Joint Circular 62/2012/TTLT-BNNPTNT-BTC

JOINT CIRCULAR

Guidelines for the management and use of funds for payment for forest environmental services

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Pursuant to the Forest Protection and Development Law dated December 3, 2004;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 01/2008/NĐ-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development; Decree No. 75/2009/NĐ-CP dated September 10, 2009 of the Government amending Article 3 of Decree No. 01/2008/NĐ-CP dated January 3, 2008 of the Government;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 99/2010/NĐ-CP dated September 24, 2010 of the Government on policies for payment for forest environmental services;

The Minister of Agriculture and Rural Development and the Minister of Finance issue this Circular to guide the mechanism for managing and using funds for payment for forest environmental services,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. Scope of regulation: This Circular guides the mechanism for managing and using funds for payment for forest environmental services as prescribed in Decree No. 99/2010/NĐ-CP dated September 24, 2010 of the Government on policies for payment for forest environmental services.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) State agencies, organizations, households, individuals, village communities; overseas Vietnamese; foreign organizations and individuals involved in activities related to the management and use of funds for payment for forest environmental services.

b) For forest owners who are units under the people's armed forces, in addition to implementing the provisions of this Circular, they also implement the provisions of laws on national defense and security.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

1. Forest owners are state organizations including public service units, units under the people's armed forces, and state enterprises.

2. Forest owners are non-state organizations including units and enterprises not covered by Clause 1 of this Article.

3. Organizations that are not forest owners but are entrusted by the state with the responsibility to manage forests include: People's Committees at the commune level; political and social agencies and organizations.

4. Payment organizations at the district level include: District-level Forest Protection and Development Fund (if any); District Forest Inspection Office; or organizations established by the Provincial People's Committee.

5. Payment organizations at the commune level include: Commune-level Forest Protection and Development Fund (if any); Commune Forestry Management Board; or payment units at the commune level established by the District People's Committee.

Article 3. Principles, conditions, and time for payment for forest environmental services

1. The principle of payment for forest environmental services shall be implemented according to the provisions of Article 5 of Decree No. 99/2010/NĐ-CP.

2. Conditions for implementing payment for forest environmental services

a) Users of forest environmental services pay for forest environmental services to providers of forest environmental services according to voluntary agreements in contracts for direct payments or agency contracts for indirect payments.

b) Forest owners who are households, individuals, or village communities receive payment for forest environmental services based on their commitment to protect the forest and provide forest environmental services with the People's Committee at the commune level.

c) Forest owner organizations receive payment for forest environmental services based on forest protection and provision of forest environmental services commitments with the Department of Agriculture and Rural Development. For businesses with forest management and business projects on forest land, they must comply with current regulations on land and forest leasing by the state.

d) Organizations that are not forest owners but are entrusted by the state with the responsibility to manage forests receive payment for forest environmental services based on approved forest protection and management plans by the Provincial People's Committee.

đ) Households receiving forest protection contracts as stipulated in Clause 2, Article 8, Decree No. 99/2010/NĐ-CP receive payment for forest environmental services based on long-term and stable forest protection contracts with state-owned forest owner organizations.

3. Time limit for payment for forest environmental services

a) The time limit for users of forest environmental services to pay for forest environmental services to providers is as follows:

- The start date for implementing payment for forest environmental services is January 1, 2011, as provided in Clause 1, Article 24, Decree 99/2010/NĐ-CP. In cases where users of forest environmental services commence operations after January 1, 2011, the start date for implementing payment for forest environmental services is the date of commencement of forest environmental service usage.

- For direct payments: users of forest environmental services pay for forest environmental services to providers according to agreed contracts.

- For indirect payments: quarterly, no later than the 15th day of the first month of the following quarter, users of forest environmental services prepare and submit to the Forest Protection and Development Fund a declaration of payment for forest environmental services according to Model Form No. 3 issued together with this Circular.

