Decision No. 992/2003/QĐ-BYT on the issuance of the Financial Management Regulations for Non-Repayable Aid under the Ministry of Health

Pursuant to …;

Regarding the issuance of the Financial Management Regulations for Non-Repayable Aid under the Ministry of Health

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 THE MINISTER OF HEALTH

Pursuant to Decree No. 68/CP dated October 11, 1993 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Health;

Pursuant to Decree No. 17/2001/NĐ-CP dated May 4, 2001 of the Government on the issuance of the Regulation on the Management and Utilization of Official Development Assistance;

Pursuant to Decision No. 64/2001/QĐ-TTg dated April 26, 2001 of the Prime Minister on the issuance of the Regulation on the Management and Utilization of Aid from Foreign Non-Governmental Organizations;

Pursuant to Circular No. 70/2001/TT-BTC dated August 24, 2001 of the Ministry of Finance guiding the financial management regime of the State for non-repayable aid sources;

After consultation with the Ministry of Finance in Circular No. 644/TC-VT dated January 18, 2002;

At the proposal of the Director of the Department of Finance and Accounting of the Ministry of Health;

Pursuant to …;

Article 1. Issued together with this Decision: The Financial Management Regulations for Non-Repayable Aid under the Ministry of Health.

Article 2. This Decision shall take effect fifteen days from the date of issuance and shall replace Decision No. 1837/2000/QĐ-BYT dated June 13, 2000 of the Minister of Health on the Financial Management Regulations for Non-Repayable Aid under the Ministry of Health.

Article 3. You are hereby instructed to implement this Decision: Heads of the Office, Inspectorate, Departments under the Ministry of Health, Director of the Vietnam Drug Administration, Director of the Quality Control and Food Safety Administration, Head of the Project Management Board of the Ministry of Health, Program Directors, AIDS Prevention Office, Ban 10-80, and Heads of administrative units directly subordinate to the Ministry of Health that have non-repayable aid sources are responsible for implementing this Decision.

REGULATIONS

Financial Management for Non-Repayable Aid under the Ministry of Health

(Issued together with Decision No.: 992/2002/QĐ-BYT dated March 26, 2002 of the Minister of Health)

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 PART I

GENERAL PROVISIONS

Article 1. These regulations apply to non-repayable aid from

Governments of countries, international organizations, international financial institutions, foreign non-governmental organizations (collectively referred to as aid organizations), non-project aid, emergency relief with specific addresses, aid for programs and projects within the Ministry of Health and its directly subordinate administrative units (HCSN) tasked with managing projects (collectively referred to as Implementing Units). Subordinate units, local health departments, Ministries, and sectors directly benefiting from non-repayable aid managed by the Ministry of Health and its subordinate units (collectively referred to as Participating Units).

Article 2. In this Regulation, the following terms shall be understood as follows:

1. "Program" is a set of related projects involving multiple economic and technical sectors, multiple regions, and various subjects, requiring implementation through interdisciplinary approaches, with relatively long implementation periods and resources mobilized from various sources and methods.

2. "Project" is a set of related activities aimed at achieving one or more specific objectives within a defined timeframe, based on specified resources.

3. "Non-project Aid" refers to aid not included in programs or projects, provided in the form of goods (commodities, materials, equipment), cash, or experts (including volunteer experts) for humanitarian and charitable purposes (hereinafter collectively referred to as humanitarian).

4. "Emergency Relief" is non-project aid implemented urgently following emergencies (natural disasters or other calamities) and lasting up to two months after the emergencies end. If such relief continues beyond this period, it will be considered post-emergency recovery aid.

5. Implementing Unit is the unit authorized by competent authorities to approve projects, assign management and operation tasks. An Implementing Unit may also simultaneously be a Participating Unit.

6. Participating Unit is the unit assigned to carry out one or more project objectives, directly benefiting from project resources.

7. "International Agreement on ODA" is a written agreement signed between representatives of the State or Government of Vietnam and representatives of donors regarding issues related to ODA, including Agreements, Protocols, program/project documents, and exchange documents between parties having equivalent value.

