Circular No. 108/2016/TT-BTC Amending and Supplementing Certain Articles of Circular No. 08/2016/TT-BTC dated January 18, 2016 of the Ministry of Finance on the management and settlement of investment capital using state budget funds.

CIRCULAR

AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE CIRCULAR NO. 08/2016/TT-BTC DATED JANUARY 18, 2016 OF THE MINISTRY OF FINANCE ON MANAGEMENT AND PAYMENT OF CAPITAL FOR INVESTMENT USING STATE BUDGET FUNDS

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

Pursuant to the Public Investment Law No. 49/2014/QH13 dated June 18, 2014;

Pursuant to the Construction Law No. 50/2014/QH13 dated June 18, 2014;

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 Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on management of investment cost;

Pursuant to Decree No. 37/2015/NĐ-CP dated April 22, 2015 of the Government detailing regulations on construction contracts;

Pursuant to the Government Decree No. 59/2015/NĐ-CP dated June 18, 2015 on project management for investment in construction;

Pursuant to Decree No. 77/2015/NĐ-CP dated September 10, 2015 of the Government on medium-term and annual public investment plans;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Investment Department;

The Minister of Finance promulgates this Circular amending and supplementing certain provisions of Circular No. 08/2016/TT-BTC dated January 18, 2016 of the Ministry of Finance on management and payment of capital for investment using state budget funds (hereinafter referred to as Circular No. 08/2016/TT-BTC).

Article 1. Amending and supplementing certain Articles of Circular No.

1. Article 4 of Circular No. 08/2016/TT-BTC shall be amended and supplemented as follows:

"Article 4. Capital investment allocation inspection:

1. Content for allocation to implement the inclusion of investment capital plan in the financial management information system and Treasury (TABMIS):

a) Projects that meet all conditions prescribed in the Law on Public Investment and Decree No. Government Decree No. 77/2015/NĐ-CP dated September 10, 2015 of the Government on Plan medium-term and annual public investment.

b) Ministries and of the National Assembly; local levels allocate detailed investment capital for each project according to the project code and economic sector (type, item) as specified in Appendix No. 02 issued pursuant to Decision No. 33/2008/QĐ-BTC dated June 2, 2008 of the Minister of Finance on the System of State Budget Classification; Circular No. 110/2012/TT-BTC of the Ministry of Finance amending and supplementing certain provisions of Decision No. 33/2008/QĐ-BTC dated June 2, 2008 of the Minister of Finance on the System of State Budget Classification and Circular No. 147/2013/TT-BTC dated October 23, 2013 of the Ministry of Finance prescribing amendments and supplements to the System of State Budget Classification. Decision No. c) Detailed allocation and assignment of investment capital plans for projects must be completed before December 31 of the year preceding the planning year. In case of assignment of the plan, within ten working days from the date of assignment of the plan,

ministries and MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND lower-level authorities must complete the detailed allocation and assignment MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUNDin accordance with the regulations. Simultaneously with the above-mentioned investment capital allocation, ministries and of the National Assembly; local levels assign detailed investment capital targets to project sponsors for implementation. of the annual internal audit plan, audit decision d) After allocating investment capital plans, ministries and of the National Assembly; provincial levels send investment capital plans to the Ministry of Finance;

local levels send detailed investment capital allocations to the Department of Finance, Provincial Financial Planning and Budget Office. of the National Assembly; (Allocation plan form attached as Appendix No. 01 to Circular No. 08/2016/TT-BTC) central cities e) Ministries, finance agencies, and State Treasuries are responsible for entering investment capital plans into the financial management information system and Treasury (TABMIS) in accordance with the guidance provided in Circular No. 123/2014/TT-BTC dated August 27, 2014 of the Ministry of Finance on organizing operation and exploitation of the Financial Management Information System and Treasury (TABMIS). of the National Assembly; 2. Allocation inspection:

After receiving investment capital allocation plans from ministries and

local levels, finance agencies shall inspect the allocation of investment capital in accordance with the provisions of the Law on State Budget and guiding documents.”

