Circular No. 64/TC-QLCS guiding the implementation of the comprehensive inspection of passenger cars according to Directive No. 368/TTg dated June 22, 1995 of the Prime Minister.

 

CIRCULAR

MINISTRY OF FINANCE DECISION NO. 64 TC/QLCS OF AUGUST 9, 1995 GUIDING THE IMPLEMENTATION OF THE TOTAL INVENTORY OF PASSENGER CARS PURSUANT TO THE DIRECTIVE NO. 368/TTG OF JUNE 22, 1995 OF THE PRIME MINISTER

To implement Directive No. 368/TTg dated June 22, 1995 of the Prime Minister on "Practicing thrift and combating waste in state agencies, armed forces, mass organizations, and state-owned enterprises," the Ministry of Finance guides the total inventory of passenger cars as follows:

I. OBJECTIVES - REQUIREMENTS:

The objective of the total inventory of passenger cars is to fully grasp the quantity, structure, current status, and actual value of passenger cars owned by the State at all state agencies, people's armed units, political and social organizations, collectively referred to as administrative and public service institutions (APSI) that use state budget funds and state-owned enterprises (SOEs).

Based on the results of the vehicle inventory, after receiving guidelines from the Government regarding standards and norms for using passenger cars, ministries, ministerial-level agencies, government-affiliated agencies, provincial People's Committees, mass organizations, and SOEs must develop internal balance adjustment plans. The Ministry of Finance is responsible for compiling and developing adjustment plans between ministries, sectors, and localities to submit to the Government.

II. SCOPE - OBJECTS AND INVENTORY FORMS:

1/ Scope of objects and time of inventory:

All administrative and public service institutions (APSI) from central to local levels and SOEs must conduct an inventory of passenger cars currently under their management and use as of 00:00 on September 1, 1995.

The objects of the inventory include all types of passenger cars with up to 15 seats of various kinds formed from all sources (state budget allocation, originating from the state budget, aid, gifts, other capital contributions... are state assets managed and used by the relevant agencies and units), excluding passenger cars with up to 15 seats purchased with state budget funds for storage by the National Reserve Corporation, Ministry of Defense, Ministry of Public Security, and passenger cars used for business operations by SOEs (such as passenger cars for transporting passengers, passenger cars as goods sold by SOEs engaged in buying and selling, importing and exporting passenger cars).

2/ Inventory forms:

a. Units directly subject to inventory must accurately record all indicators specified in the inventory forms (annexed to this Circular) as follows:

- Inventory and revaluation form for passenger cars of APSIs and SOEs (Form No. 01 TC/QLCS);

- Report on the results of the passenger car inventory applicable to basic inventory units (Form No. 02 TC/QLCS).

b. Management units and consolidation agencies must accurately record all indicators in the report on the results of the passenger car inventory applicable to management agencies and consolidation agencies (Form No. 03 TC/QLCS) annexed to this Circular.

III. ORGANIZATION OF INVENTORY AND COMBINATION OF REPORTS ON INVENTORY RESULTS:

1/ For central agencies:

a. Basic units directly managing and using passenger cars (including APSIs and SOEs under the management of ministries and sectors) shall carry out the inventory and prepare three sets of reports on the inventory results (including Form No. 01 and 02), submitting two sets of reports to the management agencies (ministries, ministerial-level agencies, government-affiliated agencies, central-level organizations of social organizations) and sending one set of reports to the Ministry of Finance (Inventory Steering Committee).

b. Chairmen of ministries, ministerial-level agencies, government-affiliated agencies, and central-level political and social organizations have the responsibility to conduct a comprehensive inventory of all passenger cars currently under direct management and use by their agencies, including subordinate units, and to compile and report a comprehensive industry-wide inventory for ministries, ministerial-level agencies, and government-affiliated agencies implementing centralized management systems (vertical budgets from central to local levels) according to two categories: APSIs and SOEs (production and business) under their current management, following Form No. 03 TC/QLCS, while preparing a plan for passenger car use and reporting it to the Ministry of Finance (Inventory Steering Committee).

c. Specifically, the Ministry of Defense and the Ministry of Public Security will independently conduct an inventory of passenger cars currently under their management and use, divided into two areas: APSIs and production and business activities, following the model prescribed in this Circular, develop a usage plan, and report it to the Ministry of Finance for compilation and reporting to the Government.

Chairmen of APSIs and SOEs under the management and use of passenger cars within the scope of the inventory by the Ministry of Public Security and the Ministry of Defense shall be responsible for conducting the inventory and reporting according to Form No. 01 and 02 directly to the Ministry of Public Security and the Ministry of Public Security, similar to other central-level units.

The Ministry of Public Security and the Ministry of Defense shall consolidate the inventory of passenger cars currently under their management and use, and compile the overall inventory reports of subordinate units according to Form No. 03 TC/QLCS, while developing an internal industry usage plan and reporting it to the Ministry of Finance (accompanied by Form No. 02 of all subordinate units).

