Circular No. 19/2011/TT-BTC on finalizing accounts for completed projects funded by state capital

CIRCULAR

Regulations on final settlement of completed projects funded by state capital

Pursuant to 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 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 Decree No. 12/2009/NĐ-CP on project management for construction investment; 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 the Investment and Construction Management Regulations promulgated 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;

The Ministry of Finance hereby stipulates regulations on final settlement of completed projects funded by state capital as follows:

Part I - GENERAL PROVISIONS

1. Investment projects using state capital, including: State budget capital, state development credit capital, government bonds (of the central government and local governments), state-guaranteed credit capital, state-owned enterprise development capital, and limited liability company capital, after completion (or permanent cessation) must be settled according to the provisions of this Circular.

Article 1. OBJECTS AND SCOPE OF REGULATION

2. Projects decided to be invested by the Chairman of the People's Committee of communes, wards, towns and projects assigned by competent authorities to the People's Committees of communes, wards, towns as the main investors to implement according to the Circular of the Ministry of Finance guiding the management of basic construction investment capital at commune, ward, town levels shall not apply this Circular.

Investment capital subject to final settlement includes all legitimate expenses incurred during the investment process to put the project into operation. Legitimate expenses are those carried out within the scope of approved design and budget estimates, including adjustments and supplements, consistent with signed contracts, and in compliance with relevant laws. For projects using state budget capital, the investment capital subject to final settlement must fall within the approved total investment ceiling (or adjusted ceiling) as decided by the competent authority. The final settlement report of completed projects must accurately determine the total investment expenses incurred; clearly define the sources of investment capital; investment expenses that are not allowed to be included in the value of assets formed through the project investment; the value of assets formed through the project investment: fixed assets, current assets; while ensuring compliance with the content and time frame specified in the regulations. For national key projects, group A projects, programs consisting of multiple component projects or independent sub-projects (with separate project approval decisions or technical and economic reports for construction works), each component project or independent sub-project may be settled, reviewed, and approved for final settlement as an independent investment project according to the provisions of this Circular. After the entire national key project, group A project, or program is completed, the main investor (or the managing investor in cases where there are multiple main investors for component projects) will consolidate the final settlement results of the entire project and report to the competent authority for approval; there is no need to audit, review, and re-approve the final settlement of component projects or sub-projects that have already been reviewed and approved according to the regulations.

Article 2. For projects with multiple construction items, depending on the scale, nature, and construction period of the works, the main investor may settle, review, and approve the final settlement of investment construction capital for each construction item or independent tender package immediately after the completion and commissioning of the construction item or independent tender package according to the requirements of the investment decision-maker. The proposed final settlement value of the construction item includes: construction costs, equipment purchase and installation costs, and other related costs directly associated with that item. After the entire project is completed, the main investor will conduct a comprehensive final settlement of the entire project and determine the allocation of common project costs to each construction item within the project for approval by the authorized person; there is no need to review again the construction items or independent tender packages that have already been reviewed and approved according to the regulations.

Article 3. For investment projects using foreign capital (loans, grants from foreign governments, organizations, or individuals), upon completion, final settlement must be conducted according to the provisions of this Circular and relevant international agreements (if applicable). For a program or project using official development assistance (ODA) funds that may include both construction investment components and technical support components, final settlement shall be carried out as follows:

Article 4. - In cases where construction investment costs account for more than 50% of the total ODA fund value, final settlement shall be conducted according to the provisions of this Circular;

Article 5. - In cases where construction investment costs account for 50% or less of the total ODA fund value, final settlement shall be conducted according to specific accounting regulations for administrative and public service units. In such cases, if there are independent sub-projects or construction components that are settled separately, final settlement shall be conducted according to the provisions of this Circular.

Article 6. For projects of Vietnamese representative offices abroad, projects with confidentiality requirements for national security, and projects purchasing copyright ownership, final settlement of completed projects shall be carried out according to special decisions of the Prime Minister based on proposals and recommendations from the relevant agencies.

Article 7. Through the final settlement of completed projects, it aims to evaluate the results of the investment process, determine production capacity, additional asset values generated by the investment; clarify the responsibilities of the main investors, contractors, funding and lending agencies, payment control agencies, and relevant state management agencies; and through this, draw lessons to continuously improve state policies and enhance the effectiveness of investment capital management nationwide.

- In cases where construction investment costs account for more than 50% of the total value of ODA capital, final settlement shall be carried out in accordance with the provisions of this Circular;

- In cases where construction investment costs account for less than or equal to 50% of the total value of ODA capital, final settlement shall be conducted in accordance with specific accounting regulations applicable to administrative and public service units. In such cases, if there are independent sub-projects or construction components that are settled separately, final settlement shall be carried out in accordance with the provisions of this Circular.

Article 8. For projects of Vietnamese representative offices abroad, projects requiring confidentiality for national defense and security, and projects purchasing copyright ownership, the final settlement of completed projects shall be implemented based on separate decisions of the Prime Minister, taking into account proposals and recommendations from the relevant project agencies.

