Thông tư 85/2012/TT-BTC

CIRCULAR

GUIDING THE REGIME OF FINANCIAL MANAGEMENT FOR THE FOREST PROTECTION AND DEVELOPMENT FUNDS

Pursuant to the Government's Decree No. 60/2003/ND-CP of June 10, 2003, detailing and guiding the implementation of the State Budget Law;

Pursuant to the Government's Decree No. 05/2008/ ND-CP of January 14, 2008, on the forest protection and development funds;

Pursuant to the Government's Decree No. 99/2010/ ND-CP of September 24, 2010, on the policy on payment for forest environmental services;

For implementation of the Decision No. 07/2012/QD-TTg of February 8, 2012, of the Prime Minister promulgating some policies to enhance forest protection;

At the proposal of the Director of the Public Expenditure Administration;

The Minister of Finance guides the regime of financial management for the forest protection and development funds as follows:

Article 1. General provisions

1. This Circular guides the regime of financial management for the Vietnam forest protection and development fund that is established under the decision of, and managed by, the Ministry of Agriculture and Rural Development (hereinafter referred to as the Central Fund) and provincial-level forest protection and development funds that are established under the decisions of chairpersons of provincial-level People's Committees (hereinafter referred to as provincial-level funds).

Communes with forests and revenues as prescribed in Clause 1, and points b, c and d, clause 3, Article 3 of Decision No. 07/2012/QD-TTg may establish commune-level forest protection and development funds (hereinafter referred to as commune-level funds). Chairpersons of provincial-level People's Committees shall decide to establish commune-level funds as prescribed by law.

2. A fund is an independent accounting unit, which may open accounts at the State Treasury (for receiving state budget funds and compulsory contributions as prescribed in Article 10 of the Decree No. 05/2008/ND-CP Clause 3, Article 3 of the Decision No. 07/2012/QD-TTg and funds originated from the state budget), and at commercial banks.

Funds operate for non-profit purposes, but must preserve the initial capital assigned by state. Funds must operate in a public and transparent manner, for proper purposes and in conformity with provisions of law.

3. Funds perform the regime of financial management according to this Circular and relevant legal documents.

4. The central fund management council shall take responsibility before the Minister of Agriculture and Rural Development; provincial-level fund management councils and commune-level fund management councils shall take responsibility before chairpersons of provincial-level People's Committees and state management agencies for observing the regime of financial management.

Article 2. Provisions on financial sources of forestry protection and development funds

1. The central fund:

a/ When establishing the fund, the central state budget shall provide an initial support of VND 100 billion which shall be allocated within two years;

b/ Entrusted financial sources:

- Payments for forest environmental services in according to the Decree No. 99/2010/ND-CP and its guiding documents;

- The amounts entrusted by international organizations and domestic and overseas organizations and individuals under entrustment contracts relating to forest protection and development;

c/ Voluntary financial donations and funding of international organizations; and domestic and overseas organizations and individuals;

d/ Expenditure from programs and projects subject to capital refund into fund;

dd/ Interests from deposits at credit institutions;

e/ Other lawful financial sources as prescribed by law.

2. Provincial-level funds

a/ An initial support from the local budget upon establishment. Provincial-level People's Committees shall consider and decide on the specific support level;

b/ Entrusted financial sources:

- Payments for forest environmental services as prescribed in the Decree No. 99/2010/ND-CP and its guiding documents;

- Amounts entrusted by international organizations and domestic and overseas organizations and individuals under entrustment contracts relating to forest protection and development;

c/ Compulsory contributions as prescribed in Article 10 of the Government's Decree No. 05/ 2008/ND-CP of January 14, 2008, on forest protection and development funds, including:

- Contributions of forest owners exploiting and trading in timber in the following cases: Economic organizations that are allocated production forests by the State without collection of land use levy; economic organizations that are allocated production forests by the State with collection of forest use levy or are transferred forests for which the paid forest use levy or forest transfer money is originated from the state budget; households and individuals that are allocated production forests without collection of forest use levy.

