Joint Circular No. 37/2007/TTLT/BTC-BTN guiding the preparation of budgets, management, and settlement of financial expenses for economic public services related to basic geological surveys on mineral resources.

JOINT CIRCULAR

Guidelines for preparing budgets, managing, and settling accounts for economic public service funds related to basic geological surveys on mineral resources For the activities of basic geological surveys on mineral resources

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the Law on State Budgets;

Pursuant to Decree No. 160/2005/NĐ-CP dated December 27, 2005 of the Government detailing and guiding the implementation of the Law on Minerals and the Law Amending and Supplementing Certain Provisions of the Law on Minerals;

The Ministry of Finance and the Ministry of Natural Resources and Environment hereby issue guidelines for preparing budgets, managing, and settling accounts for economic public service funds guaranteed by the central budget to implement tasks and projects related to basic geological surveys on mineral resources as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. These guidelines provide guidance on preparing budgets, managing, and settling accounts for economic public service funds guaranteed by the central budget to implement tasks and projects related to basic geological surveys on mineral resources.

2. Tasks and projects of basic geological surveys on mineral resources must be carried out concurrently with basic geological surveys according to the approved master plan for basic geological surveys on mineral resources and the state budget plan.

3. Tasks and projects of basic geological surveys on mineral resources must be approved by the competent authority before being eligible for budget allocation and implementation.

II. SPECIFIC PROVISIONS

1. Expenditure items for basic geological surveys on mineral resources

- Surveying and discovering potential mineral resources, simultaneously creating various types of regional geological maps and specialized maps on geology and minerals.

- Marine geological surveys, geological disaster surveys, environmental geological surveys.

- Evaluating potential mineral resources by type or group of minerals and for geological structures with prospects.

- Receiving, storing, and preserving reports on basic geological surveys on mineral resources; geological and mineral samples.

- Compiling and editing technical and economic norms, unit prices for geological works, procedures, and regulations.

- Counterpart capital for foreign cooperative projects in basic geological surveys on mineral resources.

- Major repairs, procurement of machinery and equipment, technology serving basic geological surveys on mineral resources for public institutions.

- Other expenses serving basic geological surveys on mineral resources (if any).

2. Preparing, implementing, and settling accounts for the state budget:

The preparation of budgets, implementation, and settlement of accounts for expenditures on basic geological surveys on mineral resources shall be carried out in accordance with the provisions of the Law on State Budgets and current guiding documents of the Ministry of Finance. These guidelines provide specific guidance on certain matters as follows:

2.1. Basis for preparing budgets:

a) For projects of basic geological surveys on mineral resources:

The budget for project costs of basic geological surveys on mineral resources is prepared based on the total of direct costs, common costs, pre-tax income, and other costs. Each cost item is calculated as follows:

- Direct costs:

+ For work items with established technical and economic norms and unit prices: The budget is determined by multiplying the volume of work by (x) the unit price decided by the competent state management agency.

+ For work items without established technical and economic norms and unit prices: The budget is prepared based on the specific volume of work, current financial expenditure regulations, and approved by the competent authority.

- Common costs: Including indirect costs; camp or rental housing costs (only for fieldwork).

- Pre-tax income: Calculated at 6% of the direct costs and common costs of the project for basic geological surveys on mineral resources.

- Other costs outside the unit price: Depending on each specific project approved by the competent state agency, including:

+ Costs for reviewing, examining, inspecting, and accepting projects and reports on basic geological surveys on mineral resources according to the inspection, acceptance, and review system of the competent state agency but not exceeding 1.5% of the direct costs and common costs of the project.

+ Compensation costs for land, property, and crops on land, and environmental protection costs based on local compensation prices and current national regulations.

+ Costs for training in basic geological surveys on mineral resources at sea, and allowances in kind for workers operating under hazardous conditions according to current regulations.

+ Other costs include: Labor and equipment transportation costs from the institution's headquarters to the construction site, purchasing materials, renting construction equipment (for projects with work items lacking construction equipment), and other relevant costs.

