CIRCULAR

Regulations on the management and use of revenues from project management activities of investors and project management boards using state budget funds.

_____________________________

 

Pursuant to the State Budget Law No. 83/2015/QH13 dated June 25, 2015;

Pursuant to Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on management of construction investment costs;

WHEREAS, Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project management for investment in construction;

Pursuant to Decree No. 42/2017/ND-CP dated April 5, 2017 of the Government amending and supplementing certain articles of Decree No. 59/2015/ND-CP dated June 18, 2015 of the Government on project management for investment construction;

Pursuant to Decree No. 16/2016/NĐ-CP dated March 16, 2016 of the Government on the management and use of official development assistance (ODA) and concessional loans from foreign donors;

Pursuant to Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government stipulating the self-management mechanism of public service units;

Pursuant to Decree No. 141/2016/ND-CP dated October 10, 2016 of the Government stipulating the self-management mechanism of public service units in economic services and other economic services;

Pursuant to Decree No. 130/2005/ND-CP dated October 17, 2005 of the Government stipulating the self-management and self-responsibility regime for administrative management expenses for state agencies;

Pursuant to Decree No. 117/2013/ND-CP dated October 7, 2013 of the Government amending and supplementing certain articles of Decree No. 130/2005/ND-CP dated October 17, 2005 of the Government stipulating the self-management and self-responsibility regime for administrative management expenses for state agencies;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Investment Department;

The Minister of Finance issues this Circular stipulating the management and use of revenues from project management activities of investors and project management boards using state budget funds.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. Scope of regulation: This Circular stipulates the management and use of revenues from project management activities of investors and project management boards using state budget funds (including projects using official development assistance (ODA) funds and preferential loans from foreign sponsors allocated to the state budget).

2. Applicability: Investors, Project Management Boards (PMUs), organizations, and individuals related to the management, use, inspection, audit, and payment control of revenues from project management activities of investors and PMUs using state budget funds (including projects using ODA funds and preferential loans from foreign sponsors allocated to the state budget).

3. For projects using ODA funds and preferential loans from foreign sponsors, where the provisions regarding the management and use of revenues by investors and PMUs in this Circular differ from the Agreement between the Government of Vietnam and the sponsor or international treaties to which Vietnam is a party, such provisions shall be applied according to the Agreement and international treaties.

4. This Circular does not regulate:

a) Consulting firms when performing consultancy management contracts signed with other investors and PMUs.

b) The management and use of revenues from project management activities of specialized PMUs and regional PMUs established by authorized representatives of state-owned enterprises and corporations in accordance with Clause 7, Article 1 of Decree No. 42/2017/ND-CP dated April 5, 2017 of the Government amending and supplementing certain articles of Decree No. 59/2015/ND-CP dated June 18, 2015 of the Government on project management for investment construction, which are implemented under a business mechanism and are not within the scope of regulation of this Circular.

Article 2.Revenues from project management activities Revenues from project management activities of investors and Project Management Units (PMUs) include:

1. Revenue from project management costs included in the total investment ceiling of projects assigned to manage and implement according to the decision of the competent authority. This cost is determined by preparing a budget or applying the project management cost standards as prescribed by the Ministry of Construction.

2. Revenue from fees deducted and retained from performing project management tasks such as: organizing the review of basic design, construction design; reviewing construction estimates and other activities as prescribed by current regulations.

3. Revenue of specialized PMUs and regional PMUs from consulting services for other investors and PMUs such as: managing projects entrusted by other investors in accordance with Circular No. 16/2016/TT-BXD dated June 30, 2016 of the Ministry of Construction guiding the implementation of certain Articles of Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on forms of organization for project management in construction investment; organizing the selection of contractors, supervising construction, installation of equipment, reviewing and auditing designs and estimates, and other consulting activities. The revenue level is determined by the signed contract, not contrary to legal provisions.

4. Revenue from organizing the implementation of compensation, support, and resettlement work (excluding the organizational costs for land clearance within the responsibility of the investor already included in the allocated project management costs as prescribed by the Ministry of Construction).

5. Revenue from post-completion project management and maintenance tasks of regional PMUs and specialized PMUs as prescribed in Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government.

6. Other lawful revenues as prescribed by law. These revenues are not included in the investment costs of projects assigned to manage.

7. In cases where the PMU is authorized by the competent authority to act as the state agency responsible for preparing and implementing public-private partnership (PPP) projects, the preparation of budgets, payment, and settlement of investment preparation costs and project implementation for PPP projects shall be carried out in accordance with Circular No. 55/2016/TT-BTC dated March 23, 2016 of the Ministry of Finance on certain financial management contents for PPP projects and the costs of selecting investors.

1. Investors and PMUs must manage and use revenues from project management activities in accordance with legal provisions, ensuring proper and efficient use for intended purposes and objects, economy, and effectiveness.

Article 3. Principles of Management

2. Payment agencies have the responsibility to monitor and promptly and fully pay project management costs to investors and PMUs in accordance with this Circular.

3. Financial authorities at all levels, in their assigned functions and responsibilities, have the duty to inspect and guide investors and PMUs to implement in accordance with this Circular.

