Circular No.19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance on defining on settlement of completed projects subject to state fund

CIRCULAR

DEFINING ON SETTLEMENT OF COMPLETED PROJECTS SUBJECT TO STATE FUND

Pursuant to Decree No.118/2008/ND-CP dated 27/11/2008of the Government providing functions, duties, powers and organizational structure of the Ministry of Finance;

Pursuant tothe Regulations of Management of Investment and Construction issued together with the Decrees No.: 52/1999/ND-CP dated 08/7/1999, No.12/2000/ND-CP dated 05/5/2000, No.07/2003/ND-CP dated 30/01/2003 of the Government;

Pursuant to Decrees of the Government: No.12/2009/ND-CP dated 12/02/2009 on Management of Investment Projects and Work Construction; No.83/2009/ND-CP dated 15/9/2009 on amending, supplementing a number of Articles of Decree No.12/2009/ND-CP on Management of Investment Projects and Work Construction; No.112/2009/ND-CP dated 14/12/2009 on Costs Management of Investment and Work Construction, No.48/2010/ND-CP dated 07/5/2010 on Contracts in the construct activities;

The Ministry of Financedefines on settlement of completed projects subject to state fund as follows:

Part I –

GENERAL PROVISIONS

Article 1. Object and scope of governing

1.The investment projects using state fund, including the State budget capital, investment credit capital for development of the State, bond capital (government, local government), credit capital guaranteed by the State, capital for investment and development of the state corporation, one member limited liability company, after completion (or permanent suspension of the implementation) are required to settle under the provisions of this Circular.

2. The projects decided on investment by the Presidents of the People s Committees of communes, wards and townships and projects assigned by the competent authorities the People s Committees of communes, wards and townships acting as investors comply with the Circular of the Ministry Finance guiding capital management of basic construction investment of communes, wards and townships; not applying to this Circular.

Article 2.Investment capital which is settled is all lawful expenses made in the investment process to put the project into exploitation and use. The lawful expenses are expenses made within the design, cost estimates approved, including the part to be adjusted, supplemented in accordance with the signed contract complying with the provisions of law. For the projects using State budget capital, the investment capital to be settled must be located within the limit of total approved investment (or adjusted) by decision for approval of the competent authorities.

Article 3.Settlement reports of completed projects must be determined fully and accurately the total cost of the investment made; clearly defined investment capital source, investment costs allowed not including in the value of assets created through the investment in project assets; the value of assets created through investment in project: fixed assets, current assets, and also be ensured the content, the time to make as prescribed.

Article 4.For the projects of national importance, Group A projects, programs and projects including multiple component projects or independent subprojects (having decision approving the project or technical economic reports of separate work construction), each component project or independent subproject are made the settlements, verification and approval of the settlements as an independent investment project in accordance with this Circular. After the entire project of national importance, the group A project, the project program are completed, the investor (or investment management owner in case of having many investors of the component projects) synthesizes the results of settling the entire project to report to the competent authorities for approval; it is not required to audit settlement, verify, and approve resettlement of the component projects or sub-projects that have been verified and approved according to regulations.

Article 5.For projects with multiple work items, depending on the size, nature and duration of work construction, the investor can make settlement, verify and approve the settlement of investment capital of construction for each work item or each independent bidding package right after the work item, independent bidding package was completed and put into use at the request of the investment decision-maker. The value of the settlement proposal of work item includes construction costs, the cost of procurement and installation of equipment and other expenses directly related to that item. After the entire project is completed, the investor totally settles the entire project and determines the allocation level of overall costs of the project for each item of work under the project submitting to the competent authority for approval; not re-verifying the work items, independent bidding package which have been verified and approved according to regulations.

Article 6.For the investment projects using foreign capital (loans and aid from foreign governments, organizations, and foreign individuals) when completed, to make settlement in accordance with provisions of this Circular and the relevant provisions of international agreements (if any).

Article 7.For a program, project using official development assistance capital (ODA) that can include content of work construction investment and technical support content, shall settle as follows:

- If the costs of work construction investment account for more than 50% of total ODA capital, shall settle in accordance with provisions of this Circular;

- If the cost of work construction investment making up a proportion of less than or equal to 50% of total ODA, shall settle according to the specific provisions of the accounting regime for the administrative units. In this case, if there are sub-projects of work construction or work construction components settled independently, then the settlement shall be made in accordance with provisions of this Circular.

Article 8.For the projects of Vietnam representative offices in foreign countries, projects having confidentiality requirements of national security, the projects buying the copyright licenses, the settlement of the completed projects are made according to the sole discretion of the Prime Minister on the basis of proposals and recommendations of agency having the projects.

Article 9.Through the settlement of completed projects to evaluate the result of investment process, determine the production capacity, the increased new property value brought by investment, clearly determine the responsibilities of investors, contractors, agencies of funding, loan, payment control, the concerned state management agencies; at the same time to draw experience to constantly improve the mechanism of state policy, improve the effect of management of investment capital in the whole country.

Part II –

SPECIFIC PROVISIONS

Article 10.The contents of the settlement report

1. Investment capital source in the project implementation is the actual value paid through the agency controlling funding, payments, and loan to the date of closing settlement statements (details for each investment capital source).