Article 9. Through the final settlement of completed projects, the effectiveness of the investment process is evaluated, production capacity is determined, additional asset values created through investment are identified; responsibilities of the project sponsors, contractors, funding and lending agencies, payment oversight agencies, and related state management agencies are clearly defined; and experiences are drawn upon to continuously improve state policies and mechanisms, thereby enhancing the efficiency of national investment capital management.

Part II – SPECIFIC PROVISIONS

Article 10. Content of the Final Settlement Report

1. The investment capital actually implemented for the project is the actual value that has been paid through the capital control agency, payment, and loan up to the date of closing the final settlement report (detailed according to each source of investment capital).

2. Investment costs proposed for final settlement shall be detailed according to the structure: construction, equipment, land clearance compensation, project management costs, consulting fees, other costs; detailed according to items, tender packages, or investment cost items.

3. Determine the investment loss costs not included in the value of assets formed through investment.

4. Determine the quantity and value of assets formed through investment of the project, works, or work items; detailed according to groups, types of fixed assets, current assets based on actual costs. For projects or works independently put into operation and use with an implementation period exceeding thirty-six months from the start date to the acceptance and handover date for operation and use, in necessary cases, the person approving the final settlement may decide to convert the investment capital to the price level at the time of handover and operation and use.

- The allocation of other costs to each fixed asset is determined according to the principle: costs directly related to a specific fixed asset are allocated to that fixed asset; common costs related to multiple fixed assets are allocated according to the ratio of direct costs of each fixed asset to the total direct costs of all fixed assets.

- In cases where assets are handed over to multiple units for use, it is necessary to fully determine the list and value of assets handed over to each unit.

Article 11. Final Settlement Report Forms

1. For completed projects or permanently discontinued projects: including forms according to Model Nos.: 01, 02, 03, 04, 05, 06, 07, 08 /QTDA attached to this Circular.

2. For completed work items: including forms according to Model Nos.: 01, 02, 03, 04, 05, 06 /QTDA attached to this Circular.

3. For planning projects using development investment funds and preparatory costs of cancelled projects pursuant to the decision of the competent authority: including forms according to Model Nos.: 07, 08, 09/QTDA attached to this Circular. For planning projects using funds from economic public expenditure budgets, the final settlement shall be carried out in accordance with Circular No. 24/2008/TT-BTC dated March 14, 2008, of the Ministry of Finance guiding the management, use, and settlement of economic public expenditure budgets for implementing planning tasks and projects and any subsequent amendments, supplements, or replacements (if any).

4. Recipients of the final settlement report:

- The agency responsible for reviewing and approving the final settlement;

- The immediate superior of the investor (if applicable);

- The funding, lending, and payment agencies (for confirmation of the amount of capital provided, controlled loans, and payments).

Article 12. Documents for Reviewing Final Settlement

(One set sent to the agency responsible for reviewing and approving the final settlement)

1. For completed projects, works, or work items, or permanently discontinued projects:

1.1. The investor's request for approval of the final settlement report (original);

1.2. The final settlement report of the completed project as stipulated in Article 11 above (original);

1.3. Relevant legal documents according to Model No. 02/QTDA (original or copy);

1.4. Contracts and contract termination minutes (if any) between the investor and contractors implementing the project (original or copy);

1.5. Minutes of completion acceptance of project components, construction phases, installation of equipment; Minutes of completion acceptance of the project, work, or work item for use (original or copy);

1.6. All A-B volume settlement reports (original);

1.7. Audit report on the final settlement of the completed project (if any, original); accompanied by audit report acceptance minutes and the investor's document on the audit results: agreed contents, non-agreed contents, recommendations;

1.8. Inspection conclusions, inspection minutes, audit reports of relevant agencies: Inspection, Audit, State Audit Office (if any); accompanied by reports on compliance with the above reports by the investor.

During the review process, when the final settlement review agency requests, the investor is responsible for presenting supporting documents for the final settlement review: completion files, construction diaries, bidding files, design estimates, supplementary estimates, and related payment documents.

2. For planning projects using development investment funds; preparatory costs of projects cancelled according to the decision of the competent authority:

2.1. The investor's request for approval of the final settlement report (original);

2.2. The final settlement report as stipulated in Article 11 above (original);

2.3. Collection of relevant legal documents (original or copy);

2.4. Economic contracts between the investor and contractors; contract acceptance minutes (if any, original or copy).

During the review process, when the final settlement review agency requests, the investor is responsible for presenting other related documents for the final settlement of the project's investment capital.

Article 13. Approval Authority, Agency Responsible for Reviewing Final Settlement

1. Authority to approve final settlement:

1.1. For national key projects and other important projects decided by the Prime Minister to invest:

- The Minister of Finance approves the final settlement for component projects funded by state budget; authorized or delegated to approve the final settlement for projects within their jurisdiction;

- The investor approves the final settlement for projects and component projects not funded by the state budget.

1.2. For remaining projects: The person deciding to invest is the authority to approve the final settlement of completed projects. Ministers, heads of ministerial-level agencies, central agencies of mass organizations, Chairmen of provincial People's Committees under the Central Government are authorized or delegated to approve the final settlement for Group B and C projects for subordinate agencies.

