Circular 23/2022/TT-BTC guiding the state financial management for foreign non-refundable aid belonging to the State budget revenues

CIRCULAR

Guiding the state financial management for foreign non-refundable aid belonging to the State budget revenues

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Pursuant to the Law on the State Budget dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Management and Use of Public Property dated June 21, 2017;

Pursuant to the Government’s Decree No. 163/2016/ND-CP dated December 21, 2016, on detailing a number of Articles of the Law on the State Budget;

Pursuant to the Government’s Decree No. 40/2020/ND-CP dated April 06, 2020, detailing the implementation of a number of articles of the Law on Public Investment;

Pursuant to the Government’s Decree No. 151/2017/ND-CP dated December 26, 2017, on detailing a number of articles of the Law on Management and Use of Public Property;

Pursuant to the Government’s Decree No. 114/2021/ND-CP dated December 16, 2021, on management and use of official development assistance (ODA) and concessional loans of foreign donors;

Pursuant to the Government's Decree No. 80/2020/ND-CP dated July 08, 2020, on management and use of on-refundable aid not belonging to official development assistance provided by foreign agencies, organizations and individuals for Vietnam;

Pursuant to the Government’s Decree No. 50/2020/ND-CP dated April 20, 2020, on receipt, management and use of international emergency aid for relief and remediation of natural disaster consequences;

Pursuant to the Government's Decree No. 11/2020/ND-CP dated January 20, 2020, on prescribing administrative procedures in the field of State Treasury;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At proposal of the Director of the Department of Debt Management and External Finance;

The Minister of Finance hereby promulgates the Circular guiding the state financial management for foreign non-refundable aid belonging to the State budget revenues.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular guides the state financial management for foreign non-refundable aid (hereinafter collectively referred to as aid) belonging to the State budget revenues, including:

a) Budget support aid for central budget or budgets of provinces or centrally-run cities (hereinafter collectively referred to as provincial-level budget).

b) Independent aid or aid attached to loans under programs and projects that are regarded as central budget spending tasks (including additional targeted spending tasks for provincial-level budget from central budget), or direct aid for programs and projects under the provincial-level spending tasks.

c) Non-project aid supporting the performance of central budget spending tasks, including additional targeted spending for provincial-level budget, or directly supporting the performance of provincial-level budget.

2. Expenditures, that are directly spent by the sponsor without sufficient dossiers and documents for accounting with the State budget or at the units, shall not be regulated by this Circular.

Article 2. Subjects of application

1. Managing agencies, project, program and non-project owners, agencies receiving aid amount belonging to the State budget revenue.

2. Finance agencies include: The Ministry of Finance (Department of Debt Management and External Finance, State Treasury, General Department of Vietnam Customs), Departments of Finance of provinces and centrally-run cities.

3. Commercial banks where the aid owners, or program and project owners open accounts receiving aid.

4. Other agencies, units and organizations, and individuals involved in the management and implementation of aid.

Article 3. Principles for financial management of aid amount

1. All aid amounts must be classified, managed, monitored and accounted according to each aid method (program, project or non-project); nature of the state budget expenditures (regular spending, spending for investment, development or other spending of the State budget), organization method (foreign party directly sponsors or entrusts another organization to implement, or program or project owner in Vietnam implements).

2. Non-refundable aid belonging to the State budget revenues shall be estimated and accounted in a sufficient and timely manner; settled according to regulations on settlement of State budget expenditures and revenues and settlement of expenditures of programs, projects and aid amounts.

3. Managing agencies shall be responsible for making estimates of State budget expenditures and revenues according to the implementation capacity in the year for receipt, implementation, accounting and settlement of the State budget expenditures and revenues for aid amount as prescribed in this Circular; promptly propose to allocate additional estimates in case of needing to irregularly collect or spend the aid amount. The aid shall only be received upon the need or use capacity.

4. The handling of year-end aid revenue and expenditure estimates shall comply with the law on the State budget management.

5. All monetary aid amounts directly managed and implemented by the Vietnamese program or project owner shall:

a) Be transferred to a separate account opened at the State Treasury or a commercial bank upon receipt; be monitored, accounted and finalized separately for each specific aid amount.

b) Not be transferred for a specific program or project to an individual, rented, borrowed or joint account of the agency or unit upon receipt. It is not allowed to open an overseas account to receive aid amount, unless otherwise prescribed by the law of sponsors and specified in the Aid Agreement/Aid Treaty.

