Circular No. 172/2011/TT-BTC stipulates the management, settlement, and final accounting of capital investment for forestry construction projects funded by the state budget.

CIRCULAR

Regulations on management, settlement, and finalization of capital investment for forest construction projects funded from the state budget

forest seedlings from state budget funds

_______________________

 

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002; Government Decree No. 60/2003/NĐ-CP dated June 6, 2003 detailing and guiding the implementation of the State Budget Law;

Pursuant to the Forest Protection and Development Law No. 29/2004/QH11 dated December 3, 2004;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Investment and Construction Management Regulations issued together with Government Decrees: No. 52/1999/NĐ-CP dated July 8, 1999, No. 12/2000/NĐ-CP dated May 5, 2000, No. 07/2003/NĐ-CP dated January 30, 2003;

Pursuant to the Government's Decrees: No. 12/2009/NĐ-CP dated February 12, 2009 on project management for construction investment; No. 83/2009/NĐ-CP dated September 15, 2009 amending and supplementing certain articles of Government Decree No. 12/2009/NĐ-CP on project management for construction investment; No. 85/2009/NĐ-CP dated October 15, 2009 guiding the implementation of the Bidding Law and selection of construction contractors under the Construction Law; No. 112/2009/NĐ-CP dated December 14, 2009 on management of construction investment costs; No. 48/2010/NĐ-CP dated May 7, 2010 on contracts in construction activities;

Pursuant to Decision No. 73/2010/QĐ-TTg dated November 16, 2010 of the Prime Minister promulgating the Regulation on project management for forest construction investment;

Implementing Circular No. 2108/TTg-KTN dated November 17, 2010 of the Prime Minister regarding the policy on tasks for forest protection and development during the period 2011-2015;

The Ministry of Finance hereby stipulates the management, settlement, and finalization of capital investment for forest construction projects funded from the state budget to be consistent with the specific characteristics of managing forest construction investment projects as follows:       

Part I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular stipulates the management, settlement, and finalization of capital investment for forest construction projects funded from the state budget, including capital investment from the state budget in forest construction projects with multiple funding sources.

For projects utilizing official development assistance (ODA) funds, if international agreements signed by competent authorities of the Socialist Republic of Vietnam contain provisions on management, settlement, and finalization of capital that differ from those set forth in this Circular, such provisions shall be implemented according to the international agreements.

Article 2. For forest construction investment projects and forest protection and development investment projects funded from state credit for development, state-guaranteed credit, state-owned enterprise development capital, and other state-managed capital, the relevant laws governing each type of capital shall apply.

For projects funded from other state sources outside the state budget, it is encouraged to adopt the principles of management, settlement, and finalization as prescribed in this Circular.

The subjects to which these regulations apply are organizations and individuals involved in the management, settlement, and finalization of capital investment for forest construction projects.

Article 2. Capital from the state budget for forest construction investment projects includes:

- Domestic capital at various levels of the state budget;

- Foreign loans and foreign aid provided to the government, local authorities, and state agencies (the state budget portion).

Article 3. Agencies responsible for settling capital investment from the state budget

Clause 1. The State Treasury is assigned the task of supervising the settlement of capital investment from the state budget and ODA funds in cases where ODA donors transfer ODA funds to implement projects in Vietnam exclusively through the state treasury system.

Clause 2. Commercial banks are service providers for projects using official development assistance (ODA) funds.

Part II
SPECIFIC PROVISIONS

A. ALLOCATION, AUDIT OF ALLOCATION, AND ADJUSTMENT OF CAPITAL INVESTMENT PLANS

Article 4. Allocation of annual investment capital plan

1. For projects managed by Ministries and central sectors: based on the three-year medium-term plan (if assigned) and the annual plan assigned, Ministries and sectors allocate annual investment capital indicators for each project within their management scope that meet the prescribed conditions, ensuring alignment with the total investment amount indicator assigned; domestic capital structure, foreign capital structure, economic sector structure to be reviewed by the Ministry of Finance according to the State Budget Law regulations, and concurrently sent to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development for monitoring management.