Article 3. Non-repayable aid from aid organizations entrusted by the Government to the Ministry of Health for management and implementation constitutes revenue of the State Budget (NSNN) and shall be managed and implemented according to the Law on the State Budget and other legal documents governing financial and budgetary management. In cases where international agreements provide otherwise, Implementing Units shall follow such agreements.

Article 4. Implementing Units can only accept non-repayable aid after approval by competent authorities as prescribed, must use aid according to committed content and objectives, and may not use aid for any other purpose.

Article 5. The Ministry of Health centrally manages non-repayable aid funds (foreign currency or Vietnamese dong) through the Ministry's account. (Except for Implementing Units required to open separate accounts under international agreements.)

Article 6. In cases where Implementing Units directly receive cash or checks, they must immediately report to the Ministry of Health (Department of Finance and Accounting, Planning Department) for guidance on receiving and using the funds.

Article 7. The management and expenditure of non-repayable aid funds by Implementing Units must be carried out at subordinate HCSN units with legal personality (if such HCSN units are designated as Project Leaders). For Implementing Units directly managed and organized by Departments, Boards, and Inspectors within the Ministry of Health, management, expenditure, and settlement must be conducted through the Project Management Board of the Ministry of Health.

Article 8. For non-repayable financial and material aid, all implementing units of the projects must complete the procedures to confirm the aid. The confirmation certificates for financial and material aid serve as the basis for completing the procedures to receive funds and goods, and are one of the grounds for the Ministry of Finance to record income and expenditure from the State budget for the implementing units of the projects (except for certain projects with specific regulations).

Article 9. The heads of the implementing units of the projects and those directly using the non-repayable aid sources are responsible before the Minister of Health for the implementation of the project's objectives and contents as committed in the project files and documents, and are also responsible under the law for the management of expenditures from the aid sources.

Chapter II

ESTABLISHING THE PROJECT EXPENDITURE BUDGET

Article 10. At the beginning of each July every year, along with establishing the State budget for the following year, ongoing projects must base on the guidelines for establishing the State budget of the Ministry of Health, approved project documents, and any approved adjustment documents (if applicable) to establish the aid budget. The aid budget must reflect the situation of aid receipts and expenditures, counterpart funds (if any), analyzed according to the purpose of use (construction, equipment), and detailed explanations attached. The budget is sent to the Ministry of Health (Department of Finance and Accounting, Department of Planning) for consolidation and submission to the Ministry of Finance, the Ministry of Planning and Investment for approval by the Prime Minister and the National Assembly.

Specifically, for projects implemented and managed directly by the Ministry of Health, the budgets for aid receipts and expenditures, counterpart funds for equipment and construction, are sent to the Project Management Board - Ministry of Health for consolidation and submission to the Ministry of Health (Department of Finance and Accounting, Department of Planning).

For newly approved projects, when the annual budget plan has been allocated, the project must establish additional budgets according to the above procedure and send them to the Ministry of Health (Department of Finance and Accounting, Department of Planning) to request additional budget allocations and counterpart funds (if any). The aid receipt and expenditure budget follows Model No. 1 issued together with this Regulation.

The counterpart fund budget is established in accordance with Decree No. 17/2001/NĐ-CP dated May 4, 2001 of the Government on the issuance of the Regulations on Management and Use of Official Development Assistance (ODA) and Detailed Circulars guiding its implementation, which apply uniformly to ODA and Non-Governmental Organization (NGO) assistance programs and projects.

After the annual budget plan is approved, the Ministry of Health will allocate counterpart funds for programs (projects with counterpart funds) concurrently with the allocation of the budget for equipment to subordinate units.

Chapter III

CONFIRMATION OF AID

Article 11. All implementing units receiving aid must complete the aid confirmation procedures, including:

1. Construction works carried out by contractors under the "turnkey" form, evidenced by handover minutes, final accounts, and tender contracts.

2. Goods and equipment transferred through import channels under the project.

3. Goods and equipment purchased domestically by the aid organization and transferred to the implementing units of the projects.

4. Goods and equipment listed in the aid program, brought in by experts and directly used by the partner side but committed to be handed over to the implementing units of the projects upon completion of the project.

5. Goods and money (foreign currency or Vietnamese dong) from non-project aid sources transferred by the aid organization to the implementing units that have been approved by competent authorities.

