Determining the Asset Value of Grants and Aids for Covid-19 Prevention and Control: What are the Guidelines for Different Groups?
Determining the Value of Assets from Foreign Donations and Aid for Covid-19 Response?
According to Subsection 1.1 Section 1 Official Dispatch 8281/BTC-QLCS 2022 on determining the asset value of foreign donations and aid for Covid-19 response:
- First Group:
For goods and assets under ODA aid approved before the effective date of Decree No. 114/2021/ND-CP dated December 16, 2021, by the Government of Vietnam on the management and use of official development assistance funds (ODA) and concessional loans from foreign donors (December 16, 2021), and non-ODA aid from foreign agencies, organizations, and individuals to Vietnam approved before the effective date of Decree No. 80/2020/ND-CP dated July 8, 2020, by the Government of Vietnam on the management and use of non-refundable aid that is not part of official development assistance from foreign agencies, organizations, and individuals to Vietnam (September 17, 2020), will continue to be carried out under the regulations of Circular No. 225/2010/TT-BTC dated December 31, 2010, by the Ministry of Finance guiding financial management policies related to foreign aid under the state budget revenue.
Goods under aid will undergo aid confirmation procedures according to the process stipulated in Circular No. 225/2010/TT-BTC dated December 31, 2010, by the Ministry of Finance guiding state financial management policies for foreign aid under state budget revenue.
The value of the goods will be recorded in the state budget by the Ministry of Finance through the aid confirmation step, as stated in Point c Clause 10 Article 7 of Circular 225/2010/TT-BTC dated December 31, 2010, specifically:
"c) Prices listed on the Aid Confirmation Declaration:
+ Form C1-HD/XNVT “Declaration of Aid for Imported Goods”: based on the purchase price on the import invoice (FOB, CIF, C&F...).
In cases where the import aid goods are managed through an import entrustment contract or a bidding contract to purchase goods by a domestic enterprise, besides listing the purchase price on the import invoice, the project owner must also declare the actual price paid by the sponsor to the domestic enterprise from the aid source. The actual purchase value serves as the basis for the financial authority to record budget revenue and expenditure of the aid.
+ Form C2-HD/XNVT "Declaration of Aid for Domestic Goods, Services": Prices are declared without tax and with tax (if any) on the domestic supply of goods and services invoice. The no-tax purchase value is the basis for the financial authority to record budget revenue and expenditure of the aid."
- Second Group:
For aid approved under Decree No. 80/2020/ND-CP dated July 8, 2020, by the Government of Vietnam on the management and use of non-refundable aid not part of official development assistance from foreign agencies, organizations, and individuals to Vietnam, and Decree No. 114/2021/ND-CP dated December 16, 2021, by the Government of Vietnam on the management and use of official development assistance funds (ODA) and concessional loans from foreign donors. The recording of state budget for aid goods is as follows:
+ First: Aid goods approved under the regulations of Decree No. 114/2021/ND-CP dated December 16, 2021, by the Government of Vietnam, the budget record is carried out as stated in Clause 3 Article 90 of Decree No. 114/2021/ND-CP dated December 16, 2021, by the Government of Vietnam; Aid goods approved under the regulations of Decree No. 80/2020/ND-CP dated July 8, 2020, by the Government of Vietnam, the budget record is carried out as stated in Clause 4 Article 24 of Decree No. 80/2020/ND-CP dated July 8, 2020, by the Government of Vietnam.
These regulations do not provide for determining the value of aid goods.
+ Second: For in-kind aid, goods, and services where the foreign donor directly implements or entrusts a unit other than the program, project, non-project owner in Vietnam, or aid provided by the “key handover” method: The determination of the aid value is carried out under Clause 2 Article 13 of Circular 23/2022/TT-BTC dated April 6, 2022, by the Ministry of Finance guiding state financial management of non-refundable aid from foreign sources under state budget revenue, specifically: "For in-kind aid, goods, and services directly implemented by the foreign donor or entrusted to a unit that is not the program, project, non-project owner in Vietnam, and aid provided by the key handover method: The managing agency is responsible for determining the value of in-kind, goods, and services aid from the foreign donor."
Determining the value of foreign aid for Covid-19 response according to groups (Image from Internet)
Determining Asset Values Sponsored by Organizations and Individuals not Subject to State Budget Accounting?
According to Subsection 1.2 Section 1 Official Dispatch 8281/BTC-QLCS 2022, the guidelines for determining the value of assets sponsored by organizations and individuals not subject to state budget accounting are as follows:
For assets sponsored by organizations and individuals not subject to state budget accounting: it is carried out according to the provisions of Decree No. 29/2018/ND-CP dated March 5, 2018, by the Government of Vietnam, stipulating the procedures for establishing state ownership rights. In cases where the establishment of state ownership over the assets must be done and they are handled by assigning or transferring them to agencies, organizations, and units for use as stated in Decree No. 29/2018/ND-CP dated March 5, 2018, by the Government of Vietnam, valuation and reassessment of asset value must be recorded in the asset disposal plan.
How to Track and Record the Value of Assets and Goods Post-valuation?
According to Section 2 Official Dispatch 8281/BTC-QLCS 2022, the guidelines on tracking and recording the value of assets and goods post-valuation are as follows:
The tracking and recording of the value of assets and goods after valuation will be done according to the specific guidelines outlined in the current administrative and non-business accounting policies per Circular No. 107/2017/TT-BTC dated October 10, 2017.
Above is the content of Official Dispatch 8281/BTC-QLCS 2022 on determining the value of sponsored and aid assets for Covid-19 response to track and account for, issued by the Ministry of Finance on August 22, 2022.
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