Users of forest environmental services transfer payment quarterly according to agency contracts; if late, additional interest must be paid on the overdue amount at the basic interest rate published by the State Bank at the time of payment.

b) Forest owners receiving payment for forest environmental services: for direct payments, forest owners receive payment according to agreed contracts; for indirect payments, forest owners receive payment according to annual plans of the Provincial Forest Protection and Development Fund approved by the Provincial People's Committee.

c) Households receiving forest protection contracts receive payment based on forest protection contracts with forest owners.

Article 4. Management and utilization of funds for direct payment of forest environmental services

1. The level of payment and method of payment shall be implemented in accordance with the provisions of Article 9 of Decree No. 99/2010/NĐ-CP.

2. Utilization of funds for forest environmental services shall be carried out in accordance with the provisions of Article 10 of Decree No. 99/2010/NĐ-CP.

3. The provider and user of forest environmental services shall sign an agreement contract, wherein the type of service, level of payment, time, and method of payment shall be clearly defined.

a) The agreement contract shall be established in four (04) copies: each party to the service provider and user shall retain one copy; one (01) copy shall be sent to the Department of Agriculture and Rural Development; one (01) copy shall be sent to the Provincial Forest Protection and Development Fund.

Based on the provisions of Decree No. 99/2010/NĐ-CP and the guidance provided in this Circular, the Department of Agriculture and Rural Development shall examine and have the authority to request adjustments to the Contract if it finds that the contract does not comply with national regulations.

b) The agreement contract serves as the basis for inspection, supervision, and handling of responsibilities of each party in providing and paying for forest environmental services.

Article 5. Management and utilization of funds for indirect payment of forest environmental services

1. Entrusted payment of forest environmental services

a) The user of forest environmental services from forests located within administrative boundaries of two provinces or cities directly under the central government or more shall pay the forest environmental service fee to the Vietnam Forest Protection and Development Fund. The Vietnam Forest Protection and Development Fund shall enter into an entrustment contract with the user of forest environmental services according to Model No. 1 issued together with this Circular.

b) The user of forest environmental services from forests located within the administrative boundary of a province or city directly under the central government shall pay the forest environmental service fee to the Provincial Forest Protection and Development Fund. The Provincial Forest Protection and Development Fund shall enter into an entrustment contract with the user of forest environmental services according to Model No. 1 issued together with this Circular.

2. The level of payment and amount of payment for forest environmental services shall be implemented in accordance with the provisions of Article 11 of Decree No. 99/2010/NĐ-CP and current state regulations.

3. Utilization of funds for payment of forest environmental services

The content and level of expenditure for the operations of the Forest Protection and Development Fund shall be implemented in accordance with Circular No. 85/2012/TT-BTC dated May 25, 2012, of the Ministry of Finance guiding financial management systems for Forest Protection and Development Funds.

a) Vietnam Forest Protection and Development Fund

Is allowed to allocate up to 0.5% of the total entrusted funds received in a year (including interest earned from late payments by the user of forest environmental services, interest from deposits from the source of forest environmental service payments) for the operational activities of the Fund. The specific allocation rate shall be decided by the Minister of Agriculture and Rural Development.

The remaining amount shall be transferred to the Provincial Forest Protection and Development Fund in accordance with Circular No. 80/2011/TT-BNNPTNT dated November 23, 2011, of the Ministry of Agriculture and Rural Development guiding the method for determining forest environmental service payment amounts.

b) Provincial Forest Protection and Development Fund

The allocated funds from the Vietnam Forest Protection and Development Fund and the entrusted funds from users of forest environmental services within the provincial territory shall be used as follows:

- Allocate up to 10% of the total entrusted funds received in a year (including interest earned from late payments by the user of forest environmental services, interest from deposits from the source of forest environmental service payments) for the operational activities of the Provincial Forest Protection and Development Fund. The allocation rate shall be decided by the Chairman of the People's Committee at the provincial level;

- Reserve as stipulated in Article 6 of Circular No. 85/2012/TT-BTC;

- The remaining amount shall be paid to the provider of forest environmental services in accordance with Circular No. 80/2011/TT-BNNPTNT.

c) For forest owners

The amount transferred by the Provincial Forest Protection and Development Fund for the forest environmental service of the forest owner shall be used as follows:

- A non-state organization forest owner shall manage and use the funds in accordance with the current financial management laws applicable to such organizations and use them for forest management, protection, and development.

