Circular No. 85/2014/TT-BTC guiding the management, payment, and settlement of state budget capital for forest protection and development plans.

CIRCULAR

Guidelines for managing, settling accounts, and finalizing state budget capital investment in construction projects to implement the Forest Protection and Development Plan

 from the state budget

________________________

 

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;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

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

Pursuant to Government Decrees No. 12/2009/NĐ-CP dated February 12, 2009 on project management for construction investment; Decree No. 83/2009/NĐ-CP dated October 15, 2009 amending and supplementing certain provisions of Government Decree No. 12/2009/NĐ-CP on project management for construction investment;

The Minister of Transport hereby promulgates this Circular stipulating the procedures and formalities for dredging and maintaining the maritime channels of Hai Phong and Saigon-Vung Tau managed by the Ministry of Transport, using state budget funds, piloted under the open bidding mechanism with lump-sum contracts ensuring the design standards of the channel routes from 2015 to 2016 based on the dredging and maintenance plans for maritime channels and lump-sum contracts without adjusting the implementation costs.

Pursuant to Government Decree No. 85/2009/NĐ-CP dated October 15, 2009 guiding the implementation of the Bidding Law and the selection of contractors under the Construction Law;

Pursuant to Government Decrees No. 48/2010/NĐ-CP dated May 7, 2010 on contracts in construction activities; Decree No. 207/2013/NĐ-CP dated December 11, 2013 amending and supplementing certain provisions of Government Decree No. 48/2010/NĐ-CP on contracts in construction activities;

Pursuant to Government Decree No. 117/2010/NĐ-CP dated December 24, 2010 organizing and managing special-use forests;

Pursuant to Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the program to reduce poverty quickly and sustainably in 62 poor districts;

Pursuant to Prime Minister's Decisions No. 57/2012/QĐ-TTg dated January 9, 2012 approving the Forest Protection and Development Plan for the period 2011-2020; Decision No. 24/2012/QĐ-TTg dated June 1, 2012 on policies for developing special-use forests for the period 2011-2020; Decision No. 147/2007/QĐ-TTg dated September 10, 2007 on some policies for developing production forests for the period 2007-2015; Decision No. 66/2011/QĐ-TTg dated December 9, 2011 amending some provisions of Decision No. 147/2007/QĐ-TTg dated September 10, 2007; Decision No. 73/2010/QĐ-TTg dated November 16, 2010 promulgating the Project Management Regulations for Forestry Construction Projects; Decision No. 07/2012/QĐ-TTg dated February 8, 2012 on some policies to strengthen forest protection work;

At the proposal of the Director of the Investment Department;

The Minister of Finance issues this Circular guiding the management, settlement, and finalization of state budget capital investment in construction projects to implement the Forest Protection and Development Plan:

Chapter I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. Scope of application: This Circular stipulates the management, settlement, and finalization of state budget capital investment for implementing the Forest Protection and Development Plan.

a) For state budget capital allocated to implement projects according to the Decisions of

b) For forest protection and development projects within the Forest Protection and Development Plan funded from sources such as state investment credit funds, state-guaranteed credit funds, state-owned enterprise development funds, and other state-managed funds, these projects shall be implemented in accordance with the provisions of this Circular. In cases where there are different regulations for each source of funding, those specific regulations shall apply;

c) For forest protection and development projects utilizing official development assistance (ODA) funds, if international agreements signed by competent authorities of the Socialist Republic of Vietnam contain provisions on the management, settlement, and finalization of capital that differ from the provisions of this Circular, then the provisions of the international agreement shall apply;

d) For forest protection and development projects using other sources of funding (other than those mentioned in points a, b, and c above), the State encourages the management, settlement, and finalization of capital in accordance with the provisions of this Circular.

2. Scope of application.

Relevant agencies, organizations, households, individuals, and community residents involved in the management, settlement, and finalization of state budget capital investment for forest protection and development projects.

Article 2. The investment capital from the State Budget for implementing the Forest Protection and Development Plan includes:

1. Domestic capital at all levels of the State Budget;

2. Foreign loans and foreign aid to the Government, local authorities, and state agencies (the State Budget portion).

Article 3. Agencies responsible for supervising and settling investment capital from the State Budget

1. The State Treasury is assigned the task of supervising and settling investment capital sourced from the State Budget;

2. Other agencies and units are assigned the task of supervising and settling investment capital from the State Budget for certain special projects according to decisions of

3. Commercial banks are financial institutions serving projects using Official Development Assistance (ODA) funds.

Chapter II

SPECIFIC PROVISIONS

Article 4. Allocation, review of allocation, and adjustment of investment capital plans

To serve management and supervision of settlement, Ministries, sectors, and localities allocate investment development capital to each project, ensuring the following conditions and principles:

a) For projects assigned by the Prime Minister and announced by the Ministry of Planning and Investment regarding the annual investment capital from the central budget (including targeted support funds for localities) and government bonds, it must ensure all required procedures for project investment according to current regulations; new construction projects and projects adjusting total investment amounts must undergo a thorough review of funding sources in accordance with current regulations.

a) For investment capital from the central government budget supporting forest protection and development projects, it must ensure all required procedures for project investment as stipulated; new construction projects and projects adjusting total investment under local management with a total investment of 15 billion dong or more must be reviewed by the Ministry of Planning and Investment and the Ministry of Finance regarding the source of capital, while projects with a total investment below 15 billion dong are reviewed by provincial-level localities according to current regulations;

b) For investment capital from local budgets to implement the forest protection and development plan, it shall be carried out according to general policies and current regulations, localities must review the source of capital before approving the project according to current regulations.

