Circular No. 03/2014/TT-BTC guides the transfer of roads, power systems, irrigation works, and schools from units under the Vietnam Rubber Industry Group to local authorities and the Vietnam Electricity Corporation for management.

CIRCULAR

Guidelines on the transfer of transportation roads, electrical systems, water conservancy works, and schools of member units under the Vietnam Rubber Industry Group to local authorities and the Vietnam Electricity Corporation for management.

Vietnam Rubber Industry Group

Vietnam at the local level and the Vietnam Electricity Corporation manage

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing Decision No. 1362/QĐ-TTg dated August 8, 2013 of the Prime Minister regarding the transfer of transportation roads, electrical systems, water conservancy works, and schools of member units under the Vietnam Rubber Industry Group to local authorities for management;

At the proposal of the Director of the Enterprise Financial Department.

The Minister of Finance issues this Circular guiding the transfer of assets such as transportation roads, electrical systems, water conservancy works, and schools invested and constructed by member units under the Vietnam Rubber Industry Group to serve common purposes on the territory to the People's Committee of the province or centrally governed city (or units authorized by the People's Committee of the province or centrally governed city to receive) and the Vietnam Electricity Corporation for management and use according to Decision No. 1362/QĐ-TTg dated August 8, 2013 of the Prime Minister, specifically:

Article 1. Scope of Regulation

This Circular guides the transfer of assets which are transportation roads, electrical systems, water conservancy works, and schools invested and constructed by member units under the Vietnam Rubber Industry Group to serve common purposes on the territory to the People's Committee of the province or centrally governed city (or units authorized by the People's Committee of the province or centrally governed city to receive) and the Vietnam Electricity Corporation for management and use according to Decision No. 1362/QĐ-TTg dated August 8, 2013 of the Prime Minister, specifically:

1. Transportation roads include: Roads serving the common production and business activities of units under the Vietnam Rubber Industry Group and the residents in the area.

2. Water conservancy works include: Dams, reservoirs, and canal systems serving the common production and business activities of units under the Vietnam Rubber Industry Group and the residents in the area.

3. Electrical systems include: Medium and low voltage power lines and transformer stations serving the common production and business activities of units under the Vietnam Rubber Industry Group and the residents in the area.

4. Schools include: Primary schools, secondary schools, and high schools supported by units under the Vietnam Rubber Industry Group with operating funds according to current regulations.

Article 2. Applicability

1. Transferor: Legal representatives of forest-rubber farms, companies, and factories which are member units under the Vietnam Rubber Industry Group currently managing the assets subject to transfer.

2. Transferee:

a) People's Committee of the province or centrally governed city or legal representatives of units authorized by the People's Committee of the province or centrally governed city to receive assets for transportation, water conservancy, and education sectors;

b) Vietnam Electricity Corporation or legal representatives of units authorized by the Vietnam Electricity Corporation to receive assets for the electricity sector.

3. Leading unit implementing the transfer: Vietnam Rubber Industry Group.

Article 3. Principles of Transfer

1. Transfer in original condition of assets, reducing the capital stock of the Transferor at the time of transfer after auditing and processing as follows:

a) Transferor: Record the reduction of assets and capital stock from the date the transfer record is signed by both the Transferor and Transferee. For assets invested using state capital, reduce the capital stock. For assets invested using borrowed funds or welfare funds (with supporting documentation), if debts have not been fully repaid and are still recorded in accounting books at the time of transfer, the Transferor shall use post-tax profits to repay all outstanding loans and welfare fund debts before distributing profits according to regulations.

b) Transferee: Receive the assets and capital and record an increase in assets and capital based on the results of the transfer from the date the transfer record is signed by both the Transferor and Transferee, and be responsible for managing the assets according to the nature of the unit (production and business unit, revenue-generating public service unit, or administrative public service unit).

2. In cases where assets have been fully depreciated but still have residual value and are still recorded in accounting books: The Transferor reports to the Vietnam Rubber Industry Group, which will lead coordination with the provincial Department of Finance and the Transferor and Transferee to reassess the asset value according to regulations to implement the transfer.

