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

CIRCULAR

GUIDING IMPLEMENTATION OF THE HANDOVER AND RECEIPT OF STATE ASSETS BETWEEN ADMINISTRATIVE ORGANIZATIONS, PUBLIC SERVICE ORGANIZATIONS, AND ECONOMIC ORGANIZATIONS PURSUANT TO THE DECISION OF THE AUTHORIZED BODY IN DECREE NO. 42 TC/QLCS ON JULY 31, 1996

In implementing the Government's decision on the reorganization of ministries, agencies, state enterprises, and social organizations, the handover and receipt of state assets between administrative organizations, public service organizations, and economic organizations frequently occur. In recent times, the tracking, accounting, management, handover, and receipt of assets have not been fully, accurately, uniformly, and timely carried out.

To address these shortcomings, the Ministry of Finance provides specific guidance on the revaluation, recording increases and decreases, receipt, and handover of state assets according to the decisions of authorized bodies as follows:

I. GENERAL PROVISIONS:

1. Object and scope of application:

a. The subject of this Circular is fixed assets (including real estate) of administrative organizations, public service organizations, political-social organizations, and military units (hereinafter referred to collectively as administrative organizations) and state-owned enterprises when there is a decision from the authorized body to transfer assets.

b. Scope of application: This applies only to the receipt and handover of assets when one of the two parties (or both parties) involved in the handover and receipt is an administrative organization (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 Handing Over and Receiving Assets:

The handover and receipt of assets between the transferring and receiving units as stipulated in Section 1 of Part I of this Circular shall be carried out in accordance with the following principles:

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

b. For immovable property being handed over, all relevant documentation about the asset must be transferred along with it. For unfinished construction projects, the transferring party must provide all related 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 of each project component at the time of handover (confirmed by the funding issuing authority); so that the receiving party can continue to implement according to the decision of the authorized body.

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

II. DETERMINING THE VALUE OF ASSETS BEING HANDOVERED

The value of assets being handed over must be accurately determined based on the records in the accounting books and must be re-evaluated based on the market value at the time and location of handover.

1. The value of assets being handed over recorded 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. Re-evaluating the value of assets being handed over:

a. Principles for re-evaluating the value of assets being handed over:

- Based on scientific and technical grounds.

- Ensuring strictness and accuracy.

- Being practical and easy to apply.

b. Methods for re-evaluating the value of assets being handed over:

- For newly purchased or newly installed and completed assets put into use, the handover value is based on the actual purchase price on the invoice accepted by the competent authority for payment, the installation or new construction cost according to the approved project settlement for handover or completion of project components (for unfinished projects).

- For assets that have been in use for a long time, when handing over, the value must be reassessed based on the market value at the time of handover; the determination of the handover value is based on the remaining quality of each handed-over asset and the actual new purchase price of such assets at the time and location of handover.

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

New construction price = Unit price of new construction x Area of construction

The unit price of new construction 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 handover, as guided by the construction management authority.

- The total remaining value of all assets to be handed over is the sum of the remaining values of each asset to be handed over.² Area for construction

of houses and buildings = new construction area of houses and buildings

Construction handover project handover project

Unit price per² New construction shall be applied according to the Standard Pricing Table of unit prices for construction to approve final accounts for similar projects of the same type at the time and location of handover as guided by the construction management authority.

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

2. Organizing the Determination of the Value of Assets Being Handovered:

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

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

Based on the quality of each asset 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 handed over:

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

Depending on the object handing over, receiving, using, and managing assets, carry out the recording of increases and decreases in assets and the value of capital sources for each specific case:

a. For the transferring party:

- The transferring party is an administrative or public service unit, based on the actual number of assets handed over and the actual value recorded in the accounting ledger for those assets, they shall record decreases in assets, original cost, depreciation value, and the source of capital formation after completing the handover process. In cases where the number of assets handed over has only been tracked in the asset register without being accounted for in terms of value, the transferring party can only reduce the number of assets tracked in the asset register and cannot record a decrease in the value of the assets handed over (or vice versa).

- The transferring party is a business entity, based on the quantity of assets to be handed over, usage period, additional investment results during the usage period of those assets, as well as the depreciation amount and capital preservation results of each asset handed over and the current value of assets recorded in the accounting ledger (clearly defined as state budget capital, borrowed capital, etc.), they shall record a full decrease in the assets handed over, decrease in asset value, and the State Bank's capital in the value of the assets handed over. Borrowed capital and self-owned capital of the business entity in the value of the assets handed over (if any) shall be settled by the receiving party to the transferring business entity according to the remaining value determined in the handover record.

b. For the receiving party:

- The receiving party is an administrative or public service unit, based on the actual number of assets received and the total value of received assets recorded in the handover record, they shall record an increase in assets and the value of assets as part of the state budget capital according to the quantity and value of assets received as determined.

- The receiving party is a business entity, based on the actual number of assets received and the value of assets recorded in the handover record, they shall account for an increase in assets as part of the state budget capital.

2. Handling of expenses arising during the handover process:

The funds for transporting and installing assets (if applicable), expenses for serving the handover work, and the funds for paying the value of assets handed over formed from borrowed capital and self-owned capital paid by administrative and public service units to businesses shall be taken from the approved budget for procurement in the annual plan of the administrative and public service agency. If the approved budget in the plan is insufficient compared to the actual expenses incurred or not included in the annual budget, the receiving party must prepare a supplementary budget report to the Department of Finance and Prices (for units managed by localities) or the Ministry of Finance (for units managed centrally) for consideration and resolution within their authority or submit it to the Prime Minister for decision.

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

In cases where the receiving party of the assets is a financial agency (State Asset Management), the State Budget temporarily allocates funds to cover the payment of the remaining value of assets handed over formed from borrowed capital and self-owned capital (if any) as determined in the business handover record and the funds for serving the reception work, organizing custody, and protection of received assets. The agencies or organizations receiving assets handed over from the financial agency according to the decisions of authorized authorities 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 process, the handing-over party is responsible for properly preserving all assets to be handed over, and shall not arbitrarily convert or cause loss of assets to be handed over; specifically, for houses and land, the handing-over party shall not construct additional buildings, demolish or dismantle structures, nor arrange additional units or individuals to reside in the area of houses and land to be handed over, and shall prepare all relevant documents and materials related to the assets to be handed over to transfer them entirely to the receiving party.

2. Heads of administrative and public service units and state-owned enterprises with handover and receipt decisions from authorized authorities shall implement this Circular strictly.

3. The Director of the State Capital and Asset Management总局，各省级和直辖市财政局物价局局长负责指导、监督并参与行政事业单位和国有企业执行本通知。

This Circular takes effect from the date of signature. During the implementation process, if there are difficulties or obstacles, please promptly reflect them to the Ministry of Finance for research and resolution.