Joint Circular No. 66/2003/TTLT/BTC-NN guiding the management, allocation, and settlement of financial expenses for the National Target Program on Rural Water Supply and Sanitation

JOINT CIRCULAR

Guidelines for managing, allocating, and settling accounts for the financial budget of the National Target Program on Rural Clean Water and Environmental Sanitation

Implementing Decision No. 237/1998/QD-TTg dated December 3, 1998 of the Government Chairman regarding the approval of the National Target Program on Rural Clean Water and Environmental Sanitation;

Based on Decision No. 71/2000/QD-TTg dated May 4, 2001 of the Government Chairman concerning the National Target Programs for the period 2001-2005;

Based on Decision No. 104/2000/QD-TTg dated August 25, 2000 of the Government Chairman approving the National Strategy on Rural Clean Water Supply and Environmental Sanitation until 2010;

Based on Decision No. 42/2002/QD-TTg dated March 19, 2002 of the Government Chairman on the management and operation of national target programs;

Based on the State Budget Law and current guiding documents;

To strengthen financial management of the National Target Program on Rural Clean Water and Environmental Sanitation (hereinafter referred to as the National Program on Rural Clean Water and Environmental Sanitation), the Ministry of Finance and the Ministry of Agriculture and Rural Development jointly issue guidelines for the management, allocation, and settlement of the state budget funds for the National Program on Rural Clean Water and Environmental Sanitation as follows:

1. Sources of funding for the Program include:

I. GENERAL PROVISIONS:

- State budget funds (including both borrowed funds and aid)

- Other sources of capital: funds raised from the public and other economic sectors.

2. Investment principles:

- The Program prioritizes investment in border areas, islands, ethnic minority regions, and other rural areas with difficulties.

- The allocation of funds for implementing the Program must follow approved projects and the principle that the State and the people work together.

- Annual allocation of funds for the Program is based on the State budget's capacity and other mobilized resources.

3. Funds for the National Program on Rural Clean Water and Environmental Sanitation must be managed and expended according to their intended purpose, correct recipients, and applicable regulations. Reports and settlements shall be made in accordance with current regulations.

A. Contents and levels of expenditure:

II. SPECIFIC PROVISIONS:

1. Expenditure from operating funds:

- Support for building models of sanitary latrines.

1.1. Content of expenses:

- Support for building models of livestock waste treatment.

- Social mobilization and communication expenses, training.

- Application of scientific and technological progress to the program (if any).

- Unexpected expenses as decided by the competent authority.

For management and guidance expenses of the Program Steering Committee, they shall be implemented in accordance with Circular No. 78/2000/TT-BTC dated July 27, 2000 of the Ministry of Finance on guiding the operational costs of steering committees of national target programs.

1.2. Levels of expenditure:

a) Model project for sanitary latrines:

- Maximum support from the central budget for a commune to implement a model is 100 million VND.

- Specific expenditures for a model include:

+ Costs for selecting construction sites, interviews, and data collection;

+ Maximum technical guidance staff costs at 200,000 VND/month (26 days) for direct model guidance days (in cases where non-state civil servants are hired); for state civil servants, travel allowances shall be paid according to Circular No. 94/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on travel allowances for state officials traveling domestically;

+ Social mobilization and technical guidance costs for the community;

+ Project inspection and acceptance costs;

+ Material support costs (cement, bricks, sand, etc.) for participants, which account for approximately 70% to 80% of the model budget, specifically: For households in particularly difficult mountainous and remote areas and border communes as per Prime Minister Decisions, the central budget supports up to 200,000 VND/household. For other areas, the central budget supports up to 150,000 VND/household.

b) Model project for livestock waste treatment:

Maximum support from the central budget for a commune to implement a model is 100 million VND.

Specific expenditures for the model are similar to those for the sanitary latrine model project as described above. Specifically, state support for participating farmer households is as follows:

- For pens with up to 10 animals: maximum central budget support is 200,000 VND/household.

- For pens with more than 10 animals: maximum central budget support is 300,000 VND/household.

- If biogas installation is included, an additional 100,000 VND/household is provided.

For households in particularly difficult mountainous and remote areas and border communes as per Prime Minister Decisions, an additional 20% support is provided over the aforementioned levels.

