Directive No. 03/2004/CT-BGTVT on Rectifying Financial Management, Accounting, and Finalizing Investment Capital for Completed Projects at Project Management Boards and Project Investors

DIRECTIVE

Regarding the rectification of financial management, accounting, and final settlement of investment capital for completed projects

at Project Management Boards and Investors  

In recent times, the work of financial management, accounting, and final settlement of investment capital for completed projects at Project Management Boards and Investors under the Ministry (hereinafter referred to as investors) has made significant progress, gradually becoming more organized. Investment capital for projects has been used effectively, contributing to promoting economic and social development in the country.  The Minister of Transport has issued decisions, directives, and documents aimed at strengthening the final settlement of construction works generally and the final settlement of investment capital for completed projects specifically (Decision No. 4160/2001/QĐ-BGTVT dated December 6, 2001 of the Minister of Transport on the final settlement of investment capital for transportation works; Directive No. 02/2003/CT-BGTVT dated January 13, 2003 of the Minister of Transport on accelerating the final settlement of investment capital for construction works; Directive No. 13/2003/CT-BGTVT dated May 29, 2003 of the Minister of Transport on rectifying and addressing existing violations in investment and construction management of transportation construction projects through audit results). However, through the auditing, inspection, and examination activities of competent authorities, it has been observed that many investors have relaxed certain aspects of management, violating state financial and accounting regulations. The situation of settling the value of completed construction works according to state pricing and norms, lacking legal procedures, exceeding approved budgets, delayed submission of final settlement reports, non-compliance with state regulations and approved budgets in expenditures and purchases, and violations regarding invoices and certificates still occur in some units.

To promptly address the above situation and ensure that financial management, accounting, and final settlement of investment capital for projects by investors are strictly carried out in accordance with state regulations, the Minister of Transport requires investors under the Ministry of Transport to implement the following actions:  1/ Immediately rectify the work of settling the value of completed construction works for projects managed by investors. The settlement of the value of completed construction works for contractors must ensure full legal procedures and comply with state regulations. Stop the practice of settling values beyond approved budgets.

2/ Accelerate the work of settling land clearance costs with localities, avoiding delays, and not allowing situations where local land clearance boards have been dissolved or land clearance staff transferred to other positions before investors settle these costs with localities.

3/ Accelerate the work of preparing and submitting final settlement reports for completed projects, ensuring content, quality, and deadlines as prescribed. Particularly, investors must complete all investment and construction management procedures (including adjustments if necessary) concerning total investment amount, total budget estimate, budget estimates, tender package value, contract value, and management of additional costs during construction in compliance with regulations, and submit the final settlement report for completed projects to the competent authority for approval before the deadline as prescribed.

For projects whose final settlement of investment capital has been approved by the Minister of Transport, investors must hire independent auditing organizations legally operating in Vietnam to conduct audits of the final settlement reports. The selection of auditing organizations shall be carried out in accordance with current regulations of the Ministry of Finance.  For projects completed in previous years but not yet settled due to lost or missing documents, investors must compile and report to the Ministry (clearly stating the current status and reasons) so that the Ministry can compile and request the Ministry of Finance to guide the handling according to the spirit of Decision No. 1218/QĐ-TTg dated

 of the Prime Minister.

4/ For projects with recoverable assets, investors must promptly recover and manage them strictly in accordance with regulations, while immediately formulating and submitting plans for handling to the Ministry for the Ministry to request the Ministry of Finance to resolve. Strictly prohibit investors from arbitrarily deciding the use of these assets contrary to their initial investment purposes (such as lending to other units, etc.). Male 5/ Strictly comply with regulations on the payment of State Budget for the operation of project management board asset leasing, remaining bidding document fees after settling necessary expenses for organizing tenders, etc. 

6/ Rectify accounting recording in accordance with the accounting system applicable to investor units issued by Decision No. 214/2000/QĐ-BTC dated 19/12/2002 of the Minister of Finance, focusing on:

a) Opening all required accounting accounts and types of ledgers as prescribed to record and reflect all economic transactions fully, accurately, and truthfully; prepare and submit accounting reports in accordance with current regulations. Units that have implemented computerized accounting records must still comply with all regulations on opening, recording, and closing accounting ledgers. After closing the computerized accounting ledger, print the ledger on paper and bind it separately for each accounting period in accordance with current state regulations.

b) Strengthen the management of invoices and certificates; all income and expenditure items must have complete invoices and certificates as prescribed; all original documents for accounting records must follow the forms of the Ministry of Finance, with complete signatures and stamps. Properly carry out the annual final settlement of project management costs.

c) Units must fully comply with all accounting laws. Strictly prohibit units from assigning personnel without accounting expertise to handle accounting tasks. 28/12/2000 of the Minister of Finance, with emphasis on:

a) Opening all accounting accounts and types of accounting books as prescribed to record and reflect fully, accurately, and truthfully all economic transactions arising; preparing and submitting accounting reports in accordance with the current regulations. Units that have implemented accounting records using computers must still comply fully with the regulations regarding opening, recording, and closing accounting books. After closing the accounting books on the computer, they must be printed on paper and bound into separate volumes for each accounting period according to the current regulations of the State.

b) Strengthening the management of invoices and vouchers; all revenues and expenditures must be supported by complete invoices and vouchers as prescribed; all original vouchers for accounting records must be prepared according to the forms issued by the Ministry of Finance, signed and stamped. Properly carry out the annual settlement of project management costs.

c) Units must fully comply with the legal provisions on accounting. It is strictly prohibited for units to assign individuals without accounting expertise to handle accounting work.

7/ Strictly manage expenditures and procurement of equipment in accordance with state regulations, standards, and approved budgets; strictly comply with the Ordinance on Thrift and Prevention of Waste. The person making unauthorized expenditure decisions shall be responsible for reimbursing the public treasury and shall be subject to disciplinary action as prescribed. Advance payments must be spent on the designated recipients and purposes and must be settled promptly.

8/  Sectoral State management agencies and corporations under the Ministry shall strengthen supervision over the implementation of financial management systems, accounting, and final settlement of project completion investment capital for subordinate units and  report the results to the Ministry as prescribed.

It is required that heads of Project Investors, agencies, units under the Ministry, and related individuals within their functional and assigned tasks be responsible for fully and strictly implementing this Directive./.