Circular No. 12/2011/TT-BNNPTNT guiding the procedures and formalities for investment from operational funds with investment characteristics and procurement of fixed assets annually at administrative agencies, public institutions, scientific and technological organizations, and project management boards under the Ministry of Agriculture and Rural Development.

CIRCULAR

Guidelines on the procedures and formalities for investment from operational funds with an investment nature and procurement, and annual asset management at administrative agencies, public institutions, scientific and technological organizations

and project management boards under the Ministry of Agriculture and Rural Development

and the Project Management Units under the Ministry of Agriculture and Rural Development

 _______________________________________

Pursuant to Decree No. 01/2008/ND-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development; Decree No. 75/2009/ND-CP dated June 10, 2009 amending Article 3 of Decree No. 01/2008/ND-CP dated January 3, 2008 of the Government;

Pursuant to Decree No. 12/2009/ND-CP dated February 12, 2009 of the Government on project management; Decree No. 83/2009/ND-CP dated October 15, 2009 of the Government amending and supplementing certain articles of Decree No. 12/2009/ND-CP dated February 12, 2009 of the Government;

Implementing Decision No. 293/QD-TTg dated February 5, 2013 on providing targeted support from the central budget for twenty-three districts with high poverty rates applying investment mechanisms and policies for infrastructure development according to the provisions of Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program to rapidly reduce poverty in 62 poor districts;

Pursuant to Decree No. 52/2009/ND-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Assets; Circular No. 245/2009/TT-BTC dated December 31, 2009 of the Ministry of Finance providing specific contents for the implementation of Decree No. 52/2009/ND-CP dated June 3, 2009 of the Government;

The Ministry of Agriculture and Rural Development provides guidelines on the procedures and formalities for investment from operational funds with an investment nature and procurement, and annual fixed asset management at administrative agencies, public institutions, scientific and technological organizations, and project management boards under the Ministry of Agriculture and Rural Development.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides guidelines on the procedures and formalities for investment from operational funds with an investment nature and procurement, and annual fixed asset management at administrative agencies, public institutions, scientific and technological organizations, and project management boards under the Ministry of Agriculture and Rural Development.

Article 2. Applicability

1. Administrative agencies, public institutions, scientific and technological organizations, programs and projects, and project management boards (collectively referred to as units) under the Ministry of Agriculture and Rural Development that implement investment from operational funds with an investment nature and procurement, and annual fixed asset management shall apply this Circular.

2. Project management boards may use project management expenses from investment sources to renovate, expand, upgrade existing facilities, procure, and manage fixed assets annually according to this Circular.

Article 3. Principles and Conditions for Investment from Operational Funds with an Investment Nature and Procurement of Fixed Assets

1. Investment from operational funds with an investment nature and procurement, and management of fixed assets must be based on standards and norms prescribed in current regulatory documents and ensure compliance with the Law on Thrift and Anti-Waste.

2. When implementing investment from operational funds with an investment nature and procurement, and management of fixed assets, the head of the unit must base it on the budget plan approved by the Ministry.

Article 4. Principles for Using Sources of Funds

1. Operational funds with an investment nature can only be used for the renovation and expansion of existing facilities (including the construction of new small-scale components within existing units according to approved master plans). Such funds cannot be used for new investment projects.

2. Funds for procurement of assets cannot be used for: Repairing, renovating, expanding office buildings, workshops, laboratories; and purchasing materials and equipment related to basic construction projects.

Chapter II

ESTABLISHMENT OF INVESTMENT PLANS AND FUNDS

Article 5. Establishment and Review of the Plan for Using Funds

1. Based on the annual budget estimate and other sources of funds, units shall establish a plan for using funds (including both state budget funds with investment characteristics and fixed asset purchases) to submit to the Ministry for approval, with the deadline for submission to the Ministry being before April 1st each year.

