Circular No. 89/2008/TT-BTC guides the management, allocation, and settlement of state budget funds for the project to plant new forests on five million hectares.

CIRCULAR

Guidelines for the Management, Allocation, and Settlement of

State Budget Funds for the Project of Planting Five Million Hectares of New Forests

__________________________

Pursuant to Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister on the objectives, tasks, policies, and implementation organization of the Project of Planting Five Million Hectares of New Forests, and Decision No. 100/2007/QĐ-TTg dated July 6, 2007 of the Prime Minister amending and supplementing certain provisions of Decision No. 661/QĐ-TTg dated July 29, 1998; Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Prime Minister on some policies for developing production forests during the period 2007-2015;

Pursuant to Circular Joint No. 58/2008/TTLT-BNN-KHĐT-TC dated May 2, 2008 of the Ministry of Agriculture and Rural Development - Ministry of Planning and Investment - Ministry of Finance guiding certain contents of implementing the Prime Minister's Decision on the objectives, tasks, policies, and implementation organization of the Project of Planting Five Million Hectares of New Forests during the period 2007-2010, Circular Joint No. 02/2008/TTLT-BKH-NN-TC dated June 23, 2008 of the Ministry of Planning and Investment - Ministry of Agriculture and Rural Development - Ministry of Finance guiding the implementation of Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Prime Minister on some policies for developing production forests during the period 2007-2015, Circular Joint No. 52/2008/TTLT-BNN-BTC dated April 14, 2008 of the Ministry of Agriculture and Rural Development - Ministry of Finance guiding rice subsidies for ethnic minorities in mountainous areas planting forest instead of shifting cultivation;

The Ministry of Finance guides the management, allocation, and settlement of state budget funds for the Project of Planting Five Million Hectares of New Forests as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1.The state budget allocates from investment development capital to projects of planting five million hectares of new forests that fall within the scope of entities entitled to use state budget funds according to the provisions of Decisions No. 661/QĐ-TTg dated July 29, 1998 and No. 100/2007/QĐ-TTg dated July 6, 2007 of the Prime Minister amending and supplementing certain provisions of Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister on the objectives, tasks, policies, and implementation organization of the Project of Planting Five Million Hectares of New Forests, and Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Prime Minister on some policies for developing production forests during the period 2007-2015.

2.The superior authority of the project proponent (Ministries, agencies equivalent to Ministries, and agencies directly under the Government for central-managed projects; People's Committees of provinces and centrally-administered cities for locally-managed projects) shall be responsible for allocating plan indicators for each project within the scope of the national plan announced, guiding and directing the proponents to implement according to the approved plan.

3.Financial authorities shall allocate and settle funds for projects through the State Treasury system based on the capital plan assigned by the State. The State Treasury shall be responsible for timely, full, and accurate settlement of funds for projects when all conditions for settlement are met.

II. SPECIFIC PROVISIONS

1. Scope, Objectives, Amount, and Content of Expenditure:

The scope, objectives, amount, and content of expenditure of state budget funds for the project shall be implemented in accordance with the guidelines set out in Decision No. 100/2007/QĐ-TTg dated July 6, 2007 of the Prime Minister, Circular Joint No. 58/2008/TTLT-BNN-KHĐT-TC dated May 2, 2008 of the Ministry of Agriculture and Rural Development - Ministry of Planning and Investment - Ministry of Finance guiding certain contents of implementing the Prime Minister's Decision on the objectives, tasks, policies, and implementation organization of the Project of Planting Five Million Hectares of New Forests during the period 2007-2010, Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Prime Minister on some policies for developing production forests during the period 2007-2015, and Circular Joint No. 02/2008/TTLT-BKH-NN-TC dated June 23, 2008 of the Ministry of Planning and Investment - Ministry of Agriculture and Rural Development - Ministry of Finance guiding the implementation of Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Prime Minister on some policies for developing production forests.

2. Plan Capital Allocation and Review of Capital Allocation Plans:

2.1. Capital Allocation:

2.1.1 For projects managed by central ministries and sectors: based on the three-year medium-term plan and annual plan (if detailed annually) assigned by the Prime Minister, ministries and sectors allocate annual capital plan indicators for each project meeting the required conditions within their jurisdiction(in accordance with attached Form No. 01)send to the Ministry of Finance for review in accordance with the State Budget Law, and also send to the Ministry of Planning and Investment, and the Ministry of Agriculture and Rural Development for monitoring and management.

2.1.2 For projects managed by provincial level: based on the three-year medium-term plan and annual plan (if detailed annually) assigned by the Prime Minister, the Provincial Department of Planning and Investment, in coordination with the Provincial Department of Agriculture and Rural Development and the Provincial Department of Finance, propose the allocation of investment capital for each project meeting the required conditions(in accordance with attached Form No. 01)submit to the Provincial People's Committee for decision, and send to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, and the Ministry of Finance for monitoring and management.

