Joint Circular No. 36/1999/TTLT/BTC-BCN guiding the preparation of budgets, disbursement, management, and settlement of economic public service funds for basic geological surveys related to mineral resources.

JOINT CIRCULAR

Guidelines for preparing budgets, allocating, managing, and settling accounts for economic public expenditure related to basic geological surveys on mineral resources.

Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of management authority, preparation, implementation, and settlement of state budget accounts, and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Government amending and supplementing certain provisions of Decree No. 87/CP;

Pursuant to Decision No. 204/1998/QĐ-TTg dated October 19, 1998 of the Prime Minister promulgating the temporary regulations on allocation, management, settlement, and payment of economic public expenditure related to basic geological surveys on mineral resources;

The Ministry of Finance and the Ministry of Industry jointly issue guidelines for preparing budgets, allocating, managing, and settling accounts for economic public expenditure related to basic geological surveys on mineral resources as follows:

I. GENERAL PROVISIONS

1. Basic geological surveys on mineral resources conducted by public institutions, according to annual planning by the State, shall be guaranteed by the state budget through economic public expenditure.

The funds for basic geological surveys on mineral resources include:

- Funds for implementing survey projects on mineral resources.

- Funds for purchasing equipment and technology to serve the survey work.

3. Geological units must maintain complete records for each survey project on mineral resources based on special accounting systems established under Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996 of the Minister of Finance. Units using state budget funds must open limited accounts at the National Treasury where transactions take place.

II. SPECIFIC PROVISIONS

1/ Preparation of the estimate.

1.1. Contents of the budget for basic geological surveys on mineral resources include:

- Survey costs for basic geological surveys on mineral resources;

- Costs for purchasing equipment and technology to serve the survey work.

Budgets for survey projects on mineral resources are developed based on the tasks and volumes of various types of geological works and projects approved by competent authorities; among which:

a/ Direct and indirect costs for types of geological work with prescribed unit prices are calculated based on volume multiplied by unit price.

b/ Direct and indirect costs for types of geological work without prescribed unit prices are estimated based on tasks, workload, and current financial expenditure regulations, subject to approval by the competent authority.

c/ Other costs for specific types of projects and works are approved by the competent authority, including:

- Compensation and environmental protection costs: calculated based on local government compensation rates and relevant national regulations.

- Costs for relocation outside the area, malaria prevention, expert fees, scientific cooperation, rental of equipment and means of transportation, costs for construction works serving the project... (if applicable).

- Necessary other costs not exceeding 10% of the project's budget value, including:

+ Temporary housing and rent costs (only applicable if the survey project requires temporary camps or rented accommodation for staff), not exceeding 2% of the project's budget value.

+ Costs for inspection, acceptance, review, and examination of survey reports, not exceeding 1.5% of the project's budget value.

+ Establishment of reward funds, welfare funds, geological technology development funds, and other lawful expenses, not exceeding 6.5% of the project's budget value.

Budgets for survey projects on mineral resources must comply with established standards, unit prices, and current financial expenditure regulations. The budgets for survey projects on mineral resources do not include depreciation of fixed assets or profit margins. Procurement of fixed assets for units is ensured by procurement funds specified in point 1.1 of Part II above.

1.2 PROCEDURE FOR PREPARING THE ESTIMATE.

Annual budget preparation for basic geological surveys on mineral resources is carried out in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance "Guidelines for Division, Preparation, Implementation, and Settlement of State Budget Accounts", specifically as follows:

Based on the verification results of expenditures for basic geological surveys on mineral resources announced by the Ministry of Finance, the Ministry of Industry announces the verification results to its subordinate units. On the basis of the announced verification results, approved planning and plans for basic geological surveys on mineral resources, the implementation status and results of previous year's survey projects, tasks such as surveys, mapping, equipment procurement... for the planned year, technical and economic norms, unit prices prescribed by competent authorities, and current financial expenditure regulations, units prepare detailed budgets for each survey project on mineral resources (for large, complex projects or those requiring long-term implementation, they should be divided into phases) according to the items in the state budget, report to the Ministry of Industry for review and consolidation into the ministry's budget sent to the Ministry of Finance for consolidation into the state budget for approval by competent authorities.

