CIRCULAR

REGULATIONS ON MANAGEMENT OF INVESTMENT CAPITAL UNDER THE BUDGET OF TOWN, WARD AND COMMUNE

Pursuant to the Law on State Budget No. 01/2002/QH11 dated December 16, 2002 and Decree No. 60/2003/ND-CP dated June 06, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to the Law on Construction No.16/2003/QH11 dated November 26, 2003 and Decree No. 12/2009/ND-CP dated February 12, 2009 of the Government on management of construction investment projects and Decree No. 83/2009/ND-CP dated October 15, 2009 of the Government on amending and supplementing a number of articles of Decree No. 12/2009/ND-CP dated February 12, 2009 on management of works construction investment;

Pursuant to Decree No. 112/2009/ND-CP dated December 14, 2009 of the Government on management of works construction investment costs;

Pursuant to Decree No. 85/2009/ND-CP dated October 15, 2009 of the Government guiding the implementation of the Bidding Law and selecting contractor under the Law on Construction No. 48/2010/ND-CP dated May 07, 2010 of the Government on contract in constructional activities;

Pursuant to Decree No. 52/1999/ND-CP dated July 08, 1999 of the Government on issuing Regulation on management of investment and construction, Decree No. 12/2000/ND-CP dated May 05, 2000 and Decree No. 07/2003/ND-CP dated January 30, 2003 of the Government on amending and supplementing of number of articles of Regulation on management of investment and construction issued together with Decree No. 52/1999/ND-CP dated July 08, 1999 of the Government;

Pursuant to Decree No.118/2008/ND-CP dated November 27, 2008 of the Government defining the functions, duties, powers and organizational structure of the Ministry of Finance;

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Chapter I

GENERAL REGULAITONS

Article 1. Scope of adjustment and subjects of application

1. This Circular applies to projects of works construction investment (feasibility study report) or technical -economic report of works construction (hereinafter collectively referred to as investment project) invested by budget capital of town, ward and commune (hereinafter referred to as the communal budget) and under the approval authority of Chairman of People’s Committee of town, ward and commune level (hereinafter referred to as communal People's Committee).

2. This Circular does not apply to projects and works that are under the management of communal People's Committees and are directed for performance in other documents of the competent levels.

3. For investment projects under the management of communal People's Committees invested by other capital resources (not funded by the state budget) to encourage the application of this Circular.

Article 2. Principle of investment capital management

Before approving investment projects, the investment decider must clearly identify the capital resource for investment projects; only making decision to invest when clearly identifying the capital resources with the ability to balance capital and ensuring allocation of adequate capital for the project implementation not exceeding 3 years. Where the investment projects are funded with the budget from higher-level, before approving the investment projects, there must be a written agreement on the funding from the capital supporting level. It is strictly prohibited to implement investment projects when there is no capital guarantee. If the investment projects are invested upon decision without identifying the origin and capital of the state budget making the construction extended and wasteful, the signer of investment decision must take responsibility for the damage caused by this extension.

In special and urgent cases (due to natural disasters or fires), the project need starting immediately, it must be consented in writing by the Standing People’s Council of commune, ward or Standing People’s Committee for localities having pilot non-organization of People’s Council (hereinafter referred to as the commune People's Council) and must be approved in writing by People’s Committee of district, town and provincial cities (hereinafter referred to as district People's Committee). The investment projects of this case must have estimated plan for secured capital resources, be allocated with funds upon their receipt and must avoid debt capital.

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3. The investment projects decided to be invested by Chairman of communal People’s Committee must be in the plan approved by the competent authority and comply with the order and procedures for works construction investment under current regulations of the State;

Where the investment projects are not included in the planning approved by the competent authority, before being approved, the investment projects must be approved in writing by district People’s Committee on the planning

4. Chairman of the communal People’s Committee shall manage the projects of works construction investment; must ensure the use of investment properly, economically, efficiently, publicly and transparently; comply with regulations on management of finance - investment - construction of the State and the specific provisions of this Circular.

