Circular No. 69/1999/TT-BTC guides the handling of State-owned assets in the public service area following the comprehensive inventory and revaluation of fixed assets according to Decision No. 446/TTg dated July 2, 1997.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 69/1999/TT-BTC ON JUNE 9, 1999
GUIDELINES FOR THE HANDLING OF STATE ASSETS IN THE ADMINISTRATIVE AND PUBLIC SERVICE SECTOR AFTER THE COMPREHENSIVE INVENTORY AND REVALUATION OF FIXED ASSETS PURSUANT TO
DECISION NO. 466/TTG OF JULY 2, 1997

Pursuant to Decree No. 14/1998/NĐ-CP dated March 6, 1998 of the Government on state asset management;

Pursuant to Directive No. 02/1999/CT-TTG dated January 16, 1999 of the Prime Minister on strengthening the management of state assets in the administrative and public service sector after the comprehensive inventory and revaluation of fixed assets pursuant to Decision No. 466/Ttg dated July 2, 1997 of the Prime Minister;

The Ministry of Finance hereby provides guidelines for the handling of fixed assets after the comprehensive inventory and revaluation of state fixed assets at the time of zero hour on January 1, 1998 in administrative and public service units as follows:

I. PRINCIPLES FOR HANDLING FIXED ASSETS

1- For houses and land belonging to the offices of administrative and public service units that are currently being leased:

- The leasing unit must carry out the liquidation of the lease contract (or agreement); At the same time, the unit must rearrange and allocate the leased house and land area to its intended purpose as specified by the State when transferring the asset;

- After liquidating the lease contract for houses and land, the leasing unit must prepare a report detailing all financial revenues and expenditures related to the leasing of houses and land (from January 1, 1998 to the date of contract liquidation) to the same-level finance authority. The finance authority has the responsibility to check the revenues and expenditures to determine the amount of money the unit must pay into the State budget from the leasing activities of houses and land within the office premises.

* Expenses considered reasonable include: Renovation and repair costs for leasing purposes, electricity and water costs (if applicable), and other expenses that the lessor must pay as agreed in the lease contract.

2- For houses and land belonging to the office premises under state ownership that administrative and public service units are currently implementing a lease system with local land management authorities:

- Administrative and public service units must prepare a file on the leased land fund and submit it to the local land management authority and the Department of Finance and Price Control; the file includes:

+ A letter requesting the transfer of the office land fund from a lease system to direct management; accompanied by a detailed list of the area of houses (Form No. 1A-BC-KK/HCSN) and land (Form No. 2-BC-KK/HCSN) of the unit;

+ Copies of relevant documents related to the leasing of houses and land within the office premises of the unit;

+ A report summarizing the annual rent payments for houses and land (from 1995 to 1998).

- The local land management authority shall, based on the request files of administrative and public service units, conduct inspections and cross-referencing with actual records under their management; compile a complete list of houses and land funds currently leased to administrative and public service units and report to the Chairman of the Provincial People's Committee for a decision to transfer these funds to the Department of Finance and Price Control.

- After receiving the decision from the Chairman of the Provincial People's Committee, the local land management authority must hand over all files of houses and land transferred according to the decision of the Chairman of the Provincial People's Committee to the Department of Finance and Price Control.

- The Department of Finance and Price Control will organize the acceptance of this land fund and manage it in accordance with the regulations governing the management and use of office premises by administrative and public service units.

- In cases where houses and land within the office premises are leased from the local land management authority but were established as private property before July 1, 1991 (the effective date of the Housing Ordinance 1991), they shall be handled in accordance with Resolution No. 58/1998/NQ-UBTVQH10 dated August 20, 1998 of the Standing Committee of the National Assembly, session 10, and other State regulations regarding civil transactions concerning housing established before January 1, 1997.

3- For houses and land within the office premises of administrative and public service units that have been determined as not needed:

The unit must prepare a report and submit it to the superior management authority. The superior management authority is responsible for issuing a decision on handling or submitting to the competent authority for a decision on handling in accordance with the Regulations on the Transfer, Recovery, and Liquidation of State Assets in Administrative and Public Service Units of the Ministry of Finance.

