|
THE
MINISTRY OF FINANCE
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------
|
|
No:
70/2000/TT-BTC
|
Hanoi,
July 17, 2000
|
CIRCULAR
GUIDING THE INVESTMENT CAPITAL SETTLEMENT
Pursuant to the State Budget Law of March 20,
1996;
Pursuant to the May 20, 1998 Law Amending and Supplementing a Number of
Articles of the State Budget Law;
Pursuant to the Government’s
Decree No.52/1999/ND-CP of July 8, 1999 promulgating the Investment and
Construction Management Regulation;
Pursuant to the Government’s
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 Finance Ministry hereby guides the investment capital settlement as
follows:
Part I
GENERAL PROVISIONS
1. All investment projects of the State agencies
and State enterprises, after being completed and put into exploitation and use,
shall be subject to the investment capital settlement. Investors shall have to
elaborate and settle all the investment capital of the completed projects with
the competent bodies.
2. Investment projects funded with the State
budget capital, the State-guaranteed credit capital, the State’s development investment credit
capital or the capital mobilized by State enterprises for development
investment must have their investment capital settlements examined and approved
by the competent bodies.
3. The "to-be settled investment
capital" is the total lawful expenses made in the course of investment in
order to put the project into exploitation and use. The lawful expenses are the
expenses made in strict compliance with the signed contract(s) and the ratified
cost estimate designs, ensuring the conformity with the set criteria, norms,
unit prices, financial and accounting regime as well as the relevant current
regulations of the State. The to-be settled investment capital shall not exceed
the total investment already approved or adjusted (if any) by the competent
authorities.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
5. For group-A projects that include component
projects or mini-projects, if each component project or mini-project can independently
operate for exploitation and be implemented according to investment phases
inscribed in the written approval of the pre-feasibility study reports, each
component project or mini-project may settle its investment capital like an
independent investment project.
6. For a project comprising many project items
and each item (or project item group), when completed, operates independently
for exploitation and use, the authority competent to approve the settlement
may, if deeming it necessary, allow the settlement of project items (or project
item group) that includes expenses for construction and installation, equipment
and other expenses directly related to the above-mentioned project items (or
project item group). After the completion of the whole project, the investor
shall have to make the general settlement thereof and distribute other expenses
to each project item according to regulations.
7. The investment capital settlement must be
complete and in accordance with the prescribed contents, ensuring time for
elaboration, examination and approval stipulated in this Circular.
8. Though the investment capital settlement, the
investment process results shall be assessed and experiences shall be drawn
with a view to enhancing the investment and construction management work.
Part II
SPECIFIC PROVISIONS
I. CONTENTS OF THE INVESTMENT
CAPITAL SETTLEMENT REPORTS
1. Reports on the annual investment capital
disbursement:
1.1. For investors:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
* The situation on investment execution in the
plan year:
- The value of the volume executed in the year
and the value accrued from the start of project construction;
- The amounts of capital settled and borrowed in
the year and capital accrued from the start of project construction;
- The value of the completed volume eligible for
capital settlement but not yet settled.
* The investment capital sources.
* The project or project item(s) that has been
completed and put into production and use in the year.
b/ In the annual investment capital disbursement
reports, investors shall have to analyze and assess the implementation of the
investment plan and results in the year, the existing problems, and propose the
handling measures.
1.2. For the investors’
superior authorities:
a/ Basing themselves on the investors’ annual investment capital
disbursement reports, the provincial/municipal People’s
Committees, ministries or branches shall direct their functional agencies to
make sum-up reports on the annual investment capital disbursement by their respective
units and send them to the Finance Ministry and the General Department of
Statistics, according to the following contents:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The value of the volume already executed in
the year and the value accrued from the start of project construction.
- The amounts of capital settled and borrowed in
the year and capital accrued from the start of project construction.
- The value of the completed volume eligible for
capital settlement but not yet settled.
* The investment capital sources.
* The project or project item(s) that has been
completed and put into production and use in the year.
b/ The annual sum-up reports on investment
capital disbursement of the ministries, branches and localities must analyze
and assess the situation of investment plan implementation and investment
results in the year, the existing problems, and propose the handling measures.