2. The authority to approve plans for using various sources of funds.

a) The General Director of the General Departments shall approve the plan for using funds for subordinate units within their respective General Departments.

b) The Director of the Finance Department shall approve the plan for using all sources of funds (excluding state budget funds for scientific research programs and national target programs in education and training).

c) The Science, Technology and Environment Department shall approve the source of state budget funds for scientific research.

d) The Organization and Cadre Department shall approve the source of state budget funds for national target programs in education and training.

Article 6. Sources of Funds for Investment and Purchase of State Assets Include:

1. For public service units and public science and technology organizations, they may use the following sources of funds to renovate, expand, upgrade existing facilities, and purchase assets, including:

a) State budget funds allocated and considered as part of the state budget;

b) Development funds for public service activities, welfare funds;

c) Assistance, sponsorship, gifts, donations, and project funds received according to the provisions of the law;

d) Revenue from selling and transferring assets of the unit permitted to be used according to the provisions of the law;

đ) Other revenues from the operation of public services that are allowed to be used;

e) Mobilized capital, joint ventures, and partnerships according to the provisions of the law.

2. For administrative agencies (excluding three administrative agencies such as the Plant Protection Bureau, the Animal Health Bureau, and the Quality Management Bureau of Agriculture, Forestry, and Aquatic Products which are implementing under Decree 43): use the sources of funds specified in point a, c of Clause 1 of this Article.

Chapter III

PROCEDURE FOR IMPLEMENTATION OF PUBLIC SERVICE FUNDS WITH INVESTMENT CHARACTERISTICS

WITH INVESTMENT NATURE

Article 7. Authority to Approve Investment Proposals

1. The Minister of Agriculture and Rural Development shall approve investment proposals and procedures for construction projects to renovate and expand existing facilities (including new construction of small-scale projects within existing units) with a total investment amount of 2 billion VND or more. The Minister delegates authority:

a) The General Directors of the General Departments shall approve investment proposals and procedures from public service funds with investment characteristics for units under their respective General Departments according to the approved plan.

b) The Director of the Finance Department shall approve investment proposals for all sources of investment funds (excluding public service funds for scientific research).

c) The Director of the Science, Technology and Environment Department shall approve investment proposals from public service funds for scientific research.

2. The Minister delegates authority to the Heads of administrative agencies and public service units under the Ministry to approve investment proposals for renovation and repair of project components (excluding changes to the main load-bearing structure of the project, expansion of existing facilities of the unit changing the approved master plan) with a total investment amount below 2 billion VND based on the annual approved plan for fund usage.

Article 8. Documents for Requesting Approval of Investment Proposals

1. A request for approval of an investment proposal.

2. A detailed explanation clearly stating the necessity of the investment.

3. The plan for using funds approved by the competent authority.

Article 9. Approval of Economic and Technical Reports of Construction Projects

1. Based on the annual budget allocation plan and the Decision approving the investment proposal from public service funds with investment characteristics, units shall prepare the Economic and Technical Report of the construction project (the content of the Economic and Technical Report for construction projects shall comply with the provisions of Clause 4, Article 35 of the Construction Law and Article 13 of Government Decree No. 12/2009/NĐ-CP dated February 12, 2009 on management of investment construction projects). The report shall be submitted to the Minister for approval.

2. For the sources of funds specified in points a, c, and d of Clause 1, Article 6 of this Circular, the Minister delegates authority:

a) The General Director shall approve the Economic and Technical Report of the construction project for subordinate units within their respective General Departments.

b) The Construction Management Bureau shall approve the Economic and Technical Report of the construction project with a total investment amount of 2 billion VND or more for agencies and units directly managed by the Ministry.

c) The Heads of units shall approve the Economic and Technical Report of the construction project for renovation and repair of project components (excluding changes to the main load-bearing structure of the project, expansion of existing facilities of the unit changing the approved master plan) with a total investment amount below 2 billion VND.

3. For the sources of funds specified in points b, đ, and e of Clause 1, Article 6 of this Circular, the Heads of units shall approve the Economic and Technical Report of the construction project according to the provisions based on the decision approving the investment proposal.

