Circular No. 85/2017/TT-BTC on the settlement of the use of state budget capital for investment according to the annual budget period

CIRCULAR

Specifies the settlement of the situation regarding the use of state budget capital investment according to the annual budget period.

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Based on the State Budget Law No. 83/2015/QH13 dated June 25, 2015;

Decree No. 163/2016/NĐ-CP dated 21/12/2016 of the Government provides detailed implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of 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 specifying the settlement of the situation regarding the use of state budget capital investment annually. annually.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular specifies the settlement of the situation regarding the use of state budget capital investment annually, including: preparation, submission, review, audit, notification of audit results, and adjustment of settlement.

Article 2. Applicability

Ministries, ministerial-level agencies, government agencies, political organizations, political-social organizations (hereinafter referred to collectively as central ministries and sectors) and People's Committees at all levels, supervisory agencies of the project owners, project owners, financial agencies, State Treasury, and other agencies entrusted with managing state budget capital investment annually.

Article 3. Principles settlement

1. The figures for the settlement of state budget capital investment annually must be accurate, truthful, and fully reflect information about the situation of using the annual state budget capital investment plan.

2. Figures included in the annual settlement report of state budget capital investment must be verified and confirmed with the State Treasury where transactions take place or the agency responsible for disbursing funds.

3. Annually, at the end of the budget year, central ministries and sectors, People's Committees at all levels, supervisory agencies of the project owners, project owners, financial agencies, State Treasuries at all levels, and other agencies entrusted with managing state budget capital investment annually shall carry out the preparation, submission, review, audit, and notification of audit results, and adjustment of settlement according to the contents, principles, and deadlines stipulated in the State Budget Law and this Circular.

Chapter II

SPECIFIC PROVISIONS

Article 4. Deadline for closing accounts to prepare the settlement report year

At the end of the budget year, agencies, organizations, and units related to the implementation of the annual state budget capital investment plan shall close their accounting books and prepare the settlement report as prescribed. The deadline for adjusting the annual settlement ends on January 31 of the following year. Advance payments that have met the conditions for disbursement, workloads, and tasks completed before December 31, which were allocated in the budget estimate, will have their disbursement and payment deadlines extended until January 31 of the following year and will be recorded and settled in the previous year's budget.

Article 5. Content of the Settlement Report capital state budget capital investment annually year

1. Types of state budget capital investment plans that need to prepare the annual settlement report include:

a) Capital investment from the state budget allocated in the current year.

b) Capital investment from the state budget belonging to previous years' plans approved by competent authorities to be carried over and implemented and paid in the settlement year.

2. For capital investment allowed by competent authorities to be advanced against the next year's plan, there is no requirement to prepare an annual settlement report, but a summary report on the implementation and payment status during the year should be prepared for the monitoring and management by financial agencies at all levels as prescribed.

3. Payment amounts included in the annual settlement report include:

a) The total amount paid for completed works of projects assigned in the annual plan, including payments made through book entries or foreign currency payments from January 1 of the planning year to the settlement adjustment deadline.

In cases where the capital investment plan includes provisions for recovering advance payments made to projects (based on actual disbursements), the settlement amount is the total amount paid for completed works up to the end of the settlement period, including the portion of completed works paid previously from the advanced plan.

* Example: Project A received an advance allocation of 10 billion VND from the state budget in 2015. The 2016 capital investment plan for the project was set at 30 billion VND, including 5 billion VND for recovery of advances (based on actual disbursements). However, the actual disbursement result for the recovery plan was only 3 billion VND (including 2 billion VND for completed works and 1 billion VND for provisional advances). Therefore, the remaining capital to be paid in 2016 is 27 billion VND (20 billion VND for completed works and 7 billion VND for provisional advances). Thus, the amount included in the 2016 settlement for Project A for completed works is 22 billion VND (including 2 billion VND and 20 billion VND) and 8 billion VND (including 1 billion VND and 7 billion VND) transferred to subsequent settlement years. + VND 20 billion) and the amount of advance capital according to regulations is VND 8 billion (including: VND 1 billion + VND 7 billion) transferred to subsequent years for settlement.

b) Payments for completed works of projects funded from the previous year's plan approved to be carried over and implemented and paid, including payments made through book entries or foreign currency payments from February 1 of the planning year to the settlement adjustment deadline.

c) Payments from February 1 of the planning year to the settlement adjustment deadline for provisional advances from previous years transferred to the planning year, minus any provisional advances from previous years adjusted downward in the current year (if applicable).

