Circular No. 31/2016/TT-BNNPTNT stipulates the procedures for using operational funds with investment characteristics; purchasing assets, goods, and services to maintain regular operations; and handling state assets at administrative agencies and public service units under the Ministry of Agriculture and Rural Development.

CIRCULAR

Regulations on the procedures for using capital for public services with investment characteristics; purchasing assets, goods, and services to maintain regular operations; handling state assets at administrative agencies and public service units under the management of the Ministry of Agriculture and Rural Development.

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Pursuant to the Law on Bidding No. 43/2013/QH13 dated November 26, 2013;

Pursuant to the Construction Law No. 50/2014/QH13 dated June 18, 2014;

Pursuant to the Law on Public Investment No. 49/2014/QH13 dated June 18, 2014;

Pursuant to Decree No. 199/2013/NĐ-CP dated November 26, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decree No. 63/2014/NĐ-CP dated June 26, 2014 of the Government detailing implementation of certain provisions of the Law on Bidding regarding selection of contractors;

Based on Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on managing construction investment costs.

Based on Decree No. 37/2015/NĐ-CP dated April 22, 2015 of the Government detailing construction contracts.

Based on Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project management for construction investment.

Based on Decree No. 136/2015/NĐ-CP dated December 31, 2015 of the Government guiding the implementation of certain provisions of the Law on Public Investment.

Based on Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on State Asset Management and Usage; Decree No. 04/2016/NĐ-CP dated January 6, 2016 of the Government amending and supplementing certain articles of Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on State Asset Management and Usage.

Pursuant to the proposal of the Director of the Department of Finance;

The Minister of Agriculture and Rural Development issues this Circular to regulate the procedures for using capital for public services with investment characteristics; purchasing assets, goods, and services to maintain regular operations; handling state assets at administrative agencies and public service units under the management of the Ministry of Agriculture and Rural Development.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular regulates the procedures for using capital for public services with investment characteristics; purchasing assets, goods, and services to maintain regular operations; handling state assets at administrative agencies and public service units under the management of the Ministry of Agriculture and Rural Development.

2. This Circular does not apply to the following cases:

a) Construction of physical infrastructure, purchase of assets, goods, and services under construction investment expenses.

b) National centralized procurement catalogues and centralized procurement catalogues within the Ministry of Agriculture and Rural Development.

c) Handling of assets from projects, programs, and proposals upon completion as stipulated in Circular No. 198/2013/TT-BTC dated December 20, 2013 of the Ministry of Finance on the management, usage, and disposal of assets from projects funded by state capital.

d) Disposal of assets formed through the implementation of science and technology and environmental tasks as stipulated in Joint Circular No. 16/2015/TTLT-BKHCN-BTC dated September 1, 2015 of the Ministry of Science and Technology and the Ministry of Finance guiding the management and disposal of assets formed through the implementation of science and technology tasks funded by the state budget.

Article 2. Applicability

This Circular applies to all General Departments, Bureaus, Divisions, the Office of the Ministry, the Inspectorate of the Ministry, public service units directly under the Ministry of Agriculture and Rural Development (hereinafter referred to as budgetary units), and related organizations and individuals.

Article 3. Principles and Conditions for Implementation

1. The use of capital for public services with investment characteristics and the purchase of assets, goods, and services must be carried out in accordance with the Law on Thrift and Anti-Waste.

2. The use of capital for public services with investment characteristics; purchasing assets, goods, and services to maintain regular operations, the head of the unit must base it on the approved budget plan by the Ministry.

3. Capital for public services with investment characteristics can only be used for regular maintenance, renovation, and upgrading of existing physical facilities (including the construction of new small-scale projects with simple technical requirements that comply with approved planning).

4. It is not allowed to use the funds specified in Clauses 1, 2, 3, and 4 of Article 5 of this Circular to repair, renovate, upgrade physical facilities, purchase assets, goods, and services to maintain regular operations associated with construction investment projects.

5. The proceeds from the sale or liquidation of assets, after deducting reasonable related expenses, shall be managed and used according to the provisions of Articles 24, 31, and 48 of Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on State Asset Management and Usage (hereinafter referred to as Decree No. 52/2009/NĐ-CP).

