Circular No. 76-TC/DTPT guides the management and allocation of capital for basic construction investment under the county and commune budgets.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 76-TC/ĐTPT DATED NOVEMBER 1, 1997 GUIDING THE MANAGEMENT AND ISSUANCE OF CAPITAL FOR INVESTMENT AND CONSTRUCTION FROM THE STATE BUDGET AT THE COUNTY AND COMMUNE LEVELS

Pursuant to the State Budget Law issued on March 20, 1996;
Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the division of management, preparation, implementation, and settlement of the state budget;
Pursuant to Decree No. 42/CP dated July 16, 1996 of the Government on the issuance of the Regulation on Investment Management and Construction, and Decree No. 92/CP dated August 23, 1997 of the Government amending and supplementing certain articles of the Regulation on Investment Management and Construction issued together with Decree No. 42/CP dated July 16, 1996;
The Ministry of Finance issues guidelines for managing and allocating investment capital for basic construction from the county and commune budgets as follows:

Part 1:

GENERAL PROVISIONS

1. The management and issuance of capital for investment and construction from the county and commune budgets (hereinafter referred to as the county and commune budgets) shall be carried out in accordance with the current regulations of the State stipulated in the Regulation on Investment Management and Construction issued together with Decree No. 42/CP dated July 16, 1996 of the Government, Circular No. 63 TC/ĐTPT dated November 2, 1996 of the Ministry of Finance guiding the management and issuance of capital for investment and construction from state budget sources, and other related circulars guiding the management and issuance of capital for investment and construction issued by the State, and the provisions of this circular.

2. The source of capital for investment and construction from the county and commune budgets (including mobilized and contributed funds from organizations and individuals) under the budgetary management hierarchy of the provincial People's Committee shall be managed and issued by the County Finance Department and Commune Finance Board, and settled by the State Treasury at the county level according to the current regulations.

3. The People's Committee of the county and commune and the investors of projects funded by the county and commune budgets have the responsibility to implement the State's regulations on investment and construction; to use investment capital for its intended purpose, economically, and effectively; to comply with the State's financial management policies and regulations on the management and issuance of capital for investment and construction as stipulated in this circular.

Part II:

SPECIFIC PROVISIONS

I. DETERMINATION OF INVESTMENT POLICY AND PLANNING OF INVESTMENT CAPITAL

1. Based on the local socio-economic planning and development plan, the finance departments of the county and commune have the responsibility to advise the People's Committee of the county and commune on investment development policies during each period and each year; to participate in reviewing investment projects according to the investment and construction management hierarchy of the Chairman of the Provincial People's Committee to jointly submit to the competent authority for investment decision-making; to compile investment expenditures in the county and commune budget estimates according to the national budget estimate system. 2. After receiving the budget estimate from the provincial People's Committee, the County Finance Department is responsible for allocating quarterly expenditure levels for each project and notifying the investor and the State Treasury to issue capital promptly.

3. Establishing and announcing quarterly capital plans:

- Investors of projects funded by the county budget prepare quarterly capital allocation plans and send them to the County Finance Department. Based on the annual capital plan and budget capacity, the County Finance Department allocates quarterly expenditure levels for each project, notifies the investor, and sends the information to the State Treasury at the county level.

- For projects funded by the commune budget:

+ In cases where supplementary capital comes from the county budget, the Commune Finance Board assists the Commune People's Committee in compiling quarterly capital plans and sending them to the County Finance Department. Based on the quarterly expenditure notification from the County Finance Department, the Commune Finance Board allocates quarterly expenditure levels for each project, notifies the State Treasury at the county level for payment purposes.

+ In cases where capital is directly collected by the commune budget (including labor days and materials contributed converted into money), based on the annual capital plan and collection capacity, the Commune Finance Board arranges quarterly expenditure levels for each project, notifies the State Treasury at the county level for payment purposes.

