Circular No. 33/2007/TT-BTC guiding the final settlement of completed projects funded by state capital

CIRCULAR

Guidelines for final settlement of completed projects funded by state capital

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Pursuant to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management for construction works; Decree No. 112/2006/NĐ-CP dated September 29, 2006 of the Government amending and supplementing certain articles of Decree No. 16/2005/NĐ-CP on project management for construction works;

Pursuant to Decree No. 126/2004/NĐ-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure management in urban areas, and house usage management;

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

The Ministry of Finance provides guidelines for final settlement of completed projects funded by state capital as follows:

Part I

GENERAL PROVISIONS

1. Scope and scope of application: All investment projects using state capital, including state budget capital, state development credit funds, government and local government bonds, state-guaranteed credit, development investment capital of state-owned corporations, and limited liability companies with one member, must be settled according to this Circular after completion.

Projects decided to invest by the People's Committee Chairmen of communes and towns and projects assigned by competent authorities to the People's Committees of communes and towns as investors shall follow the Circular guiding the management of basic construction investment capital at commune and town levels; this Circular does not apply.

2. Investment capital subject to final settlement includes all legitimate costs incurred during the investment process to put the project into operation. Legitimate costs are those carried out within the approved design and estimate, 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 by competent authorities.

The final settlement report of completed projects must accurately determine the total investment costs incurred; clearly define the sources of investment capital; investment costs that are not allowed to be included in the value of assets formed through the project; the value of assets formed through the project: fixed assets and current assets; while ensuring compliance with the content, time frame, review, and approval as prescribed.

3. For national key projects and Group A projects comprising multiple component projects or sub-projects, if each component project or sub-project operates independently upon completion or is implemented according to phased investment plans recorded in the feasibility study report or investment report, each component project or sub-project will be settled as an independent investment project.

4. For projects with multiple components where each component or group of components can be put into operation upon completion, the investor shall prepare a final settlement report for each component, submit it for approval by the competent authority. The proposed settlement value of each component includes construction costs, equipment procurement and installation costs, and other directly related costs. After the entire project is completed, the investor must conduct a comprehensive final settlement of the entire project and determine the allocation of common costs of the project to each component for approval by the competent authority.

5. For investment projects utilizing foreign capital (state-guaranteed capital, loans, grants from foreign governments, organizations, and individuals), upon completion, they must be settled according to this Circular and relevant international treaty provisions (if applicable).

6. For projects utilizing Official Development Assistance (ODA) funds comprising multiple components, including basic construction investment cost components and administrative and public service cost components, the settlement shall be as follows:

6.1. Basic construction investment cost components shall be settled according to specific provisions of this Circular;

6.2. Administrative and public service cost components shall be settled according to specific provisions of the administrative and public service accounting system.

7. For projects of Vietnamese representative offices abroad, projects requiring confidentiality for national security, and projects purchasing intellectual property rights, the final settlement of completed projects shall be conducted based on separate decisions of the Prime Minister, based on proposals and recommendations of the relevant agencies.

8. Through the final settlement of completed projects, the results of the investment process are evaluated, production capacity is determined, additional asset values created by the investment are identified; responsibilities of the investors, contractors, funding and lending agencies, payment control agencies, and relevant state management agencies are clarified; and experiences are drawn to continuously improve state policies and enhance the effectiveness of investment capital management nationwide.

Part II:

SPECIFIC PROVISIONS

I. CONTENT OF THE FINAL ACCOUNT REPORT

1. Sources of investment capital for the project up to the date of closing the books for the final account report (in detail according to each source of investment capital).

2. Detailed proposed investment costs for settlement according to structure: construction, equipment purchase and installation, other costs; detailed according to project items and cost categories.

3. Determination of investment costs resulting in losses that are not included in the value of assets formed through investment.

4. Determination of the quantity and value of assets formed through investment of the project, works, or project components; detailed according to asset groups and types, fixed assets, and current assets based on actual costs. For projects with an implementation period exceeding 36 months from the start date to the acceptance and handover date for operation, investment capital must be converted to the price level at the time of handover and operation commencement.