Chapter II

PROCEDURES FOR USING CAPITAL FOR PUBLIC SERVICES WITH INVESTMENT CHARACTERISTICS AND PURCHASING ASSETS, GOODS, AND SERVICES TO MAINTAIN REGULAR OPERATIONS

Section 1. ESTABLISHING PLANS AND INVESTMENT FUNDS

Article 4. Establishing and Approving Plans for Using Funds

1. Based on the annual budget estimate and other sources of capital, units shall establish plans to use funds for investment from operational capital with investment characteristics and for purchasing assets, goods, and services to maintain regular operations as stipulated in the Appendix attached to this Circular; submit to the Ministry for approval before April 1st each year.

In cases where additional funds are supplemented or adjustments are needed during the year for investment from operational capital with investment characteristics and for purchasing assets, goods, and services to maintain regular operations, units shall prepare estimates and submit to the Ministry for approval of plan adjustments for fund usage before December 31st each year.

2. Authorities and units shall approve plans for using various sources of funds.

a) Entrust the Department of Finance to approve plans for using all sources of funds for budgetary units (excluding budgetary units directly under the General Department);

b) General Departments: Water Resources, Forestry, Fisheries (hereinafter referred to as General Departments) shall approve plans for using funds for budgetary units directly under their respective General Departments;

c) Entrust authorities and units entrusted by the Ministry to take the lead in implementing target programs to approve plans for using funds as stipulated in Clause 2 of Article 5 of this Circular.

Article 5. Sources of Funds for Investment, Purchasing Assets, Goods, and Services, including:

1. Regular expenditure from the state budget allocated in the annual budget estimate (including adjusted and supplementary sources within the year).

2. Capital from operational programs implementing target programs in cases where they are implemented without forming investment projects.

3. Official Development Assistance (ODA) funds: Loans and non-repayable aid balanced in regular expenditure from the state budget; sources of assistance and sponsorship from foreign non-governmental organizations, individuals, and organizations both domestically and internationally that belong to the state budget (except in cases where international treaties on ODA and preferential loans to which the Socialist Republic of Vietnam is a member provide otherwise).

4. Revenue from fees and charges used according to laws on fees and charges.

5. Funds from operating revenues, development activity funds, reward funds, welfare funds, and other lawful funds as stipulated by law at public service establishments.

6. Other lawful revenues as prescribed (if any).

Section 2. PROCEDURES FOR IMPLEMENTING OPERATIONAL CAPITAL WITH INVESTMENT CHARACTERISTICS

Article 6. Economic and Technical Reports for Construction Investment

1. Prepare Economic and Technical Reports for Construction Investment for construction investment projects from operational capital with a total investment amount below 15 billion VND.

2. Documents for reviewing Economic and Technical Reports for Construction Investment and the review of Economic and Technical Reports for Construction Investment shall be carried out in accordance with Article 13 of Government Decree No. 59/2015/ND-CP dated June 18, 2015, on project management for construction investment (hereinafter referred to as Decree No. 59/2015/ND-CP).

Article 7. Authority to Review and Approve Economic and Technical Reports for Construction Investment

1. General Departments shall review and approve Economic and Technical Reports for Construction Investment for budgetary units directly under their respective General Departments from the sources of capital as stipulated in Article 5 of this Circular.

2. For the sources of capital as stipulated in Clauses 1, 2, 3, and 4 of Article 5 of this Circular:

a) The Department of Construction Management shall review and approve Economic and Technical Reports for Construction Investment (excluding budgetary units directly under General Departments), including:

- Projects with approved funding for the year of three billion VND or more for budgetary units directly under the Ministry;

- Projects changing the main load-bearing structure of the project; upgrading existing facilities of units altering the approved land use plan (regardless of the total investment amount) for budgetary units directly under the Ministry.

b) Heads of budgetary units directly under the Ministry (excluding budgetary units directly under General Departments) shall review and approve Economic and Technical Reports for Construction Investment with approved funding for the year under three billion VND (excluding projects: changing the main load-bearing structure of the project; altering the approved land use plan).

