Verification team approves settlement of person deciding on construction investment using public investment capital under the Court system in Vietnam

Verification team approves settlement of person deciding on construction investment using public investment capital under the Court system in Vietnam

Pursuant to Article 18 Regulating a number of contents on management of construction investment projects using public investment capital under the People's Court system issued together with Decision 608/QD-TANDTC-KHTC in 2021 of the Chief Justice of the Supreme People's Court stipulating the appraisal team approving the final settlement of the Investment Decider as follows:

1. For non-decentralized projects: Director of the Department of Planning and Finance shall establish an inspection team to approve the settlement of one or more projects according to the instructions in the Regulation on management and use of verification and approval costs. Final settlement of completed projects using state budget capital under the People's Court system.

2. For decentralized projects: The Chief Justice of the Provincial People's Court shall establish an inspection team to approve the final settlement of the project under his management. The composition of the Project Finalization Approval Verification Team includes part-time officials and civil servants of the unit and individuals representing relevant organizations and agencies (in case necessary).

3. The content of verification and approval of project settlement is specifically prescribed in Article 36, Article 37, Decree No. 99/2021/ND-CP dated November 11, 2021 of the Government regulating management and payment. Accounting and settlement of projects using public investment capital.

4. Costs for verification and approval of completed project settlement are implemented according to the provisions of Article 46, Decree No. 99/2021/ND-CP dated November 11, 2021 of the Government regulating management. Management, payment and finalization of projects using public investment capital and Decision No. 180/QD-TANDTC-KHTC dated June 30, 2021 of the Supreme People's Court on promulgating Regulations on management and use expenses for verification and approval of final settlement of completed projects using state budget capital belong to the People's Court system.

What is management of fixed assets formed from capital construction investment capital in the Court system in Vietnam?

According to Article 19 of Regulating a number of contents on management of construction investment projects using public investment capital under the People's Court system issued together with Decision 608/QD-TANDTC-KHTC in 2021, regulations on management of fixed assets formed from capital construction investment capital are as follows:

1. Asset is land: The basis for determining the value of land use rights to calculate the asset value of an agency or unit is the land area and land price, applied according to the provisions of Clauses 1 and 2, Article 101 Decree No. 151/2017/ND-CP dated December 26, 2017 of the Government.

2. Asset is house

a) House level: Determined according to the project level approved in the Decision approving the project investment policy of the Chief Justice of the Supreme People's Court.

b) Year of construction and year of putting into use:

- Construction year: Year the headquarters construction started;

- Year put into use: Year of construction completion, handover and put into use (determined according to the Minutes of acceptance, handover and put into use).

c) House value: Original price according to accounting books applied according to Point b, Clause 1, Article 8 of Circular No. 45/2018/TT-BTC dated May 7, 2018 of the Ministry of Finance.

In case the house has been put into use (due to completion of construction investment) but has not yet had a settlement approved by a competent state agency, the agency or unit shall record the fixed assets in accounting from the date of acceptance record and put into use. The original price recorded in accounting books is the provisional price. The provisionally calculated historical cost in this case is selected in the following order of priority:

+ Value of proposed settlement;

+ Value determined according to AB Acceptance Minutes;

+ Project estimated value has been approved.

When the competent authority approves the final settlement, the unit adjusts the temporarily calculated original price in the accounting books according to the approved final settlement value, and at the same time re-determines the remaining value and depreciation criteria. Accumulation of fixed assets to adjust accounting books and perform accounting according to regulations.

2. For assets that are machinery, equipment and other tangible fixed assets formed from capital construction investment capital as prescribed in Point a, Clause 1, Article 4 of Circular No. 45/2018/ TT-BTC dated May 7, 2018 of the Ministry of Finance.

a) Year of manufacture and year of putting into use

- Year of manufacture: Year of manufacture according to records registered by the manufacturer.

- Year put into use: The year the asset is declared or put into use for the first time (determined according to the Minutes of acceptance, handover of goods or issuance decision).

3. Original price of tangible fixed assets: Determining the original price of fixed assets is determined according to the provisions in Point a, Clause 1, Article 4, applying the provisions in Clauses 1 and 2, Article 7 of Circular No. 45/2018/ TT-BTC dated May 7, 2018 of the Ministry of Finance.

4. For assets that are application software and other intangible fixed assets formed from capital construction investment capital according to the provisions of Point b, Clause 1, Article 4 of Circular No. 45/2018/TT- BTC dated May 7, 2018 of the Ministry of Finance

a) Year of manufacture and year of putting into use

- Year of manufacture: Year of manufacture according to records registered by the manufacturer.

- Year put into use: The year the asset is declared or put into use for the first time (determined according to the Minutes of acceptance, handover of goods or issuance decision).

b) The original cost of assets such as application software and other intangible fixed assets formed from capital construction investment capital is the entire cost included in the project investment capital that the agencies and units have spent to purchase and install those intangible fixed assets.

Best regards!