Bản dịch văn bản 44/2002/TTLT/BTC-BYT
thong-tu-lien-tich-44-2002-ttlt-btc-byt
Cơ quan ban hành: Bộ Tài chính
Ngày ban hành: 2002-05-08

JOINT CIRCULAR No. 44/2002/TTLT-BTC-BYT OF MAY 8, 2002 GUIDING THE MECHANISM FOR FINANCIAL MANAGEMENT OF THE RURAL HEALTH PROJECT (USING LOAN CAPITAL OF THE ASIAN DEVELOPMENT BANK) Pursuant to the Government's Decree No.17/2001/ND-CP of May 4, 2001 promulgating the Regulation on management and use of official development assistance sources; Pursuant to the Government's Decree No.52/1999/ND-CP of July 8, 1999 promulgating the Regulation on Investment and Construction Management and Decree No.12/2000/ND-CP of May 5, 2000 amending and supplementing a number of articles of Decree No.52/1999/ND-CP of July 8, 1999; Pursuant to the Government's Decree No.90/1998/ND-CP of November 7, 1998 promulgating the Regulation on management of foreign loans and repayment of foreign debts; Pursuant to the Prime Minister's Decision No.664/QD-TTg of May 30, 2001 ratifying the rural health project using loan capital of the Asian Development Bank; Pursuant to capital borrowing agreement (No.1777-VIE (SF) of August 1, 2001) between the Socialist Republic of Vietnam and the Asian Development Bank (ADB); The Finance Ministry and the Health Ministry hereby jointly guide the mechanism for financial management of the rural health project as follows: Section I. GENERAL PROVISIONS 1. Abbreviations and term interpretation: In this Circular, the following word phrases shall be construed as follows: 1.1. ADB: Asian Development Bank 1.2. HI: Health Insurance 1.3. PMU: Project Management Unit. 1.4. Agency managing the rural health project: The Health Ministry. 1.5. International organizations: - WHO: World Health Organization - UNICEF: United Nations Children’s Fund - UNFPA: United Nations Fund for Population Activities 1.6. The rural health project is the project with investment made under the project-approving Decision No.664/QD-TTg of May 30, 2001 of the Prime Minister. 1.7. ANB: Administrative and non-business 1.8. PC: People’s Council 1.9. L/C: Letter of Credit 1.10. The service bank means the Investment and Development Bank selected to service the project. 1.11. SB: State Budget 1.12. LB: Local budgets of the provinces covered by the project. 1.13. CB: Central Budget. 1.14. PMU/ADB : The Central Project Management Unit 1.15. PPMU: The Provincial Project Management Unit. 1.16. C: Central 1.17. F-A: Finance-accounting. 1.18. FA: Fixed assets 1.19. EF : External finance 1.20. P/C: People's Committee 1.21. USD : United State Dollar 1.22. VND: Vietnam dong 1.23. CC: Capital construction 2. Management principles: 2.1. Funding and capital-using structure The total funding and capital-using structure are prescribed in Decision No.664/QD-TTg of May 30, 2001 of the Prime Minister ratifying the rural health project, ADB capital- borrowing agreement No.1777-VIE (SF) of August 1, 2001 and written commitments to provide non-refundable aid. The rural health project has access to the following capital sources: - Capital borrowed from the ADB. - Non-refundable aids of international organizations. - Vietnam’s reciprocal capital, including CB and LB of the provinces covered by the project. 2.2. The source of capital borrowed from the ADB and the source of non-refundable aid are sources of State Budget revenues. The Finance Ministry shall have the responsibility to record the State Budget revenue and record the expenditures allocated to the Health Ministry for the execution of the already ratified rural health project. The Finance Ministry shall monitor the implementation of the borrowed capital source and the repayment of due debts. 2.3. The capital sources of the rural health project shall include CC investment capital and ANB capital. The management and use of capital for the project must comply with the commitments in the capital borrowing agreement, the regulations of the ADB and current regulations of Vietnam on the management and use of CC investment capital and ANB capital. 2.4. The Health Ministry shall have the responsibility to direct the use of capital for the right purposes and in accordance with the contents of the ratified project as well as the commitments in the capital borrowing agreement signed with the ADB, the written aid commitments signed with international organizations, relevant documents accompanying these agreement and the current regulations of Vietnam. 2.5. The distribution of the project’s spending contents being the CC investment capital or ANB capital must comply with the provisions in Decision No.664/QD- TTg of May 30, 2001 of the Prime Minister ratifying the rural health project, including: a) Spending on investment in CC: - Upgrading as well as making investment in the capital construction of, 212 health establishments (13 prophylactic medicine centers, 13 health communication and education centers, 13 regional general hospitals, 74 district health centers and 99 regional general consultation clinics). - Providing medical instruments and equipment for 212 health establishments mentioned above. b) ANB spending: - Office equipment and utensils - Transport and travel means (including 14 automobiles). - Essential medicines. - Consultancy services. - Training and teaching stuffs. - Information and communication activities. - Community activities - Research, supervision and evaluation. - Operation and maintenance. - Project staff. For the reserve funding: It must used based on the specific spending contents CC investment expense or ANB expense. 