Joint Circular No. 10/2008/TTLT/BTC-BGTVT guiding the management, settlement, and finalization of economic public service funds for road management and maintenance work.

JOINT CIRCULAR

GUIDELINES ON THE MANAGEMENT, SETTLEMENT, AND FINAL ACCOUNTING

OF OPERATING EXPENSES FOR ECONOMIC SERVICES IN ROAD MANAGEMENT AND MAINTENANCE

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

Pursuant to Decree No. 168/2003/NĐ-CP dated December 24, 2003 of the Government on sources of finance and management and utilization of financial resources for road management and maintenance;

Pursuant to Decree No. 186/2004/NĐ-CP dated November 5, 2004 of the Government on management and protection of road infrastructure;

The Ministry of Finance and the Ministry of Transport hereby issue guidelines on the management, settlement, and final accounting of operating expenses for economic services in road management and maintenance guaranteed by the state budget, as follows:

I. GENERAL PROVISIONS

1. Operating expenses for economic services in road management and maintenance guaranteed by the state budget include: annual state budget allocation (domestic and foreign funds); revenue from road usage fees returned according to regulations, managed through the state budget.

2. Operating expenses for economic services in national highway management and maintenance are guaranteed by the central government budget; operating expenses for local road management and maintenance are guaranteed by the local government budget.

3. Annual operating expenses for economic services in road management and maintenance shall be managed, settled, and finalized according to the provisions of the State Budget Law, guiding documents for the State Budget Law, and the provisions of this Circular.

II. SPECIFIC PROVISIONS

1. Contents of expenditures for operating expenses for economic services in road management and maintenance:

1.1. Road maintenance expenditures:

a. Expenditures for regular maintenance of roads;

b. Expenditures for periodic repairs (medium and major repairs) of roads;

c. Expenditures for emergency repairs of roads, remedying consequences of natural disasters, or other causes to ensure traffic.

1.2. Expenditures for management and traffic service activities:

a. Expenditures for monitoring technical conditions and managing road construction projects; expenditures for traffic safety management; expenditures for inspecting the protection of road infrastructure; expenditures for management work and clearance of traffic safety zones;

b. Expenditures for the operation of the Road Management Zone Office, including: expenditures based on staffing levels allocated, special activity expenditures, and non-recurring expenditures (purchase and repair of equipment, vehicles, office premises);

c. Expenditures for the operation of vehicle weight inspection stations, including: regular operational costs, non-recurring expenditures (purchase and repair of equipment, station buildings);

d. Expenditures to subsidize operations of ferry terminals and pontoon bridges when revenues are insufficient to cover expenditures;

đ. Expenditures for purchasing equipment and major repairs of toll collection stations for road usage (as stipulated in Circular No. 90/2004/TT-BTC dated September 7, 2004 of the Ministry of Finance guiding the collection, payment, management, and use of road usage fees);

e. Expenditures for relocating toll collection stations for road usage and vehicle weight inspection stations according to approved projects by competent authorities from road usage fee revenues; including: construction costs for new stations, dismantling of old stations, transportation and installation of equipment at new stations.

g. Expenditures for repairing road management offices and other expenditures (if any).

2. Preparation, execution of budgets, and final accounting of operating expenses for economic services in road management and maintenance:

The preparation, execution of budgets, and final accounting of annual operating expenses for economic services in road management and maintenance shall be carried out according to the State Budget Law and guiding documents; this Circular provides additional guidance on certain points as follows:

2.1. Budget preparation:

a. For national highways:

Annually, based on the state budget expenditure estimates announced by the Ministry of Finance; the Ministry of Transport announces these estimates to the Vietnam Highway Administration, which then allocates them to the Road Management Zones and Provincial Departments of Transport (collectively referred to as Provincial Departments of Transport) for national highways delegated by the Ministry of Transport to local management and maintenance (collectively referred to as delegated management highways).

Based on the condition of bridges and roads; economic and technical standards; expenditure contents specified in Clause 1, Section II of this Circular; approved unit prices and expenditure standards; current financial expenditure regulations; and the allocated estimates from the Vietnam Highway Administration, the Road Management Zones and Provincial Departments of Transport (for delegated management highways) prepare detailed road management and maintenance budgets, submit them to the Vietnam Highway Administration for review and consolidation, and report to the Ministry of Transport for review and consolidation, then submit to the Ministry of Finance as required.

b. For local roads:

Annually, based on the state budget expenditure estimates allocated by competent authorities; the condition of bridges and roads; economic and technical standards; expenditure contents specified in Clause 1, Section II of this Circular; approved unit prices and expenditure standards; current financial expenditure regulations; local transport departments prepare detailed road management and maintenance budgets, submit them to the same-level finance departments as required.

The preparation of road management and maintenance budgets as stipulated in Subparagraph a and b of Point 2.1, Clause 2, Section II above must be accompanied by detailed explanations. For periodic repair expenditures and relocation station expenditures, detailed breakdowns must be provided for each project linked to specific road sections, routes, quantities, funding, implementation periods, and completion times.