2. Agency responsible for reviewing the final settlement of completed projects:

2.1. For projects using state budget capital under the management of provinces or centrally-administered cities: The Department of Finance shall organize the review;

2.2. For projects using state budget capital under the management of districts, counties, or towns within provinces: The Financial Planning Office shall organize the review.

2.3. For the remaining projects: The person with approval authority for final settlement shall entrust the competent unit under their management to organize the review of the final settlement of completed projects before approving it.

In cases where necessary, the person with approval authority for final settlement may decide to establish a working group to conduct the review prior to approving the final settlement; the composition of the final settlement review working group shall include members from relevant units.

Article 14. Audit of final settlement of completed projects

1. All national key projects, Group A projects, and Group B projects using state funds must be audited upon completion before being submitted to the competent authority for review and approval of final settlement; other projects shall be audited according to the requirements of the competent authority.

2. The project owner shall organize the selection of auditing contractors in accordance with the provisions of the Law on Bidding, sign an audit contract for the final settlement of completed projects in accordance with the provisions of the Contract Law, and accept the audit results. In case it is not possible to select an auditing contractor, the project owner shall report to the person with approval authority for final settlement for consideration and decision to directly assign the reviewing body to conduct the final settlement review.

3. Auditing contractors for final settlement must be auditing enterprises established and operating in accordance with the provisions of the Law on Enterprise Registration and Operation in Vietnam and Decree No. 105/2004/NĐ-CP dated March 30, 2004 of the Government on Independent Auditing, and Decree No. 30/2009/NĐ-CP dated March 30, 2009 amending and supplementing certain points of Decree No. 105/2004/NĐ-CP dated March 30, 2004 of the Government.

4. When conducting the final settlement audit of completed projects, auditing contractors must comply with the Standards for Auditing Final Settlement Reports of Completed Investment Projects issued by the Ministry of Finance (Standard No. 1000); at the end of the audit work, they must prepare a final settlement audit report containing all contents prescribed in the Standards for Auditing Final Settlement Reports of Completed Investment Projects and specific contents stipulated in Article 16 of this Circular. Auditing contractors are responsible for the content and value of the audit of the project they undertake.

5. When the State Audit Agency conducts an audit of the final settlement report of completed projects or conducts regular audits according to the progress of project implementation regarding the value of completed project components:

5.1. If the content of the audit report of the State Audit Agency ensures all contents prescribed in Article 16 of this Circular, the main reviewing body for final settlement of the project can use the results of the audit report of the State Audit Agency as the basis for review, without having to hire independent auditors to audit the final settlement of the project. The State Audit Agency is responsible for the content and value of the audit of the project they undertake.

5.2. If the content of the audit report of the State Audit Agency does not ensure all contents prescribed in Article 16 of this Circular, the project owner shall select independent auditing contractors to perform supplementary audits on the contents that the State Audit Agency has not conducted. Supplementary audit costs shall be determined similarly to the determination of audit costs for project components or packages in the project as stipulated in Point 1.3, Clause 1, Article 18 of this Circular. The main reviewing body can use the results of the audit report of the State Audit Agency and the audit report of the independent auditor as the basis for final settlement review. The State Audit Agency and the independent auditing organization are responsible for the content and value of the audit reports they undertake.

Article 15. Review of final settlement for projects that have been audited for final settlement reports

Based on the results of the final settlement audit report of completed projects, the main reviewing body for final settlement shall carry out reviews according to the following contents:

1. Review compliance with the Standards for Auditing Final Settlement Reports of Completed Investment Projects in the audit result report, compare the content of the audit result report of the completed project with the contents prescribed in Article 16 of this Circular; if the required contents are not included, the reviewing body has the right to request the auditing unit to re-audit or conduct supplementary audits. When the State Audit Agency conducts an audit of the final settlement report of the completed project, the reviewing body does not need to conduct this review. of the completed project, the reviewing body does not need to conduct this review.

2. Review the application of legal regulations and legal bases used by auditors to audit the project.

3. Consider recommendations and different viewpoints between the project owner and the auditing unit.

4. Examine the compliance of the project owner and related units with the conclusions of supervisory, inspection, and State Audit agencies (if applicable).

Article 16. Review of final settlement for projects that have not been audited for final settlement reports

The reviewing body shall carry out the review and prepare a report on the results of the final settlement review of completed projects in accordance with the following procedures:

1. For completed projects, works, or project components:

1.1. Review legal documents:

- Review compliance with investment and construction procedures as prescribed by laws on investment and construction.

- Review compliance with bidding procedures as prescribed by laws on bidding.

- Review the legality and form of prices of contracts signed by the project owner with contractors (consultants, constructors, suppliers of materials and equipment) to implement the project.

1.2. Review project investment capital:

- Compare the reported investment capital provided, loaned, and paid by the project owner with the confirmation of the relevant capital-providing, loaning, and paying bodies to determine the actual investment capital implemented.

1.3. Review investment costs:

Project investment costs may be carried out through two methods:

- Self-execution by the project owner (project management board);

- Contractors shall perform in accordance with the contract.