2.6. The provinces participating in the project shall have to arrange enough reciprocal capital for the project from the provincial budgets in order to realize the approved project contents. 2.7. The system of the Investment and Development Bank of Vietnam serving the project shall carry out the procedures (including payment modes) to withdraw capital from ADB in order to make payment at the request of the PMU/ADB and PPMUs according to current regulations. In the course of implementation, the service bank shall enjoy service charges for each arising operation according to the charge table prescribed by the Bank in accordance with the State Bank’s regulations on collection of charges for via-bank payment services. The above-mentioned service charges shall be accounted into the total investment amount of the project. 2.8. The PMU/ADB and PPMUs are entitled to use the arising interest amount on the advance accounts of their levels to pay the banking service charges and the remaining interest amounts shall be monthly paid into the SB. Where the interest amount is not enough for payment of banking service charges, the PMU/ADB and PPMUs shall sum up the deficit amount into the reciprocal capital plan and use the reciprocal capital for the payment of banking service charges. Section II. SPECIFIC PROVISIONS 1. Planning the capital for the project: In July every year, according to the regulations on elaboration and consideration and approval of State Budget estimates, the PPMUs and PMU/ADB must elaborate plans on capital for the project: 1.1. Responsibility of the PPMUs: To elaborate project's capital plans to be executed in their respective localities according to the spending contents and structure of the capital sources of the project, already determined in the investment decision of the Health Ministry and the borrowing agreement under the guidance of the PMU/ADB. The contents of the capital plan shall include: the plan on ADB capital, aid capital (if any) of such international organizations as WHO, UNICEF, UNFPA; the plan on reciprocal capital rests with the responsibility of the LB the Prime Minister’s Decision No.664/QD-TTg of May 30,2001 approving the rural health project and other sources (if any) detailed according to work items and to the nature of the source of used capital (CC investment capital, ANB capital) according to specific forms provided for in Appendix 1* to this Circular and sheet explaining in detail the demands of capital for project items. The capital plans drawn up by the PPMUs must be sent to provincial functional agencies (the provincial Services of Planning and Investment, the provincial Services of Finance and Pricing) to sum up reports to be submitted to the agencies competent to approve the plans on reciprocal capital for the project in the provincial budgets, and at the same time to PMU/ADB (before July 30) for synthesizing the common capital plan of the entire project. 1.2. Responsibility of the PMU/ADB: In early July every year, the PMU/ADB shall issue documents guiding the project provinces to elaborate the capital plan for the upcoming year. At the end of July, it shall sum up the common capital plan for the whole project, including : The ADB capital plan, the aid capital of WHO, UNICEF, UNFPA, the reciprocal capital allocated by the Central Budget, the reciprocal capital balanced by localities themselves and other capital sources (if any), detailed according to work items, the nature of the used capital (CC investment capital, ANB capital), according to the forms provided for in Appendix 1 to this Circular and the sheet explaining in detail the demands of capital for project items. These capital plans shall be synthesized into the capital plan of the Board for Management of the health projects before being incorporated in the general budget estimate of the Health Ministry, which is sent to the Planning and Investment Ministry and the Finance Ministry for submission to the Government then the National Assembly for approval. 2. Plan approval, notification: After being assigned capital plans by the Government: 2.1. The Health Ministry shall allocate capital plans assigned to the project, including the reciprocal capital, borrowed capital, aid capital according to expenditure items and the nature of the capital sources (ANB or CC investment). The decision on allocation of capital plans to the project must also be sent to the Planning and Investment Ministry and the Finance Ministry in order to effect the allocation of reciprocal capital and monitor and control the use of borrowed capital. 2.2. The provincial People’s Committees shall allocate the capital plans regarding the reciprocal capital portion, to project activities in their respective provinces. The decisions on allocation of reciprocal capital plans of the provinces shall be sent to the provincial Services of Finance and Pricing, the provincial Treasuries and also to the PMU/ADB. 3. Opening accounts: 3.1. The PMU/ADB may open the following accounts: a) At the service bank: - USD advance account bearing the project name to receive the source of capital borrowed from the ADB. - Deposit account to receive the source of non-refundable aid capital of international organizations: WHO, UNICEF, UNFPA (if necessary). - A deposit account in order to deposit amounts collected at the project such as the proceeds from the sale of bidding dossiers, the bid guarantee money, the contract-performance underwriting money,... b) At the State Treasury where transactions are conducted A limit account to receive reciprocal capital allocated by the CB for the project activities. 