6. Foreign currency or Vietnamese dong transferred by the aid organization to the implementing units of the projects for direct use (including grants for office activities of the project office at the agreed level in the project application).

Article 12. Necessary documents for the aid confirmation procedures:

1. Aid goods:

a. Approval documents for the program or project or permission documents for receiving aid from competent authorities.

b. International agreements regarding the project.

c. Approval documents for commercial contracts in accordance with current regulations, commercial invoices, or invoices issued by the Ministry of Finance (if the implementing unit purchases goods domestically).

d. Sea and air waybills and detailed lists. In cases where there are no invoices or waybills, the implementing unit must have a receipt of goods from the transportation company. In cases where a consignment of aid goods is sent to multiple locations, the unit representing the aid confirmation must have authorization letters from the relevant parties and a list of aid goods distribution.

For aid goods purchased domestically by the aid organization and then transferred to the implementing units of the projects for use, the aid confirmation must be completed no later than 15 working days after receiving the goods.

2. Aid money:

a. Bank notification of receipt (at the bank where the Ministry of Health maintains an account).

For projects with separate accounts: bank notification of receipt for the project account.

b. Notification documents from the funding agency.

3. For projects involving construction works carried out by contractors under the "turnkey" form:

a. Legal documents of the project.

b. Contracts for implementing the works.

c. Minutes of acceptance, handover, and contract termination for the works and sub-works.

Article 13. For emergency relief funds with specific recipients within the Health Sector, the unit assigned by the Ministry of Health to receive these funds must promptly propose to the Department of Planning for approval by the Minister and proceed with the procedures to transfer the funds to the address specified in the aid document. Any actions hindering or delaying the transfer of these emergency relief funds are strictly prohibited. Upon completion of the work, the assigned unit must compile the necessary documents and submit them to the Ministry of Health (Department of Finance and Accounting) to request the Ministry of Finance to record the income and expenditure for the beneficiary unit.

Article 14. Upon receipt of notification of aid goods or money, the implementing units of the projects are responsible for completing the aid confirmation declaration.

For aid in the form of collected cheques, the implementing units of the projects must complete the aid confirmation declaration upon receipt of notification from the Ministry of Health (Department of Finance and Accounting) that the money has been collected.

The implementing units of the projects should go to the following departments of the Ministry of Health and the Ministry of Finance to complete the aid confirmation procedures:

Ministry of Health: Department of Planning

Within two working days from the date of receipt of the complete file as stipulated in Article 12, the Ministry of Health (Planning Department) shall recheck the self-declaration part of the receiving unit for funds and supplies and complete the procedures for the Project Implementation Unit.

The Ministry of Finance:

a) The Department of Foreign Financial Affairs:

+ Non-repayable aid sources from governments of various countries.

+ Aid sources from international financial organizations (ADB, WB...).

b) The International Aid Management and Reception Board:

+ Non-repayable aid sources from international organizations: World Health Organization (WHO), United Nations Children's Fund (UNICEF), United Nations Population Fund (UNFPA)...

+ Non-repayable aid sources from foreign non-governmental organizations and international organizations providing aid outside the framework agreement of the Government.

For health science and technology units directly under the Ministry of Health located in Central and Southern regions, the Ministry of Health authorizes the heads of these units to sign on the declaration form confirming the aid and to complete the confirmation procedures at the representative offices of the International Aid Management and Reception Board - Ministry of Finance in Da Nang City and Ho Chi Minh City, then report the results to the Ministry of Health (Planning Department, Accounting and Finance Department).

The certificate of aid funds and supplies shall be made according to Model No. 2 and Model No. 3 issued together with this Regulation.

The certificate of aid supplies shall be prepared in six copies, if the aid supplies are automobiles or motorcycles, an additional copy must be prepared for registration purposes.

The certificate of aid funds shall be prepared in five copies.

Article 15. The following sources of funds and supplies do not require confirmation of aid:

1. Goods that are gifts or donations from foreign organizations and individuals, promotional goods, samples sent by foreign companies to organizations and units within the industry.

2. Foreign currency and Vietnamese dong transferred by international organizations or organizations abroad to units and individuals under the Ministry of Health to implement service contracts: scientific research cooperation, surveys, document translations.