Article 10. Approval of tender plans

1. The tender plan shall be approved simultaneously with the approval of the economic and technical report of the construction project.

2. The head of the unit shall be responsible for approving the tender invitation documents; approving the results of the contractor selection; deciding on the handling of situations during the tendering process in accordance with regulations.

3. The head of the unit shall be responsible for reporting the results of implementation in writing to the Ministry (General Department, Department, Bureau related) within five working days after obtaining the results.

Article 11. Adjustment of the economic and technical report of the construction project

1. Time of adjustment: To be carried out within the fiscal year.

2. When adjusting the economic and technical report of the construction project leads to changes in location, scale, project objectives, or exceeds the total investment ceiling already approved, the project owner must report to the investment decision-maker as stipulated in Clause 2 and 3, Article 9; in cases where the adjustment of the economic and technical report does not change the location, scale, project objectives, or exceed the total investment ceiling, the head of the unit (project owner) may decide independently. The contents of the project adjustments must be reviewed before making a decision.

Article 12. Management of construction quality and acceptance

1. The head of the unit shall implement construction quality management and organize acceptance and handover of the project for use according to current regulations.

2. General Departments, Bureaus, and Departments assigned by the Minister to approve investment proposals shall be responsible for inspecting the acceptance and handover for use to report to the Ministry as required.

Article 13. Finalizing Investment Capital

1. Upon completion and acceptance of the project or project component for use, the head of the unit must prepare a finalization report for approval by the competent authority. The time for completing the acceptance and handover of the project for use must be completed within the fiscal year.

The maximum time to prepare the finalization report for state budget funds with investment characteristics from the date of handover for use is three months. The maximum time for reviewing and approving the finalization is three months.

2. The final settlement report for completed projects shall be prepared in accordance with the guidelines set forth in Circular No. 19/2011/TT-BTC dated February 14, 2011, issued by the Ministry of Finance, regarding the final settlement of completed projects funded by state capital.

3. The Minister delegates approval of the finalization.

a) The General Department Heads shall review and approve the finalization for units under their respective General Departments as stipulated in the approved plan.

b) The Financial Affairs Department Head shall review and approve the finalization for all units (excluding units under the three General Departments).

Chapter IV

PROCEDURE FOR INVESTMENT AND PROCUREMENT OF STATE ASSETS

Article 14. Approval of procurement lists, values, and implementation of tendering

1. The authority to decide on investment procurement of fixed assets from the sources of capital specified in Point a, c, and d of Clause 1, Article 6 of this Circular is as follows:

1.1. The Minister of Agriculture and Rural Development shall approve the procurement list and value of state assets with a total value of 1 billion VND or more and assets such as: buildings, land, transportation means, perennial orchards, original livestock herds, assets under the National Target Program, the Minister delegates:

a) The General Department Heads shall approve the procurement plan for fixed assets for units under their respective General Departments as stipulated in the approved plan;

b) The Financial Affairs Department Head shall approve the procurement list and value of state assets for all sources of investment (excluding scientific research funds and the national education and training target program funds);

c) The Science, Technology, and Environment Department Head shall approve the procurement list and value of state assets from scientific research funds;

d) The Cadre and Civil Servant Organization Department Head shall approve the procurement list and value of state assets from the national education and training target program funds.

1.2. The heads of administrative agencies and public institutions, based on the approved budget plan, shall approve the procurement list and value of state assets with a total value below 1 billion VND (excluding assets such as: buildings, land, transportation means, perennial orchards, original livestock herds, assets under the National Target Program).

2. For investment procurement of fixed assets from the sources of capital specified in Point b, d, and e of Clause 1, Article 6 of this Circular to serve the activities of public services or production and business services of the unit, the head of the unit shall base on the approved plan by the competent authority, according to the operational rules of the unit, decide on the procurement of fixed assets appropriately and ensure effectiveness (excluding assets such as: buildings, land, transportation means, perennial orchards, original livestock herds).

