Circular No. 10/2005/TT-BTC guides the implementation of the financial transparency regulations for the allocation, management, and use of capital for construction investment projects funded by state budget.

CIRCULAR

Guidelines for Implementing Financial Transparency Regulations

concerning the allocation, management, and utilization of capital for construction investment projects from

state budget funds state budget funds

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 192/2004/QĐ-TTg dated November 16, 2004 of the Prime Minister promulgating financial transparency regulations for state budgets at all levels, budgetary units, organizations supported by state budget funds, construction investment projects using state budget funds, state-owned enterprises, funds sourced from state budget funds, and funds from contributions of the people;

The Ministry of Finance issues guidelines for implementing financial transparency regulations concerning the allocation, management, and utilization of capital for construction investment projects from state budget funds as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope and Applicability:

1.1. Scope of Application:

All construction investment projects utilizing state budget funds that are decided by competent authorities to be included in the annual state budget investment plan must implement financial transparency, including projects funded entirely by state budget funds and those receiving investment support from state budget funds.

1.2. Entities Implementing Financial Transparency:

1.2.1. Competent authorities deciding on the allocation of annual state budget investment funds for construction investment projects (hereinafter referred to as the superior authority of the project sponsor), including:

+ Ministries, ministerial-level agencies, government agencies, political organizations, social organizations, social-professional organizations, and other central-level agencies.

+ State-owned corporations.

+ People's Committees of provinces and centrally-administered cities; People's Committees of districts, counties, towns under provinces, and People's Committees of communes, wards, and towns under provinces.

1.2.2. Project sponsors and project management boards (hereinafter collectively referred to as project sponsors).

2. Contents Required for Financial Transparency:

2.1. Transparency in the annual allocation of investment capital to projects.

2.2. Transparency regarding the total investment capital and approved project budget estimates.

2.3. Transparency in the results of contractor selection approved by competent authorities.

2.4. Transparency in the annual budget settlement figures for investment capital of projects.

2.5. Transparency in the final investment capital settlement figures when projects are completed and approved by competent authorities.

Units responsible for implementing financial transparency in the allocation and utilization of investment capital for construction investment projects utilizing state budget funds must promptly and accurately disclose such information in accordance with the timeframes specified in this Circular.

Confidential materials and data classified as state secrets according to the law shall not be disclosed.

II. SPECIFIC PROVISIONS

1. Annually, the superior authority of the project sponsor must disclose financial information within their jurisdiction as follows:

1.1. Disclosed contents:

a) The total investment capital allocated by the state according to the annual state budget plan and the implementation of investment capital plans for each project under their management (using Form 01/CKTC-ĐTXD).

b) The results of contractor selection approved by competent authorities for each project (using Form 02/CKTC-ĐTXD).

c) Annual budget settlement figures for investment capital of each project (using Form 03/CKTC-ĐTXD).

d) Final investment capital settlement figures when projects are completed and approved by competent authorities (using Form 04/CKTC-ĐTXD).

1.2.Disclosure Timeframe:

- Contents required to be disclosed as stipulated in Clause a, c, and d Point 1.1 Part II of this Circular must be disclosed no later than 30 days from the date of signing the decision on capital allocation, adjustment, and approval of annual budget settlement reports and final investment capital settlement decisions.

- Content required to be disclosed as stipulated in Clause b Point 1.1 Part II of this Circular must be implemented no later than 15 days from the date the results of contractor selection are approved.

1.3Disclosure Method: Publicly posting at the agency’s headquarters and announcing at agency meetings.

2. Project sponsors must disclose financial information within their management authority as follows:

2.1. Disclosed contents:

a) The total investment capital and approved project budget estimates for each project.

b) Investment capital plans (including adjustments and supplements) assigned by the superior authority of the project sponsor during the year for each project (Form 05/CKTC-ĐTXD).

(Template for public disclosure of sub-items a and b according to template number 05/CKTC-ĐTXD).

c) The results of contractor selection approved by competent authorities for each project (using Form 02/CKTC-ĐTXD above).

d) Annual budget settlement figures for investment capital of each project (using Form 03/CKTC-ĐTXD above). For projects requiring audit, the annual audit results must also be disclosed.

e) Final investment capital settlement figures when projects are completed and approved by competent authorities (using Form 04/CKTC-ĐTXD).

2.2. Disclosure Timeframe:

- Contents required to be disclosed as stipulated in Clause a, b, d, and e Point 2.1 Part II of this Circular must be disclosed no later than 30 days from the date the project and investment capital settlement are assigned or approved, except for Clause d which must be disclosed after the project sponsor submits the annual financial report according to the accounting system applicable to the project sponsor.

- Content required to be disclosed as stipulated in Clause c Point 2.1 Part II of this Circular must be implemented no later than 15 days from the date the results of contractor selection are approved.

2.3Disclosure Method: Publicly posting at the agency’s headquarters and announcing at agency meetings.

3. Reporting on Implementation of Disclosure:

3.1. Project sponsors are responsible for submitting reports on disclosed information and the implementation of disclosure requirements as stipulated in this Circular to the superior authority of the project sponsor.

3.2. The superior authority of the project sponsor compiles and submits a report on the implementation of disclosure requirements as stipulated in this Circular to the finance department at the same level.

3.3. Finance departments at all levels are responsible for assisting the People's Committee at the same level in compiling and reporting on the financial transparency of construction investment capital to the People's Committee and higher-level finance departments.

4. Inspection, supervision of financial transparency implementation, questioning, and answering questions:

4.1. The Vietnam Fatherland Front, political-social organizations, mass organizations within and outside the agency, unit, and the people shall supervise the implementation of financial transparency and have the right to question units implementing financial transparency according to the contents prescribed in this Circular.

4.2. Units implementing financial transparency must respond to questions regarding the financial transparency contents as stipulated in this Circular concerning the allocation and use of capital for basic construction projects from state budget funds. Responses to questions must be made in writing and sent to the person posing the question.

The time limit for responding to questions is no later than ten days after receiving the questioning document; in cases where the content of the questioning is complex, a notice of appointment must be issued and the response must not exceed forty-five days.

4.3. The superior authority of the project investor shall inspect the implementation of financial transparency by investors under its management scope.

5. Handling violations:

5.1. Violations of the laws on financial transparency include the following actions:

- Failing to fully publicize the required content, form, and time.

- Publicizing false data.

- Publicizing data that are classified as state secrets according to the law.

- Failure to report or reporting late, inaccurately, or falsely.

5.2. Organizations, units, and individuals who violate the law will be disciplined according to the nature and severity of the violation as prescribed by the law on disciplinary measures and material responsibility of civil servants; administrative penalties for violations related to reporting and financial transparency shall be imposed according to Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government on administrative penalties in the field of accounting, Circular No. 120/2004/TT-BTC dated December 15, 2004 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government, and other relevant regulatory legal documents; or may be criminally prosecuted according to the law.

III. IMPLEMENTATION PROVISIONS

This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for research and amendment./.