4. Provisional advances not recovered are not included in the annual budget settlement of the settlement year. After the settlement adjustment period, the remaining provisional advances not recovered are transferred to the following year's budget for recovery, without the need for financial agencies to review and transfer.

5. The figures in the settlement report must be detailed by ministry, sector, locality, source of funding, and project, including details of domestic and foreign capital (if applicable).

Foreign capital brought into the budget settlement period for the fiscal year includes: the amount of foreign capital that has been recorded as income and expenditure, and the amount of foreign capital settled under the domestic financial mechanism (if applicable). At the same time, units shall report separately on projects with foreign capital settled under the domestic financial mechanism similar to the model with foreign capital.

6. Section Explanation:

a) For the project sponsor: report on the implementation of the plan, payment, and final settlement of state budget investment funds assigned by the State for the year; explain existing issues, difficulties, and factors affecting the implementation of the plan, payment, and final settlement of funds; propose measures to resolve issues related to investment fund management.

b) For central ministries and sectors; superior agencies of the project sponsor; local departments and sectors; project sponsors (or specialized project management boards, regional project management boards): Report generally on the implementation of plans, payments, and final settlements of state budget investment funds assigned by the State for the year; explain existing issues, difficulties, and factors affecting the implementation of plans, payments, and final settlements of funds compared to the assigned plan, specifying increases or decreases in the investment fund plan; propose measures to resolve issues related to investment fund management.

c) For the State Treasury agency, payment agency:

Report generally on the characteristics, payment, and final settlement of state budget investment funds assigned by the State for the year under the supervision of the State Treasury (or payment agency).

Propose and recommend solutions to resolve existing issues and difficulties related to the annual final settlement of state budget investment funds as well as investment fund management.

7. Section Data and Forms:

a) For project sponsors implementing forms issued together with this Circular, to be submitted to their superior agencies, including:

- Form 01/CĐT on reporting the final settlement of state budget investment funds according to the fiscal year budget period.

- Form 02/CĐT on reporting the plan and payment of state budget investment funds - Advance payment against the next year's budget plan.

- Form 03/CĐT on reporting the comprehensive results of handling the recommendations of the State Audit Agency, inspection agencies of projects using state budget investment funds during the final settlement year.

- Form 04/CĐT on the reconciliation confirmation table of state budget investment fund data.

The project sponsor must reconcile and confirm the data on the plan and funds already paid with the State Treasury where transactions take place (or the payment agency) according to Form 04/CĐT before preparing the annual final settlement report. For commune budgets, the State Treasury collaborates with the Commune People's Committee to review, reconcile, and ensure the accuracy of data between the State Treasury and the commune accounting office. The reconciliation result serves as the basis for the Commune People's Committee to report the commune budget final settlement.

b) For central ministries and sectors; superior agencies authorized to manage the project sponsor; local departments and sectors implementing forms issued together with this Circular:

- Form 01/CQTH on reporting the final settlement of state budget investment funds according to the fiscal year budget period.

- Form 02/CQTH on reporting the plan and payment of state budget investment funds - Advance payment against the next year's budget plan.

- Form 03/CQTH on reporting the comprehensive results of handling the recommendations of the State Audit Agency, inspection agencies of projects using state budget investment funds during the final settlement year.

- Form 04/CQTH on reporting the final settlement of state budget investment funds managed by localities. This form is compiled by the provincial Department of Finance and reported to the Ministry of Finance (Investment Department).

- Form 05/CQTH on the reconciliation confirmation table of state budget investment fund data.

Central ministries and sectors must reconcile and confirm the data on the plan and funds already paid with the State Treasury according to Form 05/CQTH before preparing and submitting the annual budget period final settlement report to the Ministry of Finance.

c) For State Treasuries at all levels implementing forms issued together with this Circular:

- Form 01/KBQT on reporting the final settlement of state budget investment funds of central ministries and sectors, localities - detailed by source and unit, compiled by the State Treasury and submitted to the same-level finance agency.