3. Implementation of tendering

a) The investment decision-maker is the person who approves the tender plan. The tender plan shall be approved simultaneously with the approval of the procurement list and value of fixed assets.

b) The head of the unit shall be responsible for approving the tender invitation documents; approving the results of the contractor selection; deciding on the handling of situations during the tendering process in accordance with regulations.

c) The head of the unit shall be responsible for reporting the results of implementation in writing to the Ministry (General Department, relevant Bureaus) within five working days after obtaining the results.

Article 15. Adjustment of the fixed asset procurement catalog and value

1. When supplementing or changing the procurement asset catalog, or when the procurement value of assets changes from the approved total budget estimate, the head of the unit shall report to the investment decision maker (Ministry, General Department) for approval of the adjustment.

2. Remaining funds after bidding: based on investment needs and the approved equipment catalog, the unit is permitted to purchase additional assets within the approved equipment catalog.

Strictly prohibited is the use of remaining project funds (or remaining funds after bidding) to implement new procurement investments for assets not approved by the investment decision maker.

3. Time for adjustment: before October 31 each year.

Article 16. Inspection and Settlement

The implementation of inspection and settlement shall be carried out in accordance with current regulations.

Chapter V

DISPOSAL OF STATE ASSETS

Article 17. Authority to decide on the disposal of state assets

1. Recovery and sale of state assets.

a) The Minister decides to recover and sell all state assets under the management of the Ministry of Agriculture and Rural Development (except for assets that are office premises and other assets attached to land).

b) The recovery and sale of assets that are office premises and other assets attached to land shall be decided by the Ministry of Finance.

2. Transfer of state assets.

2.1. The Minister decides to transfer state assets such as houses, land, transportation means, perennial orchards, original livestock herds, and assets under the National Target Program.

2.2. For the remaining assets, the Minister delegates authority to:

a) The Director of General Departments to decide on the transfer of assets to units under their respective General Departments.

b) The Director of the Financial Department to decide on the transfer of assets to all units (excluding units under the three General Departments).

3. Liquidation of state assets.

3.1. The Minister decides to liquidate state assets such as houses, transportation means, perennial orchards, and original livestock herds.

3.2. The Minister delegates authority to decide on the liquidation of remaining assets (excluding houses, transportation means, perennial orchards, and original livestock herds) with a book value of 500 million dong or more per asset unit to:

a) The Director of General Departments to decide on the liquidation of assets for units under their respective General Departments.

b) The Director of the Financial Department to decide on the liquidation of assets for units (excluding units under the three General Departments).

3.3. For assets with a book value of less than 500 million dong per asset unit (excluding houses, land, transportation means, perennial orchards, and original livestock herds), the head of the unit decides on the liquidation of assets in accordance with regulations.

4. The handling of assets of projects upon completion of implementation shall be carried out in accordance with Circular 87/2010/TT-BTC dated June 15, 2010, issued by the Ministry of Finance, regarding the management and disposal of assets of state-funded projects upon project completion and subsequent supplementary documents.

5. The proceeds from the sale, transfer, or liquidation of assets, after deducting reasonable related expenses (if any), shall be handled in accordance with current laws.

Article 18. Procedures for handling state assets

Implementation shall be in accordance with Articles 14, 17, 21, and 28 of Decree 52/2009/NĐ-CP dated June 3, 2009, issued by the Government, and specific guidance provided in this Circular.

State assets at agencies and units shall be handled according to the principle that the level which decides on investment construction, procurement, and repair shall also decide on the handling of assets. The procedures and formalities for implementation are as follows:

1. For assets within the authority to handle by the agency or unit, a proposal for handling state assets must be established. The proposal includes:

a) A document proposing the disposal of state property;

b) A letter requesting acceptance of the property by the receiving agency or unit and written opinions of relevant agencies (for the transfer and sale of state property);

c) Catalog of state assets proposed for handling (for cases of transfer, sale, and liquidation) in accordance with Clause 5 of Article 11 stipulated in Circular 245/2009/TT-BTC dated December 31, 2009.

d) Decisions of competent authorities related to the handling of state assets.

