Cost Norms For Financing of Local Costs For Vietnam … Vietnam Red Cross programs/projects Supported by the International Federation of the Red Cross and Red Crescent Societies and

HUMANITY-IMPARLITY-NEUTRALITY-INDEPENDENCE-VOLUNTARY-UNITY-UNIVERSALITY

Cost Norms For Financing of Local Costs For Vietnam Red Cross programs/projects Supported by the International Federation of the Red Cross and Red Crescent Societies and Partnership National Societies of the Red Cross Dated: May 5th, 2011

IFRC/PNS/VNRC VERSION - MAY 2011 2/15

Table of Contents COST NORMS FOR FINANCING OF DIRECT LOCAL COSTS INCURRED IN VIETNAM .................... 3

1. PER DIEM ........................................................................................................................................ 3

2. TRAVEL AND/OR PARTICIPATION ALLOWANCE ..................................................................................... 3

3. FOOD ALLOWANCE AND DAILY MEALS ................................................................................................ 4

4. ACCOMMODATION ............................................................................................................................ 4

5. FEES FOR TRAINERS/FACILITATORS, LOGISTIC ASSISTANTS CUM ORGANIZERS ..................................... 4

Trainers/facilitator ...................................................................................................................................... 4

Logistic assistant cum organizer ............................................................................................................. 5

6. FEE FOR DOCUMENT TRANSLATION ................................................................................................... 5

7. FEE FOR WRITING/COMPILING/EDITING MANUALS AND BOOKS .............................................................. 6

8. TRAVEL EXPENSES ........................................................................................................................... 6

9. COSTS FOR TRAINING FACILITIES AND MISCELLANEOUS EXPENSES ...................................................... 6

10. PROJECT MANAGEMENT COSTS ........................................................................................................ 7

Salary .......................................................................................................................................................... 7

Communication .......................................................................................................................................... 8

Stationery/administration .......................................................................................................................... 8

COST NORMS FOR FINANCING OVERHEAD/INDIRECT COSTS ........................................................ 9

COST NORMS FOR FINANCING MEETING / WORKSHOP / TRAINING / STUDY TOUR OUTSIDE VIETNAM .................................................................................................................................................... 9

REFERENCES ......................................................................................................................................... 11

ANNEXES ................................................................................................................................................ 12

STATISTIC OF ROAD KILOMETRES INSIDE VIETNAM (KM) ........................................................................... 12

STATISTIC OF ROAD KILOMETRES FROM HANOI TO OTHER PLACES IN THE NORTH OF VIETNAM ................... 13

STATISTIC OF ROAD KILOMETRES IN THE SOUTH OF VIETNAM ................................................................... 14

SIGNATORIES ......................................................................................................................................... 15


Cost norms for financing of direct local costs incurred in Vietnam

1. Per diem Per diem will be paid to non-residential Vietnam Red Cross (here in after VNRC) project/program staff for participation in in-country trainings, meetings, workshops, seminars, conferences, events and monitoring. The payment of the per diems is to cover meals and incidental expenses (such as tips, laundry, toiletries). Per diem will not be paid for normal and regular project meetings.

Per diems are applied for full working days plus travel days and will be paid by end of the day. Over night stay is not required for payment of the per diem. However, half day participation can be considered to be paid at 50% of the applicable per diem rate. Long hour travel days can be covered at full per diem rate, while short hour travel days can only be covered at 50% of the applicable rate. Long and short hour travel will be justified by each program/project.

The per diem is proportioned as 10% for breakfast, 40% for lunch, 40% for dinner and 10% for other expenses. If full board is provided, only 10% of the per diem will be paid.

No double payment for allowances or fees (except trainer fees) is provided. The reimbursement for per diems will be based on submission of attendance list per half of day, list of participants who receive per diem, travel request (giấy đi đường) stipulated by Vietnam Red Cross. Workshop/seminar/conference/monitoring/trip reports or meeting minutes of activities concerned are also to be submitted.

Per diem for participation in training, workshop, seminars, conferences and event is based on location (see table 1) while per diem for monitoring is based on the place of origin and is classified into three categories (see table 2).

