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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:
23/2002/TT-BTC
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Hanoi,
March 20, 2002
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CIRCULAR
GUIDING THE MANAGEMENT AND USE OF INVESTMENT PROJECT
MANAGEMENT EXPENSES FROM THE STATE BUDGET SOURCE
Pursuant to the March 20, 1996 State Budget
Law, the May 20, 1998 Law Amending and Supplementing a Number of Articles of the
State Budget Law and the current guiding documents;
Pursuant to the Investment and Construction Management Regulation issued
together with the Government’s Decree No. 52/1999/ND-CP of July 8, 1999, Decree
No. 12/2000/ND-CP of May 5, 2000 Amending and Supplementing a Number of
Articles of the Investment and Construction Management Regulation issued
together with the Government’s Decree No. 52/1999/ND-CP of July 8, 1999;
The Ministry of Finance hereby guides the management and use of investment
project management expenses from the State budget source at the investor-units
as follows:
Part I
GENERAL PROVISIONS
1. Investment project management expenses are
all necessary expenses used by the investors for performing managerial tasks
throughout the project investment process.
Investment project management expenses in the
investment preparation period are those in service of the management of the
activities in the investment preparation period, which are determined on the
basis of the work volume suitable to the management requirements and the
project size, ensuring the current financial regimes, and already approved by
competent authorities.
Investment project management expenses in the
project implementation period and the investment conclusion period are those in
service of the management of the activities in the project implementation
period and the investment conclusion period, which are determined on the basis
of the norms of expenses for project management boards as guided by the
Ministry of Construction, and already approved by competent authorities.
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3. The finance agencies: The
provincial/municipal Finance and Pricing Services, for projects managed by the
provincial or municipal authorities; the Finance Sections, for projects managed
by the urban and rural district authorities; the Finance Departments (Sections,
Divisions), for projects managed by the ministries, branches, central agencies,
Corporations 90 and 91, and independent companies (hereinafter called finance
offices), shall manage investment project expenses for State budget
capital-funded projects of the investors under their respective management,
from the elaboration, evaluation and approval of cost estimates to the
execution thereof and the approval of the final settlements according to the
provisions of this Circular.
4. For projects managed by the commune authorities,
the investors (project management boards) shall not have to elaborate detailed
cost estimates and get the approval thereof but must manage and use the project
management expenses in strict accordance with the contents of Section I and
Section II, Part II of this Circular and settle them together with the
expenditures of the completed projects according to regulations.
Part II
SPECIFIC PROVISIONS
I. PROJECT MANAGEMENT
FUNDINGS
Project management fundings included in the
projects total cost estimates approved by competent authorities shall cover:
1. Expenses for project management activities in
the investment preparation period according to the cost estimates approved by
competent authorities.
2. Expenses for project management in the
project implementation and investment conclusion periods according to the norms
prescribed in the Construction Ministry’s current circular guiding the
elaboration and management of construction costs of investment projects.
3. Where the investors (project management
boards) are permitted by competent authorities to perform by themselves a
number of consulting jobs related to the projects investment and construction
such as compilation of bidding dossiers, analysis and evaluation of bids,
supervision of construction techniques, supervision of equipment installation,
they shall calculate the expenses for the above-said consulting activities
according to current regulations of the Ministry of Construction.
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5. Where the investors (project management
boards) undertake by themselves the reception and preservation (including
safeguarding and maintenance) of supplies and equipment of the projects, they
shall include labor expenses and other expenses for the above work in the cost
estimates to be approved by competent authorities.
II. CONTENTS OF PROJECT
MANAGEMENT EXPENSES
The project management expenses from the
investment preparation to the project conclusion shall include:
1. Salaries: Salaries according to salary levels
and scales from the allocated salary fund, salaries of employees working under
long-term contracts (for individuals enjoying salaries from the projects by
decisions of competent authorities);
2. Wages: Wages under contracts for seasonal or
specific jobs;
3. Various salary allowances: Post,
responsibility, region-based, attraction, cost-of-living, overtime work, hazard
and danger, mobility, branches special allowances (for individuals enjoying
salaries from the projects by decisions of competent authorities).
4. Bonuses: Regular and extraordinary (if any).
5. Collective welfare: Regular difficulty allowance,
unexpected difficulty allowance, other allowances (if any).
6. Social insurance, medical insurance premiums,
trade union fees, other contributions (for individuals enjoying salaries from
the projects by decisions of competent authorities).
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8. Office supplies: Office equipment,
specialized professional books and materials, stationery.