5. Investor or project management unit established by the investor or organization of project management consultation is hired by the investor for project management (hereinafter referred to as investor) shall implement the project of works construction investment under the current regulations of the State and the specific provisions of this Circular.

6. Financial authority of all levels, the higher-level agency in charge of works construction investment under their function and assigned duties, shall guide the investor to implement the investment projects. The State Treasury agency shall control and make payment of investment capital in a timely manner, fully and accurately and in line with regulations to the investment projects when payments are eligible for investment capital under the current provisions of the State and the specific provisions of this Circular.

Chapter II

SPECIFIC PROVISONS

Article 3. Investment capital

1. Commune budget capital spent for investment projects

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3. The contributions on the voluntary principle of communal people for each specific investment project shall be adopted by communal People's Council and put into the budget revenue of communes.

4. The voluntary contributions and non-refundable aids of organizations and individuals (domestic and foreign) to invest in projects managed by the commune are done as follows:

a) In case of cash contributions:The communal People's Committees shall collect and pay into the deposit account of investment capital under the communal management of communal budget opened at the State Treasury (if contributed in foreign currency, it shall be converted into Vietnam dong at the foreign exchange rate monthly published by the State Treasury).

b) In case of in-kind contributions:

- For contribution with materials and volunteer labor of people in commune: based on the amount of materials and labor of people, material price and labor day price at locality (at the time of contribution), the communal People's Committee shall determine the value (in Vietnam dong) to perform the record of revenue and expenditure in accordance with regulations.

- For in-kind contributions of other organizations and individuals invested for commune: the communal People's Committee shall establish the Council to determine the value of objects (in Vietnam dong) for the management of investor while recording the revenue and expenditure as prescribed. The Council determining the value of objects shall be established by decision of Chairman of communal People's Committee. The Council members include the local Government and organization’s representatives of communal unit and the community investment supervision Board.

Article 4. Making of plan, announcement of plan allocation and adjustment of annual investment capital plan

1. Making investment capital plan:

a) The making of investment capital plan of communal People’s Committee shall comply under the regulations of the Ministry of Finance (in Circulars No. 60/2003/TT-BTC dated June 23, 2003 stipulating the management of communal budget and other financial activities of communes, wards and towns and Circular No. 63/2009/TT-BTC dated March 27, 2009 stipulating the making of estimate, implementation of estimate and settlement of budget of district and ward where People’s Council is not established), namely: based on the social-economic development plan of communes, the investor shall make investment capital plan with the time of making communal estimate for submission to communal People’s Committee. Based on the estimated investment capital, the communal People’s Committee shall aggregate and submit the communal investment capital plan to communal People’s Council for review and adoption (under the form No. 01/BC-KHDT issued together with this Circular). The investment capital plan must ensure the following contents:

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- Proposals (if any);

- The communal investment capital plan, after being adopted by the communal People’s Council, shall be sent to the Financial and Planning Division of district, town and provincial cities (below collectively referred to as district Financial and Planning Division). The district Financial and Planning Division shall make report to the district People’s Committee, the Department of Finance, Department of Planning and Investment (Form No. 02/BC-KHDT issued together with this Circular).

2. Announcement of allocation of investment capital plan:

Based on the annual investment capital plan adopted by communal, on the basis of the communal budget revenues, supporting funds from higher-level budget, the capital mobilized and contributed and performed volume of investment projects, Chairman of the communal People's Committee shall allocate and decide to assign the investment capital plan for each project, and send it to the State Treasury (where the account is opened) as a basis for control and payment of capital for investment projects (Form No. 03/TB-KHDT issued together with this Circular).

Communal People's Committees shall allocate in detail the development investment capital for each project under the code of investment projects and economic sector (category, item) under Appendix No.02 issued together with Decision No. 33/2008 / QD-BTC dated June 02, 2008 of the Minister of Finance on the system of state budget list and amended or supplemented documents (if any).

