THE MINISTRY OF FINANCE
SOCIALIST REPUBLICOF VIETNAM Independence - Freedom- Happiness
No. 82/2007/TT-BTC
Ha Noi, July 12, 2007
 
CIRCULAR
GUIDING THE STATE FINANCIAL MANAGEMENT APPLICABLE TO FOREIGN NON-REFUNDABLE AID BEING STATE BUDGET REVENUES
Pursuant to the Government’s Decree 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the Law on State Budget;
Pursuant to the Government’s Decree 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance (ODA);
Pursuant to the Prime Minister’s Decision 64/2001/QD-TTg of April 26, 2001, promulgating the Regulation on management and use of foreign non-governmental aid;
Pursuant to the Government’s Decree 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance guides the state financial management applicable to foreign non-refundable aid (referred to as foreign aid) being state budget revenues as follows:
Part I
GENERAL PROVISIONS
I. GOVERNING SCOPE:
1. This Circular guides the financial management applicable foreign aid being state budget revenues, including:
1.1. Foreign aid being central budget revenues:
1.1.1. Foreign aid (of foreign governments, international organizations and transnational organizations) for the State or the Government of the Socialist Republic of Vietnam within the framework of official development assistance (ODA) cooperative activities between Vietnam and foreign donors (referred to as non-refundable ODA for short).
1.1.2. Aid of foreign non-governmental organizations, other organizations and foreign individuals which falls under the approving competence of the Prime Minister, ministers, heads of ministerial-level agencies and government-attached agencies or central agencies of mass organizations (specified at Points 1 and 2, Article 6, of the Prime Minister’s Decision 64/2001/QD-TTg of April 26, 2001, promulgating the Regulation on management and use of foreign non-governmental aid) and is provided directly or through Vietnamese non-governmental organizations to the following agencies:
a/ Government agencies (ministries, ministerial-level agencies and government-attached agencies);
b/ Central agencies of political organizations, socio-political organizations and socio-professional organizations;
c/ The National Assembly, the Supreme People’s Court, the Supreme People’s Procuracy;
d/ People’s Committees of provinces and centrally run cities;
e/ Agencies and units under and attached to above-said agencies;
1.2. Aid being local budget revenues, including:
1.2.1. Aid of foreign non-governmental organizations, other organizations and foreign individuals which is provided directly or through Vietnamese non-governmental organizations to localities and falls under the approving competence of provincial/municipal People’s Committee presidents (specified at Point 2, Article 6, of the Prime Minister’s Decision 64/2001/QD-TTg of April 26, 2001, promulgating the Regulation on management and use of foreign non-governmental aid).
1.2.2. Aid amounts within the framework of bilateral cooperation between domestic localities and foreign localities.
2. Aid amounts of non-governmental organizations, other organizations and foreign individuals which are provided directly for, and fall under the approving competence of, Vietnamese non-state organizations (including unions, general federations, associations, socio-political organizations, socio-professional organizations, social funds, charity funds and legal entities set up by unions, general federations and associations) constitute revenues of these organizations, are not state budget revenues and governed by this Circular
II. SUBJECTS OF APPLICATION:
This Circular applies to central agencies of the State or the Government of the Socialist Republic of Vietnam (ministries, ministerial-level agencies, government-attached agencies; the National Assembly, the Supreme People’s Court and the Supreme People’s Procuracy); local People’s Committees; political organizations, socio-political organizations, socio-professional organizations and units and organizations under and attached to above-said agencies.
III. FORMS OF NON-REFUNDABLE AID:
1. Non-refundable aid in kind:
1.1. Non-refundable aid in kind includes:
a/ Capital construction works built in turn-key form (including perennial forests) within the framework of foreign-aid programs and projects;
b/ Equipment, machinery, supplies, raw materials, utensils and goods.
1.2. Non-refundable aid in kind may be supplied under specific programs and projects or as non-project aid (separate aid, humanitarian aid, emergency relief in response to natural disasters, epidemics or wars).
2. Non-refundable aid in cash:
2.1. Non-refundable aid in cash means aid money or monetized aid goods. Non-refundable aid in cash may be in a foreign currency or Vietnam dong, in cash or account transfer.
2.2. Non-refundable aid in cash may be used for the execution of a specific program or project or transferred directly into the Vietnamese Government’s budget as budget support for the implementation of national target programs or socio-economic development programs of the Vietnamese Government.
3. Immaterial non-refundable aid:
Immaterial non-refundable aid means the free-of-charge transfer of intellectual property assets (copyright, work ownership, industrial property rights and technology transfer) by foreign parties or the payment of expenses for training, visits, surveys, seminars and specialists) by foreign parties with foreign aid funds under their direct management and spending.