- Form 02/KBQT on reporting the final settlement of state budget investment funds of central ministries and sectors - summarized by unit and detailed to the project level, compiled by the State Treasury and submitted to the same-level finance agency.

- Form 03/KBQT on reporting the final settlement of state budget investment funds of provinces and cities - summarized by unit and detailed to the project level, compiled by the State Treasury and submitted to the same-level finance agency.

- Form 04/KBQT on reporting the plan and payment of state budget investment funds - Advance payment against the next year's budget plan of central ministries and sectors, localities - summarized by unit and detailed to the project level, compiled by the State Treasury and submitted to the same-level finance agency.

- Form 05/KBQT on reporting the comprehensive payment of state budget investment funds according to the State Budget Item List. This form is compiled by the State Treasury and units receiving funds through payment orders and submitted to the same-level finance agency.

d) For units receiving funds through payment orders: When preparing the annual state budget final settlement report, units shall report separately in a similar manner to the models mentioned above: 01/CĐT; 02/CĐT; 01/CQTH; 02/CQTH; 02/KBQT; 04/KBQT; 05/KBQT.

đ) For projects assigned a plan of foreign capital to be settled under the domestic financial mechanism: When preparing the annual state budget final settlement report, it is requested that units report separately in a similar manner to the models with foreign capital mentioned above (issued together with this Circular).

8. Regarding the handling, consolidation, and reporting of the results of implementing the conclusions of the State Audit Agency and the supervisory agency: The project sponsor, the superior agency of the project sponsor, central ministries and sectors, local departments and agencies, and People's Committees at all levels shall report on the implementation of the conclusions of the State Audit Agency and the supervisory agency for each specialized topic and projects using state budget investment funds processed in the year of final settlement, clearly stating the amount of capital already refunded to the state budget, the amount of capital recovered due to incorrect expenditures by contractors, the amount of capital deducted during payment, and the remaining amount yet to be recovered and refunded to the state budget according to the conclusions of the State Audit Agency and the supervisory agency as prescribed in this Circular.

Article 6. Procedures for preparing, submitting, reviewing, and announcing the results of reviewing annual state budget investment capital settlement reports

1. For capital managed by central ministries and sectors:

a) The project sponsor prepares the annual settlement report and submits it to the relevant ministry or sector. These ministries or sectors review the settlement of the project sponsors; consolidate and prepare the annual settlement report to submit to the Ministry of Finance.

b) In cases where central ministries and sectors have delegated management authority, the project sponsor prepares the annual settlement report and submits it to the superior agency with delegated management authority; the superior agency with delegated management authority reviews the settlement of the project sponsors and consolidates the settlement of projects within its delegated management scope to submit to the relevant ministry or sector for consolidation and preparation of the annual settlement report to submit to the Ministry of Finance.

If the annual settlement report prepared by the project sponsor does not comply with regulations, the superior agency with delegated management authority or the ministry or sector may require the project sponsor to provide explanations or necessary information, correct errors, complete the report, or prepare a new report for review in accordance with regulations. At the same time, they must require the project sponsor to immediately pay any amounts due to the state budget as stipulated and adjust any expenditures that violate regulations or deviate from the assigned plan, handle them according to their authority, or propose that the competent authority handle the project sponsor for violating regulations.

c) Before submitting the annual budget settlement report to the Ministry of Finance, central ministries and sectors must reconcile and review data with the State Treasury (central level) to ensure that the data of the unit and the State Treasury are fully reconciled and match accurately, and simultaneously include a Reconciliation Data Confirmation Table between the State Treasury (central level) and the unit according to Form No. 05/CQTH, which is submitted along with the annual budget settlement report sent to the Ministry of Finance.

d) The State Treasury (or payment agency) consolidates the annual settlement report of state budget investment sources under the control and settlement of the State Treasury (or payment agency) and sends it to the Ministry of Finance.

đ) The Ministry of Finance reviews and issues a notification of the results of the annual settlement review to central ministries and sectors.

2. For capital managed by localities:

a) Capital managed by provincial and district budgets:

- The project sponsor (or Specialized Project Management Board, Regional Project Management Board) prepares the annual settlement report and submits it to the provincial and district departments and agencies with delegated management authority.

- Provincial and district departments and agencies review the settlement of project sponsors within their management responsibility; consolidate and prepare the annual settlement report to submit to the Provincial Department of Finance and District Financial Planning Office.