Due to the nature of basic geological surveys on mineral resources, detailed budget preparation is carried out according to the items in the state budget as follows:

- Item 119: Reflects costs for survey projects on mineral resources.

- Item 145: Reflects costs for purchasing fixed assets.

- Item 134: Reflects other costs: costs for relocation outside the project area, compensation costs, expert fees, equipment rental...

Budgets for survey projects on mineral resources are consolidated accordingly in the annexes attached to this Circular.

2. Implementation of the budget

2.1. Allocation of the allocated budget estimate:

BASED ON THE STATE BUDGET PROJECTION ALLOCATED, THE MINISTRY OF INDUSTRY TASKS AND ALLOCATES THE BUDGET FOR BASIC GEOLOGICAL INVESTIGATION EXPENSES ON MINERAL RESOURCES TO THE VIETNAM GEOLOGY AND MINERALS AGENCY AND THE INSTITUTE OF GEOLOGY AND MINERALS SO THAT THE VIETNAM GEOLOGY AND MINERALS AGENCY CAN ASSIGN TO SUBORDINATE UNITS IN DETAIL ACCORDING TO THE BASIC GEOLOGICAL INVESTIGATION PROJECTS... IN ACCORDANCE WITH THE ITEMS OF THE STATE BUDGET OUTLINE.

THE ASSIGNMENT OF TASKS AND BUDGET ALLOCATION TO UNITS MUST ENSURE ACCURACY BETWEEN DETAILS AND TOTALS, AND BE SENT TO THE MINISTRY OF FINANCE AND THE STATE TREASURY WHERE TRANSACTIONS ARE MADE AS A BASIS FOR MONITORING, CONTROLLING EXPENDITURES, ISSUING ADVANCES, AND PAYMENTS.

2.2 ISSUANCE OF FUNDS:

BASED ON THE TASKS AND ALLOCATED BUDGET, THE GEOLOGICAL PUBLIC SERVICE UNITS ESTABLISH THE BUDGET FOR BASIC GEOLOGICAL INVESTIGATION EXPENSES ON MINERAL RESOURCES BY QUARTER (DIVIDED MONTHLY) IN ACCORDANCE WITH THE ITEMS OF THE STATE BUDGET OUTLINE AND SEND IT TO THE VIETNAM GEOLOGY AND MINERALS AGENCY FOR COMBINED REPORTING TO THE MINISTRY OF INDUSTRY, WHICH WILL THEN SEND IT TO THE MINISTRY OF FINANCE AND THE STATE TREASURY WHERE TRANSACTIONS ARE MADE.

EACH QUARTER, BASED ON THE BUDGET CAPACITY, THE IMPLEMENTATION PROGRESS OF ASSIGNED TASKS, THE MINISTRY OF FINANCE ISSUES FUNDS TO UNITS THROUGH THE STATE TREASURY. WHILE DIRECT FUNDS HAVE NOT BEEN ISSUED TO THE BUDGET USING UNITS, THE MINISTRY OF FINANCE ISSUES FUNDS THROUGH THE VIETNAM GEOLOGY AND MINERALS AGENCY TO DISTRIBUTE FUNDS TO SUBORDINATE UNITS. FOR FUNDS IMPLEMENTED BY THE INSTITUTE OF GEOLOGY AND MINERALS, THE MINISTRY OF FINANCE ISSUES FUNDS THROUGH THE MINISTRY OF INDUSTRY, WHICH THEN DISTRIBUTES FUNDS TO THE INSTITUTE. THE MINISTRY OF INDUSTRY AND THE VIETNAM GEOLOGY AND MINERALS AGENCY ARE RESPONSIBLE FOR SENDING THE DISTRIBUTION LIMITS TO THE MINISTRY OF FINANCE AND THE STATE TREASURY WHERE TRANSACTIONS ARE MADE AS A BASIS FOR CONTROL, SETTLEMENT, AND PAYMENT.

