Circular 41/2021/TT-BTC financial disclosure Fund for Vaccination Prevention of Coronavirus Disease

• Official number: 41/2021/TT-BTC
• Legislation Type: Circular
• Organization: The Ministry of Finance
• Signer: Ta Anh Tuan
• Issued Date: 02/06/2021

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No. 41/2021/TT-BTC	Hanoi, June 02, 2021

CIRCULAR

ON GUIDELINES FOR ORGANIZATION, OPERATION, MANAGEMENT, USE AND COMPLIANCE WITH ACCOUNTING, SETTLEMENT AND FINANCIAL DISCLOSURE REQUIREMENTS OF VIETNAM FUND FOR VACCINATION PREVENTION OF CORONAVIRUS DISEASE 2019

Pursuant to the Law on State Budget No. 83/2015/QH13 dated June 25, 2015;

Pursuant to the Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

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

Pursuant to the Government’s Resolution No. 53/NQ-CP dated May 26, 2021 on establishment of Vietnam Fund for Vaccination Prevention of Coronavirus Disease 2019;

Implementing the Prime Minister’s Decision No. 779/QD-TTg dated May 26, 2021 on establishment of Vietnam Fund for Vaccination Prevention of Coronavirus Disease 2019;

At the request of the Director General of Department of State Budget and Director General of Department of Accounting and Auditing Regulations;

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Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides for organization, operation, management, use and compliance with accounting, settlement and financial disclosure requirements of Vietnam Fund for Vaccination Prevention of Coronavirus Disease 2019, which was established under the Prime Minister’s Decision No. 779/QD-TTg dated May 26, 2021 (hereinafter referred to as “Decision No. 779/QD-TTg”).

Article 2. Regulated entities

1. Vietnam Fund for Vaccination Prevention of Coronavirus Disease 2019 (VFVC)

2. Ministry of Finance and Ministry of Health

3. Relevant regulatory bodies, organizations and individuals

Article 3. Rules for VFVC operation

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2. VFVC may use the seal, funds and apparatus of State Treasury for assigned tasks.

Article 4. Rules for management of VFVC’s finance

1. VFVC shall collect revenues, use its funds and comply with accounting, settlement, reporting and financial disclosure requirements according to the guidelines of this Circular.

2. Financial activities of VFVC are subject to the inspection and audit of finance authority and State Audit Office of Vietnam; VFVC is under the supervision of Vietnam Fatherland Front and the community.

3. VFVC may deposit its idle funds at commercial banks to protect and develop its funds in a safe manner

4. After VFVC ends its operation and dissolves, all remaining funds (if any) must be contributed to central government budget to fund the purchase of vaccines for the Expanded Program on Immunization of the State.

Article 5. Determination of income subject to enterprise income tax for voluntary contributions, sponsorships and assistance received by VFVC

Voluntary contributions, sponsorships and assistance sent to VFVC may be deducted from income subject to enterprise income tax according to regulations of the Government’s Decree No. 44/2021/ND-CP and amendments thereto (if any).

Chapter II

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Section 1. DUTIES, POWERS AND ORGANIZATIONAL STRUCTURE OF VFVC

Article 6. Duties of VFVC

Duties of VFVC are provided for in Article 5 of Decision No. 779/QD-TTg.

Article 7. Powers of VFVC

1. Mobilize and receive voluntary contributions, sponsorships and assistance in cash and in the form of vaccines and other materials (excluding medical equipment, biological and materials used for COVID-19 prevention and control) from Vietnamese and foreign organizations and individuals.

2. Use its funds to support the purchase, import, domestic research and production and use of COVID-19 vaccines for the people with the Prime Minister’s approval and at the request of the Ministry of Health.

3. Open transaction accounts at State Treasury Transaction Office and commercial banks to receive contributions, sponsorships and assistance in cash from Vietnamese and foreign organizations and individuals.

At the end of each day, all balances on VFVC’s accounts at commercial banks before cut off time of delivery channels between the banks and State Treasury shall be transferred to VFVC’s account at State Treasury Transaction Office; amounts received by VFVC's accounts at commercial banks after cut off time shall be transferred to VFVC's account at State Treasury Transaction Office no later than the following working day.

4. VFVC may deposit its idle VND funds at commercial banks for no more than 03 months according to regulations in Article 18 herein to protect and develop the funds in a safe manner.

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Article 8. Organizational structure of VFVC

VFVC shall operate under the Prime Minister’s Decision No. 779/QD-TTg and the Minister of Finance’s direction via VFVC Management Board.