6. For monetary aid amounts implemented by program and project owners in Vietnam, expenditures must be controlled in accordance with the law on control of State budget expenditures.

7. The accounting into the State budget shall be made on the basis of the proposal of the owners of programs, projects and non-projects; estimates assigned by competent authorities and payment records as prescribed.

8. For the aid amounts provided by sponsors in the form of goods, in kind, or works, including the turnkey aid, managing agencies shall take full responsibility for the management, monitoring, allocation and coordination with sponsors to determine the value of the in-kind aid given to Vietnamese party and make the State budget revenue and expenditure accounting and finalization according to regulations.

Article 4. Tasks and powers of finance agencies and commercial banks

1. The Ministry of Finance shall:

a) Guide the financial management regime for aid amount.

b) Inspect and supervise the implementation of regulations on state financial management in terms of management and use of aid from the central budget.

c) Appraise the annual finalization of the central budget expenditures and revenues.

2. Provincial-level Departments of Finance shall:

a) Inspect and supervise the implementation of regulations on state financial management for the management and use of aid of the local budget.

b) Appraise the annual finalization of the provincial budget expenditures and revenues.

c) Perform the reporting responsibilities according to the provisions of law and this Circular.

3. The State Treasury shall:

a) Open aid accounts for aid-receiving agencies.

b) Monitor the aid amounts transferred to the accounts of program and project owners and perform the control of expenditure, disbursement, accounting, and recording of State budget revenues and expenditures for aid according to regulations.

c) Perform the reporting responsibilities according to the provisions of law and this Circular. For aid under the domestic financial mechanism, the reporting shall comply with the Ministry of Finance's Circular No. 15/2021/TT-BTC dated February 18, 2021, on regulations on regimes and forms for reporting on the implementation and payment of the public investment capital plan.

4. Customs Offices shall:

a) Conduct inspection and customs clearance for aid being goods according to regulations.

b) Comply with reporting regimes as prescribed by law.

5. Commercial banks

Commercial banks where the program or project owner opens accounts receiving aid shall disburse the aid and provide information and reporting regimes in accordance with the law and this Circular.

Article 5. Tasks and powers of the governing bodies

1. Direct, guide and inspect affiliated units in properly implementing the financial management regime for aid according to the law and this Circular.

2. Make and synthesize financial plans for foreign aid of subordinate or affiliated units according to annual state budget estimates; allocate State budget estimates of aid amount for subordinate or affiliated units according to regulations.

3. Verify and approve the annual finalization of foreign aid of the State budget for lower-level estimating units; summarize the annual State budget finalization report of aid as prescribed.

4. Verify, approve or submit to competent authorities for approval of the finalization of completed programs, projects, or aid amounts in accordance with regulations on the finalization of programs, projects, and aid amounts; organize the management and accounting of assets formed from aid amounts, aid programs or projects according to regulations.

5. Implement the reporting regime on the financial management of aid amounts, aid programs and projects in accordance with law and this Circular and take responsibility for the accuracy of these reports.

6. Send to the Ministry of Finance, for aid belonging to the central budget's revenue, or to the provincial-level Departments of Finance, for aid from the provincial budget's revenue, a copy of the decision approving the program, project or non-project, and Aid Agreement/Aid Treaty within 10 working days from the date of circulation of these documents.

Article 6. Responsibilities of aid owners, aid program and project owners

1. Comply with the regulations on financial management regime according to the guidance in this Circular;

2. Take responsibility before law for the receipt of aid amounts, the implementation of aid programs, projects and non-projects in accordance with the provisions of law, aid agreements, treaties and decisions on approval of aid amounts or decisions on approval of aid programs, projects and non-projects of competent authorities.

3. Formulate annual, 3-year and 5-year estimates of aid expenditures and revenues and submit them to managing agencies for summarization and implementation of estimates of aid expenditures and revenues assigned by competent authorities according to regulations.

4. Make annual and complete finalization of aid programs, projects and non-projects according to the provisions of law and this Circular.

5. Fully and promptly report to managing agencies on the status of receipt, management and use of aid capital as prescribed.