The maximum reimbursable rates are as follows:

Table 1 - Per diem for participation in training, workshop, seminars, conferences and event

Location Maximum rate (VND)

Province 230,000 / person / day

District 130,000 / person / day

Commune 100,000 / person / day

Table 2 - Per diem for participation in monitoring

Categories Maximum rate (VND) Inter-province (staff who travel out of their home province) 230,000 / person / day

Inter-district (staff who travel out of their home district) 130,000 / person / day

Inter-commune (staff who travel out of their home commune) 100,000 / person / day

Per diem for monitoring will not be paid to staff who already received a monthly monitoring allowance depending on the volume of work.

2. Travel and/or participation allowance

Travel and/or participation allowance will be paid to non Vietnam Red Cross staff for participation in trainings, meetings, workshops, seminars, conferences, events and monitoring. The rates and payment principles applied will be as described in article 1.


3. Food allowance and daily meals Food allowance: Food allowance will be paid to both VNRC and non-VNRC residential staff for participation in trainings, meetings, workshops, seminars, conferences, events. The payment of food allowance requires full participation in the whole day of the events and will be paid by end of the day. Food allowance is calculated based on 40% of the per diem (see table 3).

Daily meals: In case daily meals need to be arranged for staff and non-staff who participate in trainings, meetings, workshops, seminars, conferences and events, the expenses for daily meals will be covered at actual cost. The per diem will be deducted based on table 3 of the applicable rate and not on actual cost. Those who choose not to use the provided meals will not be paid a food allowance.

No alcohol is allowed at gatherings and daily meals.

The reimbursement of meal expenses will base on the submission of official (red) invoices.

Food allowance and daily meals will not be paid for normal and regular project meetings.


Table 3:

Location Maximum rates (VND)

Province 90,000 / person / meal

District 50,000 / person / meal

Commune 40,000 / person / meal

4. Accommodation

Accommodation costs are reimbursed at actual cost to program/project staff, national consultants/experts who participate in trainings, meetings, workshops, seminars, conferences, events and monitoring missions for overnight staying away from the place of residence.

The reimbursement for accommodation will be based on submission of official invoices (red invoices) at provincial and district levels. At commune level, the staff will receive accommodation allowance and only receipts are needed.

Accommodation will not be covered for staff whose home is less than 30km far away from the site. However, exception can be made upon prior approval.


Table 4:

Description Maximum rates (VND)

Provincial level Hanoi, Ho Chi Minh 600,000 / double room / day

Elsewhere 450,000 / double room / day

District level 190,000 / double room / day

Commune level (allowance) 100,000 / person / day

5. Fees for trainers/facilitators, logistic assistants cum organizers

Trainers/facilitator


VNRC and non-VNRC trainers who train other persons at VNRC training courses are paid a trainer fee. This fee is exclusive of other allowances (per diem).

Fee for non VNRC trainers will be paid at actual cost. The selection of a non VNRC trainer will be based on service proposals, CVs and market rates but not higher than EC Cost Norm.

For both VNRC and non VNRC trainers the reimbursement of trainer fees will be based on submission of ToR (terms of references), service contracts (if non VNRC) and receipts.

The maximum reimbursable rates for VNRC trainers are as follows:

Table 5:

Description Maximum rates (VND) Senior trainer/facilitator (grade: Prof., Dr., high-level expert) Preparation for PowerPoint presentation/syllabus is required)

200,000 / person / session or 4 hours (maximum 2 persons per session)

Junior trainer/facilitator (Preparation for PowerPoint presentation/syllabus is required)

150,000 / person / session or 4 hours (maximum 2 persons per session)

Simple trainer/facilitator (Preparation for PowerPoint slides/syllabus is NOT required)

100,000 / person / session or 4 hours (maximum 2 persons per session

Guide (Providing very simple conduction to people at the commune level)

50,000 / person / session or 4 hours (maximum 2 persons per session

Logistic assistant cum organizer Fee is paid to a logistic assistant cum organizer who organizes and provides the services for a training, workshop, seminar, conference or event when project staff is not available to carry out this job. However, this must be approved by donor/partner in advance. No double payment for allowances (per diem) is provided for logistic assistant cum organizer. Per day maximum two persons are paid. The reimbursement for Logistic assistant cum organizer fee will be based on submission of receipts.