2. Regarding project codes and capital plans:

Ministries, central sectors, and People's Committees at all levels allocate investment development capital to each project based on investment project codes and economic sectors (type, category) according to Appendix No. 02 issued by Decision No. 33/2008/QD-BTC dated June 2, 2008 of the Minister of Finance on the National Budget Classification System and subsequent amendments and supplements (if any).

a) For projects managed by Ministries and central sectors:

Based on medium-term investment capital plans (if available) and annual investment capital plans allocated, Ministries and sectors allocate annual capital plan indicators to eligible investors within their management scope, ensuring compliance with the allocated capital amount; domestic and foreign capital structure; economic sector structure; simultaneously sending these plans to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the State Treasury within the specified time for monitoring and management;

The Central State Treasury receives detailed investment capital plans of Ministries and sectors allocated to each project, implements the transfer of project capital plans (with details according to chapter codes, investment project codes, and economic sector codes (type, category) of Ministries and sectors) to the State Treasury at the local level as a basis for supervising and settling capital;

For ODA capital, Ministries and central sectors send detailed investment capital plans allocated to each project to commercial banks where the investor has opened an account to facilitate transactions with the capital source.

b) For investment capital managed by localities:

Based on medium-term plans (if available) and annual plans allocated, People's Committees at all levels develop capital allocation schemes to be submitted to the People's Councils at the same level for decision-making. According to the resolutions of the People's Councils, the People's Committees allocate and decide to assign investment capital plans to eligible investors within their management scope, ensuring compliance with the allocated total investment amount; domestic and foreign capital structure; economic sector structure; simultaneously sending these plans to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, the Ministry of Finance, the Department of Finance, and the State Treasury within the specified time for monitoring and management and as a basis for supervising and settling capital;

County People's Committees send investment capital plans to the Department of Finance, simultaneously sending them to the Financial and Planning Departments and the State Treasury (county level) for monitoring and as a basis for supervising and settling capital. For counties, districts, towns, and villages without People's Councils, they follow Circular No. 63/2009/TT-BTC dated March 27, 2009 of the Ministry of Finance on the establishment of budgets, implementation of budgets, and finalization of budgets in counties, districts, and towns without People's Councils.

3. Content and time for allocating investment capital plans: immediately after receiving annual national budget investment development plans decided (or announced) by the Prime Minister and the Ministry of Planning and Investment, Ministries, sectors, and localities promptly allocate capital plans to each project according to Model No. 01/PBKH issued together with this Circular; the time for allocating capital plans must comply with the regulations of the Prime Minister and the Minister of Planning and Investment.

4. Review of capital allocation.

a) For projects managed by central Ministries and sectors:

The Ministry of Finance provides comments on the review of capital allocation sent to Ministries and sectors within five working days after receiving their capital allocation plans. In cases where capital allocation does not comply with regulations, the Ministry of Finance will provide comments to stop the State Treasury from settling payments; if payments have already been made, they will be recovered. Ministries and sectors are responsible for directing investors whose capital allocations do not comply with regulations to return the settled capital to the state budget and bear responsibility for consequences caused by non-compliant allocations.

- Based on the medium-term plan (if applicable) and the assigned annual plan, People's Committees at all levels develop capital allocation schemes to submit to the People's Councils at the same level for decision. According to the resolution of the People's Council, the People's Committee allocates and decides to assign investment capital plans to eligible investors within their management scope, ensuring compliance with the assigned total investment amount, domestic and foreign capital structure, economic sector structure, total capital of each program, project list, and project capital amount; adhering to regulations on investment targets and purposes of each source of investment capital (within the authority to allocate capital of the locality); simultaneously sending the Ministry of Planning and Investment, the Ministry of Finance, the Department of Finance, and the State Treasury within the specified time for monitoring and management and as a basis for controlling and paying capital;

- At the provincial level, during the process of participating with related units in annual investment capital plans (including central government budget capital and local budget capital), the Department of Finance concurrently performs the task of reviewing capital allocation plans before relevant agencies submit them to the Provincial People's Committee for decision-making. Based on the Provincial People's Committee's decision on investment capital plans, the State Treasury implements supervision and settlement according to regulations. If a project lacks investment procedures, the State Treasury stops settlement and informs the Department of Finance to report to the Provincial People's Committee for handling.