6. Formulate reports, dossiers and documents and send them to the State Treasury where the transactions are carried out for accounting State budget revenues and expenditures for the received and used aid. Formulate annual aid finalization reports and aid amount finalization reports, completed aid program, project and non-project finalization reports for submission to competent authorities for consideration and approval in accordance with regulations on finalization of the State budget, programs, projects, or non-projects and aid amounts.

7. Organize the management of assets received and/or formed from aid programs and projects; make asset accounting at the receiving unit according to regulations.

Chapter II

SPECIFIC PROVISIONS

Section 1. STATE BUDGET REVENUE AND EXPENDITURE PLANS, FINANCIAL AID PLANS AND AID ESTIMATES

Article 7. Plans for State budget revenues and expenditures from aid source according to each program, project, and non-project

1. Plans for State budget revenues and expenditures from aid source according to each program, project, and non-project shall be regarded as a part of the State budget revenue and expenditure plan, including 5-year and 3-year budget finance plans and annual State budget revenue and expenditure plans.

2. Forms, order of preparation and approval of 5-year and 3-year state budget revenue and expenditure plans from aid source shall be made according to the Law on the State Budget and guiding documents.

Article 8. Financial aid plan for programs, projects and non-projects

1. On an annual basis, program and project owners (except for program and project owners being enterprises with state capital) shall make financial aid plans for programs, projects and non-projects that are approved by competent authorities and will be implemented within the planning year.

2. The aid agreements, decisions approving the aid amounts or decisions approving the programs or projects using aid issued by competent authorities shall be the basis for making the plans.

3. Contents of a financial plan include:

a) Method of implementing aid amount or aid program, project or non-project.

b) The capital withdrawal plan, the method of capital withdrawal from sponsors.

c) Plan on the use of aid and State budget accounting.

4. The financial aid plans shall be developed together with the annual State budget revenue and expenditure estimate and sent to managing agencies for approval to send to the Ministry of Finance (Department of Debt Management and External Finance) for aid belonging to central budget revenues, or send it to the provincial-level Departments of Finance, for aid belonging to provincial budget revenues for coordination in the financial management of aid amounts, programs, projects, and non-projects using aid that have not yet been accounted and finalized into the state budget.

Article 9. Estimates of annual state budget revenues and expenditures from aid

1. Contents of the estimate arrangement proposal made by the managing agency:

a) Plan on disbursement of the aid of each program, project, aid amount, including programs, projects, grants arising in the year and programs, projects, and aid amounts carried forward from the previous year.

b) For programs, projects, and aid amounts lasting for several years, it is required to clearly state the total approved aid amounts, accumulated aid amounts expected to be implemented by the beginning of the estimated year, and the implementation progress of programs, projects and aid amounts in the estimated year.

c) Sources and structure of the estimate include recurrent expenditure, public investment expenditure, capital investment expenditure for enterprises, economic organizations or other expenditures; separated by spending tasks of the central budget (including targeted additional expenditures for the provincial budget), spending tasks of the provincial budget from aid amounts.

d) Evaluation of the ability to make the estimate: detailed explanations for each aid amount, program or project; total aid amount approved by competent authorities, accumulated disbursed capital at the beginning of the estimated period, undisbursed capital, expected activities and expenditures in the estimated period; evaluation of the results of implementation of the assigned estimates of the last 2 years, for programs and projects with an implementation duration of more than 2 years up to the estimated year; evaluation of the estimated progress of the program or project in the estimated year.

2. Budgeting agencies:

a) For aid belonging to the central budget's revenue, managing agencies shall send to the Ministry of Planning and Investment for summarizing investment expenditures, send to the Ministry of Finance for summarizing the recurrent expenditures and other expenditures (if any) to aggregate into the central budget revenue and expenditure estimates according to regulations, and report them to competent authorities for reviewing and decision.

b) For aid belonging to the provincial budget revenue, the governing body shall send to the provincial-level Department of Planning and Investment for summarizing investment expenditures; send to the provincial-level Department of Finance for summarizing the remaining expenditures to aggregate into the provincial budget revenue and expenditure estimates according to regulations, and report it to competent authorities for reviewing and decision.

