Joint Circular No. 66/2003/TTLT/BTC-NN&PTNT guiding the management, allocation, and settlement of funds for the National Target Program on Rural Clean Water and Environmental Sanitation

JOINT CIRCULAR

JOINT CIRCULAR NO. 66/2003/TTLT-BTC-BNNPTNT OF THE MINISTRY OF FINANCE AND THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT ON GUIDELINES FOR MANAGEMENT, ISSUANCE, AND SETTLEMENT OF EXPENSES FOR THE NATIONAL TARGET PROGRAM ON CLEAN WATER AND ENVIRONMENTAL SANITATION IN RURAL AREAS

Implementing Decision No. 237/198/QĐ-TTg dated December 3, 1998 of the Prime Minister approving the National Target Program on Clean Water and Environmental Sanitation in Rural Areas.
Based on Decision No. 71/2000/QĐ-TTg dated May 4, 2001 of the Prime Minister regarding national target programs for the period 2001-2005.
Based on Decision No. 104/2000/QĐ-TTg dated August 25, 2000 of the Prime Minister approving the National Strategy on Clean Water Supply and Environmental Sanitation in Rural Areas until 2010.
Based on Decision No. 42/2002/QĐ-TTg dated March 19, 2002 of the Prime Minister on management and operation of national target programs.
Based on the State Budget Law and current guiding documents.
To strengthen financial management of the funds for the National Target Program on Clean Water and Environmental Sanitation in Rural Areas (hereinafter referred to as the National Clean Water and Environmental Sanitation Program in Rural Areas), the Ministry of Finance and the Ministry of Agriculture and Rural Development jointly issue guidelines for the management, issuance, and settlement of budget expenses for the National Clean Water and Environmental Sanitation Program in Rural Areas as follows:

I. GENERAL PROVISIONS:

1. Sources of funding for the Program include:

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

- Other sources of funds: funds raised from the people, funds from other economic sectors.

2. Investment principles:

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

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

- Annual allocation of funds for the Program shall be based on the state budget's capacity and other mobilized resources.

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

II. SPECIFIC PROVISIONS:

A. CONTENT AND LEVEL OF EXPENDITURE:

1. Expenditure from operating funds:

1.1. Content of expenses:

- Support for building models of sanitary latrines.

- Support for building models of livestock waste treatment facilities.

- Communication and social mobilization, training.

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

- Unexpected expenditures 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 expenses of steering committees of national target programs.

1.2. Level of expenditure:

a. Model project for sanitary latrines:

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

- Specific expenditure items for a model include:

+ Costs for selecting construction sites, interviewing, and collecting data;

+ Technical staff costs up to a maximum of 200,000 VND/month (26 days) for direct supervision of the model (in cases where non-state civil servants are hired); For state civil servants, travel expenses shall be reimbursed according to Circular No. 94/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on travel expenses for state civil servants traveling domestically;

+ Social mobilization and technical guidance for the public;

+ Project inspection and acceptance;

+ Partial material support (cement, bricks, sand, etc.) for participants in the model, this item accounts for approximately 70% to 80% of the total cost for a model. Specifically: For households in particularly difficult communes in mountainous and remote areas and border communes as per Prime Minister Decisions, the central budget will provide a maximum support of 200,000 VND/household. For other areas, the central budget will provide a maximum support of 150,000 VND/household.

b. Model project for livestock waste treatment facilities:

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

- Expenditure items for the model are similar to those for the sanitary latrine model at point a above. Specifically, the state support for participating households is as follows:

+ For pens with up to 10 animals: Maximum support from the central budget is 200,000 VND/household.

+ For pens with more than 10 animals: Maximum support from the central budget is 300,000 VND/household.

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

For households in particularly difficult communes in mountainous and remote areas and border communes as per Prime Minister Decisions, the additional support rate is 20% higher than the aforementioned rates.

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

c. Social communication and mobilization 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:

- Costs for textbooks and teaching materials for classes;

- Payment for lecturers teaching theory up to a maximum of 20,000 VND/session, and practical instructors up to a maximum of 15,000 VND/session;

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

- Class management costs: water, rental of conference halls, transportation expenses for lecturers and class organizers;

Accommodation, food, and travel expenses for trainees during training sessions are supported according to Circular No. 93/1998/TT-BTC dated June 30, 1998 of the Ministry of Finance on meeting expense regulations.

e. Application of scientific and technological progress to the program (if applicable): Based on successful research results regarding solutions and technologies for rural environmental sanitation, the program proposes specific model applications of advanced technology to ensure economic feasibility for residents and suitability for each ecological region.

