Circular No. 69/2003/TT-BTC guiding the management and use of costs for supervision and evaluation of investment.

CIRCULAR

Guidelines for Managing and Using Supervision and Evaluation Investment Costs

Pursuant to the State Budget Law;

Pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on the issuance of the Regulation on Investment Management and Construction; Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government amending and supplementing certain articles of the Regulation on Investment Management and Construction issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government; Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain articles of the Regulation on Investment Management and Construction issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government;

After reaching consensus with the Ministry of Planning and Investment and the Ministry of Construction, the Ministry of Finance provides guidelines for managing and using supervision and evaluation investment costs as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Supervision and evaluation investment costs include all necessary expenses for organizing the supervision and evaluation of investment activities of the national economy, sectors, fields, and localities (collectively referred to as comprehensive supervision and evaluation of investments) and supervision and evaluation of investment projects.

2. The sources of funds for implementing the tasks of supervision and evaluation of investments include: regular expenditure (the operational budget of organizations assigned the task of supervision and evaluation of investments) allocated for comprehensive supervision and evaluation of investments; investment expenditure (included in the total investment capital of the project) allocated for supervision and evaluation of investment projects.

3. Organizations assigned the task of supervision and evaluation of investments (hereinafter collectively referred to as supervisory and evaluation agencies), project sponsors, and consulting organizations (if any) using state budget funds or other investment funds to carry out supervision and evaluation of investments must ensure that they are used for their intended purposes, economically, and effectively according to current financial management regulations of the State and the provisions of this Circular.

4. Financial authorities: Department of Finance and Price Control for comprehensive supervision and evaluation of investments and investment projects managed by provincial and centrally-administered city levels; finance department for comprehensive supervision and evaluation of investments and investment projects managed by district and county levels; Financial Departments (Bureaus, Divisions) for comprehensive supervision and evaluation of investments and investment projects managed by central ministries, sectors, agencies, Central Enterprises 90, 91, independent companies (hereinafter collectively referred to as financial authorities) within their scope of management shall be responsible for guiding the preparation, review, approval of budgets, inspection of compliance, and approval of final accounts of supervision and evaluation investment costs according to the provisions of this Circular.

For investment projects managed by communes and towns, the organization assigned the task of managing commune finances shall implement the management of supervision and evaluation investment costs within their scope of management according to the provisions of this Circular.

II. SPECIFIC PROVISIONS

1. Sources of funds for supervision and evaluation investment costs:

1.1. Expenditure for comprehensive supervision and evaluation of investments approved by competent authorities and included in the annual state budget expenditure plan of the supervisory and evaluation agency.

1.2. Expenditure for supervision and evaluation of investment projects approved by competent authorities and included in the total investment capital of the project.

2. Contents of supervision and evaluation investment costs

Supervision and evaluation investment costs include:

- Payment for additional duties performed by staff involved in supervision and evaluation of investments (including overtime pay outside regular working hours).

- Payment for public services: electricity, water, fuel purchases, environmental sanitation payments, and other payments.

- Office supplies

- Communication

- Conferences

- Travel expenses

- Rental expenses

- Purchase of equipment serving specialized management areas

- Other expenses

3. Standards for supervision and evaluation investment costs are stipulated by the Ministry of Construction. In cases where consultancy services are hired to perform supervision and evaluation of investments, the expense level is calculated based on the maximum allowable rate as prescribed. State agencies assigned the task of performing supervision and evaluation of investments may calculate their expense levels at 60% of the prescribed rates.

4. Preparation of the budget for supervision and evaluation investment costs

4.1. Budget for comprehensive supervision and evaluation investment costs

- The budget for comprehensive supervision and evaluation investment costs is prepared annually along with the regular expenditure budget of the agency assigned the task of performing comprehensive supervision and evaluation.

- The basis for preparing the budget for comprehensive supervision and evaluation investment costs includes:

+ Decision of the competent authority assigning the task of comprehensive supervision and evaluation of investments to the supervisory agency.

+ Comprehensive supervision and evaluation investment plan approved by the competent authority.

The person authorized to approve the regular expenditure budget of the unit assigned the task of comprehensive supervision and evaluation also approves the budget for comprehensive supervision and evaluation investment costs.

4.2. Budget for supervision and evaluation investment project costs

- The budget for supervision and evaluation investment project costs is prepared by the agency assigned the task of supervising and evaluating investment projects and transferred to the project sponsor for inclusion in the project management cost and included in the total investment capital of the project. For work related to supervision and evaluation of investments carried out by the project sponsor, the sponsor prepares the budget and includes it in the project management cost of the sponsor.

- The basis for preparing the budget for supervision and evaluation investment project costs includes:

+ Decision of the competent authority assigning the task of supervision and evaluation of investment projects to the supervisory agency.

+ Supervision and evaluation investment project plan approved by the competent authority.

+ Annual investment capital plan of the project

- The competent authority approving the budget for project management costs according to the Circular guiding the management and use of project management costs also approves the budget for supervision and evaluation investment project costs.

