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THE
MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
36/2002/TT-BTC
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Hanoi, April 22, 2002
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CIRCULAR
GUIDING THE FINANCIAL
MANAGEMENT REGIME APPLICABLE TO THE PEASANT ASSISTANCE FUND OF VIETNAM PEASANTS’ ASSOCIATION
Materializing the Prime Minister’s direction in
Document No.4035/KTTH of July 26, 1995 on the setting up of the Peasant
Assistance Fund; the Prime Minister’s Official Dispatch No.492/CP-KTTH of May
19, 2000 on transferring a capital amount of VND 40 billion to the Peasant
Assistance Fund for management, the Finance Ministry hereby guides the
financial management regime applicable to the Peasant Assistance Fund of
Vietnam Peasants Association in replacement of Circular No.73-TC/TCNH of
October 9, 1995, as follows:
I. GENERAL PROVISIONS
1. The Peasant Assistance Fund (hereinafter
referred to as the Fund for short) shall operate not for the profit-making
purpose, support and assist peasants in developing the rural production.
2. The Fund shall take self-responsibility for
its operations before law, enjoy the financial autonomy, ensure the capital
safety and not have to pay taxes to the State budget.
3. The financial revenue and expenditure
activities of the Peasant Assistance Fund shall be subject to the direction and
management by the Executive Board of the Vietnam Peasants Association Central
Committee.
4. The Fund shall effect financial revenues and expenditures
and conduct accounting and settlement thereof according to the Ordinance on
Accounting and Statistics, the State’s general financial regime and contents
guided in this Circular.
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II. FINANCIAL MANAGEMENT CONTENTS
1. Regarding capital sources:
Operation capital of the Fund shall be formed
from the following sources:
- Capital allocated by the State: VND 40
billion.
- Capital mobilized from domestic and foreign
organizations and individuals as supports, interest-free or low-interest rate
loans.
- Capital received from financial aid sources of
international organizations, foreign organizations and individuals, to assist
the socio-economic development of Vietnam’s rural areas.
- Capital entrusted by the State or provided by
the domestic and foreign organizations as financial support for agricultural
and rural development.
- Annually self-supplemented capital.
The Fund must not mobilize and borrow capital in
forms of savings, promissory notes, bills, commercial loans, etc., like credit
institutions engaged in monetary trading.
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The operation capital source of the Fund shall
be used to assist peasants, especially poor family households, in acquiring
funds for production development. Capital shall be provided as assistance to
peasants in form of interest-free refundable assistance loans (within given
limits and terms), and with fee collection.
The Fund shall have to manage and use capital for
the right purposes, the right subjects and with efficiency, promptly and fully
recover capital amounts lent as assistance to peasants in order to preserve its
capital, and then refund fully and promptly financial aids to organizations and
individuals in form of refunding.
The Fund must not use its operation capital for
the business purpose of earning profits from monetary trading.
3. Regarding fee collection:
The Peasant Assistance Fund shall be entitled to
collect fee for the capital amounts lent as assistance to peasants. The fee
levels shall be collected on the following principles: Ensuring the defrayal of
necessary expenses for the Fund’s operation, including fee and interest paid to
individuals and organizations that provide financial aids (with collection of
fee or interest with preferential interest rates); the payment of wages,
working trip allowance, stationery expenses and other necessary expenses for
the Fund’s operation; at the same time, the fee levels must suit each type of
households, each region and each period. More concretely:
- The lending fee level applicable to poor
households shall be lower than that applicable to non-poor households.
- The lending fee level applicable to households
in mountainous regions or islands shall be lower than that applicable to
households in delta and midland regions.
- The highest lending fee level must not exceed
80% of the lending interest rate applicable to loans of the same term provided
by local credit institutions at the same time.
Basing itself on the above-said principle, the
Executive Board of the Vietnam Peasants Association Central Committee shall
direct and guide the Fund to formulate a fee table. The former shall sign a
decision to promulgate the fee table for implementation by the latter.
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4. The Fund’s financial revenues and
expenditures:
a/ The Fund’s revenues shall include the
following:
- Collected fee for provision of assistance
loans to its member;
- Collected charge for entrusted lending
service;
- Other revenues: contributions of domestic and
foreign organizations and individuals for the Fund’s operations (if any).
The Fund shall have the responsibility to
correctly, fully and promptly collect revenues.
b/ The Fund’s operation expenses:
- Professional operation expenses include:
+ Fee paid to domestic and foreign organizations
and individuals that provide financial aids to the Fund with collection of fee.
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+ Other expenses (if any).
- Managerial expenses:
+ Wages paid to the Fund’s officials (for those
not on the payrolls of the Peasants Association chapters at all levels). The
wage payment shall be decided by the Executive Board of the Peasants
Association Central Committee according to the State’s current regulations.
+ Allowances paid to the Association’s officials
assigned to manage and administer the Fund. Basing himself/herself on the
actual revenue sources, the Chairman of the Vietnam Peasants Association shall
specify the appropriate allowance levels. The maximum allowance level shall not
exceed 50% of the wage level of the Association’s officials assigned to manage
and administer the Fund.
+ Social insurance and medical insurance
premiums and other payable wage-based amounts according to the regime
prescribed by the State (for officials not on the payrolls of the Peasants
Association chapters at all levels).
