Chương VIII Nghị định 114/2021/NĐ-CP: Quản lý tài chính vốn ODA không hoàn lại

Chapter VIII

FINANCIAL MANAGEMENT FOR ODA GRANTS

Article 86. Principles of financial management for ODA grants

1. ODA grants as the state budget revenues on the Vietnam’s side shall be budgeted, reviewed, accounted, and finalized in accordance with the laws on state budget and financial management specified in this Decree. For new ODA grants that have not been incorporated in the budget estimates allocated and assigned by the competent authority, the project owners shall make additional estimates in accordance with the regulatory provisions on state management and relevant legislation.

2. For ODA grants directly made and managed by donors: The managing agencies are responsible for the tasks assigned under the signed international treaties, agreements on ODA grants, program/project documents or feasibility study reports; in line with their functions and mandates; in compliance with the regulatory provisions on acceptance of ODA grants. In case the donor transfers ownership of the assets and equipment of the program or project to the project owner, the project owner shall establish the ownership over the assets in accordance with applicable regulations.

3. For mixed ODA grants: Comply with the regulations on financial management for ODA and concessional loans prescribed in Chapter VII of this Decree.

4. For ODA grants serving as emergency aid:

a) For emergency ODA grants for disaster assistance and relief: Comply with the Government’s regulations on acceptance, management and use of international emergency aid for disaster relief and recovery;

b) For other emergency aid: Comply with the regulations of this Decree.

5. In the event of any discrepancies on financial management between this Chapter and the signed international treaties on ODA grants, the latter shall prevail.

Article 87. Opening of payment accounts for programs/projects funded by ODA grants

1. Accounts for counterpart funds: The project owners shall open accounts at the transacting State Treasury so as to effect the control and payment of counterpart fund of the projects.  

2. Accounts for ODA grants: The project owner shall open an account to receive ODA grant at the service bank or the commercial bank. Order and procedures for opening of accounts at the State Treasury and management and use of accounts shall be subject to the applicable regulations.

Article 88. Preparation of financial plans for ODA grants

1. Pursuant to the Decision approving the project/non-project document, or the Investment Decision for the program or project; international treaty or agreement on ODA grant (if any), the project owner shall prepare 3-year and annual budget plans for the ODA grant in accordance with the Law on State Budget and relevant legislation and send them to the managing agency for incorporation.

2. The annual budget estimates for revenues and expenditures from ODA grants shall be detailed by each donor, program, project or non-project assistance, by each international treaty or agreement on ODA grant.

3. Formulation, synthesis, submission, approval, assignment and revision of ODA grant budget plan:

a) For ODA grant used for public capital expenditures, the regulatory provisions on public investment shall be applied;

b) For ODA grant used for recurrent expenditures, the regulatory provisions on state budget shall be applied;

c) For technical assistance projects and non-project assistance funded by ODA grants in kind, the formulation and decision on assignment of budget in the estimates or revised estimates in the year by the competent authorities shall be carried out only when value of aid assets or goods is determined.

4. Based on the annual budget limits assigned by the competent authority, the managing agency shall allocate funds with detailed breakdown by each program, project and non-project assistance and notify the Ministry of Finance and the Ministry of Planning and Investment of the detailed allocation plan.

5. The managing agencies shall direct, organize and report the implementation of budget estimates for the ODA grants in accordance with applicable regulations.

Article 89. Expenditure review, disbursement, and accounting of ODA grant in cash

1. Project owners shall perform expenditure review at the State Treasury according to the regulations on state budget management. The order and procedures for expenditure review and accounting shall comply with the regulatory provisions on administrative procedures in the state treasury field.

2. Expenditure review dossier sent to the State Treasury for the first time:

a) Decision to assign or supplement budget estimates by the competent authority;

b) Certified true copies of the Decision on approval of program/project documents or the Decision on investment in programs/projects and program/project documents or approved feasibility study reports;

c) Certified true copies of the international treaty or agreement on ODA grant or aide memoire on projects funded by ODA grants;

d) Procurement contract of related goods and services (if any). If the contract is executed in a foreign language, the Vietnamese translation with the project owner’s signature and stamp shall be enclosed. Project owners shall be legally responsible for the accuracy of the Vietnamese translation;

dd) The written request for certification of eligible recurrent expenditures or the written request for payment of capital expenditures of the project owners shall comply with the Government’s regulations on administrative procedures in the field of state treasury.