2. Investment cost proposed for settlement detailed according to structure: construction, equipment, compensation for site clearance, project management costs, consultancy costs, and other expenses; detailed according to items, bidding package or item of investment costs.

3. Determining the cost of investment suffered a loss not included in the value of assets created through investment.

4. Determine the number and value of assets created through the investment of the project, work or work items; detailed according to groups, type of fixed assets, current assets under the actual cost. For the projects or independent work put into operation, use with the period of investment of more than 36 months from commencement date to the date of acceptance test and handover to put into operation and use, if necessary, the person who approves the settlement decides the conversion of investment capital to the price at the time of handover to put into operation, use.

- The allocation of other costs for each fixed asset is determined according to the principle: direct cost related to a certain fixed asset shall be calculated for such fixed asset; general expense related to the many fixed assets is distributed according to rate of direct cost of each fixed asset compared with the total direct cost of all fixed assets.

- If the assets are handed over to different units to use, determine the full list and the value of assets handed over to each unit.

Article 11.Form of settlement report

1. For the projects completed or permanently suspended the implementation: including Forms No. 01, 02, 03, 04, 05, 06, 07, 08/QTDA together with this Circular.

2. For work items completed: including the Forms No. 01, 02, 03, 04, 05, 06/QTDA together with this Circular.

3. For the planning projects using development and investment capital source and costs for preparation of the investment of the project canceled by decision of the competent authority: including the Forms No.: 07, 08, 09/QTDA enclosed with this Circular. For planning projects using economic administrative expenditure shall conduct the settlement as stipulated in Circular No.24/2008/TT-BTC dated 14/3/2008 of the Ministry of Finance guiding the management, use and payment and settlement of economic administrative expenditure performing the tasks, planning projects and the documents amended, supplemented or replaced (if any).

4. Places to receive settlement statements:

- The agencies of verification and approval of the settlement;

- The direct superiors of the investors (if any);

- The agencies of financing, loaning, payments (to confirm the amount of capital granted, controlled the loans, payment control).

Article 12.Dossier submitted for approval of settlement

(including 01 set sent to the agency of verifying the approval of the settlement)
1. For projects, works, work items completed or permanently suspended the implementation:

1.1. Written request for approval of the settlement of the investor (the original);

1.2. Settlement reports of completed projects as stipulated in Article 11 above (the original);

1.3. The relevant legal documents according to Form No.02/QTDA (original or copy);

1.4. The contracts, contract liquidation minutes (if any) between the investors and the contractors to implement the project (the original or copy);

1.5. The minutes of acceptance of finished parts of the work, the period of works construction, acceptance of equipment installation; Minutes of acceptance of finished projects, work items to put into use ( original or copy);

1.6. All the settlements of AB volume (the original);

1.7. Report the results of the settlement audit of the completed project (if any, the original); together with the acceptance minute of audit reports, and documents of the investor on the audit results: the consistent contents, inconsistent contents, and proposals;

1.8. Conclusions of inspection, inspection minutes, audit reports of the agencies: Inspection, Examination, State Audit (if any) together with report on the Execution of the above reports of the investors.

During the verification, when the settlement verifying agency sends a written demand, the investor shall present the documents for the verification, settlement: as-built-document, the log of construction, tendering dossier, design estimates, supplementary estimates, and other related payment dossier, documentation.

2. For the planning projects using development investment capital source; investment preparation costs of the project canceled by decision of the competent authorities:

2.1. Written statement for approval of the settlement of the investor (the original);

2.2. Settlement report as prescribed in Article 11 above (the original);

2.3. A set of concerned legal documents (the originals or copies);

2.4. The economic contracts between the investors and the contractors; minutes of acceptance, contract liquidation (if any, the originals or copies).

During the verification, when the settlement verifying agency sends a written demand, the investor shall present the other documents related to the settlement of investment capital of project.

Article 13.Authority to approve, the settlement verifying agencies

1. Authority to approve the settlement:

1.1. For the projects of national importance and other important projects decided on investment by the Prime Minister:

- The Minister of Finance approves the settlement for the component projects using State budget capital; is authorized or decentralized the settlement approval for the projects under their jurisdiction;

- The investors approve the settlement of projects or component projects not using the state budget capital.

1.2. For the remaining projects: Those who decide on investment are the people who are authority to approve settlements of completed projects. Ministers, heads of ministerial-level agencies, governmental agencies, central agencies of mass organizations, the presidents of the People s Committees of provinces and cities under central authority shall authorize or approve the settlement for the projects of groups B, C for direct subordinate agencies.

2. Settlement verifying agencies of the completed projects:

2.1. For the projects using State budget capital of the province or city under central management: Department of Finance shall verify;

2.2. For the projects using State budget capital of district-level, cities under province’s management: Finance - Planning departments shall verify.

2.3. For the remaining projects: the people who are competent to approve the settlement allocate to the units having function under the management jurisdiction shall verify the settlement of the completed project prior to the approval.

Where necessary, those who are competent to approve the settlements decide on establishment of the verification groups to carry out verification prior to approval of the settlement; composition of the verification group including members of the relevant units.