4. Higher-level agencies of investors and PMUs direct investors and PMUs to manage and use revenues from project management activities for intended purposes, economically and effectively, democratically, transparently, and openly; comply with state financial-management-investment-construction systems and provisions in this Circular.

4. The superior authority of the project investor and the Project Management Board (BQLDA) directs the project investor and BQLDA to manage and utilize revenues from project management activities for their intended purposes, economically, efficiently, democratically, openly, and transparently; to comply with the State's financial management - investment - construction regulations and the provisions set forth in this Circular.

Article 4. Classification of Project Management Subjects

1. Group I: project investors assigned by the investment decision maker (excluding cases where the investment decision maker assigns specialized project management units or regional project management units to be the project investors), and project management units established by the investor according to Article 19 of Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project investment construction management.

2. Group II: specialized project management units and regional project management units established by the Minister, Head of Central Agencies, Chairman of Provincial People's Committees, and Chairman of District People's Committees according to Clause 7, Article 1 of Decree No. 42/2017/NĐ-CP dated April 5, 2017 of the Government.

Specialized project management units and regional construction project management units develop financial autonomy plans suitable for their plans and actual conditions, report to the establishment decision-maker for approval according to Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government on the mechanism of autonomy for public service units; Decree No. 141/2016/NĐ-CP dated October 10, 2016 of the Government on the mechanism of autonomy for public service units in economic services and other economic services.

3. Investors and project management units in Group I shall implement budget preparation and settlement of income and expenditure according to Section 1, Chapter II of this Circular. Project management units in Group II shall implement annual budget preparation and settlement of income and expenditure according to Section 2, Chapter II of this Circular.

Article 5. Accounting System

Investors and project management units shall follow the accounting guidelines applicable to project investors as stipulated in the Circular guiding accounting; including:

1. Income from project management activities and consulting work related to projects managed according to the competent authority's decision, after deducting directly related expenses, shall be added to the construction investment funds of the projects.

2. Income from service provision activities through economic contracts and other income shall be recorded as revenue of the project management unit.

Article 6. Transaction Accounts

1. Investors and project management units shall open transaction accounts to reflect income and expenditure from project management activities according to the State Budget Law and relevant laws. For investors and specialized project management units managing multiple projects, a single account may be opened at the State Treasury convenient for transactions to receive income from all managed projects.

2. The capital disbursement agency shall temporarily advance and settle project management costs according to the approved budget by the competent authority; capital advance and payment system; requests from investors and project management units; current financial management regulations, and specific provisions in this Circular.

3. Regional project management units and specialized project management units with service activities shall open deposit accounts at banks or State Treasuries to reflect income and expenditure from service activities. Regional project management units and specialized project management units entrusted to manage projects funded by state budgets shall open accounts at State Treasuries for such entrusted projects.

Article 7. Fulfilling Obligations with the State Budget

Regional Project Management Boards (BQLDA khu vực), Specialized Project Management Boards (BQLDA chuyên ngành) must register and fully pay all types of taxes, fees, and charges from their revenue from consulting services provided to project sponsors, other Project Management Boards (BQLDA khác), and other lawful revenues that are not included in the investment costs of assigned management projects, in accordance with current laws on taxes, fees, and charges.

Article 8. Management and Use of Assets

The procurement, management, and use of assets for project management shall be carried out in accordance with the Law on Management and Use of State Assets, the Law on Bidding, state standards and related laws. Project sponsors and Group I Project Management Boards (BQLDA nhóm I) shall implement asset management and use in accordance with the relevant provisions of the Law on Management and Use of State Assets. Group II Project Management Boards (BQLDA nhóm II) shall manage and use assets according to the regulations applicable to public service units with self-financing autonomy and shall depreciate fixed assets in accordance with the prescribed regulations.

Chapter II

SPECIFIC PROVISIONS

Section 1

MANAGEMENT AND USE OF REVENUES OF PROJECT SPONSORS AND GROUP I PROJECT MANAGEMENT BOARDS

Article 9. Preparation annual budget for project management income and expenditure

1. Project sponsors and Project Management Boards managing a single project with a total investment amount less than 15 billion VND are not required to prepare and approve a budget for project management income and expenditure; however, they must comply with the expenditure items specified in Article 11 of this Circular and must not exceed the prescribed management fee rate.

2. Based on the specific conditions of the project, the project sponsor decides whether to prepare and approve a unified budget for both the project sponsor and the Project Management Board for convenient use, or to prepare and approve two separate budgets for project management income and expenditure for the project sponsor and the Project Management Board.