- For the district level management (referred to as the district level), the Department of Finance and Planning shall perform the task of reviewing the allocation of investment capital plans immediately before submitting them to the People's Committee at the district level for decision. Based on the decision on the investment capital plan issued by the People's Committee at the district level, the State Treasury at the district level shall implement payment control according to regulations. In case a project is found to be lacking in investment procedures, the State Treasury at the district level shall suspend payments and notify the Department of Finance and Planning and the People's Committee at the district level for handling.

5. Documents to serve the review of the allocation of investment capital plans at the local level include.

a) For preparatory investment projects:

- The decision of the competent authority allowing the preparation for investment to be carried out;

- Document approving the preliminary cost estimate for investment preparation work.

b) For implementation investment projects:

- Document assessing the source of capital according to regulations for new construction projects and projects adjusting the total investment ceiling;

- The decision on the investment project of the competent authority (or the economic-technical report for projects only preparing such reports), and any decisions adjusting the project (if any).

6. Adjustment of investment capital plans.

a) Principles:

- Regularly, central ministries and agencies and localities shall review the progress and investment targets of projects in the year to adjust the investment capital plan within their authority or submit to the Prime Minister for adjustment of the investment capital plan, transferring capital from projects that are unable to proceed to those with sufficient conditions for implementation;

- Before sending the adjusted investment capital plan for each project within their authority or submitting to the Prime Minister, central ministries and agencies and localities shall instruct the Project Owner to stop payments at the time of planned adjustment and work with the State Treasury to confirm the amount of capital under the annual plan already paid to the project, determine the surplus capital due to non-implementation, ensuring that the project plan after adjustment is not lower than the amount of capital paid by the State Treasury according to Model Form No. 02/XNVTT issued together with this Circular. Central ministries and agencies and localities are responsible for disbursement figures and adjusted capital plan figures. The deadline for submitting the adjusted investment capital plan is no later than May 15 of the following year.

b) Central ministries and agencies and localities shall implement adjustments to the investment capital plan, send it to the same-level financial agency and the State Treasury as the basis for payment. The deadline for annually adjusting the investment capital plan for each project is no later than May 31 of the following year. The review of the adjustment of the allocation of investment capital shall be implemented as stipulated in Clause 4 of this Article;

Adjusted capital plans for projects must fall within the scope of the total annual capital plan allocated and must fall within the scope of the medium-term plan (if any). The total amount of adjusted capital may not exceed the plan assigned by the Prime Minister for central budget funds and may not exceed the plan assigned by the Chairman of the Provincial People's Committee or District People's Committee for local budget funds according to Model No. 03/ĐCKH promulgated together with this Circular.

Article 5. Advance Payment, Payment and Recovery of Advance Capital

1. Opening an account.

The Project Owner or the Project Management Board (hereinafter referred to collectively as the Project Owner) may open an account at the State Treasury where it is convenient for the Project Owner's transactions and convenient for the State Treasury's payment control and shall comply with the regulations of the Ministry of Finance on the system of opening and using accounts at the State Treasury. The State Treasury has the responsibility to guide the Project Owner in opening an account to facilitate payment of capital. For Official Development Assistance (ODA) and preferential foreign loans, the account opening shall be carried out in accordance with Circular No. 218/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on financial management for programs and projects using ODA and preferential foreign loan funds from sponsors and any amendments or supplements (if any).

2. Documentation for payment.

To serve the management and control of investment capital payments, the Project Owner shall submit project documentation to the State Treasury where the payment account is opened; these documents must be original or certified true copies, and shall only be submitted once until the end of the infrastructure investment project serving the forestry operation project and until the end of the support from the state budget for the forestry operation project (except in cases requiring supplementation or adjustment), including:

a) For investment preparation work:

- Approved budget estimate for investment preparation work;

- The document approving the results of the tender selection according to the Bidding Law;

- The approval document of the Project Owner (for forestry operation projects);

- The contract between the Project Owner and the contractor.

- In the case where the Project Owner carries out the work themselves: the documentation includes (the approved estimate of costs for investment preparation work, the assignment document or internal contract);

b) For implementation of investment work:

- For domestic-funded projects:

+ Investment construction project (or economic-technical report for projects only preparing such reports) accompanied by the investment decision of the competent authority, and any project adjustment decisions (if any);

+ The document approving the results of the tender selection according to the Bidding Law (for infrastructure technical facilities investment projects serving forest protection and development);

+ The approval document of the Project Owner (for forestry operation projects);

+ The construction contract between the Project Owner and the contractor (including all documents attached to the contract as required, except technical documents); for forestry operations, it is the forestry contract between the Project Owner and contractors or teams, households, individuals, community groups participating in implementing the project;

+ The estimate and the decision approving the estimate by the Project Owner for each work item, sub-project, project in the case of designated bidding or self-execution and works carried out without contracts;