4- For houses and guesthouses managed by administrative and public service units (excluding those of the Office of the Government, the Office of the National Assembly, the Vietnam Fatherland Front, the General Confederation of Labor Vietnam, and the Office of the Provincial People's Committees), which have not yet been converted to independent business operations, they shall be handled in accordance with Circular No. 5967/KTTH dated November 24, 1997 and Circular No. 1298/CP-KTTH dated November 2, 1998 of the Office of the Government, specifically:

- If the operation of guesthouses and rest houses meets the conditions to establish a business entity, the administrative and public service unit must follow the procedures prescribed by the State to establish a business entity for the guesthouse and rest house section;

- If guesthouses and rest houses do not meet the conditions to be converted to business operations, the Ministries, sectors, and relevant agencies are responsible for transferring them to the localities. The People's Committees of provinces and cities are responsible for arranging and transferring existing guesthouses and rest houses on their territory to production and business operations in accordance with current regulations.

5- For houses and land within the office premises of administrative and public service units that have been handed over to enterprises for use due to lack of need, but have not completed the transfer procedures as required:

- Administrative institutions must cooperate with enterprises to complete the transfer dossier, to report to the superior management agency (Ministry, sector, central organization for administrative institutions under central management; Department, Committee, sector for those under local management) to submit to the competent authority for a decision to transfer assets to enterprises. The transfer application dossier includes:

+ A letter requesting the transfer of land and buildings belonging to the administrative institution's office currently managed to enterprises;

+ A letter from the enterprise requesting to accept land and buildings from the administrative institution;

+ Opinions of authorized state agencies (such as the City Architect Office, Construction Department, and Land Administration) agreeing that the conversion of the function of these land and buildings is consistent with the overall master plan;

+ Copies of relevant documents related to the land and buildings requested for transfer.

- Ministries, sectors, and organizations at the central level (for central administrative institutions); Departments, Committees, and sectors at the local level (for local administrative institutions), based on the application dossier for transferring land and buildings of the administrative institutions within their jurisdiction, shall conduct inspections and compile cases requiring transfer to report to the Ministry of Finance for consolidation and submission to the Prime Minister for a decision to transfer (for central administrative institutions); report to the Provincial Department of Finance - Price Control for consolidation and submission to the Chairman of the People's Committee of the province or centrally-administered city for a decision to transfer (for local administrative institutions).

- In cases where the land and buildings of administrative institutions have been temporarily transferred to enterprises for use but are now found to be unable to be transferred, the administrative institution must request the enterprise to return them to the unit for use as an office. If the unit no longer needs to use them, it must prepare a dossier to request the superior authorized agency to reclaim these lands and buildings to arrange workplaces for units in need.

6- For land and buildings belonging to the offices of administrative institutions that have been used separately or entirely as residential purposes before 1995:

- Administrative institutions must prepare a dossier to request the conversion of the functions of these lands and buildings and report to the superior management agency (Ministry, sector, central organization for central administrative institutions; Department, Committee, sector for local administrative institutions). The dossier for requesting the conversion of the function of land and buildings belonging to the unit's office to be reported to the authorized state agency for handling includes:

+ A letter requesting the conversion of the function of land and buildings belonging to the administrative institution's office to residential and land for residential purposes;

+ Copies of relevant documents related to the land and buildings requested for conversion;

+ Opinions of authorized state agencies (such as the City Architect Office, Construction Department, and Land Administration) agreeing that the conversion of the function of these lands and buildings is consistent with the overall master plan;

+ Copies of decisions allocating housing for staff (if any) or other documents related to the allocation of housing for staff.