2. For investment capital under local management: based on the three-year medium-term plan (if assigned) and the annual plan assigned, the Department of Planning and Investment shall take the lead, coordinate with the Department of Finance, the Department of Agriculture and Rural Development, propose the allocation of investment capital for each project that meets the prescribed conditions, submit to the Provincial People's Council for decision.

People's Councils at all levels establish plans for allocating investment capital to be submitted to the People's Councils at the same level for decision. According to the Resolution of the People's Council, the People's Council allocates and decides to assign the investment capital plan for each project within their management scope that meet the prescribed conditions, ensuring alignment with the total investment amount indicator assigned; domestic capital structure, foreign capital structure, economic sector structure, to be sent to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, the Ministry of Finance for monitoring management.

3. Ministries and People's Councils at all levels detail the allocation of development investment capital for each project according to the project code and economic sector (type, item) as per Appendix No. 02 issued by Decision No. 33/2008/QD-BTC dated June 2, 2008 of the Minister of Finance on the National Budget Classification System and any subsequent amendments and supplements (if any).

4. The allocation of the investment capital plan and the assignment of the budget estimate for the planning year for projects must be completed before December 31 of the year preceding the planning year.

(Allocation of the investment capital plan according to Appendix No. 01 attached).

5. After the allocation of the investment capital plan:

5.1 For projects managed by Ministries and central sectors: Ministries send the investment capital plan to the Ministry of Finance and the State Treasury (central). The State Treasury transfers the investment capital plan of projects (with details according to chapter code, project code, and economic sector (type, item) of Ministries to the State Treasury at the local level as the basis for control and payment of capital;

5.2 For investment capital under local management:

- Provincial People's Committees send the investment capital plan to the Ministry of Finance, concurrently sending it to the Department of Finance and the State Treasury (provincial) for monitoring, serving as the basis for control and payment of capital;

- District People's Committees send the investment capital plan to the Department of Finance, concurrently sending it to the Financial and Planning Office and the State Treasury (district) for monitoring, serving as the basis for control and payment of capital.

5.3 Simultaneously with sending the plan to the aforementioned agencies, Ministries and People's Councils at all levels assign the plan indicators to investors for implementation.

Article 5. Review of Capital Allocation

1. For projects managed by Ministries:

1.1 After receiving the capital allocation plan from Ministries, the State Treasury implements the work of controlling payments according to regulations. In cases where projects do not have complete investment procedures, the State Treasury has the right to refuse payment and provide written comments to the investor and the higher-level State Treasury for consolidation and reporting to the Ministry of Finance.

1.2 The Ministry of Finance provides comments on the review of allocation to Ministries within five working days after receiving the capital allocation plan from Ministries. In cases where projects are allocated incorrectly, the Ministry of Finance provides comments for the State Treasury to stop payments; if payments have been made, they must be recovered. Ministries are responsible for directing investors of projects allocated incorrectly to repay the state budget the amount paid and bear responsibility for the consequences caused by incorrect allocation.

2. For projects managed by provinces and districts:

During the process of participating with relevant units regarding the annual investment capital plan, the Department of Finance and the Financial and Planning Office simultaneously perform the task of reviewing the capital allocation plan before the agencies submit to the Provincial People's Committee and District People's Committee for decision. Based on the decision on the investment capital plan of the Provincial People's Committee and District People's Committee, the State Treasury implements control and payment according to regulations. In cases where projects do not have complete investment procedures, the State Treasury does not make payments and informs the Department of Finance and the Financial and Planning Office to report to the Provincial People's Committee and District People's Committee for handling.

Documents accompanying the capital allocation plan for the review of allocation include:

+ For projects preparing for investment, one of the following documents must be included:

+ Decision of the competent authority allowing the preparation of investment;

+ Approval document for the budget estimate of preparatory work costs;

+ Decision assigning plan indicators of the competent authority.