3.2. The project provinces may open the following accounts: a) At the provincial branches of the project-servicing bank: - A provincial VND advance account to receive the ADB advance capital transferred by the PMU/ADB. - A deposit account to deposit amounts collected at the project: The proceeds from the sale of bidding dossiers, the bid- guarantee money, the contract-performance underwriting money, the money contributed by the beneficiaries (if any). b) At the provincial State Treasuries: - An investment capital payment account to make the payment of CC investment reciprocal capital of the project. - A limit account to make the payment of ANB reciprocal capital. 4. Management and allocation of reciprocal capital: The allocation and use of reciprocal capital shall comply with the domestic current regulations in compatibility with the tempo of withdrawing borrowed and aid capital of the project. 4.1. Reciprocal capital for investment in construction: Based on the reciprocal capital budget estimates already approved by competent authorities, the provincial Finance- Pricing Services shall transfer the reciprocal capital for investment in CC to the PPMUs through the provincial State Treasuries according to the current regulations on management and allocation of construction investment capital. 4.2. The ANB reciprocal capital Based on the reciprocal capital estimates already approved by competent authorities and the tempo of borrowed capital disbursement, the Finance Ministry shall notify and transfer the ANB reciprocal capital to the Health Ministry. The Health Ministry shall allocate reciprocal capital to the PMU/ADB for execution of the project in accordance with the tempo of withdrawing borrowed capital. The Finance- Pricing Services of the project provinces shall transfer the allocated reciprocal capital to the PPMUs (for spending contents covered by the provincial budget) according to the approved estimates for project execution in conformity with the percentage of borrowed capital payment prescribed in the borrowing agreement. 5. Management of capital withdrawal, allocation for payment of borrowed capital of ADB: All procedures and formalities for withdrawing payment capital from foreign countries and from advance accounts shall comply with the current regulations of the Finance Ministry, the documents guiding the Government’s Decree No.17/2001/ND-CP of May 4, 2001 promulgating the Regulation on management and use of official development assistance sources and comply with the disbursement principles of ADB. Depending on the requirements and characteristics of payments, the following forms of capital withdrawal can apply: Withdrawal of capital through advance accounts, direct payment, capital-reimbursement procedures, letter of commitment. The payment from the source of borrowed capital of ADB must strictly conform to the percentage of donation for each project item already stipulated in the borrowing agreement and legal documents of the project. A. Withdrawal of payment capital via advance accounts: A1. First withdrawal of capital into the central advance account: Based on the limit of the advance account already stipulated in the borrowing agreement of USD 3,000,000 (three million USD), the PMU/ADB shall forward the following documents to the Finance Ministry (the External Finance Department): - The written request for capital withdrawal - The written application for capital withdrawal and the copies made according to set forms of ADB, clearly stating the spending plan in 6 months to come. Within 5 working days after receiving the complete and valid dossiers, the Finance Ministry (the External Finance Department) shall send the written approval of the capital withdrawal request to the PMU/ADB and the service bank. Within 2 working days after obtaining the opinion of the Finance Ministry, the service bank shall together with the PMU/ADB sign the capital withdrawal application and send it to the ADB. The ADB shall consider and approve it, then transfer the money into the central advance account. A2. The first withdrawal of capital into the provincial advance accounts: The Health Ministry and the Finance Ministry shall uniformly determine the ceiling level on the provincial advance accounts with a Vietnam dong amount of VND 500,000,000. Within the ceiling level of the advance account already determined for each province and the plan on expenditures in the coming quarter, the concerned PPMU shall issue a document requesting the PMU/ADB to transfer money into the provincial advance account. Within 5 days as from the date of receiving such requesting document of the PPMU, the PMU/ADB shall deduct money from the central advance account, convert it into Vietnam dong and transfer it into the provincial advance account. A3. Payment from the central advance account: Upon a request for payment to contractors, goods suppliers and/or consultancy service providers, or for the regular expenditures of the PMU/ADB, after conducting pre-acceptance tests, examining volumes and vouchers accepting the payment strictly according to current regulations and calculating the amounts to be paid with ADB capital source according to prescribed rates, the PMU/ADB shall propose the service bank to deduct money from the central advance account for payment to the beneficiaries. Within 5 working days after withdrawing capital from the