3. Adjustment of annual investment capital plan:

- The communal People's Committee shall periodically review the implementation progress and investment objectives of the investment projects in the year to adjust the plan under its authority, transfer capital from the investment projects which cannot be carried out to investment projects implemented ahead of schedule and are able to be completed over the annual plan. The adjustment of plan must ensure that the plan of investment project after the adjustment shall not be lower the amount of capital the State Treasury has paid to those investment projects;

- The time limit for adjustment of annual plan ends no later than December 25 of the plan year.

Article 5. Payment of investment capital

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a) Investors may open payment accounts of investment capital of communal budget at the State Treasury (where the transaction accounts of communal budget are opened) as prescribed by the Ministry of Finance on the regulation to open and use accounts at the State Treasury.

b) The State Treasury shall guide the opening of account for investors

2. Intial basic dossiers and documents of investment projects:

To serve the management and control of payment of investment capital, the investor must send the State Treasury (where payment accounts are opened) the basic documents of investment projects (these documents are the investor’s originals or certified copies, these documents are sent only once until the end of the investment project, unless there is adjustment or supplementation), including:

a) For projects prepared for investment:

- Estimated costs for the preparation of the approved investment.

- Written approval of contractor selection results under the provisions of the Bidding Law.

- Contract between the investor and the contractor.

b) For invested projects:

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- Written approval of contractor selection results under the provisions of the Bidding Law (including tendering, appointment of contractors, direct procurement, competitive offers, self-performance and selection of contractors in special cases, selection of contractor of architectural design consultation of construction works).

- Contract between the investor and contractor and documents attached to contract as prescribed by law (except for technical documents).

- Estimate and decision on estimate approval of the competent authority for each work, works item and works in case of appointment of contractor or self-performance and the work not done through contract (excluding projects technical and economic report).

3. Advanced capital:

The State Treasury shall make payment to the investor for advanced capital to contractor under contract or for implementation of necessary work. This must be specified in contract. The advanced capital shall be done after the contract takes effect. The rate, time and recovery of advanced capital must comply with each type of contract, specifically as follows:

a) Rate of advanced capital: complying with the provisions in Circular No. 86/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance regulating the management and payment of investment capital and non-business capital with investment nature of the state budget; official dispatch No.16989/BTC-DT dated December 13, 2011 of the Ministry of Finance on guiding the payment of investment capital from plan 2012 and amended and supplemented documents (if any);

b) Dossier for advanced capital: based on dossier and documents specified in Clause 2, Article 5 of this Circular and rate of advanced capital specified above, the investor shall prepare dossier for advanced capital for submission to the State Treasury, including:

- A written request for payment of investment capital (see Appendix No. 03 enclosed herewith).

- Documents of money transfer (under regulations of accounting document system of the Ministry of Finance);

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c) Recovery of advance capital:

- The advance capital is revoked through each time of payment of completed volume of contract, starting the recovery from the 1^st payment and finishing the recovery upon payment of volume completed 80% of contract value. The recovery of each time is agreed upon by the investor with the contractor and is specified in the contract.

- For compensation and assistance when the State recovers land:

+ For compensation and assistance: After making payment to the beneficiary, the investor shall gather vouchers and perform payment procedures and recover advance within 30 working days from the date making payment to the beneficiary.

+ For other work: the advanced capital is recovered in each payment period for completed volume and the recovery is finished upon the completion of compensation and assistance;

d) Investor and contractor shall calculate the rational advance, manage the use of advanced capital for the right purposes and subjects, effectively and repay the advanced capital as prescribed.

- Where the advanced capital not yet recovered but has not been used, if exceeding 06 months of the time limit for the volume to be done as specified in contract, but the contractor has failed to perform due to objective or subjective reasons or the contractor has used the capital improperly after being advanced with capital, the investor with the State Treasury shall recover and return the advanced capital to the State budget. Strictly prohibiting the advance of capital without using it or using it improperly;

- Where by the end of planning year, if the advanced capital has not been recovered completely due to unpaid contract reaching the prescribed percentage, the recovery shall be continued in the following year’s plan and not be deducted from the plan for payment of investment capital of the following year;

e) The State shall provide funds for the investor to make payment of advance in the planning year no later than December 21 (and by the end of January 31 of the following year if the advance payment is for carrying out site clearance). Investor may make payment of advance once or multiple times for a contract based on the demand for payment of advanced capital but not exceeding the advanced capital specified above. Where the capital plan is allocated with insufficient advanced capital, the investor shall be advanced for the plan of the following year.