1.3. Basing themselves on the annual investment
capital disbursement reports of the ministries, branches and localities, the
Finance Ministry and the General Department of Statistics shall make a sum-up
report and submit it to the Government.
2. Investment capital settlement reports:
2.1. For completed projects (mini-projects,
component projects or project items defined at Points 5 and 6, Part I of this
Circular), the investors shall have to elaborate and send the investment
capital settlement reports to the capital-settling agencies, the
capital-lending agencies and the investment capital settlement-examining and
-approving agencies. The report on investment capital settlement of a completed
project must clearly indicate the following contents:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The total investment capital for project
implementation from the stage of investment preparation to the construction
completion and putting of the project into production and use.
- Capital sources: State budget capital,
State-guaranteed credit capital, State’s
development investment credit capital, capital mobilized by State enterprises
for development investment and other capital sources.
- The capital structure: Capital for
construction and installation, equipment and other expenses.
b/ Expenses not accounted into the project assets’ value :
- Damage caused by natural calamities, enemy
sabotage and other force majeure circumstances, which are not insured.
- The value of the volume cancelled by decision
of the competent authority.
c/ The value of assets handed over for
production and use:
- The value of fixed assets and current assets
created by investment is the total investment expenses for a project minus the
expenses which are not accounted into the project assets’
value, and are converted at the market price at the time of handing over the
project for production and use. The method of converting investment capital at
the market price at the time of project hand-over shall comply with the
Construction Ministry’s
guidance.
- The fixed assets shall be classified and
valued according to the following principle: All expenses related directly to a
fixed asset shall be calculated for such asset; the common expenses related to
various assets shall be distributed according to the ratio between the direct
expense level of each fixed asset and the total direct expenses for all fixed
assets.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2.2. For completed planning projects: Investors
shall make the planning capital settlement reports, which must reflect the
sources of capital already received and used according to the cost estimates
ratified by the competent authorities and be enclosed with the expositions on
the project implementation results.
2.3. For investment preparation expenses in case
a project is cancelled or the investment execution is transferred to another
unit under decision of the competent authority, the investor shall have to make
investment preparation capital settlement report like for a completed planning
project.
2.4. For investment projects using foreign
capital, when they are completed, in addition to the settlement reports to be
elaborated, examined and approved according to the provisions of this Circular,
the investors shall also have to draw up a separate investment capital
settlement report at the request of international organizations inscribed in
the loan agreement(s) (if any).
II. INVESTMENT CAPITAL
SETTLEMENT DOSSIERS
1. An investment capital settlement dossier for
a completed project includes:
1.1. The settlement reports made according to
set forms:
- The list of relevant legal documents:
reflecting the legal basis for the whole project, from the investment
ratification, investment preparation, project implementation preparation,
project implementation till the project completion.
- The sum-up report on the completed investment
capital settlement: reflecting the general project investment situation and
results as well as the existing problems and solutions proposed by the
investor.
- The report on investment execution through the
years: reflecting the situation on the use of investment capital from the time
of investment preparation till the project completion and putting of the
project into exploitation and use.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The report on the amount and value of the
newly-accrued fixed assets: reflecting the amount and value of each of the
newly-accrued fixed assets according to the conversion prices and classified
according to the use subjects.
- The report on the amount and value of the
handed-over current assets: reflecting the amount and value of assets according
to the conversion prices of each type of raw material, material, fuel,
accessory and labor tool, which are not qualified for being fixed assets, and
other expenses belonging to the current assets handed over to the using units.
- The debt situation: reflecting loans and debts
(recoverable and payable) which have not been settled by the time of investment
capital settlement, and proposing handling measures.
- The sheet of comparison and certification of
investment capital settlement figures by the capital- settling and -lending
agency. Where a project’s
capital is settled and lent by different agencies, the comparison and
certification by each agency is required.
- The exposition on the investment capital
settlement reports: reflecting the project’s
major changes; difficulties and advantages in the project implementation
process, and proposing handling measures.