Article 14.Settlement audit of the completed projects

1. When all important national projects, projects of group A, group B using state capital are completed, be they must audited, settled prior to being submitted to the competent authorities for verification and approval of the settlement; the remaining projects are conducted the audit of settlement at the request of the competent authorities.

2. The Investors select audit contractor in accordance with the law provisions on bidding, signing contracts of auditing settlement of completed project in accordance with the law provisions of contracts and acceptance of audit results.

In case of unable to select the audit contractor of settlement report, the investors report to the people who are competent to approve the settlement for considering, deciding the assignment to the direct verifying agency to verify the settlement.

3. Settlement auditing contractors must be the audit enterprises that were established and operating in accordance with the law provisions on the establishment and operation of enterprises in Vietnam and the provisions of Decree No.105/2004/ND-CP dated 30/03/2004 of the Government on independent audit, Decree No.30/2009/ND-CP dated 30/3/2009 amending and supplementing a number of points of Decree No.105/2004/ND-CP dated 30/3/2004 of the Government.

4. When the audit contractors perform the audit of settlements for the completed projects must comply with the audit standards, settlement reports of completed investment capital issued by the Ministry of Finance (Standard No.1000); when the audit ends, it must make the settlement audit reports of completed projects with sufficient contents specified in the audit standard of reports on the settlement of completed investment capital and the contents specified in Article 16 of this Circular. The audit contractors are responsible for the contents and audit value of the projects made by them.

5. When the State auditing agency conducts audit for the settlement report of completed projects or regular audit according to the schedule to implement the project for the volume value of the completed items of the project:

5.1. Where the contents of audit report of the State Audit are ensured all the information as stipulated in Article 16 of this Circular, the agency presiding the verification of the project settlement is used the results of the audit reports of the State auditing agencies as a basis for verification, not required to hire independent audit to audit settlement for the projects. The State auditing agencies are responsible for the contents and audit value of the projects made by them.

5.2. Where the contents of audit report of the State Audit are not insufficient as stipulated in Article 16 of this Circular, the investors select contractors of independent audit to perform the additional audit of contents that the State auditing agency has not done. Additional audit costs are determined similar to determination of audit costs for the work items, bidding packages in the project at point 1.3, Clause 1, Article 18 of this Circular. The agencies presiding verification are used the results of the audit report of the State auditing agencies and the audit report results of the independent audit as a basis for verification of project settlement. The State auditing agencies and the independent audit organizations are responsible for the contents and audit value of settlement report made by them.

Article 15.Verification of settlement for projects audited the settlement report
Based on the results of the settlement audit report of completed projects; agency (unit) presiding over the settlement verification shall verify according to the following contents:

1. Verify the compliance with audit standards of settlement report of completed investment capital of the audit result report, compare the contents of audit result report of the completed projects with the contents specified in Article 16 of this Circular, if having not enough contents as stipulated, the verification agency may request the auditing unit to re-audit or conduct additional audit. When the state auditing agencies audit the settlement reports of the completed projects, the settlement verifying unit shall not be required to verify this content.

2. Verify the application of legal documents, the legal bases used by auditors to audit the projects.

3. Consider the recommendations, the contents of different points of views between the investors and the auditing units.

4. Consider the execution of investors and related units for the conclusion of the agency of inspection, examination, State Audit (if any).

Article 16.Settlement verification for the projects not audited settlement report

The verification agencies shall verify and make report of the results of settlement verification of completed projects according to the following order:

1. For projects, works, work items completed:

1.1. Verification of legal documents:

- Verification of the compliance with order and procedures of investment and construction in accordance with the law provisions on investment and construction.

- Verification of the compliance with order and procedures for contractor selection in accordance with the law provisions on bidding.

- Verification of the legality and form of the price of the contracts signed by the investor and contractors (consultancy, construction, supply of materials and equipment) to implement the project.

1.2. Verification of the investment capital resource of the project:

- To compare the amount of capital granted, loaned, paid which is reported by investor with the number certified by the concerned agencies granting capital, lending, making payments to determine the actual investment capital performed.

1.3. Verification of investment costs:

The investment costs of the project can be done by two methods:

- The investors (project management unit) self-make;

- The contractors shall perform according to the contract.

1.3.1. Verification of the works self-performed by the investors (project management unit):

The works self-performed by the investors (project management) include items on costs of the project management cost and the bidding packages that investors are allowed to self-perform in accordance with the law provisions on bidding. Upon examination, it should:

- To compare the contents of work, the volume (quantity) in the value table proposed for settlement of the investors with work contents, volume (quantity) in the acceptance minutes completed;

- Compare the unit prices in the value table proposed for settlement of the investor with the unit prices in the approved estimates to ensure the compliance with norms and unit prices of the State or in accordance with principles establishing norms and unit prices under regulations of the State.

Thereby determine the settlement value of the work or bidding package self-made by the investors (project management unit).

