Circular No. 43/TC-QLCS guiding the receipt and transfer of assets between administrative and public service agencies and economic organizations according to the decision of the competent authority.

CIRCULAR

Guidelines for the acceptance and transfer of assets between administrative and public service agencies, economic organizations according to the decision of the competent authority

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Implementing the Government's decision on the reorganization of Ministries, sectors, state agencies, enterprises, and social organizations, the transfer and acceptance of state assets between administrative and public service agencies and economic organizations often occur frequently. In recent times, the monitoring, accounting, and management of asset transfers have not been fully, accurately, consistently, and promptly carried out.

To address these shortcomings, the Ministry of Finance provides specific guidelines for reassessing assets, recording increases and decreases, accepting, and transferring state assets according to the decisions of the competent authorities as follows:

I. GENERAL PROVISIONS:

1. Object and scope of application:

a. The subject of this Circular applies to fixed assets (including houses and land) of administrative and public service agencies, political and social organizations, and military units (hereinafter referred to collectively as administrative and public service agencies) and state-owned enterprises when there is a decision from the competent authority to transfer assets.

b. Scope of application: Only applicable in the acceptance and transfer of assets when one of the two parties (or both parties) involved in the transfer is an administrative and public service agency (HCSN).

In the case where both the transferring party and the receiving party are state-owned enterprises, they shall follow separate guidelines issued by the Ministry of Finance.

2. Principles for transferring assets:

The transfer and acceptance of assets between the transferring and receiving units as stipulated in Section 1, Part I of this Circular shall be carried out according to the following principles:

a. All assets must be inventoried and reassessed based on market value at the time and location of the transfer; specifically, for houses and land, reassessment must be conducted according to the price range set by the People's Committee of the locality (where the house or land is being transferred), and the source of funds forming each asset must be clearly defined.

b. For immovable property being transferred, all relevant documentation about the asset must be handed over during the transfer process. Specifically, for unfinished construction projects, the transferring party must hand over all relevant documents: construction permits, land allocation certificates, designs, approved economic and technical justifications...; the actual investment capital invested according to each source up to the completion stage of the project at the time of transfer (confirmed by the funding issuing authority); so that the receiving agency can continue to implement according to the decision of the competent authority.

c. When conducting the transfer, a detailed and accurate record of the asset transfer must be established according to the prescribed form, including the number of assets, their value, and related documents. The asset transfer record must be confirmed by the financial authority (State Asset Management) at the same level.

II. DETERMINATION OF THE VALUE OF TRANSFERRED ASSETS

Transferred assets must be accurately determined based on the recorded values in the accounting books and reassessed based on the market value at the time and location of the transfer.

1. The recorded value of transferred assets in the accounting books is determined based on legitimate accounting documents (Accounting Books, Summary Balance Sheets, accounting vouchers, etc.) in accordance with the current accounting regulations.

2. Reassessment of the value of transferred assets:

a. Principles for reassessing the value of transferred assets:

- Based on scientific and technical grounds.

- Ensuring strictness and accuracy.

- Being practical and easy to apply.

b. Methods for reassessing the value of transferred assets:

- For newly purchased or recently installed, completed and put into use assets, the transfer value is based on the actual purchase price on the invoice accepted by the authorized authority for payment, the installation or construction cost according to the approved project settlement for transfer or completion of individual project stages (for ongoing projects).

- For assets that have been in use for a long time, the value must be reassessed at the time of transfer; the reassessment of the transfer value is based on the remaining quality of each transferred asset and the actual new purchase price of such assets at the time and location of the transfer.

Remaining Value Ratio % Quality Remaining Purchase Price or New Construction Price of Each = Remaining Quality of Each x New of Each Transferred Asset Transferred Asset Transferred Asset at Time of Transfer (VND) (VND)

+ The remaining quality ratio of each asset is determined based on the asset type, usage period, and time already used to determine it. Specifically, for houses and structures, it is implemented according to the provisions in Part II of the Joint Circular of the Ministry of Construction - Ministry of Finance - State Price Administration No. 13/LB-TT dated August 18, 1994.

+ The purchase price of the asset is the market price of similar assets at the time of assessment.

The new construction price of houses and construction projects being transferred is calculated as follows:

New Construction Price Unit Price x Area Constructed

of Houses and Construction = New Construction Unit Price x of Houses and Construction

Projects Being Transferred Projects Being Transferred

The new construction unit price is applied according to the standard pricing table for construction costs to approve settlements for similar types of projects at the time and location of the transfer, guided by the construction management authority.

- The total remaining value of all assets to be transferred is the sum of the remaining values of each asset to be transferred.

2. Organization for determining the value of transferred assets:

Within a maximum of ten days from receiving the decision to transfer assets from the competent authority, the agency with assets to be transferred shall take the lead in coordinating with the receiving agency to establish a committee to determine the value of the transferred assets; the committee members include representatives from the agency with assets to be transferred, the receiving agency, and the financial authority at the same level.

