million USD;

||| b) Loan capital provided through project support: 22.81 million SDR equivalent to 35 million USD.

||| 2. Domestic counterpart capital: 2.5 million USD equivalent to 52.59 billion VND.

||| Article 4. Domestic Financial Mechanism

||| 1. For IDA loan capital:

||| a) Loan capital provided through budget support: The central government budget supplements the local government budgets of participating provinces;

||| b) Loan capital provided through project support: The central government allocates within the state budget estimate of the Ministry of Labor, Invalids and Social Affairs for activities implemented by the Central Project Management Board.

||| 2. For domestic counterpart capital:

||| a) Counterpart capital allocated for activities of the Central Project Management Board is arranged within the budget estimate of the Ministry of Labor, Invalids and Social Affairs by the central government;

||| b) Counterpart capital allocated for activities of the Provincial Project Management Board is arranged within the budget estimate of the Provincial Project Management Board by the local government.

||| Article 5. Management Principles

||| 1. The "Strengthening Vietnam’s Social Assistance System" Project is a project funded by administrative and public service capital, managed according to current regulations on managing administrative and public service capital and related policies.

||| 2. The IDA loan capital for the Project is a source of state budget capital, managed according to state budget capital management regulations and donor regulations.

||| 3. Budget accounting method:

||| a) For loan capital provided through budget support:

||| - Based on receipt vouchers or credit notifications from the State Bank Branch, the Treasury records state budget revenue;

||| - When units withdraw their budget estimates from the Treasury, the Treasury records state budget expenditure.

||| b) For loan capital provided through project support: The Ministry of Finance implements recording of state budget revenue and disbursement to the Ministry of Labor, Invalids and Social Affairs according to Circular No. 107/2008/TT-BTC dated November 18, 2008, of the Ministry of Finance guiding additional points on state budget management and operation.

Article 6. Tasks of Relevant Authorities

1. Ministry of Labor, Invalids and Social Affairs:

a) Approve plans, budgets, final accounts for the year, and final accounts for completed projects as prescribed;

b) Allocate sufficient and timely counterpart funds to the Central Project Management Board.

2. Central Project Management Board:

a) Implement loan withdrawal and disbursement from loan sources for activities under Component 1, Sub-component 2.2, and Component 3; manage and disburse counterpart funds from the central budget allocated in the Ministry of Labor, Invalids and Social Affairs' budget for project activities;

b) Prepare and consolidate project activity plans and financial plans, report on project operation status, and perform tasks as specified in the Regulation on Organization and Operation of the Central Project Management Board;

c) Provide information about beneficiaries according to Decision No. 12/2013/QĐ-TTg, Decree No. 49/2010/NĐ-CP, and Decree No. 74/2013/NĐ-CP at four beneficiary provinces to the Ministry of Education and Training (MOET) after the end of each academic year during the implementation period of the consolidated social assistance package.

3. Ministry of Finance:

a) Carry out procedures for withdrawing foreign loans and transferring funds from the project's special account into the State Budget (for the portion of budget support); ensure timely payment of funds to project beneficiaries;

b) Record state budget expenditures for loans according to current regulations.

4. People's Committees of participating provinces:

a) Approve or direct specialized agencies of the province to review and approve plans, budgets, final accounts for the year, and final accounts for completed projects as prescribed;

b) Allocate sufficient and timely counterpart funds to the Provincial Project Management Board.

5. Provincial Project Management Board:

a) Manage the use of counterpart funds from the provincial budget to implement Component 3 of the project;

b)[3] Prepare and consolidate project activity plans and financial plans, report on project operation status in the province quarterly to the Central Project Management Board, and perform tasks as specified in the Regulation on Organization and Operation of the Provincial Project Management Board;

c) Provide information about beneficiaries according to Decision No. 12/2013/QĐ-TTg, Decree No. 49/2010/NĐ-CP, and Decree No. 74/2013/NĐ-CP to the Department of Education and Training after the end of each academic year during the implementation period of the consolidated social assistance package.