2.2. Review of Capital Allocation Plans:

2.2.1 For projects managed by central ministries and sectors: after receiving the capital allocation plan from ministries and sectors, the Ministry of Finance reviews the capital allocation plan, provides opinions on projects lacking investment procedures and failing to meet the conditions for capital allocation, sends these opinions to the ministries and sectors, and also sends them to the State Treasury. Ministries and sectors are responsible for reallocating these projects in accordance with regulations, sending the reallocated plans to the Ministry of Finance for review, and to the State Treasury for allocation and settlement. The properly allocated capital plans of ministries and sectors serve as the basis for allocation and settlement of funds.

2.2.2 For projects managed by the province: based on the investment capital plan already decided by the Provincial People's Committee, the Department of Finance reviews the allocation plans of relevant sectors and units (if any) and provides comments to report to the Provincial People's Committee if the project allocations do not comply with regulations, simultaneously sending to the State Treasury for control and payment purposes. Localities are responsible for reallocating these projects in accordance with regulations, submitting to the Department of Finance for verification, and sending to the State Treasury for disbursement and payment. The allocation schemes and reallocation of investment funds in compliance with regulations by sectors and units, and the decision to assign annual targets by the Provincial People's Committee serve as the basis for disbursement and payment of funds.

2.3 The project investor sends relevant financial authorities at all levels (projects managed by central ministries and sectors send to the Ministry of Finance, projects managed by provinces send to the Department of Finance) the following documents:

- For preparatory investment projects: approval documents for the budget estimate of preparatory work costs.

- For implementation investment projects: decisions approving the investment project construction (or economic-technical reports for projects only preparing economic-technical reports) and adjustment decisions (if any).

2.4 Allocation of investment capital to investors:

After the allocation of investment capital has been reviewed by the financial authorities, the Ministries, sectors, and Provincial People's Committees allocate targets to investors for implementation, simultaneously sending to the State Treasury where the project account is opened for monitoring, serving as the basis for control and payment of funds.

2.5 Annual adjustment of investment capital plans:

Periodically, the Ministries, sectors, and localities review and assess the progress of projects during the year to adjust downward the capital plans of projects that cannot be implemented, and increase the capital plans for projects that exceed their schedules or have the potential to complete ahead of schedule within the year. The deadline for adjusting the annual investment capital plan ends no later than December 31 of the planning year.

Before submitting the adjusted capital plan for each project to the financial authorities, the Ministries, sectors, and localities work with the State Treasury to determine the amount of capital paid out from the annual plan for the project, the surplus capital due to non-implementation, ensuring that the project plan after adjustment is not lower than the capital paid out by the State Treasury.

The adjusted capital plans of projects must fall within the scope of the three-year total plan (2008-2010) already allocated. For the final year (2010), if necessary, the Ministries, sectors, and localities may adjust the three-year plans of projects to align with actual implementation conditions. The total adjusted three-year capital plan shall not exceed the plan assigned by the Prime Minister.

3. Advance payments, capital payments, and final settlement.

3.1 Account opening:

The disbursement and payment of state budget funds are carried out through the State Treasury system. Investors are allowed to open accounts at the State Treasury location convenient for payment control and investor transactions.

3.2 Project foundation documents:

To serve the management and control of investment capital payments, investors must submit to the State Treasury where the payment account is opened the project foundation documents (these documents must be original or certified true copies, sent only once until the end of the investment project, except when supplementation or adjustment is required), including:

3.2.1 For preparatory investment work:

- Approved budget estimate for investment preparation work;

- Tender selection documents in accordance with the Bidding Law;

- The contract between the Project Owner and the contractor.

3.2.2 For implementation investment work:

- Investment project construction (or economic-technical reports for projects only preparing economic-technical reports) attached with the investment decision of the competent authority, project adjustment decisions (if any);

- Tender selection documents in accordance with the Bidding Law (including bidding, direct assignment, direct purchase, competitive tendering, self-execution, and tender selection in special cases);

- Construction contracts between the investor and the contractor (including all documents attached to the contract according to regulations); specifically for forestry works, it is the contract for forestry items between the investor and households/groups of households and the contracting unit (including all assignment contracts; forest planting contracts and support contracts for production forests).

- Budget estimates and approval decisions for each work, item, and project for cases of direct assignment or self-execution and works executed without contracts.

3.3 Advance capital payments:

3.3.1 For items, works, and tenders of the Five Million Hectares Reforestation Project, advance capital payments must be at least 50% of the contract value or approved budget estimate.