Table 6:


Logistic assistant cum organizer 190,000 / person / day (maximum 2 persons per day)

Note: Government officials or VNRC leaders who are required to deliver speeches at trainings, workshops, seminars and conferences will not receive a Speaker fee.

6. Fee for document translation

Translation fee can be reimbursed at actual cost, based on submission of receipts (if the fee is paid to individuals) or official invoice (if fee is paid to a Translation Company) and contract.


Table 7:

Translation (typing and editing) Maximum rates (VND)

Vietnamese – English 120,000 / page / 350 words

English – Vietnamese 105,000 / page / 350 words

Translation editing 30,000 / page / 350 words

* Rates may be increased by 20 % for exceptional circumstances such as in emergency


7. Fee for writing/compiling/editing manuals and books

Reimbursement of fees at actual cost for writing/compiling/editing is based on submission of contract and receipts.


Table 8:


VNRC staff to compile/write new manuals/books 70,000 / page / 350 words

VNRC staff to comment/edit on manuals/books No pay

8. Travel expenses

Per diem will be paid to VNRC project/program staff for participation in in-country trainings, meetings, workshops, seminars, conferences, events and monitoring.

Travel by air: reimbursement at actual cost of travel in Economy Class, based on submission of receipts, air ticket stubs and boarding passes. Business Class for both domestic and international travel will not be reimbursed.

Travel by train: reimbursement at actual cost based on submission of receipts and tickets.

Travel by land: when transport has not been provided by the project/programme, reimbursement will be:

- At actual cost based on receipts, tickets and public transport fares;

- Based on a lump-sum of maximum VND 2,000 per km, if public transport is not available and if his/her home is over 10km far from the site; or based on a lump-sum stipulated by each budget of program/project.

- At actual cost for transportation to the airport stipulated by “NOI BAI Taxi” agency based on the submission of official invoices (red invoices). The use of the taxi should be shared with other team member. Exceptions need explanation.

Rental of vehicles: reimbursement at actual cost based on submission of official invoices (red invoices) and rental contract/agreement. No reimbursement will be made in case a project vehicle is used.

The reimbursement is based on the current price of 20 litres of petrol per 100 kilometres and the submission of official invoices (red invoices), car order (lệnh điều xe) which states the number of kilometres. The use of VNRC’s vehicle should be shared with other team members.

Lump-sum payment for travel cost: travel expense related to monitoring can be reimbursed at a lump-sum stipulated by each budget of program/project.

9. Costs for training facilities and miscellaneous expenses

Reimbursement for training facilities and miscellaneous expenses is at actual cost based on the submission of official invoices (red invoices), except hall rent at district and commune level, only contracts and receipts for reimbursement.


The use of VNRC meeting room will be considered as part of VNRC contribution to the project.


Table 9:


Hall rent for 25 participants (including banner, loudspeaker, micro, flowers…)

Provincial/City level: Hanoi, Hai Phong, Ha Long, Hue, Da Nang, Ho Chi Minh, Nha Trang, Can Tho, Vung Tau

4,000,000 / day

Provincial level: elsewhere 2,000,000 / day

District & commune level 600,000 / day

VNRC meeting room at all levels No pay

Tea break Provincial level 40,000 / person / day

District & commune level 20,000 / person / day

Stationery (pens, notebooks, papers, clear bags, A0 papers, whiteboard markers)

Provincial level 20,000 / person / day

District & commune level 15,000 / person / day

Photograph, pictures, certificates

Provincial level 200,000 / workshop

District & commune level 100,000 / workshop

Manual (hands out, photocopy) Actual cost

10. Project management costs

Salary The salary for VNRC staff of the programs/projects will be reimbursed based on his/her actual time contribution to program/project. Time contribution for project of VNRC staff at all level must be discussed and agreed in advance when budgeting. Salary includes all social charges such as social and health insurances, Unemployment Insurance and Personal Income Tax. It is VNRC’s responsibility at related levels to control and process payments to the Government for the above mentioned contribution stipulated by the law of Vietnam.

The reimbursement of salary is based on the submission of job descriptions, pay slips and VNRC decision on project staff assignment at all levels. The reimbursement of salary also requires the submission of monthly timesheets at HQ level but not at other levels. No over time is paid to program/project staff.