3. Basis for preparing the budget for project management income and expenditure

a) Decision assigning the role of project sponsor, decision establishing the Project Management Board;

b) Investment decision, decision approving the budget;

c) Budget for preparatory work expenses (for income and project management expenses during the preparatory phase);

d) Documents permitting the project sponsor and Project Management Board to perform certain tasks such as receiving and storing project materials and equipment, other activities, and the approved budget for these tasks;

đ) Revenues as stipulated in Article 2 of this Circular;

e) Current regulations on the extraction rates for project management costs and investment and construction consultancy fees;

g) Annual salary calculation table for project management staff according to Model No. 03/DT-QLDA issued together with this Circular, clearly identifying the list of directly involved project management staff under three categories: staff receiving salaries from the project, staff receiving contractual salaries, and staff concurrently managing the project;

h) Current financial management regulations for state agencies and public service units;

i) Standards and quotas issued by competent state authorities in accordance with laws on asset procurement, car quotas; office space standards and quotas; home and mobile phone allowances; foreign travel allowances; foreign reception and international conference allowances in Vietnam;

k) Other project bases (if any).

4. The budget for project management income and expenditure consists of two parts: Income Budget and Expenditure Budget.

Article 10. Content of the revenue budget estimate

1. Determining the sources of revenue to be allocated for each project:

Determine the management fee source for each assigned project to be recorded in Form No. 01(i)/DT-QLDA - Project Management Fee Calculation Table issued together with this Circular. Form No. 01(i)/DT-QLDA shall be prepared separately for each project (i), where (i) will range from 1 to n in cases where the investor is assigned to manage multiple projects, specifically as follows:

a) Based on the approved total investment amount of the project and the management cost allocation rate according to the published documents of the competent authority to determine the project management fee (denoted as of_QLDA). In cases where the projects do not have allocation rates specified in the published documents or only involve preparatory work for the project, allocate according to the budget approved by the assigning authority. For ODA projects, if the project Agreement or the Non-Reimbursable Aid Agreement signed between the Government of Vietnam and the donor specifies the management fee amount, follow that Agreement or Agreement.

b) Based on the approved total investment amount of the project and the allocation rate for consulting fees for investment and construction according to the published documents of the competent authority to determine the consulting fees for investment and construction that the investor and the Project Management Board (PMB) will undertake themselves (denoted as of_TV).

In cases where there are no allocation rates for consulting fees in the published documents, prepare the budget according to regulations. of_{c) Determine the specific expenditure levels for tasks within the project management costs that the investor and PMB need to hire consultants to perform (including cases where the investor hires specialized PMBs or regional PMBs to manage the project under a Delegation of Management Contract) (denoted as}).

TTV of_{d) The portion of the project management fee that the investor and PMB can use for each project throughout the project management period (denoted as}QLDA (CĐT)

TV  

d) Regarding the division of project management costs between the investor and the PMB established by the investor: The ratio of cost allocation corresponds to the ratio of task assignment and responsibility between the investor and the PMB decided by the investor and recorded in the decision to establish the PMB or the task assignment document.

In cases where the investment decision maker assigns the investor to sign a contract with specialized PMBs or regional PMBs to manage the project, the division of project management costs is based on the content, volume, and nature of the project management tasks undertaken by the investor and the PMB, as reflected in the contract between the investor and the PMB after obtaining approval from the investment decision maker.

e) Forecast the allocation of project management costs for each year during the implementation of the project.

Article 11. Content of the Expenditure Budget

The content of the expenditure budget of the project owner and Project Management Board (BQLDA) shall be recorded in Model No. 04/DT-QLDA issued together with this Circular, including the following specific expenditure items:

1. Salary expenses:

a) Rank-based salary according to the assigned salary fund; contractual salary for individuals receiving salary from the project as decided by the competent authority and in accordance with current State regulations on salary systems for civil servants, public officials, and armed forces personnel.

b) Overtime pay and night shift pay in accordance with the Labor Law and its implementing regulations (Decree No. 45/2013/NQ-CP dated May 10, 2013 of the Government detailing certain provisions of the Labor Code on working hours and rest periods; Joint Circular No. 08/2005/TTLT-BNV-BTC dated January 5, 2005 of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of night shift and overtime pay for civil servants, public officials, and other relevant amendments, supplements, or replacements if applicable).

2. Payment for labor services based on specific tasks as agreed upon in contracts and in compliance with legal provisions.

3. Allowances:

a) Seniority allowance exceeding the ceiling, position allowance, leadership allowance for兼任多个职务的补贴，地区补贴，特殊补贴，吸引补贴，流动补贴，危险补贴，根据政府第204/2004/NĐ-CP号2004年12月14日关于公务员、职员和武装部队人员工资制度的决定；政府第17/2013/NĐ-CP号2013年2月19日和第117/2016/NĐ-CP号2016年7月21日关于修改补充政府第204/2004/NĐ-CP号2004年12月14日决定的若干条款以及内务部发布的相关指导通函的规定的职业或工作的特殊津贴。

b) Allowance for concurrently managing projects:

- For civil servants, public officials, and employees concurrently managing projects at a Project Management Board (BQLDA), they shall receive project management allowances corresponding to their time spent at the BQLDA. The maximum monthly allowance for concurrently managing a project for an individual is 50% of their monthly salary and allowance.

- In cases where civil servants, public officials, and employees are concurrently managing multiple BQLDAs, the concurrent project management allowance will be determined according to the proportion of time spent at each BQLDA, but the total allowance for all concurrently managed BQLDAs cannot exceed 100% of the salary and allowance level they receive.