6. Department of Finance:

a) Based on revenue and expenditure vouchers of the Ministry of Finance, record into the provincial budget the loan funds supported by the central budget with specific purposes for the provincial budget to implement the project in the province; ensure timely payment of funds to beneficiaries;

b) Review, consolidate, and submit to the People's Committee of the province for consideration and approval of annual final accounts and final accounts for completed projects for assigned funds to implement the project in the province.

7. Department of Education and Training: prepare, update, and transfer lists of students benefiting from Decision No. 12/2013/QĐ-TTg approved starting from the 2015-2016 academic year to the Provincial Project Management Board.

8. Vietnam Post Corporation: develop payment procedures, inspection, and regular reporting systems accepted by the Ministry of Labor, Invalids and Social Affairs to ensure correct payment to the right recipients, in the correct amount, at the right time, and convenience for beneficiaries.

9.[4] Provincial Post Office, District Post Office: are responsible for implementing as stipulated in Clause 2, Article 15 of this Circular. The District Post Office must make payments to the correct recipients according to the list provided by the District Labor, Invalids and Social Affairs Office; quarterly and annually, settle accounts with the District Labor, Invalids and Social Affairs Office regarding the number of recipients who have received and not yet received benefits. In case of loss of money during the implementation of payment activities, incorrect payment to non-beneficiaries, or incorrect amounts according to the payment list, the District Post Office is responsible for recovering and compensating the beneficiaries or the contracting agency and must bear legal responsibility.

10. Labor, Invalids and Social Affairs Office:

a) Prepare overall funding plans and annual state budget estimates for the consolidated social assistance package for households as prescribed in Clause 1, Article 15 of this Circular within the district and send to the Provincial Project Management Board;

b)[5] Prepare monthly payment lists according to the stipulated support levels; implement budget withdrawals for the social assistance package within the allocated budget; at the end of the fiscal year, return unspent funds to the budget. Transfer funds and provide monthly payment lists to the District Post Office as stipulated in Point b, Clause 2, Article 15 of this Circular.

c)[6] Advise the Chairman of the District People's Committee to issue decisions approving village and commune volunteer lists. Manage village and commune volunteer activities according to the management and reporting process of the village and commune volunteer network of the "Strengthening the Social Assistance System in Vietnam" Project issued in Decision No. 76/QĐ-BQLDA dated June 22, 2016 by the Director of the "Strengthening the Social Assistance System in Vietnam" Project Management Board and the activity plan of village and commune volunteers approved by the Central Project Management Board. Monthly, prepare and transfer village and commune volunteer lists to the Post Office for payment, and be responsible for managing and monitoring payment files for village and commune volunteers (copies) transferred by the Post Office.

11. National Treasury System: monitor budget withdrawals for project activities and record state budget expenditures according to current regulations.

12. Bank serving the Project:

a) Process IDA fund settlement procedures according to the requirements of the Central Project Management Board after the National Treasury has reviewed the payment documents; guide and provide the project with all necessary information to conduct domestic and international transactions through the banking system;

b) Regularly send account statements and notify interest accruals, bank service fees, interest and fee differences, opening and closing balances to account holders monthly.

c) Within two working days from the date of receiving notification that funds have been credited to the account, notify the account holder.

d) During the course of implementation, enjoy banking service fees according to current regulations on collecting fees for bank payment services. These service fees are included in the total investment amount of the Project.

