Circular No. 53/2005/TT-BTC guiding the preparation and examination of final accounts reports on construction investment capital from state budget funds according to annual budget periods

CIRCULAR

Guidelines for preparing and reviewing final accounts reports on capital investment in basic construction projects from state budget funds according to annual budget periods These guidelines apply to capital investment in basic construction projects from state budget funds according to annual budget periods

Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to the Construction Law and decrees on project management, investment management regulations;

The Ministry of Finance hereby guides the preparation and review of final accounts reports on capital investment in basic construction projects from state budget funds according to annual budget periods as follows:

PART I. GENERAL PROVISIONS

1. This Circular stipulates the preparation and review of final accounts reports on capital investment in basic construction projects from state budget funds according to annual budget periods, including the following types of capital:

1.1. Capital within the state budget estimate:

- Capital for basic construction investment according to the annual plan assigned by the State;

- Capital for basic construction investment from the previous year's plan that has been approved by competent authorities to be carried over to the next year for continued expenditure (allowing extension of payment or implementation and payment time);

- Capital advanced from the next year's state budget estimate.

Specifically, for capital for basic construction investment that has been approved by competent authorities to be advanced from the next year's state budget estimate, no final accounts report shall be prepared, but a summary report must be prepared for the financial authorities at all levels to monitor the receipt and use of this source of funding.

1.2. Other types of state budget capital: Other sources of capital for basic construction investment from the state budget in the year permitted to be used for investment according to decisions of competent authorities.

2. Entities responsible for preparing final accounts reports include:

2.1. Project owners and Project Management Boards (hereinafter referred to collectively as project owners) prepare final accounts reports on annual capital investment.

2.2. Higher-level authorities of project owners, upon receiving final accounts reports submitted by project owners for review, consolidate and prepare final accounts reports on annual capital investment.

Higher-level authorities of project owners are the authorities with the power to decide on allocating annual state budget capital plans for basic construction investment projects under their management.

2.3. State Treasury prepares final accounts reports on the receipt and use of annual state budget capital for basic construction investment from sources received and controlled, directly paid by the State Treasury, and simultaneously prepares consolidated payment reports on annual capital investment according to the budget period.

3. Authorities responsible for reviewing final accounts reports on annual capital investment are financial authorities at all levels.

Specifically, for investment projects funded by state budget capital not controlled and directly paid by the State Treasury, the financial authorities directly managing these projects will carry out consolidation, review, and examination of final accounts reports according to the annual state budget period.

4. Annual final accounts settlement of capital investment in basic construction from state budget capital shall follow the principles below:

4.1. The deadline for closing books for the State Treasury to prepare final accounts reports on annual state budget capital for basic construction investment is January 31 of the following year.

In cases where the competent authority decides to extend the payment deadline beyond the above closure date, the deadline for closing books to prepare final accounts reports shall be according to the adjusted settlement deadlines of corresponding levels of budget as prescribed by the Law on State Budget and related guiding documents. Payments made after the closure date shall be settled in the following year's budget.

The deadline for closing books for project owners to prepare final accounts reports on capital investment shall be implemented according to the accounting system applicable to project owners issued by the Ministry of Finance. Specifically, supplementary reports according to form number 01/CĐT/BCQT shall be prepared according to the deadlines set forth in this Circular.

4.2. Capital payments within the year included in the report are the amounts paid from January 1 of the planning year to the closure date, including:

+ Payments for completed basic construction works, including payments made through revenue and expenditure entries or foreign currency payments;

+ Unrecovered advance payments including retained amounts (if any) and advance payments made according to regulations;

For investment projects allocated in the annual capital payment plan to recover previously advanced state budget capital, the amount of capital payments included in the final accounts report is the total amount paid during the planning year (if any) plus the amount paid from the advanced state budget capital corresponding to the investment capital plan allocated for recovery.