3. After the annual state budget expenditure estimates are assigned by competent authorities, before December 31 of each year, ministries, ministerial-level agencies, government-attached agencies, other central agencies, and provincial-level People’s Committees shall complete the assignment of budget estimates to each affiliated agency or unit for each program or project within the total expenditure estimate assigned by competent authorities and send it to the Ministry of Finance (recurring expenditures) and the Ministry of Planning and Investment (investment expenditures) for aid amounts falling under the spending tasks of the central budget; send to the provincial-level Department of Finance (recurring aid) and the provincial-level Department of Planning and Investment (investment aid) for aid amounts falling under the spending tasks of the provincial budget for monitoring and management.

4. For aid amounts arising after the time of submitting the estimate, based on the ability to make state budget expenditures, managing agencies shall make an additional estimate and send it to finance agencies for summarization and submission to competent authorities for reviewing and decision in accordance with the law on state budget for use as a basis for accounting and finalization of state budget revenues and expenditures.

5. The proposal to adjust and supplement estimates of state budget revenues and expenditures from aid must ensure the implementation ability of program, project and non-project owners.

6. For aid in goods, in kind or turnkey works made by sponsors in Vietnam and handed over to Vietnamese receiving agencies, if at the time of delivery of goods, objects, and works for which no state budget revenue and expenditure estimates have been decided by competent authorities, managing agencies of the aid shall make a proposal for adjustment, supplement estimates of state budget revenues and expenditures according to the provisions of the Law on State Budget in order to perform the accounting of state budget revenues and expenditures.

Article 10. Cancellation of estimates or transferring of revenue estimates

1. Cancellation of estimates for unused budget balance and/or undefined spending tasks after the end of the state budget finalization adjustment period.

2. For aid amount estimates for which specific spending tasks have been identified, organized for implementation but have not been completed in the estimated year, that are eligible for revenue transfer according to the provisions of law on state budget:

The Ministry of Finance shall certify the estimates for which the source is changed for the central budget expenditure estimates, the provincial-level Department of Finance shall certify the transferred estimates for the provincial budget expenditure estimates of programs and projects to serve as a basis for making estimates, verifying and finalizing state budget expenditures.

Section 2. FINANCIAL MANAGEMENT REGIME IN THE FORM OF AID

Article 11. Aid amounts in cash to support the budget

1. Disbursement and payment of aid amounts in cash to support the budget

a) Based on aid treaties and agreements, the Ministry of Finance shall coordinate with sponsors in disbursing aid to the state budget and transferring foreign currencies to the centralized foreign currency fund of the state budget.

b) For targeted budget support aid amount, after disbursing to the state budget according to the provisions of Point a of this Clause, if the aid is permitted by competent authorities to be used for specific programs or projects, based on the approved state budget revenue and expenditure estimate, the decision on approval of the program or project and the implementation schedule of a specific program or project, the program or project owner shall withdraw estimates from the State Treasury in accordance with the law on management of state budget expenditures.

2. State budget accounting for aid amounts in cash to support the budget

a) Accounting State budget revenues: Based on transfer documents of sponsors and the notice of the finance agencies, the State Treasury shall account state budget revenues in Vietnam dong.

b) Accounting State budget expenditures: The expenditure and accounting of state budget expenditures shall comply with the law on state budget.

Article 12. Aid amounts in cash for programs, projects and non-projects implemented by Vietnamese program and project owners

1. Opening accounts to receive aid

Pursuant to the aid agreement and the decision approving the program, project or aid, program, project or non-project owners shall open an account to receive aid at the State Treasury or a commercial bank according to Clause 5, Article 3 of this Circular Within 15 days from the date of account opening, a report shall be sent to the Ministry of Finance, for aid under revenues of the central budget or the provincial-level Department of Finance, for aid under revenues of the provincial budget, concurrently, information on the account receiving aid shall be sent to the State Treasury.

2. Spending control, disbursement, accounting of aid

a) Spending control

Program, project or non-project owners shall control expenditures at the State Treasury where they registered for each expenditure out of aid according to regulations on state budget management. The order and procedures for controlling expenditures shall comply with the law on administrative procedures in the field of the State Treasury.

b) Disbursement of aid

The disbursement of aid from an account opened at the State Treasury or a commercial bank shall be based on the aid agreement, the decision approving the program, project or non-project by competent authorities and state budget expenditure estimates; implementation progress of programs and projects and confirmation of expenditure control by the State Treasury.

