In Vietnam, what are regulations on financial planning of grant aid capital classified as the state budget revenue?
What are regulations on financial planning of grant aid capital classified as the state budget revenue in Vietnam? What are regulations on control of expenditures, disbursement, accounting and recording of revenues and expenditures of grant aid capital in cash in Vietnam? I would like to know some information related to the management and use of aid in Vietnam. Thank you!
<subquestion>What are regulations on financial planning of grant aid capital classified as the state budget revenue in Vietnam?</subquestion>
Pursuant to Article 22 of the Decree 80/2020/NĐ-CP stipulating financial planning of grant aid capital classified as the state budget revenue in Vietnam as follows:
1. Based on the decision on approval for project or non-project documents or decision on investment in program or project, the project owner shall elaborate 3-year aid capital expenditure estimates and grant aid spending and expenditure estimates in accordance with the Law on State Budget and relevant laws and send them to the managing agency for consolidation.
2. The estimation of revenue and expenditure estimates of aid classified as annual state budget revenues shall be detailed according to each donor, program, project or non-project.
3. Making, synthesizing, submitting, approving, assigning and adjusting plans of aid capital:
a) Aid capital used for public investment shall comply with the law on public investment;
b) Aid capital used for regular spending shall comply with the provisions of law on state budget.
4. On the basis of the annual capital limit assigned by the competent agencies, the managing agencies shall make detailed allocation for each program, project and non-project and notify the Ministry of Finance and the Ministry of Planning and Investment on the detailed allocation plan.
5. The managing agency shall direct and organize the implementation of cost estimates and report on the implementation of aid budget revenue and expenditure plans according to current regulations.
<subquestion>What are regulations on control of expenditures, disbursement, accounting and recording of revenues and expenditures of grant aid capital in cash in Vietnam?</subquestion>
Pursuant to Article 23 of the Decree 80/2020/NĐ-CP stipulating control of expenditures, disbursement, accounting and recording of revenues and expenditures of grant aid capital in cash in Vietnam as follows:
1. Project owners shall control expenditures at the State Treasury according to the regulations on state budget management of aid capital classified as state budget revenues. Procedures for controlling expenditures, accounting, recording revenues and expenditures comply with the law on administrative procedures in the sector of the State Treasury.
2. A dossier of expenditure control sent to the State Treasury for the first time comprises:
a) A decision on budget estimate assignment or supplementation of budget estimate assignment by the competent authority;
b) A certified true copy of the written agreement on commitment and receipt of aid capital;
c) A certified true copy of the decision on approval for program/project documents or the approved program investment decision and project documents;
d) Contract of procurement of related goods and services (if any). In case of signing in a foreign language, enclose the Vietnamese translation with the signature and seal of the project owner. The project owner shall take legal responsibility for the correctness and accuracy of the Vietnamese translation contents;
dd') A written request for certification of valid non-business capital expenditure, or a written request for payment of investment capital of the project owner according to the Government's regulations on administrative procedures in the field of State Treasury.
3. Dossier of installment payment sent to the State Treasury complies with regulations on expenditures of state budget capital.
4. Disbursement of aid capital classified as state budget revenue in cash for program or project: Based on the results of expenditure control, at the request of the project owner, the State Treasury or commercial bank shall disburse for the project as prescribed; send monthly notification of the aid capital disbursement amount of each account holder for each program or project to the Ministry of Finance.
5. Recording of revenues and expenditures for projects funded by aid classified as state budget revenues:
a) Monthly or from time to time, based on the results of expenditure control, the State Treasury shall concurrently record revenue and expenditure as prescribed. In case the project owner opens an aid capital account at a commercial bank, in addition to the above-mentioned dossier, the project owner encloses with a list of payment statements from the aid capital account at the commercial bank;
b) The State Treasury shall account it into the state budget according to aid spending contents in the state budget entries according to regulations. Advances shall be recorded according to the regime of making advance payment entries. The advances recovered shall be recorded as decrease in advance payments. The payment of completed volumes of shall be recorded as revenues and expenditures actually spent and made the annual budget settlement;
c) Time of accounting shall conform to current regulations on state budget capital.
6. The advance payment and control of expenditures from aid capital sources classified as state budget revenues in cash comply with current regulations on state budget capital.
7. Interests on aid capital deposit accounts must be separately accounted and used to pay banking service charges according to regulations. Banking service fee is a project expense.
8. When finishing spending activities on grant aid capital accounts at commercial banks, in cases where there is no commitment in the approved project documents on the use of aid deposit interests, the project owner shall pay all interest amounts earned on deposit accounts into the state budget according to current regulations. The use of the earned interest balance shall comply with the provisions of law on public investment and state budget.
9. For aid not classified as state budget revenue:
a) The accounting, accounting and settlement of aid amounts not classified as state budget revenue shall comply with the law provisions on accounting and the organization and operation regulations of the aid recipient. The project owner shall prepare an annual report on aid settlement and upon completion of the project on the basis of quarterly disbursement data, which have been collated with the commercial bank where the aid-receiving account is opened and the aid donor, to send to the managing agency for approval of settlements;
b) The managing agency shall approve settlements, sum up and send to the Ministry of Finance, the Ministry of Planning and Investment and relevant agencies;
The time when the managing agency approves the annual settlement report for the project and summarize and send to the Ministry of Finance, Ministry of Planning and Investment and relevant agencies: no later than June 30 every year.