* Example 1: Project A was advanced state budget capital from the 2004 budget estimate in 2003 amounting to 5 billion VND. The 2004 investment capital plan for Project A was allocated 10 billion VND, including recovery of advanced capital of 5 billion VND, and payment for work completed in 2004 of 5 billion VND, then the amount of capital payments included in the 2004 final accounts report for Project A is 10 billion VND.

* Example 2: Project A was advanced state budget capital from the 2004 budget estimate in 2003 amounting to 5 billion VND. The 2004 investment capital plan for Project A was allocated 10 billion VND, including recovery of advanced capital of 3 billion VND, and payment for work completed in 2004 of 7 billion VND, then the amount of capital payments included in the 2004 final accounts report for Project A is 10 billion VND. The remaining unrecovered advanced capital of 2 billion VND for Project A will continue to be monitored for recovery when the recovery capital plan is allocated.

For investment projects allocated in the annual capital payment plan permitted to be carried over to the next year for continued expenditure, the amount of capital payments included in the final accounts report is the amount paid from January 1 of the planning year to the end of the adjusted settlement period of the previous year's budget. Payments made after the previous year's budget settlement period shall be settled in the following year's budget.

Example 3: Project A (under the management of the central budget) was recorded in the plan for 2004 at 10 billion VND, by January 31, 2005, the project had been paid 7 billion VND; At the same time, 3 billion VND was permitted to extend the payment period until the end of the 2005 fiscal year; During the period of adjusting the final settlement report of the 2004 budget (by May 31, 2005 for the central budget), suppose the project continued to be paid 2 billion VND, then the amount of funds paid would be included in the final settlement report of Project A for 2004 at 9 billion VND. The remaining 1 billion VND paid after the adjustment period of the 2004 budget (after May 31, 2005 for the central budget) would be included in the final settlement of the 2005 budget.

4.3. The figures reported must be reflected in detail according to domestic and foreign sources of funding (if applicable). For foreign funding, the State Treasury reports according to the amount that has been accounted for and recorded as income and expenditure for the project; the project sponsor reports according to the amount that has been paid out for the project.

5. Annually, at the end of the fiscal year, agencies and units establish and review the final settlement report on investment capital for construction projects from state budget sources in accordance with the provisions of the State Budget Law, Accounting Regulations applicable to sponsors, and this Circular.

PART II. SPECIFIC PROVISIONS

I. CONTENT OF THE FINAL SETTLEMENT REPORT:

1. Section on final settlement figures:

1.1. For sponsors: prepare the annual final settlement report on investment capital according to the prescribed forms in the Accounting Regulations applicable to sponsors issued by the Ministry of Finance, and prepare supplementary reports according to form number 01/CĐT/BCBS (if applicable).

1.2. For the superior agency of the sponsor: prepare the annual final settlement report on investment capital according to forms numbered: 01, 02, 03/CQ/QTĐT attached hereto.

1.3. For the State Treasury: prepare the final settlement report on the receipt and use of investment capital for construction projects from the state budget annually under the direct supervision, payment, and consolidation of payments by the State Treasury according to the fiscal year as follows:

1.3.1. Detailed settlement forms: 01, 02, 03/KB/QTĐT and 04/KB/BCĐT attached hereto.

1.3.2. Summary forms: 05/KB/THTT, 06/KB/THTT, 07/KB/THTT attached hereto.

For other sources of investment capital for construction projects within the state budget that are allowed to be used for investment according to the decision of the competent authority, they shall be included in the appropriate forms of this Circular depending on the type of capital.

(Guidance on preparing forms is provided in the attached annex).

2. Section on explanations:

a/ For sponsors: evaluate according to the guidance of the Accounting Regulations applicable to sponsors issued by the Ministry of Finance.

b/ For the superior agency of the sponsor:

Present an overview of the implementation and payment of the state budget investment capital plan for the year. Explain the existing issues, difficulties, significant factors affecting the implementation and payment compared to the assigned plan, and propose measures to resolve them related to investment capital management.

c/ For the State Treasury:

- Present an overview of the characteristics, receipt, and use of investment capital for construction projects from the state budget.