- Individuals who have received salaries as stipulated in Clause 1 of this Article shall not receive concurrent management allowances as provided in this Clause.

4. Deductions from salary: social insurance, health insurance, unemployment insurance (if applicable), trade union fees, and other deductions for individuals receiving salary from the project as decided by the competent authority.

5. Reward expenses: regular rewards, special rewards (if applicable), and related costs. The amount of reward money for individuals and groups shall be in accordance with Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government detailing certain provisions of the Law on Encouragement and Rewards and the Law Amending and Supplementing Certain Provisions of the Law on Encouragement and Rewards; and Circular No. 71/2011/TT-BTC dated May 24, 2011 of the Ministry of Finance guiding financial management in implementing the reward system. The maximum amount set aside in the budget for reward money shall not exceed 20% of the total salary and position allowance of the number of civil servants, workers, and employees within the establishment and approved annual remuneration as stipulated in Circular No. 71/2011/TT-BTC dated May 24, 2011.

6. Collective welfare expenses: payment for leave, leave benefits, regular hardship assistance, sudden hardship assistance, medical expenses.

7. Public service payment expenses: electricity, water, environmental sanitation, fuel, vehicle allocation, and other services.

8. Office supplies purchase expenses: office tools, filing cabinets, desks and chairs, stationery, protective equipment, and other items.

9. Information, propaganda, and communication expenses: telephone charges, postal services, fax, internet, books, newspapers, management documents.

10. Conference expenses: implemented in accordance with Circular No. 40/2017/TT-BTC dated April 28, 2017 of the Ministry of Finance on travel expenses and conference spending regulations and any subsequent amendments or supplements.

11. Travel expenses: implemented in accordance with Circular No. 40/2017/TT-BTC dated April 28, 2017 of the Ministry of Finance on travel expense regulations and conference spending regulations and any subsequent amendments or supplements.

12. Rental expenses: rental of transportation means, office space, various service equipment, hiring of experts and lecturers, retraining of staff, and other rentals.

13. Expenses for overseas business trips: implemented in accordance with the content, standards, and cost limits specified in Circular No. 102/2012/TT-BTC dated June 21, 2012 of the Ministry of Finance on travel expense regulations for state civil servants and officials on short-term overseas missions funded by the state budget and any subsequent amendments or supplements.

14. Expenses for hosting foreign guests: implemented in accordance with Circular No. 01/2010/TT-BTC dated January 6, 2010 of the Ministry of Finance on reception expenses for foreign guests visiting Vietnam, organizing international conferences and seminars in Vietnam, domestic reception expenses, and any subsequent guidance, amendments, or supplements.

15. Regular maintenance expenses for assets: the maintenance of assets serving the management of the project by the project owner and BQLDA must be included in the budget approved by the competent authority in accordance with current State regulations on the management and use of state assets.

16. Asset procurement expenses for project management: houses, transportation means, fire protection equipment, computers, computer software, office machines, and other assets serving the management of the project by the project owner and BQLDA must be included in the budget approved by the competent authority in accordance with current State regulations on the management and use of state assets.

17. Other expenses: tax payment, fees, charges, property and vehicle insurance, hospitality expenses, scientific and technological application costs, management system information project costs, and other expenses.

18. Reserve: maximum equal to 10% of the budget estimate.

The expenditure standards for the expenses under this Article shall be implemented in accordance with the current regulations applicable to state agencies and public service units.

Article 12. Review and Approval of Budget Estimates for Project Management Revenue and Expenditure

1. The project sponsor shall review and approve the budget estimates for project management revenue and expenditure.

2. Documents for submission for the review of budget estimates for project management revenue and expenditure:

a) Request for approval; investment decision; decision approving the construction project budget; decision establishing the Project Management Board (BQLDA);

b) Table calculating project management activity revenue according to Model No. 01(i)/DT-QLDA;

c) Annual project management revenue budget according to Model No. 02/DT-QLDA.

d) Table calculating annual salary according to Model No. 03/DT-QLDA;

đ) Decision on staff assignment, civil servants, and officials working concurrently, determining the corresponding ratio of time spent at the Project Management Board (BQLDA).

e) Annual project management expenditure budget according to Model No. 04/DT-QLDA.

3. Content of the review of budget estimates for project management revenue and expenditure:

a) Review of the content of work, calculation methods, and appropriateness in allocating financial resources for each year in the table calculating project management activity revenue according to Model No. 01(i)/DT-QLDA;

b) Review of the appropriateness in the project management revenue budget table according to Model No. 02/DT-QLDA;

c) Review of the appropriateness of the expenditure items in the budget according to Model No. 04/DT-QLDA with the current national financial standards, norms, and regulations.

4. The period for reviewing and approving the budget estimates for project management revenue and expenditure shall be within 14 working days from the date when the project sponsor receives all necessary documents for the review of the budget estimates for project management revenue and expenditure as stipulated and the documents ensure legality and validity.