- For projects implementing investment: Decision on investment project of the competent authority (or economic-technical report for projects only preparing economic-technical reports), decisions adjusting the project (if any);

Article 6. Adjusting the investment capital plan

1. Principles:

1.1. Periodically, ministries and localities shall review the progress and investment objectives of projects for the year to adjust the investment capital plan within their authority or submit to the Prime Minister for adjustment of the investment capital plan, transferring capital from projects that are unable to be implemented to projects that have exceeded their schedule, still owe work volume, and projects with the potential to complete ahead of schedule within the year.

1.2. Before submitting the adjusted investment capital plan for each project to the Ministry of Finance (for projects under the central budget) and the finance, planning, and investment agency (for projects under the local budget), ministries and localities shall instruct the project owner to finalize the payment time and work with the State Treasury to confirm the amount of capital paid from the annual plan to the project, determine the surplus capital due to non-execution, ensuring that the project's plan after adjustment is not lower than the capital paid by the State Treasury. Ministries and localities are responsible for disbursement data and the adjusted capital plan figures.

2. Ministries and provinces shall implement adjustments to the investment capital plan and submit them to the same-level finance agencies and the State Treasury as the basis for payment. The deadline for adjusting the annual investment capital plan ends no later than December 25 of the planning year. The review of the adjustment of investment capital allocation shall be carried out as stipulated in Article 5 of this Circular.

The adjusted capital plan for projects must fall within the scope of the three-year medium-term plan total level (if assigned) and the annual allocation plan already arranged. The total level of the three-year plan and the adjusted annual allocation plan may not exceed the plan assigned by the Prime Minister.

(Adjustment of the allocation of the investment capital plan according to Appendix No. 02 attached).

B. PAYMENT OF INVESTMENT CAPITAL

Article 7. Opening Accounts

1. For domestic capital:

The project owner or the Project Management Board (hereinafter referred to collectively as the project owner) may open an account at the State Treasury where it is convenient for the project owner's transactions and for the State Treasury's payment control, and shall comply with the regulations of the Ministry of Finance on the system of opening and using accounts at the State Treasury.

The State Treasury has the responsibility to guide the project owner to open an account to receive capital payments.

2. For foreign capital:

The project owner may open an account at a bank serving the project or at the State Treasury in accordance with the international agreement on ODA for the project and related documents attached, or in accordance with the guidance of the Ministry of Finance if the international agreement on ODA and related documents attached do not specify.

Article 8. Project Documentation

To serve the management and control of investment capital payments, the project owner must send to the State Treasury where the payment account is opened the project documentation (these documents must be original or certified true copies, sent only once until the end of the investment project, except when supplementation or adjustment is required), including:

1. For investment preparation work:

- Approved budget estimate for investment preparation work;

- Tender selection documents in accordance with the Bidding Law;

- The contract between the Project Owner and the contractor.

2. For implementation work:

2.1. For domestic capital projects:

- Investment project construction works (or economic-technical reports for projects that only prepare economic-technical reports) accompanied by the investment decision of the competent authority, and any project adjustment decisions (if applicable);

- Tender selection documents in accordance with the Bidding Law;

- Construction contracts between the project owner and the contractor (including all documents accompanying the contract as prescribed, excluding technical documents); specifically for forestry work, it is the contract for forestry items between the project owner and households/groups of households and the contracting unit (including all assignment contracts; forest planting contracts and support contracts for production forests).

- Budget estimates and approval decisions for each work item, sub-project, and project for cases of direct award or self-execution and works executed without a contract.

2.2. For ODA projects: in addition to the documents specified in point 2.1 above, there must be:

- A Vietnamese translation of the international agreement on ODA signed between Vietnam and the donor, and other relevant documents concerning payment (if any), bearing the signature and seal of the project owner. Specifically, the contract between the project owner and the contractor must be a Vietnamese document or a Vietnamese translation of the document bearing the signature and seal of the project owner (the part specifying payment conditions and terms and other contents directly related to payment in the contract). The project owner is legally responsible for the accuracy and correctness of the Vietnamese translation.