- Contributions of establishments doing business in forest scenery, resorts and eco-environmental services.

- Contributions of investment projects that need exploit forests for ground clearance and are required to replant forests but have no condition to perform.

Contribution levels, contributors and cases eligible for contribution exemption or reduction, and agencies and organizations responsible for collecting contributions comply with regulations of the Ministry of Agriculture and Rural Development.

d/ Voluntary financial donations and funding of international organizations; and domestic and overseas organizations and individuals;

dd/ Expenditure from programs and projects subject to capital refund into fund;

e/ Support from the central fund;

g/ Interests from deposits at credit institutions;

h/ Other lawful financial sources as prescribed by law.

3. Commune-level funds

a/ Local budget shall be provided to ensure regular expenditures for forest management and protection as prescribed in Clause 1, Article 3 of the Decision No. 07/2012/QD-TTg;

b/ Fines on administrative violations in forest management and protection and forest product management to be authority sanctioned by commune-level People's Committees, which are paid to the state budget specified in Point a, Clause 4, Article 40 of the Government's Decree No. 99/2009/ND-CP of November 02, 2009, on sanctioning of administrative violations in forest management and protection and forest product management, after deducting expenses under current regulations of state and are allocated by localities to commune-level forest protection funds;

c/ Supports from forest owners exploiting and trading in timber and forest products, organizations and individuals doing business in forest scenery, resorts and eco-environmental services, and other domestic and overseas organizations and individuals;

d/ Other revenues (if any) as prescribed by law.

Article 3. Expenditures of forest protection and development funds

1. The central fund:

a/ Expenditures for the performance of entrusted tasks:

- Payments for entrusting forest environmental services as prescribed in the Decree No. 99/ 2010/ND-CP and its guiding documents;

- Expenditures for the performance of entrusted tasks under other entrustment contracts;

Entrusted capital under assigned tasks and entrustment contracts must be separately monitored and managed. Annually (or upon termination of entrustment contracts), the fund shall finalize with trustees (or agencies assigned managing task) as prescribed.

b/ Expenditures for support for programs, projects or non-project activities:

Based on the financial sources of central fund and contents of programs, projects or non-project activities (hereinafter referred to as tasks), the central fund shall consider and support appropriate expenditure for the performance of tasks, including:

- To support for activities against illegal logging, forest destruction, and forest product production, trading and transport;

- Propagation, dissemination and implementation of forest protection and development policies and law;

- Piloting, popularizing and expanding models of sustainable forest protection and development and forest management;

- Testing and applying new varieties of forest trees;

- To support for planting dispersed trees;

- Developing forest products apart form timber on forest land;

- Training human resources for forest protection and development up to the provincial level;

The order, procedures and conditions for, and beneficiaries of, non-refundable support of the whole or part of capital, support levels, refund time, and cases eligible for exemption or reduction of repayable expenditure for each task comply with regulations of the Ministry of Agriculture and Rural Development.

c/ Support for provincial-level funds: At the request of a provincial-level fund and based on its financial sources, the central fund management council shall consider and propose to the Ministry of Agriculture and Rural Development to support such provincial-level fund in implementing programs and projects under local tasks.

2. Provincial-level funds

a/ Expenditures for the performance of entrusted tasks:

- Payments for entrusting forest environmental services as prescribed in the Decree No. 99/2010/ND-CP and its guiding documents;

- Expenditures for the performance of entrusted tasks under other entrustment contracts;

Entrusted capital under assigned tasks and entrustment contracts must be separately monitored and managed. Annually (or upon termination of entrustment contracts), funds shall finalize with trustees (or agencies assigned managing task) as prescribed.

b/ Expenditures for support for programs, projects or non-project activities:

Based on financial sources of provincial-level funds and contents of programs, projects or non-project activities (hereinafter referred to as tasks), funds shall consider and support appropriate fund for the performance of tasks, including:

- To support for activities against illegal logging, forest destruction and forest product production, trading and transport;

- Propagation, dissemination and implementation of forest protection and development policies and law;

- Piloting, popularizing and expanding models of sustainable forest protection and development and forest management;

- Testing and applying new varieties of forest trees;

- To support for planting dispersed trees;

- Developing forest products apart from timber on forest land;

- Training human resources for forest protection and development at the grassroots;

The order, procedures and conditions for, and beneficiaries of, non-refundable support of the whole or part of capital, support levels, refund time and cases eligible for exemption or reduction of repayable expenditure for each type of program, project or non-project activity comply with regulations of provincial-level People's Committees or agencies authorized by provincial-level People's Committees.