3.3.2 Advance capital payments for contracts under the responsibility of the investor must be clearly stipulated in the contract. Advance capital payments are made after the contract becomes effective; if the investor and contractor agree in the contract to provide a guarantee for advance payments, the contractor must provide a guarantee for the advance payment amount. The advance capital payment amount shall not exceed the annual capital plan allocated for the tender.

3.3.3 Advance capital payment documents:

In addition to the project foundation documents as prescribed, when making advance capital payments, the investor sends the following documents to the State Treasury:

- A payment request for investment capital;

- Payment transfer vouchers;

- Contractor's guarantee for advance payments (if the investor and contractor agree in the contract to provide a guarantee for advance payments).

3.3.4 Recovery of advance capital payments:

- Advance capital payments are recovered by gradually deducting from the payment of completed work volumes.

- The recovery begins when the payment of completed work volumes reaches 30% of the contract value; full recovery occurs when the payment of completed work volumes reaches 80% of the contract value. The amount recovered each time is determined by mutual agreement between the investor and the contractor.

3.3.5 The investor is responsible for calculating reasonable advance payments, managing them strictly, using them for the intended purpose, for the intended recipients, effectively, and ensuring the full repayment of advance payments according to the above provisions.

If advance payments are not used or used for other purposes, the investor is responsible for recovering them to fully repay the state budget. Strictly prohibited are advance payments that are not used or used for unintended purposes.

3.4. Payment for completed volume:

3.4.1 - In principle:

- For works carried out under contracts, payment shall be made according to the contract: based on the contract price and conditions stipulated in the contract. The number of payments, payment stages, and payment conditions must be clearly recorded in the contract;

- For works carried out without a contract: payment shall be appropriate to each type of work, based on reports of completed work volumes and approved estimates for each work:

+ In cases where the work is self-performed: payment shall be based on reports of completed work volumes and approved estimates for each work content.

+ For works self-performed by the unit from the project's management and forest protection budget of 5%; the project's budget of 2% for organizing forestry promotion activities; the project's management budget of 10%, payment shall be appropriate to each type of work, based on expense lists and approved estimates for each work content.

Payment for completed volume shall be implemented in accordance with the regulations of the Ministry of Finance regarding capital payment from state budget funds (currently Circular No. 27/2007/TT-BTC dated April 3, 2007 and Circular No. 130/2007/TT-BTC dated November 2, 2007 amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007 guiding the management and payment of investment capital and public service capital with investment nature from state budget funds).

3.4.2 - Payment documents:

When there is a completed volume accepted according to the payment stage and payment conditions in the contract, the investor shall prepare a payment request document to send to the State Treasury, including:

- A table determining the value of the completed work volume according to the contract in accordance with the regulations of the Ministry of Construction (currently Appendix 2 attached to Circular No. 06/2007/TT-BXD dated July 25, 2007 of the Ministry of Construction on guiding contracts in construction activities). Report on the value of the completed work volume for self-performed items according to the estimate and expense list for self-performed items according to the estimate belonging to the 5% management and protection budget, 10% project management budget...; For forest protection allowances, it is a consolidated list of the results of the value of the accepted work volume prepared by the Investor, following the form prescribed by the Ministry of Agriculture and Rural Development.

- A payment request for investment capital;

- Transfer documents.

When there is a volume outside the contract, the investor sends a table determining the value of the volume outside the contract according to the regulations of the Ministry of Construction (currently Appendix 4 attached to Circular No. 06/2007/TT-BXD dated July 25, 2007 of the Ministry of Construction on guiding contracts in construction activities).

3.5 - Special provisions for food supply to ethnic minority people in mountainous areas:

Food supply to ethnic minority people in mountainous areas is implemented in accordance with the guidance provided in Joint Circular No. 52/2008/TTLT dated April 14, 2008 of the Ministry of Agriculture and Rural Development and the Ministry of Finance on temporary advance and payment for rice subsidies for ethnic minorities in mountainous areas planting forests instead of shifting cultivation as follows:

- Advance funding: Based on the plan assigned by the competent authority, the application for advance payment, and the list of households registered for forest planting on shifting cultivation land and the quantity of subsidized rice prepared by the investor in accordance with Joint Circular No. 52/2008/TTLT dated April 14, 2008, the State Treasury implements the advance payment to the investor for the full amount to purchase and transport rice to the distribution locations.

- Payment for completed volume: When the rice distribution is completed, the investor sends the State Treasury a list of households that have implemented forest planting and received rice subsidies signed by the households, the investor, and the People's Committee Chairman, along with relevant documents related to the purchase and transportation of rice. The State Treasury monitors and pays the capital to the investor, simultaneously recovering the advanced funds.