- Advance payment guarantee (if any) in accordance with the specific provisions of the Contract (including cases of domestic capital projects but constructed by foreign contractors).

3. For investment preparation work but allocated capital in the implementation plan, there must be a budget estimate for investment preparation work approved.

4. For preparatory work for implementing the project but allocated capital in the implementation plan:

- Investment project construction works (or economic-technical report for projects only preparing such reports) and investment decision of the competent authority, project adjustment decisions (if any).

- A budget estimate for preparatory work for implementing the project approved; specifically, land clearance must be accompanied by a land clearance plan approved by the competent authority;

- Tender selection documents in accordance with the Bidding Law;

- Contracts between the project owner and the contractor and other documents accompanying the contract as prescribed by law (excluding technical documents).

5. For cases of self-execution:

- Investment project construction works (or economic-technical report for projects only preparing such reports) and investment decision of the competent authority, project adjustment decisions (if any).

- Budget estimates and approval decisions of the competent authority for each work item, sub-project, and project (excluding projects that only prepare economic-technical reports);

- Document from the competent authority allowing self-execution of the project (in cases not included in the investment decision of the competent authority);

- Assignment documents or internal contracts.

Article 9. Capital Investment Payment

The State provides capital to the project owner for the project owner to pay to the contractor according to the contract or to pay for works of the project not carried out through contracts, including:

- Advance payment

- Payment for completed volume

Article 10. Advance Payment

Advance payment of capital by the project owner to the contractor can only be implemented for necessary works that require advance payment and must be clearly defined in the contract regarding the object, content, and specific work. The level of advance payment, the time of advance payment, and the recovery of advance payment must comply with the regulations of the State for each specific type of contract as follows:

1. Level of advance payment:

1.1. For items, works, and packages of activities related to forestry production (as stipulated in Article 3 of the Regulation on Management of Investment Construction Projects in Forestry issued together with Decision No. 73/2010/QĐ-TTg dated November 16, 2010 of the Government Prime Minister) of forestry investment projects, the minimum advance payment is 30% of the contract value or approved budget estimate. Depending on the nature of the work and planting season (according to the nature of the contracts), the maximum advance payment is 60% of the contract value or approved budget estimate. In special cases requiring higher advance payments, permission from the investment decision maker is required.%1.2. For infrastructure technical facilities serving forest protection and development (as stipulated in Article 3 of the Regulation on Management of Investment Construction Projects in Forestry issued together with Decision No. 73/2010/QĐ-TTg dated November 16, 2010 of the Government Prime Minister) and land clearance work: advance payment shall be made in accordance with the Ministry of Finance's regulations on management and payment of investment capital and public service investment funds from state budget sources, where the maximum advance payment for infrastructure technical facility items is 50% of the contract value. In special cases requiring higher advance payments, permission from the investment decision maker is required.

1.3. Advance payment shall be made after the contract becomes effective; if the project owner and the contractor agree in the contract to have a guarantee for the advance payment, then the contractor must provide a guarantee for the advance payment amount. The level of advance payment shall not exceed the annual investment capital plan allocated for the package.

2. Recovery of advance payment:

2.1. Advance payment shall be recovered through payments for completed volumes of the contract, starting from the first payment and being fully recovered when the payment value reaches 80% of the contract value. The level of recovery for each payment is agreed upon by the project owner and the contractor (or teams, groups, associations, or clusters at village or commune levels) and specified in the contract.

2.2. The project owner has the responsibility to jointly calculate with the contractor (or teams, groups, associations, or clusters at village or commune levels) a reasonable advance payment, strictly manage, use the advance payment for its intended purpose, effectively, and ensure full repayment of the advance payment when the payment value reaches 80% of the contract value.

If the advance payment has not been recovered but is unused, and if it exceeds the six-month period stipulated in the contract due to objective or subjective reasons, or if the contractor misuses the advance payment, the project owner is responsible for jointly with the State Treasury to recover and repay the advance payment to the state budget.