+ The document reviewing the source of capital according to regulations (applicable to projects managed by localities);

- For ODA projects: in addition to the documents specified in Point b, Clause 2 of this Article, there must also be:

The Vietnamese translation ensuring legal validity with the signature and seal of the project sponsor: International agreements on ODA signed between Vietnam and the donor, and other payment-related documents (if any). Specifically, the contract between the project sponsor and the contractor must be in Vietnamese or a Vietnamese translation with the signature and seal of the project sponsor (the section stipulating payment conditions, terms, and contents directly related to payment). The project sponsor is responsible under the law for the accuracy and correctness of the content of the Vietnamese translation.

c) For cases where the Investor implements the work themselves:

- Investment project construction works (or economic-technical report for projects only preparing such reports) and investment decision of the competent authority, project adjustment decisions (if any).

- Budget estimate and the sponsor's approval decision for each work item, sub-project, project (except for projects only preparing economic-technical reports).

- Document from the competent authority allowing self-execution of the project (in cases not included in the investment decision of the competent authority);

- Assignment document or internal contract.

3. Advance payment of capital.

a) Application file for advance funding: based on the documents and materials specified in Clause 2 of this Article and the advance funding amount prescribed in Point b, Clause 3 of this Article; the project sponsor shall prepare the application file for advance funding to send to the State Treasury including:

- Payment request for investment capital or advance investment capital according toModel No. 04/GĐNTTVĐT issued together with this Circular;

- Bank transfer voucher (according to the accounting voucher system of the Ministry of Finance);

- Guarantee for the advance payment amount of the contractor shall be implemented as follows and any amended or supplemented documents (if any):

+ For contracts signed from the date of Decree No. 207/2013/ND-CP dated December 11, 2013 of the Government amending and supplementing certain articles of Decree No. 48/2010/ND-CP dated May 7, 2010 of the Government on contracts in construction activities taking effect (February 1, 2014) shall be implemented according to Decree No. 207/2013/ND-CP dated December 11, 2013 of the Government;

+ For contracts signed and being implemented before the effective date of Decree No. 207/2013/ND-CP dated December 11, 2013 of the Government (February 1, 2014), it is not necessary to implement according to this provision.

b) The level of advance funding shall be implemented as follows and any amended or supplemented documents (if any):

The total level of advance funding for contracts implemented in a year shall not exceed 30% of the annual capital plan allocated to the project; In cases where the project is allocated a capital plan but the advance funding amount is insufficient according to the contract, after settling the completed volume and recovering the entire or part of the previously advanced capital, upon the sponsor's request, the State Treasury may provide additional advance funding for the project (total advanced capital does not exceed the contract provisions), the maximum residual advance funding balance not recovered is 30% of the annual capital plan allocated to the project.

In cases where advance funding is provided for land compensation and clearance work, the advance funding amount shall be in accordance with the progress implementation within the land clearance plan but shall not exceed the annual capital plan allocated to the tender package or project.

c) Advance funding shall be provided after the contracts for forest protection and development projects become effective; based on the sponsor's advance funding request, referring to the annual capital plan assigned, the State Treasury shall control and transfer advance funding according to the sponsor's request, in accordance with the economic contract signed between the sponsor and the contractor without exceeding the advance funding level prescribed in Point b, Clause 3 of this Article.

d) Settlement and recovery of advance capital payment:

- Advance funding shall be settled through each payment of completed volume of the contract, starting from the first payment and fully recovered when the completed volume reaches 80% of the contract value. The amount of each payment shall be agreed by the sponsor and the contractor and specifically stipulated in the contract;

- For compensation and support work when the State recovers land:

+ For compensation and support work: after disbursing to the beneficiaries, the sponsor shall collect supporting documents, process payment and recover the advance funding within the latest period of 30 working days from the date of disbursement to the beneficiaries;

+ For other works: the advance payment capital is recovered in each payment period based on completed volume and is fully recovered upon completion of the compensation and support work.

d) The sponsor has the responsibility to calculate a reasonable advance funding level to request capital advances together with organizations, contractors, individuals, community, and households participating in the forest development investment project, but not exceeding the level prescribed in Point b, Clause 3 of this Article; at the same time, strictly manage and use the advance funding for the intended purpose, for the correct target, effectively, and ensure full repayment of the advance funding amount and recovery of all advanced capital when the completed volume reaches 80% of the contract value;

- In cases where the advance funding has not been recovered but not used, if beyond the 6-month period stipulated in the contract due to objective or subjective reasons that the contractor has not implemented the work volume or after receiving the advance funding, the contractor uses it for unintended purposes, then the sponsor shall be responsible together with the State Treasury to recover and repay the advanced capital to the state budget. Strictly prohibit advance funding that is not used or used for unintended purposes;

- In cases where the advance funding has not been fully recovered by the end of the planning year due to the contract not reaching the specified settlement ratio, continue to recover in the following year's plan and do not deduct from the next year's investment capital settlement plan.

e) The State provides capital to the sponsor to settle advance funding in the planning year no later than December 31 (except for advance funding for land clearance implementation which can be carried out until January 31 of the following year). The sponsor may settle advance funding once or multiple times for a contract based on the need for advance funding but not exceeding the advance funding level prescribed above; in cases where the capital plan allocation is insufficient for the advance funding level, the sponsor may request additional advance funding in the following year's plan.