1.3.2. Verification of the works done by the contractors according to the contract:

Depending on the characteristics and nature of the project, construction work; with all kinds of contracts in construction activities; the parties to the contract must agree the price of construction contract (regardless selection form of contractors) following one of the forms of contract prices as follows:

- Package contract price;

- Contract prices based on fixed unit price;

- Contract prices based on adjusted unit price;

- Contract prices over time;

- Contract price based on a percentage (%).

a) Verification for the contracts in the form of "Package contract price":

To compare the requirements, work content, volume, unit prices in the value table AB proposed for settlement with the requirements, work content, the volume, and unit prices specified in the contract, the value table of contracts and documents thereto. Thereby determine the value of the contract settlement.

When the contractor fulfills the requirements, work content, proper volume, and unit price as specified in the contract, the value table of the contract; then the settlement value shall be equal package value of contract signed. Not discounting the volume and detailed unit price that has been approved by the competent authority as decided by the successful bidding.

b) Verification for contracts in the form of "contract price as fixed unit price":

 - To compare the done volume acceptance minute to verify performance requirements, work content, the volume made in the value table AB proposed for settlement;

- To compare the unit prices in the value table AB proposed for settlement with fixed unit price stated in the table of contract price and the documents thereto;

The settlement value is equal to the done volume that has been accepted in accordance with regulations multiplied (x) with fixed unit price specified in the contract.

c) Verification for contracts in the form of "contract price by adjustment price":

Based on the specific conditions of the contract, clearly identify the scope, principles, and methods of adjustment of the contract. In case of adjusting volume, it must be based on the volume acceptance minute to verify the volume. In case of adjusting unit price, it must be based on the principle of adjustment of unit price stated in the contract.

d) Verification for contracts in the form of "contract price by time":

Contract prices by time is determined on the basis of remuneration for experts and other expenses other than remuneration for experts and working time calculated according to months, weeks, days, hours.

- To determine the remuneration payable to the contractor, compare unit price of remuneration in the value table AB proposed for settlement with the remuneration unit price by time agreed by the investor and contractor in the contract multiplied (x) with actual working time based on the acceptance Minute of the actual working time or the working schedule (in months, weeks, days, hours);

- To determine the other costs other than remuneration payment, such as travel, survey, office rent and other reasonable expenses; compare with the regulations on the payment method specified in the contract:

+ Where the contract provides for payment by actuality: compare the settlement list with the documents, the actual invoice in accordance with the State regulations;

+ Where the contract provides for a lump sum payment: settle according to the package rate agreed in the contract.

- In the course of performance, if there is any work arising needed to have additional experts that there is no remuneration in the contract for these experts, the parties must negotiate and agree remuneration rate before implementation, then settlement dossier must be included the value table of the works generated outside the scope of work required to perform under the contract (certified by the parties: principal or consultancy representative, if any, and the contractor).

đ) Verification for contracts in the form of "contract price by a percentage (%)":

Contract price by a percentage (%) is calculated by a percentage (%) of value of the work or the value of the workload. When the contractor has completed all obligations stated in the contract, the value of the contract settlement in percentage (%) is determined on the basis of the percentage (%) agreed by the two parties in the contract multiplied with (x) the value of the work or corresponding workload values stipulated in the contract by the two parties.

e) Verification for the contract with many works corresponding to the types of contract prices (combined contract) must clearly identify the scope by work, work items or specific work content applied form of specific contract price: Package, fixed unit price, adjustment price, time, percentage (%).

The verification of each part of the contract, following each form of the contract price, corresponding to provisions in the cases a, b, c, d and đ of section 1.3.2, point 1.3, clause 1, Article 16 above.

1.3.3. Verification of the cases arisen:

a) Where there are some certain items or work contents in the contract that are not performed, the corresponding value of the contents under the contract shall be deducted;

b) Where having the volume of non-performance or the volume to be accepted lower than those in the table of the contract price, then shall be reduced the volume of non-performance (or performed lower) multiplied (x) with corresponding unit prices specified in the contract;

c) Where having the work generated at the request of the investor, within the contract, the volume generated less than or equal to 20% of the corresponding workload stated in the contract, plus (+) volumes arising accepted multiplied (x) with corresponding unit prices specified in the contract;

d) Where having the work generated at the request of the investor, within the contract, the volume generated more than 20% the corresponding volume of work specified in the contract or the amount arising that having no the unit price in the contract, plus (+) volumes arising accepted multiplied (x) with adjustments unit price approved by investor according to the principle of adjustment of unit price of volumes arising stated in the contract;

e) Where having the work generated at the request of investor, beyond the contract scope, shall verify according to the supplementary estimates approved by the investor together with additional contract on this generated value.

1.3.4. The selection of contract form, adjustment of contract price, adjustment of unit price in the construction contracts must comply with the provisions in Decree of the Government on construction contracts. Particularly for the projects using State budget capital, it shall also comply with the form of contract, conditions governing the contract price, of contract price adjustment recorded in the successful bidding decision of the competent person.

1.4. Verification the investment cost of damage not included in the value of assets:

- Investment costs for damage caused by natural calamities, enemy-inflicted destruction, and other force majeure reasons shall not be insured;

- Investment costs for the workload canceled by a decision of the competent authority.