Article 9. VFVC Management Board

1. VFVC Management Board (hereinafter referred to as “Management Board”) shall be established under the Minister of Finance’s decision and consist of a director, deputy directors, chief accountant and some members being State Treasury officials appointed by the Minister of Finance.

2. Management Board shall operate on a part-time basis, and end its operation and dissolve after the competent authority announces the completion of COVID-19 vaccination.

3. Management Board shall take responsibility before the Minister of Finance and the law for all operations of VFVC.

Article 10. Functions and duties of Management Board

1. Manage and use VFVC funds as per the law; formulate and implement a plan for term deposit of VFVC idle VND funds at commercial banks to protect and develop the funds in a safe manner.

2. Comply with accounting, settlement, reporting and financial disclosure requirements according to the Law on Accounting and the guidelines of this Circular.

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1. Management Board Director shall be the holder of VFVC's accounts.

2. Management Board Director shall direct operations of Management Board; assign tasks concerning Management Board’s duties and powers to Deputy Directors, Chief Accountant and members of Management Board; sign reports, documents on settlement and financial disclosure of VFVC and documents within the competence of Management Board.

3. Management Board Director shall take responsibility before the Minister of Finance and the law for assigned tasks.

Article 12. Management Board Deputy Directors

1. Management Board Deputy Directors shall assist Management Board Director and perform tasks assigned or authorized by the Director.

2. Management Board Deputy Directors shall take responsibility before the Minister of Finance, Management Board Director and the law for assigned tasks.

Article 13. Management Board Chief Accountant

1. Management Board Chief Accountant shall perform tasks assigned by Management Board Director and take responsibility for VFVC’s accounting operations, financial reports and settlement reports as per the law and regulations of this Circular.

2. Management Board Chief Accountant shall take responsibility before the Minister of Finance, Management Board Director and the law for assigned tasks.

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 1. Members of Management Board shall perform tasks assigned by Management Board Director.

2. Members of Management Board shall take responsibility before the Minister of Finance, Management Board Director and the law for assigned tasks.

Section 2. VFVC FINANCE

Article 15. Revenue sources of VFVC

1. Revenue sources of VFVC include:

a) Voluntary contributions, sponsorships and assistance in cash (in VND and foreign currencies) and in the form of vaccines and other materials from Vietnamese and foreign organizations and individuals;

b) Interest from deposits at State Treasury and commercial banks;

c) Other lawful sources (if any).

2. Responsibility for receipt:

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b) Voluntary contributions, sponsorships and assistance in the form of vaccines from Vietnamese and foreign organizations and individuals shall be received, managed, distributed and used by the Ministry of Health according to regulations.

The Ministry of Health shall determine the value of vaccines contributed to VFVC in VND and submit a report on this matter to VFVC using Form No. 03-BC/QVX in the Appendix enclosed therewith every 10 days to consolidate into VFVC’s revenues and expenditure.

Value of vaccines in cash shall be determined based on invoices and documents provided by the sponsors; in case there is no invoice or document from a sponsor, such value shall be calculated provisionally to promptly consolidate it into VFVC’s revenues, and the Ministry of Health shall determine the official value as prescribed by law and report it to VFVC for adjustment (if there is discrepancy);

c) Voluntary contributions, sponsorships and assistance in the form of other materials (excluding medical equipment, biological and materials used for COVID-19 prevention and control) from Vietnamese and foreign organizations and individuals shall be received, managed and consolidated into VFVC’s revenues when they are sold by VFVC according to regulations.

3. Confirmation of voluntary contributions, sponsorships and assistance sent to VFVC:

In case organizations and enterprises wish to have their contributions to VFVC confirmed, Management Board shall confirm contributions in cash and in the form of other materials; and the Ministry of Health shall confirm contributions in the form of vaccines.

Confirmations shall be made using the form in the Appendix enclosed with Decree No. 44/2021/ND-CP.  

Article 16. Expenditure items of VFVC

VFVC shall be used to fund and support the purchase, import, domestic research and production and use of COVID-19 vaccines.

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1. The Ministry of Health shall take charge and cooperate with the Ministry of Finance in consolidating and proposing request for funding for purchase, import, domestic research and production and use of COVID-19 vaccines to the Prime Minister, who has the power to decide use of VFVC funds for purchase, import, domestic research and production and use of COVID-19 vaccines as per the law.

2. According to expenditure items approved by the Prime Minister, the Ministry of Health shall prepare an application for payout from VFVC as per regulations.

An application for payout from VFVC includes the Prime Minister’s written approval for expenditure items to be covered by VFVC and the Ministry of Health’s request for payout from VFVC (which must specify expenditure items; amount; name, address, account number and bank of payout recipient).