- A household, individual, or community village forest owner shall use the entire forest environmental service payment for forest management, protection, and development and to improve their living standards.

- A state organization forest owner who implements forest protection contracts shall use 10% of the forest environmental service payment for management costs for activities such as preparing files, documents, maps for managing forest areas providing environmental services; inspections, supervision; acceptance, evaluation; propaganda, mobilization, training for forest owners' staff, commune People's Committees, households receiving forest protection contracts; meetings, seminars, mid-term and final reviews; support for county, commune, and village-level activities; purchasing assets and other expenses serving the management of forest environmental service payments. The remaining amount (90%) shall be used as follows:

+ In the case where the forest owner entrusts the entire forest area eligible for forest environmental service payments to households receiving contracts, the entire amount shall be paid to these households. These households shall use the funds for forest management and protection and to improve their living standards.

+ In the case where the forest owner entrusts part of the forest area eligible for forest environmental service payments to households receiving contracts and directly organizes the protection of the remaining forest area, the forest environmental service payment for this area shall be income for the forest owner. The forest owner shall manage and use the funds in accordance with current state financial regulations applicable to different types of organizations.

+ The level of forest environmental service payment for organizations and individuals receiving contracts shall be implemented in accordance with Circular No. 80/2011/TT-BNNPTNT.

d) For organizations that are not forest owners but have been assigned by the State to manage forests, they shall prepare plans to request financial support for forest management and protection from the revenue of payment for environmental services, and submit these plans to the Department of Agriculture and Rural Development for review and consolidation within the plan for payment for forest environmental services to be submitted to the Provincial People's Committee for approval. The average level of financial support per hectare of forest shall not exceed the average amount paid for the provision of forest environmental services in the province.

Chapter II

ESTABLISHING PLANS FOR COLLECTION AND EXPENDITURE; PAYMENT AND SETTLEMENT

Article 6. Subjects and Timeframe for Establishing Plans for Collection and Expenditure of Forest Environmental Services

1. The subjects establishing plans for collection and expenditure of forest environmental services include: the Vietnam Forest Protection and Development Fund, the provincial-level Forest Protection and Development Fund; the organization responsible for paying for forest environmental services at the district level; the organization responsible for paying for forest environmental services at the commune level; forest owners that are organizations; organizations that are not forest owners but have been assigned by the State to manage forests.

2. The timeframe for establishing plans for collection and expenditure of payments for forest environmental services shall be carried out concurrently with the annual budget planning process.

Article 7. Preparation for Establishing Plans for Collection and Expenditure

1. Central Level

Annually, the Vietnam Forest Protection and Development Fund shall organize the following activities:

a) Determining the area of forests providing forest environmental services in watersheds spanning administrative boundaries of two provinces or centrally-administered cities or more, compiling a list of users of forest environmental services required to pay through agency arrangements, and submitting this list to the Minister of Agriculture and Rural Development for approval and publication;

b) Notifying users of forest environmental services located in administrative boundaries of two provinces or centrally-administered cities or more to submit registration forms for plans to pay for forest environmental services;

c) Notifying the provincial-level Forest Protection and Development Fund to establish and submit plans for collection and expenditure of payments for forest environmental services in their respective areas.