- 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 asset; common costs related to multiple fixed assets are allocated proportionally based on 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 user units, it is necessary to fully specify the list and value of assets handed over to each unit.

II. SAMPLES OF THE FINAL ACCOUNT REPORT

1. For completed projects: including forms numbered 01, 02, 03, 04, 05, 06, 07, 08 /QTDA attached as Appendix No. 02 to this Circular.

2. For completed project components:

Including forms numbered 01, 02, 03, 04, 05, 06 /QTDA attached as Appendix No. 02 to this Circular.

3. For completed planning projects; for investment preparation costs of cancelled projects pursuant to the decision of the competent authority:

Including forms numbered 07, 08, 09/QTDA attached as Appendix No. 02 to this Circular.

4. Recipients of the final account report:

- Audit and approval agencies;

- Direct superior authorities of the investor (if applicable);

- Capital-providing, lending, and payment agencies.

III. DOCUMENTS FOR REVIEW AND APPROVAL OF FINAL ACCOUNTS

(One set sent to the audit and approval agency)

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

1.1. Investor's request for approval of final accounts (original).

1.2. Final account report of the completed project as stipulated in Section II, Part II of this Circular (original).

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

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

1.5. Minutes of partial work completion acceptance, construction phase acceptance, equipment installation acceptance; minutes of overall project, work, or component completion acceptance for use (original or copy).

1.6. All A-B volume settlement statements (original).

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

1.8. Inspection conclusions, inspection minutes, audit reports of the supervisory, inspection, and state audit agencies (if any); accompanied by a report on the implementation of these reports by the investor.

During the audit process, the investor is responsible for presenting to the audit agency all documents serving the audit of final accounts: completion files, construction diaries, bidding files, design estimates, supplementary estimates, and related payment documents.

2. For planning projects; investment preparation costs of cancelled projects pursuant to the decision of the competent authority:

2.1. Investor's request for approval of final accounts (original).

2.2. Final account report as stipulated in Section II, Part II of this Circular (original).

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

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

During the audit process, the investor is responsible for presenting other related documents when requested by the final account audit agency.

IV. AUTHORITY TO APPROVE AND AUDITING AGENCIES FOR FINAL ACCOUNTS

1. Authority to approve final accounts:

1.1. The Minister of Finance approves final accounts of projects decided by the National Assembly and permitted to invest, and approved by the Prime Minister;

1.2. Ministers, Heads of Ministries equivalent to ministries, central agencies under the Government, and central agencies of mass organizations; Chairmen of provincial People's Committees, municipalities directly under the Central Government approve final accounts of Group A, B, and C projects using state budget funds; authorized or delegated to approve final accounts of Group B and C projects to subordinate agencies.

1.3 For remaining projects, the person deciding to invest is the authority to approve final accounts of completed projects.

2. Auditing agencies for final accounts of completed projects:

- For projects decided to invest by the National Assembly and approved by the Prime Minister: The Ministry of Finance audits;

- For projects using state budget funds managed by central agencies: the authority approving final accounts assigns functional units under their management to organize audits.

- For projects using state budget funds managed by provincial and centrally-administered city governments: Provincial Departments of Finance organize audits.

- For projects using state budget funds managed by district, county, and city-level governments within provinces: District Financial Departments organize audits.

- For remaining projects, the authority approving final accounts assigns functional units under their management to organize audits.

If necessary, the authority approving final accounts may establish a working group to conduct pre-approval audits; the composition of the final account audit working group includes members from related units.

V. AUDIT OF FINAL ACCOUNTS OF COMPLETED PROJECTS

1. All national key projects, group A projects, and group B projects utilizing state capital must undergo final audit before being submitted to the competent authority for examination and approval upon completion; other projects shall be subject to final audit as required by the competent authority.

2. The project sponsor shall organize the selection of auditing contractors in accordance with the provisions of the Law on Bidding and enter into an audit contract for final settlement of completed projects in compliance with the Ordinance on Economic Contracts.

3. Auditing contractors for final settlement must be auditing enterprises established and operating in accordance with Vietnamese laws on enterprise establishment and operation and Decree No. 105/2004/NĐ-CP dated March 30, 2004 of the Government on independent auditing.