3. For the sources of capital as stipulated in Clauses 5 and 6 of Article 5 of this Circular:

a) The Department of Construction Management shall review and approve Economic and Technical Reports for Construction Investment (excluding budgetary units directly under General Departments) for projects changing the main load-bearing structure of the project; altering the approved land use plan for budgetary units directly under the Ministry;

b) Heads of budgetary units directly under the Ministry (excluding budgetary units directly under General Departments) shall review and approve Economic and Technical Reports for Construction Investment according to regulations (excluding projects: changing the main load-bearing structure of the project; altering the approved land use plan).

Article 8. Adjustment of Economic and Technical Investment Construction Reports

1. Time for adjustment: To be implemented within the fiscal year.

2. The adjustment of Economic and Technical Investment Construction Reports as stipulated in point b and point d, Clause 1, Article 61 of the Construction Law 2014 shall be specified as follows:

a) The head of the unit must have a plan to explain and prove the additional benefits brought about by the adjustment of the project including: financial benefits, socio-economic benefits; benefits during the construction phase;

b) Adjusting the basic design of the project when changes in the construction planning directly affect the location, route, scale, and usage function of the project;

c) Adjustments to the project due to inflation in construction costs shall be carried out in accordance with Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on managing construction investment costs.

3. The review and approval of adjustments to Economic and Technical Investment Construction Reports shall be conducted in accordance with Articles 6 and 7 of this Circular.

Article 9. Management of Construction Works and Completion of Construction for Project Operation

The budgetary unit head shall manage the construction works and complete the construction for project operation in accordance with the provisions from Article 31 to Article 39 of Decree No. 59/2015/NĐ-CP.

Article 10. Final Settlement of Operating Funds with Investment Characteristics

1. When the project or component project is accepted and handed over for use, the budgetary unit head must prepare a final settlement report for approval by the competent authority. The acceptance and handover of the project for use must be completed within the fiscal year;

The maximum time for submitting the final settlement report of operating funds with investment characteristics is three months from the date of signing the handover certificate for use. The maximum time for reviewing and approving the final settlement is one month from the date the reviewing agency receives all the submitted documents from the budgetary unit.

2. The final settlement report of completed projects shall be prepared in accordance with the guidelines set forth in Circular No. 09/2016/TT-BTC dated January 18, 2016 of the Ministry of Finance regarding the final settlement of completed projects funded by state capital and the final settlement of completed projects funded by state capital managed by the Ministry of Agriculture and Rural Development.

3. Authority to approve the final settlement of completed projects:

a) Departments shall approve the final settlement for subordinate budgetary units;

b) The Department of Finance shall approve the final settlement for all subordinate budgetary units under the Ministry (excluding those under Departments).

Section 3. PROCEDURES FOR PROCUREMENT OF ASSETS, GOODS, AND SERVICES TO MAINTAIN REGULAR OPERATIONS

Article 11. Authority to Decide on Procurement of Assets, Goods, and Services to Maintain Regular Operations

1. Authority to decide on procurement of assets, goods, and services (hereinafter referred to as asset procurement) to maintain regular operations from the sources of funds specified in Clause 1, Clause 2, Clause 3, and Clause 4 of Article 5 of this Circular:

a) The Minister of Agriculture and Rural Development decides on asset procurement: houses, land, specialized vehicles equipped with specialized equipment, specially constructed vehicles according to professional requirements; perennial orchards, original livestock and poultry breeding stock, assets under the National Target Program;

b) Authority to decide on asset procurement to maintain regular operations with total approved funding in the year of one billion dong or more (excluding assets specified in point a, Clause 1 of this Article):

The Department of Finance shall approve the list and value of asset procurement for all investment funds (excluding science and technology and environmental operating funds; program target sources) for subordinate budgetary units under the Ministry (excluding those under Departments);

The Department of Science and Technology and Environment shall approve the list and value of asset procurement from science and technology and environmental operating funds for subordinate budgetary units under the Ministry (excluding those under Departments);

Departments shall approve the list and value of asset procurement for subordinate budgetary units under the Departments in accordance with the approved plan;

The agency or unit entrusted by the Ministry to manage the program target source shall implement the approval of the list and value of asset procurement for budgetary units.

c) Heads of budgetary units shall base on the approved budget plan to approve the list and value of asset procurement to maintain regular operations with total approved funding in the year under one billion dong (excluding: houses, land, specialized vehicles equipped with specialized equipment, specially constructed vehicles according to professional requirements; perennial orchards, original livestock breeding stock, assets under the National Target Program).

