Joint Circular No. 01/2001/TTLT/BTC-BGTVT guides the management, allocation, and settlement of state budget funds for economic public works expenses related to road maintenance.

JOINT CIRCULAR

CONSOLIDATED DOCUMENT NO. 01/2000/TTLT/BTC-BGTVT OF JANUARY 5, 2001 GUIDING THE MANAGEMENT REGIME,
ISSUANCE, SETTLEMENT OF EXPENSES FOR ECONOMIC ROAD REPAIR OPERATIONS,
IN ORDER TO STRENGTHEN THE MANAGEMENT AND ISSUE OF FUNDS FOR ECONOMIC ROAD REPAIR OPERATIONS IN ACCORDANCE WITH THE PROVISIONS OF THE STATE BUDGET LAW; THE MINISTRY OF FINANCE AND THE MINISTRY OF TRANSPORT JOINTLY ISSUE GUIDELINES ON THE MANAGEMENT, ISSUANCE, AND SETTLEMENT OF FUNDS FOR ECONOMIC ROAD REPAIR OPERATIONS GUARANTEED BY THE STATE BUDGET AS FOLLOWS:

1. FUNDS FOR ECONOMIC ROAD REPAIR OPERATIONS ARE PROVIDED BY THE STATE BUDGET TO PERFORM ROUTINE MAINTENANCE AND NONROUTINE REPAIRS OF ROADS AND BRIDGES (COLLECTIVELY REFERRED TO AS ROADS); SUCH FUNDS SHALL BE MANAGED, ISSUED, AND SETTLED BASED ON UNIT PRICES AND VOLUMES OF REPAIRS APPROVED BY AUTHORIZED AUTHORITIES.

I. GENERAL PROVISIONS

2. FUNDS FOR THE MANAGEMENT AND ROUTINE MAINTENANCE OF NATIONAL HIGHWAYS ARE GUARANTEED BY THE CENTRAL BUDGET.

FUNDS FOR THE MANAGEMENT AND ROUTINE MAINTENANCE, AS WELL AS NONROUTINE REPAIRS OF LOCAL ROADS, ARE GUARANTEED BY THE LOCAL BUDGET.

3. ANNUAL FUNDS FOR ECONOMIC ROAD REPAIR OPERATIONS SHALL BE SETTLED IN ACCORDANCE WITH CURRENT REGULATIONS.

1.1. EXPENSES FOR ROUTINE MAINTENANCE:

II. SPECIFIC PROVISIONS

1. Content of expenditure:

- EXPENSES FOR MANAGEMENT AND ROAD SAFETY WORK.

- EXPENSES FOR ROUTINE MAINTENANCE AND MAINTENANCE OF ROADS.

1.2. EXPENSES FOR NONROUTINE REPAIRS:

- EXPENSES FOR REGULAR REPAIRS ACCORDING TO TECHNICAL PROCEDURES (INCLUDING EXPENSES FOR MODERATE REPAIRS AND MAJOR REPAIRS OF ROADS).

- EXPENSES FOR URGENT REPAIRS TO RESTORE TRAFFIC AFTER NATURAL DISASTERS OR OTHER CAUSES TO ENSURE TRAFFIC.

1.3. OTHER EXPENSES INCLUDE:

- COMPENSATION EXPENSES FOR THE OPERATIONS OF FERRY PIERs IN CASE OF INSUFFICIENT FUNDS.

- EXPENSES FOR THE OPERATIONS OF WEIGHT CHECK STATIONS AND TRAFFIC COUNT STATIONS; TRAFFIC INSPECTION ACTIVITY EXPENSES; EXPENSES FOR THE OPERATIONS OF ROAD MANAGEMENT ZONES ACCORDING TO THE ADMINISTRATIVE EXPENSE LIMITS AND STAFFING LEVELS ASSIGNED BY THE MINISTRY OF TRANSPORT AND SPECIALIZED BUSINESS MANAGEMENT EXPENSES.

- EXPENSES FOR PURCHASING MAINTENANCE EQUIPMENT AND CONSTRUCTING ROAD MANAGEMENT HOUSES (NO MORE THAN 10% OF THE ANNUAL MAINTENANCE AND ROUTINE REPAIR FUNDS FOR ROADS, OVER A THREE-YEAR PERIOD FROM 2001 TO 2003). - RESERVE EXPENSES FOR TRAFFIC ASSURANCE AS DECIDED BY THE MINISTER OF TRANSPORT.