advance account for payment, the PMU/ADB shall send the payment dossiers and vouchers according to current regulations to the State Treasury where transactions are conducted for the Treasury to control expenditures as prescribed. Within 5 working days, based on the results of control of dossiers and vouchers, the State Treasury shall certify the volume of work already completed and eligible for payment on the rate card or the payment list or the advance payment request (according forms set by the State Treasury), and pay the reciprocal capital amount (if any). In cases where payment is made for lump-sum payment contracts or for the last time for contracts, the PMU/ADB shall send the prescribed dossiers and vouchers to the State Treasury for examination and certification of dossiers eligible for payment, before making payment to the beneficiaries. Within 5 working days as from the date of receiving the complete and valid dossiers and vouchers, the State Treasury shall examine the dossiers, certify the volume of work already completed and eligible for payment (and at the same time pay the reciprocal capital amount, if any). Based on the certification by the State Treasury, the PMU/ADB shall request the service bank to make payment from the central advance account to the beneficiaries. The rate card or the payment list, which is certified by the State Treasury, shall serve as one of the bases for the PMU/ADB to carry out the procedures to supplement the central advance account. A4. Payment from the provincial advance accounts: Upon a request for payment from the provincial advance account in order to spend on activities of the project executed by the province, the concerned PPMU shall send to the provincial State Treasury the dossiers and vouchers for controlling expenditures, including: - The written request for payment. - The currently prescribed documents and vouchers on payment of CC investment capital or payment of ANB capital. Within 5 working days as from the date of receiving the complete and valid dossiers, based on the results of controlling the dossiers and vouchers, the provincial State Treasury shall certify the volume of work already completed and eligible for payment on the rate card or the payment list or the advance payment request (according to forms set by the State Treasury), and at the same time pay the reciprocal capital amount (if any). The PPMU shall send to the service-bank branch the payment request enclosed with the rate card or the payment list or the advance payment request, with certification by the provincial State Treasury for deduction of money from the provincial advance account to pay to the beneficiaries. The rate cards, the payment lists with certification by the provincial State Treasury shall serve as one of the bases for the PPMUs to carry out the procedures to supplement the provincial advance accounts and at the same time as basis for the PMU/ADB to carry out the procedures to supplement the central advance account. A5. Supplementing the central advance account: The principle for withdrawing capital to supplement the advance account is the principle of actual expenditure. The project can only withdraw capital to supplement amounts actually paid. Monthly or when the central advance account has already spent 20% of the prescribed ceiling level, the PMU/ADB may withdraw capital to supplement the central advance account. To withdraw capital for supplementation of the advance account, the PMU/ADB shall send the following documents to the Finance Ministry (the External Finance Department): - The written request for withdrawal of capital to supplement the advance account. - The capital withdrawal application and the vouchers, copies of the lists according to the ADB’s regulations. - The copy of expenditure list made by the PMU/ADB, which reflects expenditures from the advance account, enclosed with the copies of rate cards, payment lists, advance requests (with certification by the State Treasury). - The copy of the list of advance accounts made by the service bank. Within 5 working days as from the date of receiving the complete and valid dossiers, the Finance Ministry (the External Finance Department) shall send the written approval to the PMU/ADB and the service bank. Within 2 working days after obtaining the opinion of the Finance Ministry, the service bank shall together with the PMU/ADB sign the capital withdrawal application and send it to the ADB. The ADB shall consider, approve it and transfer the supplementary money amount into the central advance account. The capital amounts already transferred to the provincial advance accounts shall be withdrawn for capital addition when the PPMUs send the dossiers and vouchers of application for capital to supplement the provincial advance accounts. A6. Supplementing the provincial advance accounts: Monthly or when a provincial advance account has already spent 50% of the prescribed ceiling level, the concerned PPMU must carry out procedures for supplementation of the provincial advance account and send dossiers to the PMU/ADB, including: - The written request for supplementation of the advance account, sent to the PMU/ADB. - The copy of the list of expenditures from the provincial advance account and copies of the rate card and payment list, with certification of the provincial State Treasury. - The copy of the list of advance accounts at the provincial branch of the service bank. Within 5 working days as from the date of receiving the complete and valid