2. Authority to decide on asset procurement to maintain regular operations; activities of public service or business services of the unit from the sources of funds specified in Clause 5 and Clause 6 of Article 5 of this Circular shall be decided by the heads of budgetary units based on the approved budget plan (excluding assets such as: houses, land, specialized vehicles equipped with specialized equipment, specially constructed vehicles according to professional requirements; perennial orchards, original livestock breeding stock, assets under the National Target Program).

3. The head of the organization responsible for scientific and technological and environmental tasks shall procure assets to carry out scientific and technological and environmental tasks according to the approved budget of the project or program.

Article 12. Adjusting the list and value of property, goods, and services procurement

1. In cases where the list of assets or procurement value is supplemented or changed, thereby altering the total approved budget for the year, the head of the budget unit shall report to the person authorized to approve asset procurement for approval of the adjustment.

2. Based on the approved annual budget, the head of the budget unit may adjust the detailed budget for each item up to a maximum of 10%. For adjustments exceeding 10%, such adjustments can only be implemented after obtaining the opinion of the person authorized to approve asset procurement.

3. Based on investment needs and the approved equipment list, the budget unit is permitted to purchase additional assets from the equipment list that has been approved using funds saved after bidding.

The surplus funds of the project (or funds saved after bidding) shall not be used to implement new procurement investments without the approval of the person authorized to approve asset procurement for the list and value.

4. Adjustment time: Within the fiscal year.

Article 13. Inspection and settlement

Inspection and settlement shall be carried out in accordance with current regulations.

Section 4. PROCUREMENT CONTRACTOR SELECTION WORK

Article 14. Preparing and submitting for approval the plan for selecting contractors

The heads of subordinate budget units under the Ministry are responsible for organizing the preparation of the plan for selecting contractors in accordance with Articles 33 to 36 of the Bidding Law No. 43/2013/QH13 and Article 4 of Circular No. 39/2015/TT-BNNPTNT dated October 20, 2015 of the Ministry of Agriculture and Rural Development stipulating certain contents regarding the work of selecting contractors for construction projects funded by public investment managed by the Ministry of Agriculture and Rural Development (hereinafter referred to as Circular No. 39/2015/TT-BNNPTNT).

Article 15. Reviewing and approving the plan for selecting contractors

1. The authority to review and approve the plan for selecting contractors is vested in the person authorized to review and approve the economic-technical report on construction investment; the person authorized to approve asset procurement.

2. The model document for submitting the plan for selecting contractors for approval; the model report for reviewing the plan for selecting contractors and the model Decision for approving the plan for selecting contractors as prescribed in Circular No. 10/2015/TT-BKHĐT dated October 26, 2015 of the Ministry of Planning and Investment detailing the plan for selecting contractors.

Article 16. Organizing the selection of contractors, negotiating, signing, and managing contracts

The heads of subordinate budget units under the Ministry organize the selection of contractors, negotiation, signing, and management of contracts in accordance with Articles 6 to 10 of Circular No. 39/2015/TT-BNNPTNT.

Chapter III

DISPOSAL OF STATE ASSETS

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

1. Recovery and sale of state assets.

a) The recovery and sale of assets serving as office premises and other assets attached to land (including land use rights) shall be decided by the Ministry of Finance;

b) The Minister decides on the recovery and sale of assets that are not office premises and other assets attached to land within the scope of management of the Ministry of Agriculture and Rural Development.