3.6 On payment deadlines and handling of payment capital:

The annual capital plan allocated for completed volumes accepted until March 31 and the State Treasury's payment period is implemented until April 30 of the following year. In cases where the project has not fully settled the plan, the remaining capital will be extended for settlement in the following year. In cases where the project exceeds the plan, it can be prepaid from the next year's capital plan for settlement, but the total amount paid and pre-paid over three years cannot exceed the three-year capital plan assigned to the project.

4. Reporting, inspection, and final accounting system.

4.1 Reporting:

4.1.1 For investors, Ministries, and provinces: implement reporting procedures as stipulated in Decision No. 52/2007/QD-TTg dated April 16, 2007 of the Prime Minister on the Reporting System for the Implementation of State Investment Capital Plans, Circular No. 05/2007/TT-BKH dated August 9, 2007 of the Ministry of Planning and Investment on issuing reporting forms and guidelines for implementing Decision No. 52/2007/QD-TTg dated April 16, 2007;

4.1.2 For the State Treasury:

- Implement information reporting procedures as prescribed by the Ministry of Finance.

- At the end of the plan year, the State Treasury confirms the payment amount for the year, cumulatively the payment amount from the start of construction to the end of the state budget fiscal year for each project prepared by the investor.

4.2 Final accounting of investment capital:

4.2.1 Annual final accounting of investment capital:

Annual final accounting of investment capital shall be carried out in accordance with the provisions of the State Budget Law and the guidelines of the Ministry of Finance (currently Circular No. 53/2005/TT-BTC dated June 23, 2005 guiding the preparation and review of annual final accounting reports for construction investment projects funded by the state budget).

4.2.2 Final accounting of completed projects:

Final accounting of investment capital for completed projects shall be carried out in accordance with the guidelines of the Ministry of Finance (currently Circular No. 33/2007/TT-BTC dated April 9, 2007 guiding the final accounting of completed projects funded by state capital; Circular No. 98/2007/TT-BTC amending and supplementing certain points of Circular No. 33/2007/TT-BTC dated April 9, 2007).

4.3 Inspection:

The competent investment management agency, central and local functional agencies, and the State Treasury shall periodically or urgently inspect the implementation of plans, payment situations, final settlement of capital, compliance with financial management systems by the project sponsor, promptly address or recommend measures to resolve issues in the management, disbursement, payment, and final settlement stages; promptly correct and handle any violations.

5. Responsibilities and authorities of relevant units and agencies.

5.1. For the project sponsor:

- Fulfill assigned functions and tasks as prescribed, receive and use funds for their intended purposes, target groups, and effectively. Adhere strictly to legal regulations on financial management systems for development investment.

- Bear full responsibility for the accuracy and legality of the volume of work completed, quality of projects, and proposed payment values; ensure the accuracy, truthfulness, and legality of all data and documents provided to the State Treasury and state functional agencies.

- When the volume of work meets the conditions for payment according to the contract, promptly conduct acceptance, prepare complete payment files, and request payment from contractors within the stipulated time frame.

- Timely and fully report to the investment decision-making agency and related state agencies as required; be subject to inspection by the finance agency and the investment decision-making agency regarding the use of investment capital and compliance with state financial policies and systems for development investment.

- Carry out accounting and final settlement of investment capital in accordance with current regulations.

5.2. Ministries, sectors, People's Committees of provinces and centrally governed cities:

Guide, urge, and inspect project sponsors' implementation of investment plans, execution of payments and final settlements, and compliance with financial management systems in the field of development investment.

5.3. The State Treasury:

- Timely control and disburse funds to project sponsors as prescribed.

- Have the right to request project sponsors to provide files, documents, and information for management and fund disbursement purposes; have the authority to refuse and bear responsibility for refusing to disburse funds to projects that do not meet conditions; recover funds used for unintended purposes or wrong recipients.

- The State Treasury only controls payments based on documents provided by the project sponsor and according to established payment principles, without bearing responsibility for the accuracy of volumes, norms, unit prices, or project quality.

- Implement annual reporting and final settlement of capital in accordance with prescribed procedures.

5.4. Department of Agriculture and Rural Development:

- Assist the provincial People's Committee in directing and managing project sponsors to implement assigned plans.

- Coordinate with the Finance Department and members of the Audit Board to review annual settlement reports and completed project settlements for approval by the provincial People's Committee.

5.5. Finance Department:

Lead coordination with related agencies to review capital allocation and audit final settlements of projects managed by localities for approval by the Provincial People's Committee.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces Circular No. 43/2002/TT-BTC dated May 7, 2002, issued by the Ministry of Finance guiding the management and disbursement of State budget funds for the New Forest Planting Project of 5 million hectares, and Circular No. 24/2003/TT-BTC dated March 27, 2003, issued by the Ministry of Finance amending certain points of Circular No. 43/2002/TT-BTC dated May 7, 2002.

During implementation, any difficulties should be promptly reported to the Ministry of Finance for research and resolution./.