1.2. The written request for approval of the
completed project’s
investment capital settlement: For group A-projects, it must be signed by the
investor’s superior
authority and sent to the Finance Ministry; for the other projects, it must be
signed by the investor and sent to the competent authority for approval (the
original).
1.3. The relevant legal documents (originals or
copies).
1.4. The minutes (originals or copies) on the
pre-acceptance test of each stage or the general pre-acceptance test for
hand-over and putting of the completed project into use, or the minutes on
project pre-acceptance test and hand-over between the investor and contractor
(original or copy).
1.5. The minutes (originals, if any) on asset
hand-over between the investor and using units.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1.7. The economic contracts (originals or
copies) between the investor and contractors; units and individuals involved in
the project implementation.
1.8. The bidding dossier; bids of the bid
winners; approval of the bidding dossier; approval of the bid-winning results;
and documents (originals or copies) supplemented in the course of bidding and
execution of bidding packages.
1.9. The project completion dossier, the
construction diary (originals or copies).
1.10. The report (original, if any) on the
investment capital settlement auditing results of an independent auditing
organization.
Besides, in the course of examining the
investment capital settlement, when deeming it necessary, the
settlement-examining agency may request the investor to supply additional
documents related to the project’s
investment capital settlement.
2. Dossier of settlement of planning projects’ investment capital and
investment preparation expenses:
2.1. The settlement reports made according to
the set forms:
- The sum-up report on the settlement of the
completed investment capital.
- The report on investment execution through the
years.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The sheet of comparison and certification of
investment capital settlement figures by the capital-settling and -lending
agency. Where a project’s
capital is settled and lent by different agencies, the comparison and
certification by each agency is required.
2.2. The investor’s
written proposal (original) for approval of the investment capital settlement
sent to the competent authority.
2.3. The economic contract, the minutes on the
pre-acceptance check and hand-over of dossiers and documents, the decision on
ratification of the planning project and the decision on cancellation of the
investment project (for the settlement of investment preparation expenses)
(originals or copies), issued by the competent authorities.
Besides, in the course of examining the
investment capital settlement, when deeming it necessary, the
settlement-examining agency may request the investor to supply additional
documents related to the project’s
investment capital settlement.
3. Requirements on the settlement dossier:
- An investment capital settlement dossier must
be complete and strictly comply with the forms set for each type of project
defined at Points 1 and 2, Section II, Part II of this Circular. All figures in
the reports must be clear while the proposals must be concrete, brief and easy
to understand.
- A dossier of investment capital settlement
report must contain all signatures of the chief accountant; the head of the
project management board (for projects with management boards); the project’s executive manager (for
projects run by executive managers) and the investor.
4. Places where settlement dossiers are received
and kept:
4.1. For group A projects:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Besides, the investor shall have to send the
settlement report made in the set form to the investment capital-settling and
-lending agencies.
4.2. For group B and C projects:
The settlement dossier of a group B or C project
shall be made in 3 sets of equal value and kept by the investor, the examining
and approving agency and the archive agency (if any).
Besides, the investor shall have to send the
settlement reports made in the set form to the investment capital- settling and
-lending agencies.
III. EXAMINATION OF THE
INVESTMENT CAPITAL SETTLEMENT
1. Contents of examination of the investment
capital settlement:
a/ For projects implemented by the mode of
bidder appointment:
a.1. Examining the legality of the project:
- Examining, comparing lists and contents of
legal documents of the project, ensuring their conformity with the State’s current regulations.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
a.2. Examining the investment capital amount
disbursed annually:
- Examining every source of capital annually
invested in the implementation of the project, against the capital source
structure already defined in the investment decision and according to the
annual investment plan.
- Analyzing, comparing the structure of the
disbursed investment capital (for construction and installation, equipment and
other expenses) with the investment capital structure inscribed in the
investment decision and the ratified total cost estimates.
a.3. Examining the value of the completed
construction and installation volume:
- Examining the value of the project’s construction and installation
volume proposed for the settlement against the value of the ratified cost
estimates, and determining the cause of rise or fall.