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a) For work being done through contract: the contract payment must be in accordance with the type of contract, price of contract, and the terms and conditions of contract. The number of payments, payment period, time of payment, time limit for payment, payment records and payment conditions must be clearly stated in the contract, specifically as follows:

- For lump sum contract: making payment based on percentage (%) of the contract price or the price of works, work items, work load corresponding to the payment periods specified in the contract.

- For contract with fixed unit price: making payment based on the actual volume completed (including the increase or decrease of volume approved under the authority, if any) which shall be accepted and the unit price in the contract.

- For contract with adjusted unit price: making payment amount based on the actual volume completed (including the increase or decrease of volume approved under the authority, if any) which shall be accepted and the unit price has been adjusted as agreed upon in the contract.

- For overtime contract:

+ The cost for experts is determined on the basis of salary rate for experts and the related costs as agreed upon by the parties in contracts multiplied (x) by actual working time accepted (by month, week, date, time).

+ The costs other than the experts’ remuneration shall be paid by the method specified in the contract.

- For percentage contracts (%): making payment based on percentage (%) of the contract price. The percentage (%) for the times of payment shall be agreed upon by the contractual parties. When the contractor has fulfilled all obligations under the contract, the employer shall pay to the contractor the amount equal to the percentage (%) of the value of the volume or works or the value of work completed as specified in the contract.

- For contract with combination of types of contract price: the payment is made similarly to the types of contract specified above.

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+ Where the generated volume of work is greater than 20% of corresponding volume of work specified in contract or the generated volume has no unit price in the contract, the payment is made on the basis of parties’ agreement to determine the new unit price in the principle of agreement in the contract for the generated volume.

+ Where the generated volume of work is smaller than or equal to 20% of corresponding volume of work specified in contract, the unit price in the contract shall apply including unit price adjusted under agreement of contract (if any) for payment.

+ For contract with fixed unit price and overtime contract, when the price of fuel, materials and equipment of which the State has applied the measures of price stabilization as prescribed by the Ordinance on Price unusually changes or when the State changes policies on tax and salary directly affecting the price of contract, the payment shall be made on the basis of adjustment of unit price if permitted by the investment-deciding level and contracting parties;

+ For contract with adjusted unit price, the unit price in contract shall be adjusted for volume of work of which the unit price shall be committed for adjustment by the employer and contractor at the time of contract signing due to price slippage after a definite time after the contract is valid.

+ For lump sum contracts and percentage contracts (%): Where there is work generated outside the signed contract (for contract of construction performance, it is the volume of work beyond the scope of work to be done as designed; for consultation contract, it is the volume of work beyond the consultation duties to be done). In this case, when adjusting the volume without changing investment objectives or without exceeding the total of investment approved, the investor and contractor shall calculate, agree and sign contract appendix; where performing work exceeding total investment approved, there must be consideration and decision from the person having the authority to make decision on investment; where there is a failure to reach an agreement, that volume of work generated shall form a new tender package. The selection of contractor to perform this tender package is done under current regulations;

- Payment dossier: when there is volume of work accepted under payment period and payment conditions in the contract (or additional contract), the investor shall prepare the payment dossier to be sent to the State Treasury, including:

+ Sheet of determination of value of volume of work completed to request the payment (under Appendix No.04 issued together with this Circular).

+ Written request for payment of investment capital (under Appendix No.03 issued together with this Circular).

+ Documents of money transfer (under regulations of accounting document system of the Ministry of Finance);

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- For the self-employed work and management of project directly done by the investor...the payment is consistent with each type of work, on the basis of reports on volume of work completed and estimate approved for each work. The payment dossier includes list of volume of work completed and estimate approved for each work; a written request for payment of investment capital or advance (if any) and document of money transfer.