If the advance payment has not been fully recovered by the end of the plan year, it will continue to be recovered in the following plan year without being deducted from the next year's investment capital payment plan.

3. Documents for advance payment:

In addition to the basic documents of the project as prescribed, when making advance payment, the project owner shall submit the following documents to the State Treasury:

- Transfer vouchers;

- A payment request for investment capital;

- Guarantee for the advance payment amount provided by the contractor (if the project owner and the contractor agree in the contract to have a guarantee for the advance payment), the project owner shall send a certified copy stamped by the project owner to the State Treasury.

4. The State provides capital to the project owner for advance payment within the plan year no later than December 31 of the plan year.

The project owner may be paid advance payment once or multiple times for a contract based on the need for advance payment capital but not exceeding the advance payment level as prescribed above; if the planned capital allocation is insufficient for the advance payment level, the project owner may request additional advance payment in the following plan year.. The project owner may be paid a provisional advance once or multiple times for a contract based on the need for provisional advance funding but not exceeding the provisional advance amount specified above; if the funding plan does not cover the provisional advance amount, the project owner may request an additional provisional advance in the following year's plan.

Article 11. Payment for Completed Volumes

Includes for forest production items and infrastructure technical facilities serving forest protection and development.

1. On payment principles:

1.1. For works carried out under contracts, payments shall be made according to the contract: based on the contract price and conditions stipulated in the contract. The number of payments, payment stages, payment time points, and payment conditions must be clearly recorded in the contract;

1.2. For works carried out without contracts: payments shall be appropriate to each type of work, based on reports of completed work volumes and approved estimates for each work item:

- In cases where the work is self-performed: payments shall be based on reports of completed work volumes and approved estimates for each work content.

- For works performed by the unit itself, within project management costs..., payments shall be appropriate to each type of work, based on expense schedules and approved estimates for each work content.

2. Payment Documents:

When there is a completed volume accepted according to the payment stage and conditions in the contract, the investor shall prepare a payment request file to send to the State Treasury, including:

- A table determining the value of the completed work volume proposed for payment under the contract with confirmation from the representative of the contracting party and the consultant (if any) and the representative of the contractor (in accordance with Appendix No. 03.a Circular No. 86/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance on management and payment of investment capital and public service capital with investment nature from state budget funds). When there is a volume outside the contract, the investor sends a table calculating the value of the additional volume (if any) outside the signed contract for payment with confirmation from the representative of the contracting party and the consultant (if any) and the representative of the contractor (in accordance with Appendix No. 04 Circular No. 86/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance on management and payment of investment capital and public service capital with investment nature from state budget funds);

Report on the value of completed work volumes for self-performed items according to the estimate and expense schedule for self-performed items according to the estimate within project management costs...

For land clearance work carried out in accordance with the regulations of the Ministry of Finance on management and payment of investment capital from state budget funds.

- A payment request for investment capital or advance payment (in accordance with Appendix No. 05 Circular No. 86/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance on management and payment of investment capital and public service capital with investment nature from state budget funds).

- Financial transaction documents issued in accordance with the accounting document system of the Ministry of Finance.

3. Payment for completed volumes and the principle of payment control by the State Treasury shall be implemented in accordance with the regulations of the Ministry of Finance on management and payment of investment capital and public service capital with investment nature from state budget funds (currently Circular No. 86/2011/TT-BTC dated June 17, 2011 on management and payment of investment capital and public service capital with investment nature from state budget funds).

For payments from ODA funds, they shall be carried out in accordance with the guidelines of the Ministry of Finance on financial management mechanisms for official development assistance (ODA) programs and projects (currently Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance guiding financial management mechanisms for official development assistance (ODA) programs and projects and Circular No. 40/2011/TT-BTC dated May 22, 2011 amending and supplementing certain contents of Circular No. 108/2007/TT-BTC) and special Circulars guiding ODA projects.