AT THE BEGINNING OF EACH YEAR, BASED ON THE APPROVED ANNUAL AND QUARTERLY BUDGETS, THE MINISTRY OF FINANCE ISSUES ADVANCES FOR FUNDS FOR ASSIGNED TASKS IN THE PLAN. FROM THE NEXT QUARTER ONWARDS, BUDGET USING UNITS MUST SUBMIT ANNUAL FINANCIAL REPORTS, IMPLEMENTATION PROGRESS REPORTS OF PLANNED TASKS, AND SITUATIONS OF FUNDS USE IN THE PREVIOUS QUARTER TO SUPERIOR MANAGING AUTHORITIES FOR COMBINATION AND SUBMISSION TO THE MINISTRY OF FINANCE AS A BASIS FOR CONTINUOUS ISSUANCE.

THE BUDGET LIMIT FOR BASIC GEOLOGICAL INVESTIGATION ON MINERAL RESOURCES IS ANNOUNCED ACCORDING TO THE ITEMS OF THE STATE BUDGET OUTLINE AS STATED IN POINT 1.2 SECTION II ABOVE.

THE STATE TREASURY WHERE TRANSACTIONS ARE MADE BASES ITS ISSUANCE OF ADVANCES OR PAYMENTS TO UNITS ON THE NOTICE OF SPENDING LIMITS DISTRIBUTED BY SUPERIOR MANAGING AUTHORITIES, CHECKS THE LEGALITY AND VALIDITY OF PAYMENT DOCUMENTS AND HEADS' AUTHORIZATION ORDERS, AND CLOSELY MONITORS EXPENDITURES ACCORDING TO THE GUIDELINES IN CIRCULAR NUMBER 40/1998/TT-BTC OF THE MINISTRY OF FINANCE ON THE MANAGEMENT, ISSUANCE, AND SETTLEMENT OF STATE BUDGET EXPENSES THROUGH THE STATE TREASURY AND THE PROVISIONS IN THIS CIRCULAR.

a/ ISSUANCE OF ADVANCES.

GEOLOGICAL UNITS MAY BE ISSUED ADVANCES TO ORGANIZE CONSTRUCTION ACCORDING TO THE BASIC GEOLOGICAL INVESTIGATION PROJECT ON MINERAL RESOURCES AND WILL REPAY THE ADVANCES UPON SETTLEMENT, WITH THE AMOUNT OF ADVANCES NOT EXCEEDING 70% OF THE QUARTERLY LIMIT ANNOUNCED.

THE BASIS FOR ADVANCE ISSUANCE INCLUDES:

- Authorization plan documents from competent authorities;

- DECISION APPROVING THE BASIC GEOLOGICAL INVESTIGATION PROJECT ON MINERAL RESOURCES (DIVIDED INTO STEPS) BY THE AUTHORIZED BODY;

- BUDGET FOR THE BASIC GEOLOGICAL INVESTIGATION PROJECT ON MINERAL RESOURCES (DIVIDED INTO STEPS) APPROVED BY THE AUTHORIZED BODY, WITHIN THE ALLOCATED ANNUAL BUDGET;

- PLAN AND IMPLEMENTATION SCHEDULE FOR THE PROJECT STEP APPROVED;

- WITHIN THE CURRENT FUNDS LIMIT OF THE UNIT AT THE STATE TREASURY WHERE TRANSACTIONS ARE MADE;

The chief officer's payment order of the unit.

b/ ISSUANCE OF FUNDS FOR SETTLEMENT OF BASIC GEOLOGICAL INVESTIGATION VOLUMES ON MINERAL RESOURCES MUST ENSURE THE FOLLOWING BASIS:

b.1. FOR EACH TYPE OF GEOLOGICAL WORK:

- THE OBJECTIVES, TASKS, AND VOLUME OF GEOLOGICAL WORK MUST BE WITHIN THE BUDGET STEP OF THE BASIC GEOLOGICAL INVESTIGATION PROJECT ON MINERAL RESOURCES APPROVED BY THE AUTHORIZED BODY.