9. Communication: Telephone, postal, fax charges
10. Conferences: Materials, per diems for
trainers, travel costs, meeting hall rents, accommodation expenses
11. Working trip allowances: Train, coach and
air tickets, sojourn allowance, lodging expenses.
12. Assorted rents: Travel means, working
building and land rents, rents of assorted support equipment, staff re-training
expenses
13. Outbound delegations: air tickets,
accommodations expenses, stipends, customs fees
14. Expenses for regular repairs and overhauls
of assets of the management boards such as automobiles, motor vehicles,
special-use vehicles, working offices
15. Expenses for professional activities:
Special-use supplies, equipment and facilities other than fixed assets, labor
safety equipment and others
16. Procurement of assets in service of
management: Fire prevention and fighting devices, computers, computer software;
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18. Other expenses: Paid fees and charges, guest
receptions
III. ELABORATION OF PROJECT
MANAGEMENT COST ESTIMATES
On the basis of the current project management
characteristics, project management boards are divided into the two following
groups:
- Group I: consisting of specialized project
management boards, regional management boards, important-project management
boards set up under the current Investment and Construction Management
Regulation, which enjoy salaries directly from the source of project management
expenses.
- Group II: consisting of investors and other project
management boards not prescribed in Group I above.
1. For Group 1: Annually, on the basis of the
assigned capital construction investment plans, the investors (project
management boards) shall make project management cost estimates as guided in
Appendix 1 attached to this Circular, then submit them to competent authorities
for approval.
2. For Group II: When submitting to competent
authorities for approval the study feasibility reports, the units assigned to
prepare investment shall concurrently make and submit for approval the project
management cost estimates for the investment preparation period.
After obtaining the investment decisions, having
their investment projects included in the capital plans and deploying the
project implementation, the investors shall make project management cost
estimates for the investment execution period, make other cost estimates (if
any) according to the provisions at Points 3, 4, and 5, Section I, Part II of
this Circular, then submit them to competent authorities for approval. The
elaboration and submission of cost estimates for approval shall be effected
only once for the whole project implementation process; any cost estimate
adjustments must be approved by competent authorities.
The total managerial cost estimates of all
projects shall be distributed on a yearly basis so as to determine the annual
permissible deduction levels for the management boards of Group-I projects; the
total managerial cost estimate of each Group-II project must not exceed the
current percentage of project management funding as prescribed by the State.
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1. After approving the annual project management
cost estimates (for Group I) and the management cost estimates of the whole
projects (for Group II), the competent authorities shall send them to the
investors (project management boards) and the investment capital-paying
agencies for execution. Payments shall be controlled according to the approved
cost estimates and the current financial management regimes.
2. Handling of proceeds from the sale of bidding
dossiers: The bidding dossiers must be sold at the prices prescribed in the
current Bidding Regulation; the expenses for organizing bids must not be
greater than the proceeds from the sale of bidding dossiers; after settling
necessary expenses for organizing bids, the investors shall remit the remainder
of the proceeds from the sale of bidding dossiers into the State budget.
3. Handling of a number of cases related to
Group I:
a/ If at the beginning of the budget year the
project management cost estimates have not yet been approved, the investors
(project management boards) shall send written requests to the
payment-controlling agencies for advance amounts to be spent on the following
operations:
+ Payment of salaries and amounts of salary
nature;
+ Payment for the management of investment
projects.
The monthly advances must not exceed the monthly
spending levels of the preceding year. The investors (project management
boards) shall have to complete the payment procedures and reimburse the
advanced amounts as soon as they are assigned the cost estimates.
b/ Where they are provided with unplanned
additional expenses, the investors shall be allowed to spend such expenses on
human resources.
c/ The management boards of Group-I projects may
apply the minimum wage-raise co-efficient under Circular No. 32/1999/TT-LDTBXH
of December 23, 1999 of the Ministry of Labor, War Invalids and Social Affairs,
which guides the implementation of the Prime Minister’s Decision No.
198/1999/QD-TTg of September 30, 1999 on salaries payable to the management
boards of investment and construction projects, on the following principles:
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+ The total project management cost estimates of
the plan year shall be within the permissible deduction levels as prescribed at
Item 2, Point 1, Appendix I attached to this Circular.
d/ Where the project management boards lease
their assets, they must pay 100% of the collected revenues into the State
budget.
V. EXAMINATION
Annually, the Finance and Pricing Services of
the provinces and centrally-run cities, the Finance Sections of the urban and
rural districts, the Finance and Accounting Departments of the ministries, the
ministerial-level agencies, the agencies attached to the Government, the
central agencies of mass organizations, the general departments, the Finance
Sections (or equivalents) of corporations (90 and 91), and independent
companies shall examine the management and use of project management expenses
at the investor-units under their respective management so as to correct in
time any errors made by the investors or project management boards in the
project management process.