1.3.1. Review works carried out by the project owner (project management board):

Works carried out by the project owner (project management board) include cost items under project management costs and tender packages that the project owner is permitted to carry out according to laws on bidding. When reviewing, it is necessary to:

- Compare the contents of work, quantities in the proposed final account value statement of the project owner with the contents of work, quantities in the completion acceptance records;

- Compare unit prices in the proposed final account value statement of the project owner with unit prices in the approved budget estimate to ensure compliance with state norms and unit prices or comply with principles for establishing norms and unit prices as prescribed by the state.

Through this, determine the final account value of the work or tender package carried out by the project owner (project management board).

1.3.2. Review works carried out by contractors in accordance with the contract:

Depending on the characteristics and nature of the project, construction works; all types of contracts in construction activities; the parties signing the contract must agree on the construction contract price (regardless of the form of selecting contractors) according to one of the following forms of contract price:

- Lump sum contract price;

- Fixed unit price contract price;

- Adjustable price contract price;

- Time-based contract price;

- Percentage-based contract price.

a) Review for lump sum contract price form:

Compare requirements, contents of work, quantities performed, unit prices in the proposed final account value statement A-B with those recorded in the contract, the contract pricing statement, and accompanying documents. Through this, determine the final account value of the contract.

When the contractor fulfills all requirements, contents of work, correct quantities performed, and unit prices recorded in the contract, the contract pricing statement; then the final account value equals the lump sum contract price signed. There is no need to recalculate the detailed quantities or unit prices already approved by the competent authority according to the winning bid decision.

b) Review for fixed unit price contract price form:

- Compare with the quantity acceptance record to review requirements, contents of work, quantities performed in the proposed final account value statement A-B;

- Compare unit prices in the proposed final account value statement A-B with the fixed unit prices recorded in the contract pricing statement and accompanying documents;

The final account value equals the accepted quantities multiplied (x) by the fixed unit prices recorded in the contract.

c) Review for adjustable price contract price form:

Based on specific conditions of the contract, clearly define the scope, principles, and methods of adjustment of the contract. In cases of adjustment regarding quantities, refer to the quantity acceptance record to review quantities. In cases of adjustment regarding unit prices, refer to the principles of adjusting unit prices recorded in the contract.

d) Review for time-based contract price form:

The time-based contract price is determined based on the remuneration rate for experts, other expenses outside the remuneration rate for experts, and working time calculated in months, weeks, days, or hours.

- To determine the remuneration to be paid to the contractor, compare the hourly rate in the proposed final account value statement A-B with the agreed hourly rate in the contract multiplied (x) by the actual working time based on the Actual Working Time Acceptance Record or Attendance Sheet (monthly, weekly, daily, hourly);

- To determine other expenses outside the remuneration such as travel, survey, rental of office space, and reasonable other expenses; compare with the payment method stipulated in the contract:

+ In case the contract specifies payment based on actual expenses: compare the settlement statement with actual receipts and invoices according to state regulations;

+ In case the contract specifies payment based on a lump sum: settle according to the agreed lump sum in the contract.

- During implementation, if additional experts are required due to new tasks not covered in the contract, the parties must agree and unify the remuneration rate before implementation; at that time, the settlement file must include a calculation table of values for tasks outside the scope of work required by the contract (with confirmation from both parties: the tenderer or the consultant's representative if any and the contractor).

đ) Review for percentage-based contract price form: (%)":

Percentage-based contract price (%) is calculated based on the percentage (%) of the value of the construction work or the value of the work volume. When the contractor has completed all obligations recorded in the contract, the final account value of the percentage-based contract price is determined based on the agreed percentage (%) in the contract multiplied (x) by the value of the construction work or the value of the work volume corresponding to the contract.

e) Review for contracts with multiple works corresponding to various contract prices (combined contract), it is necessary to clearly define the scope according to the construction project, sub-project, or specific work content applying a specific form of contract price: lump sum, fixed unit price, adjustable price, time-based, percentage (%).

The review of each part of the contract, according to each form of contract price, corresponds to the provisions in paragraphs a, b, c, d, đ of Section 1.3.2, Point 1.3, Clause 1 Article 16 above.

1.3.3. Review exceptional cases:

a) In cases where certain items or some contents of work in the contract are not carried out, reduce the corresponding value of those contents according to the contract.

b) In case there is unexecuted volume or the accepted volume is lower than that stated in the contract price, the unexecuted volume (or lower) shall be deducted multiplied (x) by the corresponding unit price recorded in the contract;

c) In case there is additional work requested by the project owner within the scope of the contract, where the additional volume is less than or equal to 20% of the corresponding work volume stated in the contract, the accepted additional volume shall be added (+) multiplied (x) by the corresponding unit price recorded in the contract;

d) In case there is additional work requested by the project owner within the scope of the contract, where the additional volume exceeds 20% of the corresponding work volume stated in the contract or there is no unit price for the additional volume in the contract, the accepted additional volume shall be added (+) multiplied (x) by the adjusted unit price approved by the project owner according to the principle of adjusting the unit price of additional work volumes as stipulated in the contract;

e) In case there is additional work requested by the project owner outside the scope of the contract, it shall be reviewed based on the supplementary budget already approved by the project owner accompanying the supplementary contract for the value of the additional work;

