Circular No. 65/2021/TT-BTC on the preparation of budgets, management, use, and settlement of maintenance and repair costs for state assets

CIRCULAR

Regulations on the preparation of budgets, management, use, and settlement of maintenance and repair costs for state assets

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Construction Law dated June 18, 2014 and the Law Amending and Supplementing Certain Provisions of the Construction Law dated June 17, 2020;

Pursuant to the Law on Management and Use of State Assets dated June 21, 2017;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 151/2017/NĐ-CP dated December 26, 2017 of the Government detailing certain provisions of the Law on Management and Use of State Property;

Pursuant to the Government Decree No. 06/2021/NĐ-CP dated January 26, 2021 detailing certain provisions on quality management, construction works, and maintenance of construction projects;

Implementing Directive No. 20/CT-TTg dated July 23, 2021 of the Prime Minister on building the Socio-Economic Development Plan and State Budget Estimate for 2022;

At the proposal of the Director of the Administrative and Public Financial Affairs Department,

The Minister of Finance issues this Circular regulating the preparation of budgets, management, use, and settlement of maintenance and repair costs for state assets.

Article 1. Scope of application

This Circular applies to agencies and units entrusted with managing and using state assets including:

1. State agencies (excluding Vietnamese representative offices abroad).

2. Publicly funded non-profit organizations.

3. Communist Party of Vietnam agencies.

4. Political-social organizations, political-professional social organizations, social organizations, social-professional organizations, and other organizations established in accordance with laws on associations.

5. Agencies, organizations, and units entrusted with managing and using state assets in accordance with laws on the management and use of state assets and related laws.

Hereinafter, the entities mentioned in this Article shall be collectively referred to as agencies and units.

Article 2. Scope of Regulation

This Circular guides the preparation of budgets, management, use, and settlement of maintenance and repair costs for state assets from the following sources of funds:

a) Regular expenditure from the state budget allocated correspondingly to each field of state asset usage within the annual state budget estimate assigned to agencies and units according to the current state budget hierarchy;

b) Funds retained for regular expenditure from fees in accordance with the law;

c) Funds from the development fund of the unit;

d) Other lawful sources of funds.

2. This Circular does not apply to:

a) Costs for construction, renovation, upgrading, and expansion of state assets as stipulated in Clause 1, Article 6 of the Investment Law and guiding documents;

b) Costs for construction, upgrading, renovation, and repair of state assets in the defense and security sectors implemented in accordance with Decree No. 165/2016/NĐ-CP dated December 24, 2016 of the Government on the management and use of the state budget for certain activities in the defense and security sectors, amended and supplemented by Decree No. 01/2020/NĐ-CP dated May 14, 2020 of the Government;

c) For fields where there are specialized laws governing the management of maintenance and repair costs for state assets, such costs shall be implemented in accordance with the specialized regulations for each field;

d) Maintenance and repair costs for state assets managed and used by state-owned enterprises shall be implemented in accordance with regulations for state-owned enterprises.

Article 3. Responsibilities for the maintenance and repair of state assets:

1. Maintenance and repair work aims to ensure that state assets are maintained in accordance with their original functions and technical standards; it does not alter the functions or scale of the state assets.

2. Agencies and units entrusted with managing and using state assets have the responsibility to carry out maintenance and repair work in accordance with the systems, standards, and economic-technical norms issued by competent authorities in accordance with the Law on Management and Use of State Assets and guiding documents.

3. Authority to issue systems, standards, and economic-technical norms for the maintenance and repair of state assets:

a) Ministries managing industries and sectors establish systems, standards, and economic-technical norms for the maintenance and repair of state assets within their respective areas of national administration;

b) For state assets without systems, standards, and economic-technical norms as specified in point a of this clause, based on manufacturer guidelines and actual usage of the assets, the Minister, head of central agencies, or Chairman of the People's Committee of provinces may establish or delegate authority to establish systems, standards, and economic-technical norms for the maintenance and repair applicable to state assets under their administrative jurisdiction.

Article 4. Preparation of budget estimates for maintenance and repair costs of state assets

1. The preparation of budget estimates for maintenance and repair costs of state assets shall be carried out in accordance with the regulations, standards, and economic-technical norms as prescribed by laws on the state budget.

2. This Circular provides additional guidance on the preparation of budget estimates as follows:

a) Annually, based on the guidelines for preparing the state budget estimate issued by the competent authority, and based on the responsibility for maintaining and repairing state assets and the economic-technical norms for maintenance and repair of state assets stipulated in Article 3 of this Circular, the agencies and units entrusted with managing and using state assets shall prepare the budget estimate for implementing maintenance and repair of state assets, consolidate it into their own agency's or unit's budget estimate, submit it to the superior management agency for review and consolidation into the first-level budget estimate submitted to the financial agency at the same level for submission to the competent authority in accordance with the laws on the state budget.

b) Documentation accompanying the budget estimate for maintenance and repair of construction works and equipment includes: name of the state asset requiring maintenance and repair; the most recent period of maintenance and repair of the state asset; reasons, objectives, volume of work for maintenance and repair; estimated cost, time for implementation, and completion time.