If necessary, the committee may invite the national technical appraisal agency to assess the quality of the transferred assets. The cost of hiring the agency to determine the quality of the transferred assets shall be borne by the receiving agency and included in the additional value of the new assets.

Based on the quality of each asset to be handed over, the Council determines the value of the assets to be handed over and records the valuation of the assets in the handover value record according to the accounting ledger, the re-evaluated actual value (including the value of the assets and the source of capital formation) of the assets to be handed over.

III. ACCOUNTING FOR INCREASES AND DECREASES IN ASSETS AND HANDLING OF EXPENSES ARISING DURING THE HANDOVER PROCESS

1. Accounting for increases and decreases in assets and the value of assets to be handed over:

When conducting the transfer and receipt of assets, units with assets to be handed over shall record the reduction in assets, original cost, depreciation value, and the source of capital formation for those assets; receiving units must record the increase in assets, the value of received assets, and the source of capital formation for those assets in accordance with the current enterprise and state administrative accounting regulations established by the State.

Depending on the object of handover, receipt, use, and management of assets, the recording of increases and decreases in assets and the value of capital sources for each specific case shall be carried out accordingly:

a. For the transferring party:

- If the transferring party is a state administrative unit, it shall base its records on the actual number of assets handed over and the actual value recorded in the accounting books for those assets to reduce the assets, original cost, depreciation value, and the source of capital formation after completing the handover process. In cases where the assets handed over have only been tracked in terms of quantity but not valued, the transferring party can only reduce the number of assets tracked in the asset register and cannot reduce the value of the assets handed over (or vice versa).

- If the transferring party is a business entity, it shall base its records on the quantity of assets to be handed over, the period of use, additional investment results during the use of those assets, the amount of depreciation, and the preservation of capital for each asset handed over, as well as the current value of assets recorded in the accounting books (clearly distinguishing between state budget capital, borrowed capital, etc.) to fully reduce the transferred assets, the value of the assets, and the National Bank's capital in the value of the transferred assets. The borrowed capital and self-owned capital in the value of the transferred assets (if any) shall be settled by the receiving party to the transferring business entity based on the remaining value determined in the handover record.

b. For the receiving party:

- If the receiving party is a state administrative unit, it shall base its records on the actual number of assets received and the total value of received assets recorded in the handover record to increase the assets and the value of assets of the unit, considering it as state budget capital according to the quantity and value of assets received as determined.

- If the receiving party is a business entity, it shall base its records on the actual number of assets received and the value of assets recorded in the handover record to increase the assets portion of state budget capital.

2. Handling of expenses arising during the handover and receipt of assets:

The funds for transporting and installing assets (if applicable), service costs for the handover work, and the payment of the value of assets formed from borrowed capital and self-owned capital that state administrative units pay to businesses shall be taken from the approved annual procurement budget of the state administrative unit. In cases where the approved budget does not cover the actual expenses or is not included in the annual budget, the receiving party must prepare a supplementary budget report to the Department of Finance and Price Control at the provincial People's Committee (for units managed by local authorities) or the Ministry of Finance (for units managed by central authorities) for consideration and resolution within their authority or submit to the Prime Minister for decision.

For businesses, all expenses: transportation and installation of assets, service costs for the handover work, shall be borne by the business.

In cases where the receiving party is a financial agency (State Asset Management), the State Budget may temporarily allocate funds to cover the payment of the remaining value of assets formed from borrowed capital and self-owned capital (if any) as determined in the business handover record and the costs for receiving and organizing the custody and protection of received assets. The agencies or organizations receiving assets from the financial agency according to the decisions of authorized bodies shall be responsible for repaying the temporarily allocated funds to the State Budget.

All such expenses shall be accounted for as additional value for the received assets.

IV. IMPLEMENTATION ORGANIZATION:

1. From the date of the handover decision until the completion of the handover, the handing-over party is responsible for properly preserving all assets to be handed over, without arbitrarily converting them to cause loss of assets to be handed over; specifically, for houses and land, the handing-over party shall not construct additional buildings, demolish or destroy structures, nor arrange additional units or individuals to reside in the area to be handed over, and must prepare all relevant documents related to the assets to be handed over to transfer them entirely to the receiving party.

2. Heads of state administrative units and enterprises with handover and receipt decisions from authorized bodies shall be responsible for implementing this Circular strictly.

3. The Director of the State Capital and Asset Management总局长对企业国有资产的管理，国家资产管理局长和各省、自治区直辖市财政局物价局长负责指导、监督并参与有资产接收和移交决定的行政单位和企业严格执行本通知。

This Circular takes effect from the date of signature. During implementation, if there are difficulties or obstacles, they should be reported promptly to the Ministry of Finance for study and resolution./.