The maximum reimbursable rates for full time position are as follows:

Table 10:

Description Maximum rates (VND) Requirements

Project Manager/Director – HQ level 8,780,000 / person / month

Project Officer/Coordinator – HQ level 5,860,000 / person / month Prepare report in both English and Vietnamese


Project Assistant – HQ level 5,120,000 / person / month

Project Accountant – HQ level 5,120,000 / person / month Prepare report in both English and Vietnamese

Project Manager – province level 3,050,000 / person / month

Project Officer – provincial level 2,440,000 / person / month

Project Accountant – provincial level 2,440,000 / person / month

Project Officer – district level 1,830,000 / person / month

Project Officer – commune level 1,460,000 / person / month

Communication Mobile phone costs for VNRC project staff will be reimbursed at actual cost based on the submission of official (red) invoices at all levels. However, at HQ level only costs for mobiles with post payment subscription will be reimbursed, while at other levels pre-paid cards are accepted.

Other communication costs, such as landline phone/fax or internet will be reimbursed at actual cost based on the submission of either official invoices (red invoices) or the copy of the original invoices. In case with stamp of the donor/partner and stating clearly the amount paid.


Table 11:


Mobile cost for Project Manager/Director – HQ level 300,000 / person / month

Mobile cost for Project Officer/Coordinator – HQ level 300,000 / person / month

Mobile cost for Project Assistant – HQ level 300,000 / person / month

Mobile cost for Project Accountant – HQ level 300,000 / person / month

Landline phone/fax/internet – HQ level 1,000,000 / line / month (max 1 line)

Mobile cost for PM/PO/Accountant – provincial level 100,000 / person / month

Landline phone/fax/internet – provincial level 500,000 / line / month (max 1 line)

Mobile cost for PO – commune/district level 100,000 / month

Stationery/administration The reimbursement at actual cost for stationery/administration will be based on the submission of official invoices (red invoices).


Table 12:


Stationery – HQ 800,000 / month

Office maintenance, postage – HQ 700,000 / month


Bank charges – HQ and provincial levels Actual

Stationery – provincial level 300,000 / month

Office maintenance, postage – provincial level 300,000 / month

Office maintenance, postage – District / Commune level 200,000 / month

Cost norms for financing Overhead/indirect costs

Overhead/Indirect costs: Joint or common expenses that are necessary for the operation of the program/project, but not specifically identifiable with or traceable to a specific program or output. Overhead/indirect costs are incurred as part of general management and administrative support of an organization, and include office and personnel expenses, computers, and utilities.

Supporting Overhead/Indirect costs is optional, and will be decided upon for each program/project. If it is approved to be covered from the program/project budget, the calculation of the reimbursable amount will be based on a percentage of the total of the actual and eligible program/project direct costs.

It is subject to each donor/partner whether to require VNRC to submit receipts/invoices matching with the reimbursed amount. The allocation of approved financial support for VNRC overhead costs to different cost categories is subject to VNRC’s decision.

Option 1: The maximum reimbursable rate is 1% but not over VND84,000,000 per year to cover indirect costs if all costs under Article 10 - Project management costs are included in budget.

Option 2: The maximum reimbursable rate is 3% but not over VND526,800,000 per year to cover Indirect costs and Salary allowance under Article 10 - Project management costs if Communication and Stationery/administration costs are separately included in budget.

Option 3: The maximum reimbursable flat rate is 6.5% to cover both Project management costs (all costs under Article 10) and Indirect costs.

This option is not applied for Emergency Projects. VNRC is responsible for allocating the total amount within the flat rate for both Headquarters and Chapters at all levels which are involved directly in the project under norms stipulated in Article 10.

Cost norms for financing meeting / workshop / training / study tour outside Vietnam

Costs incurred outside Viet Nam for meeting/workshop/training/study tour can be reimbursed at current IFRC rate if not covered by the organizer, and is subject to available project budget and the approval of the donor/partner in advance.


Table 13:

Description Maximum rates (CHF*)

Per diem for non full board CHF55 / person / day

Per diem for full board CHF20 / person / day


Per diem for travel days CHF30 / person / day

Accommodation Actual cost

Economy air ticket Actual cost

* This per diem can be calculated and paid in other currency using official exchange rate quoted by Vietcombank on the date of payment.