2. Local Level

Annually, the provincial-level Forest Protection and Development Fund shall organize the following activities:

a) Determining the area of forests providing forest environmental services for the purpose of paying for forest environmental services within the province, and submitting this information to the Provincial People's Committee for approval and publication;

b) Compiling a list of users of forest environmental services required to pay for forest environmental services within the province, and a list of organizational forest owners providing forest environmental services within the province, and submitting these lists to the Provincial People's Committee for approval;

c) Notifying users of forest environmental services to submit registration forms for plans to pay for forest environmental services;

d) Guiding organizational forest owners to develop plans for collection and expenditure of forest environmental services;

đ) Guiding organizations that are not forest owners but have been assigned by the State to manage forests, which have forest management and protection plans approved by the Provincial People's Committee, to establish plans requesting financial support for forest management and protection;

e) Guiding the district-level payment organizations

To compile a list of forest owners that are households, individuals, and village communities for approval by the District People's Committee;

To compile a comprehensive report on the plan and budget for payment of forest environmental services for the entire district, and submit it to the provincial-level Forest Protection and Development Fund.

Article 8. Content of the plan for revenue and expenditure of forest environmental services

1. Evaluate the implementation of revenue and expenditure of forest environmental service payment for the first six months of the year, forecast for the whole year; compare with the results of the previous year; assess the implementation of the forest environmental service payment policy under Decree No. 99/2010/ND-CP, clearly stating positive outcomes, limitations, difficulties, obstacles, causes, and recommendations for resolution within the planning year.

2. Specifically determine the revenue and expenditure targets for forest environmental service payments based on the actual situation implemented in the previous year; forecast fluctuations in revenue sources and expenditure objects in the planning year; plan revenue and expenditure of forest environmental service payments for the Fund, forest owners who are organizations, and county and commune-level payment organizations; prepare management cost estimates for the Fund, forest owners who are state organizations, and non-owner organizations entrusted by the State to manage forests according to quarterly progress throughout the year.

Article 9. Procedure for establishing the plan for revenue and expenditure of forest environmental services

1. For users of forest environmental services

Before July 15 each year, submit the registration form for the plan to pay for forest environmental services for the following year according to Form No. 2 issued together with this Circular to the Vietnam Forest Protection and Development Fund for users of forest environmental services in forest areas spanning administrative boundaries of two provinces or centrally-administered cities or more; or the provincial Forest Protection and Development Fund for users of forest environmental services in forest areas within the administrative boundaries of one province or centrally-administered city.

2. For forest owners who are organizations

a) Sign a commitment to manage and protect forests providing forest environmental services or review the annual commitment with the Department of Agriculture and Rural Development;

b) Sign a contract for forest protection or review the forest protection contract with households receiving such contracts in accordance with current state regulations;

c) Prepare a statistical list of households receiving forest protection contracts;

d) Develop a plan for paying forest environmental services as follows:

- Review the statistical list of households receiving contracts, prepare a table to determine the area of forests providing forest environmental services according to Form No. 6 issued together with this Circular;

- Prepare a map delineating the area providing forest environmental services at a scale of 1/25,000;

- Provide a detailed report on the payment plan;

- Before July 15 each year, submit the payment plan for forest environmental services along with the required documents stipulated in this clause to the provincial Forest Protection and Development Fund.

3. For county-level payment organizations, commune-level payment organizations

a) Sign a commitment to protect forests: organize for forest owners who are households, individuals, and village communities to sign annual commitments to protect forests with the People's Committee of the commune;

b) Develop a plan for paying forest environmental services

Commune-level payment organizations base on the list of forest owners and their commitments to protect forests, prepare a table to determine the area of forests providing forest environmental services according to Form No. 5 attached to this Circular; provide a detailed report on the payment plan; prepare a budget estimate for management costs.

Submit the payment plan for forest environmental services to the county-level payment organization, including: the table determining the area of forests providing forest environmental services, the detailed report on the payment plan, and the budget estimate for management costs.

Before July 15 each year, the county-level payment organization compiles the payment plans for forest environmental services from all communes in the county and the management cost budget for the county-level payment organization, and submits them to the provincial Forest Protection and Development Fund.

4. For non-forest owner organizations entrusted by the State to manage forests with approved forest protection and management plans, develop a forest protection and management plan requesting financial support as stipulated for state-owned forest owners, and submit it to the provincial Forest Protection and Development Fund.