3. During the year, if an agency or unit has additional needs for maintenance and repair of state assets outside the allocated budget estimate, the agency or unit shall arrange within the scope of the allocated budget estimate and ensure compliance with the documentation requirements set forth in Clause 1 and Clause 2 of this Article.

4. In cases where natural disasters, epidemics, fires, or other force majeure events cause damage to state assets, and the agency or unit managing the state assets cannot balance the repair costs from the allocated budget estimate; based on reports assessing the extent of damage to the state assets, the agencies and units entrusted with managing and using the state assets shall prepare the budget estimate for repair and restoration of normal operation of the state assets, submit it to the superior management agency for review and consolidation, and submit it to the financial agency at the same level for submission to the competent authority to decide on the allocation of funds for repair and restoration of damaged state assets, restoring normal operation according to the extent of damage, within the capacity to balance the state budget and in accordance with the division of the state budget. The preparation of the budget estimate for repair and restoration of normal operation of state assets shall be carried out in accordance with the provisions of Clause 1 and Clause 2 of this Article.

Article 5. Management and use of budget funds for maintenance and repair of state assets

1. The management and use of budget funds for maintenance and repair of state assets shall be implemented in accordance with the Law on State Budget, Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of the Law on State Budget; Decree No. 11/2020/NĐ-CP dated January 20, 2020 of the Government on administrative procedures under the domain of the National Treasury; Circular No. 342/2016/TT-BTC dated December 30, 2016 detailing and guiding certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of the Law on State Budget; Circular No. 62/2020/TT-BTC dated June 22, 2020 of the Ministry of Finance guiding the control and payment of regular expenses from the state budget through the National Treasury; Circulars of the Ministry of Finance on organizing the implementation of annual state budget estimates.

2. This Circular provides additional guidance on budget funds for maintenance and repair of construction works and equipment as follows:

a) When allocating the budget estimate for maintenance and repair of construction works and equipment, the accompanying documentation includes: Decision approving the budget estimate by the competent authority and related documents (if any); detailed explanations of the following contents: economic-technical norms for maintenance and repair; name of the state asset requiring maintenance and repair; the most recent period of maintenance and repair of the state asset; reasons, objectives, volume of maintenance and repair work for the state asset; allocated budget; estimated time for implementation and completion time;

b) When controlling expenditures, making advance payments, and settling accounts for repair costs of construction works and equipment: Implement in accordance with the provisions of Clause 4, Article 35 of Decree No. 06/2021/NĐ-CP dated January 26, 2021 of the Government detailing certain contents on the management of quality and maintenance of construction works; specifically:

- For cases of repairing construction works and equipment with a repair cost estimate below VND 500 million: The head of the agency or unit managing the state asset approves the repair plan, including a detailed explanation of the contents specified in point a, Clause 2 of this Article;

- For cases of repairing construction works and equipment with a repair cost estimate of VND 500 million or more: The head of the agency or unit managing the state asset organizes the preparation, review, and approval of the economic-technical report or investment project according to the laws on investment in construction works.

3. Funds for planning repairs, compiling economic-technical reports, and preparing maintenance and repair budget estimates are included in the annual state budget estimate allocated to the agency or unit.

Article 6. Settlement of Operating Expenses

Agencies and units shall consolidate their annual settlement reports in accordance with Circular No. 107/2017/TT-BTC dated October 10, 2017, issued by the Ministry of Finance, guiding the accounting system for administrative and public institutions; Circular No. 137/2017/TT-BTC dated December 25, 2017, issued by the Ministry of Finance, stipulating the examination, verification, notification, and consolidation of annual settlements, and related documents.

Article 7. Implementation Provisions

1. This Circular takes effect from September 15, 2021.

2. For maintenance and repair tasks that have been approved and allocated funds to implement before this Circular takes effect, they shall continue to be implemented according to relevant laws governing the management and use of operating funds at the time of the budget approval until the project is settled.

3. Repeal Circular No. 92/2017/TT-BTC dated September 18, 2017, issued by the Ministry of Finance, concerning the preparation of budgets, allocation, and settlement of funds for the implementation of repairs, maintenance, renovation, upgrading, and expansion of physical facilities.

4. During implementation, if there are any difficulties, agencies and units are requested to report them to the Ministry of Finance for research and resolution.