Although the above sources of funds and supplies do not require confirmation of aid, the Project Implementation Units must report to the Ministry of Health (Planning Department, Accounting and Finance Department) for guidance on receiving and using them. When permission is granted to use the aforementioned sources, the receiving units and individuals must comply with the provisions of the Law on Taxation and the Ordinance on Personal Income Tax for High-Income Individuals.

Chapter IV

ACCOUNTING RECORDS

Article 16. After completing the procedures for receiving aid funds and supplies, the Project Implementation Units must promptly and fully reflect all received sources of funds and supplies (both quantity and value) in accounting vouchers and books in accordance with the provisions of Decision No. 999/TC/QĐ/CĐKT dated November 2, 1996 of the Minister of Finance and Decision No. 144/BYT-QĐ dated January 31, 1997 of the Minister of Health regarding the issuance of the System of Accounting Regulations for Health Science and Technology Units; Circular No. 109/2001/TT-BTC dated December 31, 2001 of the Ministry of Finance guiding the accounting for receiving and using non-repayable aid.

Recording aid funds and supplies: The basis for recording in the accounting books of the Project Implementation Units is Vietnamese dong and the value of foreign currency confirmed by the Ministry of Finance as non-repayable aid converted into Vietnamese dong according to the exchange rate published by the Ministry of Finance at each time point (except where the donor has specified the exchange rate) according to each item and provision of the State Budget Ledger.

Article 17. For aid in kind: The basis for accounting records is the actual value of the received goods in Vietnamese dong or the value of foreign currency converted into Vietnamese dong. In cases where there is a discrepancy between the actual amount of goods received and the aid confirmation certificate (increase or decrease), the Project Implementation Unit must go to the place where the aid confirmation procedures were completed to request adjustment.

For direct expenses paid by the foreign side without transferring money into the accounts of the Ministry of Health or the Project Implementation Unit (units that have separate accounts) such as payments for experts, conferences, seminars, training, visits, surveys, internships abroad or technical consulting services in Vietnam, these expenses will not be recorded in the accounting books of the Project Implementation Unit.

Other income during implementation:

Article 18. During the implementation process, if the Project Implementation Unit generates other income such as proceeds from packaging waste, sale of tender documents, bid bond, performance bond... the Project Implementation Unit must manage and use them in accordance with current regulations.

When withdrawing funds for activities, the Project Implementation Unit must submit a request for fund transfer according to Model No. 4 issued together with this Regulation to the Ministry of Health (Accounting and Finance Department) along with the following related documents:

Chapter V

CHARGE REGIME FOR AID FUNDS

Article 19. When withdrawing funds for activities, the Project Implementation Unit must submit a request for fund transfer according to Model No. 4 issued together with this Regulation to the Ministry of Health (Accounting and Finance Department) and attach the following related documents:

1. Project files or approved agreements (if it is the first withdrawal of funds for the project).

2. Quarterly and annual budget estimates for the activities of the Project Implementation Unit, approved by the Ministry of Health (Accounting and Finance Department).

3. Consultant and service contracts and approval documents of the Minister of Health (if the unit has consultant and service contracts).

4. Related documents on bidding and approval of bidding results by the competent authority (if the project uses aid funds for construction, repair, purchase of equipment).

5. Certificate of aid funds confirmed by the Ministry of Finance as non-repayable aid.

Article 20Within two working days from the date of receipt of the complete set of documents, the Ministry of Health (Accounting and Finance Department) will transfer the corresponding amount of Vietnamese dong into the account of the Project Implementation Unit at the Treasury to carry out activities in accordance with the items and sub-items already confirmed by the Ministry of Finance on the certificate of aid funds. For Project Implementation Units directly managed and organized by departments and the Inspectorate of the Ministry of Health, the funding of the Project Implementation Units will be transferred to the account of the Ministry of Health's Project Management Board.

Article 21. For projects that according to international treaties open separate accounts at the Bank, the project implementing entity may use deposit interest in accordance with the commitment with the funding agency. In cases where the deposit interest is not stipulated in the project documentation or is stipulated but the project has ended and the remaining balance of the aid deposit interest has not been fully utilized, all the aid deposit interest shall be a source of the State Budget. When the final settlement of the completed project is approved, the project implementing entity must remit that deposit interest to the State Budget.