dossiers, the PMU/ADB shall carry out the procedures to transfer money from the central advance account to the provincial advance account. The dossiers and vouchers submitted by the PPMU for the supplementation of the provincial advance account shall be used as dossiers and vouchers for the PMU/ADB to compile dossiers on withdrawal of capital from the central advance account. B. Direct payment: Direct payment is a form of payment at the request of the project. The ADB shall transfer the payment money directly to contractors and suppliers. This form usually applies to cases of payment according to the tempo of performing big construction and installation contracts, consultancy contracts or payment to contracts on import of goods in small quantity without needing to open L/C. To withdraw capital for direct payment, the PMU/ADB shall send the following documents to the Finance Ministry (the External Finance Department): - The written request for withdrawal of capital for direct payment. - The capital withdrawal application and copies of accompanying lists, made according to forms of the ADB. - The contract and contract-approving decision of competent authorities (sent in one dispatch). - No objection of the ADB (for contracts requiring the prior comments of the ADB). - The performance underwriting, the advance guarantee (for advance payment). - The payment receipt or request of the contractors, suppliers. - The rate card or payment list, the advance payment request with certification by the State Treasury. (+) When direct payment is made at the request of PPMU, the PPMU shall have to supply all the dossiers and vouchers mentioned above to the PMU/ADB ( except for official dispatches, capital withdrawal application and accompanying copies prepared by the PMU/ADB) (+) The control of payment vouchers to get certification by the State Treasury shall comply with domestic current regulations on payment of CC investment capital or ANB capital. Within 5 working days as from the date of receiving the complete and valid dossiers, the Finance Ministry (the External Finance Department) shall send the written approval to the PMU/ADB and the service bank. For special cases, the Finance Ministry may request the project to supply supplementary documents for explanation. Within 2 working days after obtaining the opinion of the Finance Ministry, the service bank shall together with the PMU/ADB sign the capital withdrawal application and send it to the ADB. The ADB shall consider, approve it and transfer money for direct payment to contractors, suppliers. C. Capital reimbursement procedures: The capital reimbursement procedures constitute a form thereby the ADB refunds money for valid expenditures of the project according to the provisions of the borrowing agreement, which have been paid by the project with the sources of budget capital or its own capital. This form usually applies to cases of small procurement, or payment to a number of capital construction items. In order to withdraw capital for payment in form of capital reimbursement, the PMU/ADB shall send the following documents to the Finance Ministry (the External Finance Department): - The written request for withdrawal in capital reimbursement form. - The capital withdrawal application and list copies according the forms set by the ADB. The capital withdrawal application must be inscribed fully with the name and account number of the benefiting unit being the unit which has advanced the expenditure for the amount of capital applied for reimbursement. - The contract, the contract-approving decision of competent authority (sent in one dispatch). - The no objection letter of the ADB (if the contract belongs to the type requiring prior comment of the ADB). - The payment receipt or request of contractors, suppliers. - The rate card or payment list, advance payment request with certification by the State Treasury and other vouchers evidencing the already paid amounts. Within 5 working days as from the date of receiving the complete and valid dossiers, the Finance Ministry (the External Finance Department) shall send the written approval to the PMU/ADB and the service bank. Within 2 working days after obtaining the opinion of the Finance Ministry, the service bank shall together with the PMU/ADB sign the capital withdrawal application and send it to the ADB. The ADB shall consider and approve it, then transfer money for capital reimbursement. For the capital amounts withdrawn in form of capital reimbursement for expenditures already paid by the State budget (or with the capital sources originating from the State budget), the withdrawn money amounts must be remitted into the budget which has advanced the capital. For the capital amounts withdrawn in form of capital reimbursement for expenditures paid by the project owner with own capital (or credit capital, or capital mobilized from other sources), the project owner can use the withdrawn money amounts according to the current regulations on financial management. D. Procedures for Letter of Commitment: The letter of commitment procedures constitute a form whereby the ADB issues, at the request of the project, a letter of commitment securing the payment to commercial banks of the money amounts to be paid by L/C. This form usually applies to cases of imported goods inscribed in the contracts with payment in form of opening L/C. To withdraw capital in form of commitment letter, the PMU/ADB shall send the following documents to the Finance Ministry (the