2. Expenditure from basic construction investment funds:

2.1. Content of expenses:

- Support for constructing clean water supply facilities, including water supply facilities for schools, educational institutions, kindergartens, hospitals, health stations, rural markets.

- Support for wastewater treatment of craft villages.

- Planning and pre-investment capital.

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

2.2. Specific expenditure levels:

2.2.1. Clean water supply facilities:

a. Centralized water supply facilities:

- The central budget supports part of cement, bricks, sand, and equipment for the upstream project components, water treatment station, and main pipeline.

- 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 project value approved by the competent authority.

In mountainous areas, islands, border communes, the central budget supports projects serving one village (commune, ward) up to 60% of the project value approved by the competent authority. For particularly difficult communes in mountainous regions and remote areas, 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 Commission for Ethnic Minorities (now the Commission for Ethnic Minorities), the Ministry of Finance, and the Ministry of Construction, concerning guidance on managing investment and construction of infrastructure in particularly difficult communes in mountainous regions and remote areas, according to Decision No. 135/1998/QĐ-TTg dated July 31, 1998, of the Prime Minister approving the Program for Developing the Economy and Society in Particularly Difficult Communes in Mountainous Regions and Remote Areas, shall apply.

+ For centralized gravity-fed water supply systems (only implemented in highland areas): The central budget supports up to 90% of the project value 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 particularly difficult communes in mountainous regions and remote areas, border communes, highland areas, and islands.

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

- The specific support level is as follows:

+ Small-diameter drilled wells: 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 buckets (2m³) The central budget supports up to 200,000 VND per household (for areas severely lacking water).³): The Central Budget supports a maximum of 300,000 VND/household; rainwater storage tank (2m³) The Central Budget supports a maximum of 200,000 VND/household (for water-scarce areas).

Specifically, for households of mothers awarded the title of Heroic Mothers of Vietnam,烈士母亲，烈属，和有功人员家庭确实困难的，除了上述中央财政支持的金额外，地方财政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 part of materials such as cement, bricks, sand for the cluster of treatment works or main channel, and equipment.

- Specific level of support: The central budget supports up to 40% of the project value 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 pre-investment capital: State budget allocates according to the project and economic and technical justification approved by the competent authority.

2.2.4. Application of scientific and technological progress to the program (if applicable): Based on successful research results regarding solutions and technologies for providing clean water and rural environmental sanitation, the program proposes specific model applications of advanced technology to ensure economic feasibility for residents and suitability for each ecological region.

For clean water supply projects under foreign-funded programs 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 Program Management Agency) is responsible for formulating plans on 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 financial amount of the program announced by the competent authority, the program management agency leads the coordination with the Ministry of Planning and Investment, the Ministry of Finance to allocate the program's financial resources to relevant ministries, central agencies, and provinces and centrally-administered cities in line with the approved objectives and tasks. The budget allocation table and the program's 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, agencies, and provinces and 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 issuance of financial disbursement instructions as required.

- For localities: Based on the total budget of all national target programs assigned by the Government, provincial and centrally-administered city people's committees are responsible for proactively integrating these programs within their jurisdictions, allocating financial resources for the national target program on clean water supply 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 of implementation.

2. Allocation of Funds:

- At the central level: The Ministry of Finance provides funds for direct payment to project owners under various ministries and central agencies according to current regulations on construction investment capital (for construction investment capital) and grants budget limits to ministries and central agencies participating in the program based on the budget estimate and implementation schedule (for public service capital).

- At the local level: The Ministry of Finance supplements targeted funding to centrally governed provinces and cities to implement tasks managed by localities under the program (including both public service capital and construction investment capital).

3. Financial inspection and settlement work:

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

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

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) report 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 assigned tasks and the overall situation of fund usage in implementing the Program.

At the local level: The Provincial Steering Committee for the Program is responsible for urging and inspecting participating units' compliance with financial management regulations, and periodically (quarterly, annually) report to the People's Committees of centrally governed provinces and cities, the Ministry of Agriculture and Rural Development (National Steering Committee for Clean Water Supply and Environmental Sanitation 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.

3. 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 ministries, sectors, and localities participating in the Program's compliance with financial management regulations, coordinating with the Ministry of Finance and the Ministry of Planning and Investment to regularly or spot-check the results achieved by the Program in ministries, sectors, and localities concerning the content and progress of implementation, and periodically (quarterly, annually) report to the Ministry of Planning and Investment and the Ministry of Finance on the progress of implementation and the overall situation of fund usage for the entire Program.

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces 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.