4. Auditing contractors conducting final settlement audits and preparing audit reports must comply with the Accounting Standards for Final Settlement Reports of Completed Investment Projects issued by the Ministry of Finance and the specific contents stipulated in Point 2, Section VI below.

VI. REVIEW OF FINAL SETTLEMENT OF COMPLETED PROJECTS

1. Contents of review

1.1. For projects that have undergone final audit:

Based on the Audit Report on Completed Projects, the reviewing agency (unit) shall conduct reviews according to the following contents:

- Reviewing compliance with the Accounting Standards for Final Settlement Reports of Completed Investment Projects and the specific contents stipulated in Point 2, Section VI below of the Audit Report on Completed Projects; if requirements are not met, the reviewing agency has the right to request the auditing contractor to re-audit or conduct additional audits.

- Reviewing the application of legal regulations and legal bases used by auditors in auditing the project.

- Considering recommendations and differing contents between the final settlement report of the project sponsor and the audit report on completed projects by the auditing contractor.

- Considering the implementation by the project sponsor and related units of the conclusions of supervisory, inspection, and state auditing agencies (if applicable).

1.2. For projects without final audit:

For projects without final audit, the reviewing agency shall conduct reviews and prepare the results of final settlement review reports on completed projects in accordance with the procedures and contents stipulated in Point 2 below.

2. Procedures for review and contents of the Final Settlement Review Report on Completed Projects:

2.1. For completed projects, works, and sub-works:

2.1.1. Legal document review:

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

- Reviewing compliance with tendering procedures and formalities as prescribed by laws on bidding.

- Reviewing the legality of economic contracts signed by the project sponsor with contractors (consultants, constructors, suppliers of materials and equipment) to implement the project.

2.1.2. Review of project investment funds:

- Comparing the reported amount of capital allocated, loaned, and paid by the project sponsor with the confirmation from the relevant capital-providing, lending, and payment authorities to determine the actual investment capital expended.

- Reviewing the appropriateness of fund usage compared to the structure determined in the investment decision of the competent authority.

2.1.3. Review of investment costs:

a) For contracts implemented through lump-sum bidding:

Comparing the proposed final settlement value with the contract value and conditions, the contract termination record, completion documents, the approved bid price, and related documents.

Reviewing additional costs (if any): clearly identifying the reasons for increases or decreases, comparing with the approval document of the competent authority, and applying relevant policies and regulations for settlement of additional investment costs.

b) For contracts implemented through adjustable-price bidding:

Reviewing proposed final settlement costs: comparing the final settlement volume with the tender documents, the approved bid price, contract conditions, contract termination records, completion documents, and related documents.

Reviewing additional costs (if any): clearly identifying the reasons for increases or decreases, comparing with the approval document of the competent authority, and applying relevant policies and regulations for settlement of additional investment costs.

c) For contracts implemented through direct assignment:

Reviewing proposed final settlement costs (in detail for each contract): comparing with the approved budget estimate, contract conditions, acceptance records, contract termination records, completion documents, and related documents.

Reviewing additional costs (if any): clearly identifying the reasons for increases or decreases, comparing with the approval document of the competent authority, and applying relevant policies and regulations for settlement of additional investment costs.

d) Reviewing other cost items:

- Reviewing consultancy costs under contracts;

- Reviewing costs directly incurred by the project sponsor and detailed costs of the project management board by category, item, and cost, in comparison with the approved budget estimate, regulations, standards, and norms.

2.1.4. Review of non-capitalizable investment costs:

- Investment costs due to natural disasters, enemy actions, and other force majeure events not covered by insurance.

- Investment costs for work volumes canceled by the competent authority's decision.

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

2.1.6. Review of outstanding debts, surplus materials, and equipment:

- Based on the review of investment costs and payments made by the project sponsor to contractors, review the project's outstanding debts.

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

- On the basis of the inventory report assessing assets 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 unit or handled according to regulations.

2.1.7. Review the compliance of the project sponsor and related units with the conclusions of the inspection, audit, and state audit agencies (if any).

2.1.8. Comments and recommendations:

- Comment on and evaluate the compliance with state regulations on investment management, construction, and bidding; the management of investment costs and investment assets by the project sponsor; the responsibility of each level for project investment capital management.