External Finance Department): - The written request for opening L/C. - The capital withdrawal application and list copies according to set forms of the ADB. - The contract, the contract-approving decision of the competent authority. - The no objection letter of the ADB ( if the contract is of the type requiring the prior comments of the ADB). - The performance underwriting, the advance guarantee (if necessary). Within 5 working days as from the date of receiving the complete and valid dossiers, the Finance Ministry (the External Finance Department) shall send the written approval to the PMU/ADB and the service bank. Within 2 working days after obtaining the opinion of the Finance Ministry, the service bank shall together with the PMU/ADB carry out the procedures to open L/C and sign the capital withdrawal application and send it to the ADB requesting the issuance of a commitment letter. The ADB shall consider and approve it, then issue the letter of commitment. In the process of managing the capital withdrawal, allocation of loan capital of the ADB for payment stated at Point 5 above, after completing all works, the PMU/ADB must photocopy the approving opinion of the Finance Ministry and send it to the Health Ministry (the Finance-Accounting Department) for sum-up and monitoring. 6. Spending norms applicable to the project: The project shall apply the spending norms prescribed in the Finance Minister’s Decision No.112/2001/QD-BTC of November 9, 2001 promulgating a number of spending norms applicable to projects using ODA loans, the current regulations of the State and the spending norms attached to this Circular (Appendix 2). 7. Management of sources of non-refundable aid of international organizations: The sources of non-refundable aid of international organizations for the rural health project shall be used according to the Finance Ministry’s Circular No.70/2001/TT-BTC of August 24, 2001 "guiding the State regime of financial management of the source of non-refundable aids, according to the approved project contents and current documents. 8. The project accounting regime 8.1. Accounting voucher system The accounting voucher system to be applied by the project management boards at all levels with the use of loan capital of the ADB includes two types: The system of Vietnamese accounting vouchers applicable according to the current system of accounting vouchers of Vietnam. The list of accounting vouchers and documents as required by the ADB for management (Appendix 3). 8.2. Forms of accounting books: For the purpose of uniform use within the entire project, the PMU/ADB and PPMUs are encouraged to use the accounting book forms of general journal servicing the project financial examination, the sum-up of annual settlement report and the general settlement of the project and at the same time facilitating the use of computers in the project accounting. 8.3. The system of book- keeping accounts Based on the spending items, spending content of each expenditure item in the capital borrowing agreement signed with the ADB, the rural health project must use the system of book-keeping accounts after the model of project management units with management decentralization. The documents and vouchers shall be kept at the project management units at all levels. The project management boards shall base themselves on the lists of accounting vouchers and accounting books to select necessary vouchers and books to meet the requirements of fully reflecting the economic contents arising at the project. 9. Management of the project assets The project assets must be managed and used strictly according to the regime of management of public property. The project management units must organize the opening of monitoring books and calculate the depreciation of fixed assets, prescribe the regime of using assets for the right purposes and with efficiency. For transport means, the project must not change their utilities. Annually, the project management units at all levels must organize the inventory of assets, determine their conditions and observe the regime of periodical maintenance of assets. The PMU/ADB shall have to guide the PPMUs in the regulations on the management and use of assets assigned to individuals (bicycles, motorbikes, personal computers, mobile phones…). For project assets which have been out of order in the course of their use and cannot be repaired or are repaired without economic efficiency and use efficiency, the project management units at all levels shall have to set up the liquidation council and make record thereon, then apply for liquidation. Only after getting the written permission for liquidation from the competent authorities can the project management units record the asset decrease in the accounting books. 