5. Provincial Forest Protection and Development Fund

a) Compile the plans of forest environmental service users and providers; and the notification from the Vietnam Forest Protection and Development Fund regarding the anticipated amount of forest environmental service payments to be coordinated;

b) Develop a payment plan for forest environmental services including management costs and funding for forest owners;

c) Compile the provincial plan for revenue and expenditure of forest environmental services according to Form No. 7 issued together with this Circular, submit it to the Department of Agriculture and Rural Development for review, and present it to the provincial People's Committee for approval. After the plan is approved, the provincial Forest Protection and Development Fund sends the plan to the Vietnam Forest Protection and Development Fund.

6. Vietnam Forest Protection and Development Fund

a) Develop a plan for revenue and expenditure of forest environmental services including operational funds for the Fund and funds allocated to localities;

b) Notify the anticipated allocation of entrusted forest environmental service payments for the planning year to the provincial Forest Protection and Development Funds before July 30;

c) Compile the national plan for revenue and expenditure of forest environmental services and submit it to the Ministry of Agriculture and Rural Development for approval.

Article 10. Management Expense Standards

The management expense standards for the Forest Protection and Development Funds, state-owned forest owners, and the level of support for management costs for county-level and commune-level payment organizations shall be as follows:

1. The Vietnam Forest Protection and Development Fund and the provincial-level Forest Protection and Development Fund shall implement according to the provisions set out in Circular No. 85/2012/TT-BTC.

2. State-owned forest owners and forest management organizations that are not forest owners shall implement according to the financial system regulations applicable to each type of organization.

3. Supporting staff performing payment tasks

a) Members of the county-level and commune-level Payment Organizations, Village Chiefs shall be compensated for working days. The compensation amount, number of people, and duration of compensation shall be stipulated by the Provincial People's Committee.

b) State-owned forest owners implementing payments for forest environmental services shall stipulate the compensation for personnel performing the task of paying forest environmental service fees.

Article 11. Establishing and Approving Plans for Revenue and Expenditure of Operational Activities and Management Costs

1. The plans for revenue and expenditure of operational activities and management costs, and other management cost items shall be implemented according to the provisions set out in Clause 3, Article 5 of this Circular.

2. The Ministry of Agriculture and Rural Development shall guide the preparation of the budget estimate for operational activities for the Vietnam Forest Protection and Development Fund; the Department of Agriculture and Rural Development shall guide the preparation and distribution of the budget estimate for operational activities for the provincial-level Forest Protection and Development Fund, county-level and commune-level Payment Organizations, and state-owned forest owners and non-state-owned organizations entrusted with forest management responsibilities by the state.

3. Approving Revenue and Expenditure Plans

a) The Ministry of Agriculture and Rural Development shall approve the revenue and expenditure plans for forest environmental services and the operational activity budget plan of the Vietnam Forest Protection and Development Fund.

b) The provincial People's Committee shall approve the revenue and expenditure plans for forest environmental services at the provincial level and the operational activity budget plan of the provincial-level Forest Protection and Development Fund.

c) State-owned forest owners and non-state-owned forest management organizations shall approve management expenditure plans according to their own financial management regulations.

Article 12. Adjusting Plans and Budget Estimates

1. In cases where, by the end of the second quarter of each year, the Vietnam Forest Protection and Development Fund, provincial-level Forest Protection and Development Fund, and state-owned forest owners have not collected or have not fully collected the payment for forest environmental services according to the approved plan, they may apply the level of funds extracted from the previous year's plan or budget but not exceeding the approved plan level for the current year; after the end of the plan year, they shall prepare an adjustment plan and submit it for approval by the competent authority.

2. In cases where there are changes in expenditure tasks or plan changes due to objective reasons during the year, the Forest Protection and Development Funds, state-owned forest owners, and non-state-owned organizations entrusted with forest management responsibilities by the state shall prepare adjustment plans and submit them for approval by the competent authority.