- Examining the application of the State’s norms and unit prices to the
construction and installation work in each period.
a.4. Examining the value of the completed
equipment volume:
- Examining the equipment’s
compatibility with the list, type, quantity, technical criteria and prices
stated in the investment decision and economic contracts.
- Examining the purchasing, processing and
manufacturing prices of equipment.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
a.5. Examining other expenses by comparing the
capital amount proposed for the settlement of each type of actual expense with
the ratified cost estimates and the current policies and regimes on the
management of other expenses in investment and construction.
a.6. Examining the value of damage not accounted
into the assets’ value:
- The value of damage caused by natural
calamities, enemy sabotage and other force majeure circumstances, which
are not insured.
- The value of the project volume cancelled by
decision of the investment-deciding authority.
a.7. Examining the evaluation of assets handed
over for exploitation and use by different units:
Examining the determination of the actual value
of the annual investment and the value already converted according to the price
level at the time of handing over the assets, including the newly-accrued fixed
assets and current assets, for exploitation and use.
a.8. Examining the situation of debts, materials
and equipment in stock:
- The debts to be recovered and repaid.
- The value of materials and equipment in stock.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
b/ For projects and work volume executed by the bidding
mode:
- Examining the settlement reports according to
the contents stipulated at Items a.1, a.2, a.5, a.6, a.7 and a.8, Point a,
Clause 1, Section III, Part II of this Circular.
- Examining the construction and installation as
well as equipment volume and value proposed for the settlement, compared with
the bid-winning prices and the bids’
cost estimates.
- Examining the construction and installation as
well as equipment volume and value arising outside bidding packages and
determining the cause of rise or fall.
c/ For planning projects and investment
preparation expenses:
- Examining the project’s
legal dossiers;
- Examining the investment capital amount
disbursed annually;
- Examining other expenses by comparing the
capital amount proposed for the settlement of each type of expense with the
ratified cost estimates and the current policies and regimes on the management
of other expenses in investment and construction;
- Examining the debt situation of the project.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Investment capital settlement -examining
agencies:
Before approving the investment capital
settlement, the agency (unit) assuming the prime responsibility for examination
shall examine the investment capital settlement reports; the division of
responsibility for examination of the investment capital settlement shall be
defined as follows:
2.1. For group A projects:
The Finance Ministry shall assume the prime
responsibility for organizing the examination of investment capital settlements
of the State’s group A
projects. In case of necessity, the Finance Ministry may set up a consultancy
team to conduct the examination before approving the settlements. The
consultancy team is set up by decision of the Finance Minister and composed of
representatives of the Finance Ministry, the Ministry of Planning and
Investment, the Ministry of Construction, the branch-managing ministries, the relevant
ministries and the People’s
Committees of the provinces and centrally-run cities (for the locally-run
projects).
2.2. For the other projects:
- For the centrally-run projects, the units
charged with function and task to examine the investment capital settlements
under the authorities competent to approve them, shall assume the prime
responsibility in organizing the examination.
- For the locally-run projects (of the provinces
and centrally-run cities), the provincial/municipal Finance-Pricing Services
shall assume the prime responsibility for organizing the examination.
In case of necessity, the authorities competent
to approve the investment capital settlements shall decide to set up the
consultancy teams to examine the settlements before approving them. Such a
consultancy team shall consist of representatives of the units functioning to
manage the project-related investment and construction.
3. Forms of organizing the examination of
investment capital settlement reports:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Where the agency competent to approve a
settlement decides to hire an independent auditing organization to audit the
investment capital settlement report, the investor shall sign an auditing
contract with the independent auditing organization that lawfully operates in
Vietnam for auditing the investment capital settlement reports according to the
contents and charge level permitted by the agency competent to approve the
settlement. The independent auditing organization shall take responsibility
before law for the contents and results of auditing the settlement reports.