- For the cost of compensation or assistance when the State recovers land, the payment dossier includes: list determing the compensation and assistance done (under Appendix No. 05 issued together with this Circular); a written request for payment of investment capital or advance (if any) and document of money transfer.

5. For tender package carried out by communal people:

- For tender package with simple techniques, the volume of work mainly uses manual labor and the communal people can do it, then the investor shall report to the person in charge of approving the investment project to deliver it to the communal people for performing and taking responsibility before law. Implementing this method, the investor shall directly sign contract with the communal people throughm their representatative (selected by communal people taking part in the construction; the representative may be the group, team of construction or group of people with one responsible person). When applying this method, there must be the supervision of the investment supervisory Board of community.

- Intial basic dossiers and documents of this method: in addition to the provisions specified in Clause 2, Article 5 of this Circular, the investor shall supplement the written approval from the investment decider on investment to permit the communal people to perform the project by themselves

- Dossier for capital advance and payment for volume of work completed shall comply similarly with the provisions of Clause 3, 4, Article 5 of this Circular.

- The tender package done by the communal people shall be advanced by 50% of contract value maximally without excess of investment capital plan annually allocated for the tender package. The advanced capital is recovered from the payment of first volume of work completed and fully recovered upon payment of volume of work completed by 80% of contract value.

- Based on the contract and volume of work completed and accepted, the investor shall prepare dossier for advance (or payment) sent to the State Treasury for advance (or payment) to the representative;

Where the representative has no account: the investor shall request the State Treasury to make payment in cash. The representative shall make direct payment to the people taking part in performance of tender package. The investor and investment supervisory Board of community shall closely supervise the payment of remuneration to the communal people;

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6. The annual capital plan of project is only paying the volume of work completed and accepted to December 31 of planning year, the time limit for paying the volume of work completed is by the end of December 31 of the following year (including the payment to recover the advanced capital) excluding projects permitted by the competent authority to extend the implementation and payment.

The capital paid to the investment projects in the year (including the payment of advance and volume of work completed) shall not exceed the annual capital plan allocated for the investment projects.

The capital paid for each content of work and work items must not exceed the approved estimate or price of tender package. The total capital paid for investment projects must not exceed the total investment approved;

7. Time limit for preparing dossier for payment and time limit for payment:

a) Time limit for preparing dossier for payment: within 03 working days, after fully receiving valid dossier for payment (or advance) from the contractor, the investor must complete the procedures for payment (or advance) and transfer dossier for payment (or advance) to the State Treasury (where account is opened);

b) Time limit for payment: based on the dossier for payment (or advance) sent by investor (under Clause 2, 3, 4 and 5, Article 5 of this Circular); within 07 working days in case of “control first and pay later” and within 03 working days in case of “pay first, control later” (from the date of complete receipt of documents), basis of contract (or approved estimate for work not done through contract); the State Treasury shall control the payment (or advance) of capital to the investor and at the request of investor to make payment (or advance) to the contractors, the units concerned while recovering the advanced capital (if any);

8. The State Treasury shall control the payment as follows:

On the basis of dossier for payment from the investor, the State Treasury shall, on the basis of payment terms specified in the contract (number of payment, payment period, time of payment and payment conditions) and value of each time of payment to pay to the investor. The investor shall take responsibility for the accuracy and legality of volume of work done, norm, unit price, estimate of types of work and quality of works. The State Treasury shall not take responsibility for these matters. The State Treasury shall make payment under the contract on the basis of payment dossier.

The State Treasury shall control the payment in the principle “pay first, control later” for each time of payment and “control first, pay later” for the last time of payment of contract. Based on this principle, the State Treasury shall give specific instructions of method of payment control in the State Treasury system ensuring to create favorable conditions for the investor and contractor and in accordance with regulations of the State .