IV. CONTENTS OF STATE FINANCIAL MANAGEMENT:
1. Owners of all programs and projects funded with non-refundable aid which are governed by this Circular shall abide by the state financial management.
When foreign aid treaties signed between the Vietnamese Government and donors contain commitments on financial management different from the provisions and guidance in this Circular, commitments of the Vietnamese Government in these treaties prevail.
2. Contents of state financial management include:
2.1. Elaboration and summing-up of state budget revenue-expenditure estimates for programs and projects funded with non-refundable aid;
2.2. Aid certification;
2.3. Spending control and state budget accounting of non-refundable aid;
2.4. Procurement regulations and spending levels applicable to non-refundable programs and projects;
2.5. Reporting, accounting, audit and settlement of non-refundable aid;
2.6. Management of capital and assets formed from non-refundable aid.
V. PROJECT-MANAGING AGENCIES AND PROJECT OWNERS/AID-BENEFITING UNITS:
1. Project-managing agencies are ministries, ministerial-level agencies, government-attached agencies, central agencies of socio-political organizations and socio-professional organizations, agencies attached to the National Assembly, the Supreme People’s Court, the Supreme People’s Procuracy and provincial/municipal People’s Committees which are assigned by the Government to manage foreign-aid programs and projects.
2. Project owners are units which are assigned by the Prime Minister or project-managing agencies to directly manage and use foreign aid capital and domestic capital for the implementation of programs or projects already approved by competent authorities and to manage and use works after foreign-aid projects or programs are completed.
Depending on the scope and characteristics of each specific program or project, the project-managing agency (for technical assistance programs and projects) or project owner (for investment programs and projects) may set up a project management unit which will assist these agencies in performing professional tasks, including aid certification declaration, procurement and spending, accounting, audit, settlement and reporting work specified in this Circular. In this case, the project-managing agency or project owner shall make an official authorization document or sign a work-assignment contract with the project management unit and send that document to the finance agency of the same level for the latter to guide and apply financial management applicable to the project management unit.
3. Aid-benefiting units:
3.1. For separate aid projects: Aid-benefiting units are also project owners.
3.2. For aid provided under a national program or a branch program: The project owner is a unit under the government agency which acts as the coordinating agency for the implementation of the program while the aid-benefiting unit may be a unit under another government agency or a provincial/municipal People’s Committee agency. In this case, the combined phrase “project owner/aid-benefiting unit” used in this Circular refers to either or both of these two units or organizations.
VI. ASSIGNMENT OF RESPONSIBILITIES FOR STATE FINANCIAL MANAGEMENT OF FOREIGN AID BEING STATE BUDGET REVENUES:
1. Responsibilities of finance agencies:
1.1. The Ministry of Finance: To perform the state financial management of foreign aid being central budget revenues (specified at Point 1.1, Section I, Part I, of this Circular) and have the following major tasks:
a/ To guide the implementation of financial management regulations applicable to foreign aid; to inspect the implementation of financial management regulations by central and local agencies which act as managing agencies of foreign aid programs and projects for the State or the Government of the Socialist Republic of Vietnam.
b/ To give aid certification and make budget accounting of foreign aid amounts being central budget revenues.
1.2. Provincial/municipal Finance Services: To perform the state financial management of foreign aid provided directly to localities and being local budget revenues (specified at Point 1.2, Section I, Part I, of this Circular) and have the following major tasks:
a/ To guide and inspect the implementation of financial management regulations applicable to foreign aid amounts provided directly to localities.
b/ To give aid certification and make budget accounting of foreign aid provided directly to localities.
c/ To coordinate with the Finance Ministry in making budget accounting of foreign aid being to central budget revenues which are targetedly allocated to local budgets.
2. Responsibilities of project-managing agencies and project owners/aid-benefiting units:
2.1. Project-managing agencies:
a/ To coordinate with finance agencies in directing, guiding and inspecting the implementation of financial management regulations and the use of foreign aid by their attached units.
b/ To elaborate and sum up aid revenue and expenditure estimates; to appraise, approve and notify the approval of aid settlement to subordinate estimating units.
2.2. Project owners/aid-benefiting units:
a/ To take the prime responsibility before law for the implementation of foreign-aid programs and projects in accordance with commitments in agreements on or documents of foreign-aid projects.
b/ To fill in and apply for finance agencies’ certification in aid certification declaration forms under the guidance in Section II, Part II of this Circular.
c/ To abide by financial management regulations under the guidance in this Circular.
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