4. Implementation and Payment Time Limit:

4.1. The annual capital plan allocated for completed volumes accepted until March 31 of the following year and the State Treasury's payment period shall be completed by April 30 of the following year.

4.2. Extension of implementation and payment periods:

4.2.1. After April 30 of the following year, the allocated capital plans for projects that have not been used or have not been fully utilized will not be continued to be spent and will be canceled; except for cases decided by the Minister of Finance (for central budget) or the Chairman of the People's Committee of the province (for local budget) to extend. Cases eligible for extension to the next year are regulated in point a, Section 3, Clause I of Circular No. 108/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance on handling the state budget at the end of the year and preparing, reporting annual state budget settlement and amendments (if any).

4.2.2. The process of transferring extended capital for projects is as follows:

After the annual payment deadline (April 30 of the following year), based on the actual implementation and payment situation of construction investment projects, the investor of projects mentioned in paragraph 4.2.1 above shall submit a proposal, which the competent authority shall consolidate and issue a document with confirmation from the State Treasury branch where the project account is opened regarding the amount paid up to April 30 of the following year, sent to the Ministry of Finance (for central budget projects) and the Chairman of the People's Committee of the province (for local budget projects).

4.2.3. Extended implementation and payment period: not exceeding one year after the planned year. Other cases are decided by the Prime Minister.

4.2.4. Time limit for extending transfer:

- Proposals for extension from the competent authorities must be submitted before May 31 each year, clearly stating the project name, annual capital plan, amount paid up to April 30 of the following year, amount requested for extended implementation and payment period, extension period, reasons for extension.

- Based on the proposal from the competent authority, the Minister of Finance (for central budget projects) and the Chairman of the People's Committee of the province (for local budget projects) shall decide the list and duration of projects allowed to extend.

- The decision on the list and duration of projects permitted to extend their completion before June 30 each year.

As of July 1, the following year, cases without an authorized agency's document accepting the extension for implementation into the next year's budget will have the remaining funds canceled.

Article 12. On management, settlement, recovery, and finalization of advance budget funds from the next fiscal year for projects (domestic capital sources).

Management, settlement, recovery, and finalization of advance budget funds from the next fiscal year for projects shall be carried out in accordance with the regulations4. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, the People's Committee of Haiphong City, the People's Committee of Can Tho City, the People's Committee of Nghe An Province, the People's Committee of Thanh Hoa Province, and the Heads of related units are responsible for implementing this Decision.of the Ministry of Finance regarding management, settlement of investment capital, and operational capital with investment characteristics from state budget funds. The total amount paid and advanced over three years must not exceed the three-year capital plan assigned (if applicable) for the project. C. REPORTING SYSTEM, FINALIZATION, AND INSPECTION

1. For project sponsors, ministries, and provinces: implement the reporting system as stipulated in Decision No. 52/2007/QD-TTg dated April 16, 2007, of the Prime Minister on the Reporting System for the Implementation of State Investment Capital Plans, and Circular No. 05/2007/TT-BKH dated August 9, 2007, of the Ministry of Planning and Investment on the issuance of reporting forms and guidelines for implementing Decision No. 52/2007/QD-TTg dated April 16, 2007;

Article 13. Reporting

2. For the State Treasury:

- Implement the reporting system according to the regulations of the Ministry of Finance.

- At the end of the fiscal plan, the State Treasury compiles payment data for investment capital and reports it to the corresponding financial authority in accordance with the regulations on finalizing the state budget.

- By the end of the fiscal plan, the State Treasury confirms the payments made during the year, cumulatively calculates the payments from the start of construction to the end of the state budget period for each project established by the sponsor at two points: by January 31 of the following year and by April 30 of the following year.

Article 14. Finalization of Investment Capital

1. Annual Finalization of Investment Capital

The annual finalization of investment capital is carried out in accordance with the regulations of the Ministry of Finance on guiding the finalization of construction investment capital from state budget sources according to the annual budget cycle (currently Circular No. 210/2010/TT-BTC dated December 20, 2010, of the Ministry of Finance on guiding the finalization of construction investment capital from state budget sources according to the annual budget cycle). In this regard:

The planned capital of the current year that is settled from January 1 of the planning year to January 31 of the following year is finalized into the planning year's budget, while the capital settled from January 31 to April 30 of the following year is finalized into the subsequent year's budget.