In addition, depending on each specific project of basic geological surveys on mineral resources, other costs may also include: conference costs, expert fees, scientific cooperation costs.

If the executing entity is a public institution assigned personnel and allocated regular operational funds by the state, the budget for implementing the task of basic geological surveys on mineral resources must deduct the regular operational funds allocated for the number of personnel (including salaries, payments according to regulations, and regular expenses) during the period of participation in the task.

Unit prices for settling accounts for projects of basic geological surveys on mineral resources are decided by the competent state management agency.

b) Content of major repair costs, procurement of machinery and equipment, technology for public institutions; other expenditure items in basic geological surveys on mineral resources: The preparation of budgets shall be carried out in accordance with current state regulations.

The structure of the budget for implementing tasks of basic geological surveys on mineral resources is stipulated in the annex attached to this Circular.

Due to the specific nature of the tasks and projects for basic geological surveys on mineral resources, the preparation, allocation, and assignment of the budget estimates shall be carried out according to the following groups of expense items:

- For tasks and projects, the annual budget estimate preparation, allocation, and assignment shall be conducted according to two groups of expense items: the group of professional activity expense items, and the other expense items group.

- For the procurement of machinery and equipment and major repairs of public institutions, the annual budget estimate preparation, allocation, and assignment shall be carried out according to the procurement and repair expense item group.

2.2. Budget Estimate Preparation Procedure:

Annually, based on the Prime Minister's Directive, the Circular guiding the preparation of the state budget estimate issued by the Ministry of Finance, the implementation situation of the previous year's budget estimate, the content and volume of work to be carried out in the planning year, economic-technical norms, current financial expenditure regulations, and the provisions of this Circular, units prepare the budget estimate for each project and task along with detailed explanatory notes for calculation and report to the Ministry or the equivalent ministry directly managing them for review and consolidation into the state budget estimate of the Ministry or equivalent ministry, which will then be submitted to the Ministry of Finance for consolidation and presentation to the Government and the National Assembly as prescribed.

2.3. Allocation and Assignment of Budget Estimates:

Based on the budget estimates assigned by the competent authority, ministries and equivalent ministries develop plans to allocate funds to their subordinate budgetary units, detailing each project and task and according to the groups of expense items in the State Budget Manual, and send these plans to the Ministry of Finance for review and verification.

After obtaining the unified opinion of the Ministry of Finance, ministries and equivalent ministries assign budget estimates to their subordinate budgetary units, simultaneously sending them to the Ministry of Finance, the State Treasury at the same level, and the State Treasury where the unit has its transaction account for coordination in implementation. The second-level budgetary unit assigns budget estimates to third-level budgetary units for implementation, detailing each project and task and according to the current regulations on groups of expense items. 2.4. Implementation of Budget Estimates:

Based on the state budget expenditure estimates assigned by the competent state agency, units implement the withdrawal of budget estimates from the State Treasury where transactions take place. The State Treasury where transactions take place implements expenditure control according to current regulations and the provisions of this Circular.

During the implementation process, units assigned tasks and projects for basic geological surveys on mineral resources may temporarily receive up to a maximum of 70% of the value of the budget estimate for the volume of work assigned in the planning year to carry out the tasks and projects, with the remainder to be paid after completion and acceptance according to regulations. The basis for the State Treasury to provide temporary advances to budget-using units includes:

Advance payment principles: advance payments apply to state budget expenditures that do not yet have the conditions to be directly paid from the State Treasury. The content of advance payments is based on the contract (for cases implemented under contract) and the request of VCCI (for cases without a contract or where the contract value does not exceed 50 million VND).

- The decision on the annual budget estimate assignment by the competent state agency, divided by groups of expense items.

- The approval document for the tasks and projects by the competent state agency.

- Contracts or documents assigning work.

- The decision approving the tender results or direct award decisions by the competent state agency according to current regulations for procurement and major repairs of assets.

- The expenditure decision of the head of the unit or the authorized person.

b) Payment:

The basis for the State Treasury to make payments to budget-using units includes:

- Progress reports on task implementation including volume and budget estimates.