1.3.4. The selection of contract forms, adjustment of contract prices, and adjustment of unit prices in construction contracts must comply with the provisions of the Government's Decree on construction contracts. For projects funded by state budget capital, they must also comply with the contract form, conditions for adjusting contract prices, and unit price adjustments specified in the decision approving the bid award issued by the competent authority;

1.4. Review costs of investment losses not included in the asset value;

- Costs of investment losses due to natural disasters, enemy attacks, and other force majeure factors not covered by insurance;

- Costs of investment for work volumes canceled according to the decision of the competent authority;

1.5. Review the value of assets formed through investment: review the quantity and value of assets in two categories: fixed assets and current assets; original cost (unit price) of each group (type) of assets based on actual costs and converted prices at the time of asset handover for production and use;

1.6. Review the situation of accounts receivable and payable, surplus materials and equipment;

- Based on the results of reviewing investment costs, report the payment status to contractors by the project owner to review the project's accounts receivable and payable;

- Based on the actual receipt and use of materials and equipment in the project, determine the quantity and value of surplus materials and equipment, and propose handling solutions;

- Based on the inventory and evaluation records of assets reserved for project management activities up to the date of the final settlement report, determine the quantity and value of remaining assets to be handed over to the user units or handled according to regulations;

1.7. Examine the compliance of the project owner and related units with the conclusions of supervisory, inspection, and state audit agencies (if any);

1.8. Remarks and recommendations;

- Remarks and evaluation on compliance with state regulations on investment management, construction, and bidding; management of investment costs and investment assets by the project owner; responsibility of each level for project investment fund management;

- Recommendations regarding the final settlement value and handling related issues;

2. For completed planning projects and investment preparation costs of canceled projects according to the decision of the competent authority;

2.1. Review the legal documentation of the project;

2.2. Review the sources of investment funds implemented;

2.3. Review the detailed implementation costs compared to the approved budget, state standards, and norms;

2.4. Review the project's accounts receivable and payable;

2.5. Review the quantity and value of assets formed through investment (if any);

Article 17. Approval of final accounts

1. Based on the report of the review results; the authorized person approves the final settlement to approve the final settlement of the completed project according to regulations;

2. The decision to approve the final settlement of the completed project shall be sent to the following agencies and units:

- Investor;

- The superior agency managing the project owner;

- The funding, lending, and payment agencies;

- Ministry of Finance (for Group A projects invested with state budget capital);

Article 18. Audit and approval costs for final settlement;

1. Determine the costs of final settlement review and approval, and independent audit costs:

The standard for final settlement review and approval costs and the standard for project completion audit costs are determined based on the approved total investment amount (or adjusted) of the specific project and the ratio prescribed in the table below:

1.1. The standard for final settlement review and approval costs (denoted as K TTPD) and the standard for audit costs (denoted as KKT) for completed projects are determined according to the general formula below:

Where:

+ Ki: Standard cost corresponding to the project to be calculated (unit: %);

+ Ka: Standard cost corresponding to the upper boundary project (unit: %);

+ Kb: Standard cost corresponding to the lower boundary project (unit: %);

+ Gi: Total investment of the project to be calculated, unit: billion VND;

+ Ga: Total investment of the upper boundary project, unit: billion VND;

+ Gb: Total investment of the lower boundary project, unit: billion VND;

1.2. The maximum review cost and the maximum audit fee for the project are determined according to the following formulas:

(a) Maximum review cost = Ki - TTPD % x Total Investment

(b) Maximum audit cost = Ki - KT % x Total Investment + VAT

(c) Minimum review cost is five hundred thousand VND; minimum audit cost is one million VND plus VAT;

1.3. The review and approval costs for final settlement and audit costs for sub-projects or packages within the project are determined as follows:

1.4. In cases where the project's equipment capital structure accounts for 51% or more of the total investment, the standard for review costs and audit costs will be calculated at 70% of the standards listed in the above table;

1.5. In cases where the project has already conducted an audit of the final settlement report, the standard for review costs will be calculated at 50% of the standards listed in the above table.

1.6. In the case of national key projects, group A projects, programs with sub-projects or component projects that make independent investment decisions, the cost of review and audit shall be calculated as an independent project.

1.7. For projects and compensation items, land clearance, the standard for the cost of review and the standard for the cost of audit shall be calculated at a maximum of 70% of the standards set out in the Table above.

2. Management and use of the cost of review and approval of final accounts:

2.1- When conducting a review, the leading reviewing agency shall issue a written request to the project sponsor to settle the review costs and approve the final accounts according to the prescribed ratio under Clause 1, Article 18 above. The contents of the costs for the review work and the approval of final accounts include:

- Payment of remuneration to the direct members performing the review and approval of final accounts according to the quota or time stipulated by the reviewing agency;

- Payment to experts or consulting organizations to perform the audit of the project's final accounts upon the request of the leading reviewing agency, approval of final accounts (if any) according to the quota or time stipulated by the reviewing agency;

- Office expenses, office supplies, translation services, printing, conferences, seminars, purchase of computers or equipment serving the review and approval of final accounts and other expenses.

