JOINT CIRCULAR

GUIDELINES FOR THE PREPARATION OF BUDGET ESTIMATES, MANAGEMENT, AND SETTLEMENT OF EXPENSES FOR ECONOMIC OPERATIONS IN CONNECTION WITH BASIC GEOLOGICAL SURVEYS ON MINERAL RESOURCES

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 Budget;
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 guide the preparation of budget estimates, management, and settlement of expenses for economic operations funded by the central government budget for basic geological surveys on mineral resources as follows:

I- GENERAL PROVISIONS

1. This Circular guides the preparation of budget estimates, management, and settlement of expenses for economic operations funded by the central government budget to implement tasks and projects related to basic geological surveys on mineral resources.

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

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

II- SPECIFIC PROVISIONS

1. Expenditure items for basic geological surveys on mineral resources

- Conducting surveys to discover mineral resource potential, simultaneously preparing various types of regional geological maps, and specialized topics on geology and minerals.

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

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

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

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

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

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

- Other expenditures serving basic geological surveys on mineral resources (if applicable).

2. Preparation, execution, and settlement of the state budget:

The preparation of budget estimates, execution, and settlement of expenses for basic geological surveys on mineral resources shall be carried out in accordance with the provisions of the Law on State Budget and current guiding documents of the Ministry of Finance. This Circular provides specific guidance on the following matters:

2.1. Basis for preparing budget estimates:

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

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

- Direct costs:

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

+ For work items without economic-technical norms and unit prices: The budget estimate 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 on 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 state regulations.

+ Costs for training in basic geological surveys on mineral resources at sea, and allowances in kind for workers operating under hazardous and toxic 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 on basic geological surveys on mineral resources, other costs may also include: conference costs, expert fees, scientific cooperation costs.

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

Unit prices for settling projects on 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 budget estimates shall be carried out in accordance with current state regulations.

The budget estimate structure for implementing the basic geological survey tasks on mineral resources in accordance with the annex attached to this Circular shall be established.

Due to the nature of the work involved in the basic geological survey tasks on mineral resources, the establishment, allocation, and assignment of the annual budget estimate shall be carried out according to the following groups of expense items:

- For each task and project, the establishment, allocation, and assignment of the annual budget estimate shall be divided into two groups of expense items: the group of professional technical expense items and the other expense items.

- For the purchase and major repair of machinery and equipment of public institutions, the establishment, allocation, and assignment of the annual budget estimate shall be divided into the group of expense items for purchasing and repairing.

2.2. Budget Estimate Preparation Process:

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 and technical norms, current financial expenditure regulations, and the provisions of this Circular, units shall prepare the budget estimate for each project and task accompanied by detailed explanatory notes for submission to the Ministry or 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 shall develop plans for allocating funds to subordinate budgetary units, detailing each project and task and according to the groups of expense items in the State Budget Manual, to be sent to the Ministry of Finance for review and verification.

After obtaining the unified opinion of the Ministry of Finance, Ministries and equivalent ministries shall assign budget estimates to their subordinate budgetary units, 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 coordinated implementation. The second-level budgetary unit shall assign budget estimates to third-level budgetary units in detail according to the projects and tasks 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 authorities, units shall withdraw budget estimates from the State Treasury where transactions take place. The State Treasury where transactions take place shall implement expenditure control according to current regulations and the provisions of this Circular.

- During the implementation process, units assigned with basic geological survey tasks on mineral resources may temporarily advance up to a maximum of 70% of the value of the budget estimate for the workload 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 make 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 state budget estimate assignment by the competent state authority, divided by groups of expense items.

+ The approval document for the task and project by the competent state authority.

+ Contract or document assigning work.

+ Decision approving the tender results or direct award by the competent state authority according to current regulations for procurement and major repairs of assets.

+ Decision on expenditure by the head of the unit or authorized person.

b) Payment:

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

- Progress report on task implementation including volume and budget estimate.

- Decision of the competent state authority regarding the settlement price for the basic geological survey project on mineral resources.

- Acceptance record of completed work volume according to the regulations of the competent state authority 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 as prescribed by 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 authority 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 authority, the executing unit must report in writing to the superior authority and establish all legal bases to serve as the foundation for settling and finalizing the completed work volume, including:

- Decision to suspend construction by the competent state authority.

- Inspection record confirming the completed work volume by the competent state authority.

- Final cost report of the completed volume approved by the competent state authority.

- Payment vouchers for completed volumes.

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

c) Adjustment of State Budget Estimates:

- In cases where the state budget estimate is adjusted among projects and tasks within a unit without changing the total budget estimate and allocated groups of expense items, the unit shall develop an adjustment plan to submit to the budget assignment authority for review and decision, and send it to the State Treasury for monitoring.

- In cases where the budget estimate adjustment changes the total funding amount of the beneficiary unit and the allocated groups of expense items or involves adjustments between executing units, the unit shall develop an adjustment plan to submit to the budget assignment authority for review and consolidation, and send it to the same-level finance authority. Based on the unified written opinion of the same-level finance authority, the first-level budgetary unit shall assign the adjusted budget to the units.

2.5. Carrying Over Funds 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 shall consolidate unspent or partially spent budget estimates and temporarily advanced amounts in the state budget estimate, submitting them to the competent authority for consideration of transferring surplus funds to the next year according to regulations.

2.6. Settlement Work

2.6. Settlement work

a) Basis for preparing the final account report on the budget for basic geological survey tasks related to mineral resources:

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

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

+ Relevant payment vouchers.

- For completed projects:

+ The final project completion report approved by the competent state agency as prescribed.

+ Confirmation receipt for submitting the final project completion report to the State Geological Archive, and for submitting geological samples and minerals to the Geological Museum (if applicable) as prescribed.

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

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

3. Supervision.

Ministries and agencies at the ministerial level assigned the state budget plan to carry out basic geological survey tasks related to mineral resources are responsible for coordinating with the financial authorities at the same level to regularly and randomly inspect the implementation of the assigned tasks; the use and settlement of funds at the units to ensure that funds are used for their intended purposes and effectively.

III- IMPLEMENTATION

This Circular takes effect 15 days from the date of publication in the Official Gazette, replacing Circular Joint 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, allocation, management, and final accounts of public expenditure for economic activities related to basic geological surveys of mineral resources.During implementation, if there are 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.

KT. MINISTER OF THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

Place of Receipt:
- National Assembly's Office;
- President's Office;
- Government Office;
- Central Party Office and Party Committees;
- Supreme People's Court;
- Supreme People's Procuracy;
- Ministries, agencies equivalent to ministries, and government agencies;
- Department of Legal Drafting - Ministry of Justice;
- Official Gazette;
- Government Portal; Ministry of Finance Portal;
- To be filed: VT Ministry of Finance, Ministry of Natural Resources and Environment.
BUDGET ESTIMATE FOR IMPLEMENTING PROJECTS ON BASIC GEOLOGICAL SURVEYS RELATED TO MINERAL RESOURCES

ANNEX:

Calculation Method