If before the end of the project period or before the approval of the final settlement of the project, the project may supplement additional expenditures for project implementation such as effectiveness assessment surveys, maintaining the sustainability of the project... The project is only permitted to use when it is approved by the Ministry of Health regarding the purpose and content of expenditure in writing and is allocated by the Ministry of Finance (allocated in the form of revenue and expenditure records).

Article 22. In cases where the project implementing entity uses the project budget to pay salaries to Vietnamese staff participating in managing and implementing aid programs and projects, the person receiving the salary must have the obligation to pay income tax (if it reaches the taxable level) in accordance with the Ordinance on Personal Income Tax for high-income earners. The entity paying the salary has the obligation to collect the income tax due before disbursing the salary to the recipient.

Article 23. Projects within the capital structure have a portion of credit funds for circulation such as loans to improve nutrition conditions, poverty reduction... the determination of interest rates, distribution, and use of interest proceeds are carried out as follows:

1. If the project documentation clearly specifies the interest rate and the use of interest, the project implementing entity shall apply in accordance with the content specified in the project documentation.

2. In cases where the project documentation does not specifically stipulate the loan interest rate, the project implementing entity shall apply the current preferential interest rate applicable to ongoing poverty reduction loans being implemented in the locality participating in the project.

3. The interest proceeds collected shall be distributed and used according to the principle: After deducting bank service fees (if any), allocate a reasonable proportion to cover the expenses of the project management boards at various levels, and the remainder shall replenish the revolving fund.

The Ministry of Health shall coordinate with the Ministry of Finance to specify the interest rates and the use of interest proceeds for each project according to the above principles.

4. Upon completion of the project, the project implementing entities must settle the project in accordance with regulations, the continued use of the project's credit capital shall be carried out in accordance with the commitments with the funding agencies (if any), the project sponsor is responsible for compiling reports to the Ministry of Health and proposing usage plans based on the principle of continuing support for the project.

Article 24. Foreign currency use:

The project implementing entities may use foreign currencies for project activities under the principle: The project documentation details the categories of expenditures for the following tasks:

1. Payment for foreign services (including incidental costs related to services).

2. Payment for goods and services provided by organizations and enterprises (organizations and enterprises authorized to receive foreign currency).

3. Withdrawal of foreign currency cash, transfer to cover expenses for staff working for the project implementing entities and participating entities when dispatched abroad for work and study, payment of salaries, bonuses, and other allowances for foreign staff working for the project implementing entities and participating entities.

Staff of the project implementing entities and participating entities temporarily advance project funds to attend conferences, seminars, visits, surveys, internships abroad must gather complete receipts and settle immediately upon return.

Article 25. All expenditure activities from aid funds must have specific budgets based on the annual budget already approved and based on the objectives already approved by the funding agency, the project implementing entities may not exceed the agreed amount with the funding organization.

In cases where the project documentation or agreement does not detail the expenditure level, the project implementing entity must spend according to the terms committed with the funding organization and based on the current expenditure standards of the State.

Article 26. Project implementing entities and participating entities using non-reimbursable aid, humanitarian aid to import goods and materials, the request for exemption from import duties shall be carried out in accordance with the provisions at Section I, Point 3, Section II Part D Circular No. 172/1998/TT-BTC dated December 22, 1998 of the Ministry of Finance on Exemption from Import Duties.

In cases of purchasing goods and materials, paying for domestic services, the request for refund of value-added tax shall be carried out in accordance with the provisions of Circular No. 122/2000/TT-BTC dated December 29, 2000 of the Ministry of Finance guiding the implementation of Decree No. 79/2000/NĐ-CP dated December 29, 2000 of the Government detailing the implementation of the Law on Value Added Tax (VAT).

Article 27. During the course of operations, if there is a need to adjust the budget (from one activity to another) but still within the overall project budget plan or an increase in the budget for the project, the project implementing entity must agree with the funding organization and report to the Ministry of Health (Planning Department) for consolidation and submission to the competent authorities for approval.

