Decision No. 1163/TC-QLCS promulgates the "Regulation on the Handling of Unnecessary and Non-functional Assets in Administrative and Public Service Agencies"

Pursuant to …;

Issuing the "Regulation on the Handling of Unnecessary and Non-Usable Assets in Administrative and Public Service Agencies"

___________________________

THE MINISTER OF FINANCE

Pursuant to the State Budget Law adopted by the National Assembly of the Socialist Republic of Vietnam at its 9th session, 9th meeting on March 20, 1996;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

Pursuant to the Government Decree No. 178/CP dated October 25, 1994 on tasks, powers, and organizational structure of financial bodies;

To prevent loss and arbitrary handling of state assets when they are unnecessary and non-usable in administrative and public service agencies; to strengthen state management over public assets,

Pursuant to …;

Article 1. - This Decision promulgates the "Regulation on the Handling of Unnecessary and Non-Usable Assets in Administrative and Public Service Agencies" attached hereto.

Article 2.- This Regulation applies to all state assets assigned to state management agencies, public service units, defense and security agencies, political organizations, political-social organizations, social organizations, social-professional organizations (collectively referred to as administrative and public service agencies) when they are unnecessary and non-usable.

Article 3.- This Decision shall be uniformly implemented throughout the country and takes effect from the date of issuance.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, administrative and public service agencies; financial system units are responsible for implementing this Decision.

The Heads of the Asset Management Bureau and the Provincial Departments of Finance and Prices of centrally governed cities are responsible for assisting the Minister of Finance, Chairpersons of People's Committees of provinces and centrally governed cities in organizing guidance and inspection in accordance with the provisions of this Decision./.

REGULATIONS

Handling of unnecessary and non-usable assets in

administrative and public service agencies

(Issued together with Decision No.: 1163 TC/QLCS dated December 21, 1996 of the Minister of Finance)

Chapter I GENERAL PROVISIONS

Article 1. - Unnecessary assets and non-usable assets under this Regulation are understood as follows:

1. Unnecessary assets are those that are still new or have been used but are surplus to requirements and tasks assigned, which the agency or unit directly managing and using does not need and has no demand to use.

2. Non-usable assets are those that are old and worn out or damaged beyond repair, or the cost of repair is too high, thus making them unusable to serve the requirements and tasks of the agency or unit.

Article 2. - Unnecessary and non-usable assets as stipulated in Article 1 of this Regulation include fixed assets such as buildings and land belonging to office premises, means of transportation, equipment serving work needs, formed from state budget funds or having a state budget origin, and state-owned assets assigned by the state to state management agencies, public service units, defense and security agencies, political organizations, political-social organizations, social organizations, social-professional organizations, diplomatic agencies of the Socialist Republic of Vietnam (collectively referred to as administrative and public service agencies) for management and use.

Article 3. - During the process of managing and using assets transferred by the State, when there are assets that are not needed and no longer usable as stipulated in Article 2 of this Regulation, the heads of administrative and public service units shall prepare reports to submit to the higher-level management agency that directly allocates funds to the unit for consolidation and submission of a report to the same-level financial authority according to the attached report form in this Regulation.

The financial authority has the responsibility to respond in writing to the proposal or make a decision on handling in accordance with the prescribed authority in this Regulation.

Article 4. - The disposal of assets that are not needed and no longer usable shall be carried out in the following forms:

- Transfer to other administrative and public service units that have a need to use such assets (priority within the same entity: Ministry, sector, locality) for assets that are not needed; - Sell and deposit the proceeds into the State budget; - Liquidate those assets that cannot be transferred or sold to other units and economic organizations.

Article 2. - This Regulation applies to all State assets transferred to State management agencies, public service units, national defense and security agencies, political organizations, political-social organizations, social organizations, and social-professional organizations (collectively referred to as administrative and public service units) when they are no longer needed or no longer usable.

Chapter II ASSET TRANSFER

Article 5. - For unused real estate assets including buildings and land belonging to the headquarters of central administrative and public service units that need to be transferred to local administrative and public service units or other administrative and public service units outside the sector and non-administrative and public service organizations, the heads of Ministries, sectors, central political organizations, political-social organizations, and social-professional organizations shall prepare reports to the Ministry of Finance for the Ministry of Finance to review and submit to the Prime Minister for decision.

For movable assets such as cars, ships, transportation means, machinery, and equipment serving the work needs of central administrative and public service units that require transferring these assets to local administrative and public service units or other administrative and public service units outside the sector and other organizations outside the administrative and public service area, the heads of Ministries, sectors, central political organizations, political-social organizations, and social-professional organizations shall prepare reports to the Minister of Finance for review and decision.