2.2. Execution of budgets:

2.2.1. Allocation of allocated state budget expenditures:

a. For national highways:

BASED on the state budget expenditure estimate for the year assigned by the competent authority; based on the notification number from the Ministry of Transport; based on the road management and maintenance plan assigned by the competent authority; the Vietnam Highway Administration establishes a plan to allocate the state budget expenditure estimate to the Road Management Zones, Provincial Departments of Transport (for delegated managed roads); detailed according to the expenditure items specified in Clause 1, Section II of this Circular, detailed by section of road, route, volume and cost (excluding projects to restore traffic during the first phase after typhoons and floods); for projects with construction time exceeding one year, annual budget allocation must be ensured according to the approved volume and construction time in the investment decision; no budget allocation shall be made for volumes already implemented outside the previous year's assigned plan. For emergency repair volumes to address natural disasters, weak bridges, black spots, and other objective reasons approved by the competent authority, the budget estimate must be allocated within the planning year for implementation. The Vietnam Highway Administration reports the state budget expenditure allocation plan to the Ministry of Transport for review, consolidation, and submission to the Ministry of Finance for examination in accordance with regulations.

After reaching a consensus with the Ministry of Finance regarding the state budget expenditure allocation plan, the Ministry of Transport assigns the state budget expenditure estimate to the Vietnam Highway Administration, which then allocates it to the Road Management Zones, Provincial Departments of Transport (for delegated managed roads); simultaneously sending it to the Ministry of Transport, the Ministry of Finance, the State Treasury, and the State Treasury where the account is opened for coordination in implementation.

b. For local roads:

BASED on the state budget expenditure estimate for the year assigned by the competent authority, local transport authorities establish a plan to allocate the state budget expenditure estimate for road management and maintenance; detailed according to the expenditure items specified in Clause 1, Section II of this Circular; detailed by section of road, route, volume and cost (excluding projects to restore traffic during the first phase after typhoons and floods); for projects with construction time exceeding one year, annual budget allocation must be ensured according to the approved volume and construction time in the investment decision; no budget allocation shall be made for volumes already implemented outside the previous year's assigned plan. For emergency repair volumes to address natural disasters, weak bridges, black spots, and other objective reasons approved by the competent authority, the budget estimate must be allocated within the planning year for implementation. The transport authority sends the state budget expenditure allocation plan to the finance authority at the same level for examination in accordance with regulations.

After reaching a consensus with the finance authority at the same level regarding the state budget expenditure allocation plan, the transport authority assigns the state budget expenditure estimate to subordinate budget-using units for implementation; simultaneously sending it to the finance authority, the State Treasury where the account is opened for coordination in implementation.

c. BASED on the road management and maintenance expenditure estimate assigned by the competent authority, the Road Management Zones, Provincial Departments of Transport (for delegated managed roads); local transport authorities (for local roads) implement tendering, ordering, and assigning road management and maintenance volumes according to current regulations.

For expenditure tasks with investment characteristics, they are carried out according to the capital investment management process such as: relocating toll stations for national highways, vehicle weight inspection stations; major repairs of highway works, toll stations, vehicle weight inspection stations, Regional Highway Management Office offices, district highway management offices, and other expenditure tasks.

2.2.2. Advance payment and settlement of economic service expenses for road management and maintenance:

a. For national highways:

- For management and maintenance costs of national highways allocated from the state budget estimate: BASED on the state budget expenditure estimate assigned, the Road Management Zones, Provincial Departments of Transport (for delegated managed roads) withdraw the budget estimate from the State Treasury where transactions are conducted for advance payment and settlement to the units managing and maintaining national highways in accordance with regulations.

- For management and maintenance costs of national highways allocated from the road usage fee revenue returned to the central budget: BASED on the road usage fee expenditure estimate assigned, the Road Management Zones, Provincial Departments of Transport (for delegated managed roads) withdraw the budget estimate from the State Treasury where transactions are conducted for advance payment and settlement to the units managing and maintaining national highways in accordance with regulations.

Before January 15 of the following year, the Vietnam Highway Administration reports the actual road usage fee revenue collected and submitted to the central budget up to December 31 of the previous year (confirmed by the State Treasury); if the actual road usage fee revenue submitted to the central budget exceeds the assigned expenditure estimate, the additional revenue will be added to the next year's road management and maintenance expenditure estimate; if the actual road usage fee revenue submitted to the central budget is lower than the assigned expenditure estimate, the reduced revenue will be deducted from the next year's road management and maintenance expenditure estimate.

b. For local roads:

- For management and maintenance costs of local roads allocated from the state budget estimate: BASED on the assigned state budget, local transport authorities withdraw the budget estimate from the State Treasury where transactions are conducted for advance payment and settlement to the units managing and maintaining local roads in accordance with regulations.

- For management and maintenance costs of local roads from the road usage fee revenue returned to the local budget: BASED on the actual situation of the locality, the local finance authority coordinates with the transport authority to specify the distribution method appropriately.

c. BASIS for the State Treasury to make payments:

- Included in the approved project list and budget estimate;

- With road management and maintenance funds notified.