- The decision of the competent state agency regarding the settlement price for basic geological survey projects on mineral resources.

- Acceptance records of completed work volumes according to the regulations of the competent state agency for each step of the work or project.

- Settlement of contracts or handover records of assigned work results; final cost reports of completed volumes.

- Legal vouchers according to the law.

In cases where changes in policies or objective factors such as geological conditions and construction conditions alter the project and task budgets and steps, there must be a budget adjustment document from the competent state agency as the basis for withdrawing the budget.

For projects and tasks that cannot continue due to objective reasons and must be suspended according to the decision of the competent state agency, the implementing unit must report in writing to the superior agency and establish all legal bases as the foundation for settling and finalizing the completed work volumes, including:

- The decision to suspend construction by the competent state agency.

- Inspection records confirming the completed work volumes by the competent state agency.

- Final cost reports of the completed volumes approved by the competent state agency.

- Payment vouchers for completed volumes.

For funds temporarily received but without corresponding payment volumes or with payment volumes not approved by the competent authority, the unit must return the funds to the state budget according to the prescribed regulations.

c) Adjustment of Budget Estimates:

- In cases where budget estimates are adjusted among projects and tasks within a unit without changing the total budget and allocated groups of expense items, the unit prepares an adjustment plan to submit to the budget estimate assigning agency for review and decision-making, and sends it to the State Treasury for monitoring and implementation.

- In cases where budget adjustments change the total amount of funds received by the beneficiary unit and the allocated groups of expense items or involve adjustments between implementing units, the unit prepares an adjustment plan to submit to the budget estimate assigning agency for review and consolidation, and sends it to the same-level finance agency. Based on the unified written opinion of the same-level finance agency, the first-level budgetary unit assigns the adjusted budget to the units.

2.5. Funds Carried Over to the Next Year:

Based on the Ministry of Finance's guidance on closing the accounting books at the end of the year and preparing and reporting the annual state budget settlement, ministries and equivalent ministries consolidate unspent or partially spent budget estimates and temporarily advanced amounts in the budget estimate, and submit them to the competent authority for consideration and transfer of remaining funds to the next year according to regulations.

2.6. Settlement Work:

a) Basis for Preparing the Final Settlement Report on Funding for Basic Geological Survey Tasks on Mineral Resources:

- For tasks or steps of work, projects implemented in the year:

- With respect to tasks or work steps to be implemented in the year:

+ The inspection and acceptance report of the project task, product, or work stage issued by the competent state agency according to the inspection and acceptance regulations promulgated by the Ministry of Natural Resources and Environment (including quantity and value).

+ Relevant payment vouchers.

- For completed projects:

+ The final project result report that has been approved by the competent state agency in accordance with the regulations.

+ Confirmation receipt for submitting the final project result report to the State Geological Archive, and submitting geological specimens and minerals to the Geological Museum (if applicable) in accordance with the regulations.

b) Procedure for preparing, reviewing, and auditing the annual settlement report:

At the end of the accounting period, budgetary units must close their accounting books and prepare the settlement report. The procedure for preparing the report, submission deadlines, and responsibilities for reviewing the settlement report shall be carried out in accordance with current regulations.

3. Inspection work.

Ministries and agencies at the ministerial level assigned state budget plans to carry out basic geological survey tasks on mineral resources must cooperate with the same-level financial agency to regularly and unexpectedly inspect the implementation of assigned tasks; the use and payment of funds at units to ensure proper and effective fund usage.

III. IMPLEMENTATION

This Circular takes effect fifteen days from the date of publication in the Official Gazette, replacing Joint Circular No. 36/1999/TTLT-BTC-BCN dated April 2, 1999, of the Ministry of Finance and the Ministry of Industry guiding the preparation of budgets, disbursement, management, and settlement of operating expenses for basic geological surveys on mineral resources.

During implementation, if there are any difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Natural Resources and Environment for research and appropriate amendments.