Article 6. - The Chairpersons of People's Committees of provinces and centrally governed cities shall decide on the transfer of unused and no longer usable assets such as buildings, land, cars, and ships of administrative and public service units directly managed by the locality based on the proposal of the Director of the Department of Finance and Price Control.

The Director of the Department of Finance and Price Control decides on the transfer of other assets not specified above.

Article 7. - The heads of Ministries, sectors, central political organizations, political-social organizations, and social-professional organizations shall decide on the transfer of real estate, vehicles, transportation means, machinery, and working equipment between administrative and public service units within their own entities in accordance with the asset usage regulations and standards set by authorized State agencies after obtaining the agreement in writing from the Ministry of Finance.

Article 8. - After receiving the decision on asset reallocation, the parties authorized shall cooperate with relevant agencies to implement the asset reallocation decision in accordance with the guidance provided in Circular No. 43 TC/QLCS dated July 31, 1996, issued by the Ministry of Finance on the procedures for receiving and transferring assets between agencies under the State Administrative System and economic organizations based on decisions by competent authorities.

Article 3. - This Decision shall be uniformly applied throughout the country and shall take effect from the date of signing.

The Ministers of Ministries, heads of agencies at the ministerial level, agencies under the Government, Chairmen of People's Committees of provinces and centrally-run cities, administrative agencies and public service units; financial system units shall be responsible for implementing this Decision. The Heads of the Asset Management Agency and Directors of Provincial Departments of Finance and Prices of centrally-run cities shall assist the Minister of Finance and Chairmen of People's Committees of provinces and centrally-run cities in organizing guidance and inspection in accordance with the provisions of this Decision. The Minister ISSUES THE REGULATION on handling assets not needed and no longer usable in administrative agencies and public service units (Annexed to Decision No.: 1163 TC/QLCS dated December 21, 1996 of the Minister of Finance).

Chapter III SALE AND LIQUIDATION OF ASSETS

Article 9. - Vehicles, ships, other means of transportation, machinery and equipment serving the operational needs of administrative agencies and public service units, old and dilapidated buildings that are no longer usable or transferable must be sold or liquidated promptly to recover funds to be deposited into the State Budget.

Article 10. - Procedures and authority to decide on sale and liquidation of assets:

1. Heads of administrative agencies and units with assets to be sold or liquidated shall prepare reports to submit to the higher-level management agency directly providing budgetary funding for the unit for consolidation and submission to the finance department at the same level.

2. The finance department shall base its decision on the reports from administrative agencies requesting the sale or liquidation of assets, organize inspections of the quantity and value of the assets according to their original cost and residual value to decide on liquidation or sale according to the following principles: - For assets not needed or no longer usable as stipulated in Article 9 of this Regulation at central-level administrative agencies, only liquidation or sale and reduction of asset values may be permitted upon written approval by the Ministry of Finance. - For assets not needed or no longer usable as stipulated in Article 9 of this Regulation at local-level administrative agencies, only liquidation or sale and reduction of asset values may be permitted upon a decision to sell or liquidate by the Chairman of the People's Committee of the province or centrally-run city.

Article 11. - Organization of liquidation or sale of assets:

1. The finance department shall be responsible for coordinating with the administrative agency having assets to be sold or liquidated to organize the implementation or guide authorized units to carry out the sale or liquidation of assets according to the decision or approval document as follows:

a) The Ministry of Finance shall coordinate with central-level administrative agencies or authorize central-level administrative agencies to sell or liquidate unused assets and assets no longer usable managed by the central government.

b) The Department of Finance and Prices shall coordinate with local-level administrative agencies to sell or liquidate unused assets and assets no longer usable managed by local governments.

2. The liquidation or sale of state assets shall be carried out as follows:

a) Establish a committee for the liquidation or sale of state assets.

b) The committee for the sale or liquidation of state assets shall base its actions on the original cost and residual value of the assets recorded in accounting books to reduce the asset and its value, and shall base the selling price and choose the form of sale for the asset being sold according to market value of similar assets, in accordance with the prescribed regulations.

Article 12. - After completing the sale or liquidation of assets, the units directly managing and using the sold or liquidated assets shall record a reduction in the asset and the value of the unit's assets according to the quantity and value recorded in the accounting books at the time of sale or liquidation of the assets.

Article 13. - The entire proceeds from the sale or liquidation of assets, after deducting expenses for the sale or liquidation of assets in accordance with the current financial expenditure regulations, must be fully remitted to the State Budget.

Chapter IV FINAL PROVISIONS

Article 14. - State agencies entrusted by the State to manage and use assets, and agencies responsible for handling assets that are not needed and no longer usable, if they fail to comply with the provisions of this Regulation, or cause damage, loss, or depletion of assets, shall be liable for material compensation and will be subject to legal sanctions according to the current laws depending on the extent of the violation.

THE MINISTER

(Signed)

Nguyen Sinh Hung