3. The Ministry of Health shall take full responsibility before the law and the Prime Minister for management and use of funds from VFVC for purchase, import and domestic research and production of COVID-19 vaccines; and management and use of COVID-19 vaccines purchased, imported and received from sponsors according to regulations.

Article 18. Term deposits of VFVC’s idle funds at commercial banks

1. Before the 25th of the last month of every quarter, based on the expenditure plan for the following quarter of the Ministry of Health, Management Board shall formulate a plan for term deposit of VFVC’s funds at commercial banks. In case the Ministry of Health does not submit the expenditure plan on time, VFVC shall temporarily stop depositing more funds to ensure liquidity.

2. Rules for term deposit of VFVC’s funds:

a) Deposits of VFVC’s funds at commercial banks selected by State Treasury shall have the terms applicable to temporary deposits of idle state funds;

b) Deposit term may be 01 month, 02 months or 03 months. Based on VFVC’s expenditure plans of the Ministry of Health, capacity of VFVC’s idle funds and market’s situation, Management Board shall proactively adjust deposit amount and term as appropriate;

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3. Based on list of commercial banks eligible to receive term deposits, VFVC shall sign framework agreements on term deposits of its funds with selected commercial banks. The framework agreements must specify the transfer method, deposit amount and interest provision and agreement on premature withdrawal.

4. Procedures for term deposits of VFVC’s idle funds:

a) At least 02 working days before the date where term deposit quotations are opened, VFVC shall send a physical or electronic notification of term deposit to all commercial banks eligible to receive VFVC’s funds as term deposit.

The notification shall include provisional deposit amount, deposit term and deadline and method for submission of term deposit quotations;

b) No later than 02:00 PM on the last day where term deposit quotations may be submitted, commercial banks shall submit their quotations to VFVC (by physical documents in envelops with seals or encrypted electronic documents), which shall specify deposit amount and interest rate corresponding to each deposit term. Each bank shall provide only one interest rate for each deposit term.

Time of receipt of physical quotations shall be determined based on the time written in the official dispatch receipt book with signatures of the delivery person and recipient; time of receipt of electronic quotations shall be determined based on the receipt time recorded by VFVC's IT system;

c) No later than 15 minutes after the quotation submission deadline, VFVC shall open quotations received. Based on information in the quotation of each bank, VFVC shall determine deposit amount and interest rate corresponding to each deposit term for each bank;

d) Within 01 working day from the date where quotations are opened, VFVC shall notify the result to each bank; concurrently, send a draft appendix to term deposit agreement to selected banks. The appendix shall include terms concerning deposit amount, deposit term, interest rate, deposit date and renewal date and other terms (if any).

Selected banks shall finalize the terms of the agreement’s appendix (excluding terms concerning deposit amount, deposit term and interest rate) with VFVC, with the deposit date no later than 02 working days after the date on which VFVC announces the bank selection result.

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5. Methods for determination of term deposit interest rate and amount:

a) Deposit interest rate of each commercial bank shall be the interest rate included in the bank's quotation and selected in descending order with the following conditions: the selected interest rates must not be lower than the minimum interest rate applicable to term deposit of state fund decided by the Ministry of Finance; and deposit amounts accumulated at up to the selected interest rates must not exceed the deposit amount announced by VFVC;

b) The amount deposited at each selected commercial bank shall be equivalent to the deposit amount corresponding to the interest rate selected by VFVC.

In case deposit amount accumulated at up to the lowest selected interest rate is higher than the deposit amount announced by VFVC, then after deducting the deposit amounts for higher interest rates, the remaining amount of the deposit amount announced by VFVC shall be distributed to commercial banks with the lowest selected interest rate as corresponding to the deposit amount for the lowest interest rate; deposit amounts distributed to commercial banks shall be rounded to VND billions.

Section 3. ACCOUNTING, SETTLEMENT, REPORTING AND FINANCIAL DISCLOSURE REQUIREMENTS

Article 19. Accounting vouchers

VFVC shall use debt notes, credit notes or bank/ State Treasury statements and prepare other relevant accounting vouchers according to regulations of the Law on Accounting and relevant documents.

For keeping accounts of revenue and expenditure concerning sponsored vaccines, VFVC’s accountants shall record revenue and expenditure based on the Ministry of Health’s reports mentioned in Point b Clause 2 Article 15 herein.

Article 20. Accounting accounts

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No.