5. The decision approving the annual budget estimates for project management revenue and expenditure according to Model No. 01/QĐ-QLDA issued together with this Circular shall be sent to the Project Management Board (BQLDA), the settlement agency, and related units for implementation.

6. During the implementation process, the project sponsor may proactively adjust and bear responsibility for adjusting the expenditures within the approved annual budget. In case of exceeding the budget, it must be reviewed and approved for adjustment and supplementation.

Article 13. Provisions on the Use of Saved Financial Resources

1. The amount of saved project management funds at the end of the fiscal year is the difference between the actual expenditure lower than the allocated financial resources in the approved project management revenue and expenditure budget after completing assigned tasks and works in the year regarding project management.

Special management activities arising in the year, procurement and regular maintenance costs already approved in the budget if not implemented in the year but carried over to the next year shall not be considered as saved funds in the year.

2. Contents of using saved project management funds:

a) Additional income expenses:

- Within the scope of saved financial resources, the project sponsor and the Project Management Board (BQLDA) determine the additional income coefficient up to a maximum of 1.0 (one) times the salary grade, rank, and position stipulated by the State to pay additional income to cadres, civil servants, officials, and those receiving salaries from project management expenses.

- The payment of additional income to employees must ensure the principle of linking with workload, assigned tasks, completion level, and attracting high-quality labor while maintaining reasonable parity with the salaries of cadres and civil servants in the same unit.

b) Reward expenses: periodic or extraordinary rewards for groups and individuals based on work results and contributions (outside the existing reward system under the Law on Commendation and Awards).

c) Expenses for collective welfare activities:

- Supporting group activities;

- Supporting holidays, festivals, and commemorative days (Vietnamese Women's Day, Martyrs' Day, etc.);

- Lunches, condolences, celebrations, illness visits, retirement, and leave;

- Supporting clothing expenses for cadres and employees;

- Supporting cadres, civil servants, and employees during organizational streamlining;

- Expenses for building and repairing welfare facilities.

d) Unspent saved funds at the end of the year can be transferred to be used in subsequent years; simultaneously, they should be included in Model No. 02/DT-QLDA (Part I-Funds from previous year carried over) to prepare the budget for the following year.

đ) The project sponsor and the Project Management Board (BQLDA) shall establish a regulation on the use of saved project management funds, report to the superior management authority for decision-making or obtain approval before issuing the regulation.

3. Provisional additional income expenses.

Based on the potential savings in the planned year, the project sponsor and the Project Management Board (BQLDA) shall decide:

a) Provisional additional income expenses in the year shall be implemented quarterly or semi-annually depending on the specific conditions of each project sponsor and Project Management Board (BQLDA).

b) The provisional additional income expense per occasion shall be a maximum of 60% of the salary grade, rank, and position stipulated by the State corresponding to three months or six months of the project sponsor and Project Management Board (BQLDA).

c) At the end of the year, after settling the project management expenses, if the saved funds are lower than the amount determined by the unit, based on the approved project management expense settlement by the competent authority, the State Treasury where transactions take place shall request the project sponsor and Project Management Board (BQLDA) to handle the procedures for returning the excess funds or deducting them from the savings of the following year.

Article 14. Settlement of Revenue and Expenditure for Project Management     

1. At the end of each fiscal year, the project sponsor and the Project Management Board shall seek confirmation from the settlement agency to complete the revenue and expenditure settlement report for project management according to Form No. 01/QT-QLDA no later than February 28 of the following year. The project sponsor shall organize the review and approval of the revenue and expenditure settlement report for project management.

For projects with total investment under VND 15 billion, the project sponsor and the Project Management Board are not required to prepare and approve annual revenue and expenditure settlement reports. Upon completion of the managed project, the project sponsor and the Project Management Board shall prepare a final project management cost settlement report along with supporting documents and project completion settlement files to be submitted to the settlement review authority for approval in accordance with regulations on the settlement of completed projects funded by state capital.

2. The review and approval period for the revenue and expenditure settlement report for project management shall be within 14 working days from the date when the project sponsor receives all necessary review files for the revenue and expenditure settlement report for project management as prescribed and the files ensure legality and validity.

3. Settlement Report Documentation:

a) Petition for Approval of Project Management Cost Settlement;

b) Form No. 01/QT-QLDA: Summary Table of Project Management Cost Settlement for the Year, including confirmed figures of funds already settled by the settlement agency;

c) Relevant expense vouchers generated during the year;

d) Copies of relevant documents such as decisions on annual budget allocation, decisions on mid-year budget adjustments (if any), notifications of previous year's settlement approvals.

4. Review Content:

a) Review the use of revenues from project management activities during the planning year;

b) Review and verify the consistency between the proposed settlement figures in the Annual Revenue and Expenditure Settlement Report for Project Management according to Form No. 01/QT-QLDA and the established standards, spending regulations issued by the State, and approved or adjusted project management cost budgets;

c) Review the legality and validity of expense vouchers in accordance with current State regulations;

d) Review the appropriateness of the settlement value distribution for specific projects implemented during the planning year.