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

2.2. For completed planning projects and investment preparation costs of canceled projects pursuant to the decision of the competent authority:

- Examine the legal documentation of the project.

- Examine the source of investment funds.

- Examine the investment costs in detail against the approved budget, state regulations, standards, and norms.

- Examine the project's accounts receivable and payable.

- Examine the quantity and value of assets formed through investment (if any).

VII. APPROVAL OF FINAL SETTLEMENT

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

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

- Investor;

- The superior agency managing the project sponsor.

- The funding, lending, and payment agencies.

- Ministry of Finance (for Group A projects funded by the State Budget).

VIII. COSTS FOR EXAMINATION AND APPROVAL OF FINAL SETTLEMENT; AUDIT

1. Determine the costs for examination and approval of final settlement, and audit costs:

The standard cost for examination and approval of final settlement and audit costs for completed projects is determined based on the total investment amount (approved or adjusted) of the specific project and the ratio specified in the table below on Standard Costs for Examination and Approval of Final Settlement and Audit Costs.

TABLE OF STANDARD COSTS FOR EXAMINATION AND APPROVAL OF FINAL SETTLEMENT,

AUDIT COSTS FOR FINAL SETTLEMENT OF COMPLETED PROJECTS

1.1. The standard cost for examination and approval of final settlement (denoted as K TTPD) and the standard audit cost (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 benchmark project (unit: %)

+ Kb: Standard cost corresponding to the lower benchmark project (unit: %).

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

+ Ga: Total investment of the upper benchmark project, unit: billion VND.

+ Gb: Total investment of the lower benchmark project, unit: billion VND.

1.2. The examination cost and audit cost of the project are determined according to the following formulas:

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

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

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

1.3. The examination and approval cost, and audit cost of individual works or packages within the project are determined as follows:

1.4. In cases where the equipment investment structure constitutes 51% or more of the total investment, the standard examination cost and audit cost are calculated at 70% of the rates specified in the above table.

1.5. In cases where the project has already undergone an audit of the final settlement report, the standard examination cost is calculated at 50% of the rates specified in the above table.

(See specific calculation example in Appendix 01 attached to this Circular)

2. Management and use of examination and approval costs:

2.1. For projects from Group B upwards: the leading examination agency bases on current state regulations on expenditure standards and norms to prepare the examination and approval cost estimate according to the contents stipulated in Section 2-3 below, along with the payment request form sent to the project sponsor. The sponsor shall make payments according to the estimate but must not exceed the provisions in Point 1 above.

2.2. For Group C projects: the leading examination agency is permitted to collect examination and approval costs according to the provisions in Point 1 above; implement expenditures for examination and approval according to current state regulations and the contents stipulated in Section 2-3 below.

2.3. Contents of examination and approval costs:

- Payment for remuneration of members participating in the examination and approval.

- Payment for experts or consulting organizations conducting project examination and approval as required by the leading examination and approval agency (if any).

- Travel expenses, office supplies, translation, printing, conference, seminar, and other expenses serving the examination and approval process.

3. Examination and approval costs, and audit costs for final settlement reports are included in other costs in the final settlement value of the project.

IX. TIME LIMIT FOR FINAL SETTLEMENT

The time for preparing the final settlement report of a completed project is counted from the date of signing the handover certificate for use; the audit period starts from the effective date of the audit contract; the examination and approval period starts from the date when all final settlement documents are received as stipulated in Section III, Part II of this Circular. The maximum time limit is specified as follows:

X. RESPONSIBILITIES IN THE FINAL SETTLEMENT OF COMPLETED PROJECTS

1. Responsibilities of the Project Owner:

- Prepare a complete final settlement report for the completed project in accordance with the content and time frame specified in this Circular.

- Submit and manage final settlement documents in accordance with regulations. Bear responsibility for the accuracy of the data and the legality of the documents in the submitted final settlement report.

- Provide all relevant documents related to the final settlement of the completed project as required by the auditing authority (auditor).

- Within six months from the date of the decision approving the final settlement of the completed project, the project sponsor must complete the resolution of debts and finalize the account closure procedures for the project (construction) at the payment and loan disbursing agency.