II. ENSURING CAPITAL SOURCES AND ALLOCATING CAPITAL

1. OPENING ACCOUNTS:

All project investors under the county and commune budgets must open accounts at the State Treasury at the county level to receive allocated capital.

The opening, management, and use of accounts by investors at the State Treasury at the county level shall be carried out in accordance with the regulations of the Ministry of Finance and the Central State Treasury.

2. Ensuring capital sources:

2.1. For projects under the county budget, the County Finance Department ensures sufficient capital based on the quarterly balanced county budget expenditure levels to allocate to the projects.

2.2. For projects under the commune budget:

- In cases where expenditures are made using supplementary capital from the county budget for the commune budget, the County Finance Department ensures sufficient capital according to the quarterly balanced expenditure levels for the commune budget within the county budget.

- In cases where expenditures are made using direct revenue at the commune level, the Commune Finance Board ensures sufficient capital according to the expenditure notification.

3. Allocating capital:

3.1. For projects managed by the county:

When there is a need for advance capital or payment for completed construction work, the investor submits a request for capital issuance to the County Finance Department.

- The County Finance Department checks the value of completed work volume and the payment invoice of the projects, approves the issuance and requests the State Treasury at the county level to make payments.

3.2. For projects managed by the commune:

When a project requires advance capital or payment for completed construction work, the Commune Finance Board checks the value of completed work volume and the payment invoice, based on the available limit at the State Treasury at the county level (including supplementary capital from the county budget and direct commune budget revenue), approves the issuance and requests the State Treasury at the county level to make payments.

The principles, conditions, bases, and methods of issuance are in accordance with the provisions of Circular No. 63 TC/ĐTPT dated November 2, 1996 of the Ministry of Finance guiding the management and issuance of capital for investment and construction from state budget sources.

3.3. Based on the approval of the County Finance Department, the Commune Finance Board, and the relevant settlement documents, the State Treasury at the county level will settle payments through bank transfers or cash to the investor or, upon the investor's request, to the contractor. The State Treasury at the county level records expenditures from the county and commune budgets according to their respective sources.

III. YEAR-END SETTLEMENT AND PROJECT COMPLETION SETTLEMENT

1. At the end of the planning year, the investor is responsible for reporting the actual investment capital usage for the year; when a project (construction works or parts thereof) is completed, the investor is responsible for preparing a final settlement report on the investment capital for the completed project and submitting it to the County Finance Department (for projects managed by the county) or the Commune Finance Board (for projects managed by the commune), the auditing body, and the person authorized to approve the settlement according to the decision of the provincial People's Committee.

The contents, requirements, timeframes, and forms for the annual accounting report and the final settlement report on investment capital for completed projects are stipulated in Circular No. 66 TC/ĐTPT dated November 2, 1996 of the Ministry of Finance guiding the final settlement of investment capital.

2. The County Finance Department and the Commune Finance Board cooperate with the State Treasury at the county level to confirm the actual capital issued and paid for the project annually and cumulatively from the first issuance to the last; to close the relevant accounts when the project has received approval for the final settlement.

3. The Investment Development Agency shall be responsible for reviewing the final settlement reports of projects decided to be invested by the Provincial People's Committee, the County Finance Department shall be responsible for reviewing the final settlement reports of projects decided to be invested by the County People's Committee, and the Commune Financial Board shall be responsible for reviewing the final settlement reports of projects decided to be invested by the Commune People's Committee, to submit to the competent authority for approval according to regulations.

4. Annually, the Finance Offices at the district and commune levels shall settle accounts regarding the state budget capital allocated for construction investment according to the provisions of the State Budget Law.

IV. INFORMATION REPORTING AND INSPECTION REGIME

1. Monthly, quarterly, and annually, the State Treasury at the district level shall report to the District Finance Office and the Commune Finance Board on the amount of state budget and other sources of capital disbursed and paid out for each project.