VI. SETTLEMENT
- At the end of the plan year (for Group I) or
upon the project completion, hand- over and operation (for both groups), the
investors (project management boards) must make the reports on the settlement
of project management expenses, then submit them to competent authorities for
approval. The method of making, verifying and approving the reports on the
settlement of project management expenses shall comply with the guidance in
Appendix II attached to this Circular.
VII. AUTHORITIES COMPETENT TO
APPROVE COST ESTIMATES AND SETTLEMENT REPORTS
The authorities competent to approve cost
estimates and reports on the settlement of project management expenses are
stipulated as follows:
- For projects managed by the ministries, the
ministerial-level agencies, the agencies attached to the Government, the
central agencies of mass organizations, the Finance and Accounting Departments
shall verify their cost estimates, verify and approve the reports on the
settlement of project management expenses;
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- For projects managed by the People’s
Committees of the provinces or centrally-run cities, the Finance and Pricing
Services shall verify their cost estimates, verify and approve the reports on
the settlement of project management expenses;
- For projects managed by urban or rural
districts, the district Finance Section shall verify their cost estimates,
verify and approve the reports on the settlement of project management
expenses.
VIII. ALLOCATION OF PROJECT
MANAGEMENT EXPENSES
For Group I: Annually, on the basis of the
notices of approval of the annual settlement of project management expenses,
the investors (project management boards) shall allocate management expenses to
component projects on the following principles:
+ For expenses for consultancy, compensation,
reception and preservation of equipment of a particular project, they shall be
directly allocated to such project;
+ The general management expenses shall be
allocated in proportion to the component projects work volumes already
completed in the year;
+ The value of the projects allocated annual
management expenses shall be incorporated in the value of the settled
investment capital of each component project when the investment capital of the
completed project is settled.
IX. RESPONSIBILITIES
1. Responsibilities of the investors (project
management boards):
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- To abide by all the contents of the cost
estimate allocation decisions and the notices of approval of annual settlement,
issued by the approving agencies;
- To compare the paid capital amounts with the
figures at the payment-controlling agencies;
- To supply sufficient documents related to the
annual cost estimation and settlement at the approving agencies requests;
- To evaluate by themselves the cost estimate
execution every three months, six months and nine months in order to draw
experiences for more effective management.
2. Responsibilities of the verifying and
approving agencies:
- To manage the investment project management
expenses and other expenses of the projects (if any, as prescribed at Points 3,
4 and 5, Section I, Part II of this Circular) of the investors (project
management boards) under their respective management from guiding the
estimation to verifying and approving the settlement of expenses;
- To guide the investors (project management
boards) to execute the investment project management expenses and make annual
settlement thereof.
- To approve the cost estimates and settlement
reports as requested;
- In the course of verifying, examining and
approving the settlement reports, the verifying and approving agencies shall be
entitled to reject wrong expenses, recover, or determine the liability to
compensate, those amounts spent at variance with regulations, expenses not
included in the approved cost estimates; and at the same time requesting the
investors (project management boards) to remit into the State budget all
amounts as prescribed;
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3. Responsibilities of the payment-controlling agencies:
- To control the allocation and payment of
investment project management expenses strictly according to the State’s
current regulations;
- To check, compare and certify the capital
amounts already paid with the data of the investors (project management boards)
in the latter’s settlement reports;
- To comment, evaluate and propose to the
verifying and approving agencies regarding the spending contents already
executed by the investors, whether they comply with the State’s current
financial regimes.
4. Responsibilities of the superior authorities
of the investors:
- To guide the investors (project management
boards) under their respective management to manage and use the project
management expenses according to the provisions of this Circular.
- To coordinate with the verifying agencies in
verifying the annual settlement reports of the investors (project management
boards);
- To create legal conditions for the investors
(project management boards) to recover the capital amounts paid in excess of
the approved settled value.
5. Responsibilities of the ministries, branches
and localities:
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- To take appropriate disciplinary measures
against the investors (project management boards) that have committed serious
violations in the management of investment projects.
Part III
IMPLEMENTATION
PROVISIONS
This Circular takes effect for uniform
implementation nationwide 15 days after its signing. The projects which have
been completed or are being carried out before the time this Circular takes
effect shall not be required to have their project management cost estimates
re-approved but must settle the project management expenses on a yearly basis
or upon the project completion according to the provisions of this Circular.