For expenditures from aid that are not certified by the State Treasury to control expenditures, program, project and non-project owners shall refund the aid to the aid-receiving account.

c) Accounting of aid into the state budget

On a monthly basis or every time when the expenditure is incurred from aid accounts, on the basis of expenditure control, records of revenue and expenditure according to the Government's regulations on administrative procedures in the field of State Treasury of program and project owners, the State Treasury shall account the revenues and expenditures of the central budget or the provincial budget according to the decentralization of state budget management under regulations on the basis of the aid-receiving agency.

In the case of ODA grants with managing agencies being provincial-level People's Committees, the central budget's aid collection and expenditure accounting shall be made to targetly supplement the provincial budget. At the same time, accounting for provincial-level budget revenues from targeted additional revenues of the central budget and expenditures for programs and projects.

d) For aid that has been received into accounts opened at commercial banks but has not yet been spent and has not yet been accounted into state budget revenues and expenditures, within 05 working days after receiving the disbursement from sponsors, the program or project owners shall be responsible for notifying in writing, with documents to credit the account, sending them to the State Treasury and the Ministry of Finance (Department of Debt Management and External Finance) for aid under central budget revenues or the provincial-level Department of Finance for aid under provincial budget revenues for the State Treasury to monitor the amount of aid received by program and project owners and finance agencies to make statistics. At the same time, program or project owners shall notify managing agencies to manage the received aid.

In case the program or project owners have received the aid but have not yet notified the State Treasury where the transactions are carried out, the State Treasury shall not control expenditures for the program or project.

dd) Every month, the commercial banks where the program or project owners using aid from the state budget revenues open their accounts shall send account statements to program and project owners and send the State Treasury for coordination in management.

3. In case program or project owners are state-owned enterprises, the accounting shall be done as follows:

a) For enterprises in which 100% of charter capital is held by the State, in case of being eligible to receive aid as prescribed in the Law on State Budget and Law No. 69/2014/QH13 of the National Assembly on Management and Use of State Capital Invested in Production and Business at Enterprises and relevant laws, based on decisions of competent authorities permitting the increase of charter capital at enterprises, used aid may be accounted as state budget revenues and expenditures to increase state capital at the enterprise.

For enterprises in which the State holds from over 50% to less than 100% of charter capital or total voting shares, in case of being eligible to receive aid and approved by competent authorities according to the provisions of the Law on State Budget, the Law on Enterprises, the charter of the enterprise and relevant laws, the used aid can be accounted as state budget revenues and expenditures to increase state capital in enterprises.

b) For a number of other expenditures that are eligible for implementation as prescribed, the state budget revenues and expenditures shall be accounted according to the law on state budget.

Article 13. Aid in kind, goods and services, including aid directly made by sponsors in Vietnam under the turnkey method

1. The accounting of state budget shall comply with Clause 4 Article 24 of the Government's Decree No. 80/2020/ND-CP dated July 8, 2020, on management and use of non-refundable aid not belonging to official development assistance provided by foreign agencies, organizations and individuals for Vietnam; Clause 3 Article 90 of the Government’s Decree No. 114/2021/ND-CP dated December 16, 2021, on the management and use of official development assistance and concessional loans of foreign donors; and Clause 1 Article 21 of the Government’s No. 50/2020/ND-CP dated April 20, 2020, on receipt, management and use of international emergency aid for relief and remediation of natural disaster consequences, based on the aid agreement, the decision approving the receipt of the aid, the dossiers of goods of which the ownership is transferred to the Vietnamese Party, including bills of lading, invoices, handover minutes and other relevant documents as prescribed by law and in the aid agreement.

2. For aid in kind, goods and services directly implemented or entrusted by the foreign sponsors to a unit other than the owner of the program, project or non-project in Vietnam, and aid in form of turnkey: Managing agencies shall be responsible for determining the value of the foreign sponsors' aid in kind, goods and services.

Section 3. ACCOUNTING RATES, ACCOUNTING ADJUSTMENTS AND EXPENDITURE LIMITS

Article 14. Accounting rates of state budget

1. For monetary aid amount for programs or projects, the rates specified in Article 78 of the Government's Decree No. 114/2021/ND-CP dated December 16, 2021, on management and use of official development assistance and concessional loans of foreign donors, shall be applied.