Article 13. Opening Accounts

1. The account opening procedures for various levels of Forest Protection and Development Funds shall be carried out according to the provisions set out in Circular No. 85/2012/TT-BTC.

2. It is encouraged for household and individual forest owners, community village groups, and households contracted to protect forests to open deposit accounts at bank branches to receive payments for forest environmental services.

Article 14. Accounting Organization

1. Accounting Work Organization and Accounting Staffing

a) The Vietnam Forest Protection and Development Fund, provincial-level forest protection and development funds, and forest owners who are organizations, as well as non-owner organizations entrusted by the State to manage forests, must organize accounting work and allocate personnel to handle accounting for managing the financial resources allocated for forest environmental service payments in accordance with the laws on accounting. Accounting entries shall be made within the existing accounting system of the unit.

b) County and commune-level payment organizations shall allocate personnel to concurrently handle accounting work.

2. Retention of Accounting Vouchers

Accounting vouchers related to forest environmental service payments shall be managed and retained at the accounting unit in accordance with the laws on accounting.

Article 15. Payment of Forest Environmental Service Payments at Provincial-Level Forest Protection and Development Funds

1. Advance Payment for Forest Environmental Service Payments: The level of advance payment and the number of advance payments shall be determined by the People's Committee of the province. Based on the approved forest environmental service payment plan by the People's Committee of the province, the provincial-level forest protection and development fund shall transfer advance payments to the following recipients:

a) Forest owners who are organizations, non-owner organizations entrusted by the State to manage forests; individual forest owners, households, and village communities that have accounts at the State Treasury or banks.

b) For individual forest owners, households, and village communities without bank accounts, the advance payment shall be transferred through county or commune-level payment organizations.

2. Payment of Forest Environmental Service Payments

a) Based on the acceptance report from the acceptance authority, the provincial-level forest protection and development fund shall pay forest environmental service payments to forest owners in accordance with Clause 1 of this Article.

For individual forest owners, households, and village communities: After completing the payment, the commune-level payment organization shall prepare a written report and send it to the provincial-level forest protection and development fund along with the payment vouchers, while also sending a copy to the county-level payment organization for monitoring.

b) Payment Deadline

The deadline for paying forest environmental service payments shall be completed by April 30 of the following year.

Article 16. Payment of Management Costs for County and Commune-Level Payment Organizations

1. Based on the approved plans and budgets by the competent authority, the provincial-level forest protection and development fund shall transfer advance payments for management costs to county and commune-level payment organizations. The amount of advance payment shall be based on the decision approving the plan and budget by the competent authority.

2. At the end of the forest environmental service payment period (before April 30 of the following year), based on the extracted funds, the provincial-level forest protection and development fund shall settle the remaining management costs for county and commune-level payment organizations.

Article 17. Final Report on Forest Environmental Service Payment Settlements

1. Preparation of Final Reports and Review Authorities

a) Provincial-level forest protection and development funds and non-owner organizations entrusted by the State to manage forests shall comply with the provisions of Article 7 of Circular No. 85/2012/TT-BTC.

b) State-owned forest owners shall prepare and submit final reports to the direct supervisory authority for approval. Non-state-owned forest owners shall follow the reporting settlement procedures applicable to their organizational type.

c) Users of forest environmental services shall prepare self-settlement declarations for forest environmental service payments and submit them to the forest protection and development fund within 45 days from the end of the annual accounting period using Form No. 4 issued together with this Circular.

2. Timeframe for Closing Accounts, Reporting Forms, and Submission

a) The Vietnam Forest Protection and Development Fund and provincial-level forest protection and development funds shall close their books on December 31 each year, and complete and adjust the final reports by April 30 of the following year. The final reports shall be prepared using Form No. 8 issued with this Circular and submitted to the direct financial supervisory authority before May 31 of the following year.

b) Forest owners who are organizations and non-owner organizations entrusted by the State to manage forests shall close their books, prepare reports, and submit them according to the financial management regulations applicable to their organizational type.