3. Commune-level funds

- Regular expenditures for forest management and protection specified in Clause 1, Article 3 of the Decision No. 07/2012/QD-TTg;

- Expenses for petrol and oil of transport means used for forest patrol and inspection;

- Allowance for people mobilized in activities against illegal logging, forest destruction or forest fire; and for people who suffer accidents when mobilized to participate in these activities;

- Allowance for night shift, overtime working or in charge of part time task;

- Expenses for propagation, dissemination and education of the law; and professional retraining in forest management and protection;

- Expenses for conferences, seminars, preliminary and final reviews and commendation;

- Other expenditures (if any).

Article 4. Financial management of Fund administration work

1. The central fund

a/ Funds for the operation of the fund apparatus:

- Funds for the entrustment of forest environmental services as prescribed in the Decree No. 99/2010/ND-CP and its guiding documents;

- Entrustment charges under entrustment contracts;

- Interests from deposits being operational funds of the fund apparatus;

- Other lawful financial sources as prescribed by law.

b/ Expenditures for the operation of the fund apparatus:

- Regular expenditures:

Expenditures for management: salaries, allowances and contributions of fund management council members, the fund control board and the fund management board; postage and communication; fuel, electricity and water; working trips and conferences; and regular repair of assets as prescribed in current regulations of state.

Expenditures for professional operations: appraisal of programs and projects; payment services; examination; public information, propagation and advertising; and entrustment services.

Other expenditures (if any).

- Irregular expenditures: Professional retraining and drill, conferences; procurement and overhaul of assets servicing for the operation of the fund apparatus; other expenditures (if any).

c/ Expenditure levels: Levels of expenditures for professional operations, expenditures for management comply with current regulations. In case expenditure levels have not been prescribed by law, the fund based on its financial capacity, may formulate appropriate expenditure levels and decide on expense and take responsibility before law therefore.

d/ Financial regime of Fund: The fund shall perform under the financial regime applicable to public non-business units as prescribed in current regulations.

2. Provincial-level funds

a/ Expenditure source for the operation of the fund apparatus:

- Expenditure source for the entrustment of forest environmental services as prescribed in the Decree No. 99/2010/ND-CP and its guiding documents;

- Entrustment charges under entrustment contracts;

- Interests from deposits being operational funds of the fund apparatus;

- Other lawful funds as prescribed by law.

b/ Expenditures for the operation of the fund apparatus:

- Regular expenditures:

Expenditures for management: wages, allowances and contributions of management council members, the fund control board and the fund management board; postage and communication; fuel, electricity and water; working trips and conferences; and regular repair of assets under current regulations of state.

Expenditures for professional operations: appraisal of programs and projects; payment services; entrusted services; public information, propagation and advertising: inspection, examination, supervision, takeover test and assessment of forests; and audit (if any).

Other expenditures (if any).

- Irregular expenditures: Professional retraining and drills, conferences; technical assistance in monitoring quality of forest environmental services; support for activities relating to payment for forest environmental services in district and communal level; expenses for organizations authorized to collect compulsory contributions to funds; procurement and overhaul of assets serving the operation of the fund apparatus; other expenditures (if any).

c/ Expenditure levels: Levels of expenditures for professional operations and expenditures for management comply with current regulations. In case expenditure levels have not been prescribed by law, funds based on their financial capacity may formulate appropriate expenditure levels and decide on spending and take responsibility before law therefore.

d/ Financial regime of Funds: Funds shall implement the financial regime applicable to public non-business units under current regulations.