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1. Settlement of annual investment capital:

Complying with the provisions of the Law on State Budget and guidance of the Ministry of Finance (in the Circular No. 210/2010/TT-BTC dated December 20, 2010 regulating the settlement of construction investment capital under the State budget funds by annual budget year and Circular No. 108/2008/TT-BTC dated November 18, 2008 on processing the year end budget and preparing report on annual State budget settlement) and documents modified, supplemented or replaced (if any);

2. Settlement of completed projects

a) All investment projects under the authority of the investment decision of communal People's Committees and the projects assigned to communal People's Committees as investor by the higher-level competent authority, upon completed, handed over and put into use, must be prepared with settlement report and the settlement of completed project investment capital must be verified and approved in accordance with current regulations on financial management and specific regulations in this Circular.

b) Dossier for settlement of completed works construction investment projects includes the forms of report on settlement of completed project investment capital accompanied with relevant legal documents under the Form No. 01/QTDA and 02/QTDA (method of preparation of settlement report is guided in Appendix No. 1 issued together with this Circular).

c) Verification of settlement of completed projects:

- When the projects of works investment construction has been completed, handed over and put into operation, within 03 month, the investor must complete the preparation of report on settlement of completed project investment capital. Within 02 months, the fundtional unit under the management of the investment decider must finish the verification and report on settlement of completed project investment capital for submission to the investment decider to approve the completed project investment capital settlement;

- Where the functional unit under the management of the investment decider is not qualified for verifying the report on settlement of completed project investment capital; the investor shall report to the investment decider to select one one the following forms:

+ Hiring an independent audit organization to audit the report on settlement of completed project investment capital.

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In case of necessity, the person having the authority to approve the settlement shall decide to establish a settlement verifying Team to implement the verification before the approval of settlement. The composition of settlement verifying Team includes the members of units concerned;

- The contents of verification of report on settlement of completed project investment capital (audit) and the contents of result of verification of completed project investment capital settlement (report on auditing result) under Appendix No. II issued together with this Circular;

d) Rate of cost of verification and approval of report on settlement and audit of completed investment project:

- Organizations and units verifying, approving and auditing the report on settlement of completed project investment capital shall be entitled to the cost of verification and approval of report on settlement of completed project investment capital according the norm of cost as follows:

+ Norm of cost of auditing the report on settlement of completed project investment capital: calculated by 0.64% value of total investment of investment projects plus value added tax (1,000,000 dong minimally). The auditing contractor shall take responsibility for the contents and auditing value of projects under its implementation.

+ Norm of cost of verification and approval for report on settlement of completed project investment capital: is calculated by 0.38% of value of total investment of investment project (500,000 dong minimally).

- For projects with the total investment approved (or adjusted) greater than 05 billion dong, the time for preparation, approval and norm of cost of audit, verification and approval for report on settlement of completed project investment capital shall comply with the provisions in Circular No.19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance regulating the settlement of completed projects under the state funds and documents amended and supplemented (if any).

- Where projects have capital structures of equipment accounted for 51% or more compared with the total investment, the norm of cost of verification and audit costs shall be calculated by 70% of the norm mentioned above;

- Where the projects have been audited with settlement report, the norm of cost of verification is calculated by 50% of the norm mentioned above;

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When verifying, the agency in charge of verification shall request in writing the investor to make payment of settlement verification and approval in accordance with the rate specified above, the use of these costs shall be decided with responsibility by the agency in charge of verification. The costs for the settlement verification and approval include:

- Payment of remuneration for the members directly verifying and approving the settlement under the package or time specified by the verifying agency.

- Payment for experts or consulting organizations performing the settlement verification of project as requested by the agency in charge of settlement verification and approval (if any) under the package or time specified by the verifying agency.

- Payment for travel expenses, stationery, translation, printing, conference, workshop, purchase of computer or equipment to serve the settlement verification and approval and other expenses.