- Propose and recommend solutions to address existing issues and difficulties related to the annual final settlement of investment capital and investment capital management, including specifying the reasons for increases or decreases in investment capital of some ministries, sectors, and localities, and major projects with existing issues and difficulties.

II. CONTENT OF REVIEWING THE FINAL SETTLEMENT REPORT ON ANNUAL INVESTMENT CAPITAL FOR CONSTRUCTION PROJECTS AND THE AGENCIES ESTABLISHING, RECEIVING, AND REVIEWING THE FINAL SETTLEMENT REPORT ON ANNUAL INVESTMENT CAPITAL FOR CONSTRUCTION PROJECTS:

1. Content of reviewing the final settlement report:

- Determine whether the project is included in the plan for settling investment capital in the year.

- Determine the assigned capital plan for each project.

- Determine and compare the settled capital amount with the assigned capital plan for each project.

- Determine the appropriateness of the source of capital settled for each project.

- Determine the total value of completed work that has been inspected and accepted.

- Determine the total value of completed work that has been inspected and accepted but not settled, including those within the extended payment plan and exceeding the investment capital plan.

2. Agencies establishing, receiving, and reviewing the final settlement report on annual investment capital for construction projects:

2.1. For investment capital for construction projects managed by central ministries and sectors:

a/ Sponsors prepare the annual final settlement report on investment capital according to this Circular and send it according to the Accounting Regulations applicable to sponsors issued by the Ministry of Finance (sponsors must reconcile the investment capital settlement figures with the State Treasury before preparing the annual final settlement report on investment capital according to the fiscal year).

b/ The superior agency of the sponsor: after receiving the final settlement report sent by the sponsor, reviews, consolidates, and prepares the annual final settlement report according to this Circular and sends it to the Ministry of Finance.

c/ The State Treasury consolidates, prepares the final settlement report on the receipt and use of investment capital for construction projects from the state budget annually, and prepares the consolidated payment report on investment capital according to this Circular and sends it to the Ministry of Finance.

d/ Functional Departments under the Ministry of Finance responsible for direct management are tasked with reviewing, consolidating, examining, and confirming the final settlement figures for directly managed parts, coordinating with the Department of State Budget (Ministry of Finance) to consolidate into the annual final settlement of the state budget according to regulations.

2.2. For investment capital for construction projects managed by localities:

2.2.1. Sources of investment capital managed by provincial budgets:

a/ Sponsors prepare the annual final settlement report on investment capital according to this Circular and send it according to the Accounting Regulations applicable to sponsors issued by the Ministry of Finance (sponsors must reconcile the investment capital settlement figures with the State Treasury before preparing the annual final settlement report on investment capital according to the fiscal year).

b/ The superior agency of the sponsor: after receiving the final settlement report sent by the sponsor, reviews, consolidates, and prepares the final settlement report according to this Circular and sends it to the Department of Finance.

c/ The State Treasury of the province shall aggregate and prepare reports on the final settlement of the situation regarding the receipt and use of capital for basic construction projects from state budget funds annually, and prepare consolidated payment reports for investment capital in accordance with this Circular, to be sent to the Department of Finance.

d/ Departments under the direct management of the Department of Finance shall take the lead in reviewing, aggregating, commenting, and confirming the final settlement figures, coordinating with the Budget Department (Department of Finance) to aggregate them into the annual final settlement report of the local budget in accordance with the regulations.