Article 28. Project implementing entities that are not provided with state counterpart funds (operating projects) and project proposals without a budget item for management work, the project implementing entity must mobilize existing internal resources (facilities, equipment, manpower) and arrange within the aid budget, spending economically to cover project management expenses but must not affect the project's implementation results. Any savings, the project implementing entity must base on the current expenditure standards of the State to prepare detailed budgets for each task and submit them to the Ministry of Health (Financial Accounting Department) for approval.

Article 29. Project implementing entities using aid funds to purchase, repair, upgrade equipment, construction, must comply with the current bidding regulations of the State (except in cases where international treaties provide otherwise). Project implementing entities may not break down procurement packages for equipment, construction, repair, and upgrading of fixed assets to bypass the bidding process.

Article 30. When negotiating with funding agencies to solicit aid, units must provide full information on the content, address, and code number of the Ministry of Health, account details, bank name, and bank code where the Ministry of Health has opened an account, and the name of the beneficiary agency (if notified separately) so that the funding agency can transfer funds. In cases where the information on the transfer order or check does not clearly identify the recipient unit, the Ministry of Health will notify the programs, projects, and units to supplement documentation proving their right to use the funds mentioned in the notification. Within 45 days from the date of the Ministry of Health's notification, if the recipient unit does not have sufficient documentation proving its right to use the funds, the Ministry of Health will report to competent authorities and take appropriate measures.

Chapter VI

REGIME OF REPORTING, SETTLEMENT, AND HANDOVER OF ASSETS

Article 31. Every quarter and annually, the Heads of Units directly implementing projects and using non-repayable aid must prepare reports on the receipt and use of aid and submit them to the Ministry of Health (Department of Finance and Accounting, Department of Planning). For reports of Units implementing projects managed and funded by the Project Management Board under the Ministry of Health, they must be submitted to the Board for consolidation and then sent to the Ministry of Health (Department of Finance and Accounting, Department of Planning) according to Form No. 5 issued along with this Regulation. The Ministry of Health (Department of Finance and Accounting) will compile all information on the receipt and use of aid within its management scope and send it to the Ministry of Finance.

Article 32. Project accounting records, ledgers, and vouchers must be arranged in chronological order and stored in accordance with legal regulations.

In cases where international treaties require original documents to be sent to the funding agency, the project manager must make copies of these documents, signed by the head of the unit and stamped by the agency, and prepare a list according to Form No. 6 issued along with this regulation. The copy of the original document will be used for recording in the accounting ledger and kept for preservation in accordance with the current management regime for original documents, serving as the basis for accounting checks and project settlement upon completion.

Article 33. Annual Settlement: Based on the guidelines for closing the accounting books at year-end for preparing reports on the settlement of state budget revenues and expenditures issued by the Minister of Finance and the guidelines of the Ministry of Health, Units implementing projects are responsible for preparing detailed reports on the settlement of aid as follows:

- Aid sources are settled under "operational expenses" Account 661, sub-account (6612) "Detailed expenditure of aid funds," including:

1. Funds and goods transferred by foreign organizations or individuals to Units implementing projects to perform certain tasks not included in the project.

2. Gifts, donations, and goods offered...

3. Funds transferred by international organizations to Units to implement service contracts: Research and investigation contracts, translation contracts...

4. Non-project aid and emergency relief.

- Aid sources are settled under "project expenses" (Account 662), including:

1. Funds and goods provided by aid organizations for approved projects to fulfill commitments to funding agencies.

2. Funds and goods from international organizations, domestic enterprises, and joint ventures supporting programs and objectives for implementation through projects.

The content and format of the settlement report are implemented according to Decision No.: 999 TC/QĐ/CĐKT dated November 2, 1996, by the Minister of Finance, Decision No. 144 BYT-QĐ dated January 31, 1997, by the Minister of Health regarding the issuance of the System of Administrative and Public Service Accounting Regulations; Circular No. 109/2001/TT-BTC dated December 31, 2001, by the Ministry of Finance guiding the accounting for receiving and using non-repayable aid, including:

B 01 - H: Account Balance Sheet

B 02 - H: Summary of Financial Resources and Settlement of Used Funds

B 03 - H: Report on Changes in Fixed Assets

B 05 - H: Explanation of Financial Statements

F02- 1H: Detailed Operational Expenses for Settlement Proposal. F02- 2H: Detailed Project Expenditures for Settlement Proposal.