4. Settlement of completed volume (including infrastructure technical investment projects serving forest protection and development and forestry operation projects) shall follow the principle:

a) For construction works carried out through construction contracts, payment shall be made in accordance with the contract: based on the contract price and the conditions stipulated in the contract. The number of payments, payment stages, payment time, and payment conditions must be clearly recorded in the contract. Contract payments shall be made in the following cases:

- For lump-sum contracts: Payment shall be made according to a percentage of the contract price or the project price, sub-project price, or volume of work corresponding to the payment stages specified in the contract.

- For fixed unit price contracts: Payment shall be made based on the actual completed volume of work (including approved increases or decreases in volume within the authority's jurisdiction, if any) accepted for inspection and the unit price in the contract.

- For adjustable unit price contracts: Payment shall be made based on the actual completed volume of work (including approved increases or decreases in volume within the authority's jurisdiction, if any) accepted for inspection and the adjusted unit price due to inflation in accordance with the agreements in the contract.

- For time-based contracts:

+ The cost for experts shall be determined based on the agreed expert salary and related costs in the contract multiplied by the actual working time accepted for inspection (by month, week, day, hour).

+ Other costs outside the expert remuneration are paid according to the method stipulated in the contract.

- For contracts combining different types of prices: payment will be made according to the types of contracts mentioned above.

- For additional work outside the contract, payment for additional work volumes not included in the contract and without a unit price in the contract shall be made in accordance with supplementary agreements to the contract that both parties have agreed upon before implementation and must comply with relevant legal provisions. In the case of additional work volumes, the investor and contractor must sign a supplementary contract appendix according to the following principles:

+ If the additional work volume exceeds 20% of the corresponding work volume stated in the contract or there is no unit price for the additional work in the contract, it shall be paid based on the new unit price agreed upon by both parties according to the principle of agreement in the contract regarding the unit price for additional work volumes;

+ If the additional work volume is less than or equal to 20% of the corresponding work volume stated in the contract, the contract unit price shall be applied, including any adjusted unit prices agreed upon in the contract (if any) for payment;

+ For fixed unit price contracts and time-based contracts, when fuel, material, and equipment prices regulated by the State deviate abnormally from the stable price policy under the Law on Prices or when the State changes tax and wage policies directly affecting the contract price, the unit price may be adjusted for payment with the approval of the investment decision-making level and the agreement of both parties in the contract;

+ For adjustable unit price contracts, the contract unit price shall be adjusted for work volumes where, at the time of signing the contract, the tenderer and contractor committed to adjust the unit price due to inflation after a certain period from the date the contract becomes effective;

+ For lump-sum contracts and percentage contracts, if reasonable additional work outside the scope of the signed contract arises (for construction contracts, this refers to work volumes outside the design-specified scope; for consulting contracts, this refers to work volumes outside the consulting tasks specified). In such cases, when adjusting the volume of work without changing the investment objectives or exceeding the approved total investment ceiling, the investor and contractor shall calculate, agree, and sign a supplementary contract appendix; if it exceeds the approved total investment ceiling, it must be reviewed and decided by the authorized investment decision-maker; if the agreement fails, the additional work volumes will form a new tender package, and the selection of the contractor to implement this tender package shall follow current regulations;

Payment documents: When the completed volume of work is accepted for inspection according to the payment stages and conditions in the contract, the investor shall prepare a payment request document to send to the State Treasury, including:

+ A table determining the value of the completed work volume proposed for payment according toForm No. 05.a/BXĐKLHT (attached to the acceptance certificate) and Form No. 05.b/BXNKLĐB for compensation and land clearance volumes issued together with this Circular;

+ When there is additional work outside the contract, the investor shall submit a table calculating the value of the additional work volume (if any) outside the scope of the signed contract proposed for payment, confirmed by representatives of the tenderer and consultant (if any) and the contractor according toForm No. 06/BXNKLPS issued together with this Circular;

+ A payment application for capital investment or advance payment of capital investment;

+ Financial transfer documents issued in accordance with the accounting document system of the Ministry of Finance.

b) For project works carried out without a contract (such as some project management works directly implemented by the investor, self-executed works), payment shall be made based on a list of completed work volumes and approved estimates suitable for each type of work. Payment documents include: a list of completed work volumes and approved estimates for each work; a payment request for investment capital or advance payment (if any) and transfer vouchers.