3. Approval, Audit, and Notification of Final Settlements of Forest Environmental Service Payments shall be carried out in accordance with the current financial management regulations applicable to each organizational type.

Article 18. Audit

Encourage forest protection and development funds, forest owners to conduct independent audits of annual financial settlement reports on funding for forest environmental service payments. The source of funds for conducting independent audits shall be from the entrusted activity fees, management costs, and shall be included in the concurrent plan and budget.

Article 19. Reporting System

1. Annually, forest owners who are organizations, or non-forest owner organizations but entrusted by the State with forest management responsibilities shall prepare a report on the implementation of forest environmental service payment disbursements according to Model Form 9 issued together with this Circular and submit it to the provincial forest protection and development fund.

2. The provincial forest protection and development fund shall compile the situation of forest environmental service payment disbursements throughout the province and report it to the provincial People's Committee, while also sending it to the Department of Agriculture and Rural Development, the Department of Finance, and the Vietnam Forest Protection and Development Fund.

3. The Vietnam Forest Protection and Development Fund shall compile the situation of forest environmental service payment disbursements nationwide and report it to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

Article 20. Inspection, Supervision, Financial Transparency

1. The Ministry of Agriculture and Rural Development shall take the lead in coordinating with the Ministry of Finance to organize inspections and supervision of ministries, sectors, and localities in implementing Decree No. 99/2010/NĐ-CP.

2. The Vietnam Forest Protection and Development Fund, provincial forest protection and development funds, county-level and commune-level payment organizations shall implement inspections and supervision of the implementation of forest environmental service payments.

3. The Vietnam Forest Protection and Development Fund, provincial forest protection and development funds, forest owners who are organizations, and non-forest owner organizations entrusted by the State with forest management responsibilities shall implement financial transparency in accordance with the provisions of the law on finance and accounting.

4. County-level and commune-level payment organizations

a) Shall be subject to inspection and supervision by state agencies, political social organizations, and the people at the county and commune levels, and by the Vietnam Forest Protection and Development Fund and provincial forest protection and development funds in accordance with the law.

b) Shall notify the community, political organizations, and social organizations about the list of recipients of forest environmental service payment money, the amount of money received, and the payment plan through the following methods:

Publicly posting at the commune People's Committee office and in the village community or the most convenient public place for easy monitoring by the people.

Written notification.

Notification via the commune or village radio system.

Announcement at the commune or village people's congress meeting.

Article 21. Asset Management

At all levels, forest protection and development funds, state-owned forest owners, and non-state-owned forest management organizations: assets formed from forest environmental service payment sources shall be managed and utilized in accordance with the provisions of the Law on State Asset Management and Utilization and current guiding documents. For other organizations managing assets formed from forest environmental service payment sources, they shall manage them in accordance with current state financial management regulations applicable to their organizational form.

Chapter IV

IMPLEMENTATION

Article 22. Responsibilities of organizations and units

1. Annually, the Ministry of Agriculture and Rural Development shall take the lead in coordinating with the Ministry of Finance and relevant ministries and sectors to organize the summary and report to the Prime Minister on the implementation of Decree No. 99/2010/NĐ-CP.

2. People's Committees of provinces and centrally governed cities

a) Direct the Departments of Agriculture and Rural Development, Departments of Finance, relevant departments and agencies, People's Committees at the district level, People's Committees at the commune level, organizations, and forest owners to implement this circular;

b) Assign the Department of Agriculture and Rural Development to guide the model commitment for forest protection providing forest environmental services for organizational forest owners and individual, household, and village community forest owners;

c) Establish and maintain the operation of the provincial Forest Protection and Development Fund;

d) Regularly annually summarize the situation of payments for forest environmental services within the entire province, and report to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

Article 23. Effectiveness of Implementation

1. This circular takes effect from January 1, 2013.

2. During the implementation process, if there are any difficulties, agencies and units shall reflect them to the Ministry of Agriculture and Rural Development and the Ministry of Finance for consideration and resolution./.