2. Responsibilities of contractors:

- Settle the actual value of the executed contracts with the project sponsor according to regulations. Complete the settlement documentation within their scope of responsibility and be accountable for the accuracy of the figures and the legality of the related documents provided to the project sponsor for preparing the final settlement report on the completed project as stipulated.

- Together with the project sponsor, resolve all outstanding issues according to the signed contracts. Timely and fully refund the capital that the project sponsor has paid out incorrectly.

3. Responsibilities of the payment and loan disbursing agency:

- Verify, reconcile, and confirm the investment capital that has been disbursed and paid for the project, while providing comments, evaluations, and recommendations to the auditing authority and the final settlement approval agency regarding the project's investment process according to Model No. 08/QTDA attached hereto.

- Cooperate with the project sponsor to recover the capital wrongly paid to individuals and units.

- Urge, guide, and cooperate with the project sponsor to resolve debts to complete the payment and account closure of projects that have been approved for final settlement.

4. Responsibilities of the auditing contractor:

- The auditing contractor and auditor must comply with the principles of independent auditing when conducting the final settlement audit of the completed project, having rights, obligations, and being responsible according to the laws on independent auditing.

- Be legally responsible before the law, the client, and users of the auditing report on the final settlement.

5. Responsibilities of the auditing and final settlement approval agency:

- Guide, inspect, and urge the project sponsor to timely and fully complete the final settlement work according to the prescribed forms and tables.

- Guide the project sponsor to resolve any arising issues during the final settlement process.

- Organize the review of the final settlement report of the completed project comprehensively according to the prescribed requirements and be legally responsible for the direct results of the review based on the settlement documentation provided by the project sponsor.

- Guide, urge, and create legal conditions for the project sponsor to complete the resolution of debts and account closure of the project after the final settlement approval.

6. Responsibilities of ministries, sectors, and localities:

- Guide, inspect, and urge project sponsors and units under their management to implement the final settlement work of completed projects according to regulations.

- Allocate sufficient funds to settle the project that has been approved for final settlement.

- Urge and create legal conditions for the project sponsor to complete the resolution of debts and account closure of the project after the final settlement approval.

7. Responsibilities of financial agencies at all levels:

The Ministry of Finance is responsible before the Government for unified state management over final settlement of investment capital; guiding final settlement of completed projects; inspecting the final settlement of investment capital and completed projects nationwide.

Financial agencies at all levels are responsible for guiding, urging, and inspecting the final settlement of investment capital and completed projects within their jurisdiction. In case of discovering errors in the final settlement inspection and approval process, they have the right to request the final settlement approval agency to correct them accordingly; and handle or propose handling violations according to the law.

XI. REPORTING AND INSPECTION REGIME

1. Reporting System:

1.1. For centrally managed projects:

- The project sponsor is responsible for reporting the situation of the final settlement of completed projects under their management quarterly and annually to the superior agency of the project sponsor and the main auditing agency according to Model No. 02/THQT attached hereto, no later than July 10 for the first half-year report and January 15 of the following year for the annual report.

- The main auditing agency is responsible for reporting the situation of the final settlement of completed projects under their management quarterly and annually according to Model No. 01/THQT to the superior management agency, no later than July 15 for the first half-year report and January 20 of the following year for the annual report.

- Ministries, agencies equivalent to ministries, government agencies, and state-owned corporations are responsible for compiling reports on the situation of the final settlement of completed projects under their management quarterly and annually according to Model No. 01/THQT and sending them to the Ministry of Finance, no later than July 20 for the first half-year report and January 30 of the following year for the annual report.

1.2. For locally managed projects:

- Project sponsors and project management boards are responsible for reporting the situation of the final settlement of completed projects under their management quarterly and annually to the superior agency of the project sponsor and the main auditing agency according to Model No. 02/THQT attached hereto, no later than July 10 for the first half-year report and January 15 of the following year for the annual report.

- District and county finance departments are responsible for reporting the situation of the final settlement of completed projects under their management quarterly and annually according to Model No. 01/THQT attached hereto to the provincial finance department, no later than July 15 for the first half-year report and January 20 of the following year for the annual report.