2.2. Due to the condition that the cost of review and approval of final accounts depends on the allocation of additional capital plans for projects, in cases where the cost of review and approval of final accounts has not been fully utilized in the year, it is permitted to transfer to the next year for implementation according to regulations.

3. The cost of review and approval of final accounts, the cost of auditing the final account report shall be included in other costs in the value of the final account of the project.

Article 19. Final Account Deadline

The time to prepare the final account report for completed projects is counted from the date of signing the handover certificate for use; The audit time is counted from the date of receiving all audit documents as prescribed; The review and approval of final accounts time is counted from the date of receiving all final account documents as prescribed in Section III, Part II of this Circular. The specific maximum time limit is as follows:

Article 20. Responsibilities in the final account of completed projects

1. Responsibilities of the Project Owner:

1.1. Prepare a complete final account report for completed projects in accordance with the content and within the time specified in this Circular;

1.2. Submit and manage the final account documents in compliance with regulations. Bear responsibility for the accuracy of the figures and the legality of the documents in the submitted final account documents;

1.3. Provide all relevant documents related to the final account of completed projects as required by the reviewing agency (audit);

1.4. Within six months from the date of the decision approving the final account of completed projects, the project sponsor must complete the settlement of debts and finalize the investment account procedures at the payment and loan-granting agency;

2. Responsibilities of contractors:

2.1. Implement the final account of the contract value signed with the project sponsor in accordance with regulations. Complete the final account documents within their scope of responsibility and bear responsibility for the accuracy of the figures and the legality of the related documents provided to the project sponsor to prepare the final account report for completed projects as prescribed;

2.2. Together with the project sponsor, resolve remaining issues according to the signed contract. Timely return the full amount of funds paid incorrectly by the project sponsor;

3. Responsibilities of the payment control and investment loan-granting agencies:

3.1. Check, reconcile, and confirm the investment loans and payments made to the project in accordance with state regulations; simultaneously provide comments, evaluations, and recommendations to the reviewing and approving agencies regarding the project's investment process according to Model No. 08/QTDA attached to this Circular;

3.2. Urge and guide the project sponsor to complete the procedures for settling debts and closing the accounts of approved final accounts projects;

3.3. Close the accounts of approved final accounts projects in accordance with regulations.

4. Responsibilities of the auditing units:

4.1. Auditing units and auditors must comply with the principles of independent auditing activities, have rights, obligations, and responsibilities as prescribed by laws on auditing when conducting audits of final accounts of completed projects;

4.2. Bear legal responsibility before the law, customers, and users of the audit reports of final accounts they have conducted.

5. Responsibilities of the reviewing and approving agencies:

5.1. Guide, inspect, and urge the project sponsors to timely and completely carry out the final account work of completed projects according to the prescribed forms and content;

5.2. Guide the project sponsors to resolve any issues arising during the final account process of completed projects;

5.3. Organize the review of the final account report of completed projects in accordance with the prescribed content and requirements. Bear legal responsibility for the results of the direct review based on the final account documents provided by the project sponsors;

5.4. Guide, urge, and create legal conditions for the project sponsors to complete the settlement of debts and close the accounts of the projects after approving the final accounts.

6. Responsibilities of ministries, sectors, and localities:

6.1. Guide, inspect, and urge the project sponsors and units under their management to carry out the final account work of completed projects in accordance with regulations;

6.2. Allocate sufficient funds to pay for projects that have been approved for final accounts;

6.3. Urge and create legal conditions for the project sponsors to complete the settlement of debts and close the accounts of the projects after approving the final accounts;

6.4. When deciding on investment or assigning tasks to project sponsors, do not assign new investment projects to sponsors who have three or more projects violating the regulation on the late preparation of final account reports by more than six months;

7. Responsibilities of financial agencies at all levels:

7.1. The Ministry of Finance is responsible to the Government for unified state management of final accounts of investment capital; guiding the final accounts of completed projects; inspecting the final accounts of investment capital and completed projects nationwide;

7.2. Financial authorities at all levels shall guide, urge, and inspect the settlement of investment capital and completed project settlements within their jurisdiction. In case of discovering errors in the examination and approval of settlement, they have the right to request the approving authority to adjust such settlement to be correct; and simultaneously handle or propose handling of violations according to the provisions of the law.

8. State organizations with state functions when conducting inspection, supervision, and audit work on completed projects must base on the regulations on examination of project completion settlement stipulated in this Circular and other relevant legal documents; bear legal responsibility for their inspection, supervision, and audit conclusions.

Article 21. Reporting and Inspection System

1. Reporting System:

1.1. For centrally-managed projects:

1.1.1. The project investor shall report on the situation of project completion settlement within their management scope periodically every six months and annually, sending it to the superior agency of the investor and the main examining agency of the settlement according to Model No. 12/QTDA attached to this Circular no later than July 10 for the mid-year report and January 15 of the following year for the annual report.

1.1.2. The main examining agency of the settlement which is subordinate to the Ministry or sector shall report on the situation of project completion settlement within their management scope periodically every six months and annually according to Model No. 11/QTDA attached to this Circular, sending it to the managing Ministry or sector no later than July 15 for the mid-year report and January 20 of the following year for the annual report.