References Table 14:

Name of documents Author Date Baseline study on existing cost Norms systems for ODA loans and Grants in Vietnam

Dr. Truong Thai Phuong & Ms. Hoang Thanh Mai Nov 2006

UN-EU guidelines for financing local costs in Development Cooperation with Vietnam

The Embassy of the EU Member States and the EC Delegation to Vietnam

1st Sep 2007

Draft of revised UN-EU guidelines for financing local costs in Development Cooperation with Vietnam

The Embassy of the EU Member States and the EC Delegation to Vietnam

15th April, 2009

Circular No 79/2005/TT-BTC Guidance for management and using funds for training Government staff/officials

Ministry of Finance of Vietnam 15th Sep 2005

Circular No 23/2007/TT-BTC Regulations on per diems, reimbursement for conference costs for government organizations

Ministry of Finance of Vietnam 21st Mar 2007

Decree No. 33/2009/ND-CP Adjustment of Minimum salary to 20% increase effective from 1st May 2009

Government of Vietnam 06th Apr 2009

Decision 351/QD/TCKT-CTD Stipulating the finance management and using non refundable funds, in country fundraising and government funds to support Vietnam Red Cross projects/programs

Vietnam Red Cross 1st Mar 2007

UNICEF Guidelines of Finance Management (HATC) UNICEF Mar 2007


Annexes

Statistic of Road kilometres inside Vietnam (km)


Statistic of road kilometres from Hanoi to other places in the North of Vietnam


Table 15: Statistic of road kilometres in the South of Vietnam

Cities/ Provinces Buôn Ma Thuột

Biên Hòa Cần Thơ Ðà Lạt Huế Mỹ Tho Nha

Trang Quy

Nhơn Tây Ninh Tp. Hồ Chí Minh

Vũng Tàu

An Giang 543 220 62 498 1.287 125 638 786 289 190 315

Bạc Liêu 633 310 112 588 1.377 215 728 966 379 280 405

Bến Tre 439 116 114 394 1.183 16 534 772 185 85 211

Bình Ðịnh 368 656 854 443 411 756 238 - 785 649 751

Bình Thuận 440 168 366 247 899 286 250 488 297 190 263

Cần Thơ 521 198 - 476 1.265 103 616 864 293 167 370

Ðắk Lắk - 363 521 200 779 423 190 375 452 353 453

Ðồng Tháp 496 173 51 451 1.240 78 591 829 242 143 268

Ðồng Nai 363 - 198 278 1.067 100 418 656 129 30 95

Thừa Thiên - Huế 809 1.067 1.265 854 - 1.167 649 421 1.196 1.097 1.162

Khánh Hoà 190 418 616 205 649 518 - 238 547 441 513

Kiên Giang 601 278 128 556 1.345 183 696 934 347 248 373

Kon Tum 273 600 758 632 599 660 427 234 689 541 695

Lâm Ðồng 200 278 476 - 854 378 205 443 407 293 373

Long An 400 77 121 355 1.144 23 495 733 146 47 172

Quảng Nam 653 941 1.139 728 108 1.041 523 295 1.070 947 1.036

Bình Dương 323 40 198 318 1.107 100 468 696 129 30 135

Tiền Giang 423 100 88 378 1.167 - 518 756 169 71 195

Tây Ninh 452 129 267 407 1.196 169 547 785 - 99 224

Tp. Hồ Chí Minh 375 30 168 308 1.097 70 488 686 99 - 125

Vĩnh Long 489 166 34 444 1.233 71 547 822 235 137 261

Bà Rịa - Vũng Tàu 458 95 293 237 1.162 195 513 751 224 129 -

Cities/ Provinces Buôn Ma Thuột

Biên Hòa Cần Thơ Ðà Lạt Huế Mỹ Tho Nha

Trang Quy

Nhơn Tây Ninh Tp. Hồ Chí Minh

Vũng Tàu

Documents

Cost Norms For Financing of Local Costs For Vietnam … Vietnam Red Cross programs/projects Supported by the International Federation of the Red Cross and Red Crescent Societies and