Chapter II

ESTABLISHING, ALLOCATING, MANAGING, USING AND SETTLING FUNDS

Article 7. Budget Preparation

1. Establish the budget estimate for the consolidated social assistance package implemented with state budget funds for households as stipulated in Clause 1, Article 15 of this Circular:

a) Annually, at the time of establishing the state budget estimate (from 2014, establish the budget estimate for the last six months of 2015), the Department of Labor, Invalids and Social Affairs shall base on the number of beneficiaries taken from the MIS database, the support level specified in Clause 1, Article 15 of this Circular, and the implementation period within the year; prepare the budget estimate for implementing the consolidated social assistance package in the district (clearly stating domestic and foreign funds) and consolidate it in the regular expenditure budget of the agency, submit it to the District Finance and Budget Office for review and consolidation to be submitted to the competent authority for approval in accordance with the State Budget Law and guiding documents; simultaneously send it to the Provincial Project Management Board for consolidation and submission to the Central Project Management Board.

b) Agencies and units responsible for the budget estimates for implementing policies stipulated in Point a, Clause 1, Article 15 of this Circular, in 2014, will only prepare the budget estimate for the first six months of 2015 to pay out policies according to current regulations. The budget estimate for implementing these policies for the last six months of 2015 and subsequent years until the end of the Program shall be prepared by the Department of Labor, Invalids and Social Affairs in accordance with Point a, Clause 1 of this Article.

2. Establish the plan for loan capital under the project support method to implement project activities:

Annually, at the time of establishing the state budget estimate, the Central Project Management Board shall prepare the annual capital plan for activities to be implemented at the central level and submit it to the Ministry of Labor, Invalids and Social Affairs (Planning and Finance Department) for consolidation in the Ministry's budget estimate, to be sent to the Ministry of Finance for approval by the competent authority.

3. Establish the counterpart fund estimate:

Annually, at the time of establishing the state budget estimate, the Provincial Project Management Board shall prepare the counterpart fund estimate for activities of the Provincial Project Management Board and submit it to the Department of Finance for approval by the competent authority. The Central Project Management Board shall prepare the counterpart fund estimate for activities of the Central Project Management Board and submit it to the Ministry of Labor, Invalids and Social Affairs (Planning and Finance Department) for consolidation in the Ministry's budget estimate, to be sent to the Ministry of Finance for approval by the competent authority.

Article 8. Allocation and Transfer of Budget Estimates

The allocation and transfer of budget estimates for implementation shall be carried out in accordance with the State Budget Law and guiding documents.

Article 9. Opening Accounts

1. For the portion of loan capital under the budget support method:

a) The Ministry of Finance shall open a special account at the State Bank of Vietnam Branch to receive loan capital, then proceed with the procedures to sell foreign currency to the State Bank of Vietnam to transfer funds into the state budget to implement Sub-component 2.1 of the Project;

b) Departments of Labor, Invalids and Social Affairs participating in the Project shall open accounts at the State Treasury where transactions take place and withdraw budget estimates to implement activities of Sub-component 2.1 of the Project.

2. For the portion of loan capital under the project support method:

a) The Central Project Management Board shall open a provisional advance account at the Project Service Bank to receive loan capital for implementing activities under Components 1 and 3 of the Project. Interest generated on the provisional advance account shall be recorded separately and during the implementation of the Project, it may only be used to pay banking service fees of the Project Service Bank. Before February 15 each year, the Central Project Management Board shall report to the Ministry of Labor, Invalids and Social Affairs on the use of interest generated on the provisional advance account balance of the previous year in accordance with Circular No. 218/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on financial management for programs and projects using official development assistance (ODA) and concessional loans from foreign donors (Circular No. 218/2013/TT-BTC);

b) Provincial Project Management Boards shall open transaction accounts at the Project Service Bank to receive provisional advances for implementing Project activities in their provinces from the Central Project Management Board.

3. The Central Project Management Board and provincial boards shall open accounts at the State Treasury where transactions take place and withdraw budget estimates to settle activity expenses of the Project Management Board.

4. Procedures for opening accounts at the Project Service Bank and State Treasuries at all levels must comply with current regulations.

Article 10. Exchange Rates for Payment and Accounting

1. The accounting exchange rate for the state budget capital under the grant support method for Sub-component 2.1 shall apply the buying rate of the State Bank of Vietnam's Trading Department at the time of selling foreign currency.