3. In cases where investment projects have been completed and put into use but have not yet been settled at the time of transfer, the Transferor transfers the assets to the Transferee based on provisional valuation. The Transferor is responsible for settling the investment costs and submitting them to the competent authority for approval according to current regulations and notifying the Transferee to adjust their records accordingly.

4. In cases where investment projects have not been completed and put into use at the time of transfer, the Transferor continues to invest until completion. After completion, the Transferor promptly settles the investment costs and submits them to the competent authority for approval to implement the transfer of assets. The Transferor and Transferee base their accounting entries related to assets and capital on Article 3 of this Circular.

Article 4. Transfer Documents

- Investment Decision for the transferred assets;

- Technical Design of the transferred assets;

- Acceptance Certificate of the project;

- Budget Estimate and Final Account of the investment capital for the transferred assets;

- Asset Transfer Record prepared by the transferring entity according to the annex determining financial indicators related to the transferred assets (original value of the asset, depreciated value, remaining value, investment capital, outstanding loans) signed by the transferring party, receiving party, and witnessing agencies;

- Land documents for the right-of-way of power lines and substation site (for the electricity system).

In case the transferring party does not have land documents for the right-of-way of power lines and substation site when transferring the electricity system, the transfer shall still be carried out. The transferring party shall take the lead in coordinating with the receiving party to prepare land documents for the right-of-way of power lines and substation site in accordance with Decree No. 106/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law on protecting high-voltage transmission line facilities, to submit for approval by the People's Committee of the province (or competent authority).

The transferring party is responsible for preparing all relevant documents and materials concerning the transferred assets. If any documents are missing, the transfer shall still be carried out, and each missing document shall be clearly recorded along with the specific reasons for their absence so that the transferring party can be responsible for supplementing them and bear responsibility for the lack or failure to fully supplement the documents and materials.

Article 5. Responsibilities of the Transferring Party, Receiving Party, and Related Agencies

1. Transferring Party:

a) Prepare all necessary documents and materials for transfer as stipulated in Article 4 of this Circular and record the reduction of assets and capital after the transfer of assets.

b) Send a letter requesting the People's Committees of provinces and centrally-administered cities to accept the assets or authorize specialized units to accept the assets for transportation, water conservancy, and education sectors.

c) Send a letter requesting Vietnam Electricity Corporation to accept the assets or authorize units to accept the assets for the electricity sector.

2. Receiving Party:

a) Accept the transferred assets, documents, and materials related to the transferred assets.

b) Record the increase in assets and capital and be responsible for managing and operating the assets according to the nature of the unit's activities (production and business unit, public service unit with income, or administrative agency).

3. People's Committees of provinces and centrally-administered cities shall direct authorized units within their locality to accept, manage, and operate the assets in accordance with the nature of the unit's activities (production and business unit, public service unit with income, or administrative agency).

4. Vietnam Electricity Corporation shall direct authorized units within the electricity sector to carry out acceptance, management, and operation of the assets in accordance with regulations.

5. Vietnam Rubber Industry Group shall direct member units within the Group to carry out transfers and take the lead in coordinating with related units and agencies to implement asset transfers in accordance with this Circular. By the end of 2015, compile the results of asset transfers by member units and report to the Ministry of Finance for consolidation and reporting to the Prime Minister.

Article 6. Time limit for transferring assets

The transfer of assets including roads, power systems, irrigation works, and schools from units under the Vietnam Rubber Industry Group to the People's Committees of provinces and centrally governed cities and the Vietnam Electricity Corporation shall be carried out in 2014 and 2015, and completed before December 31, 2015.

Article 7. Costs for asset transfer and receipt work

For costs related to the transfer and receipt of assets (travel expenses, accommodation, and working expenses), the agency sending staff to participate in the transfer process shall be responsible for settling such costs according to the prescribed regulations.

Common costs related to the transfer work (printing of documents, meetings related to the transfer work) shall be implemented in accordance with the regulations. The transferring party is responsible for payment and such costs shall be recorded as financial management expenses of the enterprise.

Article 8. Effective Date

1. This Circular takes effect from February 15, 2014.

2. In case of difficulties during implementation, agencies and units are requested to promptly report to the Ministry of Finance for research and supplementation or amendment./.