1.5. Verification of the value of assets created through investment: to verify the number and value of assets according to two categories: fixed assets and current assets; original price (unit price) of each group (type) of property under actual expenses and by the conversion price to the time of handover of assets into production and use.

1.6. Verification of the debt situation, materials and equipment in stock:

- Based on the results of verification of investment costs, report the situation of payments to the contractor of the investor for verification of the project debt;

- Based on actual receipt and use of materials and equipment of the project to determine the quantity and value of materials and equipment in stock, propose the treatment plan;

- Based on the minutes of inventory, assessment of assets for the projects management to the date of making settlement reports, determine the quantity and value of remaining assets to transfer to the unit for using or processing according to the provisions.

1.7. Consider the execution of investor and related entities for the conclusion of the agencies of inspection, examination and the state audit (if any).

1.8. Remarks, valuation and recommendations:

- Remarks, valuation of the observance of the provisions of the state of investment management, construction and bidding; the management of investment expenses, management investor s investment assets; responsibilities of each level for the management of investment capital in projects;

- Recommendations on the settlement value and handling of related issues.

2. For planning project completed and costs for preparation of investment of the projects canceled by decision of the competent authority:

2.1. Verification of legal documents of the project;

2.2. Verification of investment capital source for implementation;

2.3. Verification of the investment costs detailing each item of expense arising compared with the approved estimates, regulations and standards and norms of the state;

2.4. Verification of the debt situation of the project;

2.5. Verification of quantity and value of assets created through investment (if any).

Article 17.Approval of the settlement

1. Based on the reports of results of verification; person who is competent to approve the settlement shall consider and approve the settlement of the completed project as prescribed;

2. Decision approving the settlement of the completed project is sent to the following agencies, units:

- Investors;

- The superior management agency of the investor;

- The agencies of financing, loans, payment;

- Ministry of Finance (for group A projects invested by State Budget capital).

Article 18.The expenses for verification and approval of the settlement; independent audit

1. Determination of the cost of verification and approval of the settlement, independent audit costs:

The cost norms of verification and approval of the settlement and cost norm of audit of completed projects are determined on the basis of the approved total investment amount (or adjusted) of the specific project and the rate specified in the costs norm table for verification and approval of the settlement, audit costs hereunder:

1.1. The cost norm of verification and approval of settlement (denoted as K TTPD) and the audit costs (denoted as KKT) of completed project is determined according to the following general formula:

In particular:

+ Ki: The cost norm corresponding to the project needed to calculate (unit:%);

+ Ka: The cost norm corresponding to the upper bound project (unit:%);

+ Kb: The cost norm corresponding to the lower bound project (unit:%);

+ Gi: The total investment amount of the project needed to calculate, unit: billion dong;

+ Ga: Total investment amount of the upper bound project, unit: billion dong;

+ Gb: Total investment amount of the lower bound project, unit: billion dong.

1.2. The expenses for verification and costs hiring audit of the project are determined by the following formula:

(a) The maximum verification cost = Ki-TTPD% x total investment amount

(b) The maximum auditing cost = Ki-KT% x Total investment amount + VAT

(c) The minimum verification cost is five hundred thousand dong; minimum audit cost is one million plus VAT.

1.3. The expenses for verification and approval of the settlement, the cost of the audit of work items or bidding packages in the project are determined as follows:

1.4. Where the project having structure of equipment capital accounts for 51% or more compared with the total investment amount, then cost norm of the verification and audit cost norm is calculated by 70% of norm listed in the table above.

1.5. Where a project has been conducted the audit, the settlement report, the verification cost norm is calculated by 50% of the norm specified in the table above.

1.6. For the projects of national importance, Group A projects, programs and projects having subprojects or component projects decided its own investment, the costs for verification and audit costs are calculated as a single project.

1.7. For the projects or items of compensation and site clearance, the cost norm of the verification and audit cost norm are calculated maximum equal to 70% of the norm specified in the table above.

2. Management, use of cost of verification and approval of the settlement:

2.1-When performing the verification, verification presiding agency sends a written request to the investor for paying costs of verification and approval of the settlement according to the percentage specified in Clause 1, Article 18 above. The contents of payment for the verification and approval of the settlement include:

- Paying remuneration to members directly performing the verification and approval of settlement by the contracting rate or by the time defined by the verification agency;

- Paying to experts or consultancy organization verifying the settlement of project as required by the agency presiding the verification and approval of the settlement (if any) by the contracting rate or by the time defined by the verification agency;

- Expenses for travelling, stationery, translation, printing, conferences, seminars, procurement of computer, equipment for the verification and approval of the settlement and other expenses.

 2.2. Due to the conditions of collecting costs of verification and approval of the settlement depends on the allocation of additional capital plan of the projects, where the cost of verification and approval of the settlement have not used up in a year, it shall be permitted to transfer the next year to implement in accordance with regulations.

3. The expenses for verification and approval of the settlement, the cost of settlement report audit are included in other expenses in the settlement value of the project.