For compensation, indemnity, and resettlement costs, payment documents include: a list confirming the volume of compensation and land clearance completed, advance payments, and payments shall be made similarly to projects or construction tender packages. Specifically, the organizational costs for compensation and land clearance must have an approved estimate; a payment request for investment capital or advance payment (if any) and transfer vouchers.

c) In cases where there is a re-inspection and acceptance of the project implementation results as prescribed, the re-inspection and acceptance results shall serve as the final basis for paying the project work volumes.

5. State Treasury Payment Control

a) Based on the payment request file of the project owner, the State Treasury shall base its payments on the payment terms stipulated in the contract. In cases where the project owner implements the project themselves, the file will be either a work assignment document or an internal contract, and the State Treasury shall base its payments on the content of the work assignment document or internal contract of the project owner (number of payments, payment stages, payment time points, and payment conditions) and the value of each payment to pay the project owner. The project owner shall bear full responsibility for the accuracy and legality of the volume of work performed, norms, unit prices, budgets for various tasks, and quality of works. The State Treasury does not bear responsibility for these issues. The State Treasury shall process payments based on the payment files and according to the contract.

b) The State Treasury shall implement payment control based on the principle of "pay first, control later" for each payment and "control first, pay later" for the final payment of the contract. The State Treasury shall provide specific guidance on payment control within the State Treasury system to ensure convenience for the project owner, contractor, and compliance with state regulations.

c) Within seven working days for the case of "control first, pay later" and three working days for the case of "pay first, control later" from the date of receiving all payment files as prescribed by the project owner, based on the contract (or approved budget for tasks implemented without a contract) and the amount requested for payment by the project owner, the State Treasury shall control and fund the payment for the project and recover the advance payment according to regulations.

d) For investment projects using official development assistance (ODA) funds, if international treaties signed by authorized agencies or organizations of the Socialist Republic of Vietnam contain provisions on payment management different from those stipulated in this Circular, such provisions shall be followed.

đ) The payment amount for each task, sub-project, or project shall not exceed the approved budget estimate or tender price; the total payment amount for the project shall not exceed the approved total investment amount. The payment amount for the project in a year (including both advance payments and payments for completed volumes) shall not exceed the annual capital plan allocated to the project. For ODA projects, advance payments and payments for completed volumes are not restricted by the project's annual financial plan but shall not exceed the overall financial plan of the entire project.

e) For certain particularly important projects requiring a different advance payment and payment mechanism from the above provisions, after obtaining the opinion of the competent authority, the Ministry of Finance will issue separate guidelines.

g) The annual capital plan of the project shall only pay for the completed volume that has been accepted for inspection, with the payment deadline (including payments to recover advance payments) as stipulated in Clause 7 of this Article.

6. Management, payment, recovery, and settlement of pre-budgeted capital advances for projects for the following year shall be carried out as follows:

a) The advance use of the next year's state budget estimate to implement forest protection and development projects shall be carried out in accordance with Article 61 of Decree No. 60/2003/NĐ-CP dated June 6, 2003, of the Government detailing and guiding the implementation of the State Budget Law and Circular No. 59/TT-BTC dated June 23, 2003, of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003, and any subsequent supplementary or replacement documents (if any).

b) After the project is permitted by the competent authority to use advance funds, ministries, sectors, and localities must allocate funds strictly according to the assigned list. The Ministry of Finance shall notify ministries, sectors, and localities about the list, total amount of advance funding, source of advance funding, allocation period, and recovery period, and simultaneously send it to the State Treasury for project payment. If ministries, sectors, and localities allocate incorrectly according to the Ministry of Finance's notification, the State Treasury shall stop payments and report to the Ministry of Finance for review and handling.

c) Payment deadline: carried out as the payment deadline for investment capital in the annual plan. Special cases are handled by

d) Recovery of funds: ministries, sectors, and localities are responsible for allocating capital plans for projects in the next year's state budget estimate to repay advance funds. When reviewing the allocation of investment capital in the annual plan, for central government budget funds, the Ministry of Finance shall simultaneously notify the recovery of advance funds, with the maximum amount recovered equal to the amount advanced, except in cases where the Prime Minister permits non-recovery. For local government budgets and additional targeted funds from higher-level budgets to lower-level budgets, if local People's Committees fail to allocate or inadequately allocate the required recovery funds, the local State Treasury shall notify the Department of Finance, Planning and Finance Office to report to the local People's Committees to allocate and recover the previously advanced funds as required.

đ) Final settlement of advance funds: the final settlement of advance funds shall be carried out according to the schedule for recovering funds. If the project recovers advance funds over several years, the amount recovered in the plan of a given year shall be settled in the budget year of that plan, and any amounts paid but not yet scheduled for recovery shall be transferred to the following year for settlement consistent with the recovery plan.