2. The exchange rates for payment and accounting for expenditures from the Advance Account shall apply the buying rate of the Project Service Bank at the time of payment.

Article 11. Contents and Budget Limits of the Project

1. For the loan capital under the project support method:

a) The contents and budget limits for the expenditure of IDA loan funds and counterpart funds applied to the Project shall be implemented according to Circular No. 219/2009/TT-BTC dated November 19, 2009 of the Ministry of Finance on certain expenditure budget limits applicable to projects and programs using ODA funds (Circular No. 219/2009/TT-BTC); Circular No. 192/2011/TT-BTC dated November 19, 2011 amending and supplementing some articles of Circular No. 219/2009/TT-BTC and current regulations applicable to public institutions;

b) Payment for postal service fees: The maximum service fee rate is 3% of the total payment expenses for the beneficiaries specified in point c, Clause 1, Article 11 and Clause 1, Article 15 of this Circular. Based on agreements with the payment agency, Vietnam Post Corporation, the Ministry of Labor, Invalids and Social Affairs will specify the service fee rate for each province participating in the Project according to the number of beneficiaries, total payment expenses, and geographical conditions of each province;

c) Payment for social workers in village, commune, and ward communities: 100,000 VND per person per month. The number of social workers in village, commune, and ward communities shall be decided by the Director of the Department of Labor, Invalids and Social Affairs upon approval by the Chairman of the People's Committee at the district level. The total number of social workers shall not exceed the total number of villages, communes, and wards, and each village, commune, or ward may have only one social worker. One social worker may manage up to two villages, communes, or wards.

2. For the loan capital under the budget support method:

a) Support for health care for pregnant women in poor households:

- Support amount: 70,000 VND per month per person;

- Duration of support: Actual pregnancy period during the implementation of the Project, not exceeding nine months per pregnancy. In cases where pregnancy was ongoing as of July 1, 2015, support shall begin from July 1, 2015 until childbirth. If pregnancy continues until June 30, 2018 without childbirth, support shall end on June 30, 2018 (the termination date of the consolidated social assistance package as stipulated in point b, Clause 9, Article 2 of this Circular).

b) Support for children aged 0 to under 3 years old in poor households:

- Support amount: 70,000 VND per month per child, duration of support is 12 months per year during the Project implementation period;

- Duration of support: Actual number of months, starting from July 1, 2015 until reaching three years of age. If a child receiving support has not reached three years of age by June 30, 2018, support shall end on June 30, 2018.

c) Support for children aged 3 to 15 years old in poor households who are not attending school:

- Support amount: 70,000 VND per month per child;

- Duration of support: Maximum nine months per year (from January to May and from September to December during the Project implementation period). The actual start date of support is from July 1, 2015 until under 16 years of age. If a child receiving support has not reached 16 years of age by June 30, 2018, support shall end on June 30, 2018;

- If a child returns to school, continued support shall be provided in the form of educational expense support as stipulated in point a, Clause 1, Article 15 of this Circular.

d) The commencement date for receiving assistance for the aforementioned beneficiaries shall be from the date of registration application according to the form attached to this Circular.

Article 12. Expenditure Control

1. All expenditures of the Project shall be subject to advance expenditure control.

2. The controlling authority for expenditures: The State Treasury at the level where the Project Management Board has opened accounts shall implement the control over payment documents of the Project.

3. The procedures and documentation for expenditure control shall be carried out in accordance with current regulations.

Article 13. Procedures for Drawing Down Funds and Managing Drawdowns

1. For the loan capital under the project support method:

a) The sequence and procedures for drawing down ODA funds, managing drawdowns, and using ODA funds shall be implemented in accordance with Circular No. 218/2013/TT-BTC;

b) The management expenses for Project activities at the provincial level shall be paid based on advances from the Central Project Management Board.