Article 19.Time for making settlement report for completed projects is calculated from the date of signing the minute of handover to put into use; audit period is calculated from the date of receipt of full audit records as prescribed; time for verification and approval of settlement is calculated from the date of the receipt of full settlement documents under the provisions of Item III, Part II of this Circular. The maximum time is specified as follows:

Article 20.Responsibility for the settlement of completed projects

1. Responsibilities of investor:

1.1. Making settlement reports of completed projects with all contents and ensuring the time prescribed in this Circular;

1.2. Submitting for approval, managing settlement records according to regulations; taking responsibility for the accuracy for the data, the legality of documents in the dossier for submission for settlement approval of completed project;

1.3. Providing for all documents relating to settlement of completed project as required by the verification agency (audit);

1.4. After 6 months since having the decision approving the settlement of the completed project, the investor must complete the debt settlement and conduct procedures of final settlement for investment accounts of the project (work) at the companies of payment, lending of investment capital.

2. Responsibilities of the contractors:

2.1. Conducting settlement for the value performing contracts signed with investor as prescribed. Completing settlement documents of performance responsibility and being responsible for the accuracy for the data and the legality of the relevant documents provided for the investor to make the settlement report of completed project according to regulations;

2.2. Along with investors to settle thoroughly the outstanding issues according to the contract signed. Refunding fully, promptly the amount of capital that investor has paid not in compliance with the regulations.

3. Responsibilities of the agency controlling the payment, lending capital:

3.1. Checking, comparing and confirming the investment capital loaned and made payments for the projects in compliance with the state regulations, and also sending comments, reviews and recommendations to the agencies of verifying and approving the settlement of the investment process of the project by Form 08/QTDA enclosed with this Circular;

3.2. Urging, guiding investors to conduct the procedures for payment of debts and final settlement of the accounts of the projects that the settlements were approved;

3.3. Conducting final settlement of accounts of the projects that the settlements were approved in accordance with provisions.

4. Responsibilities of the auditing units:

4.1. When the auditing unit, the auditors perform the settlement audit of completed projects, they must abide by the principles of independent auditing activities, having powers, obligations and responsibility under the law provisions on auditing;

4.2. Being responsible before the law, clients and users of audit results of settlement reports that were made by them.

5. The responsibilities of agencies for verification and approval of the settlement:

5.1. Guiding, inspecting, and urging investors to implement the settlement of completed projects timely, with full contents as prescribed form;

5.2. Guiding the investors solve problems arising in the process of settlement of completed projects;

5.3. Organizing the verification of settlement reports of completed projects with full contents, in accordance with requirements; taking responsibility before law for the results of direct verification on the basis of the settlement documents provided by the investor;

5.4. Guiding, urging, and creating legal conditions for investors to complete the settlement of all debts and final settlement of accounts of the project after the approval of the settlement.

6. Responsibilities of the ministries, branches, and localities:

6.1. Guiding, inspecting and urging the investors and the units under their management scope to implement the settlement of completed projects according to regulations;

6.2. Allocating sufficient funds to pay for projects approved settlement;

6.3. Urging and creating legal conditions for investors to complete the settlement of all debts and finally settle accounts of the project after the approval of the settlement;

6.4. When making decision on the investment or assigning the duties as investors, not to assign new investment projects for the investors with three or more projects violating the regulations on the time to make reports of settlement - later than 6 months;

7. Responsibilities of the finance agencies of all levels:

7.1. Ministry of Finance is responsible before the Government for consistent implementation of the state management of investment capital settlement and guiding the settlement of completed projects; examining the investment capital settlement and settlement of completed projects in the whole country;

7.2. Finance agencies at all levels guide, urge, and inspect the settlement of investment capital, settlement of completed projects under its management. If detecting errors in the verification and approval of the settlement, it has the right to request the authority approving settlement to adjust properly; at the same time handle or request for handling violations according to law provisions.

8. When the functional organizations of the State perform the inspections, examination, the audits for the completed projects must be based on the provisions on settlement verification of completed projects in this Circular and other concerned legal documents; be responsible before the law for their conclusions of inspection, examination, and audit.

Article 21.Regime of report, examination

1. The report regime:

1.1. For the project managed by the Central government:

1.1.1. The investors report the settlement situation of completed projects under management every 6 months and annually to the superior agencies of the investors and agencies presiding verification of settlements according to Form No.12/QTDA together with this Circular no later than July 10 for the reports of early 6 months of the year and January 15 of the following year for annual reports.

1.1.2. Agencies presiding verification of settlements that are subordinate level of branch, ministerial level report synthetically the settlement situation of the completed projects under management every 6 months, annually according to Form No.11/QTDA together with this Circular to the managing agencies of branch, ministerial level no later than July 15 for the reports of early 6 months of the year and January 20 of the following year for annual reports.

1.1.3. The ministries, ministerial-level agencies, governmental agencies, groups, state-owned corporations report synthetically the settlement situation of the completed projects under management every 6 months, annually according to Form No.11/QTDA together with this Circular sending to the Ministry of Finance not later than July 20 the reports of early 6 months of the year and January 20 of the following year for annual reports.