2. PREPARATION OF THE BUDGET ESTIMATE FOR ECONOMIC ROAD REPAIR FUNDS.

THE ANNUAL PREPARATION OF THE BUDGET ESTIMATE FOR ECONOMIC ROAD REPAIR FUNDS SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF CIRCULAR NO. 103/1998/TT-BTC OF JULY 18, 1998 ISSUED BY THE MINISTRY OF FINANCE ON GUIDELINES FOR THE DELEGATION, PREPARATION, IMPLEMENTATION, AND SETTLEMENT OF THE STATE BUDGET; THIS CIRCULAR ADDITIONALLY GUIDES THE FOLLOWING POINTS:

2.1. FOR NATIONAL HIGHWAYS UNDER CENTRAL MANAGEMENT: ANNUALLY, BASED ON THE BUDGET EXPENDITURE ESTIMATES ANNOUNCED BY THE MINISTRY OF FINANCE, AND BASED ON THE ANNOUNCEMENTS OF THE MINISTRY OF TRANSPORT AND VIETNAM HIGHWAY CORPORATION, THE CORRESPONDING UNITS (ROAD MANAGEMENT ZONES AND HIGHWAY PROJECT MANAGEMENT BOARDS) AND DEPARTMENT OF TRANSPORTS (FOR NATIONAL HIGHWAYS DEPUTIZED TO LOCAL MANAGEMENT - COLLECTIVELY REFERRED TO AS DEPUTIZED MANAGEMENT ROADS) SHALL BE ASSIGNED BUDGET CHECKS.

BASED ON THE CONDITION OF THE ROADS; ECONOMIC AND TECHNICAL STANDARDS; EXPENSE CONTENTS AS DEFINED AT POINT 1, SECTION II OF THIS CIRCULAR; UNIT PRICES AND EXPENSE STANDARDS APPROVED BY AUTHORIZED AUTHORITIES; CURRENT FINANCIAL EXPENSE REGULATIONS; AND BUDGET CHECKS FROM SUPERIOR AUTHORITIES, THE CORRESPONDING UNITS (SUBORDINATE UNITS OF VIETNAM HIGHWAY CORPORATION AND DEPARTMENT OF TRANSPORTS FOR DEPUTIZED MANAGEMENT ROADS) SHALL PREPARE THE BUDGET ESTIMATE FOR ROAD REPAIR EXPENSES, DETAILING THE EXPENSES ACCORDING TO THE EXPENSE ITEMS OF THE STATE BUDGET OUTLINE AND SUBMIT THEM TO VIETNAM HIGHWAY CORPORATION FOR COMBINED REVIEW AND SUBMISSION TO THE MINISTRY OF TRANSPORT AND THE MINISTRY OF FINANCE AS REQUIRED.

2.2. FOR ROADS UNDER LOCAL MANAGEMENT: THE DEPARTMENT OF TRANSPORTS SHALL BASE THEIR BUDGET ESTIMATES ON THE BUDGET EXPENDITURE CHECKS ASSIGNED BY AUTHORIZED AUTHORITIES. BASED ON THE CONDITION OF THE ROADS; ECONOMIC AND TECHNICAL STANDARDS; EXPENSE CONTENTS AS DEFINED AT POINT 1, SECTION II OF THIS CIRCULAR; UNIT PRICES AND EXPENSE STANDARDS APPROVED BY AUTHORIZED AUTHORITIES; AND CURRENT FINANCIAL EXPENSE REGULATIONS; THEY SHALL PREPARE THE BUDGET ESTIMATE FOR ROAD REPAIR EXPENSES, DETAILING THE EXPENSES ACCORDING TO THE EXPENSE ITEMS OF THE STATE BUDGET OUTLINE AND SUBMIT THEM TO THE DEPARTMENT OF FINANCE AND PRICE CONTROL AS REQUIRED.

THE BUDGET ESTIMATES AS DEFINED AT POINT 2, SECTION II ABOVE MUST BE ACCOMPANIED BY A DETAILED EXPLANATION. FOR EXPENSES FOR NONROUTINE REPAIRS, THEY MUST BE DETAILLED ACCORDING TO EACH PROJECT ATTACHED TO A SPECIFIC ROAD SEGMENT, ROUTE, VOLUME, EXPENSES, AND IMPLEMENTATION TIMEFRAME.

DUE TO THE CHARACTERISTICS OF ROAD MANAGEMENT AND REPAIR WORK, THE PREPARATION OF BUDGET ESTIMATES AND THE DISTRIBUTION OF REPAIR FUNDS SHALL BE CONDUCTED ACCORDING TO THE EXPENSE ITEMS OF THE STATE BUDGET OUTLINE AS FOLLOWS:

- ITEM 117: "ROUTINE MAINTENANCE OF FIXED ASSETS USED FOR SPECIALIZED WORK AND MAINTENANCE OF INFRASTRUCTURE FACILITIES." REFLECTS EXPENSES FOR ROUTINE MAINTENANCE OF ROADS. COMPENSATION EXPENSES FOR FERRY PIER OPERATIONS IN CASE OF INSUFFICIENT REVENUES.