2. For aid in kind, goods and services, the state budget accounting rates announced by the Ministry of Finance (the State Treasury) at the time of accounting for the aid shall be applied.

Article 15. Adjustment of state budget revenue and expenditure accounting

For errors in the process of accounting for state budget revenues and expenditures, adjustments to state budget accounting shall be made in accordance with the law on the state budget. For the accounting adjustment year:

1. Revenues and expenditures that have not yet been finalized into the state budget shall be adjusted in the accounting year.

2. Revenues and expenditures that have been finalized into the state budget shall be adjusted in the current year.

Article 16. Expenditure limits

1. Limits on expenditure counterpart fund: apply legal provisions on management of state budget expenditures.

2. Limits on expenditure aid:

a) Expenditures of aid shall apply the limits imposed by aid donors or stated in treaties or agreements.

b) For particular expenditures, in the absence of regulations of sponsors and provisions of international treaties, agreements and regulations of law on expenditure limits, managing agencies shall formulate expenditure limits and collect opinions without objection from sponsors and reach an agreement with the Ministry of Finance for decision and implementation.

c) For expenditures not falling into the cases specified at Points a and b, Clause 2 of this Article, domestic expenditure limits shall be applied.

Section 4. PROPERTY MANAGEMENT

Article 17. Management of aid property

1. The management, use and handling of property formed from foreign non-refundable aid belonging to the state budget (except for assets specified in Clause 2 of this Article) shall comply with the law on management and use of public property.

a) During the implementation of aid programs, projects or non-projects, managing agencies and owners of the programs, projects, or non-projects shall account for the state budget, manage and use the program, project and non-project property in accordance with the law on public property.

b) At the end of aid programs or projects, managing agencies shall direct owners of the aid programs, projects or non-projects to hand over property to exploitation and operation units in accordance with the aid treaty/aid agreement, program and project documents approved by competent authorities and relevant laws.

c) The handling of property formed from aid programs, projects and non-projects shall comply with the law on the management and use of public property.

d) The agencies and units receiving property shall be responsible for accounting the property into the state budget, managing public property, using it for the right purposes, and receiving the property according to regulations.

2. For property formed from aid belonging to state budget investment and capital supported for enterprises as prescribed at Point b, Clause 1, Article 36 or Point b, Clause 1, Article 38 of the Law on State Budget and Law No. 69/2014/QH13 dated November 26, 2014, on Management and Use of State Capital Invested in Production and Business at Enterprises, the management and use shall comply with the law on management and use of state capital invested in production and business at enterprises, the law on management and use of public property and relevant laws.

3. For property formed from aid in goods and in kind purchased and provided by sponsors for the Vietnamese party, or conducted by a foreign party in Vietnam and handed over to the Vietnamese party, the receiving unit shall coordinate with the State Treasury in accounting for the state budget revenues and expenditures; at the same time, accounting for an increase in property at the unit as prescribed.

Section 5. ACCOUNT FINALIZATION AND AUDIT

Article 18. Account finalization of aid from the state budget and account finalization of programs and projects using aid

1. The finalization of annual state budget aid shall be made on the basis of:

a) State budget revenue and expenditure estimates decided by competent authorities.

b) The Ministry of Finance shall make the finalization within the assigned estimate according to the state budget accounting numbers of the State Treasury on the basis of records of appraisal/approval of the budget finalization with managing agencies.

c) The estimated balance not used up to the end of the time for adjustment of state budget finalization shall be canceled, except for the amount authorized by competent authorities to change the source as prescribed.

d) Managing agencies shall be responsible for finalization of the funding with the subordinate estimating unit in accordance with the law on the state budget.

2. The finalization of programs, projects using aid shall comply with the law on finalization of programs, projects or non-projects funding.

3. The finalization of completed projects shall comply with regulations of the Ministry of Finance’s Circular No. 10/2020/TT-BTC date February 20, 2020, providing for finalization of completed projects using state funding sources.

Article 19. Audit

1. Audit of aid projects shall be carried out according to the provisions of the aid agreement and the provisions of Vietnamese law.

2. In case of independent audit: Project owners shall send or request aid sponsors to send annual reports on independent audit or thematic audit to managing agencies and finance agencies at the same level to monitor and serve the settlement of financial aid provided for projects.