Code of account

Code of sub-account/ sub-sub-account

Name of account

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112

Cash in bank/ State Treasury

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1121

Cash in VND

1122

Cash in foreign currency

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411

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511

Vaccine fund revenue

5111

Revenue from sponsorship

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51111

Sponsorship in cash

51112

Sponsorship by vaccine

5118

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4

611

Vaccine fund expenditure

6111

Expenditure in cash

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61111

Expenditure on vaccine purchase/ import

61112

Expenditure on domestic vaccine research and production

61113

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6112

Use of sponsored vaccines

2. Account content and structure:

a) Account 112 - Cash in bank/ State Treasury:

- Purpose: this account shall be used to record current amounts and increases and decreases in demand and term deposits of VFVC at banks/ State Treasury.

- Bookkeeping rules:

+ The accountant must open books to closely and separately monitor term deposits and demand deposits at banks; deposits in VND and other foreign currencies; and each deposit account at each bank/ State Treasury closely to facilitate inspection and comparison

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+ Upon receipt of documents from banks/ State Treasury, the accountant must check and compare with original documents enclosed therewith.

If there is any difference between figures in VFVC’s ledger, in original documents and in documents of the bank/ State Treasury, VFVC must notify the bank/ State Treasury to compare, verify and handle promptly. At the end of the month, if it fails to uncover the reason for such difference, the accountant shall record according to the bank/ State Treasury's figures stated in debit notes, credit notes or statements. In the following month, continue to inspect, compare and determine the reason to adjust the figures.

+ Upon receipt of revenue or expenditure in foreign currencies, the accountant must keep records of cash according to currency in details and exchange foreign currencies into VND according to the conversion rates announced by the Ministry of Finance at the time of receipt/ expenditure.

+ Balances of VFVC's demand deposit accounts at banks shall be transferred to VFVC’s deposit account at State Treasury Transaction Office at the end of every day as per regulations.

+ When preparing financial statements, VFVC must reevaluate balances in foreign currencies according to conversion rates announced by the Ministry of Finance.

- Account content and structure:

Debit:

+ Cash in VND and foreign currencies received by VFVC’s accounts at banks/ State Treasury.

+ Increase in exchange rate due to reevaluation of foreign currency balance at the reporting time.

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+ Cash in VND and foreign currencies withdrawn from banks/ State Treasury.

+ Decrease in exchange rate due to reevaluation of foreign currency balance at the reporting time.

Debit balance:

+ Cash in VND and foreign currencies currently deposited at banks/ State Treasury.

Account 112 - Cash in bank/ State Treasury comprises 2 sub-accounts:

- Account 1121 - Cash in VND

- Account 1122 - Cash in foreign currency

b) Account 411 - Vaccine fund:

- Purpose: this account shall be used to record contributions in cash from Vietnamese and foreign organizations and individuals and other lawful revenue sources not yet spent and currently managed by VFVC.

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+ This account shall be used to record funds in VND and foreign currencies not yet spent at the end of the accounting period.

+ At the end of the accounting period, before preparing the financial statement, the accountant must transfer all recorded revenues and expenditure in the accounting period and determine differences to transfer to the fund.

- Account content and structure:

Debit:

+ Increase in vaccine fund due to revenue in the accounting period.

+ Decrease in exchange rate due to reevaluation of foreign currency balance at the reporting time.

Credit:

+ Decrease in vaccine fund due to expenditure in the accounting period.

+ Increase in exchange rate due to re-evaluation of foreign currency balance at the reporting time.

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+ Vaccine fund balance in cash currently managed by Management Board.

c) Account 511 - Vaccine fund revenue

- Purpose: this account shall be used to record VFVC’s revenues from sponsors and other lawful revenues per regulations in cash and in kind.

- Bookkeeping rules:

+ Revenues in cash shall be recorded based on credit notes of banks/ State Treasury.

+ The accountant shall exchange sponsorships in foreign currencies according to conversion rates announced by the Ministry of Finance to record them.

+ Sponsorships in the form of vaccines received, managed and used by the Ministry of Health shall be recorded based on the Ministry of Health’s reports (made using Form No. 03-BC/QVX in Appendix enclosed with this Circular).

+ Sponsorships in the form of other materials shall be recorded based on deposit slips when they are sold.

+ The accountant shall open ledgers to closely monitor contribution from each sponsor (in VND and foreign currencies).

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- Account content and structure:

Debit:

+ Revenues concluded in the accounting period to determine remaining fund.

+ Decrease in revenue (if any).

Credit:

+ Revenues in VND and foreign currencies.

+ Revenues in kind recorded according to the Ministry of Health’s reports.

Balance: this account has no closing balance. Before preparing the financial statement, the accountant must transfer all revenues recorded in the accounting period to determine remaining fund.