If a commune implements a combined model of sanitary latrines and livestock waste treatment, the maximum central budget support for the combined model is 100 million VND.

c) Social mobilization and communication expenses include: Broadcasting news on mass media such as radio, television, newspapers, and other information means; printing specialized materials, leaflets, posters, films. Specific expenditure levels are based on current regulations.

d) Training expenses:

- Expenses for teaching materials and textbooks for classes;

- Payment for lecturers' theoretical instruction at a maximum of 20,000 VND/session, and practical instructors at a maximum of 15,000 VND/session;

- Purchase of practical equipment and materials (if any);

- Class management expenses: water, venue rental, transportation fuel for instructors and organizing staff;

- Accommodation, food, and travel support for trainees during training periods according to Circular No. 93/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on conference expense regulations.

e) Expenses for applying scientific and technological progress to the program (if any): Based on successful research results about rural environmental sanitation solutions and technologies, the program applies advanced techniques through specific models to ensure economic feasibility for residents and regional conditions.

2. Expenditure from construction investment funds:

2. From the basic construction investment capital source:

2.1. Content of expenses:

- Expenditure for constructing water supply facilities, including those supplying water to schools, educational institutions, kindergartens, hospitals, health stations, rural markets.

- Expenditure for treating wastewater from craft villages.

- Planning and investment preparation capital.

- Unexpected expenses as decided by the competent authority.

2.2. Specific expenditure levels:

2.2.1. Water supply facilities:

a) Centralized water supply facilities:

The central budget supports a portion of cement, bricks, sand, and equipment for the upstream project components, water treatment plants, and main pipelines.

The specific support level is as follows:

For water supply projects serving one village (commune, ward): The central budget supports up to 40% of the value of the project approved by the competent authority.

In particular, for highland areas, islands, border communes, the central budget supports projects serving one village (commune, ward) up to 60% of the value of the project approved by the competent authority. For extremely difficult mountainous and remote communes, the provisions of Circular No. 416/1999/TTLT/BKH-UBDTMN-TC-XD dated April 29, 1999, jointly issued by the Ministry of Planning and Investment, the former State Committee for Ethnic Minorities and Mountainous Areas (now the State Committee for Ethnic Minorities), the Ministry of Finance, and the Ministry of Construction regarding the management of investment and construction of infrastructure in extremely difficult mountainous and remote communes according to Decision No. 135/1998/QĐ-TTg dated July 31, 1998, of the Prime Minister on approving the program for economic and social development in extremely difficult mountainous and remote communes shall apply.

For centralized gravity-fed water supply projects (only implemented in highland areas): The central budget supports up to 90% of the value of the project approved by the competent authority.

Based on the support level for one village (commune, ward) mentioned above, relevant ministries, sectors, provincial people's committees, and centrally-administered city people's committees approve the support level for inter-village (inter-commune, inter-ward) projects, communes, and implement projects in accordance with the annual allocated budget.

b) Decentralized water supply facilities:

The central budget supports poor households and families of social policy beneficiaries, households in extremely difficult mountainous and remote communes, border communes, highland areas, and islands.

The central budget supports a portion of materials such as plastic pipes, hand pumps, cement, and rainwater collection channels depending on the type of water supply system.

The specific support level is as follows:

- Small diameter boreholes: The central budget supports up to 300,000 VND per household.

- Dug wells: The central budget supports up to 200,000 VND per household.

- Rainwater storage tanks (4m³): The central budget supports up to 300,000 VND per household; Rainwater storage containers (2m³) The central budget supports up to 200,000 VND per household (for areas with water shortages).³Central budget supports a maximum of 300,000 VND per household; Rainwater storage tank (2m³Central budget supports a maximum of 200,000 VND per household (for water-scarce areas).

For households of mothers awarded the title of Heroic Mothers of Vietnam,烈士母亲，烈属，困难的革命功臣家庭，在中央预算提供的支持（如上所述）之外，地方预算可以考虑支持剩余工程价值的部分。

2.2.2. Projects for treating craft village waste:

Content of support: The central budget supports a portion of materials such as cement, bricks, sand for clusters of treatment works or main channels, and equipment.

Specific support level: The central budget supports up to 40% of the value of the project approved by the competent authority for one village (commune, ward).

Based on the support level for one village (commune, ward) mentioned above, relevant ministries, sectors, provincial people's committees, and centrally-administered city people's committees approve the support level for inter-village (inter-commune, inter-ward) projects, communes, and implement projects in accordance with the annual allocated budget.

2.2.3. Planning and investment preparation capital: The state budget allocates funds based on the project and economic and technical feasibility studies approved by the competent authority.

2.2.4. Expenditure for applying scientific and technological progress to the program (if applicable): Based on successful scientific research results concerning solutions and technologies for clean water supply and rural environmental sanitation, the program proposes specific applications of technological advancements to ensure compatibility with the economic capacity of residents and the conditions of each ecological region.

For water supply facilities under foreign-funded projects with specific content and locations, funding will be arranged according to the approved project.