7. Time limit for implementation and payment of investment capital.

a) The capital plan of the year is allocated to the final completed volume accepted until the end of April 30 of the year following the planning year; the payment of the annual capital plan is completed by the end of June 30 of the year following the planning year;

b) Extension of implementation and payment time limits:

- By the end of June of the following year, any unspent or partially spent capital plan allocated to projects shall not be further expended and shall be canceled; except in cases where the competent authority permits extension to the following year (if any);

- The examination of the extension of capital for projects: After the end of the annual capital payment period as prescribed (June 30 of the following year), based on the implementation and capital payment situation of forestry production projects, according to the proposal of the project sponsors listed in point b, Clause 7 of this Article, the managing agencies shall compile and submit a written request accompanied by confirmation from the State Treasury where the project account is opened regarding the amount of capital paid up to June 30 of the following year to the Ministry of Finance (for projects under the central budget) and the Chairman of the People's Committee of the province or centrally-administered city (for projects under local budgets).

- Time limit for review and extension:

+ The request for extension submitted by the managing agencies must be no later than July 31 each year, clearly stating the name of the project, the annual capital plan, the amount of capital paid up to June 30 of the following year, the amount of capital proposed for extended implementation and payment, the duration of the extension, and the reasons for the extension.

+ Based on the request submitted by the managing agencies, the Minister of Finance (for projects under the central budget) and the Chairman of the People's Committee of the province (for projects under local budgets) shall decide on the list and duration of projects permitted to extend their implementation.

+ The decision on the list and duration of projects allowed to extend must be finalized before August 30 each year;

By August 30 of the following year, if there is no written approval from the competent authority to extend the implementation plan to the next fiscal year, the remaining capital will be canceled.

- Extended payment deadline: no later than December 31 of the year following the planning year. Other cases shall be decided by the Prime Minister;

Article 6. Reporting, Settlement, and Inspection Regime

1. Reporting.

a) For project sponsors, ministries, and centrally-administered provinces and cities: implement the reporting regime as prescribed in Decision No. 52/2007/QĐ-TTg dated April 16, 2007.

b) For the State Treasury:

- Implement the reporting regime as prescribed by the Ministry of Finance;

- At the end of the fiscal year, the State Treasury shall aggregate the data on capital disbursement and report to the corresponding financial agency in accordance with the regulations on state budget settlement;

- By the end of the fiscal year, the State Treasury shall confirm the amount disbursed during the year and the cumulative amount disbursed from the start of construction to the end of the state budget year for each project as established by the project sponsor at two points in time: by January 31 of the following year and by June 30 of the following year.

2. Capital Settlement.

a) Annual Capital Settlement:

The annual capital settlement shall be carried out in accordance with the guidelines of the Ministry of Finance (currently stipulated in Circular No. 210/2010/TT-BTC dated December 20, 2010, guiding the settlement of capital investment in basic construction projects funded by the state budget on an annual basis) and any subsequent amendments, supplements, or replacements (if applicable).

b) Settlement of Completed Projects:

The settlement of completed projects shall be carried out in accordance with the guidelines of the Ministry of Finance on the settlement of completed projects funded by state resources (currently stipulated in Circular No. 19/2011/TT-BTC dated February 14, 2011, guiding the settlement of completed projects funded by state resources) and any subsequent supplements or replacements (if applicable).

For forest development projects involving forestry activities implemented by individuals, households, groups, teams, or community residents, the project sponsor (or Management Board) shall prepare a detailed settlement report (quantity settlement statement) reflecting the results of the project or project component in accordance withModel No. 07/BQTCT issued together with this Circular. For projects with multiple forestry activities or components, depending on the scale, nature, and duration of the activities, the project sponsor may settle, review, and approve the settlement of capital investment for each activity or independent component that has been completed and put into operation as required by the investor. The value proposed for settlement of the activity or component is the actual quantity executed according to the budget estimate and accepted (including the portion supported by the state budget and the investment made by organizations implementing the forestry activities).

For comprehensive forest protection and development investment projects (referred to as forestry investment projects) which have the characteristics of a type of project comprising several component projects or independent sub-projects (each with its own decision approving the project or economic-technical report for construction), each component project or independent sub-project shall be settled, reviewed, and approved as an independent project in accordance with this Circular. After the entire project is completed, the project sponsor (or the project management agency in cases where there are multiple sponsors for component projects) shall consolidate the settlement results of the entire project and report to the competent authority for approval; it is not necessary to review and approve the settlement of component projects or sub-projects that have already been reviewed and approved in accordance with the regulations.

For forestry activities affected by risks due to unforeseeable factors, they shall be handled in accordance with Decision No. 73/2010/QĐ-TTg dated November 16, 2010, of the Prime Minister, determining the amount of state budget capital loss to be included in the report for the investment decision-making authority to consider and decide on the handling.

c) Inspection:

Ministries, provincial (city) People's Committees, financial agencies, and the State Treasury shall periodically or unexpectedly inspect project sponsors and contractors participating in projects regarding the use of advance payments, capital disbursements for completed work volumes, settlement, and compliance with national financial policies and regimes for investment and development.

Financial agencies at all levels shall periodically or unexpectedly inspect the State Treasury regarding the implementation of the capital disbursement regime.