2. Finalization of Completed Projects

The finalization of investment capital for completed projects is implemented according to the guidance of the Ministry of Finance on finalizing completed projects from state capital (currently Circular No. 19/2011/TT-BTC dated February 14, 2011, of the Ministry of Finance on guiding the finalization of completed projects from state capital) and in accordance with specific provisions as follows:

2.1. The report on the finalization of completed projects must fully and accurately determine the total investment costs incurred; clearly define the source of investment capital; allowable investment costs not included in the value of assets formed through the project; the value of assets formed through the project: fixed assets, circulating assets; while ensuring compliance with the content and time frame specified in the regulations.

2.2. For projects with multiple forest production activities or forest engineering works, depending on scale, nature, and implementation period, the sponsor may finalize, audit, and approve the finalization of investment capital for each activity, each work, or each independent tender immediately after the activity, work, or independent tender is completed and put into operation as required by the investment decision-maker. The proposed finalization value of forest production activities includes approved design-cost estimates.

2.3. For comprehensive forest protection and development projects (referred to as forestry investment projects), which are akin to a type of project comprising several component projects or independent sub-projects (with separate approval decisions for projects or economic-technical reports for construction works), each component project or independent sub-project is finalized, audited, and approved as an independent investment project according to this Circular. After the entire project is completed, the sponsor (or the managing sponsor in cases where there are multiple sponsors for component projects) consolidates the finalization results of the entire project and reports them to the competent authority for approval; there is no need to re-audit and approve the finalization of component projects or sub-projects that have already been audited and approved according to the regulations.

2.3. For integrated forest protection and development investment projects (referred to as forestry investment projects), which have characteristics similar to a type of project comprising several component projects or independent sub-projects (each with its own decision approving the project or separate economic-technical report on construction), each component project or independent sub-project shall be settled, reviewed, and approved as an independent investment project according to the provisions of this Circular. After the entire project is completed, the project owner (or the overall investor manager in cases where there are multiple project owners for component projects) shall compile the settlement results of the entire project and report to the competent authority for approval; it is not necessary to review and approve again the component projects or sub-projects that have already been reviewed and approved according to regulations.

Article 15. Inspection

Ministries, People's Committees of provinces, financial agencies, State Treasury shall periodically or unexpectedly inspect project sponsors and contractors participating in projects regarding the situation of using advance payment funds, funds for completed work volume payments, final settlement, and compliance with state policies and financial systems for development investment.

Financial agencies at all levels shall periodically or unexpectedly inspect the State Treasury on the implementation of payment systems for investment capital.

D. RESPONSIBILITIES AND LIMITS OF RELATED AUTHORITIES

Article 16. For Project Sponsors

1. Perform functions and tasks assigned according to regulations, accept and use funds for their intended purposes, correct recipients, and effectively. Adhere strictly to legal provisions concerning financial management systems for development investment.

2. Bear full responsibility for the accuracy and legality of the executed volumes, norms, unit prices, budgets for various works, quality of construction projects, and proposed payment values; ensure the accuracy, honesty, and legality of data and documents in files provided to the State Treasury and relevant state agencies.

3. When there is sufficient volume to meet payment conditions according to the contract, promptly conduct acceptance inspections, complete payment files, and request payment from contractors within the time stipulated by the contract.

4. Project sponsors must allocate sufficient funds in annual plans to purchase construction project insurance as prescribed.

5. Report promptly and fully as required to the investment decision-making agency and related state agencies; provide complete files, documents, and situations as required to the State Treasury and financial agencies to serve management and capital payment processes; be subject to inspection by financial agencies, the State Treasury, and the investment decision-making agency regarding the use of investment capital and compliance with state policies and financial systems for development investment.