1.1.3. Ministries, agencies equivalent to ministries, government agencies, state-owned corporations, and state-owned joint-stock companies shall report on the situation of project completion settlement within their management scope periodically every six months and annually according to Model No. 11/QTDA attached to this Circular, sending it to the Ministry of Finance no later than July 20 for the mid-year report and January 30 of the following year for the annual report.

1.2. For locally-managed projects:

1.2.1. Project investors and project management boards shall report on the situation of project completion settlement within their management scope periodically every six months and annually, sending it to the superior agency of the investor and the main examining agency of the settlement according to Model No. 12/QTDA attached to this Circular no later than July 10 for the mid-year report and January 15 of the following year for the annual report;

1.2.2. District, county, and provincial city finance planning departments shall report on the situation of project completion settlement within their management scope periodically every six months and annually according to Model No. 11/QTDA attached to this Circular, sending it to the provincial finance department no later than July 15 for the mid-year report and January 20 of the following year for the annual report;

1.2.3. Provincial finance departments shall report on the situation of project completion settlement within local management scope periodically every six months and annually according to Model No. 11/QTDA attached to this Circular, sending it to the Ministry of Finance no later than July 20 for the mid-year report and January 30 of the following year for the annual report;

1.3. Annually, the Ministry of Finance shall compile the situation of project completion settlement nationwide and report to the Government according to Model No. 11/QTDA attached to this Circular.

2. Inspection schedule:

2.1. Financial authorities at all levels: Shall regularly or unexpectedly inspect the implementation of project completion settlement work of units under their management; promptly correct any mistakes, handle violations, and commend units that perform well.

2.2. The Ministry of Finance: Shall regularly or unexpectedly inspect the implementation of project completion settlement work of ministries, sectors, and localities nationwide; promptly correct any mistakes, handle violations, and commend units that perform well.

Article 22. Handling Violations

1. Organizations and individuals who conduct settlement examination in violation of the provisions of this Circular causing wastage of state investment capital: shall be handled according to the provisions of Article 29 of Decree No. 84/2006/NĐ-CP dated August 18, 2006 of the Government on compensation for losses, disciplinary measures, and administrative penalties for thrift and waste prevention.

2. Project investors (project management boards) who violate the settlement system of completed projects: shall be handled according to the provisions of Article 16 of Decree No. 23/2009/NĐ-CP dated February 27, 2009 of the Government on administrative penalties for violations in construction activities; real estate business; exploitation, production, and trading of building materials; management of technical infrastructure works; housing development and office management.

3. Contractors who violate the settlement system of completed projects: shall be handled according to the provisions of Article 21 of Decree No. 23/2009/NĐ-CP dated February 27, 2009 of the Government on administrative penalties for violations in construction activities; real estate business; exploitation, production, and trading of building materials; management of technical infrastructure works; housing development and office management.

4. Competent authority and procedures for imposing penalties for the acts prescribed in Clause 1 above shall be in accordance with the provisions of Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government detailing the implementation of certain articles of the Administrative Violation Handling Ordinance 2002 and the Ordinance Amending and Supplementing Certain Articles of the Administrative Violation Handling Ordinance 2008. Competent authority and procedures for imposing penalties for the acts prescribed in Clauses 2 and 3 above shall be in accordance with the provisions of Decree No. 23/2009/NĐ-CP dated February 27, 2009 of the Government on administrative penalties for violations in construction activities; real estate business; exploitation, production, and trading of building materials; management of technical infrastructure works; housing development and office management..

5. In cases where violations in Clauses 1, 2, and 3 above exceed the scope of administrative penalty, they must be handled according to current laws.

PART III – IMPLEMENTING PROVISIONS

Article 23. Effectiveness

This Circular takes effect from April 1, 2011, replacing Circular No. 33/2007/TT-BTC dated April 9, 2007 guiding final settlement of projects completed from state capital and Circular No. 98/2007/TT-BTC dated August 9, 2007 amending and supplementing certain points of Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance guiding final settlement of projects completed from state capital.

Article 24. Implementation organization:

1. Projects implemented before the effective date of Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on management of construction project investment costs, if the construction contract does not clearly specify the form of contract price for conducting audit of investment costs as stipulated in Clause 1.3.2, Point 1.3, Clause 1, Article 16 of this Circular, shall apply the method of auditing investment costs as stipulated in Clause 2.1.3, Point 2.1, Clause 2, Section VI, Part II of Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance guiding final settlement of projects completed from state capital.

2. Projects currently being settled will be handled as follows:

Sub-projects, works, and parts of works that have submitted final settlement project completion files to the auditing authority before the effective date of this Circular shall uniformly follow the provisions of Circular No. 33/2007/TT-BTC dated April 9, 2007 guiding final settlement of projects completed from state capital and Circular No. 98/2007/TT-BTC dated August 9, 2007 amending and supplementing certain points of Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance guiding final settlement of projects completed from state capital; remaining sub-projects, works, and parts of works shall uniformly follow the provisions of this Circular.

3. It is encouraged for organizations and individuals to apply this Circular to prepare final settlement reports and audit final settlement of completed projects that are not within the scope of adjustment of this Circular.