2.2.2. Investment capital managed by the district budget:

a/ Sponsors prepare the annual final settlement report on investment capital according to this Circular and send it according to the Accounting Regulations applicable to sponsors issued by the Ministry of Finance (sponsors must reconcile the investment capital settlement figures with the State Treasury before preparing the annual final settlement report on investment capital according to the fiscal year).

b/ The superior agency of the project owner: after receiving the final settlement report submitted by the project owner for review, aggregation, and preparation according to this Circular, shall send it to the District Finance Department.

c/ The State Treasury of the district shall aggregate and prepare reports on the final settlement of the situation regarding the receipt and use of capital for basic construction projects from state budget funds annually, and prepare consolidated payment reports for investment capital in accordance with this Circular, to be sent to the District Finance Department.

d/ The District Finance Department shall take the lead in reviewing, aggregating, commenting, and confirming the final settlement figures of the State Treasury of the district to aggregate them into the annual final settlement report of the district budget in accordance with the regulations.

2.2.3. Investment capital managed by the commune budget:

- The State Treasury of the district shall aggregate and prepare reports on the final settlement of the situation regarding the receipt and use of capital for basic construction projects from state budget funds managed by the commune budget annually, and prepare consolidated payment reports for investment capital in accordance with this Circular, to be sent to the People's Committee of the commune.

- The Commune Finance Board assists the People's Committee of the commune in taking the lead in reviewing, aggregating, commenting, and confirming the final settlement figures of the State Treasury of the district to prepare the annual revenue and expenditure report of the commune budget in accordance with the guidance of the Ministry of Finance in Circular No. 60/2003/TT-BTC dated June 23, 2003 on commune budget management and other financial activities of communes, wards, and towns.

III. TIME LIMIT FOR SUBMISSION AND REVIEW OF FINAL SETTLEMENT REPORTS:

1. For basic construction investment capital managed by central ministries and sectors:

- The project owner shall submit the final settlement report within the time limit stipulated in the accounting system applicable to the project owner issued by the Ministry of Finance. Specifically, the report according to Form 01/CĐT/BCBS shall be submitted before March 1 of the following year for supplementary reports on payments completed by the end of January of the following year, and one month after the adjustment period for the final settlement of the state budget for supplementary reports on payments during the adjustment period for the final settlement of the state budget.

- The superior agency of the project owner shall conduct the review, aggregation, and preparation of the final settlement report on investment capital within its management scope in accordance with this Circular, to be sent to the Ministry of Finance before September 15 of the following year. The review period is one month (from the date all final settlement report documents are received in accordance with the regulations).

- The State Treasury shall aggregate and prepare final settlement reports and consolidated payment reports for investment capital in accordance with this Circular, to be sent to the Ministry of Finance before September 15 of the following year. The review and comment period is one month and fifteen days (from the date all final settlement report documents are received in accordance with the regulations).

2. For basic construction investment capital managed by localities: The time limits for submission and review of final settlement reports shall be determined by the Provincial People's Committee in accordance with the State Budget Law and guiding documents of the Law, but must ensure the time required for the aggregation, preparation, and submission of the final settlement report of the local budget in accordance with the prescribed system..

PART III RESPONSIBILITIES OF RELATED AUTHORITIES

1. Authorities preparing final accounts reports: Shall be responsible for the figures included in the annual final accounts report; shall conduct the review (if applicable), consolidate, prepare the final accounts report in accordance with the guidelines set forth in this Circular, and submit it to the corresponding financial authority within the prescribed time limit.

2. Financial authorities at all levels: Based on the annual final accounts reports submitted by the authorities preparing final accounts reports, shall conduct the review, provide comments, confirm the final accounts figures, and consolidate them into the final accounts of state budgets at all levels in accordance with the provisions of the State Budget Law.

PART IV IMPLEMENTATION PROVISIONS

This Circular shall take effect fifteen days from the date of publication in the Official Gazette and shall be uniformly implemented throughout the country. As for the preparation and review of final accounts reports for capital investment construction projects in 2004 at all budget levels, if such reports have not been prepared, they shall be carried out in accordance with this Circular; if such reports have already been prepared, there is no need to prepare them again.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for study and amendment.