For construction investment projects: Settlement procedures are carried out according to Circular No. 70/2000/TT-BTC dated July 17, 2000, by the Ministry of Finance, guiding the settlement of investment capital.

Article 34. For ongoing projects, the balance on the account at the end of the fiscal year is carried forward to the next year for continued implementation (except for counterpart funds on the limit account).

Article 35. Upon completion of the project, the Head of the Unit implementing the project is responsible for preparing a report on the settlement of the receipt and use of non-repayable aid, settling counterpart funds (if any), and other income such as proceeds from selling packaging materials, interest from bank deposits (for projects under international agreements with separate accounts at banks), proceeds from tender documents, bid bonds, performance bonds... itemized according to the items, sub-items, and minor items directly transferred by the direct management agency and approved by the competent authority.

Article 36. After the project settlement has been confirmed by the auditing agency (if applicable), the Head of the Unit implementing the project is responsible for submitting the report to the Ministry of Health (Department of Finance and Accounting) for review and approval. For Units implementing projects managed by Departments, Boards, and the Inspectorate of Health within the Ministry of Health, the reports should be submitted to the Project Management Board for consolidation and reporting to the Ministry of Health. Construction investment projects: Project settlement reports should be submitted to the Ministry of Health (Department of Medical Equipment and Construction) and the State Treasury.

Article 37. In cases where the implementing unit of the project is a subordinate administrative and public service unit of the Ministry of Health, which is also the point of contact for aid confirmation and receipt of aid funds and goods, but involves multiple participating units in different localities, Ministries, and sectors directly benefiting from the aid. Upon project completion or at the end of each phase, the implementing unit must report to the Ministry of Health to process the handover of funds at the end of each phase and the handover of resources (assets and funds) at the end of the project. The handover decision of the Ministry of Health serves as the basis for the implementing unit to reduce resources, participating units to increase resources, and settle accounts with the local Department of Finance and Prices, Department of Finance and Accounting, or the Finance and Accounting Board of Ministries and Sectors (except for programs and projects with specific provisions).

Article 38. Upon completion of the project, if there is surplus funding, the Head of the Implementing Unit must report and propose a handling direction to the Ministry of Health for consolidation and reporting to the Ministry of Finance for consideration and resolution (except for projects under international treaties with different provisions).

Article 39. Upon completion of the project and final settlement of the approved project, the Head of the Implementing Unit must proactively organize the transfer of assets based on the following principles:

1. Assets used by the Implementing Unit for directing and managing the project shall be transferred to the administrative management agency of the Implementing Unit.

2. Assets of the project equipped for participating units shall be transferred to the administrative management unit of the participating unit.

The acceptance, management, use, and transfer of assets must comply with the regulations stipulated in Decree No. 14/1998/NĐ-CP dated March 6, 1998, issued by the Government on state asset management, and Circular No. 43 TC/QLCS dated July 31, 1996, issued by the Ministry of Finance guiding the acceptance and transfer of assets between agencies and economic organizations according to the decision of the competent authority.

Chapter VII

INSPECTION AND SUPERVISION WORK

Article 40. The Head of the Implementing Unit must organize regular inspections or internal audits regarding the progress of achieving project objectives, financial management of the project in terms of accounting record-keeping systems, expenditure regulations, asset management, and retention of financial documents and financial reports. The Project Management Board of the Ministry of Health must regularly or unexpectedly inspect the Implementing Units under its management concerning financial management of projects and implementation of commitments to funding agencies.

Article 41. The Ministry of Health (Department of Finance and Accounting, Department of Planning) must regularly or unexpectedly organize inspections of financial accounting management of projects, progress, and content of projects, and cooperate with the Ministry of Finance to conduct unexpected inspections of Implementing Units and participating units regarding compliance with the State Budget Law, regulatory documents on foreign exchange management, state financial management, and asset management for non-reimbursable aid.

Article 42. Heads of Implementing Units receiving non-reimbursable aid must strictly manage, spend economically, and direct the finance management department to organize accounting records, maintain ledgers, and comply with financial reporting requirements as prescribed.