đ) Written confirmation of the quality of state assets to be handled by the specialized agency.

2. For assets within the authority to handle by the Ministry: Within thirty days from the date of receiving complete and valid proposals for handling assets, the Financial Department issues a decision or submits a proposal to the Ministry for a decision on handling state assets. The main contents of the decision on handling state assets include:

a) The agency or unit with the property to be disposed of;

b) The agency or unit receiving the assets (for cases of transferring and selling state assets).

c) Catalog of assets to be handled.

d) The method of disposing of the property;

d) Management and use of proceeds from the handling of assets.

d) Responsibility for implementation organization.

Chapter VI

RESPONSIBILITIES OF RELATED UNITS

Article 19. Time limit for reviewing investment approval proposal files

Clause 1. The time limit for reviewing investment approval proposal files and draft decisions on approving investment proposals shall not exceed five working days from the date of receipt of the official letter (if the file is complete as prescribed in Article 8).

Clause 2. In cases where the submitted file is incomplete or does not comply with the regulations, the reviewing agency shall be responsible for notifying the unit to supplement and complete the file within five working days (counting from the date the file is received by the office).

Article 20. Post-settlement processing

After receiving the decision on finalizing the settlement from the competent authority, the head of the unit (the investor) shall be responsible for recovering debts (if any), paying outstanding amounts, and closing the account within six months from the date of approval of the final settlement.

Article 21. Accounting for Fixed Assets

Units using the state budget shall be responsible for opening accounting books to monitor and record increases or decreases in the value of fixed assets and capital forming fixed assets in accordance with the provisions of the law.

Article 22. Responsibilities of the Head of the Unit

During implementation, if the investor violates current State regulations in the fields of planning and investment, causing delays, losses, or wastage, they will be subject to penalties under the law. If economic damage occurs, compensation must be provided. The head of the unit (the investor) shall bear joint liability if contractors, consulting units, or experts violate the law.

Chapter VII

IMPLEMENTATION

Article 23. Implementation Organization

Clause 1. The General Directors of the General Bureaus, the Director of the Financial Department, the Director of the Science, Technology, and Environment Department, the Director of the Organization and Cadre Management Department, and the Director of the Construction Project Management Bureau shall be responsible for directing, guiding, and inspecting subordinate units of the Ministry to implement this Circular.

Clause 2. The heads of agencies and units benefiting from the state budget shall be responsible for:

a) Strictly implementing this Circular and being accountable to the Minister for organizing the implementation of tasks of their unit in preparing budgets for major repairs, small construction projects of fixed assets from operating funds with investment characteristics, and annual procurement of fixed assets.

b) Directing the establishment of regulations for implementing major repair investments, small construction projects, procurement, and management of state property at their unit in accordance with current regulations and the delegation provisions of this Circular.

c) Managing and using assets economically and effectively.

d) Regularly reporting annually to the Ministry (Financial Department) on the management and use of assets and the results of implementing delegated authority and authorization together with the annual budget settlement report, serving as a basis for inspection, supervision, and summarizing investment and procurement activities of agencies and units.

Clause 3. During implementation, if any issues arise or difficulties occur, agencies and units shall promptly report and propose solutions to the Ministry (Financial Department) for consolidation and submission to the Minister for consideration and appropriate amendments and supplements.

Article 24. Effective Date

This Circular shall take effect forty-five days from the date of signature and replace Circular No. 27/2010/TT-BNNPTNT dated May 4, 2010, issued by the Ministry of Agriculture and Rural Development on guiding procedures and processes for annual investment in major repairs, small construction projects of fixed assets from operating funds with investment characteristics at administrative agencies, public institutions, scientific and technological organizations, and project management boards under the Ministry of Agriculture and Rural Development's management./.