Section 6. REPORTING REGIME

Article 20. Reporting regime on the receipt of aid by managing agencies

1. Types of reports:

a) Report on the receipt and use of monetary aid on a monthly, 6-monthly and annual basis.

b) Report on the receipt and use of aid in goods and services on a monthly, 6-monthly and annual basis.

c) Report on the accounting of revenue and expenditure of aid on a monthly, 6-monthly and annual basis.

2. Reports must specify:

a) Report on the receipt and use of monetary aid in detail according to the list of each program, project, non-project and each funding source. Content includes: balance at the beginning of the period on the account receiving aid; the amount of aid received during the period; the amount of aid used in the period, the ending balance on the account receiving aid.

b) Report on receipt and use of aid in goods and services in detail according to the list of each aid in goods and services and by each funding source. Content includes: quantity, type and value of goods and services allowed to receive; quantity, type and value of goods and services received in the period; unaccepted value at the end of the period.

c) Report on the accounting of aid in detail according to the list of each program, project, non-project and each funding source. Content includes: the amount of aid that has been accounted as state budget revenue and expenditure in the period, the amount already used but not yet accounted in the state budget revenue and expenditure.

3. Reporting agencies: Managing agencies of programs, projects or non-projects.

4. Report-receiving agencies:

a) The Ministry of Finance for aid belonging to central budget revenues.

b) Provincial-level Departments of Finance for aid belonging to local budget revenues.

5. Time for reporting data closing:

a) Monthly reports: The reporting data is counted from the 1^st of each month to the last day of the reporting month.

b) 6-monthly reports: Time for closing data for the first 6 months of the year is from January 1 to June 30 of the reporting period. Time for closing data for the last 6 months of the year is from July 1 to December 31 of the reporting period.

c) Annual reports: From January 1 of the reporting year to January 31 of the following year.

6. Deadline for submitting reports:

a) Monthly reports shall be sent no later than the 10^th of the following month.

b) For the 6-monthly and annual reports, the report shall be sent no later than July 31 for the reporting period from January 1 to June 30 of each year, February 15 of the following year for the reporting period from July 1 to December 31 of each year and February 28 of the following year for the reporting period from January 1 to January 31 of the following year.

7. Forms of reports: Forms 01, 02 and 03 provided in Appendix 1 to this Circular.

8. Method of reporting: Managing agencies shall make online reports through the Information and Reporting System of the Ministry of Finance. In case this system has not been put into operation, managing agencies shall report in paper form (directly submit or sent by postal service) or electronic version (via the Document and Administration System/E-mail system at [email protected]).

For aid from local budget revenues (for agencies that have not yet received and submitted electronic documents), the report shall be made in writing and directly submit or sent by postal service.

Article 21. Reporting regime of provincial-level Departments of Finance and State Treasury

1. Provincial-level Departments of Finance shall submit to the Ministry of Finance a report on the receipt and use of aid every 06 months and within the scope of the local budget.

a) The content of data reports detailing to funding capital (aid belonging official development assistance and aid not belonging to official development assistance) includes: amount of aid received during the period, amount used in the period; accounting of local budget revenue and expenditure in the period.

b) Time for reporting data closing reporting deadline:

For reports for the first 6 months of the year from January 1 to June 30 every year, the deadline for reporting is August 10 of each year; for reports for the last 6 months of the year from July 1 to December 31, the deadline is February 15, and for annual reports from January 1 of the reporting year to January 31 of the following year, the deadline for reporting is March 10 of the following year.

c) Forms of reports: Form 01 Appendix 2 attached to this Circular.

d) Method of reporting: Provincial-level Departments of Finance shall make online reports through the Information and Reporting System of the Ministry of Finance. In case this system has not been put into operation, provincial-level Departments of Finance shall report in paper form (directly submit or sent by postal service) or electronic version (via the Document and Administration System/E-mail system at [email protected]).