FOR THE MINISTER OF FINANCE
VICE MINISTER
Vu Van Ninh
APPENDIX NO. I
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I. COST ESTIMATION:
1. Bases for making investment project
management cost estimates include:
+ The decision to assign tasks to the investor;
+ The decision to set up the project management
board;
+ The decision to assign the annual capital
construction investment plan;
+ Competent authorities documents permitting the
investor (project management board) to perform a number of consulting jobs:
Compilation of bidding dossiers, analysis and evaluation of bids, supervision
of construction techniques, supervision of equipment installation;
+ Document permitting the investor (project
management board) to undertake by itself the compensation and ground clearance
work, receive and preserve (including safeguarding and maintaining) supplies
and equipment of the project and these jobs�
cost estimates already approved by competent authorities.
2. Determination of permissible deduction
levels:
On the basis of the already approved total cost
estimate of each project assigned for management and the competent authority’s
task-assigning document, the investor (project management board) shall
determine the deduction level for each task of each project in order to sum up
the source of deducted expenses according to form No. 01/DTBQL, these are the
maximum deduction levels for the investors (project management boards) to
perform their project management tasks:
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+ Project management expenses in the project
implementation period (according to regulations),
+ Supervision of construction techniques and
equipment installation (according to regulations);
+ Compilation of bidding dossiers (according to
regulations);
+ Analysis and evaluation of bids (according to
regulations);
+ Compensation and ground clearance (according
to the approved cost estimate),
+ Reception and preservation of supplies and
equipment (according to the approved cost estimate),
+ Others (according to the approved cost
estimate).
3. Determination of the necessary spending
contents for making cost estimates:
On the basis of the project management type and
characteristics and the comparison of the two groups according to the
provisions in Section III, Part II of this Circular, the spending contents
permitted for making project management cost estimates shall be determined as
follows:
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The determination of the salary funds for
project management personnel must ensure the right payrolls already approved by
competent authorities (form No. 03/DTBQL)* and the plans on payroll raises or
cuts according to the plan years (form No. 04/DTBQL).*
3.2. For Group II, the project management
expenses are those numbered 2, 7, 8, 9, 10, 11, 12, 13, 15 and 18 in Section II
of Part II above (form No. 02/B-DTBQL).*
4. Dossiers and forms:
- The written request for approval of the
project management cost estimate;
- Form No. 01/DTBQL*: The sum-up of the source
of deducted expenses;
- Form No. 02A/DTBQL*: Project management cost
estimates made on a yearly basis (for management boards of Group-I projects);
- Form No. 02B/DTBQL*: Project management cost
estimate of the whole project (for management boards of Group-II projects);
- Form No. 03/DTBQL*: Lists of public employees
and salaries payable by year-end;
- Form No. 04/DTBQL*: Plans on increasing or
reducing the numbers of public employees according to each salary level and
scale as well as corresponding annual salary funds;
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* Requirements on dossiers:
- The dossiers of management cost estimates of
the investors (project management boards) must be compiled fully as required at
Point 1 above. The data in the forms must be clear without erasure, with
accompanied explanations to ensure easy understanding.
- The dossiers of project management cost
estimates must be signed by the chief accountants and the investors (heads of
the project management boards).
- The investors (project management boards)
shall be answerable before law for the data and matters mentioned in the cost
estimate dossiers.
II. APPROVAL OF COST ESTIMATES:
On the basis of the cost estimate dossiers sent
to them, the finance agencies shall verify the following contents:
+ The legality of the cost estimate dossiers
(explanations, reports made according to set forms�), ensuring their compliance with the State
regulations on the time, form and legality.
+ The compatibility of the contents inscribed in
the cost estimates with the criteria, norms and current financial regimes
prescribed by the State.
The functional sections of the finance agencies
must report the results of the verification based on the above contents to
competent persons for decision to assign cost estimates. The cost estimate
assignment decisions shall be made according to form No. 05/QD-GDT* in five
copies (two kept by the decision-issuing agency, one by the payment agency and
two by the investor).
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Within 20 working days after receiving the
notices of the investment plans, the investors (project management boards)
shall make investment project management cost estimates and send them to the
finance agencies for approval.
With 20 working days after receiving the
complete cost estimate dossiers sent by the investors (project management
boards), the finance agencies shall have to verify and approve the investment
project management cost estimates for the latter to deploy their execution.-
APPENDIX II
GUIDANCE FOR MAKING, VERIFYING AND APPROVING THE
REPORTS ON THE SETTLEMENT OF INVESTMENT PROJECT MANAGEMENT EXPENSES
(Issued together with Circular No. 23/2002/TT-BTC of March 20, 2002 of the
Ministry of Finance)
I. MAKING OF THE REPORTS ON THE SETTLEMENT OF
INVESTMENT PROJECT MANAGEMENT EXPENSES:
1. Making of the settlement reports:
- Upon the end of the annual plans (for Group I)
or the completion and putting of the projects into use (for both Groups I and
II), the investors (project management boards) shall have to make the reports
on the settlement of project management expenses and other expenses (if any, as
prescribed at Point 3, 4 and 5, Section I, Part II of this Circular), then
submit them to competent authorities for approval. Such settlement reports
shall include the contents as specified at Point 2, Part II of this Circular,
analyze and evaluate the execution of the assigned cost estimates, and present
the results achieved in the year, difficulties and constraints as well as
solutions thereto.