Account 511 - Vaccine fund revenue comprises 02 sub-accounts:

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This account comprises 02 sub-sub-accounts:

+ Account 51111 - Sponsorship in cash shall be used to record revenues in cash (VND and foreign currencies) and revenues from sale of other materials contributed by sponsors.

+ Account 51112 - Sponsorship by vaccine shall be used to record receipt and use of sponsorships in the form of vaccines received, managed and used by the Ministry of Health.

- Account 5118 - Other revenue shall be used to record interest from term deposits and other lawful revenues of VFVC.

d) Account 611 - Vaccine fund expenditure:

 - Purpose: this account shall be used to record expenditures from VFVC on purchase, import, domestic research and production and use of COVID-19 vaccines.

- Bookkeeping rules:

+ Expenditures from VFVC on relevant activities shall be recorded as per regulations.

Any funding allocated from VFVC that remains must be returned to VFVC to record decrease in VFVC’s expenditure.

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b) Account content and structure:

Debit:

+ Expenditures on purchase, import, domestic research and production and use of COVID-19 vaccines in the accounting period.

+ Vaccines used according to the Ministry of Health’s reports.

Credit:

+ Decrease in expenditure due to excess funding returned to VFVC.

+ Expenditure recorded in the accounting period to determine remaining fund.

Balance: this account has no closing balance. At the end of the accounting period, before preparing the financial statement, the accountant must transfer all expenditures recorded in the accounting period to determine remaining fund.

Account 611 - Vaccine fund expenditure comprises 02 sub-accounts:

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This account comprises 03 sub-sub-accounts:

+ Account 61111 - Expenditure on vaccine purchase/ import shall be used to record expenditures on vaccine purchase and import from VFVC.

+ Account 61112 - Expenditure on domestic vaccine research and production shall be used to record expenditures on domestic vaccine research and production from VFVC.

+ Account 61113 - Expenditure on vaccine use shall be used to record expenditures on vaccine use from VFVC.

- Account 6112 - Use of sponsored vaccines shall be used to record revenues and expenditures in kind.

2. Methods for performance of accounting operations at VFVC are provided for in Appendix enclosed therewith.

Article 21. Ledgers

VFVC must open ledgers to record all revenue and expenditure operations of VFVC.

If VFVC receives sponsorships in the form of other materials, it shall open a ledger to record the sponsorships until they are sold and the money received is contributed to VFVC.

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Article 22. Financial statements of VFVC

1. Reporting period:

At the end of each accounting period (monthly, biannual and annual bases), VFVC shall formulate and submit a financial statement to the Ministry of Finance.

Monthly and biannual statements shall be submitted within 05 days after the last day of the month or 6-month period. Annual statements shall be submitted by January 15 of the following year.

2. Forms and formulation methods:

Financial statements of VFVC shall be made using Form No. 01-BC/QVX. Forms of and methods for formulation of VFVC's financial statements are provided for in Appendix enclosed therewith.

Article 23. Final accounts of VFVC

1. Reporting period:

When VFVC ends its operation, it must formulate and submit its final accounts to the Ministry of Finance for approval as per the law. In addition, it shall submit reports at the request of competent authority.

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2. Forms and formulation methods:

Final accounts of VFVC shall be made using Form No. 02-BC/QVX. Forms of and methods for formulation of VFVC's final accounts are provided for in Appendix enclosed therewith.

Article 24. Reports on VFVC’s revenues and expenditures

1. The Ministry of Finance shall:

a) Submit a consolidated report on VFVC’s revenues and expenditures to the Prime Minister on a biannual basis;

b) Based on final accounts of VFVC, submit a consolidated report to the Prime Minister and Government, which will be included in socio-economic and state budget reports submitted to the National Assembly.

2. VFVC shall provide information and submit ad hoc reports at the request of regulatory bodies as prescribed by law and at the request of its sponsors (if any).

Article 25. Disclosure of financial statements of VFVC

1. VFVC shall disclose its monthly, biannual and annual financial statements and final accounts made using the forms in Appendix enclosed therewith.

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3. Monthly and biannual statements shall be published within 10 days after the last day of the month or 6-month period; annual statements shall be published by January 31 of the following year and final accounts shall be published within 30 days after they are approved by the Ministry of Finance.

4. VFVC shall publish the statements and accounts via the web portal of the Ministry of Finance and one or more than one of the following ways: disclosed in meetings, posted at VFVC’s office, published in publications, notified in writing to relevant ministries, organizations and units, and announced via mass media.

Chapter III

IMPLEMENTATION PROVISIONS

Article 26. Effect

1. This Circular takes effect from the date on which it is signed.

2. During the implementation of this Circular, any difficulty arising should be promptly reported to the Ministry of Finance for consideration and guidance./.

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