B. Financial Management of the Program:

1. Preparation of budgets and allocation of funds:

Annually, based on the Prime Minister's directive on developing socio-economic plans, the Ministry of Agriculture and Rural Development (the managing agency of the program) is responsible for formulating plans regarding tasks, objectives, and financial needs, proposing solutions to implement the program, and submitting them to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the Government. Based on the total budget of the program announced by the competent authority, the program management agency, in collaboration with the Ministry of Planning and Investment and the Ministry of Finance, forecasts the allocation of program funds to relevant ministries, central agencies, and provinces/cities directly under the central government in line with the approved objectives and tasks. The budget allocation table and program objectives and tasks are sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation into the budgets of central ministries and agencies and provinces/cities for approval by the Prime Minister.

For central ministries and agencies: Based on the program budget allocated by the Prime Minister, central ministries and agencies allocate tasks to subordinate units in line with the program's objectives and content, and submit them to the Ministry of Finance for fund disbursement as required.

For localities: Based on the total budget of all national target programs assigned by the Government, provincial people's committees and municipal people's committees directly under the central government are responsible for integrating these programs on their respective territories, allocating the budget for the national target program on clean water and rural environmental sanitation, and submitting the allocation plan to the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Agriculture and Rural Development for monitoring and inspection.

2. Allocation of Funds:

At the central level: The Ministry of Finance directly disburses funds to project owners under central ministries and agencies according to current regulations on investment in construction (for construction investment) and grants budget limits to central ministries and agencies participating in the program according to the budget and implementation schedule (for operating expenses).

At the local level: The Ministry of Finance supplements targeted funds to provinces and cities directly under the central government to fulfill the program's tasks managed by localities (including both operating expenses and construction investment).

3. Financial inspection and settlement work:

Inspection work: The Ministry of Agriculture and Rural Development, the Steering Committee for the National Program on Clean Water Supply and Environmental Sanitation in Rural Areas shall cooperate with financial agencies to conduct regular or surprise inspections regarding the implementation of state policies and regulations concerning the use of funds at both central and local levels.

Regarding settlement: Units using funds from the Target Program on Clean Water Supply and Environmental Sanitation in Rural Areas must report on their implementation (quarterly, annually) and settle accounts for the Program according to the accounting system for units issued together with Decision No. 999/TC-QĐ-CĐKT dated November 2, 1996 of the Minister of Finance and the reporting and settlement regulations stipulated in Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance; For investment capital, settlement shall be conducted according to Circular No. 45/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance guiding the settlement of investment capital.

III. IMPLEMENTATION:

1. Units participating in the Clean Water Supply and Environmental Sanitation Program in rural areas are responsible for using funds for their intended purposes, for the designated beneficiaries, in accordance with the provisions of this Circular and other current regulations; they must periodically (quarterly, annually) report on the use of funds to the project management agency, and simultaneously send copies to the same-level financial agency.

2. Ministries, sectors, and central agencies participating in the Program are responsible for inspecting subordinate units' compliance with financial management regulations, and periodically (quarterly, annually) reporting to the Ministry of Agriculture and Rural Development (Central Steering Committee for the Program), the Ministry of Finance, and the Ministry of Planning and Investment on the progress of tasks assigned and the overall situation of fund usage in implementing the Program.

At the local level: The Provincial Steering Committee for the Program has the responsibility to urge and inspect participating units' compliance with financial management regulations, and periodically (quarterly, annually) report to the People's Committees of provinces and centrally-administered cities, the Ministry of Agriculture and Rural Development (National Steering Committee for the Clean Water Supply and Environmental Sanitation Program in Rural Areas), the Ministry of Finance, and the Ministry of Planning and Investment on the progress of assigned tasks and the overall situation of fund usage in implementing the Program.

The Ministry of Agriculture and Rural Development (Central Steering Committee for the Clean Water Supply and Environmental Sanitation Program in Rural Areas) is responsible for urging and inspecting participating ministries, sectors, and localities' compliance with financial management regulations, cooperating with the Ministry of Finance and the Ministry of Planning and Investment to conduct regular or surprise inspections on the results achieved by the Program in terms of content and progress at ministries, sectors, and localities, and periodically (quarterly, annually) reporting to the Ministry of Planning and Investment and the Ministry of Finance on the progress of the Program and the overall situation of fund usage.

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Circular No. 103/1999/TTLT/BTC-NN&PTNT dated August 21, 1999 jointly issued by the Ministry of Finance and the Ministry of Agriculture and Rural Development guiding the management, allocation, and settlement of funds for the National Program on Clean Water Supply and Environmental Sanitation in Rural Areas.

During implementation, if any issues arise, units are advised to reflect them back to the Joint Ministries for study and appropriate amendments./.