- ECONOMIC AND TECHNICAL RATES, BASIC GEOLOGICAL INVESTIGATION UNIT PRICES ISSUED BY THE AUTHORIZED BODY;

- ACCEPTANCE RECORD OF COMPLETED VOLUME ACCORDING TO THE ACCEPTANCE REGULATIONS;

- LEGAL AND VALID DOCUMENTS ACCORDING TO THE LAW FOR COMPLETED VOLUME.

b.2. FOR THE ENTIRE PROJECT STEP:

- THE BUDGET STEP OF THE BASIC GEOLOGICAL INVESTIGATION PROJECT ON MINERAL RESOURCES APPROVED BY THE AUTHORIZED NATIONAL BODY AND RECORDED IN THE ALLOCATED ANNUAL BUDGET;

- COMPLETION OF CONSTRUCTION IN ACCORDANCE WITH REQUIREMENTS, OBJECTIVES, AND TASKS OF THE GEOLOGICAL PROJECT STEP AND ACCEPTANCE ACCORDING TO THE REGULATIONS ISSUED BY THE AUTHORIZED NATIONAL BODY;

- FINAL ACCOUNTING REPORT OF COSTS FOR COMPLETED VOLUME OF THE PROJECT STEP;

- LEGAL AND VALID DOCUMENTS ACCORDING TO THE LAW.

b.3. IN CASE THE BASIC GEOLOGICAL INVESTIGATION PROJECTS ON MINERAL RESOURCES APPROVED MUST BE STOPPED ACCORDING TO THE AUTHORITY'S DECISION OR DAMAGED DUE TO OBJECTIVE REASONS, THE COMPLETED VOLUME CAN BE SETTLED. THE BASIS FOR SETTLEMENT IS:

- DECISION TO STOP CONSTRUCTION BY THE AUTHORITY. LEGAL EVIDENCE OF OBJECTIVE REASONS FOR STOPPING CONSTRUCTION;

- FINAL ACCOUNTING REPORT OF COSTS FOR COMPLETED VOLUME OF THE PROJECT, APPROVED BY THE AUTHORITY;

- LEGAL AND VALID DOCUMENTS FOR COMPLETED VOLUME;

- ACCEPTANCE RECORD OF COMPLETED VOLUME CONFIRMED AND APPROVED BY THE AUTHORITY.

b.4. AT THE END OF THE BUDGET YEAR, IF THE BASIC GEOLOGICAL INVESTIGATION PROJECT ON MINERAL RESOURCES HAS NOT BEEN COMPLETED AND FUNDS ALLOCATED TO THE PROJECT HAVE NOT BEEN USED UP, THEY CAN BE TRANSFERRED TO THE NEXT YEAR FOR CONTINUATION, ACCORDING TO THE FOLLOWING PRINCIPLE:

* FOR REMAINING LIMITS AT THE STATE TREASURY:

- AT THE END OF THE YEAR, THE UNIT SUBMITS A REPORT ON THE IMPLEMENTATION OF FUNDS IN THE YEAR AND CONFIRMS THE BALANCE OF THE LIMIT AT THE STATE TREASURY WHERE TRANSACTIONS ARE MADE ON DECEMBER 31; SENDS IT TO THE VIETNAM GEOLOGY AND MINERALS AGENCY FOR COMBINED REPORTING TO THE MINISTRY OF INDUSTRY.

- THE MINISTRY OF INDUSTRY IS RESPONSIBLE FOR SUMMARIZING THE FUNDS TO BE TRANSFERRED TO THE NEXT YEAR OF SUBORDINATE UNITS ACCORDING TO THE ITEMS OF THE CANCELLED LIMIT, SENDS IT TO THE MINISTRY OF FINANCE FOR ISSUANCE IN THE FIRST QUARTER OF THE NEXT YEAR AND DECIDES ON SETTLEMENT IN THE NEXT BUDGET YEAR.

* For the funds withdrawn to the unit's budgetary account:

At the end of the year, any remaining cash balance in the unit's account that was not used up from the previous year may be carried over to the next year for continued implementation of assigned tasks.

2.3/ Budget adjustment.

In cases where the Government decides to adjust the budget estimate or the Ministry of Industry (Vietnam Geological and Mineral Resources Administration) needs to adjust the budget estimates among its subordinate units, the Ministry of Industry must submit a written explanation of the reasons for adjusting the financial resources to the Ministry of Finance. The reallocation of the budget estimate will be carried out after receiving a written agreement from the Ministry of Finance.