2. For the loan component provided through budget support:

a) Based on the annual plans of the provinces participating in the Project, which have been approved regarding the amount of funding to implement supplementary support policies for beneficiaries of the Project, and the report on the estimated implementation of the previous year's funding for these beneficiaries, the Central Project Management Board shall send a letter requesting the Ministry of Finance to draw down the loan from the World Bank once a year to pay the beneficiaries under Sub-component 2.1 of the Project;

b) The first advance shall be made before July 1, 2015 for the last six months of 2015. Subsequent advances shall be made once a year before November 30 of the preceding year;

c) The annual advance amount shall equal the approved budget estimate of the participating provinces;

d) The documents for each drawdown include:

- A letter requesting the drawdown of funds from the Central Project Management Board;

- A drawdown form according to the sponsor's model;

- The approved annual plan regarding the amount of funding to implement supplementary support policies for Project beneficiaries.

Article 14. Documentation and Procedures for Registering Participation in the Project by Social Assistance Package Beneficiaries

1. For supplementary Project beneficiaries:

a)[7] Registration Documents: Beneficiaries eligible for support policies must submit a registration form for the Project (Appendix attached) and relevant documents as follows:

- For pregnant women: A prenatal examination certificate or ultrasound report (indicating full name, date of birth, address of the pregnant woman, fetal age, expected delivery date) confirmed by a healthcare facility;

- For children aged 0 to under 3 years old: A copy of the birth certificate or birth confirmation of the child or a confirmation from the People's Committee of the commune (for particularly difficult communes) regarding the child's date of birth, included in the registration form;

- For children aged 3 to 15 years old: A copy of the child's birth certificate or a confirmation from the People's Committee of the commune (for particularly difficult communes) regarding the child's date of birth and a confirmation from the People's Committee of the commune that the child is not attending school, included in the registration form.

b) Approval Process:

- The beneficiary or family, guardian submits all required documents as stipulated in Clause 1 of this Article to the People's Committee of the commune;

- Within 10 days from receiving complete documents, the Chairman of the People's Committee of the commune shall send a letter to the Department of Labor, Invalids, and Social Affairs for review and resolution;

- Within five working days from receiving complete requests from the commune, the Department of Labor, Invalids, and Social Affairs shall be responsible for reviewing and submitting to the Chairman of the People's Committee of the district for a Decision approving the beneficiaries of the policy as the basis for payment. The approval decision must clearly state the duration of eligibility as specified in Clause 2, Article 11 of this Circular.

2. For other beneficiaries: For beneficiaries as defined in point a, Clause 1, Article 15 of this Circular: The identification of beneficiaries, documentation, approval process, and subsidy levels shall be carried out in accordance with current regulations.

Article 15. Implementation of the consolidated social assistance package

1. The consolidated social assistance package for households includes:

a) Domestic budget:

- Monthly allowances for social welfare beneficiaries as stipulated in Decree No. 67/2007/NĐ-CP; Decree No. 13/2010/NĐ-CP;

- Educational support costs for students as provided in Article 6 of Decree No. 49/2010/NĐ-CP and Points 9, 10 of Article 1 of Decree No. 74/2013/NĐ-CP;

- Support for high school students in areas with particularly difficult socio-economic conditions as specified in Decision No. 12/2013/QĐ-TTg on eligibility for support policies:

+ Food allowance: equivalent to 40% of the national minimum wage/month;

+ Accommodation allowance: for students who must arrange their own accommodation, equivalent to 10% of the national minimum wage/month;

The duration of benefit shall not exceed nine months/school year/student.

- Electricity cost support for poor households according to Decision No. 28/2014/QĐ-TTg dated April 7, 2014 by the Prime Minister regarding the structure of retail electricity price: monthly support equivalent to the electricity bill for 30 kWh at the current first-tier residential electricity rate.

b) Loan capital under the budget support method: Payment of the support amounts specified in Points a, b, and c, Clause 2, Article 11 of this Circular.