5. Decision on Approval of Project Management Cost Settlement:

a) Decision on Approval of Project Management Cost Settlement for the Planning Year according to Form No. 01.QĐ/QT-QLDA;

b) Final project management cost settlement for the entire project upon completion is included in the Decision on Approval of Final Project Completion Settlement.

6. Handling of Annual Surplus Funds: Any surplus from revenues exceeding expenditures or unspent portions of approved budgets are carried over to subsequent years and summarized in Form No. 02/DT-QLDA (Section I - Funds from Previous Year Carried Over).

7. Allocation of Annual Project Management Costs: In cases where the project sponsor directly manages multiple projects, the sponsor shall allocate project management costs for assigned projects based on the principle:

a) Directly allocate costs for consulting work, receipt and storage of materials and equipment, and other direct project costs to the respective projects;

b) Common management costs shall be allocated proportionally based on the total investment amounts of the projects.

8. When individual projects assigned for management are completed, the project management cost settlement is the aggregate of annually approved project management cost settlements for each corresponding project.

9. Specifically for the Project Management Board managing a single construction project: After the managed project is completed, if the temporarily advanced and settled project management funds exceed the approved project management cost settlement value in the final project completion settlement approved by the competent authority, the Project Management Board must remit the difference to the state treasury. If the temporarily advanced and settled project management funds are less than the approved project management cost settlement value in the final project completion settlement approved by the competent authority, the National Treasury will settle the difference for the Project Management Board upon its request and in compliance with current regulations. After the Project Management Board completes its tasks and dissolves, asset disposal shall be handled in accordance with the law.

Section 2

MANAGEMENT AND USE OF REVENUES OF PROJECT MANAGEMENT BOARDS

GROUP II

Article 15. Principles for exercising autonomy and financial responsibility

1. Fulfill assigned tasks. For activities providing investment construction consulting services, they must be consistent with the assigned functions and tasks, match the unit's professional capacity and finances, and not affect the main tasks of the unit.

2. Implement transparency and democracy in accordance with the provisions of the law.

3. Exercising autonomy must be linked to accountability before the direct superior management agency and before the law for their decisions; at the same time, they must be subject to inspection and supervision by state agencies with competent authority.

4. Ensure the interests of the State, rights and obligations of organizations and individuals as prescribed by law.

Article 16. Autonomy in using financial resources

1. The financial resources of the Project Management Board (BQLDA) Group II are the revenues stipulated in Article 2 of this Circular.

2. Based on assigned tasks and financial capacity, for the regular expenditure items specified in Clause 1 of Article 17 of this Circular, the Director of the BQLDA Group II may decide certain levels of expenditure for professional activities and management costs as follows:

a) For expenditure items that have established expenditure standards according to the regulations of state agencies with competent authority: based on financial capacity, the BQLDA may decide higher or lower expenditure levels than those set by state agencies with competent authority and stipulated in the internal expenditure regulation of the unit.

b) For expenditure items without established expenditure standards according to the regulations of state agencies with competent authority: based on actual conditions and expenditure needs of the unit, the unit establishes appropriate expenditure levels and stipulates them in the internal expenditure regulation of the unit and bears responsibility for its decision.

3. The BQLDA must comply with the State's regulations on expenditure levels, standards, and quotas for car usage; standards and quotas for office space; standards and quotas for official mobile phones and landline phones at home; foreign travel allowances; reception allowances for foreign guests and international conferences in Vietnam.

4. Based on the nature of work, the Director of the BQLDA Group II may decide the cost-sharing method for each subordinate department or unit; make decisions on investment construction, new purchases, and major repairs of assets in accordance with current laws.

5. The BQLDA develops and approves the internal expenditure regulation after receiving written approval from the direct superior management agency.

Article 17. Expenditure Items

1. Regular expenditures include: salaries; wages paid to workers under contracts; salary allowances; reward expenses; contributions made according to salary; public service fees; office supplies; information, propaganda, and communication payments; conference fees; travel expenses; rental fees; group departure and arrival fees; depreciation of fixed assets; repair costs of assets; taxes payable as prescribed by law; and other expenses as regulated.

2. Non-regular expenditures include: basic construction investment expenditures; procurement of equipment and assets for project management; major repairs of fixed assets; expenditures for implementing staff reduction according to the current State policy (if applicable); and other related expenditures.

Article 18. Wages, remuneration, and income

1. Wages, remuneration: The wage expenses for cadres and employees are calculated according to the rank and position stipulated by the State. Remuneration paid to workers is based on specific tasks and agreements.

2. Additional income: The State encourages Project Management Boards (BQLDA) to increase revenue, reduce expenditures, streamline staffing, and enhance additional income for workers based on the completion of assigned tasks, after fulfilling their obligations to the state budget; depending on the financial results of the year, BQLDA may decide the total amount of additional income payments for workers not exceeding three times the salary grade, rank, position fund and allowances for cadres, civil servants, and public officials as prescribed by the State.