After being approved, the budget for supervision and evaluation investment project costs is sent by the project sponsor to the supervisory and evaluation agency and to the settlement or capital disbursement authority where the sponsor has an account opened.

5. Settlement and advance payment

5. 1. For the costs of supervision and overall investment evaluation that are temporarily advanced and settled according to current regulations applicable to budgetary units. The bases for temporary advance and settlement include:

- The decision of the competent authority assigning the task of supervision and overall investment evaluation.

- The implementation plan for supervision and evaluation approved by the competent authority.

- The approved budget estimate for supervision and overall investment evaluation costs.

- Reports on the progress of supervision and investment evaluation.

- Payment vouchers in accordance with regulations.

5.2. For the costs of supervision and project investment evaluation: Based on the payment request file of the supervisory and evaluation agency including the application for temporary advance and settlement, reports on the progress and results of supervision and investment evaluation, and payment vouchers in accordance with current regulations, the investor shall process the temporary advance or settlement of supervision and project investment evaluation costs and submit them to the settlement agency or capital disbursement agency. The settlement agency or capital disbursement agency shall temporarily advance or disburse funds to the investor, who will then transfer the temporarily advanced or disbursed funds to the supervisory and evaluation agency.

Investors performing tasks related to supervision and project investment evaluation (as stipulated in Circular No. 03/2003/TT-BKH dated May 19, 2003 of the Ministry of Planning and Investment guiding supervision and evaluation work) shall be entitled to supervision and evaluation costs at the levels prescribed by the Ministry of Construction.

The temporary advance and settlement of supervision and investment evaluation costs for investors shall be carried out in accordance with current regulations on the management of capital disbursement and settlement.

5.3. In cases where supervisory and evaluation agencies hire consulting organizations to perform supervision and evaluation tasks for projects, the investor shall enter into tender contracts with the consulting organizations in accordance with the content and requirements of the supervisory and evaluation agencies. The temporary advance and settlement of supervision and evaluation costs shall be carried out in accordance with current regulations on the management of capital disbursement and settlement for investment and construction consulting organizations.

6. Inspection and Settlement

6.1. Annually, through regular and irregular inspections as required by the competent authority, financial agencies (as specified in Point 4, Section I) shall organize inspections of the management and use of supervision and investment evaluation costs by organizations performing supervision and evaluation and investors under their jurisdiction to promptly correct and handle any violations during the management process by these organizations.

6.2. Settlement: At the end of the planning year (for overall investment supervision and evaluation work and projects completed within one year) and upon completion and handover of the project, the agency assigned the task of investment supervision and the investor must settle the supervision and evaluation costs.

6.2.1. Settlement of costs for overall investment supervision and evaluation: At the end of the planning year, the supervisory and evaluation agency shall base the settlement of supervision and evaluation costs on the approved budget estimate for supervision and evaluation costs and the actual costs incurred for supervision and evaluation work during the year, and incorporate it into the annual budget settlement report of their unit.

6.2.2. Settlement of costs for project supervision and evaluation: At the end of the planning year, the investor shall prepare the settlement report for project supervision and evaluation costs together with the management project cost settlement report. The annual management project cost settlement report must include the costs for project supervision and evaluation as the basis for the investor to incorporate into the project settlement.

7. Responsibilities of Relevant Agencies

7.1. Responsibilities of the Investor

- Establishing, managing the annual budget estimate and settling the costs for supervision and evaluation in accordance with this Circular.

- Fully complying with all contents and regulations regarding supervision and evaluation work issued by the competent authority.

- Reconciling with the supervisory and evaluation agency and the settlement agency regarding the amount of funds settled for supervision and evaluation work.

- Being responsible for settling the costs for supervision and evaluation.

7.2. Responsibilities of the Supervisory and Evaluation Agency

- Establishing, managing, and using the costs for supervision and evaluation for overall investment supervision and evaluation and projects in accordance with this Circular.

- Settling and paying the costs for investment supervision to participating entities based on contracts, attendance records, completed volumes of work...

- Preparing and submitting the settlement report on overall investment supervision and evaluation costs in accordance with current regulations.

7.3. Responsibilities of the Settlement and Disbursement Agency

- Controlling the disbursement and settlement of supervision and evaluation costs in accordance with current state regulations.

- Checking, reconciling, and confirming the amount of funds settled at the request of the investor (or budgetary unit) when preparing the settlement report.

7.4. Responsibilities of Ministries, Sectors, and Localities

- Regularly directing inspections of the implementation of supervision and evaluation work by organizations performing such work and investors.

- Taking strict measures and forms to deal with violations that adversely affect the implementation of overall plans and construction investment projects.

III. IMPLEMENTATION PROVISIONS.

This Circular takes effect fifteen days from the date of publication in the Official Gazette. Relevant agencies, organizations, project investors, consulting organizations, and related agencies are responsible for implementing this Circular. Any difficulties encountered during implementation should be reported promptly to the Ministry of Finance for study and resolution.

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

                                                                                                       SIGNATURE OF THE MINISTER
                                                                                                       VICE MINISTER
                                                                                                       (SIGNED)

                                                                                                       NGUYEN CONG NGHIEP