If the annual settlement report prepared by the project sponsor does not comply with regulations, provincial and district departments and agencies may require the project sponsor to provide explanations or necessary information, correct errors, complete the report, or prepare a new report for review in accordance with regulations. At the same time, they must require the project sponsor to immediately pay any amounts due to the state budget as stipulated and adjust any expenditures that violate regulations or deviate from the assigned plan, handle them according to their authority, or propose that the competent authority handle the project sponsor for violating regulations.

- Local departments and agencies, project sponsors (or Specialized Project Management Board, Regional Project Management Board) must reconcile and review with the provincial and district State Treasuries before submitting the annual budget settlement report to the Provincial Department of Finance and District Financial Planning Office, ensuring that when submitting the settlement report to the Provincial Department of Finance and District Financial Planning Office, the data of the unit and the State Treasury are fully reconciled and match accurately.

- The provincial and district State Treasuries consolidate the annual settlement report of state budget investment sources under their control and settlement and send it to the financial agency at the same level.

- The Provincial Department of Finance and District Financial Planning Office reviews and announces the results of the annual settlement review to local departments and agencies, specialized project management boards, regional project management boards, and the State Treasury at the same level; consolidate the annual local government budget settlement report to submit to the People's Committee at the same level for approval by the People's Council at the same level.

Within five working days after the provincial People's Council approves the state budget settlement, the provincial People's Committee shall submit the settlement report to the Ministry of Finance for consolidation and reporting as prescribed.

Simultaneously, the Provincial Department of Finance shall consolidate the annual state budget investment capital settlement report managed by localities and send it to the Ministry of Finance and the State Treasury according to Form No. 04/CQTH of this Circular.

b) Capital managed by village, ward, town (hereinafter referred to as village-level) budgets:

To be consistent with the organizational structure and delegation of each locality, based on the provisions of this Circular, the Provincial Department of Finance shall submit to the provincial People's Committee for regulations on procedures for preparing, submitting, reviewing, and announcing the results of the annual settlement review in accordance with the State Budget Law and guiding documents.

The district State Treasury shall consolidate and prepare the annual settlement report of state budget investment sources under its control and settlement and send it to the District Financial Planning Office and the Village People's Committee (for the village-level management part).

3. Ministries, sectors, localities shall submit their final accounts reports to the Ministry of Finance in writing, and simultaneously send electronic data files in Excel format to the email address: [email protected] in accordance with the regulations.

Article 7. Contents for reviewing and examining annual final accounts reports on state budget capital investment

1. For superior agencies of the project owner:

a) Check the completeness and accuracy of the plan, list, project name, and payment capital (including advance payments according to regulations; payment for completed work volume) of each project assigned in the year and carried over from the previous year's plan continued to be implemented and paid.

b) Compare the payment capital with the planned capital of each project; determine the capital to be transferred to the following year for continued implementation and payment; cancelled capital plans.

c) Check the appropriateness of the sources and structure of capital for each project.

d) Comment on the implementation, payment, and final accounting of capital during the year, compliance with regulations and policies, and other situations.

đ) Require the project owner to immediately pay any amounts due to the state budget according to regulations and adjust any expenditures made in violation of regulations or not in accordance with the assigned plan; handle according to authority or propose the competent authority to handle the project owner for violating regulations.

e) Other comments (if any).

2. For financial agencies:

a) Check and confirm the appropriateness of the total sources and structure of capital in the final accounts reports of ministries, sectors, localities, and the consolidated final accounts report of the State Treasury (or payment agency).

b) Check and confirm the consistency of the project list between the final accounts reports of ministries, sectors, localities, and the State Treasury at the same level (or payment agency).

c) Compare the capital plan and payment amount of each project between the final accounts reports of ministries, sectors, localities, and the State Treasury at the same level (or payment agency); determine the capital to be transferred to the following year for continued implementation and payment; cancelled capital plans.

d) Require responsible agencies to adjust and recover expenditures made in violation of regulations and require immediate payment of any amounts due to the state budget according to regulations.

đ) Other comments.

Article 8. Time limit for submitting final accounts reports, examination, and announcing examination results of annual state budget capital investment

1. Time limit for submitting annual final accounts reports:

a) For capital managed by central ministries and sectors:

The project owner shall prepare the annual final accounts report and submit it to the central ministry or sector or the superior agency authorized to manage the project owner before May 1st of the following year.