2. The Commune Finance Board shall report to the District Finance Office, which in turn shall report to the District People's Committee, the Department of Finance, and the Investment Development Bureau periodically and on the following indicators:

- On the 5th day of each month, report on the implementation of construction investment capital in that month (according to form number 01/BC-XDCB).

- On the 10th day of the first month of each quarter, report on the implementation of construction investment capital in that quarter (according to form number 02/BC-XDCB).

- On January 20th, report on the implementation of construction investment capital in that year (according to form number 03/BC-XDCB). This report shall be sent concurrently to the Provincial People's Committee and the Central City People's Committee.

3. People's Committees at all levels shall report regularly monthly, quarterly, and annually according to the provisions of the Investment Management Regulations and Construction and Circular No. 63 TC/ĐTPT dated November 2, 1996, issued by the Ministry of Finance.

4. Regularly and urgently, the Department of Finance and the Investment Development Bureau shall inspect the County Finance Department and the Commune Financial Board regarding the verification of project volume and payment vouchers; issuance of construction investment capital and other issues related to the issuance of construction investment capital to promptly address errors and assist the County and Commune Finance Departments in fulfilling their assigned tasks.

V. RESPONSIBILITIES OF RELATED AUTHORITIES

1. People's Committees at all levels:

- Implement investment and construction management according to the functions assigned by the Government.

- Direct the management and issuance of construction investment capital for projects under the county and commune budgets according to current regulations and this Circular.

2. Investor:

- Carry out construction investment projects according to the prescribed construction procedures and assigned tasks, ensuring compliance with specified deadlines, quality standards, and cost-effectiveness.

- Provide documentation and information on the implementation of construction investment plans to the County and Commune Finance Departments and other relevant agencies.

- Receive and utilize construction investment capital for its intended purpose, for the designated recipients, economically, effectively, and in accordance with the current management system for construction investment capital.

- Report regularly and settle construction investment capital according to the provisions of this Circular.

3. Local financial agencies at various levels:

- The Department of Finance shall be responsible for guiding counties in preparing annual and quarterly state budget estimates according to the State Budget Law; directing and guiding the County Finance Departments and Commune Financial Boards to manage and issue construction investment capital according to the current system.

- The County and Commune Finance Departments shall ensure sufficient sources of capital allocated for construction investment to issue capital to projects according to the annual plan and quarterly expenditure levels announced, organizing the issuance of capital to projects according to the prescribed system.

- Local financial authorities at all levels shall be responsible to the Ministry of Finance and the People's Committees at all levels for the issuance of construction investment capital and the implementation of the reporting system according to the forms prescribed in this Circular.

- Settle development investment capital according to the provisions of the State Budget Law.

4. The State Treasury at the district level:

- Organize the payment of construction investment capital according to the requirements of the County Finance Department and the Commune Financial Board.

- Organize accounting work for construction investment implemented for each project.

- Confirm the amount of capital paid out for each project when settling accounts and reporting regularly according to the provisions of this Circular.

5. The Investment Development Bureau:

- Be responsible to the Ministry of Finance, the Provincial People's Committee, and the General Department of Investment Development for state management of development investment capital in the locality, guiding the County and Commune Finance Departments to manage and issue construction investment capital according to this Circular and the current system.

- Guide, assist, and inspect the County and Commune Finance Departments on policies, systems, and specific issues in managing and issuing construction investment capital.

- Summarize the implementation of construction investment plans in the area and report to the Provincial People's Committee and the General Department of Investment Development according to regulations.

Part 3:

IMPLEMENTING PROVISIONS

1. This Circular shall take effect from the date of signature.

2. During the implementation process, if there are difficulties, localities and units need to promptly reflect them to the Ministry of Finance for research and supplementation.

FORM 01/BC-XDCB

REPORT

SITUATION OF IMPLEMENTATION OF CONSTRUCTION INVESTMENT CAPITAL IN MONTH...YEAR...