2. Dossiers and forms of settlement reports:
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- The written request for approval of the report
on the settlement of investment project management expenses;
- Form No. 01/QT-QLDA*: The sum-up of the annual
settled investment project management expenses, with comparison and
certification of the allocated capital amounts by the payment-controlling
agencies;
- Form No. 02/QT-QLDA*: Settlement of investment
project management expenses;
- Form No. 03/QT-QLDA*: Explanations of the
annual settlement of investment project management expenses;
- Vouchers related to spendings in the year;
- Copies of such documents as the annual cost
estimate assignment decision, the annual cost estimate adjustment decision (if
any), the notice of approval of the preceding year�s settlement report.
b/ Dossiers and forms of the reports on the
settlement of project management expenses of the completed projects:
* For Group I:
- The sum-up of the settled project management
expenses already allocated to the project throughout the years;
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* For Group II:
- Form No. 01A/QT-BQL: The report on the
settlement of investment project management expenses;
- Vouchers related to spendings arising in the
project implementation process; the cost estimate assignment decision and the
cost estimate adjustment decision (if any).
3. Requirements on dossiers:
- The dossiers of the settlement of project
management expenses of the investors (project management boards) must be
compiled fully as required at Point I above. The data in the forms must be
clear without erasure, proposals must be specific and explicit;
- Dossiers of the settlement of project
management expenses must be signed by the chief accountants, the investors or
the heads of the project management boards;
- The investors (project management boards)
shall be accountable before law for the data and matters mentioned in the
settlement dossiers.
II. VERIFICATION AND APPROVAL OF THE REPORTS
ON THE SETTLEMENT OF INVESTMENT PROJECT MANAGEMENT EXPENSES:
1. Verification contents:
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On the basis of the settlement dossiers of the
investors (project management boards) already sent to the finance agencies, the
functional sections of the finance agencies shall base themselves on the
current spending regimes of the State and the approved cost estimates to verify
the following contents:
+ Checking the settlement dossiers (explanations
of the reports, forms), ensuring their compliance with the State’s regulations
on the form, contents and legality;
+ Comparing the data of the approved cost
estimates and the values of the completed volumes to detect disparities and
find out reasons therefor.
+ Examining the compatibility of spending
vouchers with the arising economic operations, their legality and validity and
compliance with the current spending regimes of the State;
+ Checking year-end advance amounts;
+ Checking the cash funds;
+ Checking the cost-accounting of arising
economic operations, making of accounting books, taking stock of supplies,
assets and cash funds.
After verifying the above contents, the
verifying agencies and the investors (project management boards) shall make
verification reports for use as a basis for competent authorities to approve
the settlement dossiers. Such a verification report must include the following
contents:
+ Unanimous opinions on the verification
results;
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+ Reservations of the investors;
+ Proposed measures to deal with amounts spent
at variance with regulations or not included in the approved cost estimates.
On the basis of the settlement verification
reports made jointly by the finance agencies�
functional sections and the investors, the competent authorities shall consider
and issue the approval notices which shall be made according to form No.
05/QT-QLDA* in five copies (of which two to be kept by the decision-issuing
agency, one copy by the payment agency, and two copies by the investors).
2. Dossiers of verification and approval of
settlement reports:
- The full dossiers and forms of the settlement
reports as prescribed at Point 2 of Section I;
- Form No. 04/QT-QLDA*: The verification report;
- The explanations of the investor (project
management board) (if any);
- Form No. 05/QT-QLDA*: The notice of approval
of the settlement of investment project management expenses, enclosed with
appendices No. 05A/QT*, 05B/QT*.
3. Time for making and approval of settlement
reports:
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Within 30 working days after receiving the
settlement reports of the investors (project management boards), the finance
agencies shall have to verify, approve and issue the notices of the results of
the settlement verification to the latter. If within 10 days after receiving
such notices the investors (project management boards) express no divergent
opinions in writing, they shall be deemed as having accepted them for
execution.-
* The forms are not printed herein
THE MINISTRY OF FINANCE
Vu Van Ninh