Guidance on State Budget Accounting for Aid in Goods and Materials by the Ministry of Health

Non-refundable aid in the form of goods, materials, and equipment managed by the Ministry of Health is accounted for in the state budget as guided in Article 8 Circular 03/2013/TT-BYT, specifically: Quarterly, after receiving a notice from the Ministry of Finance regarding the recorded revenue and expenditure data of the state budget for in-kind aid as goods, materials, and equipment, within 5 working days, the Ministry of Health will notify the relevant units to monitor and settle the use of in-kind aid.

Illustrative image (source: internet)

Note that the above-mentioned state budget accounting guidance only applies to imported goods or domestic purchases directly procured and transferred by the donor to the user units. For goods, materials, and equipment imported or purchased from monetary aid sources, when declaring aid confirmation, units need to mark the "Request not to account for the state budget for this aid confirmation" section so that the Ministry of Finance does not duplicate the accounting of in-kind and monetary aid related to the same.

Additionally, Circular 03/2013/TT-BYT also guides the accounting of the state budget for in-kind aid used for basic construction projects under the "Turnkey" aid form through the following steps:

Step 1: Quarterly, after receiving a notice from the Ministry of Finance regarding the recorded advance revenue and expenditure data of the state budget for in-kind aid used for basic construction projects under the "Turnkey" aid form, within 5 working days, the Ministry of Health will notify the relevant units to monitor and compile the settlement upon project completion.

Step 2: After the project completion and handover for use, units must compile aid confirmation sheets and other related documents and evidence for the construction to prepare a "Completed Project Settlement Report" as prescribed in Circular 19/2011/TT-BTC on February 14, 2011, by the Ministry of Finance on the settlement of completed projects funded by state capital, and send it to the Ministry of Health (Department of Planning and Finance) to serve as a basis for the Ministry of Finance to recuperate the advance according to the value of the handed-over aid works.

In addition, the adjustment of state budget accounting is carried out regularly during the year to address discrepancies between the recorded revenue and expenditure data of the state budget and the actual settlement of foreign aid use. The adjustment process and the annual adjustment deadlines for recorded revenue and expenditure data of the state budget are prescribed in Clauses 2, 3, 4, 5 of Article 11 Circular 225/2010/TT-BTC.

More details can be found in Circular 03/2013/TT-BYT, effective from March 15, 2013.

Thu Ba

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