VCN – The State Treasury has issued Official Letter No. 5324/KBNN-KSC to request treasury units to control spending and confirming accounting of expenditures and revenues in accordance with the law.
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The Official Letter stated that following directions of Minister of Finance Dinh Tien Dung at the online conference “Further promoting disbursement of ODA capital and preferential loans in 2019”, the State Treasury requests provincial and municipal treasury units to carry out some contents in spending control and accounting of expenditures and revenues of ODA projects and preferential loans.
Accordingly, the treasury units should proactively work with project investors and management boards to immediately send spending records and applications for accounting of expenditures and revenues to the State Treasury to carry out procedures for the records and accounting of expenditures and revenues, avoiding accumulation of records at the end of the year at the State Treasury.
The State Treasury also directs the units to implement the method of spending control on the principle of "paying first, controlling later" for multi-payment contracts according to the regulations of the Ministry of Finance and the guidance of the State Treasury to shorten the time of spending control; control expenditures, confirm the accounting of expenditures and revenues in compliance with the law, avoiding accumulation of unsolved records at the State Treasury over the prescribed time limit without reasons and notification to the treasury units.
For 2019, ODA projects, concessional loans, on-lending by local governments but procedures for singing of on-lending contracts the Ministry of Finance have not been completed, the State Treasury will control the confirmation of payment, accounting of expenditures and revenues of this capital source according to regulations, if capital plans (estimates) assigned by provincial or municipal People's Committees are available.
For ODA projects using concessional loans in the central budget mechanism of one time allocation, partial on-lending of local governments according to described rate; or local governments’ on-lent loans which have capital plans unallocated or have been fully allocated, the State Treasury will control the confirmation of payment, accounting of expenditures and revenues for capital which has been allocated in the capital plan of competent authorities. For the capital which has not been allocated in the plan or has been insufficiently allocated in the plan, the State Treasury will clearly note the reason for the refusal on the application for investment payment due to the lack of capital plan.
For ODA projects using concessional loans in the budget mechanism of one-time allocation, partial on-lending according to the described rate, allocated budget capital which has no assigned capital plan or lacks capital plan, the State Treasury shall control the confirmation of advance payment and pay completed capital from on-lending loans according to the on-lending rate. For allocated budget which has no capital plan assigned by the competent authority or lacks the capital plan, the State Treasury will note the reason for the refusal on the application for investment payment due to the lack of capital plan.
For projects using independent aid capital which are not associated with loans in the state budget revenues, units will control expenditures via the State Treasury in compliance with the guidance in Clause 3, Article 2 of the process of spending control and accounting of revenues and expenditures of official development assistance (ODA) capital and concessional loans of foreign donors in the State Treasury system. In other cases, spending control is only carried out under separate guidance of the Ministry of Finance. The control of confirmation and payment is implemented under the capital plan scope assigned by the competent authority.
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The accounting of revenues and expenditures for projects using independent aid, which are not associated with loans, shall comply with the provisions of Circular No. 225/2010 / TT-BTC of December 31, 2010 of the Ministry of Finance on the state financial management on foreign non-refundable aid classified as State budget revenues.
By Thuy Linh/ Huyen Trang