2.[8] Organizing the payment of the consolidated social assistance package through postal agencies:

a) Signing contracts for the payment of the consolidated social assistance package for households with postal agencies:

- The Department of Labor, Invalids, and Social Affairs, authorized by the competent authority to allocate state budget expenditure (domestic budget and foreign capital) to implement the policies stipulated in Clause 1, Article 15 of this Circular, signs a contract for the payment of the consolidated social assistance package for households with the Postal Service of the district and sends two copies of the contract to the Provincial Project Management Board and the Central Project Management Board as the basis for paying the payment fee to the Postal Service of the district;

- The Provincial Project Management Board signs a contract for the payment of service fees for beneficiaries and payment of remuneration for village cooperators with the Provincial Postal Service in accordance with Point b, Clause 1, Article 11 of this Circular.

b) Transfer of funds for payment:

- Monthly, the Department of Labor, Invalids, and Social Affairs bases on the list of beneficiaries receiving subsidies and support under the consolidated social assistance package for each household (including increases and decreases compared to the previous month); the amount of funds for monthly subsidies and support (including back payments and funeral expenses for social welfare beneficiaries); implements the withdrawal from the State Treasury, issues a payment order to transfer funds to the Postal Service of the district and the list of recipients for the following month (including the family subsidy list and the village cooperators' list) to the Postal Service of the district before the 30th day;

- Monthly, the Central Project Management Board bases on the request for advance payment of the Provincial Project Management Board for postal service fees and remuneration for village cooperators (for the following month); processes the necessary controls and transfers funds into the transaction account of the Provincial Postal Service opened at a bank within seven working days;

- The Provincial Postal Service transfers remuneration for village cooperators into the transaction accounts of the District Postal Services opened at banks within two working days from the date of receipt of funds from the Central Project Management Board.

c) Place and time of payment:

- Payment of the consolidated social assistance package for households from the 5th to the 18th of each month in the following forms:

+ Concentrated at the Village Cultural Post Office, Post Branch, or payment location arranged by the Post (for communes without a Village Cultural Post Office, Post Branch);

+ At home for households where the beneficiary cannot go to the Village Cultural Post Office, Post Branch, or payment location arranged by the Post such as elderly people living alone, severely disabled persons, extremely disabled persons without someone to collect the allowance on their behalf, and households facing difficulties in collecting money at centralized payment locations. The list of these beneficiaries is established by the commune-level Labor, Invalids, and Social Affairs officer, submitted to the Chairman of the Commune People's Committee for confirmation, and transferred to the Department of Labor, Invalids, and Social Affairs for consolidation and payment by the District Postal Service;

- Payment of remuneration for village cooperators is carried out at centralized payment locations and at the same time as the consolidated social assistance package payment. Village cooperators must personally receive the remuneration and cannot authorize another person to receive it on their behalf. If a village cooperator does not come to receive the remuneration for three consecutive months, the remuneration will be cut off and not paid to the village cooperator, and the District Postal Service will notify the Department of Labor, Invalids, and Social Affairs for handling.

d) Payment process:

- For the consolidated social assistance package for households:

+ Based on the monthly payment list provided by the Department of Labor, Invalids, and Social Affairs, the District Postal Service transfers the household list to the payment points to organize payment for households. The District Postal Service arranges convenient payment points for households to collect money;

+ Payment officers of the Postal Service require the recipient to sign and write their full name on the payment list; simultaneously, the Postal Service payment officer confirms in the record book of received allowances of the household. In cases where the recipient is unable to sign, they use a fingerprint and the Postal Service payment officer records the full name of the recipient. In cases where the household does not collect the allowance or when the officer delivers the allowance at home but there is no one to receive it, the Postal Service payment officer returns the unspent funds to the District Postal Service for payment in the following month;

+ In case a household does not collect the allowance for two consecutive months, the Postal Service payment officer is responsible for coordinating with the Commune People's Committee to investigate the cause. If the beneficiary has died, gone missing, or moved away, the Commune People's Committee informs the Department of Labor, Invalids, and Social Affairs to handle the cessation or suspension of allowance payments according to regulations.

