Circular No. 128/2007/TT-BTC guides the use of funds for the renovation, construction, and maintenance of administrative offices; determining the value of administrative office assets of state administrative agencies.

CIRCULAR

Guidelines for the use of funds to renovate, construct new, and maintain office premises; determining the value of office assets of administrative state agencies

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Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002; 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 the Construction Law dated November 26, 2003; Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on Management of Investment in Construction Projects; and Decree No. 112/2006/NĐ-CP dated September 29, 2006 amending and supplementing certain provisions of Government Decree No. 16/2005/NĐ-CP dated February 7, 2005; Government Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on management of construction project investment costs;

Pursuant to Decision No. 213/2006/QĐ-TTg dated September 25, 2006 of the Prime Minister on the issuance of the Regulation on Management of Office Premises of Administrative State Agencies; Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of the Prime Minister on the reorganization and handling of real estate under state ownership;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance issues guidelines for the use of funds to renovate, construct new, and maintain office premises; determining the value of office assets of administrative state agencies as follows:

Part I
GENERAL PROVISIONS

1. Scope and Applicability:

This Circular guides the use of funds to renovate, construct new, and maintain office premises; determining the value of office assets of administrative state agencies, including:

- State-owned Enterprises: QLBVN, CHKVN-CTCP, HKVN-CTCP, Trực thăng VN; International Airport Vân Đồn;

- People's Councils and People's Committees at all levels;

- Specialized agencies performing state management functions under Ministries, ministerial-level agencies, government agencies, and People's Committees at all levels.

2. Political organizations and political-social organizations, the National Assembly Office, specialized agencies under the National Assembly; the President's Office; People's Public Prosecution Offices at all levels; People's Courts at all levels; the State Audit Office shall decide on the application of these regulations to the renovation, construction, and maintenance of their own office premises and construction projects.

3. All projects for constructing and maintaining office premises must comply with the provisions of the State Budget Law and laws governing investment in construction projects using state budget funds.

4. Financial authorities at all levels shall manage financial matters related to investment, renovation, and new construction of office premises and maintenance of office premises. The State Treasury shall promptly, fully, and properly control and settle funds for projects when all conditions for fund settlement are met.

Part II
SPECIFIC PROVISIONS

A. MANAGEMENT AND USE OF FUNDS FOR RENOVATION AND NEW CONSTRUCTION OF OFFICE PREMISES

I. Conditions for establishing projects to renovate and construct new office premises:

Office premises to be renovated and constructed must meet the conditions stipulated in Section 3, Chapter II of Decision No. 213/2006/QĐ-TTg dated September 25, 2006 of the Prime Minister on the issuance of the Regulation on Management of Office Premises of Administrative State Agencies and Clause 2, Article 1 of Decision No. 260/2006/QĐ-TTg dated November 14, 2006 of the Prime Minister amending and supplementing Decision No. 147/1999/QĐ-TTg dated July 5, 1999 of the Prime Minister on standards and quotas for the use of office premises at state agencies and public institutions.

The establishment and approval of investment projects shall be carried out according to current regulations on investment and construction management. In terms of investment capital, it must clearly define the total amount and structure of each source of capital.

II. Sources of funds for investment in renovation and new construction of office premises include:

1. Capital from the state budget according to the current state budget classification.

2. Proceeds from selling assets on land and transferring land use rights approved by competent authorities to be used for investment pursuant to Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of

3. Regular expenditure funds from the state budget for minor renovations of office premises such as parking garages, ancillary structures, transformer stations, etc.

Point 4. Other lawful sources of funding as prescribed by law.

III. Use of funds for investment in renovation and new construction of office premises:

1. For state budget capital included in the annual budget balance: Implementation shall be in accordance with existing Circulars of the Ministry of Finance guiding the management and settlement of investment capital and operational capital with investment characteristics from state budget funds.

2. For proceeds from selling assets on land and transferring land use rights:

2.1 Collection and use of proceeds from selling assets on land and transferring land use rights for investment in renovation and new construction of office premises shall be implemented in accordance with Circular No. 83/2007/TT-BTC dated July 16, 2007 of the Ministry of Finance guiding the implementation of Decision No. 09/2007/QĐ-TTg dated January 19, 2007 of

2.2 Based on the proceeds from selling assets on land and transferring land use rights that can be used according to the above regulations for renovation and new construction of office premises, the superior managing ministries and departments, provincial People's Committees shall allocate investment capital once for the entire project and decide to assign investment capital plans to each project within their management scope that meet the required conditions (according to current investment construction management regulations), and send them to administrative agencies within their management scope, simultaneously sending them to the State Treasury where the unit has an account and the finance agency.

