Circular No. 108/2021/TT-BTC on the management and use of revenues from consulting and project management activities of investors and project management boards using public investment funds

CIRCULAR

REGULATIONS ON THE MANAGEMENT AND USE OF REVENUES FROM CONSULTING AND PROJECT MANAGEMENT ACTIVITIES OF INVESTORS AND PROJECT MANAGEMENT UNITS USING PUBLIC INVESTMENT FUNDS

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 99/2021/NĐ-CP dated November 11, 2021 of the Government on management, payment, and settlement of projects using state capital;

Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government stipulating the assignment of tasks, ordering goods or services, or tendering for the provision of public products and services using state budget funds from regular expenditure;

Pursuant to Decree No. 15/2021/ND-CP dated March 3, 2021 of the Government detailing certain contents regarding project management of investment construction;

Pursuant to Decree No. 10/2021/NĐ-CP dated February 9, 2021 of the Government on the management of construction investment costs;

Pursuant to Decree No. 40/2020/NĐ-CP dated April 6, 2020 of the Government detailing implementation of certain provisions of the Public Investment Law;

Pursuant to Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in application of information technology using state budget funds;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the 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 on the management and use of revenues from consulting and project management activities of investors and project management units (PMUs) using public investment funds.

Article 1. Scope of Regulation and Applicability

2. Applicability:

a) This Circular regulates the management and use of revenues from consulting and project management activities of public investment projects of investors and PMUs.

b) The management and use of revenues and expenditures of non-public investment projects of investors and PMUs are not within the scope of regulation of this Circular.

2. Scope of Application: Investors, PMUs established by investors, specialized PMUs, regional PMUs using public investment funds established in accordance with Government Decrees and organizations and individuals related to the management and use of revenues from consulting and project management activities using public investment funds.

3. Investors, PMUs managing projects funded by official development assistance (ODA) and concessional loans from donors: Shall manage and use revenues from consulting and project management activities in accordance with international agreements, agreements with donors regarding ODA and concessional loans already signed and current laws on the management and use of ODA and concessional loans. In cases where there are no provisions in international agreements, agreements with donors, or current laws on the management and use of ODA and concessional loans, they shall implement according to the provisions of this Circular.

Article 2. Revenues

1. Revenues from project management costs of assigned projects.

2. Revenues from consulting activities of assigned projects.

3. Revenues from consulting and project management activities for other projects outside the assigned projects (as per contract).

4. Other lawful revenues as prescribed by law (if any).

Article 3. Use of Revenues

1. Investors, PMUs established by investors (excluding specialized PMUs and regional PMUs): Shall implement financial mechanisms as prescribed for units assigned the role of investor. If necessary, the investor may approve separately the revenue and expenditure budget for project management costs to be implemented.

Based on the content, volume of work, responsibilities between the investor and the PMU, the investor decides the ratio of distribution of project management revenue between the investor and the PMU (if applicable). The ratio of distribution of project management revenue must be recorded in the decision to establish the PMU or the document assigning tasks to the PMU by the investor.

2. Specialized PMUs, regional PMUs: Shall use revenues as stipulated in Article 2 of this Circular in accordance with Decree No. 60/2021/NĐ-CP dated June 21, 2021 of the Government on the self-financing mechanism of public service units and guiding documents.

3. For revenues not included in the project investment cost: Investors, PMUs must register, declare, and fully pay all types of taxes, fees, and charges as prescribed by current laws on taxes, fees, and charges.

4. Annually, investors, PMUs base on the time frame for implementing the project, the organizational form of project management, scale and characteristics of project management work, relevant policies to determine project management costs for each project in line with the volume of management tasks and work for the year and bear responsibility for this content. Investors, PMUs have the responsibility to ensure sufficient project management costs to organize and implement project management until the project is approved for final settlement of investment capital in accordance with regulations.

5. Allocation of annual project management costs:

In cases where investors, PMUs directly manage two or more projects, annually investors, PMUs allocate costs to the managed projects, submit to higher-level management authorities according to the principle:

a) Costs determined to be allocated to a specific project: Directly allocate to that project.

b) Costs not determinable for allocation to a specific project: Allocate based on the proportion of costs corresponding to the value of the volume of management tasks and work of the project for the year.

6. Settlement:

a) For investors, PMUs managing one project: When the managed project is completed, investors, PMUs prepare a report on the settlement of project management costs along with expense vouchers and project completion investment capital settlement documents to submit to the leading authority for settlement review. The leading authority for settlement review examines expense vouchers ensuring legality and compliance with regulations for administrative agencies and public service units to report to the authorized person to decide on approval of the general settlement of investment capital in the project completion investment capital settlement.

b) For investors, PMUs directly managing two or more projects: When each managed project is completed, the settled project management costs are the total of the values of annual settled project management costs already approved by higher-level management authorities (if any) of each project.

c) Project costs (project management costs, consulting costs, and other costs implemented by investors, PMUs) managed by investors, PMUs: Are settled at a maximum not exceeding the approved (or adjusted) value in the total investment ceiling (or budget estimate) of the project.