- For the payment of remuneration to village cooperators: The County Post Office transfers the payment list to the post offices for disbursement and requests the village cooperators to sign for receipt and clearly write their full names on the payment list.

d) Reporting and settlement:

- Monthly, the County Post Office compiles and reports the number of households and village cooperators who have received money, the amount disbursed, and the list of households and village cooperators who have not yet received the subsidy to be transferred for payment in the following month to the Department of Labor, Invalids and Social Affairs, Project Management Board of the province, Provincial Post Office before the 20th of each month; simultaneously sending copies to the People's Committee of the commune within its jurisdiction for monitoring and supervision;

- Monthly, the County Post Office transfers the vouchers (signed lists) for settlement of the funds disbursed to the households and returns the unspent portion of the funds (for December) to the Department of Labor, Invalids and Social Affairs as the basis for state budget settlement; transfers the vouchers (signed lists) for settlement of the funds disbursed to the village cooperators and returns the unspent portion of the funds (for December) to the Provincial Post Office for consolidation as the basis for settlement with the Central Project Management Board;

- Monthly, the Provincial Post Office transfers the vouchers (signed lists) for settlement of the funds disbursed to the village cooperators and returns the unspent portion of the funds (for the fourth quarter) to the Central Project Management Board;

- Quarterly, the Department of Labor, Invalids and Social Affairs transfers the report on the settlement of the additional beneficiaries' payment data and the Treasury confirmation of the funds spent on the additional beneficiaries of the project to the Provincial Project Management Board for consolidation and submission to the Central Project Management Board to process the refund with the World Bank;

- Periodically quarterly and annually, the Provincial Project Management Board compiles and reports the payment situation and settlement of the funds disbursed to the Central Project Management Board, Department of Labor, Invalids and Social Affairs, Department of Finance, Department of Education and Training, and the Provincial People's Committee;

Article 16. Settlement

1. Settlement of state budget funds (domestic capital): carried out in accordance with the provisions of the State Budget Law and guiding documents.

2. Settlement of loan funds (foreign capital):

a) Annual settlement and final project settlement shall be carried out in accordance with Circular No. 218/2013/TT-BTC;

b) The Provincial Project Management Board prepares the settlement report in accordance with current regulations for the local expenditure portion, with confirmation from the National Treasury at the transaction location, and submits it to the competent authority at the local level for approval, then sends it to the Central Project Management Board;

c) The Central Project Management Board prepares the settlement report in accordance with current regulations for the central expenditure portion, with confirmation from the National Treasury at the transaction location, and consolidates the entire project settlement (Central Project Management Board and participating provinces), and submits it to the Ministry of Labor, Invalids and Social Affairs for approval.

Article 17. Accounting, Audit, Reporting, and Inspection System

The accounting, audit, reporting, and inspection system shall be implemented in accordance with the State Budget Law and guiding documents; Decree No. 38/2013/NĐ-CP dated April 23, 2013 of the Government on management and use of official development assistance (ODA) and concessional loans from donors, and Circular No. 218/2013/TT-BTC.

Chapter III

IMPLEMENTATION

[9]

Article 18. Implementation Organization

1. The Ministry of Labor, Invalids and Social Affairs: directs the implementation of the project at the central level, coordinates with relevant agencies and the People's Committees of participating provinces to direct the implementation of the project in the provinces in accordance with the approved project contents, consistent with the conditions committed in the funding agreement and current Vietnamese regulations.

2. The Project Steering Committee: directs, coordinates, and supervises the implementation of the project.

3. The Ministry of Education and Training: Directs the Departments of Education and Training of the four beneficiary provinces to implement the provisions of this Circular.

4. The People's Committees of the provinces:

a) Direct the implementation of the project at the provincial level, coordinate with relevant agencies and the Ministry of Labor, Invalids and Social Affairs to direct and manage the specialized agencies to implement the project within the province in accordance with the approved project contents, consistent with the conditions committed in the funding agreement and current Vietnamese regulations;

b) Approve the list of students eligible for support policies under Decision No. 12/2013/QĐ-TTg.