2.3 Based on payment documents, the State Treasury shall implement supervision and payment for the quantity of work completed and accepted in the project from the funds held in the temporary account. Payment mechanisms shall follow current regulations on payment of investment capital from state budget funds. The total payment amount shall not exceed the total project cost and the assigned investment capital plan by the competent authority.

Any remaining funds in the temporary account may continue to be used for payment of capital in subsequent years until the completion of the project.

2.4 The proceeds from selling assets on land and transferring land use rights that administrative agencies can use to implement investment projects according to decisions of competent state authorities shall be recorded in the state budget accounts according to the state budget classification.

3. Other sources of capital as prescribed by law: Other sources approved by competent authorities for investment in projects under the current management mechanism shall be deposited with the State Treasury for expenditure control.

4. For projects using a combination of capital sources: During the project implementation phase, priority shall be given to utilizing proceeds from the sale of assets on land and the transfer of land use rights; only when these funds are exhausted shall state budget funds and other sources be utilized.

B. GUIDELINES FOR THE USE OF CAPITAL FOR MAINTENANCE OF OFFICE PREMISES

I. Office maintenance system:

Administrative office premises of state agencies must be maintained according to the regulations and technical standards set by the State to preserve their quality, architectural design, and functional use.

The office maintenance system is implemented in accordance with Decision No. 15/2006/QĐ-BXD dated June 2, 2006, and Circular No. 08/2006/TT-BXD dated November 24, 2006, issued by the Minister of Construction regarding the office maintenance system for administrative state agencies and guidelines for construction project maintenance work.

II. Sources of funding and budget estimates for office maintenance:

1. Sources of funding for office maintenance tasks:

a. Regular expenditure funds allocated according to the current state budget hierarchy for ongoing and periodic maintenance tasks. For administrative state agencies permitted by competent authorities to implement a budgetary allocation mechanism, the funding source will be calculated and determined collectively within the total budget allocation for operations.

b. Investment capital from the state budget at the current hierarchy level for Level 4 maintenance (major repairs).

c. Grants and donations from individuals and organizations both domestically and internationally managed by the state.

d. Revenue from fees and charges as prescribed by law.

e. Other lawful revenue as prescribed.

2. Preparation of budget estimates for office maintenance:

a. For regular and periodic maintenance systems:

Based on the maintenance plan and approved capital sources, state agencies prepare the budget estimate for implementing maintenance tasks to be included in their unit's state budget estimate, which is reported to the competent authority for review and decision in accordance with the State Budget Law and guiding documents.

b. For emergency maintenance: State agencies with offices requiring maintenance base their budget preparation on the actual situation of the office, following the provisions of the State Budget Law and guiding documents.

III. Use of funding for office maintenance:

1. Agencies and units base their office maintenance activities on the annual budget estimates they have been assigned.

2. Management and control of maintenance funding expenditures are carried out in accordance with current regulations stipulated in Circular No. 79/2003/TT-BTC dated August 19, 2003, issued by the Ministry of Finance, guiding the management, issuance, and settlement of state budget expenditures through the State Treasury; Circular No. 18/2006/TT-BTC dated March 13, 2006, issued by the Ministry of Finance, guiding the expenditure control system for state agencies implementing the self-management and self-responsibility system for personnel quotas and administrative management expenses; Circular No. 27/2007/TT-BTC dated April 3, 2007, issued by the Ministry of Finance, guiding the management and settlement of investment and public service capital from state budget sources, and any amendments and supplements.

C. GUIDELINES FOR DETERMINING THE VALUE OF OFFICE ASSETS:

I. The value of office assets includes: the value of land use rights and the value of assets on land.

II. Methods for determining the value of office assets:

1. Value of land use rights:

- Determining the value of land use rights to be included in the value of state-owned office real estate is carried out in accordance with Decree No. 13/2006/NĐ-CP dated January 24, 2006, of the Government on determining the value of land use rights to be included in the value of state organizations granted land without payment of land use fees, and Circular No. 29/2006/TT-BTC dated April 4, 2006, of the Ministry of Finance, guiding the implementation of Decree No. 13/2006/NĐ-CP dated January 24, 2006, of the Government on determining the value of land use rights to be included in the value of assets of organizations granted land without payment of land use fees by the state.

