Joint Circular No. 39 TT/LB provides guidance on preparing budgets for surveying plans and map creation.

JOINT CIRCULAR

Guidelines for preparing budgets for surveying and mapping plans

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Implementing Decision No. 295/CT dated September 9, 1985 of the Chairman of the Council of Ministers on the implementation of planning methods and economic accounting for grassroots units under the State Survey and Mapping Department, the Ministry of Finance and the State Survey and Mapping Department issue guidelines for preparing budgets for surveying and mapping plans as follows:

I. General Principles

1. The budget for surveying and mapping plans (hereinafter referred to as the plan budget) plays the role of pricing the products of surveying and mapping work. The plan budget includes all costs from the initial stage of formulating the plan to the final stage of compiling the summary report, and a profit margin for surveying and mapping units to fulfill their obligations to the State Budget and establish enterprise funds according to state regulations. The plan budget must be strictly managed according to current state price management systems.

2. The plan budget is prepared based on the technical design of the plan and economic and technical norms, labor norms, and other cost norms issued by competent authorities.

3. The plan budget only has legal effect after being approved by the competent authority. The approving authority has the power to approve, amend, and supplement the plan budget.

4. The plan budget approved by the competent authority serves as the basis for recording plans and disbursing funds, serving as the foundation for signing contracts and making payments between tenderers and contractors; it also serves as the basis for surveying and mapping units to conduct economic accounting.

5. For plans that must be implemented over several years, due to certain conditions, the total budget for the entire plan cannot be approved, then the budgets for each phase of the plan to be implemented in the annual plan must be separately approved. Each phase budget must also be approved by the competent authority. The unit must calculate the overall plan budget, at the latest one-third of the time specified in the plan (for implementing the plan), the formal plan budget must be calculated and submitted for approval. If the formal plan budget is not submitted within this period, fund disbursement will be temporarily suspended.

II. Contents of the Plan Budget

The contents of the surveying and mapping plan budget include the budget for surveying and mapping work and other cost budgets:

1. The budget for surveying and mapping work is the total cost to implement surveying and mapping work from the initial survey selection stage to the final drawing and calculation stage (implementing the plan) and the prescribed profit margin, including:

a) Direct costs: These are costs directly related to the implementation of surveying and mapping work volume, including:

+Material costs: The value of main materials, auxiliary materials... used in the work closely tied to the product of surveying and mapping work such as markers, reference points, etc., material costs are calculated based on economic and technical norms and state prices.

Materials used in operational activities such as paper, pens, rulers... are not included in this category.

+Labor costs: Costs related to wages and allowances for workers and technical staff directly involved in surveying and mapping work, including basic wages, various price differential allowances, mobility, seniority, responsibility... Incentive schemes for production quotas, bonuses within the wage system, and other state-regulated benefits are included in the budgeted cost. Non-wage allowances such as fuel subsidies for officials and employees in Hanoi and Ho Chi Minh City... are accounted for in the cost but not included here.

+External contracting costs: Costs for hiring external labor to carry equipment, guide paths according to the prescribed system, calculated based on labor norms and approved planned rates.

+Machine usage costs: Costs for using machinery in drawing work, including depreciation costs, repair costs, fuel, replacement parts... Wages for machine operators are included in labor costs and not counted here.

b) Other direct costs: These are costs directly related to completing the volume of surveying and mapping work but cannot be precisely calculated beforehand, such as clearing costs when setting up markers and reference points, draining water and silt when constructing. This cost is calculated as one percent (1%) of direct costs.

c) Construction overhead costs: All indirect costs serving construction work such as management costs, construction service costs, and costs for labor services (as shown in Appendix 1). Construction overhead costs are defined as 185% of the labor costs of the plan.

d) Costs for plan formulation: Calculated as three percent (3%) of direct costs.

e) Costs for plan completion acceptance: The total cost to organize acceptance according to the acceptance regulations issued by the Bureau. This cost is calculated as three percent (3%) of direct costs.

g) Costs for compiling the final report: Calculated as two percent (2%) of direct costs.

h) Prescribed profit margin: Defined as eighteen percent (18%) of the budgeted cost of the plan for the implementing unit to fulfill its obligations to the State Budget and establish enterprise funds according to regulations.

2. Other cost budgets include:

-Compensation costs for crops and houses for building markers and reference points (if applicable), these costs are calculated based on the quantity of crops and houses to be compensated as stipulated by the local government (Provincial People's Committee).

-Expert costs (if applicable): Costs for paying wages and other expenses according to the prescribed system for experts directly engaged in or directing the implementation of the plan.

- Expert fees (if any): Are the salary costs and other expenses in accordance with prescribed regulations for serving the experts directly working on or directing the implementation of the plan.

- Costs for the Project Management Board: These are costs to ensure the operation of the Project Management Board, other costs of the board are calculated at 2% of the budgeted cost. This is the maximum amount that the Project Management Board is allowed to spend. The Project Management Board is responsible for establishing specific annual cost budgets based on current state regulations and submitting them for approval by the State Land Surveying and Mapping Bureau. The Project Management Board must strictly manage the budget and comply with state economic and financial management principles.

5. To be consistent with the characteristics of surveying and mapping work, which often sees discrepancies between actual conditions and calculations, to ensure that units can proactively plan their work, the budget for the surveying and mapping phase includes a contingency reserve of 10% (ten percent) of the budgeted cost for this phase.

6. Implementing national thrift policies, each approved plan and budget must include specific measures for thrift, with specific levels of savings regarding raw materials, fuels, and materials, expressed both in physical quantities and value, based on production arrangements, reasonable process improvements, and the application of scientific and technological advancements.

III. Establishing and Adjusting Budgets

1. Establishment of budget projections: The method for establishing budgets is outlined in Appendix 2 attached hereto.

2. Adjusting Budgets: When the bases for establishing budgets such as standards, regulations, policies, prices... change, or when implementation conditions like surveying methods, terrain conditions... change affecting the budget, the budget must be adjusted accordingly. For changes in standards, policies, and regulations, the budget will be adjusted according to the guidelines of relevant state agencies. If construction methods, terrain conditions... change, the contractor must inform the Project Management Board and prepare all necessary documentation to request adjustments to the budget.

If the increase in the budget falls within the contingency reserve (10%), it does not need to be resubmitted for approval. If the increase exceeds the contingency reserve, the new budget must be resubmitted for approval.

- In cases where ongoing projects are affected by changes in policies, wage rates, standards..., the implementing unit and the Project Management Board must reassess the remaining workload from the point of change until completion. The budget can only be supplemented for the remaining workload. Work completed before the policy changes will be paid according to the old budgeted price, regardless of whether payment was made before or after the change.

IV. Implementation Provisions

1. This Circular applies to budget planning for surveying and mapping projects starting from January 1, 1987. All provisions contrary to this Circular are invalid.

2. Given the current difficulties and complexities in budget planning and management due to fluctuations in material supply and pricing, the percentages specified for various expenses will be reviewed and adjusted after a trial period to ensure appropriateness. The State Land Surveying and Mapping Bureau directs subordinate units to strictly adhere to state regulations and policies, review economic and technical standards, and labor norms to ensure accurate budget planning and management.

Any issues or difficulties should be reported to the Joint Ministry for resolution.

Arbitrary actions in implementing budget planning procedures are strictly prohibited.