6. Regularly inspect the situation of advance payment usage by contractors, conducting inspections before, during, and after providing advance payments to contractors.

7. Implement accounting for the project sponsor unit; settle investment capital according to current regulations. At the end of the plan year, prepare a reconciliation statement of investment capital payments sent to the State Treasury where the sponsor conducts transactions for confirmation at two points: up to January 31 of the following year and up to April 30 of the following year, with contents as Appendix No. 6 of Circular No. 86/2011/TT-BTC dated June 17, 2011, issued by the Ministry of Finance on the management and payment of investment capital and operating capital with investment characteristics from state budget sources.

8. Request payment when having sufficient conditions and request the State Treasury to respond and explain unsatisfactory contents in the payment process.

Article 17. State Treasury

1. Control and pay capital promptly and fully for projects when having sufficient conditions and within the specified time.

2. Provide clear written opinions to project sponsors for reduced or refused payments, answer sponsors' queries regarding capital payments.

3. The State Treasury only controls payments based on documents provided by project sponsors and according to established payment principles, not responsible for the accuracy of volumes, norms, unit prices, and construction quality.

4. Have the right to request project sponsors to provide relevant files, documents, and information to serve the control of capital payments.

5. Regularly urge project sponsors and Project Management Boards to comply with regulations on advance payments and recovery of advance payments, cooperate with sponsors to inspect advanced payments to recover unused or improperly used amounts.

6. Implement reporting and settlement systems for investment capital use according to prescribed regulations.

7. Periodically and unexpectedly inspect project sponsors on project implementation situations, compliance with financial policies and systems for development investment, management and use of investment capital.

8. At the end of the plan year, confirm the amount paid in the year, cumulative amount paid from the start of construction to the end of the state budget fiscal year for each project at two points: up to January 31 of the following year and up to April 30 of the following year, with contents as Appendix No. 6 of Circular No. 86/2011/TT-BTC dated June 17, 2011, issued by the Ministry of Finance on the management and payment of investment capital and operating capital with investment characteristics from state budget sources.

Article 18. Regarding Ministries and People's Committees of provinces and districts

1. Guide, inspect, urge investors under their management to implement investment plans, receive and use investment funds for intended purposes in accordance with State regulations.

2. Within the scope of their authority, be responsible before the Government and national laws for their decisions.

Article 19. Departments of Agriculture and Rural Development

- Assist the Provincial People's Committee in directing and managing investors to implement assigned plans.

- Coordinate with the Department of Finance to review annual settlement reports and completed project settlements to submit to the Provincial People's Committee for approval.

Article 20. The Department of Finance

Take the lead in coordinating with relevant agencies to review the allocation of investment capital and conduct settlement audits of projects managed by localities to submit to the Provincial People's Committee for approval.

Part III
IMPLEMENTING PROVISIONS

Article 21. Transitional Provisions

1. Matters related to provisional advance payments and recovery of provisional advances shall be carried out in accordance with the provisions on transitional handling in Clause 1, Article 52 of Decree No. 48/2010/NĐ-CP dated May 7, 2010 of the Government on contracts in construction activities. Issues regarding provisional advances will be specifically stipulated in the contract, and the State Treasury shall make payments in accordance with the terms of the contract concerning provisional advances and payments.

2. Specifically, issues regarding payment documents and files shall be uniformly implemented for all projects from the date this circular takes effect to ensure uniformity in the State Treasury's control over investment fund payments.

Article 22. Implementation Provisions

1. This circular takes effect from January 16, 2012, replacing the provisions on management, settlement, and final accounts of public investment funds for forestry projects in Circular No. 89/2008/TT-BTC dated October 15, 2008 of the Ministry of Finance titled "Guidelines on Management, Allocation, and Payment of State Budget Funds for the Five Million Hectare Reforestation Project".

2. During implementation, if there are difficulties or obstacles, units are requested to promptly reflect them to the Ministry of Finance for research and appropriate amendments and supplements./.