The payment of income to workers within units shall be carried out on the principle that those with high work efficiency and significant contributions to increasing revenue and reducing expenditures will receive more. BQLDA establishes internal expenditure regulations for additional income based on workload, assigned tasks, completion levels, ensuring attraction of highly qualified labor, and reasonable correlation with the salaries of cadres, civil servants, and public officials within the same unit. The additional income coefficient for leadership positions shall not exceed twice the average additional income coefficient of workers in the unit, also following the principle of linking to quantity, quality, and effectiveness of work. The Director of BQLDA pays income according to the unit's internal expenditure regulations.

When the State adjusts wage regulations, increases the basic wage level; the additional wage rank, position amount according to the State's system is self-funded by BQLDA from the unit's financial resources.

Article 19. Utilization of Financial Activity Results in the Year

Annually, after covering all expenses, paying taxes, and other required payments, if there is a surplus of revenue over regular expenditures, BQLDA may utilize it in the following sequence:

1. Establishing a Development Fund for Public Services with a minimum of 25%.

2. Establishing an Income Supplement Fund, not exceeding three times the salary grade, rank, position fund and allowances for cadres, civil servants, and public officials as prescribed by the State.

3. Reward Fund, Welfare Fund. The contribution rate for these two funds shall not exceed three months' average wages and remuneration for the year.

4. Any remaining surplus after establishing the aforementioned funds shall be added to the Development Fund for Public Services.

Article 20. Utilization of Funds According to Internal Expenditure Regulations

1. Development Fund for Public Services: For investment in building physical infrastructure, purchasing equipment and working tools; developing project management capabilities; applying scientific and technological progress; training and enhancing professional skills for workers in the unit.

2. Income Supplement Fund for use in the following cases:

a) Advance payment for regular expenses at the beginning of the year when there is no allocated capital plan, no revenue source, or approved budget. Once the capital plan is allocated, the budget is approved, or revenue sources are available, repayment must be made to the Income Supplement Fund.

b) Supplementing income for workers during the year and preparing for potential income supplements for workers next year in case of reduced income sources.

3. Reward Fund is used for periodic and extraordinary rewards for individuals and groups inside and outside the unit (outside the reward system stipulated by the Law on Encouragement and Rewards) based on work performance and contributions to the unit's activities. The reward amount is decided by the BQLDA Director according to the unit's internal expenditure regulations.

4. Welfare Fund is used for constructing and repairing welfare facilities, funding collective welfare activities for workers in BQLDA; providing emergency assistance to workers, including those retiring or losing capacity; additional payments for workers implementing staff reduction. The BQLDA Director decides on the use of the fund according to the unit's internal expenditure regulations.

5. Specific contribution rates for the Funds as stipulated in Article 19 and the utilization of these Funds are decided by the unit's Director according to the internal expenditure regulations and must be publicly disclosed within the unit.

Article 21. Provisions on the establishment and implementation of revenue and expenditure budgets for project management

1. Establishment of revenue and expenditure budget for Project Management Board (BQLDA):

Annually, based on the functions and tasks assigned by the competent authority, the tasks of the planned year, the current financial expenditure system; based on the results of service activities, the financial revenue and expenditure situation of the immediately preceding year; the BQLDA establishes the revenue and expenditure budget for the planned year according to Forms: 01(i)/DT-QLDA, 02/DT-QLDA, 03/DT-QLDA, 05/DT-QLDA and sends it to the direct superior supervisory agency (the agency deciding to establish or the agency authorized by the agency deciding to establish) for approval.

The agency approving the revenue and expenditure budget assigns a functional unit to organize a review before approval. The review file, review content, review period, and approval of the revenue and expenditure budget shall be carried out in accordance with the provisions of Article 12 of this Circular; the decision approving the project management revenue and expenditure budget for the year shall be made according to Form 02/QĐ-QLDA.

2. Implementation of the revenue and expenditure budget:

a) For regular activity expenses, during the implementation process, the BQLDA may adjust the expenditure items and expenditure groups within the approved expenditure budget to suit the actual situation of the unit, while sending the adjustment to the direct superior supervisory agency and the payment agency where the unit has an account opened for monitoring, managing, paying, and settling accounts. Unspent or under-spent amounts from the budget can be transferred to the next year for continued spending.

b) For non-regular activity expenses: when adjusting expenditure groups, tasks, and unused funds at the end of the year, they shall be implemented in accordance with the provisions of the State Budget Law and current guiding documents.

Article 22. Settlement of revenue and expenditure for project management

1. At the end of the planned year, within 90 days from the end date of the annual accounting period as prescribed by law, the BQLDA prepares the financial report in accordance with the accounting system applicable to the project owner, and simultaneously prepares the annual revenue and expenditure settlement report to submit to the competent authority for approval in accordance with Clause 1 of Article 21 to serve as the basis for establishing the next year's budget.

The annual revenue and expenditure settlement file includes:

a) A request for approval of the settlement;

b) Annual revenue and expenditure settlement report according to Form 02/QT-QLDA;

c) Expenditure vouchers generated during the year.

2. Review of annual revenue and expenditure settlement:

a) The competent authority approving the revenue and expenditure settlement assigns a functional unit to organize a review before approval.

b) Review content:

Review the allocation of project management costs and investment consulting construction costs over the years and the planned year.