The agency (unit) assuming the prime
responsibility for examining the settlement shall inspect the results of
auditing the investment capital settlement reports of the independent auditing
organization according to the following contents:
- Inspecting the settlement-auditing results’ compatibility with the auditing
contract and the prescribed contents of the investment capital settlement
examination;
- Examining legal bases for investment and
construction management promulgated by the competent State management agencies,
which have been used by the auditing organization such as the mechanism of
management and payment of investment capital, the construction standards,
regulations and rules as well as the system of norms and unit prices;
- Re-examining the discrepancies between the
settlement-auditing report of the independent auditing organization and the
investor’s settlement
report;
- Considering the proposals which remain divergent
between the investor and the independent auditing organization.
IV. COMPETENCE TO APPROVE THE
INVESTMENT CAPITAL SETTLEMENT
1. Competence to approve the investment capital
settlement:
a/ The investment capital settlements of the
State’s group-A projects
shall be approved by the Finance Minister under the Prime Minister’s authorization;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Agencies receiving written approvals of the
investment capital settlements:
2.1. For group A projects:
- The Prime Minister;
- The Finance Ministry;
- The investor’s
superior authority;
- The branch-managing ministry;
- The investment capital -settling and -lending
agency(ies);
- The concerned agencies (if any).
2.2. For the other projects:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The investment-deciding agency;
- The Finance Ministry;
- The investment capital-lending and -settling
agency(ies).
* For the locally-run projects:
- The People’s
Committee of the province or centrally-run city;
- The provincial/municipal Finance-Pricing
Service;
- The investment capital- lending and -settling
agency(ies).
V. EXPENSES FOR EXAMINATION
AND APPROVAL OF THE INVESTMENT CAPITAL SETTLEMENT
The expenses for examination and approval of the
investment capital settlement shall be accounted into other expenses in the
project’s ratified cost
estimates and managed by the agency assuming the prime responsibility for
examining the settlement.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1.1. On the basis of the total investment and
characteristics of each project, the expense for examination and approval of
the investment capital settlement shall be calculated in percentage (%) of the
total investment as follows:
DEDUCTION RATES
OF EXPENSE FOR EXAMINATION AND APPROVAL OF INVESTMENT CAPITAL SETTLEMENTS
The total investment (billion VND)
0.1
0.5
> 0.5
5.0
> 5
10
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
100
> 100
500
> 500
1,000
> 1,000
5,000
> 5,000
Deduction rate (%)
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
0.10
0.09
0.08
0.05
0.04
0.02
0.01
Absolute deduction level (million VND)
0.5
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
≥ 5
≥ 10
≥ 80
≥ 250
≥ 400
≥ 1,000
1.2. For a group A project composed of different
component (or mini) projects, the expense deduction level for examination and
approval of the settlement of a completed component (or mini) project shall be
calculated according to the following formula:
The deduction level for a component (mini)
project
=
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
X ﴾
The total
investment of the component (mini) project
﴿
x 80%
The total investment of the project
1.3. For a project with equipment capital proportion
accounting for 51% or more of the total investment, the expense deduction level
for the settlement examination and approval shall be equal to 70% of the
corresponding expense level or rate stipulated at Point 1.1, Clause 1, Section
V, Part II of this Circular.
1.4. The investment capital settlement
examination and approval expenditures shall be distributed to different jobs as
follows:
- At most 10% for the approval of the investment
capital settlement;
- At least 90% for the examination of the investment
capital settlement; In case of hiring an independent auditing organization to
audit the settlement reports, the expense paid to such independent auditing
organization shall not exceed 75% of the total expense amount for the said
examination and approval.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2.1. On the basis of the approved expenditure
level for examination and approval of the project�s investment capital
settlement in the total cost estimates, the investor shall make payment for the
settlement examination and approval work in strict compliance with the
prescribed regimes and the contents stipulated at Item 2.2, Clause 2, Section
V, Part II of this Circular.
Where an independent auditing organization is
hired to audit the settlement reports, the investor shall pay the auditing
expense to the independent auditing organization according to the signed
contract, which, however, must not exceed the level prescribed at Item 1.4,
Clause 1, Section V, Part II of this Circular.