Where the expenses of settlement verification and approval have not been used up in the year, they shall be carried forward to the following year for implementation as prescribed;

e) The expenses of settlement verification and approval, the auditing expenses of report on completed investment project are included in other expenses in the value of investment capital settlement of project;

g) Approval for settlement of completed project investment capital:

On the basis of report on result of settlement verification (report on audit result) of completed project investment capital of verifying organizations and units, the investor shall examine and request the investment decider to approve the settlement of completed project investment capital;

The decision to approve the settlement of completed project investment capital must be publicly posted at the head office of communal People’s Committees and sent to the following agencies and units:

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- State Treasury (where accounts are opened).

- District Financial and Planning Division

- Community investment supervision Board

The dossier for settlement of completed project investment capital is prepared and stored under the regulations on dossier storage;

Article 7. Cost of supervision of community investment supervision Board

The investment projects under management and investment decision of communal People’s Committee are supervised during their implementation. The investment supervision of community investment supervision Board shall comply with Decision No. 80/2005/QD-TTg dated April 18, 2005 of the Prime Minister on issuing Regulation on community investment supervision

The community investment supervision Board is established and carries out functions and duties under the provisions of Decision No. 80/2005/QD-TTg dated April 18, 2005 of the Prime Minister of Joint Circular No. 04/2006/TTLT-KH&DT-UBTUMTTQVN-TC of the Ministry of Planning and Investment, the Standing Committee of Central Committee of the Vietnam Fatherland Front and the Ministry of Finance guiding the implementation of the Regulation on supervision of community investment.

The operational costs of the community investment supervisory Board shall comply with the provisions of Part IV of Joint Circular No. 04/2006/TTLT-KH & DT-TC-UBTUMTTQVN mentioned above.

In case of small investment projects (with value of less than 500 million dong) with simple technical design but the investors are not capable of supervising the works construction and cannot hire the works construction supervision consultant, the investor shall propose the investment decider to require the community investment supervision Board to supervise the construction. In this case, the community investment supervision Board shall be entitled to the norm of cost of construction supervision, not exceeding the maximum norm of supervision of construction works regulated by provincial People’s Committees. If the provincial People’s Committees have not regulated the norm of supervision of construction works, the norm announced by the Ministry of Construction shall be applied;

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1. Regulations on report:

- Every 6 months and a year, the communal People's Committees shall make report on the implementation of volume and investment capital paid (Form No. 04/BC-THKH issued together with this Circular) and reports on the settlement of investment capital of completed projects under their management (Form No.03/THQT issued with this Circular); send report to communal People's Council (if any), the community investment supervision Board and district investment community and district Financial and Planning Division. The biannual report shall be submitted before July 10 and January 15 of the following year for annual report.

The contents of report must analyze and assess the implementation of plan, investment result in the period, use of capital, existing issues and propose handling measures.

- Based on the report on investment implementation from the communal People’s Committee, the district Financial and Planning Division shall prepare the general report for submission to district People’s Committee and propose the handling measures of existing issues (Form No. 05/BC-THKH issued together with this Circular).

2. Inspection: Regularly or irregularly. The district Financial and Planning Division shall organize the inspection or propose the community investment supervision Board to inspect, supervise and assess the investment projects managed by communal People’s Committee on the use of capital, progress of implementation of investment project and compliance with policies and regulations on finance and construction investment of the State.

Article 9. Responsibility and power of agencies concerned

1. People’s Committees of provinces and centrally-affiliated cities:

- Perform the decentralization (or authorization) of decision on approving investment projects to communal People’s Committee based on the current regulations and specific conditions of localities;

- Direct district People’s Committee and functional agencies under their management to guide the communal People’s Committee to manage investment projects in accordance with regulations of the State and provisions in this Circular;

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Perform the state management on management of works construction investment projects; direct functional agencies under their management to cooperate and assist the communal People’s Committee to manage the works construction investment projects under the current regulations of the State and provisions of this Circular.

3. District Financial and Planning Divisions:

- Make report on implementation of investment plan as prescribed;

- Cooperate with functional agencies to guide and inspect the investors, State Treasury and contractors performing projects to comply with the regulations and policies of finance and development investment, the management and use of investment capital and payment of investment capital in order to have the measures to handle violations.