5. The Provincial Project Steering Committee: directs, coordinates, and supervises the implementation of the project in the province.

6. The People's Committees of the districts:

a) Direct the District Departments of Labor, Invalids and Social Affairs, Education and Training, Finance and Planning, and the National Treasury to coordinate in implementing the project within the district;

b) Approve the beneficiaries of support policies and village cooperators in accordance with this Circular.

7. The District Departments of Labor, Invalids and Social Affairs:

a) Compile the list of beneficiaries of support policies and village cooperators for approval by the Chairman of the People's Committee of the district;

b) Update the data on beneficiaries of support policies and village cooperators into the MIS database.

8. The People's Committees of the communes: establish and monitor and manage the beneficiaries of support policies and village cooperators in accordance with this Circular.

Article 19. Effective Date

1. This Circular takes effect from November 6, 2014.

2. The preparation of budgets, allocation, execution, settlement, and methods of disbursing the integrated social assistance package to households shall be carried out in accordance with this Circular.

3. During the implementation of the Project, the four provinces benefiting from the Project as specified in Clause 2, Article 1 of this Circular shall not apply the provisions set forth in Clause 4, Article 5, and Clause 2, Article 6 of Circular No. 27/2013/TTLT-BGDĐT-BTC dated July 16, 2013 issued jointly by the Ministry of Education and Training and the Ministry of Finance guiding the implementation of Decision No. 12/2013/QĐ-TTg dated January 21, 2013 of the Prime Minister on policies to support high school students in areas with particularly difficult socio-economic conditions; Article 10 and related contents regarding study cost support in Articles 11 and 12 of Circular No. 20/2014/TTLT-BGDĐT-BTC-BLDTBXH dated May 30, 2014 issued jointly by the Ministry of Education and Training, the Ministry of Finance, and the Ministry of Labor, Invalids and Social Affairs guiding the implementation of Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government on exemption, reduction of tuition fees, study cost support, and mechanisms for collecting and using tuition fees for educational institutions under the national education system from the academic year 2010-2011 to 2014-2015 and Decree No. 74/2013/NĐ-CP dated July 15, 2013 of the Government amending and supplementing certain articles of Decree No. 49/2010/NĐ-CP.

4. In case the referenced documents in this Joint Circular are replaced or amended, they shall be implemented according to the replacing or amending documents.

5. During the implementation process, if there are any difficulties, the relevant agencies and units are requested to promptly reflect them to the Ministry of Labor, Invalids and Social Affairs for coordination with the Ministry of Finance and the Ministry of Education and Training to study and resolve them.

CERTIFIED CONSOLIDATED DOCUMENT DEPUTY MINISTER DEPUTY MINISTER Dao Hong Lan

Appendix

(Issued together with Joint Circular No. 26/2014/TTLT-BLDTBXH-BTC-BGDĐT dated September 22, 2014 of the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Education and Training)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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APPLICATION FOR PARTICIPATION IN THE PROJECT

Respectfully submitted to: Department of Labor, Invalids and Social Affairs of the district...

Full name (1):...

Is the father/mother (or guardian) of the child (2):...

Belongs to category: (clearly specify the subject as defined in Article 11 of Joint Circular No.../2014/TTLT-BLDTBXH-BTC dated.../9/2014 of the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Education and Training)

Based on Joint Circular No.../2014/TTLT-BLDTBXH-BTC dated.../9/2014 of the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Education and Training guiding financial management and payment implementation for the Project "Strengthening the Social Assistance System in Vietnam"), I hereby submit this application requesting participation in the Project and enjoying the support policy as prescribed.

..., date..., month..., year... APPLICANT (3) (SIGNATURE AND FULL NAME)

(1) and (3): For children, record the full names of their parents (or guardians); for pregnant women, record their own full names.

(2) Record the name of the child. If it is a pregnant woman, leave blank and do not fill in.