- The decision approving the tender results, ordering, and allocating plans by the competent authority as prescribed;

- Economic contracts for managing and maintaining national roads;

- Quantity and quality acceptance certificates; payment volume statements; project price vouchers;

- Payment authorization orders signed by the head of the unit that entered into the contract, along with legal supporting documents as prescribed;

d. State Treasury control over expenditures:

The State Treasury at the transaction location shall check based on the aforementioned grounds and implement expenditure control before advance payments and settlements upon the request of the head of the state budget using unit, specifically:

- For regular management and maintenance road expenditures, including medium repairs: The State Treasury shall implement expenditure control according to Circular No. 79/2003/TT-BTC dated August 13, 2003, issued by the Ministry of Finance, guiding the management, issuance, and settlement of state budget expenditures through the State Treasury. In cases where work has not been completed, the maximum advance payment shall not exceed 60% of the budget estimate or the value of the economic contract for managing and maintaining national roads.

- For investment-related tasks carried out according to capital investment management procedures such as relocating toll stations, overload inspection stations; major repairs of road projects, toll stations, overload inspection stations, offices of road management zones, road management houses, and other tasks, the State Treasury shall implement expenditure control according to Circular No. 27/2007/TT-BTC dated April 3, 2007, issued by the Ministry of Finance, guiding the management and settlement of investment and operational funds with investment characteristics from state budget sources, and Circular No. 130/2007/TT-BTC dated November 2, 2007, issued by the Ministry of Finance, amending and supplementing certain points of Circular No. 27/2007/TT-BTC dated April 3, 2007, issued by the Ministry of Finance, guiding the management and settlement of investment and operational funds with investment characteristics from state budget sources.

2.3. Settlement of economic public service expenses for managing and maintaining national roads:

a. Final settlement report.

Units allocated the budget for economic public service expenses for managing and maintaining national roads shall prepare final settlement reports in accordance with the prescribed forms and deadlines set forth in the State Budget Law and related guidance documents.

The final settlement report shall be accompanied by a list of projects assigned a plan for the year, requesting detailed settlement according to the expenditure items specified in Clause 1, Section II of this Circular (Attached with the model form of the report).

b. Review and audit of the final settlement report.

The review and audit of annual final settlement reports for economic public service expenses for managing and maintaining national roads shall be conducted in accordance with Circular No. 01/2007/TT-BTC dated January 2, 2007, issued by the Ministry of Finance, guiding the review, audit, and notification of annual settlements for administrative agencies, public service units, organizations supported by the state budget, and budgets at all levels, specifically:

- For national highways: The Vietnam Road Administration shall be responsible for reviewing the annual final settlement reports of the Road Management Zones and Provincial Departments of Transport (for delegated management); the Ministry of Transport shall be responsible for auditing the annual final settlement reports of the Vietnam Road Administration; the Ministry of Finance shall be responsible for auditing the annual final settlement reports of the Ministry of Transport as prescribed.

- For local roads: The transport authorities shall be responsible for reviewing the annual final settlement reports of subordinate units; the finance authorities shall be responsible for auditing the annual final settlement reports of the transport authorities as prescribed.

- Specifically, for investment-related tasks carried out according to capital investment management procedures such as relocating toll stations, overload inspection stations; major repairs of road projects, toll stations, overload inspection stations, offices of road management zones, road management houses, and other tasks, in addition to annual final settlement according to Circular No. 01/2007/TT-BTC dated January 2, 2007, issued by the Ministry of Finance, when the project is completed and handed over for use, a final settlement of the completed project must be conducted according to Circular No. 33/2007/TT-BTC dated September 4, 2007, issued by the Ministry of Finance, guiding the final settlement of completed projects funded by the state; if the final settlement of the completed project approved by the competent authority differs from the total value settled annually, the difference shall be adjusted into the final settlement of the year corresponding to the approval of the final settlement of the completed project.

3. Inspection activities:

To ensure the proper and effective use of economic public service expenses for managing and maintaining national roads, the Ministry of Transport, the Vietnam Road Administration, and local transport authorities shall coordinate with their respective financial authorities to periodically and randomly inspect the management, use, settlement, and final settlement of economic public service expenses for managing and maintaining national roads at subordinate units.

Expenditures for managing and maintaining national roads exceeding the standard, being improperly disbursed, or not conforming to the expenditure items stipulated in this Joint Circular must be recovered and returned to the state budget; simultaneously, the person who ordered the improper disbursement must compensate the public fund and bear legal responsibility.

III. IMPLEMENTATION

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall revoke Circular Joint No. 01/2001/TTLT/BTC-BGTVT dated January 5, 2001, issued by the Ministry of Finance and the Ministry of Transport, guiding the management, issuance, and final settlement of economic public service expenses for road repair.

During implementation, any issues should be reported to the Ministry of Finance and the Ministry of Transport for prompt resolution.