2/ For agencies under local management:

a. District-level agencies: Basic units managed by districts and counties shall conduct the inventory and report the results (submitting three sets of reports) to the District People's Committee (District Finance Department). The District People's Committee has the responsibility to check the quality of the inventory reports of all subordinate units, retain one set of reports from the basic unit if they meet the requirements, and send one set to the Provincial Finance and Price Department and one set to the Ministry of Finance (Inventory Steering Committee).

b. Chairmen of district and county-level People's Committees (collectively referred to as district level) are responsible for conducting a comprehensive inventory of all passenger cars currently under their management and use, and reporting them to the Provincial Finance and Price Department according to Form No. 03 TC/QLCS.

c. Basic units (including APSIs and SOEs) managed by departments and sectors under the Provincial People's Committee shall conduct the inventory and report the results (submitting three sets of reports) to the management departments and sectors. Departments and sectors under the Provincial People's Committee have the responsibility to check the quality of the reports of all subordinate units, retain one set of reports from the basic unit if they meet the requirements, and send one set to the Provincial Finance and Price Department and one set to the Ministry of Finance (Inventory Steering Committee).

d/ The directors of departments, heads of agencies, bureaus, and sectors under the provincial People's Committees (referred to collectively as the provincial level) shall be responsible for inventorying and summarizing the total number of passenger cars of subordinate units according to two categories: administrative state-owned enterprises (HCSN) and production and business operations, and reporting to the Department of Finance and Prices according to Model 03 TC/QLCS.

e/ The Departments of Finance and Prices at the provincial and centrally governed city levels shall be responsible for summarizing and reporting the results of the inventory of passenger cars currently owned by administrative state-owned enterprises and state-owned enterprises managed by the province to the provincial People's Committee, and simultaneously sending the report to the Ministry of Finance (Inventory Steering Committee).

The provincial People's Committee shall develop a plan for using passenger cars and submit it to the Ministry of Finance (Inventory Steering Committee) for consolidation and reporting to the Government.

IV- METHODS FOR EVALUATING THE RESIDUAL VALUE (%) OF PASSENGER CARS:

To assess and determine the current condition and actual degree of depreciation of passenger cars, it is necessary to apply a comparison method between the current operational status and the initial state of the passenger car (based on design capacity or initial usage value), based on key characteristic factors or the standard service life. The re-evaluation of the value of passenger cars can be applied through the following two methods:

1/ Expert Method:

The content of this expert method involves using experts with knowledge and practical experience in evaluating passenger cars to observe the current condition of each passenger car (in percentage terms), thereby determining the residual value of each passenger car based on the inventory original cost of various types of passenger cars.

2/ Economic and Technical Analysis Method:

This method evaluates the current condition of each functional component that makes up a passenger car, such as the engine, transmission, etc. The components of a passenger car have different degrees of wear and tear, so the residual value of the passenger car will be determined based on the residual value of each component of the passenger car.

The residual value of the passenger car is determined by the following formula:

S Ti x hi

H = X 100%

100

Where:

- H is the residual value of the passenger car.

- h is the residual value of each component of the passenger car.

- T is the proportion of the value of each component of the passenger car.

The value proportion of the components of the passenger car (T) is defined as follows:

1. Engine 25%

2. Transmission 16%

3. Front axle 10%

4. Drive axle 14%

5. Steering system 7%

6. Body shell 21%

7. Tires 7%

Example: Determine the residual value of a passenger car with the residual value of each component as follows:

Applying Formula 1, the residual value of the passenger car is:

S Ti x hi 6.600

H = X 100% X 100% = 66%

100 100

V - ORGANIZATION AND IMPLEMENTATION:

Heads of Ministries, agencies equivalent to Ministries, government agencies, central agencies of social organizations shall direct the implementation of the inventory of all units within their respective sectors to complete before September 30, 1995, summarize and process the results of the inventory, and develop a plan for using passenger cars within the sector to report to the Ministry of Finance before October 15, 1995.

Chairmen of provincial People's Committees and centrally governed city People's Committees shall direct the implementation of the inventory of all units within their respective localities to complete before September 31, 1995, summarize and process the results of the inventory, and develop a plan for using passenger cars within the locality to report to the Ministry of Finance before October 15, 1995.

The Ministry of Finance shall consolidate the results of the inventory from all Ministries, sectors, and localities and report to the Government before October 30, 1995.

During the implementation process, if any difficulties arise, they should be promptly reported to the Ministry of Finance (Inventory Steering Committee) for resolution.

 

UNIT:...MODEL NUMBER 01 TC/QLCS

OBJECTIVE: HCSN "STATE OWNED ENTERPRISES"

BELONGING TO MINISTRY, PROVINCE...

INVENTORY AND RE-EVALUATION FORM FOR PASSENGER CARS OF ADMINISTRATIVE STATE-OWNED ENTERPRISES AND STATE-OWNED ENTERPRISES

Valid until 00:00 on September 1, 1995

(Issued together with Circular No.: date month year 1995 of the Minister of Finance)

1/ Name and code of passenger car: ...

2/ Registration plate number (*): ...

3/ Number of seats: ...

4/ Country of manufacture: ...

5/ Power: ...

6/ Year put into use: ...

7/ Original cost according to accounting records: ... thousand dong

8/ Residual value according to accounting records (**) ... thousand dong

9/ Original cost according to current price ... thousand dong

10/ Residual value percentage ...%

11/ Residual value (according to current price = (9) x (10)) ... thousand dong

12/ Current status of passenger car:

a/ In use:

b/ No need for use:

c/ Pending liquidation:

Date month year 1995

Person preparing the inventory form Head of unit
(Signature and full name) (Signature and stamp)

Note: (*) If the vehicle does not have a registration plate, clearly indicate the chassis number and engine number.

(**) Applies to production and business units.

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