3. Commune-level funds:

Based on tasks, powers, organizational structures and capacity of financial sources of commune-level funds, provincial-level People's Committees shall provide on the operation of the commune-level fund apparatus (operational funds, expenditures, levels of expenditures and financial regime).

Article 5. Conditions of programs, projects and non-project activities be assisted

1. Programs, projects or non-project activities are decided by a competent authority;

2. Organizations being assisted have personnel with forestry expertise and experience in performing programs, projects or non-project activities that have been assisted by funds;

3. Households, individuals and village communities being assisted have full civil capacity for performing programs, projects or non-project activities assisted by funds.

4. Committing to refund the whole or part of capital as prescribed by the agency being competent for establishment of fund.

Article 6. Making provision for provincial-level funds

1. Provincial-level funds may deduct at most 5% of the total amount of entrustment transferred to provincial-level forestry protection and development funds and other lawful expenditure sources as a provision to support for households, individuals and village communities that are allocated or contracted for stable permanent forest protection in case happening natural disasters or droughts. Provincial-level People's Committees shall provide the annual deduction level.

The maximum level of above provision cash balance is 5% of entrusted payment for forest environmental services and other lawful funds in a reporting year.

2. When a natural disaster or drought happens in a province, based on the capacity of provision source and the disaster or drought, the director of the provincial-level fund shall make a plan to support organizations, households, individuals and village communities that are allocated or contracted for stable permanent forest protection and submit it to a competent authority for approval.

3. If the above provision source has not been used up in a year may be carried forward to the subsequent year for support of households, individuals and village communities that are allocated or contracted for stable and permanent forest protection when happening natural disasters or droughts; and not be used for other purposes.

Article 7. Making financial plan and settlement of Funds

1. The central fund:

a/ Making estimation:

Annually, the central fund shall make a financial plan on its revenues and expenditures and report it to the Ministry of Agriculture and Rural Development for approval in order to have the basis to implement:

- The plan on revenues: made in details for each revenue item specified in Clause 1, Article 2, (including initial central budget capital supported within two years since new establish) and Point a, Clause 1, Article 4 of this Circular;

- The plan on expenditures: made under each expenditure specified in Clause 1, Article 3, and Point b, Clause 1, Article 4 of this Circular;

b/ Finalization

The fund shall periodically (quarterly, annually) make revenue and expenditure finalization reports and send them to the Ministry of Agriculture and Rural Development which shall consider and approve annual finalization reports as prescribed.

2. Provincial- and commune-level funds

Pursuant to provisions in this Circular and current regime, provincial-level Agriculture and Rural Development Services shall assume the prime responsibility for, and coordinate with provincial-level Finance Services in, submitting provincial-level People's Committees to provide the order of and procedures for making plan and approving revenue and expenditure estimates and finalization of provincial-level funds and commune-level funds (including revenue and expenditure estimates for the operational expenditure of the fund apparatus) under current regulations.

Article 8. Accounting and management of assets

1. The central fund, provincial-level funds and commune-level funds shall apply the administrative and non-business accounting regime (promulgated together with the Decision No. 19/2006/ QD-BTC of March 30, 2006, of the Minister of Finance) in order to perform the funds' accounting.

2. The central fund, provincial-level funds and commune-level funds shall manage and use their assets in according to the Law on Management and Use of State Property and its guiding documents.

Article 9. Regime of examination, inspection and financial publicity

1. Funds shall implement financial publicity as prescribed by law.

2. The Ministry of Agriculture and Rural Development shall regularly or extraordinarily inspect the operations of central fund; Provincial-level Agriculture and Rural Development Services shall regularly or extraordinarily inspect operations of provincial-level funds. Inspection results must be sent to finance agencies of the same level for coordinated monitoring and management.

3. Based on management requirements, the Ministry of Finance shall inspect the financial statements of central fund and provincial-level Finance Services shall inspect financial statements of provincial-level funds and commune-level funds.

Article 10. Effect

1. This Circular takes effect on July 10, 2012.

2. Any problems arising in the course of implementation should be reported by units to the Ministry of Finance for consideration and settlement.-