Central ministries and sectors shall consolidate the final accounts report, reconcile figures with the State Treasury (central), and sign the Reconciliation Confirmation Form (Form 05/CQTH) completed before June 30th of the following year, and submit the annual final accounts report to the Ministry of Finance before August 1st of the following year.

b) For capital managed by localities: The time limit for submitting and examining final accounts reports is determined by the Provincial People's Committee in accordance with the State Budget Law and guiding documents, but must ensure the time for consolidating, preparing, and submitting the final accounts report on the state budget according to the prescribed regulations.

c) The State Treasury shall consolidate, prepare, and submit the annual final accounts report: before March 15th of the following year (for district-level State Treasuries); before May 15th of the following year (for provincial-level State Treasuries); and before July 15th of the following year (for central-level State Treasuries).

          2. Time limit for examination and announcing examination results of annual final accounts reports:

Within thirty days (from the date of receiving complete files according to the prescribed regulations), the financial agency must complete the examination and announce the examination results of the annual final accounts report for each agency and subordinate unit at the same level according to Form 01/TBTĐ issued together with this Circular.

Chapter III

RESPONSIBILITIES OF RELATED AGENCIES

Article 9. Responsibilities of the project owner, superior agencies of the project owner, central and local agencies

1. Bear responsibility for the figures included in the annual final accounts report; consolidate, prepare, examine the final accounts report according to the guidelines of this Circular, and submit it to the financial agency at the same level within the prescribed time limit.

2. Within fifteen days (from the date of receipt of the examination result notification of the financial agency), have the responsibility to implement and provide written explanations about the recommendations in the examination result notification to the financial agency.

3. Superior agencies of the project owner bear responsibility for handling discrepancies in each project's figures. Specifically, payment figures must be reconciled and matched with those of the State Treasury (or payment agency).

 Article 10. Responsibilities and authorities of financial agencies at all levels

1. Based on the annual final accounts reports prepared by primary budget units and State Treasuries at all levels (or payment agencies), the financial agency shall conduct examinations, notify examination results, and consolidate them into the final accounts of state budgets at all levels in accordance with the provisions of the State Budget Law and guiding documents. During the examination process, the financial agency has the right to request primary budget units, lower-level financial agencies, State Treasuries (or payment agencies) to supplement necessary information and figures for the examination of final accounts; require responsible agencies to pay any amounts due to the state budget according to regulations, and simultaneously require the reporting agency to adjust the final accounts figures if there are errors.

2. In cases where full annual final accounts reports (including adjusted and supplementary reports, explanations regarding recommendations in the examination result notification of the financial agency) are not received due to primary budget units (or subordinate units directly under them, or project owners) failing to comply with the regulations on annual final accounts reporting:

a) To ensure the time limit for finalizing the state budget at all levels as stipulated by the State Budget Law, based on the annual final accounts report of the State Treasury (or payment agency), the financial agency shall check and consolidate into the final accounts of the state budget at all levels.

b) The financial authority has the right to temporarily suspend or request the State Treasury (or payment agency) to temporarily suspend the disbursement of investment capital until it receives the final settlement report, and issue a notification for the relevant unit to be aware and cooperate in implementation.

3. In cases where the final settlement report (including adjusted, supplementary reports, and explanations regarding recommendations in the financial authority's annual settlement audit notice) has been received, but there are discrepancies in data between the final settlement reports of primary budget units and the State Treasury (or payment agency), the financial authority shall base its audit and consolidation into the state budget settlement at all levels on the final settlement report of the State Treasury.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Implementation Provisions

1. This Circular takes effect from October 1, 2017, and applies from the 2017 fiscal year.

This Circular replaces Circular No. 210/2010/TT-BTC dated December 20, 2010, issued by the Ministry of Finance, which stipulates the final settlement of investment capital for basic construction projects funded by the state budget according to the annual state budget cycle.

2. During implementation, in cases where the regulatory legal documents cited for application in this Circular are amended, supplemented, or replaced by new documents, they will be applied according to those new documents.

3. During implementation, in cases of difficulties, units are requested to promptly reflect them so that the Ministry of Finance can study and make appropriate amendments and supplements./.