2. The State Treasury shall send monthly, 6-monthly and annual reports to the Ministry of Finance, for aid belonging to the central budget revenues or provincial-level Departments of Finance, for local budget revenues:

a) Report name: Report on state budget revenue and expenditure accounting.

b) The content of the report on expenditure control data and detailed state budget revenue and expenditure accounting for each program, project or non-project includes: The balance at the beginning of the period on the account receiving aid, the value of the aid received in the period, the value of expenditure control in the period and accounting value of state budget revenues and expenditures in the period.

c) Time for reporting data closing and reporting deadline:

For monthly reports from the 1^st of each month to the last day of the month, the reporting deadline is not later than the 5^th of the following month; For reports for the first 6 months of the year from January 1 to June 30, the deadline for reporting is not later than July 15 of each year; For reports for the last 6 months of the year from July 1 to December 31, the deadline for reporting is not later than February 15 of the following year; For annual reports from January 1 every year to January 31 of the following year, the deadline for reporting is not later than February 28 of the following year.

d) Forms of reports: Form 02 Appendix 2 attached to this Circular.

dd) Method of reporting:

For aid belonging to the central budget revenue, the State Treasury shall make online reports through the Information and Reporting System of the Ministry of Finance. In case this system has not been put into operation, implementation agencies shall report in paper form (directly submit or sent by postal service) or electronic version (via the Document and Administration System/E-mail system at [email protected]).

For aid belonging to local budget revenues, local State Treasuries (for agencies that have not yet received and submitted electronic documents) shall report in writing, sent in person or send by postal service.

Article 22. Reporting regime on aid belonging to state budget revenues via bank accounts

Every month, before the 5^th of the following month, the commercial bank where the project owner opens the account receiving aid shall make a report on the state budget revenue and expenditure transactions through the account receiving aid in the month, and send to the Ministry of Finance (Department of Debt Management and External Finance) for the aid amounts belonging to the expenditure tasks of the central budget, and send to the provincial-level Department of Finance for the aid amounts belonging to the expenditure tasks of the provincial budget.

1. Report name: Report on state budget revenue and expenditure transactions via monthly aid-receiving account.

2. Reports must specify: the balance of aid at the beginning of the period, the amount arising increases in the period, the amount arising decreases in the period, the balance at the end of the period, details for each account receiving aid; in original currency received and exchanged into USD or Vietnam dong at the buying rate of the commercial bank's original currency at the end of the reporting period.

3. Time for reporting data closing and reporting deadline: For monthly reports for the period from the 1^st of each month to the last day of the month, the deadline for submitting reports is not later than the 5^th of the following month.

4. Forms of reports: Appendix 03 attached to Circular.

5. Method of reporting: Reports shall be sent by mail and electronic data files.

6. For commercial banks that fail to properly report information on state budget revenue and expenditure transactions as prescribed in this Circular and relevant laws, and fail to remedy them within 30 days from the date of notification of the Ministry of Finance, for aid belonging to expenditure tasks of the central budget, or of the provincial-level Department of Finance, for aid belonging to expenditure tasks of provincial budget, they shall be ineligible for acting as a bank serving projects using aid.

Chapter III

IMPLEMENTATION PROVISIONS

Article 23. Effect

1. This Circular takes effect on May 20, 2022 and replaces the Ministry of Finance’s Circular No. 225/2010/TT-BTC dated December 21, 2010, guiding the state financial management applicable to foreign aid belonging to the state budget revenues.

2. To annul the Ministry of Finance’s Circular No. 109/2007/TT-BTC dated September 10, 2007, guiding the state financial management of foreign non-governmental aid not constituting a state budget revenue source.

3. In case the documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 24. Transitional provisions

1. For ODA approved before the effective date of the Government's Decree No. 114/2021/ND-CP, on the management and use of official development assistance and concessional loans of foreign donors (December 16, 2021) and aid not belonging to official development assistance of foreign agencies, organizations and individuals for Vietnam that is approved before the effective date of the Government's Decree No. 80/2020/ND-CP, on management and use of non-refundable aid not belonging to official development assistance provided by foreign agencies, organizations and individuals for Vietnam (September 17, 2020), the provisions of Circular No. 225/2010/TT-BTC dated December 31, 2010 shall continue to be applied until the end of the aid amount stated in the approval decision of competent authorities. In case of adjustment to prolong the implementation duration of the aid, the finance management shall comply with the provisions of current law at the time of adjustment of the programs or projects.

2. Any difficulties arising in the course of implementation, the Ministry of Finance shall, based on other agencies’ feedback, amend and supplement accordingly./.