3. Each payment dossier submitted to the State Treasury shall comply with the regulations on expenditures from the state budget.

4. Disbursement of ODA grant in cash for programs/projects: Based on the expenditure review results and at the request of the project owner, the State Treasury or the commercial bank where the project account is opened shall disburse funds to the project as per regulations; notify the Ministry of Finance of the disbursed ODA grant of each account owner on a monthly basis for each program or project.

5. Accounting of revenues and expenditures for projects:

a) On a monthly basis or from time to time, based on the expenditure review results and the written request for accounting ODA grant sent by the project owner, the State Treasury shall keep records accordingly as per regulations. In case the project owner opens an ODA account at the commercial bank where the project account is opened, in addition to the above-mentioned dossier, the project owner needs to enclose a list of payment documents from the ODA account opened at the service bank;

b) The State Treasury shall account ODA grant into the state budget under grant item according to applicable regulations. Permissible advances shall be accounted for as increase in advance expenditures. Recovered advances shall be accounted for as decrease in advance expenditures. Payments for completed quantities are accounted for under actual revenues and expenditures for annual budget account finalization;

c) Time of accounting shall comply with applicable regulations on state budget funds.

6. The payment of advances and expenditure review from ODA grant in cash shall be made in conformance to applicable regulations on state budget.

7. Interest earned on ODA grant deposited in accounts must be separately accounted and used for payment of banking service charges according to the regulations. Banking service charges are considered project expenditures.

8. Upon completion of spending activities on ODA grant account at the commercial bank or the State Treasury where the project account is opened, if there is no commitment in international treaties and agreements on ODA grant on the use of interest earned on the grant, the project owner shall remit the whole interest balance earned on the grant account into the state budget according to applicable regulations. The use of such interest earned on the grant balance shall comply with the regulatory provisions on public investment and state budget.

Article 90. Receipt of ODA grant in kind and service support

1. The receipt of imported relief goods shall comply with the Law on Customs, the Law on Import and Export Tax and the Law on Tax Administration. In addition to import dossiers prescribed in law on customs, legislation on export and import tax, dossiers sent to customs authorities to carry out the customs clearance procedures for imported relief goods include:

a) Specific international treaties or agreements on ODA grants or aide memoire on commitment and receipt of ODA grants: 01 copy certified by the importer’s seal;

b) Decision on approval of the documents of the projects, non-project assistance or the decision on investment in programs and project documents or approved feasibility study reports: 01 copy certified as true copy by the competent authority in accordance with applicable regulatory provisions.

2. Tax refund or exemption dossier for goods and services purchased domestically by using ODA grant sent to the tax authorities include:

a) Specific international treaty or agreement on ODA grant or aide memoire on commitment and receipt of ODA grant: 01 copy;

b) Decision on approval of the documents of the projects, non-project assistance or the decision on investment in programs and project documents or approved feasibility study reports: 01 copy;

c) Other documents prescribed by laws related to tax refund or exemption;

d) The written request for certification of legitimate non-business expenditures or the written request for payment of investment capital of the project owner prescribed in the Government’s regulations on administrative procedures in the field of state treasury (with respect to ODA grant managed and carried out by Vietnam).

3. After the goods have been delivered, the project or non-project owner shall prepare a dossier for submission to the State Treasury for state budget accounting as per regulations. Accounting dossier of revenues and expenditures shall include:

a) Specific international treaty or agreement on ODA grant or aide memoire on commitment and receipt of ODA grant: 01 copy certified as true copy by the competent authority in accordance with relevant law;

b) Decision on approval of the documents of the projects or the decision on investment in programs and project documents or approved feasibility study reports: 01 copy certified as true copy by the competent authority in accordance with applicable regulatory provisions;

c) Written request for recording of revenues and expenditures prescribed in the Government’s regulations on administrative procedures in the state treasury field;

d) For imported goods: Contracts, bills of lading or other equivalent transport documents, commercial invoices or customs declarations of imported goods for cases where commercial invoices are not available: 01 copy certified as true copy of the competent authority in accordance with applicable regulatory provisions. For goods purchased domestically: Procurement contracts, VAT invoices, goods delivery records:  01 copy certified as true copy by the competent authority in accordance with applicable regulatory provisions;

dd) Decision on assignment of ODA grant estimates or revisions thereof in the year by the competent authorities that is required if value of the goods and items is determined.

4. When accounting for value of imported goods, the State Treasury shall record the price exclusive of taxes, fees and charges prescribed in applicable regulations.