Article 4. Transaction Accounts

1. For revenues and expenditures from consulting and project management activities of public investment projects assigned to manage, fees according to laws on fees and charges, and other state budget revenues (if any) as prescribed by the State Budget Law, Public Debt Management Law, and related laws: The Project Investor and the Project Management Board shall open accounts at the National Treasury Office where transactions are convenient for management.

2. For revenues from consulting and project management activities for other projects and other revenues not belonging to the assigned managed projects, funds established as prescribed: The Project Management Board may open deposit accounts at the National Treasury Office or commercial banks to manage these revenues and expenditures.

3. In cases where the Project Investor and the Project Management Board have revenues from consulting and project management activities for other projects and other revenues not belonging to the assigned managed projects need to change transaction accounts, the Project Investor and the Project Management Board shall implement based on the provisions of this Circular.

Article 5. Responsibilities of Related Units

1. Project Investors, Directors of Project Management Boards: Shall be fully responsible for managing and using revenues from consulting and project management activities using public investment capital in accordance with the laws on state budget, public investment, and construction.

2. National Treasury: Shall monitor and settle the use of revenues from consulting and project management activities using public investment capital of Project Investors and Project Management Boards in accordance with the provisions of Government Decree No. 99/2021/NĐ-CP dated November 11, 2021 on the management, settlement, and finalization of public investment projects.

3. Ministries, central agencies, localities: Shall periodically or urgently inspect the management and use of revenues from consulting and project management activities using public investment capital of Project Investors and Project Management Boards within their jurisdiction.

Article 6. Transitional Provisions

1. Project Investors assigned by the investment decision maker, Project Management Boards established by Project Investors to invest in a single project, specialized Project Management Boards, regional Project Management Boards shall continue to implement according to the approved project management revenue and expenditure budget for 2021 until the end of the 2021 fiscal year and finalize the project management revenue and expenditure for 2021 in accordance with Circular No. 72/2017/TT-BTC dated July 17, 2017 of the Minister of Finance on the management and use of revenues from project management activities of Project Investors and Project Management Boards using state budget funds and Circular No. 06/2019/TT-BTC dated January 28, 2019 of the Minister of Finance amending and supplementing certain articles of Circular No. 72/2017/TT-BTC dated July 17, 2017 on the management and use of revenues from project management activities of Project Investors and Project Management Boards using state budget funds.

2. Handling residual funds:

a) For Project Investors assigned by the investment decision maker, Project Management Boards established by Project Investors to invest in a single project (excluding cases where the investment decision maker assigns specialized Project Management Boards, regional Project Management Boards as Project Investors):

For expenses in the approved budget for 2021 that were not implemented during the year or were partially implemented and must be transferred to 2022, the unit must determine and be responsible for the corresponding amount of unimplemented or partially implemented expenses to be transferred to 2022 for continued implementation and recorded specifically in the 2022 revenue and expenditure budget.

For savings up to January 31, 2021 that were not used: Return to the state budget and adjust the reduction of disbursed capital for each project accordingly.

b) For specialized Project Management Boards, regional Project Management Boards:

For regular activity expenses in the approved budget for 2021 that were not implemented during the year or were partially implemented and must be transferred to 2022, the unit must determine and be responsible for the corresponding amount of unimplemented or partially implemented expenses to be transferred to 2022 for continued implementation and recorded specifically in the 2022 revenue and expenditure budget.

For non-regular activity expenses: When adjusting groups of expense items, unspent or partially spent end-of-year expenses, follow the provisions of the State Budget Law and current guiding documents.

For residual funds in various funds: Follow the provisions of Government Decree No. 60/2021/NĐ-CP dated June 21, 2021 on the financial autonomy mechanism of public service units and guiding documents.

Article 7. Effective Date

1. This Circular takes effect from January 24, 2022 and abolishes the following Circulars:

a) Circular No. 72/2017/TT-BTC dated July 17, 2017 of the Minister of Finance on the management and use of revenues from project management activities of Project Investors and Project Management Boards using state budget funds.

b) Circular No. 06/2019/TT-BTC dated January 28, 2019 of the Minister of Finance amending and supplementing certain articles of Circular No. 72/2017/TT-BTC dated July 17, 2017 on the management and use of revenues from project management activities of Project Investors and Project Management Boards using state budget funds.

2. In cases where legal normative documents cited for application in this Circular are amended, supplemented, or replaced, they shall be applied according to the amended, supplemented, or replacing documents.

3. During the implementation process, in case of difficulties, units are requested to promptly reflect them to the Ministry of Finance for research and guidance or amendment and supplementation as appropriate./.