- ITEM 118: "MAJOR REPAIRS OF FIXED ASSETS USED FOR SPECIALIZED WORK AND INFRASTRUCTURE FACILITIES": REFLECTS EXPENSES FOR NONROUTINE MAINTENANCE OF ROADS (INCLUDING REGULAR REPAIRS AND URGENT REPAIRS). EXPENSES FOR CONSTRUCTING ROAD MANAGEMENT HOUSES.

- ITEM 134 "OTHER EXPENSES": REFLECTS EXPENSES FOR THE OPERATIONS OF WEIGHT CHECK STATIONS AND TRAFFIC COUNT STATIONS; TRAFFIC INSPECTION ACTIVITY EXPENSES; EXPENSES FOR THE OPERATIONS OF ROAD MANAGEMENT ZONES. WHEN SPENDING AND SETTLING EXPENSES, THEY SHALL BE ACCORDING TO THE CORRESPONDING EXPENSE ITEMS OF THE STATE BUDGET OUTLINE.

- ITEM 145 "EXPENSES FOR PURCHASING FIXED ASSETS": REFLECTS EXPENSES FOR PURCHASING MAINTENANCE EQUIPMENT FOR ROAD REPAIRS.

3. IMPLEMENTATION OF THE STATE BUDGET ESTIMATE

3.1. ALLOCATION OF THE ASSIGNED BUDGET ESTIMATE.

AFTER THE STATE BUDGET ESTIMATE FOR THE YEAR IS ASSIGNED BY AUTHORIZED AUTHORITIES, BASED ON THE ANNOUNCEMENTS OF THE MINISTRY OF TRANSPORT, VIETNAM HIGHWAY CORPORATION SHALL ALLOCATE THE BUDGET ESTIMATE ACCORDING TO THE EXPENSE CONTENTS AND EXPENSE ITEMS OF THE STATE BUDGET OUTLINE AS DEFINED IN SECTION II ABOVE TO THE EXECUTING UNITS (DETAILING BY QUARTER AND MONTH); FOR EXPENSES FOR NONROUTINE REPAIRS, THEY MUST BE DETAILLED ACCORDING TO EACH PROJECT ATTACHED TO A SPECIFIC ROAD SEGMENT, ROUTE, VOLUME, EXPENSES, AND IMPLEMENTATION TIMEFRAME AND SUBMITTED TO THE MINISTRY OF FINANCE AND THE STATE TREASURY WHERE THE TRANSACTION OCCURS; INCLUDING:

- FUNDS FOR REPAIRING NATIONAL HIGHWAYS PERFORMED BY ROAD MANAGEMENT ZONES.

- FUNDS FOR REPAIRING NATIONAL HIGHWAYS PERFORMED BY HIGHWAY PROJECT MANAGEMENT BOARDS.

- The repair costs for national highways shall be carried out by Highway Management Zones.

- The repair costs for national highways shall be carried out by Road Construction Project Management Boards.

- The repair costs for national highways delegated to the Provincial Department of Transport under the Central Government to implement.

The Provincial Department of Transport under the Central Government bases on the state budget expenditure estimate granted by the competent authority, allocates the budget estimate according to the items and sub-items specified in the State Budget Schedule mentioned above for the units to carry out (in detail by quarter and divided by month); For non-recurring repair expenses, it must be detailed according to each project attached to the section of road, route, volume, cost, implementation time sent to the Provincial Department of Finance - Price Control and State Treasury where transactions take place.

Based on the repair road expenditure estimate granted by the competent authority, the Road Management Zones implement the assignment of plans, signing contracts or placing orders with central public utility road enterprises managed by them; The Road Project Management Board signs contracts or places orders with enterprises. The Provincial Department of Transport under the Central Government implements the assignment of plans, signing contracts or placing orders with local public utility road enterprises, public service units under local management (including the part of the central government's budget transferred for the management of national highways); To serve as the basis for inspection, supervision, acceptance and settlement of road repair work volumes.

3.2. Issuance and settlement of repair road funds.

- For national highways: Quarterly based on the central government's budget capacity and the detailed repair road expenditure estimate for the period established by the Vietnam Highway Administration; The Ministry of Finance issues the budget limit directly to the Vietnam Highway Administration, which then distributes the budget limit to the Road Management Zones and the Road Project Management Board for settlement according to contracts or orders to the road repair units.