10. The regime of reporting, inspection, auditing and settlement of projects: 10.1. The reporting regime Monthly, the provincial branches of the service bank shall send the copy list of provincial advance accounts to the PPMUs and the provincial State Treasuries. The bank servicing the project shall send the copy list of advance accounts to the PMU/ADB and the Finance Ministry (the External Finance Department). The copy lists of advance accounts of the branches of the bank servicing the project at the provincial level and the bank servicing the project at the central level must clearly reflect the transactions and the interest amounts arising in the month, the situation on the use of interests and the date of transferring the remaining profits to the SB. On the 5 th of every month, the PPMUs shall send fast reports to the PMU/ADB on the situation of reception and use of capital sources of the project, clearly stating the proposals to competent authorities on handling problems in the course of participation in the project. Quarterly, the PMU/ADB shall have to sum up the fast reports of the whole project and send them to the project management boards and the Health Ministry for sum-up, monitoring and coordination with competent agencies in settling difficulties in the course of project execution. Monthly, the PMU/ADB shall report to the Health Ministry and the Finance Ministry (the External Finance Department, the Administrative and Non-Business Department, the Investment Department), the Planning and Investment Ministry and the ADB on the situation of project execution, the use of borrowed capital, aid capital and reciprocal capital of Vietnam. The reports must state in detail: - The tempo and quality of project execution as compared to the objectives. - The difficulties leading to slow disbursement, the causes and remedies. - The capital withdrawal, capital payment in accordance with the regulations of Vietnam and the ADB. - The proposals on deploying of the plan in the next six months. 10.2. Inspection Periodically and extraordinarily the Finance Ministry and the Health Ministry shall inspect the situation on project execution, the use of capital (domestic and foreign) of the project. If detecting cases of using capital in contravention of the provisions in the agreement and legal documents of the project, the Finance Ministry shall suspend the capital allocation so that the competent agencies shall handle the violations. The functional bodies of the Health Ministry shall coordinate with the PMU/ADB in conducting extraordinary inspections in the provinces participating in the project, into the project contents and tasks, the project execution progress, the difficulties in administering the project, finding the causes thereof and proposing remedies. 10.3. Auditing Annually, all the financial activities of the project must be audited by an independent auditing body in accordance with the regulations of the State, the capital borrowing agreement and the aid commitments. The auditing report must be sent to the Health Ministry and the Finance Ministry, which shall serve as one of the bases for considering the withdrawal of capital for addition to the advance accounts or the withdrawal of capital from advance accounts for payment, and at the same time as basis for evaluation of the project execution. 10.4. Final settlement The PMU/ADB and PPMUs must make and send financial reports to the ADB and the final settlement reports to the Health Ministry for sum-up and sending to the Finance Ministry. Particularly, apart from the report on activities of project management and execution, the PMU/ADB shall also have to make the financial report and the general settlement from its report and reports of the PPMUs. The financial reports and final settlement report must provide fully, truthfully and promptly information on the developments and actual financial situation of the project. All financial reports and final settlement reports must be made on the basis of a system of accounting data and documents, which are fully, accurately and uniformly updated. The contents, method of calculation and form of presentation of indexes in each report must be uniformly guided by the PMU/ADB for units executing the project and participating in the project (PMU/ADB and PPMUs) in accordance with current regulations. a) For ANB capital: - The responsibilities of the PPMUs: Annually, the PPMUs shall have to make reports on final settlement of the entire loan capital, aid capital, reciprocal capital and other revenue sources (if any) in the non-business domain according to the administrative and non-business accounting system promulgated together with Decision No.999-TC/AD/CDKT of November 2, 1996 of the Finance Minister. For the sources of reciprocal capital and other revenue (if any), the final settlement reports shall be sent to the provincial Finance-Pricing Services for appraisal and synthesis into the general final settlement reports of the provinces. After such final settlement reports are approved by the Finance-Pricing Services, the PPMUs must report them to the PMU/ADB for general synthesis. For loan and non-refundable aid capital, their final settlement reports shall be sent to the PMU/ADB for appraisal and sum-up before reporting them sent to the project managing agency. - The responsibility of the PMU/ADB: Annually, the PMU/ADB shall have to make a report on the final settlement of the capital sources for project management and execution at the PMU/ADB, including the source of capital borrowed from the ADB, the source of non-refundable aid of international organizations, the ANB reciprocal capital supplied by the central budget and other revenue sources at PMU/ADB strictly according to the provisions in Decision No.999-TC/QD/CDKT of November 2, 1996. - The responsibility of the project managing agency: To appraise and approve the reports on annual final settlement of the project before synthesizing them into the unit’s general final settlement report to be sent to the finance agency. b) For CC investment capital source: The PMU/ADB and PPMUs shall make final settlement according to the provisions in Circular No.70/2000/TT-BTC of July 1, 2000 of the Finance Ministry on guiding the final