2.2. Contents of expense for examination and
approval of the investment capital settlement of a completed project:
- Payment of remuneration to members of the
consultancy team for the investment capital settlement examination.
- Payment to the independent auditing
organization (if any) for the audit of settlement reports according to
regulations.
- Payment to domestic and foreign
organization(s) and individual(s) (if any) for the examination of settlement at
the request of the agency (unit) that assumes the prime responsibility for
examining and approving the investment capital settlement.
- Payment for working trip allowances,
stationery, translation, printing, conferences and seminars and other expenses
in service of the settlement examination and approval.
VI. TIME FOR ELABORATION,
EXAMINATION AND APPROVAL OF INVESTMENT CAPITAL SETTLEMENT
1. For group A projects:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The time for examination of the investment
capital settlement shall not exceed 6 months after the receipt of the complete
and valid dossier of the investment capital settlement report as prescribed in
Section II, Part II of this Circular.
- The time for approval of the investment
capital settlement shall not exceed 1 month after the receipt of the report on
the investment capital settlement examination results, which is submitted for
approval by the agency (unit) assuming the prime responsibility for
examination.
2. For the other projects:
- The time for elaboration of the investment
capital settlement report shall not exceed 3 months after the investment
project is completed and put into exploitation and use.
- The time for examination of the investment
capital settlement report shall not exceed 2 months for group B projects and 1
month for group C projects after the receipt of the complete and valid dossier
of investment capital settlement report prescribed in Section II, Part II of
this Circular.
- The time for approval of the investment
capital settlement shall not exceed 15 days after the receipt of the report on
the investment capital settlement examination results, which is submitted for approval
by the agency (unit) assuming the prime responsibility for examination.
VII. RESPONSIBILITY OF THE
INVESTOR AND CONCERNED AGENCIES
1. The investor:
1.1. For reporting on the annual investment
capital disbursement:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- To get certification from the capital-lending
and -settling agency(ies).
- To send the annual investment capital
disbursement report to the capital-settling and -lending agency(ies) as well as
the investment-deciding agency at the time stipulated in this Circular.
1.2. For the investment capital settlement work:
- To coordinate with the contracting and
consulting units in handling problems related to the received materials and
equipment; the debt repayment and other problems arising outside the already
signed contracts.
- To examine the settlement of the value of the
completed volume according to contracts (on construction and installation,
material and equipment supply and/or consultancy) between the investor and
contracting units involved in the project implementation.
- To inventory and evaluate the remaining assets
of the project management board in order to hand them over to units for
production, use or liquidate them in order to recover capital, provided that
such management board manages only one project. Where the project management
board manages many projects, the inventory and evaluation shall be made only
with the remaining value of assets related to the completed projects in order
to hand them over to units for production and use.
- To close the accounting books, arrange and
classify dossiers and documents in service of the investment capital settlement
work.
- To compare and certify the amount of already
settled capital or borrowed capital; to compare debts and assets already handed
over to the concerned agencies.
- To compile and manage the investment capital
settlement dossier with full contents prescribed in this Circular; and at the
same time, to take responsibility for the accuracy of the figures and legality
of documents attached to the investment capital settlement reports.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- To sign the contract for auditing the
settlement reports with the lawful independent auditing organization after
getting a written approval from the authority competent to approve the
investment capital settlement.
- To fully recover the capital amount already
paid to contractors in excess of the amount stated in the approved settlement.
2. The contracting units (for consultancy,
construction and installation and equipment supply):
- To coordinate with the investor in definitely
handling the remaining problems according to the signed contracts; to provide
and take responsibility for accuracy of figures and legality of documents
related to the elaboration of the investment capital settlement by the
investor.
- To fully and promptly repay the investor the
capital amount which has been paid by the latter in excess of the amount stated
in the approved settlement.
3. The investment capital-lending and -settling
agencies:
3.1. For reporting on the annual investment
capital disbursement:
To inspect, compare and certify the capital
amount already lent or settled in the year as well as the amount accrued from
the time of project construction commencement to the reporting time.