2. Clause 1, Clause 2, Article 7 of Circular No. 08/2016/TT-BTC shall be amended and supplemented as follows:

“1. For preparatory investment projects: of the National Assembly; a) Decision approving the preliminary investment budget by the competent authority along with the preliminary investment cost estimate;

b) Decision approving the tender result in accordance with the Law on Bidding;

c) Contract between the project sponsor and the contractor.

2. For ongoing investment projects:

a) Investment decision by the competent authority, project adjustment decisions (if any), along with the construction project report (or economic-technical report for projects only preparing such reports);

b) Decision approving the tender result in accordance with the Law on Bidding; In particular, for self-execution cases: authorization document from the competent authority allowing self-execution of the project (not included in the investment decision of the competent authority);

c) Contract between the project sponsor and the contractor or supplier, and related documents such as: contract appendices, specific terms, general terms concerning advance payments, contract payments, supplementary contracts, adjustments (if any); In particular, for self-execution cases: work assignment document or

internal assignment;

d) Budget estimates and approval decisions by the competent authority for each work, sub-item, and item of the project forNot deposited into temporary account direct award or self-execution and works carried out without a contract (except for projects only preparing economic-technical reports); In particular, resettlement activities must be accompanied by a resettlement plan approved by the competent authority.”

3. Point b, Clause 1, Article 9 of Circular No. 08/2016/TT-BTC shall be amended and supplemented as follows: transfer of enterprise ownership form or restructuring of enterprises. “b) Payment documents: transfer of enterprise ownership form or restructuring of enterprises. When the completed volume is accepted according to the payment phase and conditions intransfer , the project sponsor prepares a payment request sent to the State Treasury, including:

- A table determining the value of the completed work volume for payment, confirmed by representatives of both the contracting party and the contractor (Appendix No. 03.a attached to Circular No. 08/2016/TT-BTC). Not deposited into temporary account When there are volumes outside the contract, the project sponsor sends a table determining the value of the additional volume for payment, confirmed by representatives of both the contracting party and the contractor (Appendix No. 04 attached to Circular No. 08/2016/TT-BTC). approving remediation and environmental recovery plans or remediation and environmental recovery plans - Payment request for investment capital - Appendix No. 05 attached to Circular No. 08/2016/TT-BTC.

- Bank transfer voucher issued in accordance with the accounting voucher system of the Ministry of Finance.”

"b) Payment file:

When there is a quantity of work completed and accepted according to the payment phase and the Payment Conditions in transfer of enterprise ownership form or restructuring of enterprises., the project owner shall prepare a payment request file to send to the State Treasury, including:

- A table determining the value of the completed work volume for payment as proposed, with confirmation from the representative of the contracting party and the representative of the contractor (Annex No. 03.a attached to Circular No. 08/2016/TT-BTC).

When there is a quantity outside the contract, the project owner shall submit a table determining the value of the work volume outside the scope of the contract for payment as proposed, with confirmation from the representative of the contracting party and the representative of the contractor (Annex No. 04 attached to Circular No. 08/2016/TT-BTC).

- A payment request form for investment capital - Annex No. 05 attached to Circular No. 08/2016/TT-BTC.

- Payment transfer documents issued in accordance with the accounting document system of the Ministry of Finance."

Article 2. Repeal Article and amend wording in Circular No. 08/2016/TT-BTC.

1. Repeal Article 3 of Circular No. 08/2016/TT-BTC.

2. Amend the name of Section I of Chapter II as follows: "Section I. Investment Capital Allocation Inspection".

Article 3. Effectiveness and Implementation

1. This Circular takes effect from July 1, 2016.

2. During implementation, in case of any difficulties, units are requested to promptly reflect them for the Ministry of Finance to study and make appropriate amendments and supplements.