During implementation, if there are any difficulties, please reflect them to the Ministry of Finance for timely resolution./.

GUIDANCE ON PREPARATION OF FINAL SETTLEMENT REPORT FORMS

Attached to Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance on final settlement of projects completed from state capital.

Form No. 01/QTDA:

I/ Investment Capital Sources: Reflects the investment capital sources of the project (work, part of work) according to each source of capital, specifically:

- Column 1: Record all investment capital sources of the project.

- Column 2: Record according to the approved investment capital amount in the Project Investment Decision.

- Column 3: Record according to the figures confirmed by the payment control agency in Form 08/QTDA.

- Column 4: Equal to the value (Column 2) minus the paid capital amount (Column 3).

II/ Summary of Investment Costs Proposed for Final Settlement:

- Column 3: Record the corresponding value in the approved budget decision or adjusted budget decision.

- Column 4: Record the investment costs proposed for final settlement by the project sponsor (before audit).

- Column 5: Record the value of Column 4 minus Column 3.

III/ Investment Costs Not Included in the Value of Assets Formed Through Investment: Reflects all expenses incurred but due to objective reasons, the competent authority has allowed not to include in the value of assets formed through investment.

IV/ Value of Assets Formed Through Investment:

- Column 3: Reflects the total value of assets based on actual costs.

- Column 4: Reflects the total value of assets based on converted prices up to the time of asset handover for production and use (In cases where conversion is not required, record the actual value).

Form No. 02/QTDA:

Reflects related documents concerning the policy of implementing investment, investment costs proposed for final settlement by the project sponsor. Column 5: Record the approved total value in documents such as total investment cost, budget, total value of tender packages, etc.

Form No. 03/QTDA:

Reflects the implementation of investment capital over the years as the basis for converting investment capital for final settlement of the project.

- Column 3 records figures according to the annual investment capital allocation decisions.

- Column 4 records figures of payments made by the project sponsor.

Form No. 04/QTDA:

Reflects investment costs already incurred and proposed for final settlement of each work (part of work) when the project includes two or more works (parts of work).

- From Column 4 to Column 9: Directly related costs for each work or part of work should be recorded under that work or part of work. Common costs for the entire project should be recorded separately under the total amount.

Form No. 05/QTDA:

Reflects all assets formed through investment in terms of quantity and original cost; detailed according to each unit receiving and using the assets.

Form No. 06/QTDA:

Reflects all movable assets handed over for production and use upon completion of the work (part of work) in terms of quantity and unit price based on actual costs. If Column IV of Form No. 01/QTDA records the total movable assets as zero, then this form need not be prepared.

Form No. 07/QTDA:

Reflects the actual value achieved, payment status, and receivables of the project; detailed according to each individual or unit participating in the project from the start of the contract until the final settlement report is closed.

Form No. 08/QTDA:

Prepare separate reconciliation confirmation sheets for each investment capital source, for each funding, lending, and payment agency of the project.

Form No. 09/QTDA:

This form applies to projects planning the use of development investment funds and preparatory investment costs cancelled according to the decision of the competent authority; recorded similarly to Form No. 01/QTDA mentioned above.

Form No. 10/QTDA: Decision Approving Final Settlement of Completed Projects:

Article 2 - Investment Results:

1- Investment Capital:

- Column 2: Record according to the approved value in the final settlement decision;

- Column 3: Record according to the audit result of the investment capital;

- Column 4: Record the amount of capital to be allocated for payment according to the approved settlement value, the data being the difference between the figures in Column 2 and Column 3.

2- Investment Costs:

- Column 2: Record the corresponding value in the budget approval decision or the adjusted budget approval decision;

- Column 3: Record the approved settlement value.

4 - Reflect the value of assets formed through investment according to the approved value; include a detailed asset value list by project managed and used by the investor or transferred to another entity for management and use.

Article 3 - Responsibilities of the Investor and Related Units

1- Investor's responsibility: Specify the investor's responsibility for settling the source and paying off debts according to the approved investment settlement value.

2- Responsibility of units receiving assets: Clearly state the name of each unit receiving assets responsible for increasing capital and assets according to the approved conversion value on the date of receipt and handover.

3- Responsibility of related units: Clearly specify each related unit.

Form No. 11/QTDA:

For the auditing agency to compile a summary report on the completion of project settlements within its jurisdiction (excluding items or works under the project).

- Part B of Points 1, 2, and 3 only record the total number of projects in Groups A, B, and C according to subordinate units, without listing individual projects.

- The time limit for reporting is up to June 30 for semi-annual reports and up to December 31 for annual reports.

- The time limit for calculating delayed settlement approval is the date of receiving complete files according to regulations plus the permitted period specified in Article 19 of this Circular until June 30 for semi-annual reports or until December 31 for annual reports.

- The time limit for calculating delayed submission of settlement is the date of handover and put into use plus the permitted period specified in Article 19 of this Circular until June 30 for semi-annual reports or until December 31 for annual reports (if an audit of the settlement report is required, additional audit time is added).

Form No. 12/QTDA:

- For investors to report details according to the project list (excluding items or works under the project).

- The time limit for inclusion in the report and calculation of delays is as directed in Form No. 11/QTDA.