Adjustments to the budget estimates of projects and project phases shall be implemented under the following conditions: due to objective changes or geological condition risks leading to adjustments in project goals, tasks, methods, volumes, schedules; changes in unit prices or state policies; such budget adjustments shall be approved by the authority that originally approved the project and phase budgets, provided that the adjustments do not alter the budget item list or the total budget amount of the beneficiary unit. If the budget adjustments change the budget item list and the total budget amount of the beneficiary unit, then a written consensus from the Ministry of Finance is required.

Adjustments between expenditure items within geological units to ensure the completion of assigned tasks shall be carried out according to current regulations.

3/ Finalizing financial accounts.

a/ Basis for finalizing the basic geological survey project on mineral resource investigation:

When the basic geological survey project on mineral resource investigation is completed, the beneficiary unit must prepare a finalization report including:

- A comprehensive report on the completion of the basic geological survey project on mineral resources, detailing the objectives, tasks, work volume, and types of geological works;

- Minutes of the review meeting of the Evaluation Council on the comprehensive report on the completion of the basic geological survey project on mineral resources;

- Decision approving the comprehensive report on the completion of the basic geological survey project on mineral resources by the competent authority;

- A finalized cost report of the basic geological survey project on mineral resources, which has been approved by the competent authority;

- Confirmation form indicating the submission and storage of the comprehensive report on the completion of the basic geological survey project on mineral resources with the national geological archive.

The Ministry of Industry shall lead the coordination with the Ministry of Finance to review and finalize the financial accounts of the basic geological survey project on mineral resources.

b/ Finalizing quarterly and annual financial accounts for basic geological surveys and mineral resources:

At the end of each quarter and year, geological units must prepare a financial account report of the funds used according to the prescribed format, time limit, and submit the report as stipulated by current regulations.

The Vietnam Geological and Mineral Resources Administration is responsible for reviewing the financial accounts of its subordinate units.

The Ministry of Industry is responsible for coordinating with the Ministry of Finance to review the financial accounts of its subordinate units and compile the financial account reports to submit to the Ministry of Finance.

The Ministry of Finance is responsible for auditing and announcing the consolidated review of financial accounts to the Ministry of Industry, which will then officially approve the financial accounts for the subordinate units according to current regulations.

4/ Establishing and using incentive funds, welfare funds, and research and development funds for geological technology.

Sources for establishing the funds include:

- The difference between the budgeted price and actual costs of various types of works and tasks in basic geological survey projects and mineral resources, based on ensuring the completion of assigned work volumes.

- The results of production and service activities, after deducting legitimate expenses, state taxes, and the portion required to supplement the unit's funds as specified in Circular No. 01 TC/HCVX dated January 4, 1994, and Circular No. 25 TC/TCT dated March 28, 1994, issued by the Ministry of Finance regarding financial systems for production, business, and service activities with revenue.

The establishment of these funds shall be carried out as follows:

- The incentive fund and welfare fund can be established up to two months' salary. Their usage is decided by the unit head and the trade union chairman.

- The remaining portion establishes the research and development fund for geological technology. This fund is used for geological scientific research, including research topics and equipment purchases for basic geological surveys on mineral resources. Usage and finalization of this fund will be guided separately.

5. Inspection work.

To ensure that funds for basic geological surveys on mineral resources are used for their intended purposes and effectively, the Ministry of Industry and the finance authorities are responsible for periodically or randomly inspecting the management, use, and settlement of funds for basic geological surveys on mineral resources at units. Expenditures exceeding the planned and approved budget limits, without plans, and expenditures made contrary to regulations must be recovered and returned to the state budget. Any person who orders improper expenditures must compensate the public treasury and bear legal responsibility.

IV. IMPLEMENTATION PROVISIONS

This circular takes effect from January 1, 1999, and replaces Circular No. 501/LB dated December 31, 1983, jointly issued by the Ministry of Finance and the General Bureau of Geology, guiding the financial distribution system, capital management, and settlement for geological exploration work. Provisions in other previously issued circulars that are inconsistent with this circular shall be abolished.

The provisions of this circular apply to industrial units directly under the Ministry of Industry assigned tasks and budget estimates for basic geological surveys on mineral resources.

During the implementation process, if there are any difficulties, units are requested to reflect them to the Joint Ministry for study and appropriate amendments.