3.2. For the investment capital settlement work:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- To comment on and appraise the project’s investment process and make
suggestions thereon to the agency (unit) that examines and approves the
investment capital settlement according to the following contents: the
observance of the capital construction order, the unit price norms as well as
the State�s prescribed regimes and policies.
- To coordinate with the investor in recovering
the capital amount already paid to contractors in excess of the amount stated
in the approved settlement.
4. The independent auditing organization:
- To audit the investment capital settlement
reports for the completed projects only when so permitted in writing by the
authority competent to approve the settlement.
- To ensure the full contents prescribed for the
audit of investment capital settlement reports for the completed projects, and
enjoy remuneration therefor in strict compliance with the provisions of this
Circular.
- To take responsibility for the contents and
results of auditing the settlement reports. Where the agency competent to
examine and approve the settlement or a law body detects that the settlement
report-auditing results of the independent auditing organization vary with the
examination results of the settlement-examining agency by 0.5% or more for a
group A project, 0.8% or more for a group B project and 1.0% or more for a
group C project, the concerned independent auditing organization shall take
material responsibility for the damage caused by wrong auditing results.
Serious cases shall be handled according to law provisions.
5. The investment capital settlement-examining
and -approving agency:
- To guide, inspect and urge the investor to
make the investment capital settlement completely, in strict accordance with
the prescribed contents and according to the time defined in this Circular.
- To guide and direct the investor to handle
problems arising in the investment capital settlement process.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- To request the investor to supply documents related
to the project’s investment
capital settlement.
- To be answerable for the results of the
examination of investment capital settlement reports or contents of the
re-examination results (for projects hiring independent auditing organizations
to audit the investment capital settlement reports).
- To approve the investment capital settlement
of the completed project according to its competence.
- To guide, urge and create legal conditions for
the investor to recover the amount of capital already paid to contractors in
excess of amount stated in the approved settlement.
6. Responsibility of the ministries, branches,
localities and superior authorities of the investors for group A projects that
fall under their management competence:
- For group A projects, when they are completed
and put into use, the ministries, branches, localities or superior authorities
of the investors shall have to urge and guide the investors to elaborate the
settlement reports; examine the investment capital settlement report dossiers
strictly according to regulations before signing and sending them to the
Finance Ministry for examination and approval of the investment capital
settlements.
- To nominate capable and qualified cadres to
take part in the examination of the settlements when so requested.
VIII. REPORTING REGIME AND
INSPECTION
1. Reporting regime:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Investors shall have to draw up reports on the
annual investment capital disbursement and send them to the ministries,
branches and People’s
Committees of the provinces and centrally-run cities within 15 days after the
year end.
- The ministries, branches and People’s Committees of the provinces
and centrally-run cities shall have to make sum-up reports and send them to the
Finance Ministry and the General Department of Statistics within 30 days after
the year end.
b/ Reporting on the situation of examination and
approval of the settlements of the completed investment projects:
- Quarterly reports: The ministries, branches
and provincial/municipal People’s
Committees shall have to make sum-up reports on the situation of examination
and approval of the investment capital settlements of the completed projects
within their management responsibility and send them to the Finance Ministry in
the first week of the first month of the subsequent quarter.
- Annual reports: The ministries, branches and
provincial/municipal People’s
Committees shall have to make sum-up reports on the situation of examination
and approval of the investment capital settlements of the completed projects
within the management responsibility and send them to the Finance Ministry and
the General Department of Statistics within 30 days after the year end so that
the latter integrate them into a report to the Government.
2. Inspection and handling of violations:
The agencies exercising the State management
over investment shall have to regularly inspect the situation of investment
capital settlement so as to promptly remedy and handle violations.
Part III
IMPLEMENTATION PROVISIONS
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
The State encourages non-State enterprises and
economic organizations to make, examine and approve the investment capital
settlements according to the provisions of this Circular.
Any problems or difficulties arising in the
course of implementation should be promptly reported by the ministries,
branches and localities to the Finance Ministry for study and settlement.
FOR THE FINANCE MINISTER
VICE MINISTER
Vu Van Ninh