2. Transfer of state assets.

a) The Minister decides on the transfer of state assets including houses, land, specialized vehicles equipped with dedicated equipment, specially constructed vehicles according to professional requirements; perennial orchards, original livestock and poultry breeding stock, assets under the National Target Program;

b) For the remaining assets, the following applies:

The Financial Department shall decide on the transfer of assets between budget units directly under the Ministry (excluding budget units directly under General Departments).

Each General Department shall decide on the transfer of assets between budget units directly under the General Department.

3. Liquidation of state assets.

a) The Minister decides on the liquidation of state assets including houses, land, specialized vehicles equipped with dedicated equipment, specially constructed vehicles according to professional requirements; perennial orchards, original livestock and poultry breeding stock, assets under the National Target Program;

b) For the remaining assets (excluding houses, transportation means, perennial orchards, original livestock and poultry breeding stock) with a book value of 500 million dong or more per asset:

The Financial Department shall decide on the liquidation of assets for budget units directly under the Ministry (excluding budget units directly under General Departments).

Each General Department shall decide on the liquidation of assets for budget units directly under the General Department;

c) For assets with a book value of less than 500 million dong per asset (excluding houses, land, specialized vehicles equipped with dedicated equipment, specially constructed vehicles according to professional requirements; perennial orchards, original livestock and poultry breeding stock, assets under the National Target Program), the head of the budget unit shall decide on the liquidation of assets in accordance with the regulations.

Article 18. Procedures for handling state assets

1. The procedures for recovering, reallocating, selling, and liquidating state assets shall be carried out in accordance with the provisions of Articles 14, 17, 21, and 28 of Decree No. 52/2009/ND-CP.

2. The list of state assets proposed for handling (for reallocation, sale, or liquidation) shall be implemented in accordance with Article 2 of Circular No. 09/2012/TT-BTC dated January 19, 2012, of the Ministry of Finance, amending and supplementing Circular No. 245/2009/TT-BTC dated December 31, 2009, of the Ministry of Finance, which provides certain contents for implementing Decree No. 52/2009/NĐ-CP.

Chapter IV

IMPLEMENTING PROVISIONS

Article 19. Responsibility for Implementation

1. Heads of budgetary units.

a) Organize the strict implementation of this Circular and bear responsibility before the Minister for organizing the implementation of the unit's tasks in preparing budgets from funds with investment characteristics; purchasing assets, goods, and services to maintain regular operations;

b) Report periodically each year to the Ministry (through the Department of Finance) on the management and use of assets together with the annual final accounts report, serving as a basis for inspection, supervision, and consolidation of investment and asset procurement activities of agencies and units;

c) When the construction project is completed and approved for settlement, if the settled amount is lower than the amount already paid to the contractor or supplier, the unit shall be responsible for recovering the excess payment from the contractor or supplier and returning it to the State budget;

d) Maintain accounting records to track and record increases or decreases in the value of fixed assets and capital forming fixed assets in accordance with the law.

đ) During the implementation process, if the head of the budgetary unit violates current regulations of the State in the field of planning and investment, causing delays, losses, or waste, they will be punished according to the law. If economic damage occurs, compensation must be provided. The head of the unit (Project Owner) shall bear joint liability if contractors, consulting units, or experts violate the law.

2. Directors of General Departments, Heads of Departments: Finance, Science and Technology and Environment, Organization and Cadres, and Director of the Construction Management Department have the responsibility to direct, guide, and inspect budgetary units under the Ministry to implement this Circular.

Article 20. Effective Date

1. This Circular takes effect from December 1, 2016, and replaces Circular No. 45/2013/TT-BNNPTNT dated October 28, 2013, of the Ministry of Agriculture and Rural Development, which stipulates the procedures for investment from funds with investment characteristics; purchasing assets, goods, and services to maintain regular operations; and handling state assets at administrative agencies and subordinate public institutions under the Ministry of Agriculture and Rural Development.

2. During implementation, if the regulatory legal documents cited for application in this Circular are amended, supplemented, or replaced by new documents, then the new documents shall be applied.

3. During implementation, if any issues arise or difficulties occur, relevant agencies and units shall promptly report and propose solutions to the Ministry of Agriculture and Rural Development for research and appropriate amendments and supplements./.