- Have the right to request the State Treasury and investor to provide documents and information necessary for the state management on finance and development investment, including documents for annual investment capital plan, documents reporting the implementation of plan and investment capital in accordance with regulations on information and reports and documents for verification of investment capital settlement as prescribed;

- Verify the report on settlement of completed project investment capital under the authority of investment decision of communal People’s Committee (upon requested in writing);

4. Communal People’s Committees:

- Manage the projects of works construction investment in accordance with regulations on management of projects of works construction investment and guiding documents of competent state authorities;

- Make a decision on approving investment projects and settlement of completed project investment capital for investment projects decentrailized in accordance with regulations on management of works construction;

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- Perform the regulations on report and settlement of project investment capital as prescribed;

5. Investors:

- Perform power and obligations under current regulations of the State on investment and construction management assigned as prescribed. Properly comply with regulations of law on management of finance and development investment;

- Accept the volume of work, prepare payment dossier and payment request for contractors at the time prescribed in the contract.

- Take responsibility for the accuracy and legality of volume of work done, norm, unit price, estimate of types of work, quality of works and value requested for payment; ensure the accuracy, truthfulness and legality of data and documents in dossier provided to the State Treasury and functional agencies of the State;

- Make timely and complete report as prescribed to the investment-deciding agency and state agencies concerned; fully provide dossiers and documents and status as prescribed for State Treasury and financial agencies for management and capital payment; be subject to the inspection of financial agencies and investment-deciding agencies on the use of investment capital and compliance with policies and regulations on finance and development investment of the State;

- Be requested for payment of capital upon meeting all conditions and request the State Treasury to answer and explain the unsatisfactory contents in controlling the payment of capital.

- Take responsibility for preparing the report on settlement of completed works construction investment capital for submission to the investment decider for approving the completed works construction investment capital. After 06 months after the decision on approval for settlement of completed projects, the investor must complete the settlement of liabilities and procedures for settlement of investment account of the projects (works) at the agency paying investment capital.

6. Community investment supervision Boards:

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- Summarize the opinions of community and state management agencies concerned, the reports of investors and contractors, propose the measures to settle issues of which the community has questions.

- Inform the community and agencies concerned of decision of competent authority for issues of which the community has questions.

7. For contractors:

- The contractors shall implement their activities in accordance with the contract signed and regulations of law.

- With the investor, thoroughly finish the existing issues in accordance with the contract signed. Fully and promptly return the amount of capital paid excessively by the investor compared with the value of settlement approved

8. State Treasury:

- Implements the control and payment of investment capital under regulations of the State and provisions in this Circular; confirms the capital paid; gives opinions of status of payment and settlement of annual investment capital for each investment project under regulationson settlement of state budget.

- Guides and provides the rate of foreign currency exchange accounting monthly announced by the State Treasury for the investor for the accounting of revenues in foreign currencies.

- Summarizes and makes report on settlement of investment capital under the state budget funds and other funds of which the State Treasury controls the payment; sends report to the district Finance-Planning Division and communal People’s Committee (section under commune’s management);

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- Cooperates with the investor to recover the amount of capital paid to individuals and units excessively compared with the value of settlement approved; urges, guides and cooperates with the investor to settle liablilities to complete the payment and final settlement of projects approved for settlement;

Chapter III

IMPLEMENTATION PROVISION

Article 10. Effect

1. This Circular takes effect on April 10, 2012 and supersedes Circular No. 75/2008/TT-BTC dated August 28, 2008 of the Ministry of Finance guiding the management of investment capital under the budget capital of commune, ward and town.

2. Any difficulty arising duing the implementation of this Circular should be promptly reported to the Ministry of Finance for amendment and supplementation accordingly.

FOR THE MINISTER
DEPUTY MINISTER




Pham Sy Danh

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ATTACHED FILE

Thông tư 28/2012/TT-BTC quy định về quản lý vốn đầu tư thuộc nguồn vốn ngân sách xã, phường, thị trấn do Bộ Tài chính ban hành