+ Working trip allowance.
+ Expenses for basic depreciation, repair and
procurement of working tools (for assets under the Fund’s management).
+ Other necessary and reasonable expenses, such
as those for professional training, conferences, guest reception, etc.
+ Deductions for setting up the risk reserve:
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* The deduction time shall be the ending day of
each month.
* The reserve fund shall be at most equal to 10%
of the debit balance by December 31 each year, the surplus (if any) shall be
added to the operation capital.
The risk reserve fund shall be used to make up
for irrecoverable debts from assistance loans. The Fund shall elaborate the
regulation on deduction for setting up, management and use of the risk reserve
fund, then submit it to the Chairman of the Vietnam Peasants Association for
promulgation after reaching agreement with the Finance Ministry.
c/ Distribution of revenue-expenditure
difference:
The positive annual revenue-expenditure
difference shall be distributed as follows:
1.8%/year on the State capital at the Fund shall
be deducted to supplement the State capital at the Fund.
The remainder (assumed 100%) shall be concretely
distributed as follows:
- 50% shall be deducted to supplement the
operation capital for provision of assistance loans.
- 20% shall be deducted to set up the fund for
capital construction and procurement of assets in service of the Fund’s
operation.
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The remainder (if any) of the
revenue-expenditure difference after deduction for setting up reward fund and
welfare fund shall be added to the fund for investment in capital construction
and asset procurement.
5. Accounting and book-keeping regime:
- Basing itself on the Ordinance on Accounting
and Statistics, the State’s current accounting regime, the Executive Board of
the Vietnam Peasants Association’s Central Committee shall formulate an
accounting regime suitable to the Fund’s operation characteristics and send it
to the Finance Ministry. After obtaining the Finance Ministry’s approval, the
Executive Board of the Vietnam Peasants Association’s Central Committee shall
sign a decision to promulgate it for implementation.
- The Fund shall have to open accounting books,
make voucher recording and conduct the accounting and book-keeping in strict
compliance with the regime prescribed in the Ordinance on Accounting and
Statistics and the regulations on Executive Board of the Vietnam Peasants
Association Central Committee and the Finance Ministry.
- The Fund shall have to make the financial
settlement and send to the Finance Ministry and the Executive Board of the
Vietnam Peasants Association Central Committee the following quarterly and
annual reports:
+ Asset balance sheet;
+ Account balance sheet;
+ Financial settlement report (income and
expenditure report);
+ Report on capital source and use (in which the
annual capital increase on the State capital amount deducted from the
above-said retained revenue-expenditure difference must be clearly stated).
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+ Quarterly settlement report must be sent
within 40 days after the end of each quarter.
+ Annual settlement report must be sent on the
1st of March of the following year at the latest.
6. Financial inspection and supervision regime:
- The Fund shall have to organize and conduct
the inspection and supervision of financial revenue and expenditure activities
of the Fund and its grassroots units in strict compliance with the guidance in
this Circular and other relevant financial regimes.
- The Executive Board of the Vietnam Peasants
Association Central Committee shall have to inspect, supervise, consider and
approve the annual financial settlements of the Fund; coordinate with the
Finance Ministry in inspecting the Funds financial matters when necessary.
- The finance agency shall have to inspect the
observance of the financial regimes by the Fund.
7. Elaboration of annual plans:
The Fund shall have to elaborate annual
financial plans for consideration and approval by the Executive Board of the
Vietnam Peasants Association Central Committee, and send to the Finance
Ministry at the prescribed time the plan documents of the following year,
including:
+ Plan on the source and use of peasant
assistance capital.
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The approved plan norms shall serve as basis for
the Fund’s implementation in the year.
III. ORGANIZATION OF IMPLEMENTATION
1. The Peasant Assistance Fund shall be held
responsible before law for the management, use and preservation of the State’s
capital and assets under the Fund’s management for providing assistance loans
to peasants, and subject to the inspection of the State finance agency
according to the Ordinance on Accounting and Statistics and regulations of the
financial regime in this Circular.
Where the Fund uses capital not for the right
purposes, the Finance Ministry shall report such to the Prime Minister for
recovery of capital amount already allocated by the State to the Fund for
management and use.
2. The Executive Board of the Vietnam Peasants
Association’s Central Committee shall have to organize the monitoring and
inspection of financial activities of the Fund, ensuring that the Fund’s
capital is managed and used for the right objectives and in line with the
Peasants Association’s policies, and the financial revenues and expenditures
are effected in strict compliance with the prescribed financial policies and
regimes.
On the basis of the financial management regime
applicable to the Peasant Assistance Fund guided in this Circular, the
Executive Board of the Vietnam Peasants Association Central Committee shall
promulgate specific guiding documents for the Fund.
3. This Circular takes effect 15 days after its
signing and replaces the Finance Ministry’s Circular No.73-TC/TCNH of October
9, 1995 guiding the financial management regime applicable to the Peasant
Assistance Fund of the Vietnam Peasants’ Association.
Any problems arising in the course of
implementation should be reported to the Finance Ministry for study and timely
supplementation and/or amendment.
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FOR THE MINISTER OF FINANCE
VICE MINISTER
Le Thi Bang Tam