Compare the data in the annual project management revenue and expenditure settlement report according to Form 02/QT-QLDA with the approved or adjusted budget for the year if applicable.

Review the legality and validity of expenditure vouchers in accordance with current state regulations.

3. The review and approval period for the annual revenue and expenditure settlement shall be within 14 working days after receiving all files. The decision approving the annual revenue and expenditure settlement shall be made according to Form 02.QĐ/QT-QLDA attached.

4. Annually, the BQLDA implements the allocation of management costs to projects under its management according to the principle:

a) Directly allocate costs for consulting work, receipt and storage of materials and equipment, and other direct project costs to the respective projects;

b) Common management costs shall be allocated proportionally based on the total investment amounts of the projects.

5. When each managed project is completed and handed over for use, the project management costs, investment consulting construction costs, etc., included in the total investment of each project shall be settled according to the established rate (percentage) or the budget approved by the competent authority within the total project investment.

Chapter III

IMPLEMENTATION

Article 23. Responsibilities of Related Units

1. Responsibilities of the Project Owner and Group I Project Management Boards (PMBs):

a) Shall be fully responsible for the management and use of project management costs.

b) Shall carry out the preparation of cost estimates, review, approval (for the Project Owner) or submit to the competent authority (for PMBs managing one project) for approval of the cost estimate for project management expenses; prepare the final account report on project management expenses, obtain confirmation from the settlement agency to submit to the competent authority for approval within the time and content stipulated in this Circular.

2. Responsibilities of the Director of Group II PMBs:

a) Shall be fully responsible for the management and use of project management costs.

b) Shall carry out the preparation of cost estimates, final account reports on income and expenditure for project management, submitting to the competent authority for approval within the time and content stipulated in this Circular.

c) Shall be accountable to the immediate superior supervisory agency and be legally accountable for their decisions in implementing financial autonomy of the unit.

d) Shall develop a plan to implement the self-management and self-responsibility system as prescribed and submit it to the superior agency.

đ) Shall develop and organize the implementation of internal expenditure regulations according to the provisions for public service units that self-finance regular expenses as stipulated in Decree No. 16/2015/NĐ-CP.

e) Shall organize the accounting, statistical work, and asset management in accordance with the relevant laws, reflecting all income and expenditure of the unit in the accounting books in a full and timely manner. Shall comply with the current regulations on information and reporting activities of the unit.

g) Shall implement the grassroots democracy regulations and financial transparency regulations according to the current regulations.

3. Responsibilities of the Settlement Agency

a) Shall be responsible for controlling and settling revenues from project management activities of the Project Owners and PMBs using state budget funds in accordance with the regulations on capital settlement, in compliance with the current state financial management regime and specific provisions in this Circular.

b) Shall be responsible for reconciling and confirming the settled funds in the year, surplus funds according to the budget at Form No. 01/QT-QLDA, Form No. 02/QT-QLDA in the final account report on income and expenditure for project management of the Project Owners and PMBs.

4. Responsibilities of Ministries, Sectors, and Localities

a) Shall approve or authorize approval of cost estimates and final accounts on income and expenditure for project management of specialized PMBs and regional PMBs established by themselves.

b) Shall decide on the financial autonomy plans for specialized PMBs and regional PMBs established by themselves.

c) Shall regularly inspect the management and use of revenues from project management activities of the Project Owners and PMBs using state budget funds under their jurisdiction; shall take measures to handle violations in the management and use of revenues from project management activities of the Project Owners and PMBs using state budget funds in accordance with the law.

Article 24. Transitional Provisions

1. For project management costs of the Project Owner and PMBs not yet settled in previous years due to the implementation of the following Circulars: Circular No. 10/2011/TT-BTC dated January 26, 2011 of the Ministry of Finance on the management and use of project management costs for projects funded by the state budget, Circular No. 17/2013/TT-BTC dated February 19, 2013 of the Ministry of Finance amending Clause 1, Article 6 of Circular No. 10/2011/TT-BTC dated January 26, 2011 of the Ministry of Finance on the management and use of project management costs for projects funded by the state budget, and Circular No. 05/2014/TT-BTC dated January 6, 2014 of the Ministry of Finance replacing the aforementioned Circulars, there is no need to settle again according to the provisions of this Circular.

2. For projects that have submitted final account reports on completed projects to the approving agency before this Circular takes effect, the preparation of final account reports on income and expenditure for project management shall be carried out according to the provisions of Circular No. 05/2014/TT-BTC and there is no need to re-determine project management costs based on the allocated value in this Circular.

Article 25. Implementation Provisions

1. This Circular shall take effect from September 15, 2017 and replace Circular No. 05/2014/TT-BTC dated January 6, 2014 of the Ministry of Finance on the management and use of project management costs for projects funded by the state budget.

2. During its implementation, if the regulatory documents cited for application in this Circular are amended, supplemented, or replaced by new documents, then the new documents shall apply.

3. During the implementation process, in case of difficulties, units are requested to promptly reflect them to the Ministry of Finance for research and guidance or amendment and supplementation as appropriate./.