The superior management agency compiles and reports to the financial agency for submission to the competent authority for a decision to handle, specifically:

+ Central Ministries, sectors, and organizations compile and provide specific opinions to report to the Ministry of Finance for consolidation and submission to the Prime Minister for a decision to handle;

+ Local Departments, Committees, and sectors compile and provide specific opinions to report to the Provincial Department of Finance - Price Control for consolidation and submission to the Chairman of the People's Committee of the province or centrally-administered city for a decision to handle.

7- For transportation means and other fixed assets that are not land or buildings of administrative institutions that have been determined to no longer be needed or usable:

- Administrative institutions must report to the superior management agency for a decision to handle or report to the competent authority for a decision to handle according to the regulations on the transfer, recovery, and liquidation of state assets at administrative institutions as stipulated in the Circular of the Ministry of Finance.

- When implementing the transfer or acceptance of fixed assets according to the decision of the authorized state agency, the administrative institution must comply with the provisions of Circular No. 43TC/QLCS dated July 31, 1996, issued by the Ministry of Finance, guiding the acceptance and handover of fixed assets between administrative institutions and economic organizations according to the decision of the authorized state agency.

8- For land managed and used by administrative institutions that has not yet obtained a certificate of land use rights at the time of inventory, the administrative institution must complete the procedures to obtain a certificate of land use rights according to current land laws.

II. IMPLEMENTATION

1- Administrative institutions directly managing and using state fixed assets are responsible for:

- Arranging, managing, and using the existing state fixed asset fund at the unit reasonably, effectively, and economically;

- Based on the results of the revaluation of fixed assets at 0 hours on January 1, 1998, identifying the fixed assets currently at the unit that require handling, and reporting to the authorized agency for post-inventory fixed asset handling;

- Implementing fully and promptly the decision on handling fixed assets by the authorized state agency;

- Reporting the results of post-inventory fixed asset handling at the unit according to the prescribed time.

2- Ministries, sectors, and organizations at the central level and People's Committees of provinces and centrally-administered cities are responsible for:

- Directing administrative institutions within their jurisdiction to handle fixed assets after inventory according to the guidance provided in this Circular;

- Compiling and reporting to the Ministry of Finance the results of post-inventory fixed asset handling by ministries, sectors, and organizations at the central level and provincial and centrally-administered city people's committees, which they have handled or delegated to handle according to the authority specified in Article 9 of Decree No. 14/1998/NĐ-CP;

- Compiling and reporting to the Ministry of Finance cases recommended for handling so that the Ministry of Finance can consider issuing a decision to handle according to the authority specified in Article 9 of Decree No. 14/1998/NĐ-CP or submitting to the Prime Minister for a decision to handle.

- Prescribe the deadline for reporting the results of the disposal of fixed assets after inventory to subordinate units under its management scope, and compile the results of the disposal of fixed assets after inventory of Ministries, sectors, localities to the Ministry of Finance before June 30, 1999 for consolidation and submission to the Government.

3- The Ministry of Finance shall be responsible for:

- Receiving, examining, and considering recommendations for the disposal of fixed assets after inventory from Ministries, sectors, central-level mass organizations, and provincial-level People's Committees under the central government, issuing decisions on asset disposal in accordance with the authority prescribed in Article 9 of Decree No. 14/1998/NĐ-CP or submitting to the Prime Minister for decision-making in cases exceeding the prescribed authority;

- Receiving and reporting the results of the disposal of fixed assets after inventory from Ministries, sectors, central-level mass organizations, and provincial-level People's Committees; Compiling the overall results of the disposal of fixed assets after inventory nationwide to report to the Prime Minister.

4- The State Asset Management Agency and Provincial Departments of Finance and Prices under the central government shall be responsible for assisting the Minister of Finance and the Chairman of the Provincial People's Committee in guiding and urging administrative and public service agencies to effectively implement the work of disposing of fixed assets after inventory and compiling reports on the results of the disposal of fixed assets after inventory in accordance with the prescribed deadlines.

This Circular shall take effect fifteen days from the date of signature. In the course of implementation, if there are any difficulties, they should be promptly reflected to the Ministry of Finance (State Asset Management Agency) for consideration and resolution.