2. Value of assets on land:

- New office investment projects: Through final accounting of investment capital, the quantity and value of office assets formed through project investment are determined according to the guidance provided in the Circular of the Ministry of Finance on final accounting of completed projects funded by state resources.

- The value of office assets of transferred agencies is based on the handover records and decisions of competent authorities.

- Determining the value of existing office assets is carried out in accordance with Article 39 of the Accounting Law on asset inventory. Annual and extraordinary asset inventories are conducted according to the guidelines of authorized state agencies.

- In cases where offices are renovated for upgrading and expansion: The value of office assets after completion of renovation is determined by adding the value of office assets recorded in books to the approved and settled value of office renovation.

3. Value of office assets: is the sum of the value of land use rights and the value of assets on land.

D. REPORTING, SETTLEMENT, AND INSPECTION REGULATIONS

1. Reporting:

Project investors, Ministries, People's Committees of provinces, and the State Treasury shall report regularly and urgently in accordance with current regulations on reporting investment capital (including investment capital from the sale of assets on land and the transfer of land use rights if applicable), public service capital with investment characteristics, and regular funding (maintenance capital) from the state budget.

Regularly and urgently, the Ministry of Finance compiles reports to the Prime Minister on the situation of office construction from the sale of assets on land and the transfer of land use rights.

2. Final settlement:

a. Settlement of investment capital and public service capital with investment characteristics:

The annual settlement of investment capital and the settlement of completed investment capital are carried out in accordance with the Ministry of Finance's guidelines on the settlement system for investment capital (which includes detailed descriptions of the above-mentioned sources of investment capital).

The State Treasury organizes accounting and monitoring separately for investment funds from the sale of assets on land and the transfer of land use rights, and settles accounts annually with the Finance Department in accordance with regulations.

b. Settlement of administrative and public service capital (without investment nature):

Implement the settlement system for administrative and public service capital as stipulated in Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance guiding the examination, verification, and notification of annual settlements for administrative agencies, public service units, organizations supported by the state budget, and budgets at all levels.

3. Inspection:

Ministries, People's Committees of provinces, and financial authorities at all levels periodically or unexpectedly inspect projects regarding the use of investment capital for the renovation, construction, and maintenance of offices, and compliance with state financial investment policies and regulations.

E. RESPONSIBILITIES AND LIMITATIONS OF RELATED AUTHORITIES

1. For project sponsors and budget-using entities:

- Fulfill assigned functions and tasks as prescribed. Receive and use funds for their intended purposes, for the right recipients, economically, and effectively. Adhere to state laws and regulations on financial management systems for development and public services.

- Report promptly and fully to the investment decision-making authority and related state agencies as required; provide complete documentation and information on implementation to the State Treasury and the Finance Department to support management and fund disbursement; be subject to inspection by the Finance Department and the investment decision-making authority regarding the use of investment capital, public service funds, and compliance with state policies and regulations.

- Conduct accounting for project sponsors and budget-using entities; settle investment capital and public service funds according to current regulations.

2. For ministries and People's Committees of provinces:

- Guide, inspect, and urge project sponsors within their jurisdiction to implement investment plans and maintain facilities to meet modern office requirements, properly receiving and using investment and public service funds for their intended purposes and in accordance with state regulations.

- Report on the implementation of investment plans and facility maintenance as required.

3. For financial authorities and the State Treasury:

- Financial Authorities:

Financial authorities at all levels cooperate with relevant agencies to guide and inspect project sponsors and budget-using entities on compliance with financial policies and regulations in the use of capital for office renovation, construction, and maintenance.

Annually, based on reports from the State Treasury, record revenues and expenditures into the state budget for funds from the sale of assets on land and the transfer of land use rights.

- State Treasury:

+ Strictly control and timely, fully pay out funds for projects when all conditions are met and in accordance with regulations.

+ Implement reporting and settlement systems for investment and public service funds from the state budget in accordance with the State Budget Law and guidelines from the Ministry of Finance.

+ At the end of the plan year, confirm the amount paid out during the year, cumulatively calculate the total from the start of the project to the end of the state budget fiscal year for each project with detailed sources of funding.

+ Be responsible before the Minister of Finance for controlling and settling investment and office maintenance funds.

Part III
ARTICLE TRANSITION PROVISIONS

This Circular takes effect fifteen days after its publication in the Official Gazette. Any issues arising during implementation should be promptly reported to the Ministry of Finance for study and amendment./.