1.2. For projects managed by the localities:

1.2.1. The investors, project management units report on the settlement situation of the completed projects under management every 6 months and annually to the superior agencies of the investors and agencies presiding verification of settlements according to Form No.12/QTDA together with this Circular no later than July 10 for the reports of early 6 months of the year and January 15 of the following year for annual reports;

1.2.2. Departments of Finance – Planning of urban, rural districts, cities under provinces and cities report synthetically the settlement situation of the completed projects under management every 6 months, annually according to Form No.11/QTDA together with this Circular to the Departments of Finance no later than July 15 for the reports of early 6 months of the year and January 20 of the following year for annual reports;

1.2.3. Departments of Finance report synthetically the settlement situation of the completed projects under their localities every 6 months, annually according to Form No.11/QTDA together with this Circular to the Ministry of Finance no later than July 20 for the reports of early 6 months of the year and January 30 of the following year for annual reports;

1.3. Every year, the Ministry of Finance synthesizes the situation of settlement of completed projects in the country to report to the Government according to Form No.11/QTDA attached herewith.

2. Examination regime:

2.1. Financial agencies at all levels shall periodically or irregularly inspect the implementation of the settlement of the completed projects of the units under their management; to promptly rectify the errors and handle violations and reward the units performing well;

2.2. Ministry of Finance shall periodically or irregularly inspect the implementation of the settlement of the completed projects of the ministries, branches, and localities throughout the country; promptly rectify the errors and handling of violations and reward the units performing well.

Article 22.Handling of violations

1. Agencies, organizations and individuals committing acts of settlement verification not in compliance with regulations in this Circular wasting investment capital of the State: shall be handled according to Article 29 of Decree No.84/2006/ND- CP dated 18/8/2006 of the Government defining compensation, discipline, administrative sanctions in thrift practice and waste combat.

2. Investors (project management units) committing acts of violations of the settlement regime of completed projects: shall be handled as prescribed in Article 16 of Decree No.23/2009/ND-CP dated 27/02/2009 of the Government on sanctioning administrative violations in construction activities; trading real estate; exploiting, producing and trading construction materials; managing technical infrastructure works; managing and developing housing and offices.

3. The Contractors committing acts of violations of the settlement regime of completed projects: shall be handled according to provisions in Article 21 of Decree No.23/2009/ND-CP dated 27/02/2009 of the Government on sanctioning administrative violations in construction activities, trading real estate; exploiting, producing and trading construction materials; managing technical infrastructure works; managing and developing housing and offices.

4. Competence and procedures to sanction for acts defined in Clause 1 above as stipulated in Decree No.128/2008/ND-CP dated 16/12/2008 of the Government detailing the implementation of some Articles of Ordinance on Handling of Administrative Violations in 2002 and Ordinance amending and supplementing some Articles of the Ordinance on Handling of Administrative Violations in 2008. Competence and procedures for sanctioning the acts specified in Clause 2, Clause 3 above, as stipulated in Decree No.23/2009/ND-CP dated 27/02/2009 of the Government on sanctioning administration violations in construction activities; trading real estate; exploiting, producing and trading construction materials; managing technical infrastructure works; managing and developing housing and offices.

5. Where the violations in Clause 1, 2 and 3 above are beyond the scope of handling administrative violations, they must be handled under current law.

Part III –

IMPLEMENTATION PROVISIONS

Article 23.Effect

This Circular takes effect as from April 01, 2011, replaces Circular No.33/2007/TT-BTC dated 09/4/2007 guiding the settlement of completed projects funded by State capital and Circular No.98/2007/TT-BTC dated 09/8/2007 amending and supplementing a number of points of Circular No.33/2007/TT-BTC dated 09/4/2007 of the Ministry of Finance guiding the settlement of completed projects of the state capital.

Article 24.Organization of implementation:

1. The projects implemented prior to the effective date of Decree No.99/2007/ND-CP dated 13/6/2007 of the Government on management of investment costs for construction of works, if it is not stated clearly the form of contract price in the contract to implement the verification of investment costs as stipulated in section 1.3.2, point 1.3, clause 1, Article 16 of this Circular shall apply the inspection method of investment costs in accordance with provisions in section 2.1.3, point 2.1, clause 2, Item VI of Part II of this Circular No.33/2007/TT-BTC dated 09/4/2007 of the Ministry of Finance guiding the settlement of completed projects funded by the State capital.

2. The ongoing projects of uncompleted settlement shall be handled as follows:

The sub-projects, works, work items having settlement dossier of completed projects filed to the settlement verifying agency before the effective date of this Circular, implement consistently according to the provisions in the Circular No.33/2007/TT-BTC dated 09/4/2007 guiding the settlement of completed projects funded by State capital and Circular No.98/2007/TT-BTC dated 09/8/2007 amending and supplementing a number of points of Circular No.33/2007/TT-BTC dated 09/4/2007 of the Ministry of Finance guiding the settlement of the completed projects under the state capital; the remaining sub-projects, works, work items are implemented consistently in accordance with this Circular.

3. Encourage organizations and individuals to apply this Circular for making settlement report and settlement verification of completed projects for the projects not subject to the scope of this Circular.

In the course of implementation, if any problems arise, the concerned bodies should reflect to the Ministry of Finance for timely settlement./.