settlement of investment capital. PPMUs shall send the final settlement reports to PMU/ADB for appraisal and sum-up before reporting them to the Health Ministry for approval and the Finance Ministry. Section III. IMPLEMENTATION PROVISIONS This Circular takes effect 15 days after its signing for promulgation. If problems arise in the course of implementation, the Board for Management of the rural health project and the service bank shall report them in time to the Finance Ministry (the External Finance Department) and the Health Ministry (the Finance-Accounting Department) for study, amendment and supplement. For the Finance Minister Vice Minister LE THI BANG TAM For the Health Minister Vice Minister TRAN CHI LIEM Appendix 2 PROVISIONS ON A NUMBER OF SPENDING NORMS APPLICABLE TO THE RURAL HEALTH PROJECT Applied to the project shall be the spending norms prescribed in Decision No.112/2001/QD-BTC of November 9, 2001 of the Finance Minister, promulgating a number of spending norms applicable to projects using ODA loans and the current regulations of the State. Particularly for the content of spending on training, the Finance Ministry and the Health Ministry shall guide in detail as follows: 1. For meals, accommodation and travel: a/ For meals: - Organized in Hanoi, Ho Chi Minh City: 60,000 dong/day/person. - Organized in provinces: 50,000 dong/day/person. - Organized in districts: 40,000 dong/day/person. b/ For accommodation: Payment according to actual expenses, which, however, must not exceed the following levels: - Organized in Hanoi, Ho Chi Minh City: 60,000 dong/day/person. - Organized in provinces: 50,000 dong/day/person. - Organized in districts: 40,000 dong/day/person. Where separate rooms must be rent for odd people of different sexes, the maximum accommodation expenses shall not exceed the following levels: - Organized in Hanoi, Ho Chi Minh City: 90,000 dong/day/person. - Organized in provinces: 75,000 dong/day/person. - Organized in districts: 55,000 dong/day/person. Where classes are organized at training establishments without accommodation receipts, the collection bills or valid receipts can be used as vouchers of payment at the maximum package level of not more than 30,000 dong/day/person. c/ For travel: Payment according to actual expenses (train, car tickets, ferry fares…) for the State-run traffic means. 2. Other expenses: - Expense for renting meeting halls (or classrooms): Payment according to actual expenses, but not in excess of 300,000 dong/day (including expenses for service, decoration, audio and lighting equipment in service of teaching and learning) - Expense for hiring lecturers: The money for hiring lecturers shall be decided by the project manager based on the qualifications of the lecturers, the nature of lectures, the lecturing locations…, which, however, must not in any circumstance exceed the following ceiling levels: + Lecturers being officials or teachers with academic title of professor or associate professor; leading officials being ministers, vice-ministers, deputy-heads of central commissions or branches, secretaries and deputy-secretaries of the Party Committees or presidents of vice-presidents of the People’s Committees of the provinces or centrally-run cities, and equivalent posts: 100,000 dong/hour. + For the remaining lecturers: * Lecturers being officials of central-level agencies: 80,000 dong/hour * Lecturers being officials of provincial-level agencies: 60,000 dong/hour. * Lecturers being officials of district-level agencies: 30,000 dong/hour. * Lecturers being officials of commune-level agencies: 20,000 dong/hour. The above-mentioned ceiling levels already cover the remuneration for lecturing and compiling lecturing materials. In special cases where the lecturing or reference materials are highly specialized, which require a lot of experiences and gray matters, the project management unit may calculate and pay the remuneration for materials preparation in form of work-piece contract, covering also the expenses for document printing. The payment must be made according to the actual number of days and must be approved by ADB and the Health Ministry before signing contracts with those specialists. - The expense for renting car for trainees' field surveys shall not exceed 30,000 dong/person/a training course. - The expense for drinks: The organizing committee shall be paid according to actual expenses which, however, must not exceed 5,000 dong/day. - The expense for professional supplies in service of the study course shall be paid on the basis of actual and valid invoices. - Other expenses such as expenses for organization and management of the training course, for opening ceremony, closing ceremony, course completion…, which must not exceed 5% of the total expenses mentioned above for the training course. These spending levels shall be applied on the basis of actual expenses evidenced with valid payment vouchers; the package expenditure shall not apply. Appendix 3 LIST OF VOUCHERS APPLIED AT ADB’s REQUEST Ordinal number Voucher names Voucher code 1 Summary Sheet (For Direct Payment/ Reimbursement/ Liquidation/Replenishment) Form 01.ADB 2 Application for Commitment Letter Form 02.ADB 3 Summary Sheet (for Commitment Letter) Form 03.ADB 4 Withdrawal application for Direct payment Form 04.ADB 5 Withdrawal application for Imprest Fund Form 05.ADB 6 Liquidation of Withdrawal vouchers Form 06.ADB 7 Withdrawal application for Reimbursement Form 07.ADB 8 Statement of Withdrawal vouchers Form 08.ADB