Circular No. 48-TC/ĐTPT guides the management and use of costs for auditing and approving final accounts of completed investment projects.

CIRCULAR

Guidelines for Managing and Using Costs for Audit and Approval of Final Settlement of Investment Capital Projects Completed

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Pursuant to Decree 177/CP dated October 20, 1994 of the Government promulgating the Regulations on Investment Management and Construction;

Pursuant to Decree 178 CP dated October 28, 1994 of the Government on the Tasks, Authorities, and Organizational Structure of the Ministry of Finance;

After consulting relevant sectors, the Ministry of Finance issues guidelines for managing and using costs for audit and approval of final settlement of investment capital projects completed as follows:

PART I

GENERAL PROVISIONS

1. All investment projects utilizing state capital must complete the final settlement of investment capital. The project owner must submit the final settlement report on investment capital to the competent authority for audit and approval within the time limit specified in Circular No. 108 TC/DT dated December 8, 1994 of the Ministry of Finance.

2. The Minister of Finance assigns the General Department of Investment Planning to organize (or sign a contract with the auditing agency) the audit of final settlement of investment capital for projects in Group A and submit to the Minister of Finance for approval of final settlement.

Projects in Groups B and C shall be audited and approved for final settlement by the Ministries, People's Committees of provinces and centrally-administered cities.

The Department of Investment Planning is assigned to participate or take the lead (if decided by the Chairman of the Provincial People's Committee) in the audit and approval of final settlement for projects in Groups B and C organized by the Chairman of the Provincial People's Committee.

3. Costs for audit and approval of final settlement of investment capital for completed investment projects are calculated as a percentage (%) of the total budget estimate of the completed project (or the budget estimate of the completed construction component) and set maximum and minimum levels for each type of investment project.

4. The audit and approval costs for final settlement of investment capital for completed investment projects are determined for the entire completed investment project or the completed construction component put into use and included in the investment cost of the project. If the investment project is funded from a specific source, the audit and approval costs will be covered from that source.

5. The management and use of costs for audit and approval of final settlement of completed investment projects shall be carried out according to the current financial management system and the provisions of this Circular.

Chapter II

SPECIFIC PROVISIONS

1. Costs for audit and approval of final settlement of investment capital for completed investment projects shall be used as follows:

- To provide allowances to members of the Audit and Final Settlement Approval Board.

- To pay organizations and individuals (domestic and foreign) not belonging to the Audit and Final Settlement Approval Board who participate in auditing the final settlement of investment capital of completed investment projects, according to signed economic contracts.

- To cover travel expenses, office supplies, translation, printing... serving the audit and approval work.

2. The level of costs for audit and approval of final settlement is stipulated as follows:

For investment projects with a value of 50 billion VND (or equivalent to 50 million USD) or more, a separate project budget for audit and approval of final settlement must be prepared and submitted to the superior agency of the project owner for review.

3. Annually, based on the list of completed investment projects handed over (classified by project groups A - B - C), the project owner prepares a plan for costs for audit and approval of final settlement of completed investment projects and submits it to the superior agency of the project owner. The superior agency of the project owner reviews the plan for costs for audit and approval of final settlement and incorporates it into the annual investment construction capital plan, submitting it to the State Planning Commission and the Ministry of Finance.

4. Based on the approved plan for costs for audit and approval of final settlement of completed investment projects, the project owner requests the funding and loan issuing agency to transfer the audit and approval costs for final settlement of completed investment projects (from the total allocated and loaned capital for projects) directly to the account of the leading audit and approval agency.

In case the leading audit and approval agency requests an audit of the final settlement of investment capital for completed investment projects, the project owner requests the funding and loan issuing agency to settle the payment to the auditing agency according to the signed economic contract.

5. The leading audit and approval agency for final settlement of investment capital for completed investment projects manages and uses the costs for audit and approval of final settlement according to the approved budget by the Chairman of the Audit and Final Settlement Approval Board. At the same time, it is subject to inspection and reports on the settlement of these costs to the direct financial management agency according to the current financial management system.

6. Costs for audit and approval of final settlement of investment capital for completed investment projects are managed and used according to the administrative and public service expenditure management system with current standards, regulations, and price lists (if applicable). Payment vouchers must comply with the regulations of the Financial Agency.

7. Costs for audit and approval of final settlement of investment capital for completed investment projects are considered as state funds allocated to the leading audit and approval agency. At the end of the year, if the costs for audit and approval of final settlement are not fully utilized, the leading audit and approval agency must promptly remit them to the state budget.

8. All costs for the audit and approval of final settlement of investment capital for completed investment projects transferred by the project owner to the leading audit and approval agency (including costs paid to the auditing agency if any) can be settled into the value of the investment project under other expense items.

This Circular takes effect from the date of issuance. During implementation, please promptly reflect any difficulties to the Ministry of Finance for research and appropriate amendments.

Chapter III

IMPLEMENTING PROVISIONS

This Circular takes effect from the date of issuance. During the implementation process, it is requested that ministries, sectors, localities, and project sponsors promptly reflect any difficulties to the Ministry of Finance for research and appropriate amendment.