GUIDING

THE FORMULATION OF REPORT TABLE OF SETTLEMENT
Together Circular No.19/2011/TT- BTC dated February 14, 2011 of Ministry of Finance defining settlement ofthe completed projects under the state capital.

Form No.01/QTDA:

I /Investment capital source: Reflects projects investment capital source (work, work items) by each capital source, namely:

- Column 1: List all investment capital sources of projects.

- Column 2: Record by the number of investment capital approved in the project investment decision.

- Column 3: Record by the data confirmed by the payment controlling agencies in the form No.08/QTDA.

- Column 4: By value (column 2) minus the amount paid (column 3).

II / The synthesis of investment costs proposed for the settlement:

- Column 3: the corresponding values​​in the decision to approve the estimate or decide to adjust the estimate.

- Column 4: Record the investment cost that investor proposes for settlement (before audit).

- Column 5: Record the value of column 4 - column 3.

III / Investment expenses not included in the value of assets created through investment: Reflects all of the expenditures paid but due to the objective reasons, it is proposed the competent authorities to permit not included in the value of assets created through investment.

IV / value of assets created through investment:

- Column 3: Reflects the total value of assets according to actual expenses.

- Column 4: Reflects the total value of assets by the conversion prices to the time of handing over assets for the production and use (In case of not required to convert, it shall be recorded by the actual value).

Form No.02/QTDA:

Reflects the documents related to the investment policy, investment cost that investors propose for settlement. Column 5: Record the total value approved in the approval documents, such as total investment amount, estimate, total value of the bidding package,...

Form No.03/QTDA:

Reflect the implementation of capital investment over the years as the basis of conversion of investment capital of work settlement.

- Column 3: Record the data by allocation decision of investment capital plans over the years.

- Column 4: Record the data that investor already paid.

Form No.04/QTDA:

Reflect the investment costs that have made the settlement proposal of each work (work item) in the case that the project has from two works (work items) or more.

- From Column 4 to Column 9: The costs directly related to certain work, work items are included in such work, work items. General expenses for the entire project recorded as a separate item in the total.

Form No.05/QTDA:

Reflect all assets created through investment in quantity, original price; detailed by each receiving unit for assets use.

Form No.06/QTDA:

Reflect the entire current assets handed over to production, use when the work, (work item is completed) on the quantity, unit price under the actual cost. If in Item IV, Form No.01/QTDA, it records total current assets equal to zero, shall not be required to make this form.

Form No.07/QTDA:

Reflect the value of performance, payment situation and liabilities of the project; detailed by each individual, unit participating in performance of the project from contract performance to date of closing settlement statements.

Form No.08/QTDA:

Make separately each table of cross-check, confirmation for each investment capital source, for each agency funding, lending, making payment of investment capital of the projects.

Form No.09/QTDA:

This form applies to the planning projects using development investment capital and investment preparation costs canceled by decision of the competent authorities; record similar to form No.01/QTDA above.

Form No.10/QTDA:Decision to approve the settlement of completed projects:

Article 2-Results of investment:

1 - Investment capital source:

- Column 2: Record by the value of the approved settlement in this decision;

- Column 3: Record by the verification results of investment capital source.

- Column 4: Record the amount of capital will be allocated for payment under the approved settlement value, the data is equal the data in column 2 minus column 3.

2 - Cost of investment:

- Column 2: Record the corresponding value in the decision to approve estimate or decision to approve of estimate adjustment.

- Column 3: Record the value of the approved settlement.

4 - Reflect value of assets formed through investment by the approved value; with the detailed table of assets value by the work managed and used or assigned to other units to manage and use together by investor.

Article 3- Responsibilities of the investors and the concerned units

1 - Responsibilities of investors: State the responsibilities of investors to be allowed to settle finally source and make payment of debts by the value of investment capital settlement approved.

2 - The responsibilities of the units receiving assets: state clearly the name of each agency, unit received assets that are responsible for recording increase of capital and assets by value approved and the conversion price to the date of reception of the handover.

3 - Responsibilities of the relevant units: Indicate each relevant unit.

Form No.11/QTDA:

For settlement verifying: synthesize the settlement situation of completed projects within their jurisdiction (excluding the items or works under the project).

- Item B of the points 1, 2, 3 are only recorded the total number of projects of groups A, B, C according to the subordinate units; are not recorded the list of projects.

- Timeline to take into account the report to the date of 30/6 for the six-month reports and to the date of 31/12 for the reports of the year.

- Timeline to take into account for the late of approval of the settlement is the date of receipt of full documents as stipulated plus the period allowed to implement under the provisions of Article 19 of this Circular to the date of 30/6 for the six-month reports and to the date of 31/12 for the reports of the year.

- Timeline to take into account for late to hand in the settlement is the date of handover to put into use plus the period allowed to implement under the provisions of Article 19 of this Circular to the date of 30/6 for the six-month reports and to the date of 31/12 for the reports of the year (if it is required to audit report of settlement, then plus the audit period).

Form No.12/QTDA:

- For investors who report in detail by the list of projects (excluding items or works under the project).

- Timeline for including in the report and to take into account of late-time as guided in Form No.11/QTDA.