Chapter III

IMPLEMENTATION

Article 7. Responsibilities and Authorities of Relevant Agencies

1. For the Project Owner.

a) Perform the functions and tasks assigned according to regulations, receive and use funds for their intended purpose, target, and effectively. Adhere to the financial management system regulations for investment development set forth by law;

b) Bear full responsibility for the accuracy and legality of the volume of work completed and compliance with the norms, unit prices, and budgets approved by the competent authority; quality of the project and value of payment requests; ensure the accuracy, truthfulness, and legality of all data and documents provided to the State Treasury and relevant state agencies;

c) When the volume of work meets the conditions for payment as stipulated in the contract, promptly conduct acceptance inspections, prepare complete payment files, and request payment from the contractor within the time frame specified in the contract;

d) Based on current insurance laws and construction laws, the Project Owner must purchase insurance for investment projects;

đ) Timely and fully report to the investment decision-making agency and other relevant state agencies as required; provide sufficient documentation and information to the State Treasury and finance agency to facilitate capital management and payment; be subject to inspection by the finance agency, State Treasury, and investment decision-making agency regarding the use of investment capital and adherence to state financial policies and systems for investment development;

e) Regularly check the implementation of advance payments by contractors, inspect before, during, and after the provision of advance payments, and ensure the recovery of advance payments in accordance with regulations;

g) Maintain accounting records according to the accounting system for the project owner; settle investment capital according to current regulations. At the end of the plan year, prepare a reconciliation statement of investment capital payments sent to the State Treasury where the project owner conducts transactions for confirmation at two points: by January 31 of the following year and June 30 of the following year according to Model No. 08/ĐCSLTT issued along with this Circular;

h) Be entitled to request payment when all conditions are met and ask the State Treasury to respond and explain any unsatisfactory aspects in the payment process;

2. The State Treasury.

a) Control and make timely and full payments for the project when all conditions are met and within the prescribed timeframe;

b) Provide written comments to the project owner regarding reductions or refusals in payment, and respond to any issues raised by the project owner concerning capital payments;

c) The State Treasury only controls payments based on the documents provided by the project owner and according to established payment principles, and does not bear responsibility for the accuracy of the volume, norms, unit prices, and quality of the project;

d) Have the right to request the project owner to provide relevant documents and information to support the control of capital payments;

đ) Regularly urge project owners and project management boards to comply with regulations on advance payments and recovery of advance payments, cooperate with project owners to inspect advance payments to recover unused or improperly used funds;

e) Implement the reporting and settlement system for investment capital usage according to established regulations;

g) Periodically and unexpectedly inspect project owners on the implementation of projects, compliance with financial policies and systems for investment development, and management and use of investment capital;

h) At the end of the plan year, confirm the amount paid in the year, cumulative amounts paid from the start of construction to the end of the fiscal year for each project at two points: by January 31 of the following year and June 30 of the following year according to Model No. 08/ĐCSLTT issued along with this Circular.

3. For Ministries, Sectors, and Provincial People's Committees.

a) Guide, inspect, and urge project owners under their jurisdiction to implement investment plans, receive and use investment capital for its intended purpose and according to state regulations;

b) Within the scope of their delegated authority, issue criteria and norms for investment support according to regulations and be responsible before the Government and the law for their decisions.

4. Department of Planning and Investment. Lead and coordinate with the Finance Department and related agencies based on current regulations to propose the allocation of investment capital managed by the locality for approval by the Provincial People's Committee;

5. Department of Agriculture and Rural Development. Lead and coordinate with related agencies to develop indicators and tasks for the annual forest protection and development plan linked to the annual capital plan for submission to the Provincial People's Committee for approval; Assist the Provincial People's Committee in directing and managing project owners to implement assigned plans.

6. Finance Department. - Coordinate with the Department of Planning and Investment and related agencies to review the allocation of investment capital and adjust the investment capital plan before submitting it to the Provincial People's Committee for decision on capital allocation and assist the Provincial People's Committee in directing and managing project owners to implement assigned plans; - Lead and coordinate with related agencies to review and approve final accounts of projects managed by the locality for submission to the Provincial People's Committee for approval. - Implement the reporting system according to established regulations.

7. Financial and Planning Office. Assist the District People's Committee in allocating and adjusting the investment capital plan managed by the district level according to regulations; review projects, audit final accounts of projects managed by the district level for submission to the District People's Committee for approval and compile reports on the implementation of the annual capital plan according to regulations.

Article 8. Effective Date

1. This Circular takes effect from August 15, 2014. This Circular replaces Circular No. 172/2011/TT-BTC dated December 1, 2011, issued by the Ministry of Finance, which regulates the management, payment, and settlement of capital for forestry construction projects funded by the state budget.

2. During implementation, if there are difficulties or obstacles, units are advised to report to the Ministry of Finance for consideration and appropriate amendments and supplements./.