For national highway routes delegated by the Ministry of Transport to local management; Based on the detailed repair road expenditure estimate for the period established by the Vietnam Highway Administration and the Ministry of Finance, issued as a budget limit to the local Department of Finance - Price Control; At the same time, notify the Ministry of Transport (Vietnam Highway Administration) and delegate the local Department of Finance - Price Control to issue to the Provincial Department of Transport for settlement according to contracts or orders to the road repair units.

- For roads managed by localities: Quarterly based on the local budget capacity and the detailed repair road expenditure estimate for the period established by the Provincial Department of Transport; The Department of Finance - Price Control issues the budget limit to the Provincial Department of Transport for settlement according to contracts or orders to the road repair units.

Basis for issuing and settling contracts or orders for road repair projects:

+ In the approved project list and budget estimate.

+ Having road repair funds issued by the financial agency.

+ Tender result record in accordance with current regulations.

(For routine maintenance and emergency repairs due to typhoons and floods to ensure traffic, as decided by the transport authority).

+ Economic contract record or order form between the Road Management Zone, the Road Project Management Board or the Provincial Department of Transport and the implementing unit.

+ Acceptance record of work volume, quality, and project price certificate.

+ Payment authorization order signed by the head of the contracting or ordering unit, along with valid supporting documents.

The State Treasury at the transaction location checks according to the above bases, performs its function of controlling expenditures (before making payments according to the payment authorization order of the transport authority) as stipulated in Circular No. 40/1998/TT-BTC dated March 31, 1998 of the Ministry of Finance "Guidelines for the management, issuance, and settlement of state budget revenues and expenditures through the State Treasury." In cases where repair work has not been completed, the maximum advance payment shall not exceed 60% of the value of the signed contract for each repair work.

4. Reporting and settlement of funds.

4.1. Settlement report.

At the end of each quarter and year, the Road Management Zones and the Road Project Management Board prepare settlement reports on road repair funds to send to the Vietnam Highway Administration for consolidation and reporting to the Ministry of Transport and the Ministry of Finance in accordance with the prescribed forms and submission deadlines set forth in Decision No. 999 TC/QD/CĐKT dated November 2, 1996 of the Ministry of Finance regarding the issuance of the accounting system for administrative and special industries.

The Provincial Department of Transport under the Central Government is responsible for preparing quarterly and annual settlement reports on local road repair funds to send to the Provincial Department of Finance - Price Control in accordance with the prescribed forms and submission deadlines. Additionally, the Provincial Department of Transport under the Central Government must prepare quarterly and annual settlement reports on the repair funds for national highways under their delegated management to send to the Provincial Department of Finance - Price Control, and simultaneously send to the Ministry of Transport (Vietnam Highway Administration) in accordance with current regulations.

4.2. Review of settlement reports.

The Vietnam Highway Administration is responsible for reviewing the settlements of the Road Management Zones and the Road Project Management Board; The Ministry of Transport is responsible for reviewing the settlements of the Vietnam Highway Administration; The Ministry of Finance reviews the annual consolidated settlements of the Ministry of Transport.

The Provincial Department of Finance - Price Control reviews the annual consolidated settlements of the Provincial Departments of Transport under the Central Government.

For delegated funds, the Provincial Departments of Finance - Price Control under the Central Government are responsible for reviewing settlements in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance "Guidelines for the delegation, preparation, execution, and settlement of the state budget." The Ministry of Finance collaborates with the Ministry of Transport (Vietnam Highway Administration) to audit and review the settlements of the Provincial Departments of Finance - Price Control under the Central Government in accordance with current regulations.

5. Inspection work.

To ensure that the economic funds for road maintenance are used for their intended purposes and effectively, the Ministry of Transport, the Vietnam Highway Administration, and the provincial and municipal transport departments shall coordinate with the financial authorities at the same level to periodically and randomly inspect the management, use, settlement, and final accounts of the economic funds for road maintenance at subordinate units.

Expenditures exceeding the budgeted amount, unplanned expenditures, and expenditures not in accordance with regulations must be recovered and remitted to the State budget; at the same time, the person who orders incorrect expenditures must compensate the public treasury and bear legal responsibility.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect from January 1, 2001, and replaces Circulars No. 78 TT/LB dated December 26, 1991, and Circular No. 03 TT/LB dated January 8, 1993, issued by the Ministry of Finance and the Ministry of Transport on guidelines for managing, disbursing, settling, and finalizing accounts of management capital and regular maintenance and major repair funds for roads.

During implementation, if there are any difficulties, they should be reported to the relevant ministries for appropriate amendments.