- Provincial finance departments are responsible for compiling the situation of the final settlement of completed projects under local management quarterly and annually according to Model No. 01/THQT attached hereto and sending them to the Ministry of Finance, no later than July 20 for the first half-year report and January 30 of the following year for the annual report.

1.3. The Ministry of Finance is responsible for compiling the situation of the final settlement of completed projects nationwide and reporting to the Government according to Model No. 01/THQT attached hereto quarterly and annually, no later than August 31 for the first half-year report and February 28 of the following year for the annual report.

2. Inspection schedule:

- Financial authorities at all levels: Regularly or unexpectedly inspect the implementation of final settlement work for completed projects of units under their management; promptly correct errors, handle violations, and commend units that perform well.

- Ministry of Finance: Regularly or unexpectedly inspect the implementation of final settlement work for completed projects of ministries, sectors, and localities nationwide; promptly correct errors, handle violations, and commend units that perform well.

XII. VIOLATION HANDLING

1. Authorities responsible for reviewing and approving final settlements of completed projects that conduct review and settlement audits contrary to the provisions of this Circular causing wastage of state investment capital shall be subject to administrative penalties as stipulated in Article 29 of Decree No. 84/2006/NĐ-CP dated August 18, 2006 of the Government on compensation for damages, disciplinary actions, and administrative penalties for thrift and waste prevention.

2. Project sponsors (project management boards) who violate any of the following acts: Delaying the submission of final settlement reports beyond the time limit prescribed in this Circular; fictitious acceptance; incorrect quantity acceptance; distorting the value of payment and final settlement of completed projects shall be subject to administrative penalties as stipulated in Article 12 of Decree No. 126/2004/NĐ-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure project management, and housing management and use.

3. Contractors who violate any of the following acts: Delaying the completion of documents required for acceptance, payment, and final settlement of projects as prescribed; fictitious acceptance; incorrect quantity acceptance; distorting the value of payment and final settlement of completed projects' investment capital shall be subject to administrative penalties as stipulated in Articles 18 and 24 of Decree No. 126/2004/NĐ-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure project management, and housing management and use.

4. The authority and procedures for imposing penalties for the acts specified in Point 1 above shall be governed by Decree No. 134/2003/NĐ-CP dated November 14, 2003 of the Government detailing the implementation of certain provisions of the Administrative Violation Handling Ordinance. The authority and procedures for imposing penalties for the acts specified in Points 2 and 3 above shall be governed by Decree No. 126/2004/NĐ-CP dated May 26, 2004 of the Government on administrative penalties for violations in construction activities, infrastructure project management, and housing management and use.

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

Part III

IMPLEMENTATION

1. Projects that have submitted final settlement documents for approval to the reviewing authority and projects that have been reviewed and approved for final settlement before December 31, 2006, are not required to undergo auditing as provided in Point 1, Section V, Part II of this Circular.

2. For Group A projects funded by state budget funds decided upon by the Prime Minister for investment prior to the effective date of Decree No. 07/2003/NĐ-CP dated January 30, 2003 amending and supplementing certain provisions of the Investment Management and Construction Regulations issued pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government, which have not yet submitted for final settlement approval or have submitted but not yet received approval, or have only received approval for some components, the authority to approve final settlement shall continue to be implemented as provided in Points 1-2, Section IV, Part II of this Circular.

3. For Group A projects not funded by state budget funds or partially funded by state budget funds decided upon by the Prime Minister for investment prior to the effective date of Decree No. 07/2003/NĐ-CP dated January 30, 2003 amending and supplementing certain provisions of the Investment Management and Construction Regulations issued pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government, which have not yet submitted for final settlement approval or have submitted but not yet received approval, or have only received approval for some components, the authority to approve final settlement currently belongs to State-owned Joint Stock Corporations and Limited Liability Companies with one member.

This Circular takes effect 15 days from the date of publication in the Official Gazette and replaces Circular No. 45/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance guiding final settlement of investment capital.

The State encourages the establishment, review, and approval of final settlement of investment capital in accordance with the provisions of this Circular for projects not within the scope of adjustment of this Circular./.